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Previous: MERIDIAN INVESTMENT MANAGEMENT CORP/CO, 13F-HR/A, 1999-11-02 |
Next: GENEREX BIOTECHNOLOGY CORP, S-1/A, 1999-11-02 |
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report: October 18, 1999
(Date of earliest event reported)
LTC HEALTHCARE, INC.
(Exact name of registrant as specified in its charter)
NEVADA 1-14151 91-1895305
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation or organization) Identification No.)
300 ESPLANADE DRIVE, SUITE 1865
OXNARD, CALIFORNIA 93030
(Address of principal executive offices, including zip code)
(805) 981-8659
(Registrant's telephone number, including area code)
<PAGE>
ITEM 2. DISPOSITION OF ASSETS
Effective October 18, 1999, the Company sold 100% of the stock of Missouri River
Corporation ("Missouri River") to LTC Properties, Inc. ("LTC") for total
proceeds of $16,050,000. Missouri River owns two assisted living facilities that
are leased under long-term triple-net leases to a third-party operator. The
proceeds of $16,050,000 were used to repay outstanding borrowings under the
revolving line of credit provided by LTC.
The Company was created and spun-off from LTC in 1998. The stock of Missouri
River was contributed to the Company by LTC prior to the spin-off. LTC has
provided the Company with a $20,000,000 revolving line of credit that bears
interest at 10% and, under the terms of an administrative services agreement,
provides management and advisory services to the Company. In addition, the
Company operates 17 skilled nursing facilities and one assisted living facility
that it leases from LTC.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(b) PRO FORMA FINANCIAL INFORMATION.
The following unaudited pro forma balance sheet of LTC Healthcare,
Inc. as of June 30, 1999 and unaudited pro forma condensed
combined statements of operations for the six months ended June
30, 1999 and the period from inception (March 25, 1998) to
December 31, 1998 have been prepared to reflect the sale of
Missouri River and the repayment of outstanding borrowings under
the revolving line of credit with the proceeds of the sale.
The unaudited pro forma balance sheet has been prepared as if the
transaction had occurred on June 30, 1999 and the unaudited pro
forma statements of operations have been prepared as if the
transaction had occurred at the beginning of the period presented.
The unaudited pro forma financial information is not necessarily
indicative of the results that actually would have occurred if the
transaction had occurred on the dates assumed above.
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<PAGE>
PRO FORMA BALANCE SHEET - UNAUDITED
AS OF JUNE 30, 1999
(IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
ACTUAL ADJUSTMENTS PRO FORMA
-------- ------------ ---------
<S> <C> <C> <C>
ASSETS
Real estate:
Buildings and improvements $ 61,376 $(14,440)(A) $ 46,936
Land 3,806 (1,610)(A) 2,196
Accumulated depreciation (5,298) 493(A) (4,805)
-------- ------------ ---------
Real estate, net 59,884 (15,557) 44,327
Mortgage loan receivable 13,556 - 13,556
Marketable securities:
Available-for-sale equity securities 2,612 - 2,612
Held-to-maturity debt securities 10,949 - 10,949
Other assets:
Cash and cash equivalents 486 16,050(A) 486
(16,050)(B)
Prepaid expenses and other assets 1,835 (23)(A) 1,812
-------- ------------ ---------
Total Assets $ 89,322 $(15,580) $ 73,742
-------- ------------ ---------
-------- ------------ ---------
LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage loans payable $ 42,246 $ - $ 46,246
Note payable 13,056 - 13,056
Line of credit from LTC Properties, Inc. 18,515 (16,050)(B) 2,465
Accrued interest 419 - 419
Accrued expenses and other liabilities 525 - 525
-------- ------------ ---------
78,761 (16,050) 62,711
Minority interest 3,518 - 3,518
Stockholders' equity:
