2017 Q2 Form 10-Q Financial Statement

#000136060417000082 Filed on August 01, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2016 Q2
Revenue $139.9M $113.2M
YoY Change 23.53% 14.02%
Cost Of Revenue $38.20M $36.30M
YoY Change 5.23% 7.08%
Gross Profit $67.10M $66.40M
YoY Change 1.05% 5.73%
Gross Profit Margin 47.97% 58.64%
Selling, General & Admin $8.100M $8.200M
YoY Change -1.22% 22.39%
% of Gross Profit 12.07% 12.35%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $37.00M $32.10M
YoY Change 15.26% 6.64%
% of Gross Profit 55.14% 48.34%
Operating Expenses $42.90M $39.50M
YoY Change 8.61% 10.34%
Operating Profit $22.37M $24.56M
YoY Change -8.94% 6.65%
Interest Expense -$14.30M -$14.70M
YoY Change -2.72% -14.04%
% of Operating Profit -63.94% -59.85%
Other Income/Expense, Net $6.000K $72.00K
YoY Change -91.67% 1700.0%
Pretax Income $25.20M $12.20M
YoY Change 106.56% -30.68%
Income Tax
% Of Pretax Income
Net Earnings -$5.918M $13.07M
YoY Change -145.27% 40.7%
Net Earnings / Revenue -4.23% 11.55%
Basic Earnings Per Share -$0.03 $0.10
Diluted Earnings Per Share -$0.03 $0.09
COMMON SHARES
Basic Shares Outstanding 176.5M shares 136.5M shares
Diluted Shares Outstanding 176.5M shares 140.5M shares

Balance Sheet

Concept 2017 Q2 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.000M $9.000M
YoY Change -77.78% 7.14%
Cash & Equivalents $91.44M $8.148M
Short-Term Investments
Other Short-Term Assets $54.00M $34.00M
YoY Change 58.82% 47.83%
Inventory
Prepaid Expenses
Receivables $11.00M $6.000M
Other Receivables $83.00M $82.00M
Total Short-Term Assets $2.000M $9.000M
YoY Change -77.78% 7.14%
LONG-TERM ASSETS
Property, Plant & Equipment $2.748B $2.687B
YoY Change 2.25% 6.44%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $68.90M
YoY Change
Other Assets $17.90M $700.0K
YoY Change 2457.14% -95.07%
Total Long-Term Assets $6.365B $3.523B
YoY Change 80.65% 9.77%
TOTAL ASSETS
Total Short-Term Assets $2.000M $9.000M
Total Long-Term Assets $6.365B $3.523B
Total Assets $6.367B $3.532B
YoY Change 80.24% 9.76%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $62.10M $70.40M
YoY Change -11.79% 23.29%
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 $62.10M $70.40M
YoY Change -11.79% 23.29%
LONG-TERM LIABILITIES
Long-Term Debt $1.203B $1.415B
YoY Change -14.96% 1.86%
Other Long-Term Liabilities $47.00M $46.50M
YoY Change 1.08% -29.76%
Total Long-Term Liabilities $1.250B $1.461B
YoY Change -14.45% 0.43%
TOTAL LIABILITIES
Total Short-Term Liabilities $62.10M $70.40M
Total Long-Term Liabilities $1.250B $1.461B
Total Liabilities $3.055B $1.811B
YoY Change 68.73% 0.96%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock $4.386B $2.627B
YoY Change 67.0% 14.95%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.221B $1.620B
YoY Change
Total Liabilities & Shareholders Equity $6.367B $3.532B
YoY Change 80.24% 9.76%

Cashflow Statement

Concept 2017 Q2 2016 Q2
OPERATING ACTIVITIES
Net Income -$5.918M $13.07M
YoY Change -145.27% 40.7%
Depreciation, Depletion And Amortization $37.00M $32.10M
YoY Change 15.26% 6.64%
Cash From Operating Activities $54.60M $35.90M
YoY Change 52.09% -29.19%
INVESTING ACTIVITIES
Capital Expenditures -$56.80M -$43.70M
YoY Change 29.98% 115.27%
Acquisitions
YoY Change
Other Investing Activities $30.00M -$11.00M
YoY Change -372.73% -111.87%
Cash From Investing Activities -$26.70M -$54.60M
YoY Change -51.1% -175.41%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -123.1M 25.60M
YoY Change -580.86% -120.46%
NET CHANGE
Cash From Operating Activities 54.60M 35.90M
Cash From Investing Activities -26.70M -54.60M
Cash From Financing Activities -123.1M 25.60M
Net Change In Cash -95.20M 6.900M
YoY Change -1479.71% -445.0%
FREE CASH FLOW
Cash From Operating Activities $54.60M $35.90M
Capital Expenditures -$56.80M -$43.70M
Free Cash Flow $111.4M $79.60M
YoY Change 39.95% 12.11%

