2017 Q2 Form 10-Q Financial Statement

#000150370717000011 Filed on May 12, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2017 Q1 2016 Q1
Revenue $68.59M $37.12M $48.79M
YoY Change 0.83% -23.91% 331.17%
Cost Of Revenue $38.23M
YoY Change
Gross Profit $30.36M
YoY Change
Gross Profit Margin 44.26%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $19.85M $24.92M $11.82M
YoY Change 47.82% 110.76% 601.66%
% of Gross Profit 65.39%
Operating Expenses
YoY Change
Operating Profit
YoY Change
Interest Expense $14.76M $14.03M $8.483M
YoY Change 13.19% 65.37% 415.06%
% of Operating Profit
Other Income/Expense, Net $28.00K
YoY Change
Pretax Income -$14.49M -$21.39M -$17.25M
YoY Change 38.82% 23.99% 874.8%
Income Tax $15.00K $26.00K $7.100M
% Of Pretax Income
Net Earnings -$21.59M -$27.08M -$38.30M
YoY Change -22.52% -29.29% 663.8%
Net Earnings / Revenue -31.48% -72.95% -78.5%
Basic Earnings Per Share
Diluted Earnings Per Share
COMMON SHARES
Basic Shares Outstanding 186.0M shares 185.9M shares 180.7M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q2 2017 Q1 2016 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $135.6M $160.4M $179.2M
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 $22.11M $22.11M $22.11M
YoY Change 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments $345.9M $355.8M
YoY Change
Other Assets
YoY Change
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $2.942B $2.985B $2.607B
YoY Change 14.75% 14.49% 131.85%
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 $1.844B $1.843B $1.256B
YoY Change 46.85% 46.82% 557.83%
SHAREHOLDERS EQUITY
Retained Earnings -$591.4M -$538.5M -$284.6M
YoY Change 72.44% 89.19% 314.69%
Common Stock $1.683B $1.676B $1.631B
YoY Change 2.29% 2.81% 62.91%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.092B $1.136B $1.346B
YoY Change
Total Liabilities & Shareholders Equity $2.942B $2.985B $2.607B
YoY Change 14.75% 14.49% 131.85%

Cashflow Statement

Concept 2017 Q2 2017 Q1 2016 Q1
OPERATING ACTIVITIES
Net Income -$21.59M -$27.08M -$38.30M
YoY Change -22.52% -29.29% 663.8%
Depreciation, Depletion And Amortization $19.85M $24.92M $11.82M
YoY Change 47.82% 110.76% 601.66%
Cash From Operating Activities $2.986M
YoY Change
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities -$2.634M $0.00
YoY Change -100.0%
Cash From Investing Activities -$116.7M
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $8.603M $2.265M
YoY Change 279.82% -101.84%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $48.69M
YoY Change
NET CHANGE
Cash From Operating Activities $2.986M
Cash From Investing Activities -$116.7M
Cash From Financing Activities $48.69M
Net Change In Cash -$65.04M
YoY Change
FREE CASH FLOW
Cash From Operating Activities $2.986M
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:justify;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:justify;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, which the Company defines as assisted living (&#8220;ALF&#8221;), memory care (&#8220;MCF&#8221;), skilled nursing (&#8220;SNF&#8221;), independent living (&#8220;ILF&#8221;) facilities and continuing care retirement communities (&#8220;CCRC&#8221;), which may have independent living, assisted living, skilled nursing and memory care available on one campus. The Company also invests in other healthcare property types, including medical office buildings (&#8220;MOB&#8221;), hospitals, rehabilitation facilities and ancillary healthcare services businesses. The Company&#8217;s investments are predominantly in the United States, but it also selectively makes international investments. 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 </font><font style="font-family:inherit;font-size:10pt;">year ended</font><font style="font-family:inherit;font-size:10pt;"> 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:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s equity investments are generally healthcare properties, which are either structured as net leases to healthcare operators or operated through management agreements with independent third-party operators, where applicable through the REIT Investment Diversification and Empowerment Act of 2007 (&#8220;RIDEA&#8221;) structures that permit the Company, through taxable REIT subsidiaries (&#8220;TRS&#8221;), to have direct exposure to resident fee income and incur related operating expenses. The Company&#8217;s debt investments generally consist of first mortgage loans and mezzanine loans. The Company&#8217;s real estate securities investments may include commercial mortgage-backed securities, or CMBS, and other securities backed primarily by loans secured by healthcare properties. Refer to Note 6. &#8220;Healthcare-Related Securities&#8221; and Note 13. &#8220;Segment Reporting&#8221; for further discussion.</font></div><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;">The Company is externally managed and has </font><font style="font-family:inherit;font-size:10pt;">no</font><font style="font-family:inherit;font-size:10pt;"> employees. Prior to January 11, 2017, the Company was managed by an affiliate of NorthStar Asset Management Group Inc. (NYSE: NSAM) (&#8220;NSAM&#8221;). Effective January 10, 2017, NSAM completed its previously announced mergers with Colony Capital, Inc. (&#8220;Colony&#8221;), NorthStar Realty Finance Corp. (&#8220;NorthStar Realty&#8221;) and Colony NorthStar, Inc. (&#8220;Colony NorthStar&#8221;), a wholly-owned subsidiary of NSAM, which the Company refers to as the mergers, with Colony NorthStar surviving the mergers and succeeding NSAM as the Company&#8217;s sponsor (the &#8220;Sponsor&#8221;). As a result of the mergers, the Sponsor became an internally-managed equity REIT, with a diversified real estate and investment management platform and publicly-traded on the NYSE under the ticker symbol &#8220;CLNS.&#8221; CNI NSHC Advisors, LLC, as successor to NSAM J-NSHC Ltd, or the Advisor, is now a subsidiary of Colony NorthStar. The Advisor manages the Company&#8217;s day-to-day operations pursuant to an advisory agreement. The mergers had no material impact on the Company&#8217;s operations.</font></div><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;">Colony NorthStar manages capital on behalf of its stockholders, as well as institutional and retail investors in private funds, non-traded and traded REITs and registered investment companies.</font></div><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;"> Substantially all of 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 NorthStar Healthcare Income Advisor, LLC (the &#8220;Prior Advisor&#8221;) 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;">$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;">$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 accompanying consolidated balance sheets as of </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;"> and December 31, </font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;">. As the Company issued shares, it contributed substantially all of the proceeds from its continuous, public offerings to the Operating Partnership as a capital contribution. As of </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2017</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;">99.99%</font><font style="font-family:inherit;font-size:10pt;">.</font></div><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;">The Company&#8217;s charter authorizes the issuance of up to </font><font style="font-family:inherit;font-size:10pt;">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;">$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;">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;">$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:justify;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;">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. The Initial Offering (including </font><font style="font-family:inherit;font-size:10pt;">8.6 million</font><font style="font-family:inherit;font-size:10pt;"> shares reallocated from the Initial DRP) was completed on </font><font style="font-family:inherit;font-size:10pt;">February 2, 2015</font><font style="font-family:inherit;font-size:10pt;"> by raising gross proceeds of </font><font style="font-family:inherit;font-size:10pt;">$1.1 billion</font><font style="font-family:inherit;font-size:10pt;">. All of the shares initially registered for the Initial Offering were issued.</font></div><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;">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 U.S. 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 included 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 stopped accepting subscriptions for the Follow-on Offering on December 17, 2015 and all of the shares initially registered (including </font><font style="font-family:inherit;font-size:10pt;">$159.5 million</font><font style="font-family:inherit;font-size:10pt;"> of shares reallocated from the Follow-on DRP) for the Follow-on Offering were issued on or before January 19, 2016. The Company registered an additional </font><font style="font-family:inherit;font-size:10pt;">30.0 million</font><font style="font-family:inherit;font-size:10pt;"> shares to be offered pursuant to its DRP beyond the completion of the Follow-on Offering and continues to offer such shares.</font></div><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;">The Initial Primary Offering and the Follow-on Primary Offering are collectively referred to as the Primary Offering and the distribution reinvestment plan, including but not limited to, the Initial DRP and Follow-on DRP, are collectively referred to as the DRP. Additionally, the Primary Offering and the Initial DRP and Follow-on DRP are collectively referred to as the Offering.</font></div><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;">The Company retained NorthStar Securities, LLC (the &#8220;Dealer Manager&#8221;), formerly a subsidiary of NorthStar Realty that became a subsidiary of NSAM upon completion of the spin-off, to serve as the dealer manager for the Primary Offering.</font></div><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;">From inception through </font><font style="font-family:inherit;font-size:10pt;">May&#160;5, 2017</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;">$1.9 billion</font><font style="font-family:inherit;font-size:10pt;">, including </font><font style="font-family:inherit;font-size:10pt;">$154.8 million</font><font style="font-family:inherit;font-size:10pt;"> in DRP proceeds.</font></div></div>
CY2017Q1 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:justify;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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