EL SEGUNDO, Calif., Feb. 26, 2015 (GLOBE NEWSWIRE) -- Landmark Infrastructure Partners LP (the "Partnership," "we," "us" or "our") (Nasdaq:LMRK) today announced fourth quarter and full year 2014 financial results.
Fourth Quarter and Full Year 2014 Results
For the period beginning with our initial public offering (IPO), which closed on November 19, 2014, through December 31, 2014, our net loss was $2.7 million, or $0.34 per common unit. During this same period, the Partnership generated earnings before interest, income taxes, depreciation and amortization (EBITDA) of ($1.9) million, Adjusted EBITDA of $1.5 million and distributable cash flow of $1.2 million. Net loss and EBITDA included the write-off of our predecessor's unamortized balance of deferred loan costs in connection with the IPO of $2.9 million, or $0.37 per common unit.
For the year ended December 31, 2014, the Partnership generated net income of $0.5 million, EBITDA of $9.0 million, Adjusted EBITDA of $12.4 million and distributable cash flow of $8.2 million.
Initial Public Offering
On November 14, 2014, the Partnership's common units began trading on the NASDAQ under the ticker symbol "LMRK." On November 19, 2014, the Partnership completed the offering of 2,650,000 common units, and on December 18, 2014, the Partnership sold 100,000 common units pursuant to a partial exercise of the underwriters' option to purchase additional units.
Cash Distributions
As previously announced, on January 26, 2015, the Board of Directors of the Partnership's general partner declared a prorated quarterly cash distribution of $0.1344 per unit, which corresponds to a minimum quarterly distribution of $0.2875 per unit, or $1.15 per unit on an annualized basis. This distribution was prorated for the period following the closing of the IPO and was paid on February 13, 2015.
Capital and Liquidity
As of December 31, 2014, the Partnership had $74.0 million of outstanding borrowings under its revolving credit facility and approximately $116.0 million of undrawn borrowing capacity, subject to compliance with certain covenants. During the fourth quarter, the Partnership swapped the floating one-month LIBOR rate on $70.0 million of its outstanding borrowings to a fixed rate of 1.52% for a four-year period beginning December 24, 2014. On February 5, 2015, the Partnership swapped the floating rate on an additional $25.0 million of borrowings at a fixed rate of 1.29% for a four-year period beginning April 13, 2015.
Guidance
The Partnership's sponsor, Landmark Dividend, has expressed its intent to offer us the right to purchase assets with annual rents ranging from $15.0 to $18.0 million over the next 12 months. These drop-downs, combined with organic portfolio growth expected from contractual rent escalators, leasing activity and revenue sharing arrangements, are expected to drive distribution growth of 10% to 15% over the minimum quarterly distribution ("MQD") of $0.2875 per unit ($1.15 per unit on an annualized basis) by the end of 2015.
Conference Call Information
The Partnership will hold a conference call on Thursday, February 26, 2015, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to discuss its fourth quarter 2014 financial and operating results. The call can be accessed via a live webcast at http://investor.landmarkmlp.com, or by dialing 877-930-8063 inside the U.S. and Canada. Investors outside the U.S. and Canada should dial 253-336-7764. The passcode for both numbers is 81941697.
A webcast replay will be available approximately two hours after the completion of the conference call through April 30, 2015 at http://investor.landmarkmlp.com. The replay is also available through March 8, 2015 by dialing 855-859-2056 or 404-537-3406 and entering the access code 81941697.
About Landmark Infrastructure Partners
The Partnership is a growth-oriented master limited partnership formed to acquire, own and manage a portfolio of real property interests that the Partnership leases to companies in the wireless communication, outdoor advertising and renewable power generation industries. Headquartered in El Segundo, California, the Partnership's real property interests consist of a diversified portfolio of real estate interests located in 42 states and the District of Columbia, entitling the Partnership to rental payments from leases on approximately 700 tenant sites.
