Navigation Links
Cogdell Spencer Inc. Reports First Quarter 2008 Financial Results
Date:5/5/2008

CHARLOTTE, N.C., May 5 /PRNewswire-FirstCall/ -- Cogdell Spencer Inc. (NYSE: CSA), a real estate investment trust (REIT) that invests in specialty office buildings, including medical offices and ambulatory surgery and diagnostic centers, and provides advance planning and design-build services for the medical profession, today announced financial results for the quarter ended March 31, 2008.

First Quarter 2008 Results

Cogdell Spencer Inc. reports Funds from Operations (FFO) per share and operating partnership unit of $0.26, Funds from Operations Modified (FFOM) per share and operating partnership unit of $0.29, and net income (loss) per share of ($0.13) for the three months ended March 31, 2008. These results include one month of activity from the Marshall Erdman & Associates subsidiary.

FFO for the three months ended March 31, 2008 was $5.1 million, or $0.26 per share and operating partnership unit, basic and diluted. During this quarter, the Company expensed $0.5 million, or $0.02 per share and operating partnership unit, related to vested equity compensation granted to management in connection with the Marshall Erdman & Associates transaction. The weighted average number of basic and diluted shares and operating partnership units outstanding totaled 19,971,955 and 19,984,625, respectively, for the quarter ended March 31, 2008.

FFOM for the three months ended March 31, 2008 was $5.8 million, or $0.29 per share and operating partnership unit, basic and diluted. FFOM adds back to traditionally defined FFO non-cash amortization of non-real estate related intangible assets associated with purchase accounting.

Net income (loss) was ($1.8 million) for the three months ended March 31, 2008, or ($0.13) per share(5,096) (4,035)

Equity in earnings (loss) of

unconsolidated partnerships 3 (9)

Total other income (expense) (4,838) (3,640)

Loss from operations before income

tax expense (benefit) (2,924) (2,800)

Income tax expense (benefit) (358) 144

Loss from operations (2,566) (2,944)

Minority interests in real estate partnerships 13 (17)

Minority interests in operating partnership 752 1,048

Net loss $(1,801) $(1,913)

Net loss per share - basic and diluted $(0.13) $(0.23)

Weighted average common shares - basic

and diluted (2) 14,364 8,334

(1) The three months ended March 31, 2008, include one month of activity

related to the Marshall Erdman & Associates subsidiary.

(2) 11 and 19 shares of unvested restricted common stock are

anti-dilutive due to the net loss for the three months ended March

31, 2008 and 2007, respectively.

Cogdell Spencer Inc.

Business Segment Reporting

(In thousands)

(unaudited)

Design

-Build Unallocated

Three months ended Property and and

March 31, 2008: Operations Development Other Total

Revenues:

Rental revenue $18,691 $ - $ - $18,691

Design-Build contract revenue and

other sales - 23,936 - 23,936

Property management and other fees 841 - - 841

Development management and

other income - 19 - 19

Total revenues 19,532 23,955 - 43,487

Operating expenses:

Property operating and management 7,199 - - 7,199

Costs related to design-build revenue

and other sales - 21,043 - 21,043

Selling, general and administrative - 1,881 - 1,881

Total operating expenses 7,199 22,924 - 30,123

Net operating income 12,333 1,031 - 13,364

Other income (expense) 161 40 54 255

Corporate general and administrative

expenses - - (2,425) (2,425)

Interest expense - - (5,096) (5,096)

Provision for income taxes applicable

to funds from operations modified - - (64) (64)

Depreciation and amortization - (115) (52) (167)

Earnings from unconsolidated real

estate partnerships, before real

estate related depreciation and

amortization 6 - - 6

Minority interests in real estate

partnerships, before real estate

related depreciation and amortization (78) - - (78)

Funds from operations modified

("FFOM") 12,422 956 (7,583) 5,795

Amortization of intangibles related

to purchase accounting, net of income

tax benefit (42) (1,028) 422 (648)

Funds from operations ("FFO") 12,380 (72) (7,161) 5,147

Real estate related depreciation and

amortization (7,700) - - (7,700)

Minority interests in operating

partnership - - 752 752

Net income (loss) $4,680 $(72) $(6,409) $(1,801)

Cogdell Spencer Inc.

