UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
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(Mark One) |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended March 31, 2005 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number 1-31987
Affordable Residential Communities Inc.
(Exact name of Registrant as specified in its charter)
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MARYLAND |
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84-1477939 |
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(State of incorporation) |
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(I.R.S. employer identification no.) |
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600 Grant Street, Suite 900 |
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80203 |
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Denver, Colorado |
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(Zip code) |
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(Address of principal executive offices) |
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(303) 291-0222 |
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(Registrant’s 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 ý No o
Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes o No ý
The number of shares of the Registrant’s common stock outstanding at May 9, 2005 was 40,955,729 shares.
AFFORDABLE RESIDENTIAL COMMUNITIES INC.
FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 2005
INDEX
1
AFFORDABLE RESIDENTIAL COMMUNITIES INC.
AS OF MARCH 31, 2005 AND DECEMBER 31, 2004
(in thousands, except share and per share data)
(unaudited)
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March 31, |
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December 31, |
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2005 |
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2004 |
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Assets |
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Rental and other property, net |
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$ |
1,555,529 |
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$ |
1,532,780 |
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Assets held for sale |
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7,952 |
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54,123 |
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Cash and cash equivalents |
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47,251 |
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39,802 |
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Tenant notes and other receivables, net |
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19,003 |
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18,799 |
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Inventory |
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4,696 |
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11,230 |
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Loan origination costs, net |
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13,913 |
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14,403 |
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Loan reserves |
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31,756 |
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31,019 |
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Goodwill |
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85,264 |
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85,264 |
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Lease intangibles and customer relationships, net |
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17,432 |
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19,106 |
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Prepaid expenses and other assets |
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8,489 |
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6,476 |
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Total assets |
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$ |
1,791,285 |
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$ |
1,813,002 |
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Liabilities and Stockholders' Equity |
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Notes payable |
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$ |
1,037,433 |
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$ |
1,001,622 |
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Liabilities related to assets held for sale |
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5,290 |
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29,516 |
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Accounts payable and accrued expenses |
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33,145 |
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37,877 |
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Dividends payable |
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15,601 |
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15,505 |
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Tenant deposits and other liabilities |
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14,088 |
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12,776 |
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Total liabilities |
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1,105,557 |
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1,097,296 |
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Minority interest |
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54,918 |
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56,659 |
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Commitments and contingencies |
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Stockholders' equity |
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Preferred stock, no par value, 5,000,000 shares authorized, 5,000,000 shares issued and outstanding at March 31, 2005 and December 31, 2004, respectively; liquidation preference of $25 per share plus accrued but unpaid dividends |
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119,108 |
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119,108 |
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Common stock, $.01 par value, 100,000,000 shares authorized, 40,875,729 and 40,874,061 shares issued and outstanding at March 31, 2005 and December 31, 2004, respectively |
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409 |
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409 |
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Additional paid-in capital |
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790,610 |
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790,528 |
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Unearned compensation |
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(221 |
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(235 |
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Accumulated other comprehensive income |
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1,519 |
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1,208 |
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Retained deficit |
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(280,615 |
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(251,971 |
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Total stockholders' equity |
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630,810 |
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659,047 |
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Total liabilities and stockholders' equity |
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$ |
1,791,285 |
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$ |
1,813,002 |
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The accompanying notes are an integral part of these consolidated financial statements.
2
AFFORDABLE RESIDENTIAL COMMUNITIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004
(in thousands, except per share data)
(unaudited)
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Three
Months Ended |
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2005 |
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2004 |
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Revenue |
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Rental income |
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$ |
50,858 |
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$ |
38,336 |
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Sales of manufactured homes |
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7,990 |
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703 |
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Utility and other income |
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5,646 |
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3,896 |
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Net consumer finance interest income |
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106 |
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— |
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Total revenue |
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64,600 |
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42,935 |
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Expenses |
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Property operations |
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20,194 |
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12,608 |
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Real estate taxes |
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4,291 |
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3,310 |
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