2017 Q3 Form 10-Q Financial Statement

#000156240117000055 Filed on November 03, 2017

View on sec.gov

Income Statement

Concept 2017 Q3 2016 Q3
Revenue $246.8M $236.1M
YoY Change 4.57% 36.76%
Cost Of Revenue $115.4M $110.4M
YoY Change 4.53% 28.07%
Gross Profit $131.4M $125.6M
YoY Change 4.62% 45.37%
Gross Profit Margin 53.23% 53.21%
Selling, General & Admin $8.500M $8.500M
YoY Change 0.0% 21.43%
% of Gross Profit 6.47% 6.77%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $74.80M $75.40M
YoY Change -0.8% 11.21%
% of Gross Profit 56.93% 60.03%
Operating Expenses $238.0M $232.0M
YoY Change 2.59% 22.74%
Operating Profit -$106.6M -$106.4M
YoY Change 0.2% 3.69%
Interest Expense $26.59M $32.85M
YoY Change -19.05% 37.65%
% of Operating Profit
Other Income/Expense, Net $8.400M -$2.500M
YoY Change -436.0% -28.57%
Pretax Income $19.10M -$200.0K
YoY Change -9650.0% -98.99%
Income Tax
% Of Pretax Income
Net Earnings $19.10M -$167.0K
YoY Change -11535.33% -99.16%
Net Earnings / Revenue 7.74% -0.07%
Basic Earnings Per Share $0.01 -$0.09
Diluted Earnings Per Share $0.00 -$0.09
COMMON SHARES
Basic Shares Outstanding 266.8M shares 238.4M shares
Diluted Shares Outstanding 289.2M shares 238.4M shares

Balance Sheet

Concept 2017 Q3 2016 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $243.5M $106.3M
YoY Change 129.07% -55.41%
Cash & Equivalents $243.5M $106.3M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables $35.40M $21.80M
Other Receivables $0.00 $0.00
Total Short-Term Assets $278.9M $128.1M
YoY Change 117.72% -49.94%
LONG-TERM ASSETS
Property, Plant & Equipment $7.803B $7.545B
YoY Change 3.41% 20.39%
Goodwill $120.3M $120.3M
YoY Change -0.03% -0.28%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $272.6M $239.4M
YoY Change 13.87% -19.15%
Total Long-Term Assets $8.231B $7.958B
YoY Change 3.43% 18.61%
TOTAL ASSETS
Total Short-Term Assets $278.9M $128.1M
Total Long-Term Assets $8.231B $7.958B
Total Assets $8.510B $8.086B
YoY Change 5.24% 16.09%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.100M $0.00
YoY Change -100.0%
Accrued Expenses $188.4M $171.3M
YoY Change 9.98% -5.41%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $263.8M $241.0M
YoY Change 9.46% 2.73%
LONG-TERM LIABILITIES
Long-Term Debt $2.339B $2.927B
YoY Change -20.08% 13.13%
Other Long-Term Liabilities $68.50M $65.70M
YoY Change 4.26% -49.03%
Total Long-Term Liabilities $2.408B $2.993B
YoY Change -19.54% 10.18%
TOTAL LIABILITIES
Total Short-Term Liabilities $263.8M $241.0M
Total Long-Term Liabilities $2.408B $2.993B
Total Liabilities $2.671B $3.234B
YoY Change -17.39% 9.59%
SHAREHOLDERS EQUITY
Retained Earnings -$417.6M -$368.8M
YoY Change 13.24% 38.65%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $5.104B $4.099B
YoY Change
Total Liabilities & Shareholders Equity $8.510B $8.086B
YoY Change 5.24% 16.09%

Cashflow Statement

Concept 2017 Q3 2016 Q3
OPERATING ACTIVITIES
Net Income $19.10M -$167.0K
YoY Change -11535.33% -99.16%
Depreciation, Depletion And Amortization $74.80M $75.40M
YoY Change -0.8% 11.21%
Cash From Operating Activities $124.2M $105.6M
YoY Change 17.61% 102.69%
INVESTING ACTIVITIES
Capital Expenditures -$32.80M -$16.40M
YoY Change 100.0% 130.99%
Acquisitions
YoY Change
Other Investing Activities -$231.6M -$17.40M
YoY Change 1231.03% -89.08%
Cash From Investing Activities -$264.4M -$33.80M
YoY Change 682.25% -79.69%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 307.5M -215.8M
YoY Change -242.49% -182.37%
NET CHANGE
Cash From Operating Activities 124.2M 105.6M
Cash From Investing Activities -264.4M -33.80M
Cash From Financing Activities 307.5M -215.8M
Net Change In Cash 167.3M -144.0M
YoY Change -216.18% -197.49%
FREE CASH FLOW
Cash From Operating Activities $124.2M $105.6M
Capital Expenditures -$32.80M -$16.40M
Free Cash Flow $157.0M $122.0M
YoY Change 28.69% 106.08%