Preferred stock $0.01 par value; 10,000,000 shares
authorized, No shares issued and outstanding - - -
Common stock $0.01 par value, 40,000,000 shares
authorized, 3,335,882 shares issued 33 - 33
Treasury stock, 640,954 shares (1,698) - (1,698)
Capital in excess of par 10,224 - 10,224
Cumulative net loss (529) 470(A) (59)
Accumulated comprehensive loss (987) - (987)
-------- ------------ ---------
Total Stockholders' Equity 7,043 470 7,513
-------- ------------ ---------
Total Liabilities and Stockholders' Equity
$ 89,322 $(15,580) $ 73,742
-------- ------------ ---------
-------- ------------ ---------
</TABLE>
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<PAGE>
PRO FORMA STATEMENT OF OPERATIONS - UNAUDITED
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
ACTUAL ADJUSTMENTS PRO FORMA
------------ --------------- ------------
<S> <C> <C> <C>
Revenues
Rental income $ 3,569 $ (747)(A) $ 2,822
Interest income from mortgage loans 753 - 753
Interest and other income 632 - 632
------------ --------------- ------------
Total revenues 4,954 (747) 4,207
------------ --------------- ------------
Expenses
Interest on mortgages payable 1,957 - 1,957
Interest on line of credit from LTC Properties, Inc. 867 (803)(B) 64
Interest on note payable 717 - 717
Depreciation 992 (237)(A) 755
Minority interest 172 - 172
General and administrative 659 (24)(A) 635
------------ --------------- ------------
Total expenses 5,364 (1,064) 4,300
------------ --------------- ------------
Operating loss (410) 317 (93)
Provision for income taxes - - -
------------ --------------- ------------
Net loss $ (410) $ 317 $ (93)
------------ --------------- ------------
------------ --------------- ------------
Weighted average shares outstanding 2,771,879 2,771,879
Net loss per share:
Basic $ (0.15) $ (0.03)
Diluted $ (0.15) $ (0.03)
Comprehensive loss
Net loss $ (410) $ (93)
Unrealized gain/(loss) on available-for-sale
equity securities (1,020) (1,020)
------------ ------------
Total comprehensive loss $ (1,430) $ (1,113)
------------ ------------
------------ ------------
</TABLE>
4
<PAGE>
PRO FORMA STATEMENT OF OPERATIONS - UNAUDITED
FOR THE PERIOD FROM INCEPTION (MARCH 25, 1998) TO DECEMBER 31, 1998
(IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
ACTUAL ADJUSTMENTS PRO FORMA
------------ --------------- ------------
<S> <C> <C> <C>
Revenues
Rental income $ 2,172 $ (547)(A) $ 1,625
Interest and other income 692 - (C) 692
------------ --------------- ------------
Total revenues 2,864 (547) 2,317
------------ --------------- ------------
Expenses
Interest on mortgages payable 1,133 - 1,133
Interest on line of credit from LTC Properties, Inc. 711 (711)(B) -
Depreciation 586 (158) 428
Minority interest 86 - 86
General and administrative 467 (1)(A) 466
------------ --------------- ------------
Total expenses 2,983 (870) 2,113
------------ --------------- ------------
Operating loss (119) 323 204
Provision for income taxes - 80 80
------------ --------------- ------------
Net loss $ (119) $ 243 $ 124
------------ --------------- ------------
------------ --------------- ------------
Weighted average shares outstanding 3,335,882 3,335,882
Net loss per share:
Basic $ (0.04) $ 0.04
Diluted $ (0.04) $ 0.04
</TABLE>
5
<PAGE>
NOTES TO PRO FORMA FINANCIAL STATEMENTS
(A) Represents the elimination of Missouri River Corporation's net assets
and results of operations.
(B) Represents the repayment of borrowings under the line of credit
provided by LTC with proceeds from the sale of Missouri River
Corporation and the corresponding reduction in interest expense.
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<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
LTC HEALTHCARE, INC.
Date: November 2, 1999 /s/ JAMES J. PIECZYNSKI
------------------------
James J. Pieczynski
President and Chief Financial Officer
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