Non-GAAP Financial Measures
We define EBITDA as net income before interest, income taxes, depreciation and amortization, and we define Adjusted EBITDA as EBITDA before impairments, acquisition-related costs, unrealized and realized gain or loss on derivatives, loss on extinguishment of debt, unit-based compensation, straight line rental adjustments, amortization of above- and below-market lease intangibles, and the capital contribution to fund our general and administrative expense reimbursement. We define distributable cash flow as Adjusted EBITDA less cash interest paid, current cash income tax paid and maintenance capital expenditures. Distributable cash flow will not reflect changes in working capital balances. EBITDA and Adjusted EBITDA should not be considered an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, EBITDA and Adjusted EBITDA should be compared with our reported net income in accordance with GAAP, as presented in our combined financial statements.
Adjusted EBITDA and distributable cash flow are non GAAP supplemental financial measures that management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
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our operating performance as compared to other publicly traded limited partnerships, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods;
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the ability of our business to generate sufficient cash to support our decision to make distributions to our unitholders;
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our ability to incur and service debt and fund capital expenditures; and
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the viability of acquisitions and the returns on investment of various investment opportunities.
We believe that the presentation of EBITDA and Adjusted EBITDA provides information useful to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to EBITDA, Adjusted EBITDA and distributable cash flow are net income and net cash provided by operating activities. EBITDA and Adjusted EBITDA should not be considered as an alternative to GAAP net income, net cash provided by (used in) operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Each of EBITDA, Adjusted EBITDA and distributable cash flow has important limitations as analytical tools because they exclude some, but not all, items that affect net income and net cash provided by operating activities, and these measures may vary from those of other companies. You should not consider EBITDA, Adjusted EBITDA and distributable cash flow in isolation or as a substitute for analysis of our results as reported under GAAP. As a result, because EBITDA, Adjusted EBITDA and distributable cash flow may be defined differently by other companies in our industry, EBITDA, Adjusted EBITDA and distributable cash flow as presented below may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. For a reconciliation of EBITDA, Adjusted EBITDA and distributable cash flow to the most comparable financial measures calculated and presented in accordance with GAAP, please see the "Reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow" table below.
Safe Harbor
This release contains forward-looking statements within the meaning of federal securities laws. These statements discuss future expectations, contain projections of results of operations or of financial condition or state other forward-looking information. You can identify forward-looking statements by words such as "anticipate," "believe," "estimate," "expect," "forecast," "project," "could," "may," "should," "would," "will" or other similar expressions that convey the uncertainty of future events or outcomes. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Partnership's control and are difficult to predict. These statements are often based upon various assumptions, many of which are based, in turn, upon further assumptions, including examination of historical operating trends made by the management of the Partnership. Although the Partnership believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies, which are difficult or impossible to predict and are beyond its control, the Partnership cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions. Examples of forward-looking statements in this press release include the discussion of potential acquisitions from our sponsor and our expected distribution growth. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements contained in the Partnership's filings with the U.S. Securities and Exchange Commission, including the Form S-11 and prospectus relating to the initial public offering of the Partnership's common units and the Partnership's annual report on Form 10-K for the year ended December 31, 2014. These risks could cause the Partnership's actual results to differ materially from those contained in any forward-looking statement.