Reconciliation of Net Loss to Funds from Operations Modified (FFOM) (1)

(In thousands, except per share and unit amounts)

(unaudited)

Three Months Ended

March 31, 2008 March 31, 2007

Net loss $(1,801) $(1,913)

Plus minority interests in operating

partnership (752) (1,048)

Plus real estate related depreciation

and amortization (2) 7,700 6,552

Funds from Operations (FFO) (1) 5,147 3,591

Plus amortization of intangibles related to

purchase accounting, net of income tax benefit 648 26

Funds from Operations Modified (FFOM) (1) $5,795 $3,617

FFO per share and unit - basic and diluted $0.26 $0.28

FFOM per share and unit - basic and diluted $0.29 $0.28

Weighted average shares and units

outstanding - basic 19,972 12,919

Weighted average shares and units

outstanding - diluted 19,985 12,939

(1) FFO is a supplemental non-GAAP financial measure used by the real

estate industry to measure the operating performance of real estate

companies. FFOM adds back to traditionally defined FFO non-cash

amortization of non-real estate related intangible assets associated

with purchase accounting. The Company presents FFO and FFOM because

it considers them important supplemental measures of operational

performance. The Company believes FFO is frequently used by

securities analysts, investors and other interested parties in the

evaluation of REITs, many of which present FFO when reporting their

results. FFO is intended to exclude GAAP historical cost

depreciation and amortization of real estate and related assets,

which assumes that the value of real estate assets diminishes ratably

over time. Historically, however, real estate values have risen or

fallen with market conditions. Because FFO excludes depreciation and

amortization unique to real estate, gains and losses from property

dispositions and extraordinary items, it provides a performance

measure that, when compared year over year, reflects the impact to

operations from trends in occupancy rates, rental rates, operating

costs, development activities and interest costs, providing a

perspective not immediately apparent from net income. The Company

computes FFO in accordance with standards established by the Board of

Governors of NAREIT in its March 1995 White Paper (as amended in

November 1999 and April 2002), which may differ from the methodology

for calculating FFO utilized by other equity REITs and, accordingly,

may not be comparable to such other REITs. Further, 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 (loss) (computed in

accordance with GAAP) as an indicator of the Company's performance,

nor is it indicative of funds available to fund its cash needs,

including its ability to pay dividends or make distributions.

(2) Real estate depreciation and amortization consists of depreciation

and amortization from wholly-owned real estate properties of $7,439

and $6,534 and the Company's share of joint venture real estate

depreciation and amortization of $261 and $18 for the three months

ended March 31, 2008 and 2007, respectively.

basic and diluted. The weighted average number of basic and diluted shares outstanding totaled 14,364,458 for the quarter ended March 31, 2008.

As of March 31, 2008, the Company's portfolio consisted of 61 consolidated wholly-owned and joint venture properties and three unconsolidated joint venture properties, comprising a total of approximately 3.5 million square feet. The overall percentage of leased space at the Company's in-service, consolidated properties as of March 31, 2008, was 93.7%. In addition, the Company manages 52 properties for third party clients totaling approximately 2.2 million square feet.

Merger with Marshall Erdman & Associates

On March 10, 2008, Cogdell Spencer Inc., through its operating partnership, merged with Marshall Erdman & Associates ("Erdman"). Erdman is a market-leading provider of design-build healthcare facilities throughout the United States of America. Erdman's service offerings include advance planning, architecture, engineering, and construction. The combined company is a fully integrated healthcare facilities company providing services from conceptual planning to long-term property ownership and management. The purchase price was approximately $247 million and consideration was a combination of cash and units in the operating partnership.

