Investor’s Watch List: Omega Healthcare Investors, Inc. (NYSE: OHI)

On Monday, Shares of Omega Healthcare Investors, Inc. (NYSE: OHI) showed the bullish trend with a higher momentum of 0.82% and ended its trading session at $32.07. The company traded total volume of 1.29M shares as contrast to its average volume of 1.92M shares. The company has a market value of $6.30B and about 196.31M shares outstanding. During the 52-week trading session, the minimum price at which share price traded was registered at $24.90 and reached the max level of $33.85.

Omega Healthcare Shareholders, Inc. (OHI) recently declared its results of operations for the three-month period ended March 31, 2018.

The Company stated for the three-month period ended March 31, 2018 net income of $87.90M or $0.42 per common share. The Company also stated Funds from Operations (“FFO”) for the quarter of $148.00M or $0.71 per common share, Adjusted Funds From Operations (“AFFO” or “Adjusted FFO”) of $161.30M or $0.78 per common share, and Funds Available For Distribution (“FAD”) of $143.80M.

FFO for the first quarter of 2018 includes $7.80M in provisions for uncollectible accounts, $4.10M of non-cash stock-based compensation expense, $2.00M for a purchase option buyout and $0.60M of unrealized gain on warrants (Adjusted FFO excludes those four items). FFO, AFFO and FAD are non-GAAP financial measures.

GAAP NET INCOME:

For the three-month period ended March 31, 2018, the Company stated net income of $87.90M, or $0.42 per common share, on operating revenues of $220.20M. This compares to net income of $109.10M, or $0.53 per common share, on operating revenues of $231.70M, for the same period in 2017.

The decrease in net income for the three-month period ended March 31, 2018 contrast to the prior year was mainly because of a $16.20M reduction in revenue associated with the Orianna Health Systems portfolio, a favorable $10.40M contractual settlement recorded in the first quarter of 2017, $5.40M in increased provisions for uncollectible accounts, a $3.60M increase in general and administrative expenses and $3.00M in increased interest expense. This decrease in net income was partially offset by $10.10M in increased gains on the sale of assets and a $2.70M decrease in impairments on real estate assets.

FIRST QUARTER 2018 RESULTS:

Operating Revenues and Expenses – Operating revenues for the three-month period ended March 31, 2018 totaled $220.20M, which included $17.40M of non-cash revenue.

Operating expenses for the three-month period ended March 31, 2018 totaled $99.60M and consisted of $70.40M of depreciation and amortization expense, $12.40M of general and administrative expense, $7.80M in provisions for uncollectible accounts, $4.90M of impairments on real estate properties and $4.10M of stock-based compensation expense. The $12.40M of general and administrative expense included $2.00M related to the buyout of an in-the-money purchase option from an unrelated third party. For more information on impairment and provision charges, see the Asset Impairment and Disposition section below.

Other Income and Expense – Other income and expense for the three-month period ended March 31, 2018 was a net expense of $49.60M, mainly consisting of $48.00M of interest expense and $2.20M of amortized deferred financing costs.

Funds From Operations – For the three-month period ended March 31, 2018, FFO was $148.00M, or $0.71 per common share on 208.0M weighted-average common shares outstanding, contrast to $181.00M, or $0.88 per common share on 206.0M weighted-average common shares outstanding, for the same period in 2017.

The $148.00M of FFO for the three-month period ended March 31, 2018 includes the impact of $7.80M in provisions for uncollectible accounts, $4.10M of non-cash stock-based compensation expense, a $2.00M purchase option buyout, and $0.60M in unrealized gain on warrants. Omega received warrants to purchase Genesis common stock in December 2017 and March 2018 in connection with its Genesis master lease and term loan amendments.

The $181.00M of FFO for the three-month period ended March 31, 2017 includes the impact of $3.70M of non-cash stock-based compensation expense and $2.40M in provisions for uncollectible accounts, offset by a $10.40M non-cash contractual settlement.

Adjusted FFO was $161.30M, or $0.78 per common share, for the three-month period ended March 31, 2018, contrast to $176.70M, or $0.86 per common share, for the same period in 2017.

The Company offered net profit margin of 8.90%. ROE was recorded as 2.20% while beta factor was 0.36. The stock, as of recent close, has shown the weekly upbeat performance of 2.36% which was maintained at 16.45% in this year.

Eric Clapton

Eric Clapton

I am Eric Clapton and has over 14 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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