EX-99.2 3 v402885_ex99-2.htm EXHIBIT 99.2

 

Exhibit 99.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter 2014 

Supplemental Analyst Package

 

 

 

 

 

 

 

  Contact:
  Investor Relations
  704-496-2571
  Investor.Relations@CampusCrest.com

  

 
 

 

FOURTH QUARTER 2014

SUPPLEMENTAL ANALYST PACKAGE

TABLE OF CONTENTS

 

Financial Highlights 3
   
Condensed Consolidated Balance Sheets 4
   
Condensed Consolidated Statements of Operations 5
   
Reconciliation of Net Loss Attributable to Common Stockholders to FFO, FFOA and Net Operating Income 6 - 7
   
Wholly Owned Property Results of Operations 8
   
Quarterly Wholly Owned Property Results of Operations 9
   
Same Store Wholly Owned Property Operating Expenses 10
   
HSRE, Beaumont and Copper Beech Joint Venture Property Results of Operations 11
   
Capital Structure as of December 31, 2014 12
   
Outstanding Debt and Maturity Schedule 13
   
HSRE & Beaumont Joint Venture Debt Summary 14
   
Copper Beech Joint Venture Debt Summary 15
   
Illustrative Pro Rata Debt Schedule 16
   
Portfolio Overview and Occupancy 17 - 18
   
Copper Beech Portfolio Overview and Occupancy 19
   
Illustrative Bridges to Key Metrics 20
   
Investor Information 21
   
Forward-Looking Statements 22

 

Page 2
 

  

CAMPUS CREST COMMUNITIES
 
FINANCIAL HIGHLIGHTS (unaudited)
(in $000s, except per share and per bed data)
 
 

  Three Months Ended December 31,   Twelve Months Ended December 31,
  2014   2013   $ Change   % Change   2014   2013   $ Change   % Change
                               
Total revenues $28,731   $24,768   $3,963   16.0%   $106,741   $92,070   $14,671   15.9%
NOI                15,290                  13,482   1,808   13.4%                  58,715                  50,904   7,811   15.3%
Net loss attributable to common stockholders 1 (34,790)   (11,990)   (22,800)   NM   (170,204)   (4,531)   (165,673)   NM
Net loss per share - basic and diluted ($0.53)   ($0.18)   ($0.35)   NM   ($2.61)   ($0.07)   ($2.54)   NM
FFO 2 (22,356)   9,189   (31,545)   NM   (118,511)   44,209   (162,721)   NM
FFO per share - diluted 2, 3 ($0.34)   $0.14   ($0.48)   NM   ($1.82)   $0.73   ($2.55)   NM
FFOA 2 3,063   13,515   (10,452)   (77.3%)   31,292   48,112   (16,820)   (35.0%)
FFOA per share - diluted 2, 3 $0.05   $0.21   ($0.16)   (76.2%)   $0.48   $0.80   ($0.32)   (40.0%)
                               
Debt to total market capitalization 49.6%   35.1%   n/a   14.5%   49.6%   35.1%   n/a   14.5%
                               
Operating Statistics (wholly-owned)                              
Total RevPOB 4 $531   $527   $4   0.7%   $528   $520   $8   1.6%
Average Physical Occupancy 5 89.9%   92.0%   n/a   (2.1%)   89.7%   92.2%   n/a   (2.5%)
                               

 

1 For the three and twelve months ended December 31, 2014 and 2013, results include certain write-downs and impairments, primarily related to impairment of unconsolidated entities, impairments of land and predevelopment costs, effect of not exercising Copper Beech purchase option and write off of other corporate assets.

2 For the three and twelve months ended December 31, 2014 and the period March 18, 2013 to December 31, 2013, includes results from the Company’s investment in Copper Beech.  The Company made its initial investment in Copper Beech on March 18, 2013 and subsequently made additional investments.  On September 30, 2013, the Company entered into an amendment to the purchase and sale agreement that enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in seven properties until the Company exercises future purchase options. On August 18, 2014, the Company elected to not exercise the first purchase option and reverted to a 48% interest ownership interest in 35 operating properties. As of December 31, 2014, the Company held a 48% effective interest in 35 operating and two non-operating properties which are unc onsolidated and a 48% interest in one consolidated operating property.

