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8-K - FORM 8-K - TIPTREE INC.d627551d8k.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

TIPTREE FINANCIAL INC. REPORTS FINANCIAL RESULTS FOR THE NINE MONTHS ENDED

SEPTEMBER 30, 2013

New York, New York – November 14, 2013 – Tiptree Financial Inc. (“Tiptree”, “the Company” or “we”) (NASDAQ:TIPT), today filed its Quarterly Report on Form 10-Q and announced its financial results for the nine months ended September 30, 2013.

Tiptree is a diversified holding company which conducts its operations through its operating subsidiary Tiptree Operating Company, LLC (“Operating Subsidiary”). We operate in four segments: insurance and insurance services, specialty finance (including corporate, consumer and tax-exempt credit), asset management and real estate. Tiptree is the sole managing member of, and owns approximately 25% of, Operating Subsidiary. As the sole managing member of Operating Subsidiary, Tiptree operates and controls all of the business and affairs of Operating Subsidiary and its subsidiaries and consolidates the financial results of Operating Subsidiary and its subsidiaries. Tiptree Financial Partners L.P’s (“TFP”) ownership of approximately 75% of Operating Subsidiary is reflected as a non-controlling interest in Tiptree’s consolidated financial statements. Tiptree’s Class A common stock is traded on Nasdaq and has both economic and voting rights; Tiptree’s Class B common stock is held by TFP and has voting but no economic rights.

 

    Economic Net Income of Operating Subsidiary for the nine months ended September 30, 2013 was $29.9 million. Economic Net Income available to Tiptree Class A stockholders for the nine months ended September 30, 2013 was $6.9 million, or $0.67 per diluted Class A share, compared with an Economic Net Income of $5.7 million, or $0.55 per diluted Class A share, for the nine months ended September 30, 2012. Economic Net Income for the nine months ended September 30, 2013 was primarily driven by strong results in corporate credit, real estate, insurance and insurance services and asset management.

 

    Dilutive Tiptree Economic Book Value per Class A share was $9.98 at September 30, 2013, compared with Dilutive Tiptree Economic Book Value per Class A share of $9.30 at December 31, 2012.

 

    GAAP net income of Operating Subsidiary for the nine months ended September 30, 2013 was $29 million. GAAP net income available to Tiptree Class A stockholders for the nine months ended September 30, 2013 was $6.6 million, or $0.64 per diluted share, compared with GAAP net income available to Class A stockholders for the nine months ended September 30, 2012 of $6.5 million, or $0.63 per diluted share. A reconciliation of Economic Net Income and Economic Book Value to reported GAAP results is attached.

The nine months ended September 30, 2013 have been a transformative period for Tiptree. The following highlights certain developments during this period, which are described in more detail in the Form 10-Q filed by Tiptree today.

 

    Contribution Transactions. We completed a transaction we refer to as the Contribution Transactions, creating Tiptree’s current capital and ownership structure on July 1, 2013. TFP and Care Investment Trust Inc. (prior to the Contribution Transactions, “Care Inc.”) each contributed substantially all of their assets to Operating Subsidiary in exchange for ownership in Operating Subsidiary.

 

    Acquisitions and dispositions. We sold our membership interests in an entity that owned fourteen senior living facilities, which we refer to as the Bickford Portfolio, on June 28, 2013 for net cash of $44 million and a net gain of approximately $15.5 million. We purchased an aggregate of approximately 66.7% of the voting equity interests of Siena Capital Finance LLC (“Siena”) for an aggregate of $10 million in two stages on April 2013 and July 2013. A capital contribution by another investor in Siena diluted our interest in Siena to approximately 62% in October 2013. We entered into a definitive agreement to make a $5 million loan to Luxury Mortgage Corp. (“Luxury”) on April 2013. Half of the loan has been funded and the remainder will be funded upon regulatory approval and other closing conditions, whereupon we will receive approximately 67.5% of Luxury’s common stock.

 

    Asset Management Activity. Telos CLO 2013-3, Ltd. (“Telos 3”) and Telos CLO 2013-4, Ltd. (“Telos 4”) became effective on June 5, 2013 and October 23, 2013, respectively. In anticipation of issuing CLO notes for Telos CLO 2013-5, Ltd. (“Telos 5”), Telos entered into a $100 million warehouse credit agreement on August 6, 2013, which was increased to $140 million on September 25, 2013.


