2017 Q1 Form 10-Q Financial Statement

#000136060417000035 Filed on April 27, 2017

View on sec.gov

Income Statement

Concept 2017 Q1 2016 Q1
Revenue $124.3M $107.3M
YoY Change 15.87% 8.93%
Cost Of Revenue $37.90M $35.40M
YoY Change 7.06% 3.21%
Gross Profit $66.80M $64.60M
YoY Change 3.41% 3.86%
Gross Profit Margin 53.72% 60.2%
Selling, General & Admin $8.800M $10.20M
YoY Change -13.73% 56.92%
% of Gross Profit 13.17% 15.79%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $34.50M $31.20M
YoY Change 10.58% 3.31%
% of Gross Profit 51.65% 48.3%
Operating Expenses $43.20M $40.60M
YoY Change 6.4% 14.04%
Operating Profit $29.56M $27.55M
YoY Change 7.32% 18.25%
Interest Expense -$14.20M -$14.90M
YoY Change -4.7% -18.13%
% of Operating Profit -48.03% -54.09%
Other Income/Expense, Net $8.000K $53.00K
YoY Change -84.91% 253.33%
Pretax Income $31.80M $9.200M
YoY Change 245.65% 84.0%
Income Tax
% Of Pretax Income
Net Earnings $13.55M $9.860M
YoY Change 37.37% 44.91%
Net Earnings / Revenue 10.89% 9.19%
Basic Earnings Per Share $0.10 $0.08
Diluted Earnings Per Share $0.09 $0.08
COMMON SHARES
Basic Shares Outstanding 141.8M shares 129.3M shares
Diluted Shares Outstanding 146.1M shares 131.2M shares

Balance Sheet

Concept 2017 Q1 2016 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.500M $2.200M
YoY Change -31.82% -78.85%
Cash & Equivalents $16.03M $13.83M
Short-Term Investments
Other Short-Term Assets $59.00M $34.00M
YoY Change 73.53% 30.77%
Inventory
Prepaid Expenses
Receivables $9.000M $8.000M
Other Receivables $85.00M $78.00M
Total Short-Term Assets $1.500M $2.200M
YoY Change -31.82% -78.85%
LONG-TERM ASSETS
Property, Plant & Equipment $2.726B $2.651B
YoY Change 2.81% 3.0%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $120.0M $700.0K
YoY Change 17042.86% -95.07%
Total Long-Term Assets $3.752B $3.308B
YoY Change 13.4% 8.87%
TOTAL ASSETS
Total Short-Term Assets $1.500M $2.200M
Total Long-Term Assets $3.752B $3.308B
Total Assets $3.753B $3.311B
YoY Change 13.37% 8.57%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $62.70M $66.00M
YoY Change -5.0% 31.74%
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 $62.70M $66.00M
YoY Change -5.0% 31.74%
LONG-TERM LIABILITIES
Long-Term Debt $1.279B $1.418B
YoY Change -9.84% -1.82%
Other Long-Term Liabilities $44.50M $64.30M
YoY Change -30.79% -0.46%
Total Long-Term Liabilities $1.323B $1.483B
YoY Change -10.75% -1.76%
TOTAL LIABILITIES
Total Short-Term Liabilities $62.70M $66.00M
Total Long-Term Liabilities $1.323B $1.483B
Total Liabilities $1.999B $1.837B
YoY Change 8.79% 14.94%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock $2.756B $2.423B
YoY Change 13.71% 6.11%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.657B $1.444B
YoY Change
Total Liabilities & Shareholders Equity $3.753B $3.311B
YoY Change 13.37% 8.57%

