Attached files
| file | filename |
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| EX-99.1 - SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED DECEMBER 31, 2012 - THOMAS PROPERTIES GROUP INC | exhibit991-supp12312012.htm |
| 8-K - 8-K - THOMAS PROPERTIES GROUP INC | a2012q4earningsreleasecove.htm |
Exhibit 99.2
THOMAS PROPERTIES GROUP, INC. ANNOUNCES
FOURTH QUARTER 2012 RESULTS
Thomas Properties Group, Inc. (Nasdaq: TPGI) reported today the results of operations for the quarter and year ended December 31, 2012.
The results of operations presented in this release include TPGI’s results of operations for the three and twelve months ended December 31, 2012 and 2011. The consolidated net loss for the three months ended December 31, 2012 was $13.4 million or $0.29 per share compared to consolidated net income of $10.1 million or $0.27 per share for the three months ended December 31, 2011. The consolidated net loss for the twelve months ended December 31, 2012 was $25.4 million or $0.61 per share compared to consolidated net income of $5.9 million or $0.16 per share for twelve months ended December 31, 2011. The increase in the consolidated net loss during the twelve months ended December 31, 2012 compared to the twelve months ended December 31, 2011 is due to a $6.1 million decrease in investment advisory fees primarily related to one-time incentive fees earned in 2011, $4.6 million of increased impairment charges at our development properties, $23.7 million decrease in income from unconsolidated real estate entities primarily due to our share of gain on disposition of certain joint venture assets in 2011, and a $1.3 million gain from sale of a land parcel for the year ended December 31, 2011 with no comparable gain from sale in 2012.
TPGI's share of after tax cash flow (“ATCF”) for the three months ended December 31, 2012 was $4.1 million or $0.09 per share compared to ATCF of $17.9 million or $0.49 per share for the three months ended December 31, 2011. TPGI's share of after tax cash flow for the twelve months ended December 31, 2012 was $7.4 million or $0.18 per share compared to after tax cash flow of $27.2 million or $0.74 per share for the twelve months ended December 31, 2011. The decrease in ATCF per share for the twelve months ended December 31, 2012 compared to the twelve months ended December 31, 2011 was primarily the result of the overall reduction in consolidated net income described above for the twelve months ended December 31, 2012 compared to the same period in the prior year, and the increased number of shares of our common stock outstanding resulting from the issuance of common stock in 2012. The Company defines ATCF (a non-GAAP financial measure) as net income (loss) excluding the following items: noncontrolling interests, deferred income tax expense (benefit), non-cash charges for depreciation and amortization and asset impairment, amortization of loan costs, non-cash compensation expense, adjustments to recognize rental revenues using the straight-line method, adjustments to rental revenue to reflect the fair market value of rents, and gain from extinguishment of debt. ATCF is further described in note (a) and reconciled to net income (loss) in the financial statements below.
“During 2012, we made real progress toward the achievement of our strategic plan,” said Jim Thomas, Chairman and CEO. “We have continued to dispose of non-core operating assets and non income-producing investments and to pay down debt where practicable. We have recapitalized and increased our ownership interest in our Austin properties, and we have increased the occupancy of our present portfolio to 88%. We are continuing our focused strategy of maximizing our recurring cash flow and expanding our asset base.”
Supplemental Materials
The Company publishes a Supplemental Financial Information package which is available at www.tpgre.com in the Investor Relations tab, Supplemental Financial Information section. The Company also provides an estimated net asset value workbook, available for download at www.tpgre.com in the Investor Relations tab, NAV Workbook section.
Teleconference and Webcast
TPGI will hold a quarterly earnings conference call on Thursday, February 14, 2013 at 10:00 a.m. Pacific Time. To participate in the call, dial (866) 713-8564 and (617) 597-5312 internationally, and provide confirmation code 43009130.
A live webcast (listen only mode) of the conference call will also be available at that time. A hyperlink to the live webcast will be available from the Investor Relations section of our website at www.tpgre.com. A replay of the call will be available through March 7, 2013, by calling (888) 286-8010 and (617) 801-6888 internationally, and providing confirmation code 72959301. The replay will also be available on Thomas Properties Group, Inc.’s web site at www.tpgre.com. The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson’s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site.
About Thomas Properties Group, Inc.