    Debt Financing. Operating Subsidiary borrowed $50 million under a Credit Agreement entered into with Fortress Credit Corp. (“Fortress”) on September 18, 2013. The Credit Agreement includes an option to borrow an additional $125 million, subject to satisfaction of certain customary conditions.

 

    Equity Activity. Our Class A common stock has been trading on the Nasdaq Capital Market under the symbol “TIPT” since August 9, 2013. A registration statement facilitating public resales of approximately 7.2 million shares of our Class A common stock owned by TFP prior to the Contribution Transactions and distributed to TFP the limited partners in redemption of partnership interests in TFP became effective on October 18, 2013.

Tiptree’s board of directors reviewed a variety of factors including, the attractive risk adjusted yields available on investment opportunities that the Company is currently considering, and the relatively low year-to-date expected tax obligations for Operating Subsidiary’s investors, and has unanimously decided not to declare a dividend at this time.

Cautionary Statement Regarding Forward-Looking Statements

This release contains “forward-looking statements” which involve risks, uncertainties and contingencies, many of which are beyond the Company’s control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “estimate,” “expect,” “plan,” “target,” and similar expressions are generally intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions. The forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, many of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecast in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to those described in the section entitled “Risk Factors” in the Company’s Quarterly Report on Form 10-Q, and as described in the Company’s other filings with the Securities and Exchange Commission (“SEC”). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date of this release. The factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could affect our forward-looking statements. Consequently, our actual performance could be materially different from the results described or anticipated by our forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by the federal securities laws, we undertake no obligation to update any forward-looking statements.

FOR FURTHER INFORMATION:

(212) 446-1400

ir@tiptreefinancial.com


Economic Net Income

Economic Net Income (“ENI”) is a non-GAAP financial measure of profitability which Tiptree uses to measure the performance of its core business. Management believes that ENI reflects the nature and substance of the economic results of Tiptree’s businesses. Management also uses ENI as a measurement for determining incentive compensation. In addition to the other adjustments indicated in the table below, ENI includes the following adjustments: (i) adjustment to results from real estate to eliminate non-cash items similar to adjusted funds from operations (“AFFO”) which is a non-GAAP financial measure widely used in the real estate industry, (ii) in our insurance segment, adjustment for fair value on available for sale securities, which is a non-GAAP measure frequently used throughout the insurance industry, and (iii) in our specialty finance segment, Variable Interest Entities (“VIEs”), such as Collateralized Loan Obligations (“CLOs”) are shown as if not consolidated. Reconciliation of ENI to the most comparable GAAP measure is presented below.

ENI as used by Tiptree may not be comparable to similar measures presented by other companies as it is a non-GAAP financial measure that is not based on a comprehensive set of accounting rules or principles and therefore may be defined differently by other companies. ENI should be considered in addition to, not as a substitute for, financial measures determined in accordance with GAAP.

The following table details the individual revenue and expense components of the non-GAAP measure Economic Net Income for the periods indicated (unaudited in thousands):

 

     Nine month
period ended
September 30,
2013
    Nine month
period ended
September 30,
2012
 

Revenues:

    

Interest income

   $ 408      $ 396   

Dividend/distribution income

     15,653        15,430   

Realized gains (losses)

     (1,015     414   

Unrealized gains

     20,273        16,589   

Management fee income

     12,281        3,351   
  

 

 

   

 

 

 

Total revenues

   $ 47,600      $ 36,180   

Expenses:

    

Compensation expense

     9,839        3,096   

Distribution expense (convertible preferred)

     1,747        1,979   

Interest expense

     1,496        933   

Professional fees and other

     4,633        3,081   
  

 

 

   

 

 

 

Total expense

   $ 17,715      $ 9,089   

Economic Net Income (loss) before management fee expenses and waivers and incentive allocation

   $ 29,885      $ 27,091   

Less: Management fee expenses (1)

     —          1,996   

Less: Management fee expenses waived (1)