Cashflow Statement

Concept 2017 Q1 2016 Q1
OPERATING ACTIVITIES
Net Income $13.55M $9.860M
YoY Change 37.37% 44.91%
Depreciation, Depletion And Amortization $34.50M $31.20M
YoY Change 10.58% 3.31%
Cash From Operating Activities $47.01M $40.45M
YoY Change 16.22% 8.76%
INVESTING ACTIVITIES
Capital Expenditures -$33.10M -$48.80M
YoY Change -32.17% 1.04%
Acquisitions
YoY Change
Other Investing Activities $76.90M -$8.000M
YoY Change -1061.25% 86.05%
Cash From Investing Activities -$42.85M -$168.3M
YoY Change -74.54% 299.36%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $3.118M -$89.86M
YoY Change -103.47% -7054.8%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$5.127M $128.6M
YoY Change -103.99% 1496.9%
NET CHANGE
Cash From Operating Activities $47.01M $40.45M
Cash From Investing Activities -$42.85M -$168.3M
Cash From Financing Activities -$5.127M $128.6M
Net Change In Cash -$968.0K $757.0K
YoY Change -227.87% -75.61%
FREE CASH FLOW
Cash From Operating Activities $47.01M $40.45M
Capital Expenditures -$33.10M -$48.80M
Free Cash Flow $80.11M $89.25M
YoY Change -10.24% 4.39%

Facts In Submission

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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, 2017</font><font style="font-family:inherit;font-size:10pt;">, HTA owned a </font><font style="font-family:inherit;font-size:10pt;">97.0%</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:29px;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 U.S. as measured by the gross leasable area (&#8220;GLA&#8221;) of its MOBs. HTA conducts substantially all of its operations through HTALP. We invest in MOBs that we believe will serve the future of healthcare delivery, and MOBs that are primarily located on health system campuses, near university medical centers, or in core community outpatient locations. 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 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)&#160;target accretive acquisitions of MOBs in markets with attractive demographics that complement our existing portfolio; and (iii) actively manage our balance sheet to maintain flexibility with conservative leverage.&#160; Additionally, from time to time we consider, on an opportunistic basis, significant portfolio acquisitions that we believe fit our core business and could enhance our existing portfolio. 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-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Since 2006, we have invested </font><font style="font-family:inherit;font-size:10pt;">$4.3 billion</font><font style="font-family:inherit;font-size:10pt;"> to create a portfolio of MOBs and other healthcare assets consisting of approximately </font><font style="font-family:inherit;font-size:10pt;">17.8 million</font><font style="font-family:inherit;font-size:10pt;"> square feet of GLA throughout the U.S. As of </font><font style="font-family:inherit;font-size:10pt;">March 31, 2017</font><font style="font-family:inherit;font-size:10pt;">, approximately </font><font style="font-family:inherit;font-size:10pt;">96%</font><font style="font-family:inherit;font-size:10pt;"> of our portfolio, based on GLA, was located on the campuses of, or aligned with, nationally or regionally recognized healthcare systems. Our portfolio is diversified geographically across </font><font style="font-family:inherit;font-size:10pt;">31</font><font style="font-family:inherit;font-size:10pt;"> states, with no state having more than </font><font style="font-family:inherit;font-size:10pt;">13%</font><font style="font-family:inherit;font-size:10pt;"> of our total GLA as of </font><font style="font-family:inherit;font-size:10pt;">March 31, 2017</font><font style="font-family:inherit;font-size:10pt;">. We are concentrated in </font><font style="font-family:inherit;font-size:10pt;">15</font><font style="font-family:inherit;font-size:10pt;"> to </font><font style="font-family:inherit;font-size:10pt;">20</font><font style="font-family:inherit;font-size:10pt;"> key markets that are experiencing higher economic and demographic trends than other markets, on average, that we expect will drive demand for MOBs. Approximately </font><font style="font-family:inherit;font-size:10pt;">92%</font><font style="font-family:inherit;font-size:10pt;"> of our portfolio, based on GLA, is located in the top </font><font style="font-family:inherit;font-size:10pt;">75</font><font style="font-family:inherit;font-size:10pt;"> metropolitan statistical areas (&#8220;MSAs&#8221;) with Boston, Hartford/New Haven, Dallas, Houston, Phoenix and Orange County/Los Angeles being our largest markets by investment. </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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