LTC Properties Inc. (NYSE:LTC) Q1 2016 Earnings Conference Call - Final Transcript

May 03, 2016 • 11:00 am ET


LTC Properties Inc. (NYSE:LTC) Q1 2016 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good morning, and welcome to the LTC Properties First Quarter 2016 Analyst and Investor Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Wendy Simpson, CEO and Chairman. Please go ahead.

Wendy Simpson

Thank you. Good morning, everyone, and thank you for joining us today. Last week, we announced our 2 guest speakers for today's call, and I'd like to welcome Dr. Craig Flashner, a Principal of Prestige Healthcare; and Mr. Mark Rockwell, a Principal of Anthem Memory Care. They are joining Pam Kessler, LTC's EVP and CFO; Clint Malin, our EVP and CIO; and me on this call.

Dr. Flashner's company, Prestige Healthcare, is a privately held operating company providing post-acute care, assisted living and independent living services and other rehabilitative and healthcare services at 68 facilities in 7 states. Today, Prestige operates 22 properties in LTC's portfolio. Mr. Rockwell's company, Anthem Memory Care, is privately held and develops and operates stand-alone, private-pay memory care communities.

To date, Anthem has developed and opened 6 communities in 3 states, including 5 owned by LTC, and has 3 projects in various stages of development all with LTC. Just last week, LTC purchased 2 memory care properties from another operator in Kansas. And these will be the first already opened and operating properties that we have done with Anthem. In the first 3 months of 2016, Pam, Clint and I have had the opportunity to meet one-on-one with investors and analysts.

And from these meetings, we took away a few recurring questions and possible concerns. Because LTC has a high concentration of nonpublic operators, investors and analysts may perceive they cannot get a good feel for our individual operators and may view those operators as less sophisticated and not able to effectively respond to the always changing, reimbursement and competitive environments. LTC believes the local regional operator has many advantages over the larger national operator.

These operators are dedicated to the states in which they operate, and now the regulators, regulations, legislative proposals, licensing requirements and issues, competition, networks and referral sources, labor environment, just to name a few. Also, the local regional operator usually can make decisions about classes in revenue streams and effectuate needed operational changes more quickly than the large national provider.

Later during today's call, Dr. Flashner will comment on what Prestige Healthcare does to meet operating challenges, how he sees today's post-acute operating environment and how he views the more immediate future of the post-acute industry. We are, of course, not in any way denigrating our larger national operators who we continue to highly valuate -- highly value and support.

We are opening a discussion of our large investment in the local regional operator and why LTC maintains a very positive view of these operators. Another discussion point in our industry has been a perceived overdevelopment in the private-pay sector of assisted living and memory care. Mr. Rockwell's company, Anthem Memory Care, has been focused on the need