Thomas Properties Group, Inc., with headquarters in Los Angeles, is a full-service real estate company that owns, acquires, develops and manages primarily office, as well as mixed-use properties on a nationwide basis. The Company’s primary areas of focus are the acquisition and ownership of interests in premier office properties, property development and redevelopment, and property and investment management activities. For more information on Thomas Properties Group, Inc., visit www.tpgre.com.
Forward Looking Statements
Statements made in this press release or during the quarterly earnings conference call that are not historical may contain forward-looking statements. Although TPGI believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties. Factors that could cause actual results to differ materially from TPGI’s expectations include actual and perceived trends in various national and economic conditions that affect global and regional markets for commercial real estate services (including interest rates), the availability of debt and equity investors to finance commercial real estate transactions, our ability to enter into or renew leases at favorable rates, which can be impacted by the financial condition of our tenants, risks associated with the success of our development and property redevelopment projects, general volatility in the securities and credit markets, and the impact of tax laws affecting real estate. For a discussion of some of the factors that may cause our results to differ from management’s expectations, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Form 10-K for the year ended December 31, 2011 and our subsequent Form 10-Q quarterly reports, each of which is filed with the Securities and Exchange Commission. TPGI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
THOMAS PROPERTIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(unaudited)
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenues: | ||||||||||||||||
Rental | $ | 7,626 | $ | 7,460 | $ | 30,969 | $ | 29,693 | ||||||||
Tenant reimbursements | 5,195 | 5,386 | 20,941 | 22,437 | ||||||||||||
Parking and other | 741 | 734 | 3,012 | 2,959 | ||||||||||||
Investment advisory, management, leasing and development services | 1,914 | 831 | 4,583 | 8,520 | ||||||||||||
Investment advisory, management, leasing and development services - unconsolidated real estate entities | 3,779 | 4,172 | 15,688 | 17,862 | ||||||||||||
Reimbursement of property personnel costs | 1,043 | 1,421 | 5,183 | 5,810 | ||||||||||||
Condominium sales | 5,974 | 1,578 | 10,240 | 7,700 | ||||||||||||
Total revenues | 26,272 | 21,582 | 90,616 | 94,981 | ||||||||||||
Expenses: | ||||||||||||||||
Property operating and maintenance | 6,126 | 6,205 | 24,324 | 24,589 | ||||||||||||
Real estate and other taxes | 1,909 | 1,853 | 7,536 | 7,469 | ||||||||||||
Investment advisory, management, leasing and development services | 3,833 | 2,842 | 12,461 | 12,754 | ||||||||||||
Reimbursable property personnel costs | 1,043 | 1,421 | 5,183 | 5,810 | ||||||||||||
Cost of condominium sales | 4,878 | 1,049 | 8,129 | 5,091 | ||||||||||||
Interest | 4,188 | 4,309 | 16,847 | 17,938 | ||||||||||||
Depreciation and amortization | 3,919 | 3,434 | 15,701 | 13,622 | ||||||||||||
General and administrative | 4,725 | 3,632 | 17,749 | 15,434 | ||||||||||||
Impairment loss | 12,745 | 8,095 | 12,745 | 8,095 | ||||||||||||
Total expenses | 43,366 | 32,840 | 120,675 | 110,802 | ||||||||||||
Interest income | 22 | 10 | 74 | 35 | ||||||||||||
Equity in net income (loss) of unconsolidated real estate entities | (1,059 | ) | 21,889 | (3,672 | ) | 19,951 | ||||||||||
Gain (loss) on sale of real estate | — | 1,258 | — | 1,258 | ||||||||||||
Income (loss) before income taxes and noncontrolling interests | (18,131 | ) | 11,899 | (33,657 | ) | 5,423 | ||||||||||
Benefit (provision) for income taxes | 17 | 428 | 385 | 1,429 | ||||||||||||
Net income (loss) | (18,114 | ) | 12,327 | (33,272 | ) | 6,852 | ||||||||||