3 Refer to page 6 for a reconciliation of FFO per share to FFOA per share.

4 Total revenue per occupied bed includes rental and service revenues.

5 Average monthly occupancy.

 

Page 3
 

 

CAMPUS CREST COMMUNITIES
 
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)  
(in $000s) 
 
 

    December 31,   December 31,
    2014   2013
         
Assets        
Investment in real estate, net:        
Student housing properties   $934,471   $716,285
Accumulated depreciation   (128,121)   (102,356)
Development in process   -     91,184
Land held for sale1   38,104   -  
Land held for investment2   7,534    -  
Investment in real estate, net   851,988   705,113
Investment in unconsolidated entities3   256,653   324,838
Cash and cash equivalents   15,240   32,054
Restricted cash 4   5,429   32,636
Student receivables, net   1,587   2,825
Cost and earnings in excess of construction billings   7,516   42,803
Other assets, net5   42,447   42,410
Total assets   $1,180,860   $1,182,679
         
Liabilities and equity        
Liabilities:        
Mortgage and construction loans   $300,673   $205,531
Line of credit and other debt   317,746   207,952
Accounts payable and accrued expenses   53,968   62,448
Construction billings in excess of cost and earnings   481   600
Other liabilities   22,092   11,167
Total liabilities   694,960   487,698
Equity:        
Preferred stock   $61   $61
Common stock   648   645
Additional common and preferred paid-in capital   770,949   773,896
Accumulated deficit and distributions6   (292,210)   (84,143)
Accumulated other comprehensive loss   (2,616)   (71)
Total stockholders' equity   476,832   690,388
Noncontrolling interests   9,069   4,593
Total equity   485,901   694,981
Total liabilities and equity   $1,180,860   $1,182,679
           

 

1 Land held for sale includes properties located in the following locations: Allendale, MI; Bellingham, WA; Boca Raton, FL; Corvallis, OR; Grand Forks, ND; Sacramento, CA; San Angelo, TX; Tempe, AZ; Tuscaloosa, AL;  and Toledo, OH. The Toledo, OH property includes the redevelopment property, which is currently in operation, as well as an undeveloped land parcel. 

2 Land held for investment includes potential Phase II sites at the following locations: Auburn, AL; Huntsville, TX; Pullman, WA; State College, PA; and Statesboro, GA.

3 As of December 31, 2013, includes the Company’s investment in Copper Beech equating to a 67% effective ownership interest in 30 properties, of which 28 are operating and two are non-operating properties.  On August 18, 2014, the Company elected to not exercise the first purchase option and reverted to a 48% interest ownership interest in 35 operating properties. As of December 31, 2014, the Company held a 48% effective interest in 35 operating and two non-operating properties which are unconsolidated and a 48% interest in one consolidated operating property.

4 As of December 31, 2014 and December 31, 2013, includes approximately $0 and $28,200, respectively, of cash held in escrow from the sale of four wholly-owned Grove-branded student housing properties on December 27, 2013.

5 Primarily includes other receivables of $21,487 including insurance proceeds and amounts due from joint ventures, deferred financing costs of $6,910, corporate fixed assets of $6,356, Company owned corporate aircraft of $3,900 and prepaid and other assets of $3,794.

6 Includes 2014 net loss of $158,004 plus dividends of $50,063.

 

Page 4
 

 

CAMPUS CREST COMMUNITIES

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in $000s, except per share data)

                           

 

    Three Months Ended December 31,   Twelve Months Ended December 31,
    2014   2013   $ Change   2014   2013   $ Change
                         
Revenues:                        
Student housing rental   $27,467               23,517   $3,950   $101,724   $87,635   $14,089
Student housing services                    725                    970                   (245)                 3,768                 3,615                    153
Property management services                    538                    281                    257                 1,249                    820                    429
Total revenues   28,731   24,768   3,963   106,741   92,070   14,671
Operating expenses:                        
Student housing operations   12,903   11,005   1,898   46,777   40,346   6,431
General and administrative   3,250   2,582   668   14,303   10,658   3,645
Severance1   6,159                      -      6,159   6,159                       -     6,159
Impairment of land, predevelopment costs and assets held for sale2   2,137                      -      2,137   31,927                       -     31,927
Write-off of corporate other assets3   7,345                      -      7,345   15,110                       -     15,110
Transaction costs4   339   286   53   2,671   1,121   1,550
Ground leases   120   87                     33   477   249                    228
Depreciation and amortization   8,822   6,546   2,276   31,696   23,700   7,996
Total operating expenses   41,076   20,506   20,570   149,120   76,074   73,046
Equity in earnings (loss) of unconsolidated entities5, 6                (5,572)                (7,335)                 1,763                (5,510)                (3,727)                (1,783)
Impairment of unconsolidated entities7                (3,702)                   (312)                (3,390)              (54,568)                   (312)              (54,256)
Effect of not exercising Copper Beech purchase option                      -                         -                         -                 (34,048)                      -                 (34,048)
Operating income (loss)   (21,619)   (3,385)   (18,234)   (136,505)   11,957   (148,462)
Nonoperating income (expense):                        
Interest expense, net                (5,526)                (4,205)                (1,321)              (13,886)              (12,969)                   (917)
Other income (expense)8                     (88)                      (7)                    (81)                      42                 1,414                (1,372)
Total nonoperating expense, net   (5,613)   (4,212)   (1,401)   (13,844)   (11,555)   (2,289)
Net income (loss) before income tax benefit (expense)   (27,233)   (7,597)   (19,636)   (150,349)   402   (150,751)
Income tax benefit (expense)   0                    421                   (421)                   (731)                    727                (1,458)
Income (loss) from continuing operations   (27,232)   (7,176)   (20,056)   (151,079)   1,129   (152,208)
Income (loss) from discontinued operations                (4,933)   (2,166)                (2,767)                (8,125)   489                (8,614)
Net income (loss)   (32,166)   (9,342)   (22,824)   (159,204)   1,618   (160,822)
Dividends on preferred stock                 3,050                 2,733                    317               12,200                 6,183                 6,017
Net loss attributable to noncontrolling interests   (426)                    (85)   (341)   (1,200)                    (34)   (1,166)
Net loss attributable to common stockholders   ($34,790)   ($11,990)   ($22,800)   ($170,204)   ($4,531)   ($165,673)
                         
