Wren-- just posting the qtr results. Does anyone really give a damn what these idiots do or do not do since the screwing they gave shareholders? Anyone with the time to waste can read,,,
NEEDHAM, Mass., May 9, 2000 /PRNewswire via COMTEX/ -- The Meditrust Companies
("Meditrust" or "the Companies") (NYSE: MT) announced today funds from
operations (FFO), revenues, and net income for the three months ended March 31,
2000.
On a diluted basis, FFO for the three months ended March 31, 2000 was
$47,702,000 or $0.34 per share (based on 141,230,000 shares) compared to
$36,939,000 or $0.25 per share (based on 148,472,000 shares) for the same period
in 1999. The results for the three months ended March 31, 1999, have been
impacted significantly by the non-recurring costs associated with the Companies'
restructuring plan and the sale of assets. Effective January 1, 2000, the
National Association of Real Estate Investment Trusts (NAREIT) adopted a new
definition of FFO. The Companies believe that FFO has been calculated in
accordance with the new definition for all periods presented.
Revenues for the three months ended March 31, 2000 were $214,748,000 versus
$227,304,000 for the same period in 1999. The decrease in revenues is primarily
attributable to the revenue impact of the sale of healthcare assets over the
last twelve months.
For the three months ended March 31, 2000, income from continuing operations was
$10,282,000 compared to $14,875,000 for the same period in 1999. Income from
continuing operations for the three months ended March 31, 2000 includes other
expenses of $12,364,000 compared to $34,887,000 for the same period in 1999.
Other expenses during the three months ended March 31, 2000 principally
consisted of costs related to the Companies' separation agreement with David F.
Benson, former CEO of Meditrust Corporation, and expenses related to the Five
Point Plan of reorganization announced on January 28, 2000. Other expenses
during the three months ended March 31, 1999 principally consisted of costs
related to the Companies' separation agreement with Abraham D. Gosman, former
Chairman of the Meditrust Companies, implementation of the 1998 comprehensive
restructuring plan, costs arising from the early repayment and modification of
certain debt and the write-offs of certain capitalized costs.
Francis W. ("Butch") Cash, recently appointed Chief Executive Officer of
Meditrust, said, "I am looking forward to working with the Boards of Directors
and senior management at Meditrust as we concentrate on selling the healthcare
assets, repaying debt and improving operations of the lodging business."
A summary of the funds from operations follows:
Three Months ended
March 31,
(Unaudited)
(In thousands except per share amounts) 2000 1999
Net income available to common shareholders $7,176 $15,806
Depreciation of real estate &
intangible amortization 38,108 38,273
Other capital (gains) and losses 3,812 (12,271)
Gain on disposal of business segments -- (4,869)
Extraordinary item: Gain on debt repayment (1,394) --
Funds From Operations (FFO) 47,702 36,939
Amortization of debt issuance costs and
other non-cash items 5,231 4,815
Other non-cash expenses 2,745 34,879
Lodging capital maintenance expenditures (3,573) (5,246)
Golf capital maintenance expenditures -- (694)
Other: Cash from discontinued operations -- 2,546
Funds Available for Distribution (FAD) $52,105 $73,239
Diluted Per Share Data (1)
FFO $0.34 $0.25
FAD $0.37 $0.49
(1) Presented using diluted weighted average shares outstanding, which is
also used for EPS
Lodging
Lodging related revenue for the first quarter of 2000 was $147.4 million
compared to $148.5 million for same period of 1999. Recurring EBITDA was $62.9
million compared to $70.9 million. During the first quarter of 2000, La Quinta
experienced a decrease in RevPAR of 5.0 percentage points to $39.33 from $41.42
in the comparable quarter of 1999. The RevPAR decrease was primarily due to a
greater increase in the supply of available rooms in the mid-priced sector of
the lodging industry, compared to demand; as well as, the short-term disruptive
impact of the introduction of a new property management system and the
reorganization of the operations and sales organizations. As a result, recurring
EBITDA margins for the first quarter of 2000 compared to 1999 decreased 5.0
percentage points to 42.7%. Supplementary schedules attached present summary
Occupancy, Average Daily Rate (ADR) and RevPAR data. In addition, Telematrix
Inc., a provider of telephone software and equipment for the lodging industry,
acquired in October 1999, contributed revenue of $3.5 million and EBITDA of $0.7
million to the quarter.