Facts In Submission

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CY2016Q4 us-gaap Stockholders Equity
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1687274000 USD
CY2017Q2 us-gaap Stockholders Equity
StockholdersEquity
3221066000 USD
CY2015Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1406958000 USD
CY2016Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1712202000 USD
CY2016Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1780417000 USD
CY2017Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
3307085000 USD
CY2016Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
140512000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
135876000 shares
CY2017Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
176464000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
163490000 shares
CY2016Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
136528000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
132932000 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
176464000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
159218000 shares
us-gaap Nature Of Operations
NatureOfOperations
<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;">June 30, 2017</font><font style="font-family:inherit;font-size:10pt;">, HTA owned a </font><font style="font-family:inherit;font-size:10pt;">98.0%</font><font style="font-family:inherit;font-size:10pt;"> partnership interest and other limited partners, including some of our 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 our 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:29px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On April 29, 2017, we entered into purchase and sale agreements (collectively, the &#8220;Purchase Agreements&#8221;) with Duke Realty Limited Partnership, Duke Construction Limited Partnership and certain of their subsidiaries and affiliated entities (collectively, &#8220;Duke&#8221;) to acquire Duke&#8217;s MOB business (the &#8220;Duke Acquisition&#8221;) consisting of (i) </font><font style="font-family:inherit;font-size:10pt;">71</font><font style="font-family:inherit;font-size:10pt;"> properties totaling approximately </font><font style="font-family:inherit;font-size:10pt;">6.6 million</font><font style="font-family:inherit;font-size:10pt;"> square feet of GLA and </font><font style="font-family:inherit;font-size:10pt;">95%</font><font style="font-family:inherit;font-size:10pt;"> leased, (ii) </font><font style="font-family:inherit;font-size:10pt;">five</font><font style="font-family:inherit;font-size:10pt;"> properties in development and </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> expansion properties totaling approximately </font><font style="font-family:inherit;font-size:10pt;">470,000</font><font style="font-family:inherit;font-size:10pt;"> square feet of GLA and which were </font><font style="font-family:inherit;font-size:10pt;">86%</font><font style="font-family:inherit;font-size:10pt;"> leased, (iii) interests in </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> buildings owned by joint ventures and (iv) </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> parcels of land totaling approximately </font><font style="font-family:inherit;font-size:10pt;">16.5</font><font style="font-family:inherit;font-size:10pt;"> acres (collectively, the &#8220;Duke Assets&#8221;) for </font><font style="font-family:inherit;font-size:10pt;">$2.75 billion</font><font style="font-family:inherit;font-size:10pt;">. </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;">Pursuant to the Purchase Agreements and during the </font><font style="font-family:inherit;font-size:10pt;">three months ended June 30, 2017</font><font style="font-family:inherit;font-size:10pt;">, we paid consideration of, before certain credits, proration and closing costs, </font><font style="font-family:inherit;font-size:10pt;">$2.2</font><font style="font-family:inherit;font-size:10pt;"> billion for </font><font style="font-family:inherit;font-size:10pt;">68</font><font style="font-family:inherit;font-size:10pt;"> properties and a parcel of land, which includes a </font><font style="font-family:inherit;font-size:10pt;">50%</font><font style="font-family:inherit;font-size:10pt;"> ownership in a unconsolidated joint venture for </font><font style="font-family:inherit;font-size:10pt;">$68.8 million</font><font style="font-family:inherit;font-size:10pt;"> as of the date of acquisition, totaling approximately </font><font style="font-family:inherit;font-size:10pt;">4.9</font><font style="font-family:inherit;font-size:10pt;"> million square feet of GLA that were </font><font style="font-family:inherit;font-size:10pt;">93%</font><font style="font-family:inherit;font-size:10pt;"> leased as of the date of acquisition. </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;">In addition, at the time the Duke Acquisition was announced, </font><font style="font-family:inherit;font-size:10pt;">31</font><font style="font-family:inherit;font-size:10pt;"> of the Duke Assets valued at </font><font style="font-family:inherit;font-size:10pt;">$1.3 billion</font><font style="font-family:inherit;font-size:10pt;"> were subject to rights of first offer and/or rights of first refusal in favor of unrelated third parties (the &#8220;ROFO/ROFR Assets&#8221;). As of </font><font style="font-family:inherit;font-size:10pt;">June 30, 2017</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">11</font><font style="font-family:inherit;font-size:10pt;"> of the ROFO/ROFR Assets valued at </font><font style="font-family:inherit;font-size:10pt;">$494.9 million</font><font style="font-family:inherit;font-size:10pt;"> had been exercised by unrelated third parties. Of the remaining Duke Assets, </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> properties closed in </font><font style="font-family:inherit;font-size:10pt;">July 2017</font><font style="font-family:inherit;font-size:10pt;"> for an aggregate purchase price of </font><font style="font-family:inherit;font-size:10pt;">$131.7 million</font><font style="font-family:inherit;font-size:10pt;"> totaling approximately </font><font style="font-family:inherit;font-size:10pt;">245,000</font><font style="font-family:inherit;font-size:10pt;"> square feet of GLA. The remaining parcel of land for </font><font style="font-family:inherit;font-size:10pt;">$5.1 million</font><font style="font-family:inherit;font-size:10pt;"> is expected to close in the second half of 2017. See </font><font style="font-family:inherit;font-size:10pt;">Note 3 - Investments in Real Estate</font><font style="font-family:inherit;font-size:10pt;"> for additional details. </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;">$6.8 billion</font><font style="font-family:inherit;font-size:10pt;">, including the Duke Acquisition, to create a portfolio of MOBs and other healthcare assets consisting of approximately </font><font style="font-family:inherit;font-size:10pt;">24.0 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;">June 30, 2017</font><font style="font-family:inherit;font-size:10pt;">, approximately </font><font style="font-family:inherit;font-size:10pt;">97.0%</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;">33</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;">19%</font><font style="font-family:inherit;font-size:10pt;"> of our total GLA as of </font><font style="font-family:inherit;font-size:10pt;">June 30, 2017</font><font style="font-family:inherit;font-size:10pt;">. Approximately </font><font style="font-family:inherit;font-size:10pt;">93%</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 Atlanta, Boston, Dallas, Houston and Indianapolis 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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