Back to GetFilings.com



 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________

FORM 10-Q
(Mark One)
X     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2004
or

___ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission file number 1-11316

OMEGA HEALTHCARE
INVESTORS, INC.
(Exact name of Registrant as specified in its charter)

                Maryland                            38-3041398
                (State of Incorporation)                (I.R.S. Employer Identification No.)

9690 Deereco Road, Suite 100, Timonium, MD 21093
(Address of principal executive offices)

(410) 427-1700
(Telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes X                 No ___

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes X                 No ___

Indicate the number of shares outstanding of each of the issuer's classes of common stock as of October 29, 2004.

Common Stock, $.10 par value               46,787,174
(Class)                               (Number of shares)


                
OMEGA HEALTHCARE INVESTORS, INC.
FORM 10-Q
September 30, 2004
 
TABLE OF CONTENTS
   
Page No.
PART I
Financial Information
  
     
Item 1.
Financial Statements:
  
 
Consolidated Balance Sheets
  
 
September 30, 2004 (unaudited) and December 31, 2003
2
     
 
Consolidated Statements of Operations (unaudited)
  
 
Three and nine months ended September 30, 2004 and 2003
3
     
 
Consolidated Statements of Cash Flows (unaudited)
  
 
Nine months ended September 30, 2004 and 2003
4
     
 
Notes to Consolidated Financial Statements
  
 
September 30, 2004 (unaudited)
5
     
Item 2.
Management’s Discussion and Analysis of Financial Condition
  
 
and Results of Operations
18
     
Item 3.
Quantitative and Qualitative Disclosures About Market Risk   
36
     
Item 4.
Controls and Procedures   
37
     
PART II
Other Information
  
     
Item 1.
Legal Proceedings   
38
     
Item 6.
Exhibits    
38
     
 
 
 


     


PART 1 - FINANCIAL INFORMATION

Item 1.    Financial Statements
OMEGA HEALTHCARE INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
   
September 30,
  
December 31,
  
   
2004
  
2003
  
   
(Unaudited)
  
(See note)
  
ASSETS
          
Real estate properties
          
Land and buildings at cost
  
$
729,660
  
$
692,454
  
Less accumulated depreciation
    
(149,885
)
  
(134,477
)
Real estate properties - net
    
579,775
    
557,977
  
Mortgage notes receivable - net
    
113,687
    
119,815
  
     
693,462
    
677,792
  
Other investments - net
    
34,399
    
29,787
  
Total investments
    
727,861
    
707,579
  
               
Cash and cash equivalents
    
3,303
    
3,094
  
Accounts receivable - net
    
4,220
    
1,893
  
Interest rate cap
    
—
    
5,537
  
Other assets
    
10,961
    
8,562
  
Operating assets for owned properties
    
337
    
2,289
  
Total assets
  
$
746,682
  
$
728,954
  
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
              
Revolving lines of credit   
 
$
37,000
  
$
177,074
  
Unsecured borrowings   
   
300,000
    
100,000
  
Other long-term borrowings   
   
3,170
    
3,520
  
Accrued expenses and other liabilities   
   
21,993
    
8,194
  
Operating liabilities for owned properties   
   
87
    
3,931
  
Total liabilities   
   
362,250
    
292,719
  
               
Stockholders’ equity:
              
Preferred stock   
   
168,488
    
212,342
  
Common stock and additional paid-in-capital   
   
551,732
    
485,196
  
Cumulative net earnings   
   
178,556
    
174,275
  
Cumulative dividends paid   
   
(467,782
)
  
(431,123
)
Cumulative dividends - redemption   
   
(41,054
)
  
—
  
Unamortized restricted stock awards   
   
(3,068
)
  
—
  
Accumulated other comprehensive loss   
   
(2,440
)
  
(4,455
)
Total stockholders’ equity   
   
384,432
    
436,235
  
Total liabilities and stockholders’ equity   
 
$
746,682
  
$
728,954
  

Note - The balance sheet at December 31, 2003 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
See notes to consolidated financial statements.

 
     



 
 
     
 

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,
  
   
2004
  
2003
  
2004
  
2003
  
Revenues
                  
Rental income
  
$
18,572
  
$
16,268
  
$
53,864
  
$
48,585
  
Mortgage interest income
    
3,224
    
3,465
    
9,926
    
11,346
  
Other investment income - net
    
609
    
660
    
1,798
    
2,406
  
Miscellaneous
    
202
    
242
    
623
    
810
  
Nursing home revenues of owned and operated assets
    
-
    
1,077
    
-
    
3,456
  
Total operating revenues
    
22,607
    
21,712
    
66,211
    
66,603
  
Expenses
                          
Depreciation and amortization
    
5,394
    
5,261
    
16,002
    
15,745
  
General and administrative
    
1,644
    
1,646
    
4,558
    
4,897
  
Restricted stock expense
    
279
    
-
    
279
    
-
  
Legal
   
303
    
538
    
1,175
    
1,880
  
Nursing home expenses of owned and operated assets
    
-
    
1,036
    
-
    
4,545
  
Total operating expenses
    
7,620
    
8,481
    
22,014
    
27,067
  
                           
Income before other income and expense
    
14,987
    
13,231
    
44,197
    
39,536
  
Other income (expense):
                          
Interest and other investment income
    
7
    
37
    
103
    
180
  
Interest
    
(5,873
)
  
(4,933
)
  
(16,319
)
  
(13,668
)
Interest - amortization of deferred financing costs
    
(479
)
  
(536
)
  
(1,359
)
  
(1,710
)
Interest - refinancing costs
    
-
    
-
    
(19,106
)
  
(2,586
)
Owned and operated professional liability claims
    
-
    
-
    
(3,000
)
  
-
  
Litigation settlements
    
-
    
-
    
-
    
2,187
  
Provision for impairment
    
-
    
(4,277
)
  
-
    
(8,894
)
Adjustment of derivative to fair value
    
-
    
-
    
256
    
-
  
Total other (expense) income
    
(6,345
)
  
(9,709
)
  
(39,425
)
  
(24,491
)
                           
Income before gain on assets sold
    
8,642
    
3,522
    
4,772
    
15,045
  
Gain from assets sold - net
   
-
    
92
    
-
    
1,430
  
Income from continuing operations
    
8,642
    
3,614
    
4,772
    
16,475
  
Gain (loss) from discontinued operations
    
-
    
1,419
    
(491
)
  
1,372