Meditrust's portfolio of hotels operating under the La Quinta name included 232
Inns and 70Inn & Suites hotels open as of March 31, 2000. Healthcare
Healthcare related recurring revenue for the three months ended March 31, 2000
was $63.9 million compared to $77.9 million during the same period in 1999. The
decrease in revenue is primarily the result of over $1 billion of healthcare
asset sales and mortgage repayments made during the last 18 months. Operating
expenses, which include rental property and general and administrative expenses,
for the three months ended March 31, 2000, were $3.3 million compared to $7.2
million during the same period in 1999. The decrease in operating expenses is
primarily the result of the sale of medical office buildings and a related
management company, reductions in state tax expenses arising from a reformation
of certain healthcare subsidiaries and reductions in personnel expenses.
Resulting EBITDA was $60.6 million for the three months ended March 31, 2000
compared to $70.7 million during the same period in 1999.
During the three months ended March 31, 2000, Meditrust sold healthcare
properties and received mortgage repayments totaling $266 million and completed
$2.4 million in development financing for healthcare investments that were
committed to prior to 1999. Of the total development financing, $1.9 million
relates to two assisted living facilities, and $0.5 million relates to one
medical office building. Meditrust had mortgage maturities and principal
repayments during the quarter of approximately $1.9 million.
As of March 31, 2000, Meditrust had financing commitments of approximately $11
million for ongoing healthcare real estate projects. A supplemental schedule is
attached which presents the real estate portfolio as of March 31, 2000.
Bankruptcies within the Healthcare Industry
The operations of long-term care companies have been negatively impacted by a
number of factors, including: changes in Medicare reimbursement rates, increases
in labor costs, and increases in their debt leverage. Several long- term care
companies have filed for protection under Chapter 11 of the US Bankruptcy Code
("Chapter 11"). Currently, Meditrust has exposure to three of the operators who
have filed for protection under Chapter 11.
On October 14, 1999 Sun Healthcare Group ("Sun") filed for protection under
Chapter 11. As of March 31, 2000, Meditrust had a portfolio of 42 properties
operated by Sun, which consisted of 38 owned properties representing net assets
of approximately $305,462,000 and four mortgages representing net assets of
approximately $30,470,000. During the three months ended March 31, 2000, income
derived from these properties included rental income of $11,915,000 from owned
properties. No interest payments related to the Sun mortgages have been received
since October 14, 1999 and accordingly these mortgages were placed on
non-accrual status in the fourth quarter of 1999.
On January 18, 2000, Mariner Health Group, Inc. ("Mariner") filed for protection
under Chapter 11. As of March 31, 2000, Meditrust had a portfolio of 2
properties operated by Mariner, which consisted of one owned property
representing net assets of approximately $7,176,000 and one mortgage
representing a net asset value of approximately $7,036,000. During the three
months ended March 31, 2000, income derived from these properties included
rental income of $244,000 from owned properties. No interest payments related to
the Mariner mortgage were received, and accordingly this mortgage was placed on
non-accrual status.
On February 2, 2000, Integrated Health Services, Inc. ("Integrated") filed for
protection under Chapter 11. As of March 31, 2000, Meditrust had a portfolio of
10 owned properties operated by Integrated, representing net assets of
approximately $38,023,000. During the three months ended March 31, 2000, rental
income derived from these properties was $1,572,000.
Debt Repayment and Capital Resources
During the three months ended March 31, 2000, the Companies retired $45 million
of its debt prior to maturity date, and as part of sale transactions repaid
secured debt totaling $15 million. As a result of these early repayments of
debt, a net gain of $1.4 million was realized and is reflected as an
extraordinary item. The Companies expect to repay the remaining $175 million of
debt maturing in the year 2000 using a combination of its available line of
credit and the proceeds from the sale of assets. Meditrust has approximately
$311 million available on its revolving credit line as of April 28, 2000.
