EXHIBIT 99
Published on July 24, 2003
Exhibit 99
Entertainment Properties Reports Record Second Quarter Results
Kansas City, MO, July 23, 2003, -- Entertainment Properties Trust (NYSE:EPR),
today reported financial results for the second quarter ended June 30, 2003. The
Company reported record second quarter revenues, net income and funds from
operations (FFO).
Total revenues increased 29% to $21.9 million for the quarter as compared to
$17.0 million for the same quarter in 2002. Net income available to common
shareholders increased 11% to $7.5 million as compared to $6.7 million in the
same quarter last year. Net income on a diluted per share basis increased 10% to
$0.43 per share from $0.39 per share in the same quarter last year. FFO on a
fully diluted basis increased 14% to $11.7 million from $10.3 million for the
same quarter last year. On a fully diluted basis, FFO per share increased 12% to
$0.64 per share from $0.57 per share for the same quarter last year.
Commenting on today's news, David Brain, Chief Executive Officer said "The
double-digit growth in revenues and earnings reinforces our conviction about our
business plan and our positive outlook for future results".
As previously announced, the Company's Board of Trustees declared a cash
dividend of $0.50 per common share for the second quarter, which was paid on
July 15, 2003 to common shareholders of record on June 30, 2003. The second
quarter cash dividend represents an annualized dividend amount of $2.00 per
common share as compared to $1.90 for the prior year. The Company also declared
and paid a second quarter cash dividend of $0.59375 on the 9.5% Series A
Preferred Shares.
Consistent with the Securities and Exchange Commission's Regulation FD,
Entertainment Properties Trust publicly comments on earnings expectations from
time to time within the context of its regular earnings press releases.
Management reiterates its previous expectations that FFO per fully diluted
common share for the full year 2003 should range from $2.60 to $2.70, which
would represent an increase of approximately 10% to 14% compared to 2002 FFO of
$2.37 per common share.
ENTERTAINMENT PROPERTIES TRUST
Unaudited Financial Data
(in thousands except per share data)
Three months ended Six months ended
June 30, June 30,
2003 2002 2003 2002
--------------------- --------------------
Rental revenue $21,944 $16,989 $42,402 $32,785
Other income - - 587 -
--------------------- --------------------
Total Income 21,944 16,989 42,989 32,785
Property operating
expense 83 75 178 146
General and
administrative
expense, excluding
amortization of
non-vested shares
below 1,150 567 2,006 1,089
Interest expense 7,477 5,883 14,711 11,616
Depreciation and
amortization 3,857 3,098 7,544 5,846
Amortization of
non-vested shares 232 150 463 300
--------------------- --------------------
Income before
minority interest
and income from
joint venture 9,145 7,216 18,087 13,788
Equity in income
from joint venture 97 385 188 760
Minority interest (375) (375) (750) (445)
--------------------- --------------------
Net income $ 8,867 $ 7,226 $17,525 $14,103
Preferred dividend
requirements (1,366) (494) (2,731) (494)
--------------------- --------------------
Net income available
to common
shareholders $ 7,501 $ 6,732 $14,794 $13,609
===================== ====================
Basic net income per
common share $0.44 $0.39 $0.86 $0.82
Diluted net income
per common share $0.43 $0.39 $0.85 $0.81
ENTERTAINMENT PROPERTIES TRUST
Reconciliation of Net Income Available to Common Shareholders
to Funds From Operations (A)
(in thousands except per share data)
Three months ended Six months ended
June 30, June 30,
FUNDS FROM OPERATIONS: 2003 2002 2003 2002
--------------------- --------------------
Net income available to
common shareholders $ 7,051 $ 6,732 $14,794 $13,609
Add: Real estate
depreciation 3,813 3,056 7,454 5,787
Add: Share of joint
venture depreciation 32 137 64 275
--------------------- --------------------
Basic funds from
operations $11,346 $ 9,925 $22,312 $19,671
--------------------- --------------------
Add: minority interest in
net income 375 375 750 445
--------------------- --------------------
Diluted funds from
operations $11,721 $10,300 $23,062 $20,116
===================== ====================
FFO per common share:
Basic $0.66 $0.58 $1.30 $1.18
Diluted $0.64 $0.57 $1.26 $1.16
Shares used for
computation (in
thousands): Basic 17,137 17,120 17,106 16,622
Diluted 18,382 18,155 18,332 17,286
(A) Funds from operations (FFO) is a widely used measure of the operating
performance of real estate companies and is provided here as a supplemental
measure to Generally Accepted Accounting Principles (GAAP) net income available
to common shareholders and earning per share. FFO is defined as net income
(computed in accordance with GAAP), excluding gains and losses from sales of
depreciable operating properties, plus depreciation and amortization, and after
adjustments for unconsolidated partnerships, joint ventures and other
affiliates. Adjustments for unconsolidated partnerships, joint ventures and
other affiliates are calculated to reflect FFO on the same basis. FFO does not
represent cash flows from operations as defined by GAAP and is not indicative
that cash flows are adequate to fund all cash needs and is not to be considered
an alternative to net income or any other GAAP measure as a measurement of the
results of the Company's operations or the Company's cash flows or liquidity as
defined by GAAP.
ENTERTAINMENT PROPERTIES TRUST
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
As of As of
June 30, December 31,
2003 2002
----------- ------------
Assets
Rental properties, net $746,628 $679,937
Land held for development 14,751 12,985
Investments in joint venture 1,059 1,109
Cash and cash equivalents 21,982 10,091
Restricted cash 6,495 6,495
Accounts receivable from joint - 8,438
venture
Other assets 16,469 11,332
----------- ------------
Total assets $807,384 $730,387
=========== ============
Liabilities and Shareholders' Equity
Common dividends payable $ 8,647 $ 8,162
Preferred dividends payable 1,366 1,366
Unearned rent 682 4,036
Other liabilities 2,081 1,653
Long term debt 426,946 346,617
----------- ------------
Total liabilities 439,722 361,834
Minority interest 15,375 15,375
Shareholders' equity 352,287 353,178
----------- ------------
Total liabilities and
shareholders' equity $807,384 $730,387
=========== ============
About Entertainment Properties Trust
Entertainment Properties Trust is the only publicly traded real estate
investment trust (REIT) focused on the acquisition of high-quality real estate
assets leased to leading location-based entertainment operators. Since November
of 1997, EPR has acquired more than $700 million of properties. The Company's
common shares of beneficial interest trade on the New York Stock Exchange under
the ticker symbol EPR. Entertainment Properties Trust Company contact: Jon Weis,
30 Pershing Road, Suite 201, Kansas City, Missouri 64108; 888/EPR-REIT; fax:
816/472-5794. The Company website is at www.eprkc.com.
Safe Harbor Statement: This press release includes forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995, identified by
such words as "will be," "intend," "continue," "believe," "may," "expect,"
"hope," "anticipate," or other comparable terms. The Company's actual financial
condition, results of operations and funds from operations may vary materially
from those contemplated by such forward-looking statements. A discussion of the
factors that could cause actual results to differ materially from those
forward-looking statements is contained in the Company's SEC filings, including
the company's annual report on Form 10-K for the year ended December 31, 2002.