Per share data - basic and diluted:                        
Income (loss) from continuing operations attributable to common stockholders   ($0.45)   ($0.15)       ($2.49)   ($0.08)    
Income (loss) from discontinued operations attributable to common stockholders   ($0.08)   ($0.03)       ($0.12)   $0.01    
Net income (loss) per share attributable to common stockholders   ($0.53)   ($0.18)       ($2.61)   ($0.07)    
                           
Weighted average common shares outstanding, diluted:                        
Diluted               65,154               64,937                   65,102               60,418    
                         

  

1 For the three months ended December 31, 2014, severance includes termination benefits for former executives in connection with our strategic repositioning.

2 For the three months ended December 31, 2014, amounts include impairment of our property in Toledo, OH.

3 For the three months ended December 31, 2014, amount primarily includes $5,499 of Enterprise Resource Planning system impairment and $1,470 of corporate aircraft impairment

4 For the three and twelve months ended December 31, 2014, includes $339 and $2,671, respectively, of transaction costs related to Copper Beech. Additionally, for the three and twelve months ended December 31, 2013, includes $286 and $1,121, respectively, of transaction costs related to Copper Beech.

5 For the three and twelve months ended December 31, 2014 and the period from March 18, 2013 to December 31, 2013, includes results from the Company’s investment in Copper Beech.  The Company made its initial investment on March 18, 2013 and subsequently made additional investments.  On September 30, 2013, the Company entered into an amendment to the purchase and sale agreement that enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in seven properties until the Company exercises future purchase options. On August 18, 2014, the Company elected to not exercise the first purchase option and reverted to a 48% interest ownership interest in 35 operating properties. As of December 31, 2014, the Company held a 48% effective interest in 35 operating and two non-operating properties which are unconsolidated and a 48% interest in one consolidated operating property.

6 For the three and twelve months ended December 31, 2014, includes $1,431 and $6,491, respectively, of fair value adjustment related to Copper Beech's debt.  For the three and twelve months ended December 31, 2013, includes $1,411 and $3,576, respectively, of fair value adjustment related to Copper Beech's debt.

7 For the three months ended December 31, 2014, relates to an impairment of our investments in Montreal.

8 For the twelve months ended December 31, 2013, includes interest income from the 8.5%, $31,700 loan made to existing investors in Copper Beech on March 18, 2013.  In conjunction with the September 30, 2013 amendment to the purchase and sale agreement, the $31,700 loan was repaid by Copper Beech.

 

Page 5
 

 

CAMPUS CREST COMMUNITIES

 

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS TO FUNDS FROM OPERATIONS ("FFO")& FUNDS FROM OPERATIONS ADJUSTED ("FFOA") (unaudited)

(in $000s, except per share data)          

 

 

  Three Months Ended December 31,   Twelve Months Ended December 31,
  2014   2013   $ Change   2014   2013   $ Change
                       