     —          (1,066

Economic Net Income before incentive allocation

     29,885        26,161   

Less: Incentive allocation (1)

     —          3,459   
  

 

 

   

 

 

 

Economic Net Income of Operating Subsidiary

     29,885        22,702   
  

 

 

   

 

 

 

Less: Economic net income attributable to TFP

   $ 22,450      $ 17,052   
  

 

 

   

 

 

 

Economic Net Income of Tiptree before tax provision

     7,435        5,650   

Less: Tax provision attributable to Tiptree

     567        —     
  

 

 

   

 

 

 

Economic Net Income of Tiptree

   $ 6,868      $ 5,650   
  

 

 

   

 

 

 

 

(1) Following TFP’s acquisition of TAMCO in June 2012 described in Note 1 to the financial statements, TAMCO no longer pays management or incentive fees.


Reconciliation of GAAP Book Value to Economic Book Value:

Economic Book Value (“EBV”) is a non-GAAP financial measure which Tiptree uses to evaluate the performance of its core business. Management believes that EBV provides greater transparency and enhanced visibility into the underlying profitability drivers of our business and provides a useful, alternative view of the economic results of Tiptree’s businesses. EBV includes the following adjustments: (i) reversal of GAAP value for TAMCO and CLO VIEs and replacement with fair value, (ii) addition of life to date AFFO adjustments for real estate operations, (iii) reclassification of convertible preferred distributions to expense and (iv), foreign exchange timing adjustment. Reconciliation of EBV to the most comparable GAAP measure is presented below.

EBV as used by Tiptree may not be comparable to similar measures presented by other companies as it is a non-GAAP financial measure that is not based on a comprehensive set of accounting rules or principles and therefore may be defined differently by other companies. EBV should be considered in addition to, not as a substitute for, financial measures determined in accordance with GAAP. The following is a reconciliation of GAAP book value attributable to Tiptree to EBV as of September 30, 2013 and December 31, 2012 (in thousands except share data):

 

     September 30, 2013     December 31, 2012  

GAAP Net Assets to Tiptree Class A Stockholders

   $ 114,234      $ 108,357   

Less cash and cash equivalents held directly at Tiptree

     3,884        4,089   

Plus portion of NCI held by TFP

     335,765        315,640   
  

 

 

   

 

 

 

GAAP Net Assets of Operating Subsidiary

     446,115        419,908   

Reversal of consolidation of TAMCO (including VIEs)(1):

     (146,373     (120,513

Fair values of CLOs (2)

     63,173        30,737   

Value of TAMCO (3)

     57,661        56,353   

Adjustments to results from real estate operations (4)

     1,857        5,603   

TFP convertible preferred reclass of distributions to expense (5)

     —          (810

Foreign exchange reserve (6)

     —          (1,174
  

 

 

   

 

 

 

Economic Operating Subsidiary Net Assets (before dilutive adjustments)

   $ 422,433      $ 390,104   
  

 

 

   

 

 

 

Dilutive adjustments (7)

     25,894        25,894   
  

 

 

   

 

 

 

Economic Operating Subsidiary Net Assets (after dilutive adjustments)

   $ 448,327      $ 415,998   

Basic Units outstanding (8)

     41,229        41,049   

Dilutive Unit adjustments (7)

     3,690        3,685   
  

 

 

   

 

 

 

Dilutive Economic Operating Subsidiary Units Outstanding

     44,919        44,734   

Basic Economic Book Value Per Unit (9)

   $ 10.25      $ 9.50   

Dilutive Economic Book Value Per Unit (9)

   $ 9.98      $ 9.30   

Tiptree Class A Economic Book Value

    

Tiptree Class A shares outstanding

     10,260        10,226   

Basic Economic Tiptree Book Value Per Class A Share

   $ 10.25      $ 9.50   

Dilutive Economic Tiptree Book Value Per Class A Share

   $ 9.98      $ 9.30   

 