Dividend
As part of the Five Point Plan, Meditrust Corporation suspended the payment of
its common share dividend. Meditrust Corporation expects that its board of
directors will declare the minimum dividend required, if any, to maintain its
REIT status in December 2000, which will equal at least 95% of its ordinary
taxable income for the year ended December 31, 2000. The timing and amount of
the sales of the healthcare assets as well as the operating results of both the
healthcare and lodging divisions, during the year 2000, will impact any minimum
dividend required to maintain Meditrust Corporation's REIT status. The dividend
for the 9% Series A preferred stock was paid on March 31, 2000.
Asset Sales
During the year 2000, the Companies have completed $314 million of asset sales
and mortgage repayments. On February 2, 2000, the Companies announced the
completion of asset sales totaling $236 million. Total consideration included
$176 million in cash, repayment of $8 million of assumed debt and $52 million of
subordinated indebtedness due January 2005 bearing interest at 9%. The
transactions involved the sale of the Companies' medical office building
management company, 23 medical office buildings, three medical office building
mortgage loans, 12 assisted living facilities, and the partial repayment of one
mortgage loan. On March 3, 2000, the Companies were repaid $8 million from a
mortgage related to a long-term care facility. On March 13, 2000, the Companies
completed a $22 million sale of four long-term care facilities. On April 7,
2000, the Companies received $48 million in mortgage repayments relating to two
medical office buildings. In 1998 and 1999, the Companies recorded a loss
provision for "assets held for sale", related to the above described
transactions, of approximately $72 million. The cash proceeds from the sale of
assets were used to repay a portion of the Companies' revolving credit facility.
Meditrust noted that quarterly financial results for the period ended March 31,
2000 can be found in the Companies' Joint Quarterly Report on Form 10-Q that was
filed with the Securities and Exchange Commission today. The Company will not
hold a conference call to discuss the first quarter results.
The Companies also announced today that the record date for the Annual Meetings
of Shareholders has been set at the close of business on June 8, 2000. The
Annual Meetings will be held in Dallas, Texas on July 20, 2000. The Companies'
Annual Report to Shareholders will be sent with proxy materials for the Annual
Meeting shortly after the June 8, 2000 record for the Annual Meeting.
The Meditrust Companies, currently headquartered in Needham, Massachusetts,
consists of Meditrust Corporation, a REIT, and Meditrust Operating Company. The
Companies are in the process of moving their headquarters to Dallas, Texas.
Today's news release, the Companies' Joint Quarterly report on Form 10-Q for the
period ended March 31, 2000, as well as other news about The Meditrust
Companies, are available on the Internet at reit.com.
Certain matters discussed within this press release may constitute
"forward-looking statements" within the meaning of the federal securities laws.
Although The Meditrust Companies believe the statements are based on reasonable
assumptions, it can give no assurance that its expectations will be attained.
Actual results and the timing of certain events could differ materially from
those projected in or contemplated by the forward-looking statements due to a
number of factors, including, without limitation, general economic and real
estate conditions, the conditions of the capital markets in general, the
identification of satisfactory prospective buyers for healthcare related assets
and the availability of financing for such prospective buyers, the availability
of financing for the Companies' capital investment program, interest rates, the
financial condition of the operators of Meditrust Corporation's healthcare
assets, including the filing for protection under the US Bankruptcy Code by any
additional operators of the Companies' healthcare assets, the impact of the
protection offered under the US Bankruptcy Code for those operators who have
already filed for such protection, competition for hotel services and healthcare
facilities in a given market, the enactment of legislation further impacting the
Companies' status as a paired share REIT or Meditrust Corporation's status as a
REIT, the implementation of regulations impacting Meditrust Corporation's
healthcare business, including regulations governing payments to operators of
healthcare facilities, and other risks detailed from time to time in the filings
of Meditrust Corporation and Meditrust Operating Company with the Securities and
Exchange Commission, including the Joint Annual Report on Form 10-K for the year
ended December 31, 1999 and other periodic filings under the Securities Exchange
Act of 1934, as amended.