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us-gaap Gain Loss On Sale Of Properties
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0 USD
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P1Y
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0 USD
us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
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0 USD
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12000 USD
us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
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0 USD
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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256768343 shares
CY2016Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
238401343 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
232036802 shares
CY2017Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
266767313 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
256768343 shares
us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-style:normal;font-weight:bold;text-decoration:underline;"></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-style:normal;font-weight:bold;text-decoration:underline;">Organization and Operations</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">American Homes 4 Rent (&#8220;AH4R") is a Maryland real estate investment trust (&#8220;REIT&#8221;) formed on October&#160;19, 2012, for the purpose of acquiring, renovating, leasing and operating single-family homes as rental properties. American Homes 4 Rent, L.P., a Delaware limited partnership, and its consolidated subsidiaries (collectively, the "Operating Partnership," our "Operating Partnership" or the "OP") is the entity through which the Company conducts substantially all of our business and owns, directly or through subsidiaries, substantially all of our assets. References to &#8220;the Company,&#8221; &#8220;we,&#8221; "our," and &#8220;us&#8221; mean collectively, AH4R, the Operating Partnership and those entities/subsidiaries owned or controlled by AH4R and/or the Operating Partnership. As of </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, the Company held </font><font style="font-family:inherit;font-size:10pt;">50,015</font><font style="font-family:inherit;font-size:10pt;"> single-family properties in </font><font style="font-family:inherit;font-size:10pt;">22</font><font style="font-family:inherit;font-size:10pt;"> states, including </font><font style="font-family:inherit;font-size:10pt;">469</font><font style="font-family:inherit;font-size:10pt;"> properties held for sale. </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">AH4R is the general partner of, and as of </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, owned an approximate </font><font style="font-family:inherit;font-size:10pt;">83.2%</font><font style="font-family:inherit;font-size:10pt;"> common partnership interest in the Operating Partnership, with the remaining </font><font style="font-family:inherit;font-size:10pt;">16.8%</font><font style="font-family:inherit;font-size:10pt;"> common partnership interest owned by limited partners. As the sole general partner of the Operating Partnership, AH4R has exclusive control of the Operating Partnership&#8217;s day-to-day management. The Company&#8217;s management operates AH4R and the Operating Partnership as one business, and the management of AH4R consists of the same members as the management of the Operating Partnership. AH4R&#8217;s primary function is acting as the general partner of the Operating Partnership. The only material asset of AH4R is its partnership interest in the Operating Partnership. As a result, AH4R generally does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing equity from time to time and guaranteeing certain debt of the Operating Partnership. AH4R itself is not directly obligated under any indebtedness, but guarantees some of the debt of the Operating Partnership. The Operating Partnership owns substantially all of the assets of the Company, including the Company&#8217;s ownership interests in its joint ventures, either directly or through its subsidiaries, conducts the operations of the Company&#8217;s business and is structured as a limited partnership with no publicly traded equity. One difference between the Company and the Operating Partnership is </font><font style="font-family:inherit;font-size:10pt;">$25.7 million</font><font style="font-family:inherit;font-size:10pt;"> of asset-backed securitization certificates issued by the Operating Partnership and purchased by AH4R. The asset-backed securitization certificates are recorded as an asset-backed securitization certificates receivable by the Company and an amount due from affiliates by the Operating Partnership. AH4R contributes all net proceeds from its various equity offerings to the Operating Partnership. In return for those contributions, AH4R receives Operating Partnership units (&#8220;OP units&#8221;) equal to the number of shares it has issued in the equity offering. Based on the terms of the Agreement of Limited Partnership of the Operating Partnership, OP units can be exchanged for shares on a one-for-one basis. Except for net proceeds from equity issuances by AH4R, the Operating Partnership generates the capital required by the Company&#8217;s business through the Operating Partnership&#8217;s operations, by the Operating Partnership&#8217;s incurrence of indebtedness or through the issuance of units of partnership interest.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">From our formation through June&#160;10, 2013, the Company was externally managed and advised by American Homes 4 Rent Advisor, LLC (the &#8220;Advisor&#8221;) and the leasing, managing and advertising of our properties were overseen and directed by American Homes 4 Rent Management Holdings, LLC (the &#8220;Property Manager&#8221;), both of which were subsidiaries of American Homes 4 Rent, LLC (&#8220;AH LLC&#8221;). On June&#160;10, 2013, we acquired the Advisor and the Property Manager from AH LLC in exchange for </font><font style="font-family:inherit;font-size:10pt;background-color:#ffffff;">4,375,000</font><font style="font-family:inherit;font-size:10pt;"> Series&#160;D convertible units and </font><font style="font-family:inherit;font-size:10pt;background-color:#ffffff;">4,375,000</font><font style="font-family:inherit;font-size:10pt;"> Series&#160;E convertible units from the Operating Partnership, therefore internalizing our management including all administrative, financial, property management, marketing and leasing personnel, including executive management. The Company consolidates the Advisor and the Property Manager and the results of these operations are reflected in the condensed consolidated financial statements. Effective August 31, 2016, AH LLC was liquidated and its ownership interests in the Operating Partnership were distributed to its members.</font></div></div>

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