SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
Amendment No. 1
[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1998.
Commission File Number 1-13089
U.S. RESTAURANT PROPERTIES, INC.
(Exact name of registrant as specified in its charter)
MARYLAND 75-2687420
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
5310 Harvest Hill Rd., Suite 270, LB 168, Dallas, Texas 75230
(Address of principal executive offices, including zip code)
972-387-1487
(Registrant's telephone number, including area code)
SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:
<TABLE>
<CAPTION>
Title of each class Name of each exchange on which registered
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<S> <C>
Common Stock, par value $0.001 per share New York Stock Exchange
$1.93 Series A Cumulative Convertible Preferred Stock New York Stock Exchange
</TABLE>
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
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Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. X
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The aggregate market value of the Common Stock (based upon the closing
price of the Common Stock on March 12, 1999, on the New York Stock Exchange)
held by non-affiliates of the Registrant was $260,047,114.
As of March 12, 1999, there were 14,347,427 shares outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Certain information in the Registrant's definitive proxy statement to be filed
with the Securities and Exchange Commission related to the Company's 1998 Annual
Meeting of Stockholders is incorporated by reference in Part III hereof.
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EXPLANATORY NOTE
U.S. Restaurant Properties, Inc., a Maryland corporation hereby amends its
Annual Report on Form 10-K for the fiscal year ended December 31, 1998 as
amended. The schedule of selected financial data under caption "Item 6. Selected
Financial Data" is hereby amended in its entirety to read as follows:
ITEM 6. SELECTED FINANCIAL DATA.
The following information should be read in conjunction with the Company's
consolidated financial statements and notes thereto.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
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(IN THOUSANDS, EXCEPT PER UNIT/SHARE AND PROPERTY DATA)
1994 1995 1996 1997 1998
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<S> <C> <C> <C> <C> <C>
STATEMENT OF INCOME:
Revenues
Rental income............................. $ 6,340 $ 7,540 $ 16,346 $ 32,925 $ 54,501
Interest income........................... 94 70 194 1,091 2,855
Amortization of unearned income on
direct financing leases................ 2,453 2,240 1,978 1,568 1,174
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Total revenues.............................. $ 8,887 $ 9,850 $ 18,518 $ 35,584 $ 58,530
Expenses:
Rent ..................................... 1,348 1,405 2,080 2,488 3,158
Depreciation and amortization ............ 1,361 1,541 3,978 9,415 15,753
General and administrative ............... 1,144 1,419 2,299 3,590 4,793
Interest expense ......................... 90 262 2,720 10,011 16,689
REIT conversion costs .................... -- -- -- 920 --
Termination of management contract ....... -- -- -- 19,220 12,047
Equity in net loss of affiliate .......... -- -- -- -- 317
Non-cash charge for impairment of
long lived assets ...................... 11 -- -- -- 127
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Total expenses ............................. $ 3,954 $ 4,627 $ 11,077 $ 45,644 $ 52,884
Gain on sale of property ................... -- -- 32 869 403
Minority interest in operating partnership.. -- -- -- (202) 58
Loss on early extinguishment of debt ....... -- -- -- -- (190)
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Net income (loss) .......................... $ 4,933 $ 5,223 $ 7,473 $ (9,393) $ 5,917
============ ============ ============= ============== ==============
Net income (loss) allocable to
Unitholders/Shareholders (1) ........... $ 4,834 $ 5,119 $ 7,325 $ (10,261) $ (1,185)
Weighted average units/shares outstanding (2):
Basic .................................. 6,953 6,957 8,984 11,693 13,325
Diluted ................................ 6,953 7,015 9,190 11,693 13,325
Earnings per unit/share (2):
Basic .................................. $ 0.70 $ 0.74 $ 0.82 $ (0.88) $ (0.09)
Diluted ................................ $ 0.70 $ 0.73 $ 0.80 $ (0.88) $ (0.09)
Dividends/distributions per unit/share (2) $ 1.07 $ 1.14 $ 1.25 $ 1.38 $ 1.57
BALANCE SHEET DATA:
Total assets ............................... $ 62,889 $ 71,483 $ 177,418 $ 359,149 $ 604,169
Line of credit and long term debt .......... -- 10,931 69,486 129,196 342,112
Capitalized lease obligations .............. 775 563 362 170 63
General partners' capital .................. 1,308 1,241 1,163 N/A N/A
Limited partners' capital .................. 60,361 58,071 103,120 N/A N/A
Stockholders' equity ....................... N/A N/A N/A 205,412 209,775
Minority interest .......................... N/A N/A N/A 19,536 29,567
Other Data:
Funds From Operations (FFO) (3)............. $ 7,638 $ 8,314 $ 13,111 $ 1,524 $ 18,639
Cash flow from operating activities ........ $ 6,990 $ 9,288 $ 13,852 $ 19,334 $ 41,002
Cash flow from (used in) investing activities $ -- $(12,039) $(100,978) $ (174,040) $(246,488)
Cash flow from (used in) financing activities $ (7,569) $ 2,077 $ 87,500 $ 155,429 $ 206,239
Number of properties ....................... 123 139 322 591 854
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(1) Prior to October 15, 1997 the Company operated in the form of a master
limited partnership. Amounts shown for years prior to 1997 reflect net
income allocable to partnership unitholders, net income per partnership
unit, and cash distributions declared per partnership unit.
(2) Weighted average number of units/shares outstanding, dividends/
distributions per unit/share and earnings (loss) per unit/share have been
adjusted to reflect the three-for-two split of the Common Stock and
calculation of earnings (loss) per unit/share in accordance with SFAS 128.
(3) The Company believes that it computes FFO in accordance with the standards
established by the National Association of Real Estate Investment Trusts
("NAREIT"), which may differ from the methodology for calculating FFO
utilized by other equity REITs, and, accordingly, may not be comparable to
such other REITs. The Company's FFO is computed as net income (loss)
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available to common stockholders (computed in accordance with GAAP), plus
real estate related depreciation and amortization but excluding the effects
of direct financing leases, minority interest, unusual charges and gains
(or losses)from debt restructuring and sales of property, and the effect of
EITF 98-9. The Company believes FFO enhances and is helpful to investors
as a measure of the performance of an equity REIT because, along with the
Company's financial condition, results of operations and cash flows, it
provides investors with an understanding of the ability of the Company to
incur and service debt and make capital expenditures. In evaluating FFO
and the trends it depicts, investors should consider the major factors
affecting FFO. Growth in FFO will result from increases in revenue or
decreases in related operating expenses. Conversely, FFO will decline if
revenues decline or related operating expenses increase. FFO does not
represent amounts available for management's discretionary use because of
needed capital replacement or expansion, debt service obligations, or
other commitments and uncertainties. FFO should not be considered as an
alternative to net income (determined in accordance with GAAP) as an
indication of the Company's financial performance or to cash flows from
operating activities (determined in accordance with GAAP) as a measure
of the Company's liquidity, nor is it indicative of funds available to
fund the Company's cash needs, including its ability to make distributions.
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SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Company has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
U.S. Restaurant Properties, Inc.
By: /s/ Michael D. Warren
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Michael D. Warren
Director of Finance
Dated: June 29, 1999
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