(1) Under GAAP, Tiptree is required to consolidate all of the assets and liabilities of the VIEs managed by TAMCO on Tiptree’s balance sheet regardless of Tiptree’s economic interest. See Note 2(c) to Tiptree’s Consolidated Financial Statements. Adjustment is reversal of consolidation of TAMCO and VIEs.
(2) Adjustment is to include the fair value of our ownership position in the VIEs which has been reversed as described in note (1) above.
(3) Adjustment to value TAMCO at the lower of cost and market. The December 31, 2012 amount reflects Tiptree’s initial valuation of the purchase price based on the March 31, 2012 value of LP units issued in consideration for TAMCO. The September 30, 2013 amount reflects Tiptree’s final valuation of the purchase price based on the June 30, 2012 value of LP units issued in consideration for TAMCO.
(4) Adjustments to results from real estate operations reverses the amounts, since inception, related to the effects of straight lining lease revenue, expenses associated with depreciation and amortization, certain transaction expenses, non-cash transactions expenses, non-cash equity compensation expenses, other noncash charges, and incentive compensation adjustment for unconsolidated partnerships and joint ventures.
(5) Convertible preferred distribution was reclassified as expense for purposes of ENI. This adjustment conforms the reclassification for EBV purposes.
(6) A reserve was established for EBV purposes as of December 31, 2012 reflecting a timing difference relative to GAAP recognition of yen foreign exchange. Such reserve was subsequently reversed.
(7) Adjustments include the proceeds that would be received by Operating Subsidiary and the units issued assuming exercise of all outstanding warrants.
(8) Excludes 6,474 units issued in respect of shares of Class A common stock to directors of Tiptree as part of their annual retainer.
(9) As a result of the Contribution Transactions, Operating Subsidiary is owned approximately 25% by Tiptree and approximately 75% by TFP. Tiptree’s ownership is equal to the number of shares of Class A common stock and pursuant to Operating Subsidiary’s limited liability agreement this ratio will remain 1:1. TFP’s ownership is equal to 2.798 times the number of TFP LP units outstanding and this ratio is expected to remain 2.798:1. There were 11,068 and 11,016 LP Units outstanding as of September 30, 2013 and December 31, 2012, respectively. The basic EBV per LP Unit was $28.68 and $26.59 as of September 30, 2013 and December 31, 2012, respectively. The diluted EBV per LP Unit was $27.92 and $26.02 as of September 30, 2013 and December 31, 2012, respectively.


Reconciliation of GAAP Net Income To Economic Net Income

The following is a reconciliation of GAAP Net Income attributable to Tiptree to ENI for the nine month periods ended September 30, 2013 and 2012 (in thousands):

 

     Nine month     Nine month  
     period ended     period ended  
     September 30, 2013     September 30, 2012  

GAAP Net Income of Tiptree

   $ 6,563      $ 6,508   

Plus: Tax provision attributable to Tiptree

     567        —     

Plus: Portion of NCI held by TFP

     21,589        19,611   
  

 

 

   

 

 

 

GAAP net income of Operating Subsidiary

   $ 28,719      $ 26,119   

Adjustments:

    

Adjustments to results from real estate operations (1)

     (3,758     2,121   

Effect of change in majority ownership of subsidiaries (2)

     (1,673     460   

Fair value adjustments to carrying value (3)

     939        6,385   

Reversal of VIEs net losses (gains) attributable to TFP (4)

     6,231        (3,726

Reversal of TAMCO net gains for periods prior to acquisition of TAMCO (5)

     —          (6,560

TFP convertible preferred reclass of distributions to expense (6)

     (1,747     (1,978

Foreign exchange reserve (7)

     1,174        —     

Amortization of start-up expenses (8)

     —          (119
  

 

 

   

 

 

 

Economic Net Income of Operating Subsidiary

     29,885        22,702   

Less: Economic net income attributable to TFP

     22,450        17,052   
  

 

 

   

 

 

 

Economic Net Income of Tiptree before tax provision

     7,435        5,650   

Less: Tax provision attributable to Tiptree

     567        —     
  

 

 

   

 

 

 

Economic Net Income of Tiptree

   $ 6,868      $ 5,650   
  

 

 

   

 

 

 

 