Acquisitions

In February 2008, the Company acquired East Jefferson Medical Plaza located in Metairie, Louisiana, for $19.8 million. The facility is 123,184 square feet, 99% leased as of March 31, 2008, and located on the campus of East Jefferson General Hospital. With this acquisition, the Company now owns and manages 253,914 square feet of medical office and clinical space on or adjacent to the East Jefferson General Hospital campus.

In February 2008, the Company also acquired a leasehold interest in floors six and seven of St. Mary's North Medical Office Building, a seven-story, multi-tenant medical office building located on the campus of St. Mary's Hospital in Richmond, Virginia. The purchase price was $4.6 million.

Common Stock Private Placement

On January 23, 2008, the Company issued 3,448,278 shares of common stock to certain institutional investors at a price of $15.95 per share resulting in net proceeds to the Company of approximately $53.7 million. The net proceeds were used to reduce outstanding principal on the Company's credit facility and for working capital.

Credit Facility

On March 10, 2008, the Company amended and restated its existing unsecured revolving credit facility that was to mature on October 31, 2008. The amended revolving credit facility is secured by certain of the Company's properties and matures on March 10, 2011, and provides for a one-year extension at the Company's conditional option. The interest rate is LIBOR plus a margin between 0.95% and 1.40% depending on the Company's leverage ratio.

Term Loan

The Company, through its Erdman taxable REIT subsidiary, has $100.0 million outstanding under a new $100.0 million senior secured term facility (the "Term Loan"), which was used to finance the cash portion of the Erdman transaction. The Term Loan is secured by the stock and certain accounts receivable of Erdman and is guaranteed by the Company. The Term Loan matures on March 10, 2011, and provides for a one-year extension at the Company's option. The interest rate is LIBOR plus a margin between 3.00% and 3.50% depending on certain performance ratios. The Company has entered into a variable to fixed interest rate swap agreement that exchanges the LIBOR interest rate for a fixed interest rate of 2.82% through February 2011.

Dividend

On March 18, 2008, Cogdell Spencer Inc. announced that its Board of Directors had declared a quarterly dividend of $0.35 per share of common stock payable on April 21, 2008 to stockholders of record on March 31, 2008. The dividend covers the first quarter of 2008.

Outlook

Cogdell Spencer's management expects that FFOM per share and operating partnership unit for the year ending December 31, 2008 will be between $1.20 and $1.24 and expects that FFO per share and operating partnership unit will be between $0.90 and $0.98. A reconciliation of the range of projected net income (loss) to projected FFO and FFOM for the year ending December 31, 2008 is below:

Guidance Range for the

Year Ended December 31, 2008

(In thousands, except per share and

operating partnership unit data)

Net loss before minority interests

in Operating Partnership $(6,000) - - $(4,000)

Plus real estate related

depreciation and amortization 27,500 - - 27,500

Funds from Operations (FFO) 21,500 - - 23,500

Plus amortization of intangibles

related to purchase accounting,

net of income tax benefit 7,250 - - 6,250

Funds from Operations Modified (FFOM) $28,750 - - $29,750

FFO per share and unit - diluted $0.90 - - $0.98

FFOM per share and unit - diluted $1.20 - - $1.24

Weighted average shares and units

outstanding - diluted 24,000 - - 24,000

Supplemental operating and financial data are available in the Investor Relations section of the Company's Web site at http://www.cogdellspencer.com .

The reported results are unaudited and there can be no assurance that the results will not vary from the final information for the three months ended March 31, 2008. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

FFO is a supplemental non-GAAP financial measure used by the real estate industry to measure the operating performance of real estate companies. FFOM adds back to traditionally defined FFO non-cash amortization of non-real estate related intangible assets associated with purchase accounting. The Company presents FFO and FFOM because it considers them important supplemental measures of operational performance. The Company believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing a perspective not immediately apparent from net income. The Company computes FFO in accordance with standards established by the Board of Governors of NAREIT in its March 1995 White Paper (as amended in November 1999 and April 2002), which may differ from the methodology for calculating FFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, 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 (loss) (computed in accordance with GAAP) as an indicator of the Company's performance, nor is it indicative of funds available to fund its cash needs, including its ability to pay dividends or make distributions. A reconciliation from GAAP net loss to FFO and FFOM is included as an attachment to this press release.

