2015 Q2 Form 10-Q Financial Statement

#000150370715000046 Filed on May 15, 2015

View on sec.gov

Income Statement

Concept 2015 Q2 2015 Q1 2014 Q1
Revenue $21.52M $11.32M $4.447M
YoY Change 269.95% 154.44%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $4.697M $1.685M $699.0K
YoY Change 426.57% 141.06%
% of Gross Profit
Operating Expenses
YoY Change
Operating Profit
YoY Change
Interest Expense $3.431M $1.647M $611.0K
YoY Change 328.88% 169.56%
% of Operating Profit
Other Income/Expense, Net $3.846M
YoY Change 63081.64%
Pretax Income -$20.53M -$1.770M -$3.438M
YoY Change 8143.78% -48.52%
Income Tax -$200.0K -$300.0K $0.00
% Of Pretax Income
Net Earnings -$25.67M -$5.014M -$3.438M
YoY Change 4601.47% 45.84% 56371.75%
Net Earnings / Revenue -119.28% -44.31% -77.31%
Basic Earnings Per Share
Diluted Earnings Per Share
COMMON SHARES
Basic Shares Outstanding 117.1M shares 111.6M shares 17.45M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q2 2015 Q1 2014 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $220.0M $466.0M $75.54M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill $13.93M
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $1.644B $1.124B $246.3M
YoY Change 356.79% 356.54%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities
YoY Change
LONG-TERM LIABILITIES
Long-Term Debt
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities
Total Long-Term Liabilities
Total Liabilities $624.5M $190.9M $67.36M
YoY Change 841.72% 183.35%
SHAREHOLDERS EQUITY
Retained Earnings -$114.0M -$68.64M -$9.844M
YoY Change 661.97% 597.25%
Common Stock $1.128B $1.001B $187.7M
YoY Change 266.98% 433.31%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.014B $932.3M $177.8M
YoY Change
Total Liabilities & Shareholders Equity $1.644B $1.124B $246.3M
YoY Change 356.79% 356.54%

Cashflow Statement

Concept 2015 Q2 2015 Q1 2014 Q1
OPERATING ACTIVITIES
Net Income -$25.67M -$5.014M -$3.438M
YoY Change 4601.47% 45.84% 56371.75%
Depreciation, Depletion And Amortization $4.697M $1.685M $699.0K
YoY Change 426.57% 141.06%
Cash From Operating Activities
YoY Change
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities $10.90M -$1.046M
YoY Change -1142.07%
Cash From Investing Activities
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$123.2M -$89.59M
YoY Change 37.57% -199177.78%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities
YoY Change
NET CHANGE
Cash From Operating Activities
Cash From Investing Activities
Cash From Financing Activities
Net Change In Cash
YoY Change
FREE CASH FLOW
Cash From Operating Activities
Capital Expenditures
Free Cash Flow
YoY Change

