Four Corners Property Trust, Inc. Announces Second Quarter 2016 Earnings

MILL VALLEY, Calif.--()--Four Corners Property Trust, Inc. (“FCPT” or the “Company”, NYSE:FCPT) announced today its operating results for the quarter ended June 30, 2016.

A supplemental financial and operating report that contains non-GAAP measures and other defined terms, along with this press release, has been posted to the investor relations section of the Company’s website at http://investors.fourcornerspropertytrust.com/.

Highlights for the Quarter Ended June 30, 2016:

  • Net income of $14.8 million, or $0.25 per diluted common share.
  • GAAP rental income of $26.2 million, consisting of $23.6 million in cash rents and $2.6 million of straight-line rent adjustments, earned on the 418 properties leased to Darden Restaurants.
  • NAREIT-defined Funds from Operations (FFO) of $19.9 million, or $0.33 per diluted common share.
  • Adjusted Funds from Operations (AFFO) of $18.2 million, or $0.30 per diluted common share.
  • General and administrative (G&A) expenses for the quarter of $2.5 million including $0.4 million of non-cash, stock-based compensation. Management reconfirms its guidance for an annual G&A run rate of approximately $10 million, excluding non-cash, stock-based compensation and acquisition transaction costs.
  • Dividend of $0.2425 per common share for the second quarter of 2016.
  • Approximately $370 million of liquidity at quarter-end from available cash and capacity on the Company’s undrawn $350 million, 4-year revolving credit facility.

CEO William H. Lenehan’s Comments:

“During the second quarter of the year we built a significant acquisition pipeline. Our first acquisitions were announced subsequent to quarter end and we have numerous additional properties that are in diligence currently. We intend to continue our diversification and growth strategy of acquiring well located, net-leased restaurant properties with creditworthy operators. Our existing portfolio continues to perform as expected.”

Real Estate Portfolio:

As of June 30, 2016, the Company’s portfolio consisted of 424 restaurant properties located in 44 states. The properties are 100% occupied with 418 properties leased to Darden Restaurants under long-term, triple net leases with a weighted average remaining lease term of approximately 14.0 years and an estimated portfolio weighted average EBITDAR to Lease Rent coverage of 4.3x. The remaining six properties are owned and ground leased properties operated by a taxable REIT subsidiary of FCPT under a franchise agreement with LongHorn Steakhouse.

Conference Call Information:

Company management will host a conference call and audio webcast on Wednesday, August 3, 2016 at 2:00 pm Eastern Time to discuss the results. Presentation materials will be posted prior to the call on the Company’s website, www.fourcornerspropertytrust.com.

Interested parties can listen to the call via the following:

Internet: Go to http://dpregister.com/10090176 at least 15 minutes prior to start time of the call in order to register and to download any necessary audio software. Please note for those that register, the dial-in number will be provided upon registration.

Phone: 1-888-346-5243 (domestic) / 1-412-317-5120 (international). Participants not pre-registered must ask to be joined into the Four Corners Property Trust call.

Replay: Available through November 3, 2016 by dialing 1-877-344-7529 (domestic) / 1-412-317-0088 (international), Access Code 10090176

About FCPT:

FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties. The Company will seek to grow its portfolio by acquiring additional real estate to lease, on a triple net basis, for use in the restaurant and related food services industry.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding the Company’s intent, belief or expectations, including, but not limited to, statements regarding: operating and financial performance; and expectations regarding the making of distributions and the payment of dividends. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made and, except in the normal course of the Company’s public disclosure obligations, the Company expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any statement is based. Forward-looking statements are based on management’s current expectations and beliefs and the Company can give no assurance that its expectations or the events described will occur as described. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. Factors that could have a material adverse effect on the Company’s operations and future prospects or that could cause actual results to differ materially from the Company’s expectations are included in the sections entitled “Business,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 22, 2016.

Notice Regarding Non-GAAP Financial Measures:

In addition to U.S. GAAP financial measures, this press release and the referenced supplemental financial and operating report contain and may refer to certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures and statements of why management believes these measures are useful to investors are included in the supplemental financial and operating report, which can be found in the investor relations section of our website.

