2015 Q4 Form 10-Q Financial Statement

#000136060415000049 Filed on October 28, 2015

View on sec.gov

Income Statement

Concept 2015 Q4 2015 Q3 2014 Q3
Revenue $98.60M $103.9M $95.53M
YoY Change 3.79% 8.8% 15.12%
Cost Of Revenue $36.80M $35.20M $34.20M
YoY Change 15.0% 2.92% 6.21%
Gross Profit $61.80M $61.50M $59.40M
YoY Change 2.32% 3.54% 15.56%
Gross Profit Margin 62.68% 59.17% 62.18%
Selling, General & Admin $7.200M $6.200M $5.200M
YoY Change 22.03% 19.23% -8.77%
% of Gross Profit 11.65% 10.08% 8.75%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $26.60M $29.70M $29.40M
YoY Change -10.44% 1.02% 12.64%
% of Gross Profit 43.04% 48.29% 49.49%
Operating Expenses $36.80M $35.30M $33.20M
YoY Change 9.85% 6.33% 10.67%
Operating Profit $25.00M $23.17M $22.47M
YoY Change -7.06% 3.1% 11.33%
Interest Expense -$14.80M -$15.00M -$17.80M
YoY Change -18.23% -15.73% 5.95%
% of Operating Profit -59.2% -64.75% -79.22%
Other Income/Expense, Net -$1.500M $72.00K $1.000K
YoY Change 7100.0% -90.0%
Pretax Income $19.40M $16.80M $8.400M
YoY Change 122.99% 100.0% 82.61%
Income Tax
% Of Pretax Income
Net Earnings $18.70M $6.463M $16.03M
YoY Change -11.76% -59.69% 232.41%
Net Earnings / Revenue 18.97% 6.22% 16.78%
Basic Earnings Per Share $0.05 $0.13
Diluted Earnings Per Share $186.3K $0.05 $0.13
COMMON SHARES
Basic Shares Outstanding 127.0M shares 126.9M shares 119.5M shares
Diluted Shares Outstanding 128.8M shares 120.7M shares

Balance Sheet

Concept 2015 Q4 2015 Q3 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.100M $8.500M $1.700M
YoY Change 17.14% 400.0% -76.39%
Cash & Equivalents $13.07M $11.15M $18.42M
Short-Term Investments
Other Short-Term Assets $35.00M $37.00M $28.00M
YoY Change -43.0% 32.14%
Inventory $23.00M
Prepaid Expenses
Receivables $6.000M $9.000M $24.00M
Other Receivables $77.00M $70.00M $58.00M
Total Short-Term Assets $4.100M $8.500M $1.700M
YoY Change -96.74% 400.0% -76.39%
LONG-TERM ASSETS
Property, Plant & Equipment $2.619B $2.534B $2.548B
YoY Change 2.4% -0.56% 8.6%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $700.0K $6.400M $11.50M
YoY Change -96.32% -44.35% 26.37%
Total Long-Term Assets $3.168B $3.171B $2.985B
YoY Change 9.03% 6.23% 11.62%
TOTAL ASSETS
Total Short-Term Assets $4.100M $8.500M $1.700M
Total Long-Term Assets $3.168B $3.171B $2.985B
Total Assets $3.172B $3.180B $2.987B
YoY Change 4.65% 6.45% 11.38%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $75.50M $65.80M $60.00M
YoY Change 7.55% 9.67% 4.17%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $75.50M $65.80M $60.00M
YoY Change 7.55% 9.67% 4.17%
LONG-TERM LIABILITIES
Long-Term Debt $1.425B $1.381B $1.403B
YoY Change 1.52% -1.57% 10.66%
Other Long-Term Liabilities $67.00M $65.90M $58.40M
YoY Change 7.2% 12.84% -3.79%
Total Long-Term Liabilities $1.492B $1.447B $1.462B
YoY Change 1.76% -1.0% 10.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $75.50M $65.80M $60.00M
Total Long-Term Liabilities $1.492B $1.447B $1.462B
Total Liabilities $1.761B $1.741B $1.643B
YoY Change 13.52% 6.0% 30.45%
SHAREHOLDERS EQUITY
Retained Earnings -$821.0M
YoY Change 15.28%
Common Stock $2.330B $2.330B $2.150B
YoY Change 2.05% 8.37% 1.63%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.379B $1.406B $1.329B
YoY Change
Total Liabilities & Shareholders Equity $3.172B $3.180B $2.987B
YoY Change 4.65% 6.45% 11.38%