Facts In Submission

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Business and Organization</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">NorthStar Healthcare Income, Inc. (the &#8220;Company&#8221;) was formed to acquire, originate and asset manage a diversified portfolio of equity, debt and securities investments in healthcare real estate, directly or through joint ventures with a focus on the mid-acuity senior housing sector, predominantly in the United States, which the Company defines as assisted living (&#8220;ALF&#8221;), memory care (&#8220;MCF&#8221;), skilled nursing (&#8220;SNF&#8221;) and independent living (&#8220;ILF&#8221;) facilities that have an emphasis on private pay patients although many of these facilities may also rely on public pay patients. The Company also invests in equity and debt investments in other healthcare property types, including medical office buildings (&#8220;MOB&#8221;), continuing care retirement communities (&#8220;CCRC&#8221;), hospitals and rehabilitation facilities. The Company may also invest internationally. In addition, the Company may acquire healthcare-related securities. The Company was formed in October 2010 as a Maryland corporation and commenced operations in February 2013. The Company elected to be taxed as a real estate investment trust (&#8220;REIT&#8221;) under the Internal Revenue Code of 1986, as amended (the &#8220;Internal Revenue Code&#8221;), commencing with the taxable year ended December 31, 2013. The Company conducts its operations so as to continue to qualify as a REIT for U.S. federal income tax purposes.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s equity investments are generally in the form of lease or management transactions whereby the Company purchases a property and enters into a long-term lease or management agreement with an operator responsible for contractual payments to the Company. The Company enters into structures permitted by the REIT Investment Diversification and Empowerment Act of 2007 (&#8220;RIDEA&#8221;), whereby it participates directly in the operational cash flow of a property. The Company&#8217;s debt investments generally consist of first mortgage loans, subordinate mortgages, mezzanine loans, preferred equity investments and participations in such investments. </font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company is externally managed and has no employees. Prior to June 30, 2014, the Company was managed by an affiliate of NorthStar Realty Finance Corp. (NYSE: NRF) (&#8220;NorthStar Realty&#8221;). Effective June&#160;30, 2014, NorthStar Realty spun-off its asset management business into a separate publicly traded company, NorthStar Asset Management Group Inc. (NYSE: NSAM) (the &#8220;Sponsor&#8221;). The Sponsor and its affiliates provide asset management and other services to the Company, NorthStar Realty, other sponsored public non-traded companies and any other companies the Sponsor and its affiliates may manage in the future (collectively, the &#8220;NSAM Managed Companies&#8221;), both in the United States and internationally. Concurrent with the spin-off, affiliates of the Sponsor entered into a new advisory agreement with the Company and each of the other NSAM Managed Companies. Pursuant to the Company&#8217;s advisory agreement, NSAM J-NSHC Ltd, an affiliate of the Sponsor (the &#8220;Advisor&#8221;), agreed to manage the day-to-day operations of the Company on terms substantially similar to those set forth in the Company&#8217;s prior advisory agreement with NorthStar Healthcare Income Advisor, LLC (the &#8220;Prior Advisor&#8221;). References to the &#8220;Prior Advisor&#8221; herein refer to the services performed by and fees paid and accrued to the Prior Advisor during the period prior to June 30, 2014. The spin-off of NorthStar Realty&#8217;s asset management business had no impact on the Company&#8217;s operations.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Substantially all the Company&#8217;s business is conducted through NorthStar Healthcare Income Operating Partnership, LP (the &#8220;Operating Partnership&#8221;). The Company is the sole general partner of the Operating Partnership. The limited partners of the Operating Partnership are the Prior Advisor and NorthStar Healthcare Income OP Holdings, LLC (the &#8220;Special Unit Holder&#8221;), each an affiliate of the Sponsor. The Prior Advisor invested </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$1,000</font><font style="font-family:inherit;font-size:10pt;"> in the Operating Partnership in exchange for common units and the Special Unit Holder invested </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$1,000</font><font style="font-family:inherit;font-size:10pt;"> in the Operating Partnership and was issued a separate class of limited partnership units (the &#8220;Special Units&#8221;), which are collectively recorded as non-controlling interests on the consolidated balance sheets as of </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;">. As the Company accepts subscriptions for shares, it contributes substantially all of the net proceeds from its continuous, public offering to the Operating Partnership as a capital contribution. As of </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;">, the Company&#8217;s limited partnership interest in the Operating Partnership was </font><font style="font-family:inherit;font-size:10pt;">99.9%</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s charter authorizes the issuance of up to </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">400.0 million</font><font style="font-family:inherit;font-size:10pt;"> shares of common stock with a par value of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$0.01</font><font style="font-family:inherit;font-size:10pt;"> per share and up to </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">50.0 million</font><font style="font-family:inherit;font-size:10pt;"> shares of preferred stock with a par value of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$0.01</font><font style="font-family:inherit;font-size:10pt;"> per share. The board of directors of the Company is authorized to amend its charter, without the approval of the stockholders, to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series that the Company has authority to issue.