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OHI Reports Q1-14

|Includes:Omega Healthcare Investors, Inc (OHI)

Two notes - (1) OHI has yet to release its earnings supplement for Q1-14. Data that is currently lacking has x's in the data. For the debt ratios which end in x - the lacking data is replaced with a z. (2) I have underlined the data where there were important changes. Since it is the changes that are important - I will start with the text from the Q4-13 release.

Omega Healthcare Investors (NYSE:OHI) Reports Normalized FFO of $0.65 vs. $0.60 in Q4-12
Omega Healthcare Investors reported Q4-13 FFO of $79.881 million ($0.65/share with 123.395 million shares outstanding) compared to $61.429 million ($0.55/share with 112.329 million shares outstanding) in Q4-12. Adjusted or normalized FFO was $79.851 million ($0.6471/share) compared to $64.876 million ($0.6043/share) in Q4-12. Normalized FAD for the quarter was $72.320 million or $0.5861/share. Revenues rose to $111.137 million from $95.012 million in Q4-12. Net income available to common stockholders was $47.206 million ($0.38/share) compared to $33.923 million ($0.30/share) in Q4-12. OHI gave 2014 AFAD/share guidance of $2.44 to $2.47. OHI gave 2014 adjusted FFO/share guidance of $2.69 to $2.72.
Total debt/book was 60.9% while adjusted debt/market cap was 35.2%. Annualized adjusted EBITDA / total interest expense ratio was 4.1x. The adjusted total debt / adjusted pro forma annualized EBITDA ratio was 4.3x. Mortgage notes were $7.281 million of OHI's $111.137 million in Q4-13 revenue - or 6.55% of OHI's revenues. With Total assets of $3,462 million, OHI's $241 million in loans receivable were 6.97% of total investments. Total assets grew from $2,982.005 million at the end of 2012 - an increase of 16.10%. For the three months ending Sept 30, 2013 (the latest data available), Medicaid was 54.1% of the revenue mix; Medicare/Insurance was 37.6%; and private pay was 8.3%.

Omega Healthcare Investors (OHI) Reports Normalized FFO of $0.68 vs. $0.62 in Q1-13
Omega Healthcare Investors reported Q4-13 FFO of $84.390 million ($0.68/share with 124.822 million shares outstanding) compared to $70.079 million ($0.62/share with 113.522 million shares outstanding) in Q1-13. Adjusted or normalized FFO was $88.772 million ($0.7112/share) compared to $71.665 million ($0.6313/share) in Q1-13. Normalized FAD for the quarter was $72.3xx million or $0.58xx/share. Revenues rose to $121.001 million from $101.761 million in Q1-13. Net income available to common stockholders was $55.829 million ($0.45/share) compared to $38.120 million ($0.34/share) in Q1-13. OHI gave 2014 AFAD/share guidance of $2.48 to $2.51. OHI gave 2014 adjusted FFO/share guidance of $2.74 to $2.77. OHI gave 2014 FFO/share guidance of $2.66 to $2.69.
Total debt/book was 60.x% while adjusted debt/market cap was 35.x%. Annualized adjusted EBITDA / total interest expense ratio was 4.zx. The adjusted total debt / adjusted pro forma annualized EBITDA ratio was 4.zx. Mortgage notes were $9.326 million of OHI's $121.001 million in Q1-14 revenue - or 7.71% of OHI's revenues. With Total assets of $3.578 million, OHI's $354 million in loans receivable were 9.89% of total investments. During the quarter, OHI entered into a $112.5 million first mortgage loan with an existing operator that bears interest at 9.5%. Total assets grew to $3,578.925 million at the end of Q1-13 from $3.462.216 million at the start of the year - an increase of 3.37%. For the three months ending December 30, 2013 (the latest data available), Medicaid was 54.2% of the revenue mix; Medicare/Insurance was 37.5%; and private pay was 8.3%.

Summation - The good news is that 2014 guidance increases, and the size of the increase was significant. The bad news - the increase may be due to increases in risky mortgage income.

Disclosure: I am long OHI.

Stocks: OHI