Net loss attributable to common stockholders ($34,790)   ($11,990)   ($22,800)   ($170,204)   ($4,531)   ($165,673)
Net loss attributable to noncontrolling interests (426)   (85)   (341)   (1,200)   (34)   (1,166)
Real estate related depreciation and amortization 7,683   6,910   773   27,858   25,503   2,356
Real estate related depreciation and amortization - unconsolidated entities 5,178   14,354   (9,176)   25,034   23,272   1,763
FFO available to common shares and OP units1, 2 (22,356)   9,189   (31,545)   (118,511)   44,209   (162,721)
Elimination of the following:                      
Transaction costs3 2,095   286   1,809   4,426   2,027   2,399
Impairment of land, predevelopment costs and asset held for sale 2,137   175   1,962   31,927   175   31,752
Impairment of disposed assets -   4,729   (4,729)   -   4,729   (4,729)
Copper Beech dividend equivalency4 1,200   -   1,200   1,200   -   1,200
Write off of corporate other assets 7,345   -   7,345   15,110   -   15,110
Write off of deferred financing costs -   236   (236)   -   236   (236)
Severance5 5,439   -   5,439   6,159   -   6,159
Change in valuation allowance for deferred tax asset (0)   -   (0)   731   -   731
Discontinued operations6 4,933   312   4,621   8,125   312   7,812
Impairment of unconsolidated entities 3,702   -   3,702   54,568   -   54,568
Effect of not exercising Copper Beech purchase option -   -   -   34,048   -   34,048
FV adjustment of CB debt (1,432)   (1,411)   (21)   (6,491)   (3,576)   (2,914)
Funds from operations adjusted (FFOA) available to common                      
shares and OP units $3,063   $13,515   ($10,452)   $31,292   $48,112   ($16,820)
                       
FFO per share - diluted1, 2 ($0.34)   $0.14   ($0.48)   ($1.82)   $0.73   ($2.55)
FFOA per share - diluted $0.05   $0.21   ($0.16)   $0.48   $0.80   ($0.32)
Weighted average common shares and OP units outstanding - diluted7 65,154   64,937       65,102   60,418    
                       

 

1 For the three and twelve months ended December 31, 2014 and the period March 18, 2013 to December 31, 2013, includes results from the Company’s investment in Copper Beech.  The Company made its initial investment on March 18, 2013 and subsequently made additional investments.  On December 31, 2013, the Company entered into an amendment to the purchase and sale agreement that enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in seven properties until the Company exercises future purchase options. On August 18, 2014, the Company elected to not exercise the first purchase option and reverted to a 48% interest ownership interest in 35 operating properties. As of December 31, 2014, the Company held a 48% effective interest in 35 operating and two non-operating properties which are unconsolidated and a 48% interest in one consolidated operating property.

2 For the three and twelve months ended December 31, 2014, includes $1,431 and $6,491, respectively, of fair value adjustment related to Copper Beech's debt.  For the three and twelve months ended December 31, 2013, includes $1,411 and $3,576, respectively, of fair value adjustment related to Copper Beech's debt.

3 Includes costs incurred in connection with Copper Beech and Montreal.

4 Amount represents a one time cash dividend equivalency payment made during the three months ended December 31, 2014 to the CB Investors as stipulated in the second amendment to the purchase and sell agreement of Copper Beech.

5 For the three months ended September 30, 2014, $720 of severance was included in general and administrative expense, and was reclassified to the Severance line in the three months ended December 31, 2014.

6 For the three months ended December, 31, 2014, includes expenses related to discontinued construction and development operations of $3,068.  See table on page 20 for additional detail on general and administrative expense.

7 For the three and twelve months ended December 31, 2014 and 2013, the diluted shares were used to calculate FFO and FFOA.

 

Page 6
 

  

CAMPUS CREST COMMUNITIES

 

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS TO NET OPERATING INCOME ("NOI")

(unaudited)

(in $000s, except per share data)

 

 

  Three Months Ended December 31,   Twelve Months Ended December 31,
  20141   20131   20141   20131
               
Net loss attributable to common stockholders   ($34,790)   ($11,990)   ($170,204)   ($4,531)
Net loss attributable to noncontrolling interests   (426)   (85)   (1,200)   (34)
Preferred stock dividends   3,050   2,733   12,200   6,183
Income tax (benefit) expense (0)   (421)   731   (727)
Other (income) expense 88   7   (42)   (1,414)
Severance 6,159   -   6,159   -
(Income) loss on discontinued operations 4,933   2,166   8,125   (489)
Interest expense 5,526   4,205   13,886   12,969
Equity in losses of unconsolidated entities 5,572   7,335   5,510   3,727
Depreciation and amortization 8,822   6,546   31,696   23,700
Ground lease expense 120   87   477   249
General and administrative expense 3,250   2,582   14,303   10,658
Impairment of unconsolidated entities 3,702   312   54,568   312
Effect of not exercising Copper Beech purchase option -   -   34,048   -
Impairment of land, predevelopment costs and asset held for sale 2,137   -   31,927   -
Write-off of corporate other assets 7,345   -   15,110   -
Transaction costs 339   286   2,671   1,121
Property management services (538)   (281)   (1,249)   (820)
Total NOI $15,289   $13,482   $58,715   $50,904
Same store properties NOI1 $12,350   $12,718   $42,929   $46,612
New properties NOI1, 2 $2,118   $0   $11,408   $2,742
The Grove at Pullman & Toledo NOI3 $822   $764   $4,378   $1,550
               

  

1 "Same store" properties are our wholly-owned operating properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by us and remaining in service through the end of the latest period presented or period being analyzed. "New properties" are our wholly-owned operating properties that we acquired or placed in service after the beginning of the earliest period presented or period being analyzed.