Conference Call

Cogdell Spencer Inc. invites you to attend the First Quarter 2008 Conference Call on Tuesday, May 6, 2008 at 10:00 a.m. (Eastern Standard Time). The number to call for this teleconference is (800) 860-2442 (domestic) or (412) 858-4600 (international), and no passcode is required. In addition, the conference call can be accessed via the Internet at http://www.cogdellspencer.com through the "Q1 2008 Cogdell Spencer Earnings Conference Call" link on the Investor Relations page.

During the call, management will discuss quarter-end results as well as additional details on the integration process with the Erdman subsidiary.

A playback will be available until May 16, 2008. To access the playback, please dial (877) 344-7529 (domestic) or (412) 317-0088 (international) and enter the passcode: 418508. The replay can also be accessed via the Internet at http://www.cogdellspencer.com through the "Q1 2008 Cogdell Spencer Earnings Conference Call" link on the Investor Relations page.

About Cogdell Spencer Inc.

Charlotte-based Cogdell Spencer Inc. (NYSE: CSA) is a fully-integrated, self-administered, and self-managed real estate investment trust ("REIT") that invests in specialty office buildings for the medical profession, including medical offices, ambulatory surgery and diagnostic centers. On March 10, 2008, the Company merged with Marshall Erdman & Associates, Inc. Erdman is a market-leading provider of design-build healthcare facilities throughout the United States of America. Erdman's service offerings include advance planning, architecture, engineering, and construction. Combined, the Company is a fully integrated healthcare facilities company providing services from conceptual planning to long-term property ownership and management.

At present, the Cogdell Spencer Inc. portfolio consists of 61 consolidated wholly-owned properties and joint venture properties, three unconsolidated joint venture properties, and 52 managed medical office buildings. For more information on Cogdell Spencer Inc., please visit the company's Web site at http://www.cogdellspencer.com .

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements reflect the Company's views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ materially. Factors that may contribute to these differences include, but are not limited to the following: market trends; our ability to obtain future financing arrangements; our ability to renew ground leases; our ability to integrate the operations of Marshall Erdman & Associates with our operations; defaults by tenants; and changes in the reimbursement available to our tenants by government or private payors. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission, including the Company's Form 10-K for the year ended December 31, 2007. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be realized. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Cogdell Spencer Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(unaudited)

March 31, 2008 December 31, 2007

Assets

Real estate properties:

Operating real estate properties $508,203 $486,279

Less: Accumulated depreciation (50,805) (44,596)

Total operating real estate properties, net 457,398 441,683

Construction in progress 16,600 13,380

Total real estate properties, net 473,998 455,063

Cash and cash equivalents 13,581 3,555

Restricted cash 22,874 1,803

Tenant and accounts receivable, net 53,124 2,249

Goodwill and intangible assets, net 321,922 31,589

Other assets 27,729 11,978

Total assets $913,228 $506,237

Liabilities and stockholders' equity

Mortgage notes payable $241,105 $237,504

Revolving credit facility 116,000 79,200

Term loan 100,000 -

Accounts payable 31,607 5,817

Billings in excess of costs and estimated

earnings on uncompleted contracts 38,875 -

Deferred income taxes 42,893 217

Payable to MEA shareholders 32,405 -

Other liabilities 37,900 21,243

Total liabilities 640,785 343,981

Minority interests 98,033 47,221

Stockholders' equity 174,410 115,035

Total liabilities and stockholders' equity $913,228 $506,237

Cogdell Spencer Inc.