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LANDMARK INFRASTRUCTURE PARTNERS LP |
CONSOLIDATED AND COMBINED STATEMENTS OF INCOME |
(UNAUDITED) |
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Three Months Ended
December 31, |
Year ended December 31, |
|
2014 |
2013 |
2014 |
2013 |
Revenue |
|
|
|
|
Rental revenue |
$ 3,443,618 |
$ 3,362,089 |
$ 13,489,430 |
$ 11,870,153 |
Interest income on receivables |
186,036 |
174,685 |
709,030 |
742,185 |
Total revenue |
3,629,654 |
3,536,774 |
14,198,460 |
12,612,338 |
Expenses |
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|
|
|
Management fees to affiliate |
56,452 |
100,311 |
362,495 |
370,625 |
Property operating |
3,582 |
— |
24,720 |
6,454 |
General and administrative |
237,119 |
184,998 |
816,798 |
722,028 |
Acquisition-related |
8,108 |
— |
37,883 |
318,600 |
Amortization |
893,471 |
859,405 |
3,497,552 |
3,227,303 |
Impairments |
250,384 |
691,721 |
258,834 |
1,005,478 |
Total expenses |
1,449,116 |
1,836,435 |
4,998,282 |
5,650,488 |
Other income and expenses |
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|
Interest expense |
(1,483,248) |
(1,062,357) |
(4,984,054) |
(3,840,359) |
Loss on early extinguishment of debt |
(2,905,259) |
— |
(2,905,259) |
— |
Realized loss on derivatives |
(213,181) |
— |
(213,181) |
— |
Unrealized gain (loss) on derivatives |
(563,770) |
283,930 |
(552,268) |
1,279,176 |
Total other income and expenses |
(5,165,458) |
(778,427) |
(8,654,762) |
(2,561,183) |
Net income (loss) |
$ (2,984,920) |
$ 921,912 |
$ 545,416 |
$ 4,400,667 |
Less: Net income (loss) attributable to Predecessor |
(286,572) |
|
3,243,764 |
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Limited partners' interest in net loss |
$ (2,698,348) |
|
$ (2,698,348) |
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Net loss per limited partner unit (basic and diluted): |
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Common units |
$ (0.34) |
|
$ (0.34) |
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Subordinated units |
$ (0.34) |
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$ (0.34) |
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Other Data: |
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Total leased tenant sites (end of period) |
695 |
672 |
695 |
672 |
Total available tenant sites (end of period) |
701 |
675 |
701 |
675 |
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LANDMARK INFRASTRUCTURE PARTNERS LP |
CONSOLIDATED AND COMBINED BALANCE SHEETS |
(UNAUDITED) |
|
December 31, |
|
2014 |
2013 |
Assets |
|
|
Land |
$ 1,895,117 |
$1,895,117 |
Real property interests |
173,009,873 |
167,797,881 |
Total land and real property interests |
174,904,990 |
169,692,998 |
Accumulated amortization of real property interest |
(5,831,342) |
(2,844,900) |
Land and net real property interests |
169,073,648 |
166,848,098 |
Investments in receivables, net |
8,665,274 |
9,085,281 |
Cash and cash equivalents |
311,108 |
1,037,327 |
Rent receivables, net |
80,711 |
112,115 |
Due from Landmark and affiliates |
659,722 |
648,701 |
Deferred loan cost, net |
2,838,879 |
3,240,779 |
Deferred rent receivable |
279,324 |
173,812 |
Derivative assets |
— |
455,561 |
Other intangible assets, net |
3,783,653 |
4,336,699 |
Other assets |
399,222 |
— |
Total assets |
$186,091,541 |
$ 185,938,373 |
Liabilities and equity |
|
|
Revolving credit facility |
$ 74,000,000 |
$— |
Secured debt facilities |
— |
89,336,688 |
Accounts payable and accrued liabilities |
141,508 |
945,664 |
Due to Landmark and affiliates |
— |
583,689 |
Other intangible liabilities, net |
5,685,590 |
6,192,391 |
Prepaid rent |
1,532,372 |
1,346,060 |
Derivative liabilities |
289,808 |
193,101 |
Total liabilities |
81,649,278 |
98,597,593 |
Commitments and contingencies |
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Equity |
104,442,263 |
87,340,780 |
Total liabilities and equity |
$186,091,541 |
$ 185,938,373 |
LANDMARK INFRASTRUCTURE PARTNERS LP |
REAL PROPERTY INTEREST TABLE |
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Available Tenant |
Leased Tenant |
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Sites(1) |
Sites |