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company initially registered to offer up to </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">100.0 million</font><font style="font-family:inherit;font-size:10pt;"> shares pursuant to its primary offering to the public (the &#8220;Initial Primary Offering&#8221;) and up to </font><font style="font-family:inherit;font-size:10pt;">10.5 million</font><font style="font-family:inherit;font-size:10pt;"> shares pursuant to its distribution reinvestment plan (the &#8220;Initial DRP&#8221;), which are herein collectively referred to as the Initial Offering. In </font><font style="font-family:inherit;font-size:10pt;">December 2014</font><font style="font-family:inherit;font-size:10pt;">, the board of directors of the Company authorized the reallocation of </font><font style="font-family:inherit;font-size:10pt;">8.6 million</font><font style="font-family:inherit;font-size:10pt;"> shares available under the Initial DRP to the Initial Primary Offering. On </font><font style="font-family:inherit;font-size:10pt;">February 2, 2015</font><font style="font-family:inherit;font-size:10pt;">, the Company successfully completed its Initial Offering by raising </font><font style="font-family:inherit;font-size:10pt;">$1.1 billion</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On </font><font style="font-family:inherit;font-size:10pt;">February&#160;6, 2015</font><font style="font-family:inherit;font-size:10pt;">, the Company&#8217;s registration statement on Form S-11 was declared effective by the Securities and Exchange Commission (the &#8220;SEC&#8221;) for a follow-on public offering (the &#8220;Follow-on Offering&#8221;) of up to </font><font style="font-family:inherit;font-size:10pt;">$700.0 million</font><font style="font-family:inherit;font-size:10pt;"> which includes up to </font><font style="font-family:inherit;font-size:10pt;">$500.0 million</font><font style="font-family:inherit;font-size:10pt;"> in shares pursuant to its follow-on primary offering (the &#8220;Follow-on Primary Offering&#8221;) and up to </font><font style="font-family:inherit;font-size:10pt;">$200.0 million</font><font style="font-family:inherit;font-size:10pt;"> in shares pursuant to its follow-on distribution reinvestment plan (the &#8220;Follow-on DRP&#8221;). The Company reserves the right to reallocate shares of its common stock being offered between the Follow-on Primary Offering and the Follow-on DRP. The Company expects the Follow-on Offering to terminate on the earlier of </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> years following the effective date or once the maximum number of shares offered are sold. However, the board of directors may determine to terminate the Follow-on Offering at any time. The Company began raising capital from the Follow-on Offering at the end of February 2015.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Initial Primary Offering and the Follow-On Primary Offering are collectively referred to as the Primary Offering and the Initial DRP and the Follow-on DRP are collectively referred to as the DRP. Additionally, the Primary Offering and the DRP are collectively referred to as the Offering.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company retained NorthStar Realty Securities, LLC (the &#8220;Dealer Manager&#8221;), formerly a subsidiary of NorthStar Realty that became a subsidiary of the Sponsor upon completion of the spin-off, to serve as the dealer manager for the Primary Offering. </font></div><div style="line-height:120%;padding-top:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On February 11, 2013, the Company commenced operations by satisfying the minimum offering requirement in its Initial Primary Offering as a result of NorthStar Realty purchasing </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">222,223</font><font style="font-family:inherit;font-size:10pt;"> shares of common stock for </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$2.0 million</font><font style="font-family:inherit;font-size:10pt;">. From inception through </font><font style="font-family:inherit;font-size:10pt;">May&#160;11, 2015</font><font style="font-family:inherit;font-size:10pt;">, the Company raised total gross proceeds of </font><font style="font-family:inherit;font-size:10pt;">$1.2 billion</font><font style="font-family:inherit;font-size:10pt;">.</font></div></div>
CY2015Q1 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior period amounts have been reclassified in the consolidated financial statements to conform to current period presentation.</font></div></div>
CY2015Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that could affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates and assumptions.</font></div></div>

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