2 Includes NOI contribution from Copper Beech at Ames.  This is a consolidated joint venture property.

3 Includes NOI contribution from the operations of The Grove at Pullman and the Toledo, OH redevelopment, as well as business interruption insurance proceeds from The Grove at Pullman.

 

Page 7
 

 

CAMPUS CREST COMMUNITIES

 

WHOLLY OWNED PROPERTY RESULTS OF OPERATIONS (unaudited)

(in $000s, except bed data)

 

 

    Three Months Ended December 31,   Twelve Months Ended December 31,
    2014   2013   Change   % Change   2014   2013   $ Change   % Change
                                 
Same store properties (Number of properties)1, 2   30   30           28   28        
Revenue per occupied bed                                
Rental revenue per occupied bed per month3   $512   $507   $6   1.1%   $499   $497   $2   0.3%
Services revenue per occupied bed per month   15   21   (6)   (26.8%)   19   20   (1)   (2.8%)
Total revenue per occupied bed   $527   $527   $0   0.0%   $519   $517   $1   0.2%
                                 
Average number of owned beds   16,308   16,308           14,920   14,920        
Average physical occupancy   91.6%   92.0%       (0.4%)   90.5%   92.5%       (2.0%)
                                 
Total revenue   $24,120   $23,602   $518   2.2%   $83,148   $85,647   ($2,498)   (2.9%)
Property operating expenses   10,388   10,885   (497)   (4.6%)   38,837   39,035   (198)   (0.5%)
Net operating income   $13,732   $12,717   $1,015   8.0%   $44,312   $46,612   ($2,300)   (4.9%)
Operating margin4   56.9%   53.9%       3.0%   53.3%   54.4%       (1.1%)
                                 
New properties (Number of properties)5, 6, 7   6   -   6       8   2   6    
Revenue per occupied bed                                
Rental revenue per occupied bed per month3   $536   $ -   $536   100.0%   $557   $564   ($7)   (1.3%)
Services revenue per occupied bed per month   12   -   12   100.0%   16   16   (1)   (3.6%)
Total revenue per occupied bed   $548   $ -   $548   100.0%   $573   $581   ($8)   (1.3%)
                                 
Average number of owned beds   3,705   -           3,270   578        
Average physical occupancy   82.5%   0.0%       82.5%   86.4%   86.7%       (0.3%)
                                 
Total revenue   $5,027   $ -   $5,027   100.0%   $19,413   $3,493   $15,920   455.8%
Property operating expenses   2,090   -   2,090   100.0%   7,185   751   6,434   856.5%
Net operating income   $2,938   $ -   $2,938   100.0%   $12,228   $2,742   $9,486   346.0%
Operating margin4   58.4%   0.0%       58.4%   63.0%   78.5%       (15.5%)
                                 
ALL PROPERTIES (Number of properties)   36   30   6       36   30   6    
Revenue per occupied bed                                
Rental revenue per occupied bed per month3   $516   $507   $10   1.9%   $509   $500   $9   1.9%
Services revenue per occupied bed per month   14   21   (6)   (29.5%)   19   20   (1)   (5.5%)
Total revenue per occupied bed   $531   $527   $4   0.7%   $528   $520   $8   1.6%
                                 
Average number of owned beds   20,013   16,308           18,190   15,498        
Average physical occupancy   89.9%   92.0%       (2.1%)   89.7%   92.2%       (2.5%)
                                 
Total revenue   $29,148   $23,602   $5,545   23.5%   $102,561   $89,140   $13,421   15.1%
Property operating expenses   12,478   10,885   1,593   14.6%   46,022   39,786   6,236   15.7%
Net operating income   $16,670   $12,717   $3,952   31.1%   $56,539   $49,354   $7,185   14.6%
Operating margin4   57.2%   53.9%       0.0%   55.1%   55.4%       (0.3%)
                                 
The Grove at Pullman & Toledo NOI8   $910   $764           $4,465   $1,550        
                                 

 

1 For the three months ended December 31, 2014 and 2013, includes financial results for the 2013 wholly-owned deliveries (The Grove at Ft. Collins, The Grove at Muncie, and  The Grove at Flagstaff - Phase II).  The Grove at Flagstaff - Phase II is not included as an additional property, but increases the number of beds. 