The Meditrust Companies
Earnings Release
Supplementary information
Table of contents
Meditrust Companies Financial Results A-B
Real estate portfolio summary information C
Other supplementary information D
La Quinta summary statistics E
Meditrust Companies Financial Results
Supplementary Schedule A
(Unaudited)
Three months ended
March 31,
Operating Data (Unaudited)
(In thousands except per share amounts) 2000 1999
Revenues
Healthcare $63,885 $78,770
Lodging (1) 150,863 148,534
Total revenues 214,748 227,304
Expenses
Lodging operating expenses (1) 72,792 66,602
Rental operating expenses 7,643 8,907
General and administrative (1) 10,181 9,306
Interest 55,236 66,657
Depreciation and amortization 42,438 39,167
(Gain) loss on asset and securities sales 3,812 (12,271)
Other 12,364 34,887
Total expenses 204,466 213,255
Income tax benefit -- 826
Income from continuing operations 10,282 14,875
Gain on disposal of business segments -- 4,869
Income before extraordinary item 10,282 19,744
Extraordinary item - Gain on debt repayment 1,394 --
Net income 11,676 19,744
Less Preferred Share dividends (4,500) (3,938)
Net income available to common shareholders $7,176 $15,806
Earnings Per Share:
Net income available to common (Basic) $0.05 $0.11
Net income available to common (Diluted) $0.05 $0.11
Basic weighted average shares outstanding 141,230 147,983
Diluted weighted average shares outstanding 141,230 148,472
Balance Sheet Data March 31,
(In thousands) 2000 1999
Gross real estate investments $4,740,718 $5,280,995
Total assets 5,202,898 5,823,095
Indebtedness 2,413,948 2,694,742
Total liabilities 2,554,066 2,932,267
Total shareholders equity 2,648,832 2,890,828
(1) The Lodging results for the three-month period ended March 31, 2000
include the operations of Telematrix, Inc., acquired in October
1999,as follows:
Revenue $ 3,535
Operating Expense (1,970)
General and Administrative Expense (892)
EBITDA $ 673
Meditrust Companies Financial Results
Supplementary Schedule B
(Unaudited)
Funds From Operations & Three months ended
Funds Available for Distribution: March 31,
(Unaudited)
(In thousands except per share amounts) 2000 1999
Net income available to common shareholders $7,176 $15,806
Depreciation of real estate &
intangible amortization 38,108 38,273
Other capital (gains) and losses 3,812 (12,271)
Gain on disposal of business segments (4,869)
Extraordinary item: Gain on debt repayment (1,394) --
Funds From Operations (FFO) 47,702 36,939
Amortization of debt issuance costs and
other non-cash items 5,231 4,815
Other non-cash expenses 2,745 34,879
Lodging capital maintenance expenditures (3,573) (5,246)
Golf capital maintenance expenditures (694)
Other: Cash from discontinued operations 2,546
Funds Available for Distribution (FAD) $52,105 $73,239
Diluted Per Share Data (1)
FFO $0.34 $0.25
FAD $0.37 $0.49
(1) Presented using diluted weighted average shares outstanding, which is
also used for EPS
Meditrust Companies Earnings Release
Supplementary Schedule C
Real Estate Portfolio Summary
(Unaudited)
March 31, 2000
Invested % of # of
Portfolio by Operator (in thousands) Portfolio Properties
Healthcare:
Life Care Centers of
America, Inc.$566,689 11.9% 93
Sun Healthcare Group, Inc. (A) 415,511 8.7% 42
Alterra Healthcare (A) 161,592 3.4%57
CareMatrix Corporation (A) 182,624 3.8% 11
Harborside 103,462 2.2% 18
Balanced Care Corporation (A) 92,589 2.0% 19
Health Asset Realty Trust 69,115 1.5% 11
Tenet Healthcare/Iasis (A) 65,650 1.4% 1
Rendina Companies 55,778 1.2% 2
Integrated Health
Services, Inc. (A) 50,973 1.1% 10
Genesis Health
Ventures, Inc. (A) 35,771 0.8% 8
Assisted Living Concepts (A) 31,487 0.7% 16
ARV Assisted Living, Inc. (A) 28,982 0.6% 4
HealthSouth (A) 25,531 0.5% 2
Other Public Operators (A) 29,711 0.6% 4
Other Non-Public Operators 121,336 2.6% 13
Paramount Real Estate Services 53,845 1.1% 2
2,090,646 44.1% 313
Lodging:
La Quinta Companies 2,650,072 55.9% 302
Gross Real Estate Assets $4,740,718 100% 615
(A) Denotes publicly held companies
totaling 54% of the healthcare portfolio.