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Average |
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Average |
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Average |
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Remaining |
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Remaining |
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Monthly |
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Percentage |
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Number of |
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Property |
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Lease |
Tenant Site |
Effective Rent |
Quarterly |
of Quarterly |
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Infrastructure |
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Interest |
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Term |
Occupancy |
Per Tenant |
Rental |
Rental |
Real Property Interest |
Locations(1) |
Number |
(Years) |
|
Number |
(Years)(2) |
Rate(3)(4) |
Site(5)(6) |
Revenue(6) |
Revenue(6) |
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Tenant Lease Assignment with Underlying Easement |
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Wireless Communication |
356 |
480 |
75.0(7) |
474 |
19.1 |
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$ 2,338,636 |
68% |
Outdoor Advertising |
84 |
111 |
86.9(7) |
111 |
14.0 |
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|
429,024 |
12% |
Renewable Power Generation |
1 |
2 |
29.5 |
2 |
23.1 |
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|
8,944 |
—% |
Subtotal |
441 |
593 |
77.1(7) |
587 |
18.1 |
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$ 2,776,604 |
80% |
Tenant Lease Assignment only(8) |
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Wireless Communication |
64 |
95 |
54.8 |
95 |
18.2 |
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$ 579,710 |
17% |
Outdoor Advertising |
7 |
7 |
81.9 |
7 |
17.1 |
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37,367 |
1% |
Subtotal |
71 |
102 |
56.6 |
102 |
18.1 |
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$ 617,077 |
18% |
Tenant Lease on Fee Simple |
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Wireless Communication |
2 |
5 |
99.0(7) |
5 |
11.5 |
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$ 21,817 |
1% |
Outdoor Advertising |
1 |
1 |
99.0(7) |
1 |
18.5 |
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|
28,120 |
1% |
Subtotal |
3 |
6 |
99.0(7) |
6 |
12.7 |
|
|
$ 49,937 |
2% |
Total |
515 |
701 |
74.3(9) |
695 |
18.1 |
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$ 3,443,618 |
100% |
Aggregate Portfolio |
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Wireless Communication |
422 |
580 |
71.9 |
574 |
18.9 |
99% |
$ 1,642 |
$ 2,940,163 |
86% |
Outdoor Advertising |
92 |
119 |
86.7 |
119 |
14.2 |
100% |
1,348 |
494,511 |
14% |
Renewable Power Generation |
1 |
2 |
29.5 |
2 |
23.1 |
100% |
1,491 |
8,944 |
—% |
Total |
515 |
701 |
74.3(9) |
695 |
18.1 |
99% |
$ 1,592 |
$ 3,443,618 |
100% |
_____________________________ |
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(1) "Available Tenant Sites" means the number of individual sites that could be leased. For example, if we have an easement on a single rooftop, on which three different tenants can lease space from us, this would be counted as three "tenant sites," and all three tenant sites would be at a single infrastructure location with the same address. |
(2) Assumes the exercise of all remaining renewal options of tenant leases. Assuming no exercise of renewal options, the average remaining lease terms for our wireless communication, outdoor advertising, renewable power generation and aggregate portfolios as of December 31, 2014 were 2.6, 7.2, 23.1 and 3.5 years, respectively. |
(3) Represents number of leased tenant sites divided by number of available tenant sites. |
(4) Occupancy and average monthly effective rent per tenant site are shown only on an aggregate portfolio basis by industry. |
(5) Represents total monthly revenue excluding the impact of amortization of above and below market lease intangibles divided by the number of leased tenant sites. |