2 Excludes financial results from The Grove at Pullman.  On July 14, 2013, the Company experienced a fire at this property under development. As of December 2014, all 584 beds were in operation.  For comparability of results, Pullman will continue to be excluded until year over year results are not impacted by the business interruption.

3 For the three and twelve months ended December 31, 2014, excludes the one-time non-cash impact of the Company’s change in revenue recognition policy. Beginning with the ‘14/’15 AY, the Company will recognize revenue for new leases over the term of the lease (typically 11.5 months) rather than in conjunction with the lease payments (typically 12 equal monthly payments). While this policy change will have no cash impact, and will have minimal year-over-year impact on a go-forward basis, the adjustment related to changing the policy in Q4 2014 will have the effect of lowering reported revenue in that quarter.

4 Operating margin is calculated by dividing NOI for the period by total student housing rental and services revenues for the period.

5 For the three and twelve months ended December 31, 2014, includes financial results for The Grove at Denton. The Company acquired its joint venture partner's interest in The Grove at Denton on January 21, 2014. The occupancy data related to Denton is included in new properties.

6 For the three and twelve months ended December 31, 2014, includes financial results for the 2014 wholly-owned and consolidated deliveries (The Grove at Gainesville, The Grove at Grand Forks, The Grove at Slippery Rock, The Grove at Mt. Pleasant and Copper Beech at Ames).

7 For the three and twelve months ended December 31, 2014 and 2013, excludes financial results from the Toledo, OH redevelopment the Company acquired on March 15, 2013.  

8 Includes NOI contribution from the operations of The Grove at Pullman and the Toledo, OH redevelopment, as well as business interruption insurance proceeds from The Grove at Pullman.

 

Page 8
 

 

CAMPUS CREST COMMUNITIES

 

QUARTERLY WHOLLY OWNED PROPERTY RESULTS OF OPERATIONS (unaudited)

(in $000s, except bed data)

 

 

    Three Months Ended
    December 31, 2013   March 31, 2014   June 30, 2014   September 30, 2014   December 31, 2014
                     
Same store properties (Number of properties)1, 2   30   30   30   30   30
Revenue per occupied bed                    
Rental revenue per occupied bed per month3   $507   $503   $500   $505   $512
Services revenue per occupied bed per month   21   20   21   21   15
Total revenue per occupied bed   $527   $524   $521   $526   $527
                     
Average number of owned beds   16,308   16,308   16,308   16,308   16,308
Average physical occupancy   92.0%   90.1%   89.8%   90.1%   91.6%
                     
Total revenue   $23,602   $23,089   $22,901   $23,171   $24,120
Property operating expenses   10,885   10,275   10,269   10,940   10,388
Net operating income   $12,717   $12,814   $12,632   $12,231   $13,732
Operating margin4   53.9%   55.5%   55.2%   52.8%   56.9%
                     
New properties (Number of properties)5, 6, 7   1   1   1   6   6
Revenue per occupied bed                    
Rental revenue per occupied bed per month3   $568   $565   $565   $549   $536
Services revenue per occupied bed per month   25   15   17   16   12
Total revenue per occupied bed   $592   $580   $583   $565   $548
                     
Average number of owned beds   1,752   1,752   1,752   2,654   3,705
Average physical occupancy   89.0%   91.6%   95.5%   82.1%   82.5%
                     
Total revenue   $924   $931   $975   $3,696   $5,027
Property operating expenses   579   420   453   1,294   2,090
Net operating income   $344   $512   $523   $2,402   $2,938
Operating margin4   37.3%   54.9%   53.6%   65.0%   58.4%
                     
ALL PROPERTIES (Number of properties)   31   31   31   36   36
Revenue per occupied bed                    
Rental revenue per occupied bed per month3   $509   $506   $503   $511   $516
Services revenue per occupied bed per month   21   20   21   20   14
Total revenue per occupied bed   $529   $526   $524   $531   $531
                     
Average number of owned beds   16,892   18,060   18,060   18,962   20,013
Average physical occupancy   91.9%   90.2%   90.0%   89.0%   89.9%
                     
Total revenue   $24,526   $24,021   $23,876   $26,867   $29,148
Property operating expenses   11,464   10,695   10,721   12,234   12,478
Net operating income   $13,062   $13,326   $13,155   $14,633   $16,670
Operating margin4   53.3%   55.5%   55.1%   54.5%   57.2%
                     
The Grove at Pullman & Toledo NOI8   $764   $759   $753   $876   $910
                     

 

1 For the three months ended December 31, 2013, March 31, 2014, June 30, 2014, September 30, 2014 and December 31, 2014, includes financial results for the 2013 wholly-owned deliveries (The Grove at Ft. Collins, The Grove at Muncie, and  The Grove at Flagstaff - Phase II).  The Grove at Flagstaff - Phase II is not included as an additional property, but increases the number of beds. 