(1) Adjustments to results from real estate operations includes the effects of straight lining lease revenue, expenses associated with depreciation and amortization, certain transaction expenses, non-cash equity compensation expenses, other non-cash charges, and incentive compensation adjustments for unconsolidated partnerships and joint ventures.
(2) Effect of change in majority ownership of subsidiaries is the dilutive effect of Care Inc.’s issuance of shares related to the Contribution Transactions and stock-based compensation, the effect of Tiptree’s increased ownership of Philadelphia Financial due to accretion of preferred shares, and the increase in ownership of Siena.
(3) Adjustment is to account at fair value the CLO subordinated notes held by Tiptree and PFG’s available-for-sale securities. Fair values are obtained from an independent third party pricing source.
(4) Reversal of VIEs net losses/(gains) attributable to Tiptree (see reconciliation table below in thousands):

 

Nine month period ended September 30, 2013    Tiptree pro
rata
portion of
Net
Income
    Net
Income
(net of 1%
NCI)
    Tiptree’s
ownership
%
 

Telos 1

   $ (18,262   $ (18,079     7.11

Telos 2

     (5,977     (5,917     95.45

Telos 3

     1,441        1,427        19.79

Telos 4

     563        557        71.08
  

 

 

   

 

 

   

Total

   $ (22,235   $ (22,012  
Nine month period ended September 30, 2012    Tiptree pro
rata
portion of
Net
Income
    Net
Income
(net of 1%
NCI)
    Tiptree’s
ownership
%
 

Telos 1

   $ 2,849      $ 2,821        7.11

Telos 2

     3,731        3,694        95.45
  

 

 

   

 

 

   

Total

   $ 6,580      $ 6,515     


(5) The purchase of TAMCO on June 30, 2012 was accounted for as a combination of entities under common control. As a result, the assets and liabilities of TAMCO were presented as if TAMCO had been consolidated by Tiptree on January 1, 2010. For non-controlling interest, we are reversing the effect of this recasting of financial information for prior periods.
(6) Convertible preferred distribution reclassified as expense for purposes of ENI so as to reflect a cost of capital charge for outstanding convertible preferred. This class automatically converted to common shares effective July 1, 2013.
(7) Reflects the timing difference on the recognition of yen exposure GAAP versus ENI.
(8) Amortization of expenses associated with the start-up of Tiptree in 2007. The amortization period ended on June 30, 2012.


TIPTREE FINANCIAL, INC.

AND SUBSIDIARIES

Consolidated Balance Sheet (Unaudited)

(in thousands, except share and per share data)

 

     September 30, 2013      December 31, 2012  
Assets      

Cash and cash equivalents – unrestricted

   $ 123,721       $ 88,563   

Cash and cash equivalents – restricted

     34,210         20,748   

Due from separate accounts

     2,467         2,128   

Investments in trading securities, at fair value

     39,333         59,982   

Investments in available for sale securities, at fair value
(amortized cost: $17,546 and $15,693 in 2013 and 2012, respectively)

     17,721         16,303   

Investments in loans, at fair value

     128,467         20,423   

Loans owned, at amortized cost – net of allowance

     32,443         5,467   

Investments in partially-owned entities

     11,075         8,388   

Derivative financial instruments, at fair value

     2         834   

Due from brokers, dealers, and trustees

     247         8,539   

Real estate

     62,492         118,827   

Reinsurance receivables

     9,080         8,802   

Management fee receivables

     255         249   

Policy loans

     104,875         99,123   

Insurance policies and contracts acquired

     39,809         41,379   

Deferred policy acquisition costs

     4,543         3,878   

Separate account assets

     4,353,490         4,035,053   

Deferred tax assets

     4,834         5,342   

Notes receivable

     6,071         —     

Accrued interest and dividends receivable

     1,048         1,642   

Intangible assets

     115,286         121,033   

Goodwill

     4,243         3,088   

Assets of consolidated CLOs

     1,491,744         851,660   

Other assets

     16,777         12,351   
  

 

 

    

 

 

 

Total assets

   $ 6,604,233       $ 5,533,802   
  

 

 

    

 

 

 
Liabilities and Stockholders’ Equity      

Liabilities:

     

