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Omega Announces Third Quarter 2013 Financial Results; Adjusted FFO Of $0.63 Per Share For The Third Quarter

Stocks in this article: OHI

This announcement includes forward-looking statements, including without limitation the information under the heading “2013 Adjusted FFO and Adjusted FAD Guidance Confirmed.” Actual results may differ materially from those reflected in such forward-looking statements as a result of a variety of factors, including, among other things: (i) uncertainties relating to the business operations of the operators of the Company’s properties, including those relating to reimbursement by third-party payors, regulatory matters and occupancy levels; (ii) regulatory and other changes in the healthcare sector; (iii) changes in the financial position of the Company’s operators; (iv) the ability of any of the Company’s operators in bankruptcy to reject unexpired lease obligations, modify the terms of the Company’s mortgages and impede the ability of the Company to collect unpaid rent or interest during the pendency of a bankruptcy proceeding and retain security deposits for the debtor's obligations; (v) the availability and cost of capital; (vi) changes in the Company’s credit ratings and the ratings of its debt securities; (vii) competition in the financing of healthcare facilities; (viii) the Company’s ability to maintain its status as a real estate investment trust; (ix) the Company’s ability to manage, re-lease or sell any owned and operated facilities; (x) the Company’s ability to sell closed or foreclosed assets on a timely basis and on terms that allow the Company to realize the carrying value of these assets; (xi) the effect of economic and market conditions generally, and particularly in the healthcare industry; and (xii) other factors identified in the Company’s filings with the Securities and Exchange Commission. Statements regarding future events and developments and the Company’s future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements. The Company undertakes no obligation to update any forward-looking statements contained in this announcement.

 
OMEGA HEALTHCARE INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
       
September 30, December 31,
2013     2012
(Unaudited)
ASSETS
Real estate properties
Land and buildings $ 3,060,188 $ 3,038,553
Less accumulated depreciation   (675,685 )       (580,373 )
Real estate properties – net 2,384,503 2,458,180
Mortgage notes receivable – net   241,490         238,621  
2,625,993 2,696,801
Other investments – net   75,421         47,339  
2,701,414 2,744,140
Assets held for sale – net   1,020         1,020  
Total investments 2,702,434 2,745,160
 
Cash and cash equivalents 67,757 1,711
Restricted cash 28,781 36,660
Accounts receivable – net 142,426 125,180
Other assets   73,380         73,294  
Total assets $ 3,014,778       $ 2,982,005  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Revolving line of credit $ $ 158,000
Term loan 200,000 100,000
Secured borrowings 300,034 366,538
Unsecured borrowings – net 1,200,013 1,200,394
Accrued expenses and other liabilities   124,733         145,744  
Total liabilities   1,824,780         1,970,676  
 
Stockholders’ equity:
Common stock $.10 par value authorized – 200,000 shares issued and outstanding 119,518 shares as of September 30, 2013 and 112,393 as of December 31, 2012

 

11,952

 

11,239

Common stock – additional paid-in capital 1,876,609 1,664,855
Cumulative net earnings 879,443 754,128
Cumulative dividends paid   (1,578,006 )       (1,418,893 )
Total stockholders’ equity   1,189,998         1,011,329  
Total liabilities and stockholders’ equity $ 3,014,778       $ 2,982,005  
 
 
OMEGA HEALTHCARE INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(in thousands, except per share amounts)
       
Three Months Ended Nine Months Ended
September 30, September 30,
2013     2012     2013     2012
Revenue        
Rental income $ 93,837 $ 78,170 $ 280,015 $ 229,373
Mortgage interest income 7,289 7,677 22,070 22,417
Other investment income – net 2,175 1,238 5,341 3,533
Miscellaneous   -     23     151     125  
Total operating revenues 103,301 87,108 307,577 255,448
 
Expenses
Depreciation and amortization 32,202 28,305 96,386 82,651
General and administrative 3,953 3,688 11,709 11,197
Stock-based compensation expense 1,509 1,485 4,433 4,456
Acquisition costs (9 ) 483 134 686
Impairment loss on real estate properties - - - 272
Provisions for uncollectible mortgages, notes and accounts receivable   2,321     -    

2,386

   

-

 
Total operating expenses 39,976 33,961 115,048 99,262
 
Income before other income and expense 63,325 53,147 192,529 156,186
Other income (expense)
Interest income 3 6 20 22
Interest expense (24,492 ) (24,050 ) (75,116 ) (71,026 )
Interest – amortization of deferred financing costs (699 ) (673 ) (2,079 ) (1,970 )
Interest – refinancing gain (costs)   -     -     11,112     (5,410 )
Total other expense (25,188 ) (24,717 ) (66,063 ) (78,384 )
 
Income before gain (loss) on assets sold 38,137 28,430 126,466 77,802
Gain (loss) on assets sold – net   -     1,689     (1,151 )   8,973  
Net income available to common stockholders $ 38,137   $ 30,119   $ 125,315   $ 86,775  
 
Income per common share available to common shareholders:
Basic:
Net income $ 0.32   $ 0.28   $ 1.08   $ 0.82  
Diluted:
Net income $ 0.32   $ 0.27   $ 1.08   $ 0.81  
 
Dividends declared and paid per common share $ 0.47   $ 0.42   $ 1.38   $ 1.25  
 
Weighted-average shares outstanding, basic   117,600     109,135     115,527     106,202  
Weighted-average shares outstanding, diluted   118,462     109,667     116,335     106,570  
 
 
OMEGA HEALTHCARE INVESTORS, INC.
FUNDS FROM OPERATIONS
Unaudited
(in thousands, except per share amounts)
       
Three Months Ended Nine Months Ended
September 30, September 30,
2013     2012 2013     2012
       
Net income available to common stockholders $ 38,137 $ 30,119 $ 125,315 $ 86,775
(Deduct gain)/add back loss from real estate dispositions       (1,689 )   1,151     (8,973 )
Sub – total 38,137 28,430 126,466 77,802
Elimination of non-cash items included in net income:
Depreciation and amortization 32,202 28,305 96,386 82,651
Add back non-cash provision for impairments on real estate properties          

   

272

 
Funds from operations available to common stockholders $ 70,339   $ 56,735   $ 222,852   $ 160,725  
 
Weighted-average common shares outstanding, basic 117,600 109,135 115,527 106,202
Restricted stock and PRSUs 823 511 774 350
Deferred stock   39     21     34     18  
Weighted-average common shares outstanding, diluted   118,462     109,667     116,335     106,570  
 
Funds from operations per share available to common stockholders $ 0.59   $ 0.52  

$

1.92

 

$

1.51

 
 
Adjusted funds from operations:
Funds from operations available to common stockholders $ 70,339 $ 56,735 $ 222,852 $ 160,725
Add back non-cash provision for uncollectible accounts receivable 2,321

2,386

(Deduct)/add back interest refinancing expense (11,112 ) 5,410
(Deduct)/add back acquisition costs (9 ) 483 134 686
Add back non-cash stock-based compensation expense   1,509     1,485     4,433     4,456  
Adjusted funds from operations available to common stockholders $ 74,160   $ 58,703  

$

218,693

 

$

171,277

 
 

This press release includes Funds From Operations, or FFO, which is a non-GAAP financial measure. For purposes of the Securities and Exchange Commission’s Regulation G, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable financial measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows (or equivalent statements) of the company, or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable financial measure so calculated and presented. As used in this press release, GAAP refers to generally accepted accounting principles in the United States of America. Pursuant to the requirements of Regulation G, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

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