(6) Represents GAAP rental revenue recognized under existing tenant leases for the three months ended December 31, 2014. Excludes interest income on receivables. |
(7) Fee simple ownership and perpetual easements are shown as having a term of 99 years for purposes of calculating the average remaining term. |
(8) Reflects "springing lease agreements" whereby the cancellation or nonrenewal of a tenant lease entitles us to enter into a new ground lease with the property owner (up to the full property interest term) and a replacement tenant lease. The remaining lease assignment term is, therefore, equal to or longer than the remaining lease term. Also represents properties for which the "springing lease" feature has been exercised and has been replaced by a lease for the remaining lease term. |
(9) Excluding perpetual ownership rights, the average remaining property interest term on our tenant sites is approximately 57 years. |
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LANDMARK INFRASTRUCTURE PARTNERS LP |
RECONCILIATION OF EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW |
(UNAUDITED) |
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|
Three Months Ended |
|
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December 31, |
Year ended December 31, |
|
2014 |
2013 |
2014 |
2013 |
Reconciliation of EBITDA and Adjusted EBITDA to Net Income (loss) |
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Net income (loss) |
$ (2,984,920) |
$ 921,912 |
$ 545,416 |
$ 4,400,667 |
Interest expense |
1,483,248 |
1,062,357 |
4,984,054 |
3,840,359 |
Amortization expense |
893,471 |
859,405 |
3,497,552 |
3,227,303 |
EBITDA |
$ (608,201) |
$ 2,843,674 |
$ 9,027,022 |
$ 11,468,329 |
Impairments |
250,384 |
691,721 |
258,834 |
1,005,478 |
Acquisition-related |
8,108 |
— |
37,883 |
318,600 |
Unrealized (gain) loss on derivatives |
563,770 |
(283,930) |
552,268 |
(1,279,176) |
Realized loss on derivatives |
213,181 |
— |
213,181 |
— |
Loss on early extinguishment of debt |
2,905,259 |
— |
2,905,259 |
— |
Straight line rent adjustments |
(18,336) |
(28,689) |
(105,512) |
(152,051) |
Amortization of above- and below-market rents, net |
(143,898) |
(122,732) |
(551,182) |
(430,909) |
Unit-based compensation |
17,500 |
— |
17,500 |
— |
Deemed capital contribution due to cap on general and administrative expense reimbursement(1) |
12,349 |
— |
12,349 |
— |
Adjusted EBITDA |
$ 3,200,116 |
$ 3,100,044 |
$ 12,367,602 |
$ 10,930,271 |
Reconciliation of Adjusted EBITDA to Net Cash Provided by Operating Activities |
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|
Net cash provided by operating activities |
$ 3,323,246 |
$ 2,003,124 |
$ 8,802,966 |
$ 8,271,287 |
Unit-based compensation |
(17,500) |
— |
(17,500) |
— |
Unrealized (gain) loss on derivatives |
(563,770) |
283,930 |
(552,268) |
1,279,176 |
Loss on early extinguishment of debt |
(2,905,259) |
— |
(2,905,259) |
— |
Amortization expense |
(893,471) |
(859,405) |
(3,497,552) |
(3,227,303) |
Amortization of above- and below-market rents, net |
143,898 |
122,732 |
551,182 |
430,909 |
Amortization of deferred loan costs |
(201,063) |
(259,598) |
(864,318) |
(751,352) |
Receivables interest accretion |
2,543 |
(55) |
51,899 |
68,977 |
Impairments |
(250,384) |
(691,721) |
(258,834) |
(1,005,478) |
Allowance for doubtful accounts and loan losses |
— |
(25,334) |
(4,465) |
(25,334) |
Working capital changes |
(1,623,160) |
348,239 |
(760,435) |
(640,215) |
Net income (loss) |
$ (2,984,920) |
$ 921,912 |
$ 545,416 |
$ 4,400,667 |
Interest expense |
1,483,248 |
1,062,357 |
4,984,054 |
3,840,359 |
Amortization expense |
893,471 |
859,405 |
3,497,552 |
3,227,303 |
EBITDA |
$ (608,201) |
$ 2,843,674 |
$ 9,027,022 |
$ 11,468,329 |
Less: |
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|
|
Unrealized gain on derivatives |
— |
(283,930) |
— |
(1,279,176) |
Straight line rent adjustments |
(18,336) |
(28,689) |
(105,512) |
(152,051) |
Amortization of above- and below-market rents, net |
(143,898) |
(122,732) |
(551,182) |
(430,909) |
Add: |
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|
|
Impairments |
250,384 |
691,721 |
258,834 |