2 Excludes financial results from The Grove at Pullman.  On July 14, 2013, the Company experienced a fire at this property under development. As of December 2014, all 584 beds were in operation.  For comparability of results, Pullman will continue to be excluded until year over year results are not impacted by the business interruption.

3 For the three and twelve months ended December 31, 2014, excludes the one-time non-cash impact of the Company’s change in revenue recognition policy. Beginning with the ‘14/’15 AY year, the Company will recognize revenue for new leases over the term of the lease (typically 11.5 months) rather than in conjunction with the lease payments (typically 12 equal monthly payments). While this policy change will have no cash impact, and will have minimal year-over-year impact on a go-forward basis, the adjustment related to changing the policy in Q4 2014 will have the effect of lowering reported revenue in that quarter.

4 Operating margin is calculated by dividing NOI for the period by total student housing rental and services revenues for the period.

5 For the three months ended  September 30, 2014 and December 31, 2014, includes financial results for the 2014 wholly-owned deliveries (The Grove at Gainesville, The Grove at Grand Forks, The Grove at Slippery Rock, The Grove at Mt. Pleasant and Copper Beech at Ames).

6 For the three months ended December 31, 2013, March 31, 2014, June 30, 2014, September 30, 2014 and December 31, 2014, excludes financial results from the Toledo, OH redevelopment the Company acquired on March 15, 2013.  

7 For the three months ended  December 31, 2013, March 31, 2014, June 30, 2014, September 30, 2014 and December 31, 2014, includes financial results for The Grove at Denton.  The Company acquired its joint venture partner's interest in the Grove at Denton on January 21, 2014.

8 For the three months ended December 31, 2013, March 31, 2014, June 30, 2014, September 30, 2014 and December 31, 2014 includes NOI contribution from the operations of The Grove at Pullman and the Toledo, OH redevelopment, as well as business interruption insurance proceeds from The Grove at Pullman, WA.      

 

Page 9
 

 

CAMPUS CREST COMMUNITIES

 

SAME STORE WHOLLY OWNED OPERATING EXPENSES (unaudited)

(in $000s, except bed data)            

 

 

 

  Three Months Ended December 31, 2014   Three Months Ended December 31, 2013   Y-o-Y Total Change
  Total   % of Total   Per Bed/Month     Total   % of Total   Per Bed/Month   $   %
                                 
Payroll $2,395   23.3%   $49     $2,307   21.1%   $47   $88   3.8%
Marketing 242   2.4%   5     414   3.8%   8   (173)   (41.6%)
Office, Administration & Other 810   7.9%   17     705   6.5%   14   106   15.0%
Bad Debt 831   8.1%   17     1,508   13.8%   31   (677)   (44.9%)
Utilities 3,619   35.3%   74     3,291   30.2%   67   329   10.0%
Repairs and Maintenance1 256   2.5%   5     949   8.7%   19   (693)   (73.0%)
Taxes and Insurance 2,110   20.6%   43     1,738   15.9%   36   372   21.4%
Total $10,263   100.0%   $210     $10,912   100.0%   $223   ($649)   (5.9%)
                                 
Same Store                                
Wholly Owned Beds             16,308                         16,308                
Wholly Owned Properties                    30                                30                
                                 
                                 
                                 
                                 
  Twelve Months Ended December 31, 2014   Twelve Months Ended December 31, 2013   Y-o-Y Total Change
  Total   % of Total   Per Bed/Month     Total   % of Total   Per Bed/Month   $   %
                                 
Payroll $8,592   22.5%   $48     $8,855   23.0%   $49   ($263)   (3.0%)
Marketing               1,066   2.8%   6     1,165   3.0%   7   (99)   (8.5%)
Office, Administration & Other               2,477   6.5%   14     2,553   6.6%   14   (76)   (3.0%)
Bad Debt               2,813   7.4%   16     2,802   7.3%   16   11   0.4%
Utilities             12,398   32.5%   69     12,141   31.6%   68   256   2.1%
Repairs and Maintenance1               2,792   7.3%   16     3,539   9.2%   20   (747)   (21.1%)
Taxes and Insurance 8,036   21.1%   45     7,378   19.2%   41   657   8.9%
Total $38,173   100.0%   $213     $38,433   100.0%   $215   ($260)   (0.7%)
                                 
Same Store                                
Wholly Owned Beds 14,920             14,920                
Wholly Owned Properties 28                                28                
                                 

  

1 During the three months ended December 31, 2014, the Company changed its accounting policy in connection with turn expenses to recognize costs in the period in which they are incurred as compared to its previous policy of accounting for the costs of turn ratably over the twelve month academic year. As a result, on a going forward basis, expenses for turn will be recognized during the third quarter of the year. 