Cashflow Statement

Concept 2015 Q4 2015 Q3 2014 Q3
OPERATING ACTIVITIES
Net Income $18.70M $6.463M $16.03M
YoY Change -11.76% -59.69% 232.41%
Depreciation, Depletion And Amortization $26.60M $29.70M $29.40M
YoY Change -10.44% 1.02% 12.64%
Cash From Operating Activities $40.70M $45.50M $26.50M
YoY Change -14.68% 71.7% -6.36%
INVESTING ACTIVITIES
Capital Expenditures -$97.80M -$37.20M -$36.40M
YoY Change 95.6% 2.2% -58.54%
Acquisitions
YoY Change
Other Investing Activities $11.60M $37.80M $5.100M
YoY Change -55.89% 641.18% -90.25%
Cash From Investing Activities -$86.20M $600.0K -$31.30M
YoY Change 263.71% -101.92% -11.58%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 41.20M -46.10M -11.00M
YoY Change -286.43% 319.09% -183.97%
NET CHANGE
Cash From Operating Activities 40.70M 45.50M 26.50M
Cash From Investing Activities -86.20M 600.0K -31.30M
Cash From Financing Activities 41.20M -46.10M -11.00M
Net Change In Cash -4.300M -0.000000009546 -15.80M
YoY Change -326.32% -100.0% -363.33%
FREE CASH FLOW
Cash From Operating Activities $40.70M $45.50M $26.50M
Capital Expenditures -$97.80M -$37.20M -$36.40M
Free Cash Flow $138.5M $82.70M $62.90M
YoY Change 41.76% 31.48% -45.82%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:13px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Organization and Description of Business</font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">HTA, a Maryland corporation, and </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">, a Delaware limited partnership, were incorporated or formed, as applicable, on </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">April&#160;20, 2006</font><font style="font-family:inherit;font-size:10pt;">. HTA operates as a REIT and is the general partner of </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">, which is the operating partnership. As of </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;text-decoration:none;">September 30, 2015</font><font style="font-family:inherit;font-size:10pt;">, HTA owned a </font><font style="font-family:inherit;font-size:10pt;">98.5%</font><font style="font-family:inherit;font-size:10pt;"> partnership interest and other limited partners, including some of HTA&#8217;s directors, executive officers and their affiliates, owned the remaining partnership interest (including the LTIP units) in </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">. As the sole general partner of </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">, HTA has the full, exclusive and complete responsibility for </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">&#8217;s day-to-day management and control. HTA operates in an umbrella partnership REIT structure in which </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;"> and its subsidiaries hold substantially all of the assets. HTA&#8217;s only material asset is its ownership of partnership interests of </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">. As a result, HTA does not conduct business itself, other than acting as the sole general partner of </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">, issuing public equity from time to time and guaranteeing certain debts of </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;">. </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;"> conducts the operations of the business and issues publicly-traded debt, but has no publicly-traded equity. </font></div><div style="line-height:120%;padding-top:6px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">HTA is one of the largest publicly-traded REITs focused on medical office buildings (&#8220;MOBs&#8221;) in the United States (&#8220;U.S.&#8221;) based on gross leasable area (&#8220;GLA&#8221;). We are primarily focused on acquiring, owning and operating high quality MOBs that are predominantly located on the campuses of, or aligned with, nationally or regionally recognized healthcare systems. In addition, we have strong industry relationships, a stable and diversified tenant mix and an extensive and active acquisition network. Our primary objective is to maximize stockholder value with disciplined growth through strategic investments that provide an attractive risk-adjusted return for our stockholders by consistently increasing our cash flow. In pursuing this objective, we: (i) seek internal growth through proactive asset management, leasing and property management oversight; (ii) target mid-sized acquisitions of MOBs in markets with dominant healthcare systems, and with attractive demographics that complement our existing portfolio; and (iii) actively manage our balance sheet to maintain flexibility with conservative leverage. HTA has qualified to be taxed as a REIT for federal income tax purposes and intends to continue to be taxed as a REIT. </font></div><div style="line-height:120%;padding-top:6px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We primarily invest in MOBs that are located on health system campuses, in community-core locations, or around university medical centers which we believe are core, critical real estate. We also focus on our key markets that have certain demographic and macro-economic trends and where we can utilize our institutional property management and leasing platform to generate strong tenant relationships and operating cost efficiencies. Our portfolio consists of MOBs and other facilities that serve the healthcare industry with an aggregate purchase price of </font><font style="font-family:inherit;font-size:10pt;">$3.6 billion</font><font style="font-family:inherit;font-size:10pt;"> through </font><font style="font-family:inherit;font-size:10pt;">September 30, 2015</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-top:6px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Effective December 15, 2014, HTA completed a reverse stock split (the &#8220;Reverse Stock Split&#8221;) of its common stock. As a result of the Reverse Stock Split, every </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> issued and outstanding shares of common stock were converted into </font><font style="font-family:inherit;font-size:10pt;">one</font><font style="font-family:inherit;font-size:10pt;"> share of common stock. HTA&#8217;s par value and shares authorized remained unchanged. Concurrently with the Reverse Stock Split, </font><font style="font-family:inherit;font-size:10pt;">HTALP</font><font style="font-family:inherit;font-size:10pt;"> effected a corresponding Reverse Stock Split of its outstanding units of limited partnership interests. The weighted average shares/units outstanding and per share/unit amounts for the </font><font style="font-family:inherit;font-size:10pt;">three and nine months ended September 30, 2014</font><font style="font-family:inherit;font-size:10pt;"> have been adjusted retroactively to reflect the Reverse Stock Split.</font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our principal executive office is located at 16435 North Scottsdale Road, Suite 320, Scottsdale, Arizona, 85254.</font></div></div>

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