1,005,478 |
Acquisition-related |
8,108 |
— |
37,883 |
318,600 |
Unrealized loss on derivatives |
563,770 |
— |
552,268 |
— |
Realized loss on derivatives |
213,181 |
— |
213,181 |
— |
Loss on early extinguishment of debt |
2,905,259 |
— |
2,905,259 |
— |
Unit-based compensation |
17,500 |
— |
17,500 |
— |
Deemed capital contribution due to cap on general and administrative expense reimbursement(1) |
12,349 |
— |
12,349 |
— |
Adjusted EBITDA |
$ 3,200,116 |
$ 3,100,044 |
$ 12,367,602 |
$ 10,930,271 |
Less: |
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Expansion capital expenditures(2) |
(1,869,243) |
— |
(5,384,510) |
(30,306,259) |
Cash interest expense |
(1,282,185) |
(802,759) |
(4,119,736) |
(3,089,007) |
Add: |
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Borrowings and capital contributions to fund expansion capital expenditures |
1,869,243 |
— |
5,384,510 |
30,306,259 |
Distributable cash flow |
$ 1,917,931 |
$ 2,297,285 |
$ 8,247,866 |
$ 7,841,264 |
____________________________ |
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(1) Under the omnibus agreement that we entered into at the closing of the IPO, we agreed to reimburse Landmark for expenses related to certain general and administrative services Landmark will provide to us in support of our business, subject to a quarterly cap equal to the greater of $162,500 and 3% of our revenue during the preceding calendar quarter. This cap on expenses will last until the earlier to occur of: (i) the date on which our revenue for the immediately preceding four consecutive fiscal quarters exceeded $80.0 million and (ii) the fifth anniversary of the closing of the IPO. The full amount of general and administrative expenses incurred will be reflected in our income statements, and to the extent such general and administrative expenses exceed the cap amount, the amount of such excess will be reflected in our financial statements as a capital contribution from Landmark rather than as a reduction of our general and administrative expenses, except for expenses that would otherwise be allocated to us, which are not included in our general and administrative expenses. |
(2) Our predecessor has historically incurred expansion capital expenditures through the acquisition of real property interests, acquiring 26 and 171 tenant sites for the years ended December 31, 2014 and 2013, respectively. Acquisitions by our predecessor represented only a portion of Landmarks' total acquisitions for these periods. |
(3) We have historically had no maintenance capital expenditures because our tenant lease arrangements are effectively triple net, which generally means our tenants or the underlying property owners are contractually responsible for property-level operating expenses, including maintenance capital expenditures, taxes and insurance. We anticipate that effectively triple net lease arrangements will continue to represent substantially all of our tenant leases and, correspondingly, that we will continue to have no maintenance capital expenditures. |
LANDMARK INFRASTRUCTURE PARTNERS LP |
RECONCILIATION OF OPERATIONS, EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW FOR THE PREDECESSOR AND PARTNERSHIP |
(UNAUDITED) |
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For the Period |
For the Period |
|
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From |
From |
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November 19, 2014 to |
January 1, 2014 to |
For the Year Ended |
|
December 31, 2014 |
November 18, 2014 |
December 31, |
Reconciliation of Predecessor and Partnership: |
Successor |
Predecessor |
Partnership |
Revenue: |
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Rental revenue |
$ 1,604,935 |
$ 11,884,495 |
$ 13,489,430 |
Interest income |
75,836 |
633,194 |
709,030 |
Total revenue |
1,680,771 |
12,517,689 |
14,198,460 |
Expenses: |
|
|
|
Management fees to affiliate |
— |
362,495 |
362,495 |
Property operating |
500 |
24,220 |
24,720 |
General and administrative |
157,606 |
659,192 |
816,798 |
Acquisition-related |
— |
37,883 |
37,883 |
Amortization |
414,873 |
3,082,679 |
3,497,552 |
Impairments |
250,384 |
8,450 |
258,834 |
