CareTrust REIT, Inc. (NASDAQ:CTRE) Q4 2015 Earnings Conference Call - Final Transcript
Feb 12, 2016 • 11:00 am ET
Welcome to the CareTrust REIT Year End 2015 Earnings Call. Listeners are advised that any forward-looking statements made on today's call are based on management's current expectations, assumptions, and beliefs about CareTrust business, and the environment in which it operates. These statements may include projections regarding future financial performance, dividends, acquisitions, and investments, returns, financing and other matters, all of which are subject to risks and uncertainties that could cause actual results to materially differ from those expressed or implied here. Listeners should not place undue reliance on forward-looking statements. It encouraged -- and are encouraged to review the company's SEC filings for more complete discussion of factors that could cause -- that could impact results, as well as any financial or other statistical information required by SEC Regulation G.
In addition, CareTrust supplements it's the GAAP, reporting with non-GAAP metrics such as EBITDA, adjusted EBITDA, FFO, normalized FFO, FAD, and normalized FAD. When viewed together with its GAAP results, the company believes that these measures can provide a more complete understanding of its business, but they should not be relied upon to the exclusion of GAAP reports.
Except as required by federal securities law, CareTrust and its affiliates do not undertake to publicly update or revise any forward-looking statements, where changes arise as a result of new information, future events, changing circumstances or for any other reason. Listeners are also advised that the company files -- the company filed its 10-K for 2015 in any accompanying press release yesterday. Both can be accessed on the Investor Relations section of CareTrust website at www.caretrustreit.com. A replay of this call will also be available on the website.
At this time, I would like to turn the call over to Mr. Greg Stapley, CareTrust Chairman and CEO.
Thanks, Kevin. Good morning everybody and thank you for joining us today. With me on the call today are Bill Wagner, our Chief Financial Officer; Dave Sedgwick, our Vice President of Operations; and Mark Lamb, our Director of Investments. We want to keep this fairly brief mostly just give you some color on a quarter in the business climate we see in general. For the members and other details, we, of course, encourage you to look through the K in our press release from yesterday.
Q4 was a breakout quarter for CareTrust. On October 1st, we closed the $177 million Liberty Pristine deal with its going in cash yield of over 9.5%. That closing fielded another piece of the puzzle for us, which began with the conversion of our old revolver from $150 million secured line to a $300 million unsecured line, and continued with our first real equity offering, which raised roughly $160 million in the substantial transformation of our balance sheet. Since then, we've used that platform and liquidity to continue pushing on the flywheel. And we've just up-sized our instance revolver to $400 million with another $250 million accordion if we need it. We've replaced almost $100 million of previously non repayable high