Portfolio by Investment Type
Owned properties $3,658,611 77.2% 466
Mortgage 1,069,064 22.5% 147
Development 13,043 0.3% 2
$4,740,718 100% 615
Portfolio by Facility Type
Lodging $2,650,072 55.9% 302
Long-Term Care 1,391,040 29.3% 193
Retirement and Assisted Living 436,411 9.2% 105
Medical Office Buildings 143,972 3.0% 8
Acute-Care Hospital Campus 65,650 1.4% 1
Other healthcare 37,617 0.8% 6
Land held for development 12,213 0.3% --
Other 3,743 0.1% --
$4,740,718 100% 615
Meditrust Companies Earnings Release
Supplementary Schedule D
(Unaudited)
March 31, 2000
Lease expirations and mortgage maturities % of
Healthcare
Year Portfolio
2000 0.6%
2001 5.8%
2002 0.2%
2003 4.7%
2004 3.1%
Thereafter 85.6%
Fixed charge coverage of Healthcare
portfolio before management fees
(Year ended December 31, 1999) 1.5
Financial information:
(amounts in 000's) 31-Mar-00 31-Mar-99
Senior debt $ 2,413,948 $2,694,742
Equity 2,648,832 2,890,828
Shares outstanding 141,249 148,072
Total capitalization 5,062,780 5,585,570
Debt to total capitalization 48% 48%
The Meditrust Companies
Supplementary Schedule E
March 31, 2000
La Quinta -- Total Company
Summary occupancy percentage, Average Daily Rate (ADR) and RevPAR data are as
follows:
Quarter Ended March 31
2000 1999 Change
Occupancy Percentage 61.1% 67.1% -6.0 pts
Average Daily Rate $64.33 $61.73 +4.2%
RevPAR $39.33 $41.42 -5.0%
La Quinta -- Inns
Summary occupancy percentage, Average Daily Rate (ADR) and RevPAR data are as
follows:
Quarter Ended March 31
2000 1999 Change
Occupancy Percentage 60.0% 66.5% -6.5 pts
Average Daily Rate $59.75 $58.70 +1.8%
RevPAR $35.85 $39.06 -8.2%
La Quinta -- Inn & Suites
Summary occupancy percentage, Average Daily Rate (ADR) and RevPAR data are as
follows:
Quarter Ended March 31
2000 1999 Change
Occupancy Percentage 64.8% 69.4% -4.6 pts
Average Daily Rate $78.12 $73.23 +6.7%
RevPAR $50.63 $50.78 -.3%
La Quinta -- Inn & Suites -Comparable Hotels
Summary occupancy percentage, Average Daily Rate (ADR) and RevPAR data are as
follows:
Quarter Ended March 31
2000 1999 Change
Occupancy Percentage 65.1% 69.8% -4.7pts
Average Daily Rate $77.07 $74.05 +4.1%
RevPAR $50.20 $51.69 -2.9%
The Meditrust Companies
Supplementary Schedule E, Continued
March 31, 2000
La Quinta -- Hotel and Room Count Statistics
Summary of the number of open hotels and rooms are as follows:
Number of Hotels Number of Rooms
March 2000 March 1999 March 2000 March 1999
Inns 232 232 29,832 29,958
Inn & Suites 70 61 9,197 7,981
Total 302 293 39,029 37,939
SOURCE Meditrust Companies
(C) 2000 PR Newswire. All rights reserved.
prnewswire.com
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CONTACT: Karen Manna of Meditrust, 781-433-6000; or Josh Silverman of
Joele Frank Associates, 212-355-4449, for Meditrust
(MT) |