Total expenses |
823,363 |
4,174,919 |
4,998,282 |
Other income and expenses |
|
|
|
Interest expense |
(360,689) |
(4,623,365) |
(4,984,054) |
Loss on early extinguishment of debt |
(2,905,259) |
— |
(2,905,259) |
Realized loss on derivatives |
— |
(213,181) |
(213,181) |
Unrealized loss on derivatives |
(289,808) |
(262,460) |
(552,268) |
Total other income and expenses |
(3,555,756) |
(5,099,006) |
(8,654,762) |
Net income (loss) |
$ (2,698,348) |
$ 3,243,764 |
$ 545,416 |
Add: |
|
|
|
Interest expense |
360,689 |
4,623,365 |
4,984,054 |
Amortization expense |
414,873 |
3,082,679 |
3,497,552 |
EBITDA |
$ (1,922,786) |
$ 10,949,808 |
$ 9,027,022 |
Less: |
|
|
|
Straight line rent adjustments |
(11,914) |
(93,598) |
(105,512) |
Amortization of above- and below-market rents |
(66,202) |
(484,980) |
(551,182) |
Add: |
|
|
|
Impairments |
250,384 |
8,450 |
258,834 |
Acquisition-related expenses |
— |
37,883 |
37,883 |
Loss on early extinguishment of debt |
2,905,259 |
— |
2,905,259 |
Unrealized loss on derivatives |
289,808 |
262,460 |
552,268 |
Realized loss on derivatives |
— |
213,181 |
213,181 |
Unit-based compensation |
17,500 |
— |
17,500 |
Deemed capital contribution due to cap on general and administrative expense reimbursement(1) |
12,349 |
— |
12,349 |
Adjusted EBITDA |
$ 1,474,398 |
$ 10,893,204 |
$ 12,367,602 |
Less: |
|
|
|
Expansion capital expenditures(2) |
— |
(5,384,510) |
(5,384,510) |
Cash interest expense |
(292,186) |
(3,827,550) |
(4,119,736) |
Add: |
|
|
|
Borrowings and capital contributions to fund expansion capital expenditures |
— |
5,384,510 |
5,384,510 |
Distributable cash flow |
$ 1,182,212 |
$ 7,065,654 |
$ 8,247,866 |
|
|
|
|
Annualized minimum quarterly distribution per unit |
$ 1.15 |
n/a |
$ 1.15 |
Distributions to common unitholders |
632,174 |
n/a |
632,174 |
Distributions to Landmark Dividend – subordinated units |
421,359 |
n/a |
421,359 |
Total distributions to our unitholders |
$ 1,053,533 |
n/a |
$ 1,053,533 |
Excess of distributable cash flow over aggregate annualized minimum quarterly distribution |
$ 128,679 |
n/a |
$ n/a |
______________________________ |
|
|
|
(1) Under the omnibus agreement that we entered into at the closing of the IPO, we agreed to reimburse Landmark for expenses related to certain general and administrative services Landmark will provide to us in support of our business, subject to a quarterly cap equal to the greater of $162,500 and 3% of our revenue during the preceding calendar quarter. This cap on expenses will last until the earlier to occur of: (i) the date on which our revenue for the immediately preceding four consecutive fiscal quarters exceeded $80.0 million and (ii) the fifth anniversary of the closing of the IPO. The full amount of general and administrative expenses incurred will be reflected in our income statements, and to the extent such general and administrative expenses exceed the cap amount, the amount of such excess will be reflected in our financial statements as a capital contribution from Landmark rather than as a reduction of our general and administrative expenses, except for expenses that would otherwise be allocated to us, which are not included in our general and administrative expenses. |
(2) Our predecessor has historically incurred expansion capital expenditures through the acquisition of real property interests, acquiring 26 and 171 tenant sites for the years ended December 31, 2014 and 2013, respectively. Acquisitions by our predecessor represented only a portion of Landmarks' total acquisitions for these periods. |
(3) We have historically had no maintenance capital expenditures because our tenant lease arrangements are effectively triple net, which generally means our tenants or the underlying property owners are contractually responsible for property-level operating expenses, including maintenance capital expenditures, taxes and insurance. We anticipate that effectively triple net lease arrangements will continue to represent substantially all of our tenant leases and, correspondingly, that we will continue to have no maintenance capital expenditures. |
CONTACT: Investor Relations, (310) 598-3173
ir@landmarkmlp.com