Noncontrolling interests' share of net (income) loss: | ||||||||||||||||
Unitholders in the Operating Partnership | 3,864 | (3,263 | ) | 7,681 | (1,500 | ) | ||||||||||
Partners in consolidated real estate entities | 863 | 1,004 | 195 | 508 | ||||||||||||
4,727 | (2,259 | ) | 7,876 | (992 | ) | |||||||||||
TPGI's share of net income (loss) | $ | (13,387 | ) | $ | 10,068 | $ | (25,396 | ) | $ | 5,860 | ||||||
Income (loss) per share - basic and diluted | $ | (0.29 | ) | $ | 0.27 | $ | (0.61 | ) | $ | 0.16 | ||||||
Weighted average common shares - basic | 45,594,590 | 36,647,394 | 41,631,796 | 36,619,558 | ||||||||||||
Weighted average common shares - diluted | 45,594,590 | 36,865,327 | 41,631,796 | 36,865,286 | ||||||||||||
Reconciliation of net income (loss) to ATCF (a): | ||||||||||||||||
Net income (loss) | $ | (13,387 | ) | $ | 10,068 | $ | (25,396 | ) | $ | 5,860 | ||||||
Adjustments: | ||||||||||||||||
Income tax (benefit) provision | (17 | ) | (428 | ) | (385 | ) | (1,429 | ) | ||||||||
Noncontrolling interests - unitholders in the Operating Partnership | (3,864 | ) | 3,263 | (7,681 | ) | 1,500 | ||||||||||
Depreciation and amortization | 3,919 | 3,434 | 15,701 | 13,622 | ||||||||||||
Depreciation and amortization - non-controlling interest share | (2,130 | ) | — | (2,355 | ) | — | ||||||||||
Amortization of loan costs | 142 | 170 | 582 | 750 | ||||||||||||
Amortization of loan costs - non-controlling interest share | 33 | — | 33 | — | ||||||||||||
Non-cash compensation expense | 169 | 238 | 1,404 | 898 | ||||||||||||
Straight-line rent adjustments | 66 | 20 | (230 | ) | (150 | ) | ||||||||||
Straight-line rent adjustments - non-controlling interest share | 192 | — | 226 | — | ||||||||||||
Adjustments to reflect the fair market value of rent | 41 | 7 | 72 | 23 | ||||||||||||
Adjustments to reflect the fair market value of rent - non-controlling interest share | 293 | — | 293 | — | ||||||||||||
Impairment loss | 12,745 | 8,095 | 12,745 | 8,095 | ||||||||||||
Unconsolidated real estate entities at TPGI's share: | ||||||||||||||||
Depreciation and amortization | 8,065 | 2,487 | 15,568 | 10,011 | ||||||||||||
Depreciation and amortization from discontinued operations | — | 548 | 490 | 2,655 | ||||||||||||
Amortization of loan costs | (69 | ) | 76 | 118 | 292 | |||||||||||
Amortization of loan costs from discontinued operations | — | 40 | 42 | 135 | ||||||||||||
Straight-line rent adjustments | (590 | ) | 27 | (707 | ) | (145 | ) | |||||||||
Straight-line rent adjustments from discontinued operations | — | (51 | ) | (20 | ) | (352 | ) | |||||||||
Adjustments to reflect the fair market value of rent | (943 | ) | (221 | ) | (1,532 | ) | (1,017 | ) | ||||||||
Adjustments to reflect the fair market value of rent from discontinued operations | — | (29 | ) | (31 | ) | (28 | ) | |||||||||
Impairment loss | 600 | 3,150 | 600 | 3,150 | ||||||||||||
Impairment loss from discontinued operations | — | 1,943 | — | 1,943 | ||||||||||||
Gain on extinguishment of debt from discontinued operations | — | (1,297 | ) | — | (1,630 | ) | ||||||||||
Gain of foreclosure of real estate from discontinued operations | — | (7,506 | ) | — | (7,506 | ) | ||||||||||
ATCF before income taxes | $ | 5,265 | $ | 24,034 | $ | 9,537 | $ | 36,677 | ||||||||
TPGI's share of ATCF before income taxes (b) | $ | 4,143 | $ | 17,946 | $ | 7,346 | $ | 27,401 | ||||||||
TPGI's income tax refund (expense) - current | (20 | ) | (64 | ) | 88 | (221 | ) | |||||||||
TPGI's share of ATCF | $ | 4,123 | $ | 17,882 | $ | 7,434 | $ | 27,180 | ||||||||
ATCF per share - basic | $ | 0.09 | $ | 0.49 | $ | 0.18 | $ | 0.74 | ||||||||
ATCF per share - diluted | $ | 0.09 | $ | 0.49 | $ | 0.18 | $ | 0.74 | ||||||||
Dividends paid per share | $ | 0.02 | $ | 0.015 | $ | 0.065 | $ | 0.015 | ||||||||
Weighted average common shares - basic | 45,594,590 | 36,647,394 | 41,631,796 | 36,619,558 | ||||||||||||
Weighted average common shares - diluted | 45,983,130 | 36,865,327 | 42,004,936 | 36,865,286 | ||||||||||||