Condensed Consolidated Statement of Operations

(In thousands, except per share amounts)

(unaudited)

For the Three Months Ended

March 31, 2008 (1) March 31, 2007

Revenues:

Rental revenue $18,691 $14,321

Design-Build contract revenue and other sales 23,936 -

Property management and other fees 841 943

Development management and other income 19 230

Total revenues 43,487 15,494

Expenses:

Property operating and management 7,199 5,905

Costs related to design-build revenue

and other sales 21,043 -

Selling, general, and administrative 4,306 2,107

Depreciation and amortization 9,025 6,642

Total expenses 41,573 14,654

Income from operations before other

income (expense) 1,914 840

Other income (expense):

Interest and other income, net 255 404

Interest expense
'/>"/>

SOURCE Cogdell Spencer Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Cogdell Spencer Inc. Announces First Quarter Earnings Release and Conference Call Notice
2. Cogdell Spencer Inc. Announces the Closing of the Marshall Erdman and Associates Merger
3. Cogdell Spencer Inc. Announces Merger with Marshall Erdman and Associates
4. Cogdell Spencer Announces a $100 Million Development at St. Lukes Riverside Outpatient Campus In Bethlehem, Pennsylvania
5. Cogdell Spencer Inc. Reports Third Quarter 2007 Financial Results
6. Cogdell Spencer Inc. Acquires Summit Professional Plaza I and II in Brunswick, Georgia
7. Spencer Institute Announces Wellness Coaching: Innovative Certification Training for Life Coaching
8. QueensLander Tours Presents an Adventure Boot Camp Cruise with John Spencer Ellis from Bravos The Real Housewives of Orange County
9. Lifestyle Fitness Coaching Becomes the Next Revolution in Fitness for Spencer Institute
10. Spencer Institute Offers a Home-Training Course for Hemispheric Integration & Neuro-linguistics Coach Certification
11. drugstore.com inc. Reports Results for the First Quarter of 2008
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/25/2016)... ... , ... Conventional wisdom preaches the benefits of moderation, whether it’s a matter ... bar too high can result in disappointment, perhaps even self-loathing. However, those who set ... , Research from PsychTests.com reveals that behind the tendency to set low ...
(Date:6/24/2016)... ... June 24, 2016 , ... June 19, 2016 is World Sickle Cell ... pain and the benefits of holistic treatments, Serenity Recovery Center of Marne, ... Cell Disease. , Sickle Cell Disease (SCD) is a disorder of the red blood ...
(Date:6/24/2016)... ... June 24, 2016 , ... Global law firm Greenberg Traurig, P.A. announced that ... chosen by their peers for this recognition are considered among the top 2 percent ... special honors as members of this year’s Legal Elite Hall of Fame: Miami ...
(Date:6/24/2016)... ... June 24, 2016 , ... Topical BioMedics, Inc, makers of Topricin and MyPainAway Pain ... for a minimum wage raise to $12 an hour by 2020 and then adjusting it ... the lost value of the minimum wage, assure the wage floor does not erode again, ...
(Date:6/24/2016)... ... June 24, 2016 , ... The Haute Beauty Network, affiliated ... Weintraub as a prominent plastic surgeon and the network’s newest partner. , ... most handsome men, look naturally attractive. Plastic surgery should be invisible.” He stands ...
Breaking Medicine News(10 mins):
(Date:6/26/2016)... 26, 2016 Story Highlights: ... models within the health care industry is causing providers ... , Deloitte offers a suite of solutions for ... impacting efficient cost optimization: labor resource analysis, revenue cycle ... facilitate better outcomes and better economics ...
(Date:6/24/2016)... CAMBRIDGE, Mass. , June 24, 2016 /PRNewswire/ ... the Spaulding Rehabilitation Network,s Dean Center for ... of Physical Medicine and Rehabilitation, MIT Hacking Medicine, ... Center for Innovation, today announced the five finalists ... Hackathon for Lyme disease.  More than 100 scientists, ...
(Date:6/24/2016)... -- Dehaier Medical Systems Ltd. (NASDAQ: DHRM ... sells medical devices and wearable sleep respiratory products in ... agreement with Hongyuan Supply Chain Management Co., Ltd. (hereinafter ... 2016, to develop Dehaier,s new Internet medical technology business. ... leverage Hongyuan Supply Chain,s sales platform to reach Dehaier,s ...
Breaking Medicine Technology: