2018 Q2 Form 10-Q Financial Statement

#000150370718000010 Filed on May 15, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2018 Q1 2017 Q1
Revenue $72.78M $74.30M $37.12M
YoY Change 6.1% 100.16% -23.91%
Cost Of Revenue $47.73M $46.42M
YoY Change 24.84%
Gross Profit $25.05M $27.88M
YoY Change -17.5%
Gross Profit Margin 34.41% 37.52%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $27.49M $28.82M $24.92M
YoY Change 38.5% 15.66% 110.76%
% of Gross Profit 109.77% 103.38%
Operating Expenses
YoY Change
Operating Profit
YoY Change
Interest Expense $17.69M $17.04M $14.03M
YoY Change 19.84% 21.46% 65.37%
% of Operating Profit
Other Income/Expense, Net $28.00K
YoY Change
Pretax Income -$30.09M -$25.25M -$21.39M
YoY Change 107.67% 18.01% 23.99%
Income Tax $15.00K $15.00K $26.00K
% Of Pretax Income
Net Earnings -$34.09M -$33.67M -$27.08M
YoY Change 57.89% 24.33% -29.29%
Net Earnings / Revenue -46.85% -45.31% -72.95%
Basic Earnings Per Share
Diluted Earnings Per Share
COMMON SHARES
Basic Shares Outstanding 187.8M shares 187.2M shares 185.9M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2018 Q2 2018 Q1 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $52.21M $70.81M $160.4M
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 $21.39M $21.39M $22.11M
YoY Change -3.28% -3.28% 0.0%
Intangibles
YoY Change
Long-Term Investments $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 $2.381B $2.433B $2.985B
YoY Change -19.06% -18.5% 14.49%
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 $1.529B $1.531B $1.843B
YoY Change -17.11% -16.93% 46.82%
SHAREHOLDERS EQUITY
Retained Earnings -$843.2M -$793.3M -$538.5M
YoY Change 42.56% 47.32% 89.19%
Common Stock $1.691B $1.688B $1.676B
YoY Change 0.46% 0.69% 2.81%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $846.2M $895.2M $1.136B
YoY Change
Total Liabilities & Shareholders Equity $2.381B $2.433B $2.985B
YoY Change -19.06% -18.5% 14.49%

Cashflow Statement

Concept 2018 Q2 2018 Q1 2017 Q1
OPERATING ACTIVITIES
Net Income -$34.09M -$33.67M -$27.08M
YoY Change 57.89% 24.33% -29.29%
Depreciation, Depletion And Amortization $27.49M $28.82M $24.92M
YoY Change 38.5% 15.66% 110.76%
Cash From Operating Activities $7.269M $2.986M
YoY Change 143.44%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00 -$2.634M
YoY Change -100.0%
Cash From Investing Activities $28.28M -$116.7M
YoY Change -124.23%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $8.206M $8.603M
YoY Change -4.61% 279.82%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$25.95M $48.69M
YoY Change -153.28%
NET CHANGE
Cash From Operating Activities $7.269M $2.986M
Cash From Investing Activities $28.28M -$116.7M
Cash From Financing Activities -$25.95M $48.69M
Net Change In Cash $9.599M -$65.04M
YoY Change -114.76%
FREE CASH FLOW
Cash From Operating Activities $7.269M $2.986M
Capital Expenditures
Free Cash Flow
YoY Change

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CY2018Q1 us-gaap Equity Method Investment Summarized Financial Information Assets
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717031000 USD
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0 USD
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0 USD
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0 USD
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545048000 USD
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545048000 USD
CY2018Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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0 USD
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0 USD
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0 USD
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522933000 USD
CY2017Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
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0 USD
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74000 USD
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189000 USD
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TenantImprovements
9284000 USD
CY2017Q1 us-gaap Tenant Reimbursements
TenantReimbursements
28747000 USD
CY2018Q1 us-gaap Tenant Reimbursements
TenantReimbursements
32807000 USD
CY2017Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
185650147 shares
CY2018Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
187072856 shares
CY2018Q1 us-gaap Nature Of Operations
NatureOfOperations
<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. </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 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: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 Company&#8217;s 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, 2018</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</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, 2018</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:6px;padding-top:6px;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 completed its initial public offering (the &#8220;Initial Offering&#8221;) on February 2, 2015 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;">, including </font><font style="font-family:inherit;font-size:10pt;">108.6 million</font><font style="font-family:inherit;font-size:10pt;"> shares issued in its initial primary offering (the &#8220;Initial Primary Offering&#8221;) and </font><font style="font-family:inherit;font-size:10pt;">2.0 million</font><font style="font-family:inherit;font-size:10pt;"> shares issued pursuant to its distribution reinvestment plan (the &#8220;DRP&#8221;). In addition, the Company completed its follow-on offering (the &#8220;Follow-On Offering&#8221;) on January 19, 2016 by raising gross proceeds of </font><font style="font-family:inherit;font-size:10pt;">$700.0 million</font><font style="font-family:inherit;font-size:10pt;">, including </font><font style="font-family:inherit;font-size:10pt;">64.9 million</font><font style="font-family:inherit;font-size:10pt;"> shares issued in its follow-on primary offering (the &#8220;Follow-on Primary Offering&#8221;) and </font><font style="font-family:inherit;font-size:10pt;">4.2 million</font><font style="font-family:inherit;font-size:10pt;"> shares issued pursuant to the DRP. The Company refers to its Initial Primary Offering and its Follow-on Primary Offering collectively as the &#8220;Primary Offering&#8221; and its Initial Offering and Follow-On Offering collectively as the &#8220;Offering.&#8221; In December 2015, 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 the DRP and continues to offer such shares. From inception through </font><font style="font-family:inherit;font-size:10pt;">May&#160;10, 2018</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;">$2.0 billion</font><font style="font-family:inherit;font-size:10pt;">, including </font><font style="font-family:inherit;font-size:10pt;">$210.1 million</font><font style="font-family:inherit;font-size:10pt;"> in DRP proceeds.</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. The Company is sponsored by Colony NorthStar, Inc. (NYSE: CLNS) (&#8220;Colony NorthStar&#8221; or the &#8220;Sponsor&#8221;), which was formed as a result of the mergers of NorthStar Asset Management Group Inc.(&#8220;NSAM&#8221;), its prior sponsor, with Colony Capital, Inc. (&#8220;Colony&#8221;) and NorthStar Realty Finance Corp. (&#8220;NorthStar Realty&#8221;) in January 2017. Following the mergers, the Sponsor became an internally-managed equity REIT, with a diversified real estate and investment management platform. 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. The Company&#8217;s advisor, CNI NSHC Advisors, LLC (the &#8220;Advisor&#8221;), is a subsidiary of Colony NorthStar and manages its day-to-day operations pursuant to an advisory agreement.</font></div></div>
CY2018Q1 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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