CareTrust REIT, Inc. (NASDAQ:CTRE) Q4 2018 Earnings Conference Call Transcript

Feb 14, 2019 • 01:00 pm ET


CareTrust REIT, Inc. (NASDAQ:CTRE) Q4 2018 Earnings Conference Call Transcript


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Good day ladies and gentlemen, and welcome to CareTrust REIT Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference may be recorded.

I would now like turn the conference over to host Ms. Lauren Beale, CareTrust Controller. Ma'am, you may begin.

Lauren Beale

Thank you. Welcome to CareTrust REIT Q4 and fiscal year 2018 earnings call. Please note that this call is being recorded. Before we begin, please be advised that any forward-looking statements made on today's call are based on management's current expectations, assumptions, and beliefs about CareTrust's business and the environment in which it operates.

These statements may include projections regarding future financial performance, dividends, acquisitions, investments, returns, financings, 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 herein. Listeners should not place undue reliance on forward-looking statements and are encouraged to review CareTrust's SEC filings for a more complete discussion of factors that could impact results, as well as any financial or other statistical information required by SEC Regulation G.

During the call, the company will reference non-GAAP metrics such as EBITDA, FFO and FAD, and normalized EBITDA, FFO and FAD. When viewed together with its GAAP results, the company believes these measures can provide a more complete understanding of its business, but cautions that they should not be relied upon to the exclusion of GAAP reports. Except as required by law, CareTrust REIT 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 reasons. Listeners are also advised that CareTrust, yesterday, filed its Form 10-Q and accompanying press release, and its quarterly financial supplement, each of which can be accessed on the Investor Relations section of CareTrust's Web site at A replay of this call will also be available on the Web site for a limited period.

Management on the call this morning include Bill Wagner, Chief Financial Officer; Dave Sedgwick, Chief Operating Officer; Mark Lamb, Chief Investment Officer; and Eric Gillis, Director of Asset Management.

I will now turn the call over to Greg Stapley, CareTrust REIT's Chairman and CEO.

Greg Stapley

Thanks, Lauren. Good morning and welcome everybody. 2018 started as a somewhat difficult year for us here at CareTrust, but we're pleased to be reporting that we finished the year with FFO per share of $1.28, which was in line with both consensus and our guidance, and a net debt to EBITDA year-end at an all-time low of 3.3 times. It was actually really a little bit better than that. Had we left our aftermarket program in the barn during the second-half and avoided the dilution we took, we still could've posted a net debt to EBITDA well below the low end