Derivative financial instruments, at fair value

   $ —         $ 3,172   

U.S. Treasuries, short position

     18,945         20,175   

Mortgage notes payable

     33,254         95,232   

Notes payable

     146,500         100,416   

Loans payable

     58,749         —     

Policy liabilities

     114,930         108,868   

Separate account liabilities

     4,353,490         4,035,053   

Due to brokers, dealers and trustees

     47,120         —     

Accrued interest payable

     293         420   

Liabilities of consolidated CLOs

     1,250,931         620,310   

Other liabilities and accrued expenses

     24,243         14,568   
  

 

 

    

 

 

 

Total liabilities

   $ 6,048,455       $ 4,998,214   
  

 

 

    

 

 

 

Commitments and contingencies

     

Stockholders’ Equity:

     

Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued or outstanding

   $ —         $ —     

Common stock—Class A: $0.001 par value, 200,000,000 shares authorized, 10,260,379 and 10,226,250 shares issued and outstanding

     11         11   

Common stock—Class B: $0.001 par value, 50,000,000 shares authorized, 30,968,877 and 0 shares issued and outstanding

     31         —     

Additional paid-in capital

     97,250         96,144   

Accumulated other comprehensive income

     290         311   

Retained earnings

     16,652         11,892   
  

 

 

    

 

 

 

Total stockholders’ equity of Tiptree Financial Inc.

     114,234         108,358   

Non-controlling interest

     354,667         324,595   

Appropriated retained earnings of consolidated TAMCO

     86,877         102,635   
  

 

 

    

 

 

 

Total stockholders’ equity

     555,778         535,588   

Total liabilities and stockholders’ equity

   $ 6,604,233       $ 5,533,802   
  

 

 

    

 

 

 


Tiptree Selected Consolidated Financial Data

Summary Consolidated Statements of Operations (unaudited in thousands):

 

    Three month     Three month     Nine month     Nine month  
    period ended     period ended     period ended     period ended  
    September 30, 2013     September 30, 2012     September 30, 2013     September 30, 2012  

Revenues:

       

Net realized (losses) gains and change in unrealized appreciation (depreciation) on investments:

       

Net realized gains (losses)

  $ 669      $ 620      $ (770   $ 926   

Change in unrealized appreciation

    5,314        1,816        4,227        9,186   
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gains

    5,983        2,436        3,457        10,112   
 

 

 

   

 

 

   

 

 

   

 

 

 

Investment income:

       

Interest income

    3,916        2,317        11,131        7,498   

Separate account and administrative fees

    18,286        15,372        53,192        25,119   

Rental revenue

    1,363        429        3,279        1,254   

Income attributable to consolidated CLOs

    11,256        23,804        33,475        50,420   

Other income

    325        734        701        2,289   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    35,146        42,656        101,778        86,580   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total net realized and unrealized gains and investment income

    41,129        45,092        105,235        96,692   
 

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

       

Interest expense

    4,110        3,348        12,008        4,416   

Payroll expense

    8,741        7,448        26,277        12,746   

Professional fees

    2,252        4,755        6,204        9,179   

Change in future policy benefits

    1,189        1,047        3,502        3,042   

Mortality expenses

    2,633        2,542        7,885        7,338   

Commission expense

    631        496        1,805        1,489   

Depreciation and amortization expenses

    1,215        593        3,382        1,527   

Expenses attributable to the consolidated CLOs

    12,783        6,183        34,021        25,190   

Other expenses

    4,240        1,153        10,722        4,922   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    37,794        27,565        105,806        69,849   
 

 

 

   

 

 

   

 

 

   

 

 

 

Income before taxes from continuing operations

    3,335        17,527        (571     26,843   

Provision for income taxes

    1,434        735        4,549        162   
 

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

    1,901        16,792        (5,120     26,681   

Discontinued operations:

       

Gain on sale of Bickford portfolio, net

    —          —          15,463        —     

Income from discontinued operations, net

    —          721        1,647        2,294   

Provision for income taxes

    —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued Operations, net

    —          721        17,110        2,294   
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income

  $ 1,901      $ 17,513      $ 11,990      $ 28,975   

Less net income attributable to the noncontrolling interest

    7,008        9,485        21,185        19,652   

Less net (loss) income attributable to the VIE subordinated noteholders

    (6,937     4,939        (15,758     2,815   
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to common stockholders

  $ 1,830      $ 3,089      $ 6,563      $ 6,508