EXH. 99 PRESS RELEASE DATED OCTOBER 28, 2004
Published on October 29, 2004
Exhibit 99
ENTERTAINMENT PROPERTIES ANNOUNCES RECORD THIRD
QUARTER RESULTS
Kansas City, MO, October 28, 2004, -- Entertainment Properties Trust (NYSE:EPR),
today reported financial results for the third quarter ended September 30, 2004.
Total revenues increased 42% to $32.6 million for the quarter as compared to
$23.0 million for the same quarter in 2003. Net income available to common
shareholders increased 69% to $14.0 million as compared to $8.3 million in the
same quarter last year. Net income available to common shareholders on a diluted
per share basis increased 24% to $0.57 per share from $0.46 per share in the
same quarter last year.
Funds from operations (FFO) on a fully diluted basis increased 56% to $19.8
million from $12.7 million for the same quarter last year. On a fully diluted
basis, FFO per share increased 18% to $0.80 per share from $0.68 per share for
the same quarter last year.
David Brain, President and Chief Executive Officer stated, "We are pleased to
once again report double-digit increases in our operations. The continued strong
growth of the Company is evident throughout our financial results."
Real Estate Investments
During the third quarter of 2004, the Company completed $36.6 million in real
estate investments including two megaplex theatre acquisitions totaling
approximately $19.5 million, consisting of the Grand Prairie Theatre located in
Peoria, Illinois, leased to Rave Motion Pictures, and the Palace Theatre in
Lafayette, Louisiana leased to Southern Theatres. Lease terms for both theatres
include a 20 year base term with optional extension periods all on a triple-net
basis. The Company invested approximately $17.1 million in construction funding
and land purchase for megaplex theatre and retail projects expected to be opened
during 2004 and 2005.
Real Estate Dispositions
On September 30, 2004, the Company sold its 100% interest in the Hawaiian
Adventure Waterpark in Garland, Texas at net book value of approximately $3.1
million. Accordingly, no gain or loss was recorded on the sale.
As previously announced, the Company's Board of Trustees declared a cash
dividend of $0.5625 per common share for the third quarter, which was paid on
October 15, 2004 to common shareholders of record on September 30, 2004. The
third quarter cash dividend represents an annualized dividend amount of $2.25
per common share as compared to $2.00 for the prior year. The Company also
declared and paid a third quarter cash dividend of $0.59375 on the 9.5% Series A
Preferred Shares.
On September 20, 2004, 100% of the preferred interest in EPT Gulf States, LLC
was converted to 857,145 restricted common shares of the Company. As a result,
$15 million of minority interest in a consolidated subsidiary was converted to
common shares and additional paid-in-capital. The shares were subsequently
registered with the SEC under the Securities Act of 1933.
ENTERTAINMENT PROPERTIES TRUST
Unaudited Financial Data
(in thousands except per share data)
ENTERTAINMENT PROPERTIES TRUST
Reconciliation of Net Income Available to Common Shareholders
to Funds From Operations (A)
(in thousands except per share data)
(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)
AS OF AS OF
SEPTEMBER 30, 2004 DECEMBER 31, 2003
(unaudited)
ASSETS
Rental properties, net $1,078,339 $887,143
Property under development 46,520 12,953
Investment in joint ventures 2,575 1,336
Cash and cash equivalents 10,252 29,284
Restricted cash 12,863 7,738
Intangibles, net 10,624 693
Other assets 40,046 26,771
---------- --------
Total assets $1,201,219 $965,918
========== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Common dividends payable $ 14,023 $ 9,829
Preferred dividends payable 1,366 1,366
Unearned rents 641 895
Other liabilities 7,759 2,864
Long term debt 589,127 506,555
---------- --------
Total liabilities 612,916 521,509
Minority interest 6,144 21,630
Shareholders' equity 582,159 422,779
---------- --------
Total liabilities and shareholders' $1,201,219 $965,918
equity ========== ========
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 $1.2 billion 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 W. 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, 2003
and its prospectus filed under Rule 424(b) of the SEC on October 14, 2004.
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