2016 Q1 Form 10-Q Financial Statement

#000136060416000085 Filed on April 27, 2016

View on sec.gov

Income Statement

Concept 2016 Q1 2015 Q1
Revenue $107.3M $98.52M
YoY Change 8.93% 7.9%
Cost Of Revenue $35.40M $34.30M
YoY Change 3.21% 4.57%
Gross Profit $64.60M $62.20M
YoY Change 3.86% 7.8%
Gross Profit Margin 60.2% 63.13%
Selling, General & Admin $10.20M $6.500M
YoY Change 56.92% 8.33%
% of Gross Profit 15.79% 10.45%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $31.20M $30.20M
YoY Change 3.31% 7.86%
% of Gross Profit 48.3% 48.55%
Operating Expenses $40.60M $35.60M
YoY Change 14.04% 9.54%
Operating Profit $27.55M $23.30M
YoY Change 18.25% 19.48%
Interest Expense -$14.90M -$18.20M
YoY Change -18.13% 2.25%
% of Operating Profit -54.09% -78.13%
Other Income/Expense, Net $53.00K $15.00K
YoY Change 253.33% -42.31%
Pretax Income $9.200M $5.000M
YoY Change 84.0% -33.33%
Income Tax $0.00
% Of Pretax Income 0.0%
Net Earnings $9.860M $6.804M
YoY Change 44.91% 28.57%
Net Earnings / Revenue 9.19% 6.91%
Basic Earnings Per Share $0.08 $0.05
Diluted Earnings Per Share $0.08 $0.05
COMMON SHARES
Basic Shares Outstanding 129.3M shares 125.2M shares
Diluted Shares Outstanding 131.2M shares 127.1M shares

Balance Sheet

Concept 2016 Q1 2015 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.200M $10.40M
YoY Change -78.85% 1.96%
Cash & Equivalents $13.83M $13.52M
Short-Term Investments
Other Short-Term Assets $34.00M $26.00M
YoY Change 30.77% 188.89%
Inventory
Prepaid Expenses
Receivables $8.000M $16.00M
Other Receivables $78.00M $68.00M
Total Short-Term Assets $2.200M $10.40M
YoY Change -78.85% 1.96%
LONG-TERM ASSETS
Property, Plant & Equipment $2.651B $2.574B
YoY Change 3.0% 4.88%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $700.0K $14.20M
YoY Change -95.07% 39.22%
Total Long-Term Assets $3.308B $3.039B
YoY Change 8.87% 11.51%
TOTAL ASSETS
Total Short-Term Assets $2.200M $10.40M
Total Long-Term Assets $3.308B $3.039B
Total Assets $3.311B $3.049B
YoY Change 8.57% 11.47%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $66.00M $50.10M
YoY Change 31.74% -1.18%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $66.00M $50.10M
YoY Change 31.74% -1.18%
LONG-TERM LIABILITIES
Long-Term Debt $1.418B $1.445B
YoY Change -1.82% 4.06%
Other Long-Term Liabilities $64.30M $64.60M
YoY Change -0.46% 6.95%
Total Long-Term Liabilities $1.483B $1.509B
YoY Change -1.76% 4.18%
TOTAL LIABILITIES
Total Short-Term Liabilities $66.00M $50.10M
Total Long-Term Liabilities $1.483B $1.509B
Total Liabilities $1.837B $1.598B
YoY Change 14.94% 17.47%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock $2.423B $2.284B
YoY Change 6.11% 7.22%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.444B $1.418B
YoY Change
Total Liabilities & Shareholders Equity $3.311B $3.049B
YoY Change 8.57% 11.47%

Cashflow Statement

Concept 2016 Q1 2015 Q1
OPERATING ACTIVITIES
Net Income $9.860M $6.804M
YoY Change 44.91% 28.57%
Depreciation, Depletion And Amortization $31.20M $30.20M
YoY Change 3.31% 7.86%
Cash From Operating Activities $40.45M $37.20M
YoY Change 8.76% 11.2%
INVESTING ACTIVITIES
Capital Expenditures -$48.80M -$48.30M
YoY Change 1.04% 203.77%
Acquisitions
YoY Change
Other Investing Activities -$8.000M -$4.300M
YoY Change 86.05% 616.67%
Cash From Investing Activities -$168.3M -$42.15M
YoY Change 299.36% 606.42%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$89.86M $1.292M
YoY Change -7054.8% 125.87%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $128.6M $8.054M
YoY Change 1496.9% -144.24%
NET CHANGE
Cash From Operating Activities $40.45M $37.20M
Cash From Investing Activities -$168.3M -$42.15M
Cash From Financing Activities $128.6M $8.054M
Net Change In Cash $757.0K $3.104M
YoY Change -75.61% -66.54%
FREE CASH FLOW
Cash From Operating Activities $40.45M $37.20M
Capital Expenditures -$48.80M -$48.30M
Free Cash Flow $89.25M $85.50M
YoY Change 4.39% 73.25%

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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;">March 31, 2016</font><font style="font-family:inherit;font-size:10pt;">, HTA owned a </font><font style="font-family:inherit;font-size:10pt;">98.6%</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;">$3.7 billion</font><font style="font-family:inherit;font-size:10pt;"> through </font><font style="font-family:inherit;font-size:10pt;">March 31, 2016</font><font style="font-family:inherit;font-size:10pt;">.</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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