Supplemental Materials and Website:

Supplemental materials on the Second Quarter 2016 operating results and other information on the company are available on the investors relations section of FCPT website at www.fourcornerspropertytrust.com

       
Four Corners Property Trust
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
 
 
Three Months Ended June 30, Six Months Ended June 30,
2016 2015 2016 2015
 
Revenues:
Rental income $ 26,210 $ - $ 52,463 $ -
Restaurant revenues   4,701     4,624   9,560   9,514
Total revenues 30,911 4,624 62,023 9,514
 
Operating expenses:
General and administrative 2,508 - 5,826 -
Depreciation and amortization 5,101 185 10,288 397
Restaurant expenses 4,593 4,335 9,291 8,848
Interest expense   3,858     -   8,039   -
Total operating expenses   16,060     4,520   33,444   9,245
 
Income before provision for income taxes 14,851 104 28,579 269
(Provision for) benefit from income taxes   (50 )   30   80,506   11
 
Net Income $ 14,801   $ 134 $ 109,085 $ 280
 
Basic net income per share $ 0.25 N/A (1) $ 2.02 N/A (1)
Diluted net income per share $ 0.25 N/A (1) $ 1.84 N/A (1)
Regular dividends declared per share $ 0.2425 N/A (1) $ 0.4850 N/A (1)
 
Weighted-average shares outstanding:
Basic 59,830,284 N/A (1) 54,102,565 N/A (1)
Diluted 59,844,059 N/A (1) 59,271,807 N/A (1)
 

(1) Due to the material change in the Company’s operations as a result of our formation transaction in November 2015, management does not consider presentation of income per share for the pre-formation period to be meaningful.

   
Four Corners Property Trust
Consolidated Balance Sheets
(In thousands, except share and per share data)
 
 
June 30, 2016
(Unaudited) December 31, 2015
ASSETS
Real estate investments:
Land $ 404,812 $ 404,812
Buildings, equipment and improvements   992,442     992,418  
Total real estate investments 1,397,254 1,397,230
Less: Accumulated depreciation   (578,827 )   (568,539 )
Total real estate investments, net 818,427 828,691
Cash and cash equivalents 38,732 98,073
Derivative assets - 165
Deferred rent 6,690 1,500
Other assets   851     1,008  
Total Assets $ 864,700   $ 929,437  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Liabilities:
Notes payable ($400,000, net of $6,902 and $7,698 of deferred financing costs, respectively) $ 393,098 $ 392,302
Derivative liabilities 9,294 477
Deferred rental revenue 7,866 7,940
Deferred tax liabilities 206 80,881
Dividends payable 14,509 -
Other liabilities   3,898     6,195  
Total liabilities   428,871     487,795  
 
Stockholders' equity:

Preferred stock, $0.0001 par value per share, 25,000,000 shares authorized, zero shares issued and outstanding

- -

Common stock, $0.0001 par value per share, 500,000,000 shares authorized, 59,885,881 and 42,741,995 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively

6 4
Additional paid-in capital 437,437 436,697
Accumulated other comprehensive loss (8,862 ) (316 )
Retained earnings   7,248     5,257  
Total stockholders' equity   435,829     441,642  
Total Liabilities and Stockholders' Equity $ 864,700   $ 929,437  
   
Four Corners Property Trust
FFO and AFFO
(Unaudited)
(In thousands, except share and per share data)
 
 

Three Months Ended
June 30, 2016

 

Six Months Ended
June 30, 2016

Funds from operations (FFO):
Net income attributable to stockholders in accordance with GAAP $ 14,801 $ 109,085
Depreciation and amortization 5,101 10,288
Deferred tax benefit from REIT election   -     (80,409 )
FFO (as defined by NAREIT) $ 19,902   $ 38,964  
Real estate acquisition costs - -
Non-cash stock-based compensation 429 746
Non-cash amortization of deferred financing costs 398 796
Other non-cash interest expense 55 435
Straight-line rent   (2,595 )   (5,191 )
Adjusted funds from operations (AFFO) $ 18,189   $ 35,750  
 
Fully diluted shares outstanding 59,844,059 59,271,807
 
FFO per diluted share $ 0.33 $ 0.66
 
AFFO per diluted share $ 0.30 $ 0.60

Contacts

Four Corners Property Trust, Inc.
Bill Lenehan, 415-965-8031
CEO
Gerry Morgan, 415-965-8032
CFO

Contacts

Four Corners Property Trust, Inc.
Bill Lenehan, 415-965-8031
CEO
Gerry Morgan, 415-965-8032
CFO