a. | ATCF is a non-GAAP financial measure and may not be directly comparable to similarly-titled measures reported by other companies. We define ATCF as net income (loss) excluding the following items: i) deferred income tax expense (benefit); ii) noncontrolling interests; iii) non-cash charges for depreciation and amortization and asset impairment; iv) amortization of loan costs; v) non-cash compensation expense; vi) the adjustment to recognize rental revenues using the straight-line method; vii) the adjustment to rental revenue to reflect the fair market value of rents; and viii) gain from extinguishment of debt. Our management utilizes ATCF data in assessing performance of our business operations in period to period comparisons and for financial planning purposes. ATCF should be considered only as a supplement to net income as a measure of our performance. ATCF should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs. ATCF also should not be used as a substitute for cash flow from operating activities (computed in accordance with GAAP). |
b. | Based on an interest in our operating partnership of 78.68% and 77.03% for the three and twelve months ended December 31, 2012, respectively, and 74.67% and 74.71% for the three and twelve months ended December 31, 2011, respectively. |
THOMAS PROPERTIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, 2012 | December 31, 2011 | ||||||
(unaudited) | (audited) | ||||||
ASSETS | |||||||
Investments in real estate: | |||||||
Operating properties, net | $ | 270,487 | $ | 265,270 | |||
Land improvements—development properties, net | 57,944 | 76,876 | |||||
328,431 | 342,146 | ||||||
Condominium units held for sale | 37,891 | 45,217 | |||||
Investments in unconsolidated real estate entities | 106,210 | 11,372 | |||||
Cash and cash equivalents, unrestricted | 76,689 | 79,320 | |||||
Restricted cash | 11,611 | 10,616 | |||||
Rents and other receivables, net | 1,825 | 1,903 | |||||
Receivables from unconsolidated real estate entities | 2,347 | 2,918 | |||||
Deferred rents | 18,994 | 17,866 | |||||
Deferred leasing and loan costs, net | 10,716 | 12,283 | |||||
Other assets, net | 11,441 | 17,465 | |||||
Assets associated with land held for sale | 4,837 | 4,417 | |||||
Total assets | $ | 610,992 | $ | 545,523 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Mortgage loans | $ | 281,375 | $ | 289,523 | |||
Accounts payable and other liabilities, net | 28,346 | 32,443 | |||||
Losses and distributions in excess of investments in unconsolidated real estate entities | 10,084 | 2,538 | |||||
Prepaid rent | 1,784 | 2,116 | |||||
Deferred revenue | 10,566 | 903 | |||||
Obligations associated with land held for sale | — | 27 | |||||
Total liabilities | 332,155 | 327,550 | |||||
Equity: | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $.01 par value, 25,000,000 shares authorized, none issued or outstanding as of December 31, 2012 and 2011 | — | — | |||||
Common stock, $.01 par value, 225,000,000 shares authorized, 46,126,481 and 37,094,995 shares issued and outstanding as of December 31, 2012 and 2011, respectively | 461 | 371 | |||||
Limited voting stock, $.01 par value, 20,000,000 shares authorized, 12,313,331 shares issued and outstanding as of December 31, 2012 and 2011, respectively | 123 | 123 | |||||
Additional paid-in capital | 258,780 | 208,473 | |||||
Retained deficit and dividends | (83,635 | ) | (55,472 | ) | |||
Total stockholders’ equity | 175,729 | 153,495 | |||||
Noncontrolling interests: | |||||||
Unitholders in the Operating Partnership | 44,154 | 52,983 | |||||
Partners in consolidated real estate entities | 58,954 | 11,495 | |||||
Total noncontrolling interests | 103,108 | 64,478 | |||||
Total equity | 278,837 | 217,973 | |||||
Total liabilities and equity | $ | 610,992 | $ | 545,523 | |||
Contact: Thomas Properties Group, Inc.
Website: www.tpgre.com
Diana M. Laing, Chief Financial Officer
(213) 613-1900