 

Page 10
 

 

CAMPUS CREST COMMUNITIES

 

HSRE, BEAUMONT AND COPPER BEECH JOINT VENTURE PROPERTY RESULTS OF OPERATIONS (unaudited)

(in $000s, except per bed data)

 

 
  Three Months Ended December 31,   Twelve Months Ended December 31,
  2014   2013   Change   % Change   2014   2013   Change   % Change
                               
HSRE AND BEAUMONT                              
Same store properties (Number of properties)1 9   9           6   6        
Revenue per occupied bed                              
Rental revenue per occupied bed per month2 $510   $503   $7   1.3%   $460   $468   ($9)   (1.8%)
Services revenue per occupied bed per month 13   20   (7)   (36.5%)   18   20   (2)   (10.1%)
Total revenue per occupied bed $522   $523   ($1)   (0.1%)   $478   $488   ($11)   (2.2%)
                               
Average number of owned beds 5,148   5,148           3,364   3,364        
Average physical occupancy 79.2%   81.7%       (2.5%)   79.9%   79.4%       0.4%
                               
Total revenue $6,390   $6,602   ($212)   (3.2%)   $15,402   $15,656   ($254)   (1.6%)
Property operating expenses 3,263   3,473   (210)   (6.0%)   7,966   8,314   (348)   (4.2%)
Net operating income $3,127   $3,130   ($2)   (0.1%)   $7,437   $7,342   $94   1.3%
Operating margin3  48.9%   47.4%       1.5%   48.3%   46.9%       1.4%
                               
ALL PROPERTIES (Number of properties)1,4 14   9   5       14   9   5    
Revenue per occupied bed                              
Rental revenue per occupied bed per month2 $592   $503   $89   17.7%   $535   $486   $49   10.2%
Services revenue per occupied bed per month 14   $20   (6)   (30.5%)   18   $21   (3)   (15.0%)
Total revenue per occupied bed $606   $523   $83   15.8%   $553   $506   $46   9.2%
                               
Average number of owned beds 9,437   5,148   4,289   83.3%   6,754   4,107   2,647   64.4%
Average physical occupancy 58.7%   81.7%       (23.0%)   69.0%   79.6%       (10.6%)
                               
Total revenue $10,072   $6,602   $3,470   52.6%   $30,929   $19,878   $11,051   55.6%
Property operating expenses 7,614   3,473   4,141   119.3%   19,324   9,670   9,655   99.8%
Net operating income $2,458   $3,130   ($672)   (21.5%)   $11,605   $10,208   $1,397   13.7%
Operating margin3 24.4%   47.4%       (23.0%)   37.5%   51.4%       (13.9%)
                               
Preferred investments5, 6 $7,323   $11,828   ($4,505)       $7,323   $11,828   ($4,505)    
COPPER BEECH                              
ALL PROPERTIES (Number of properties)7, 8 35   35   -       35   35   -    
Revenue per occupied bed                              
Rental revenue per occupied bed per month $461   $460   $1   0.2%   $462   $456   $6   1.3%
Services revenue per occupied bed per month 27   26   1   3.9%   35   34   1   1.7%
Total revenue per occupied bed $488   $487   $2   0.4%   $497   $490   $7   1.3%
                               
Average number of owned beds 16,647   16,647           16,647   16,647        
Average physical occupancy 93.7%   90.9%       2.8%   91.3%   92.5%       (1.2%)
                               
Total revenue $22,848   $22,090   $758   3.4%   $90,590   $90,539   $51   0.1%
Property operating expenses9 7,889   8,771   (883)   (10.1%)   33,621   34,222   (601)   (1.8%)
Net operating income $14,959   $13,318   $1,641   12.3%   $56,968   $56,316   $652   1.2%
Operating margin3 65.5%   60.3%       5.2%   62.9%   62.2%       0.7%
                               

  

1 Excludes The Grove at Denton; the Company acquired its joint venture partner's interest in this property on January 21, 2014.

2 For the three and twelve months ended December 31, 2014, excludes the one-time non-cash impact of the Company’s change in revenue recognition policy. Beginning with the ‘14/’15 AY year, the Company will recognize revenue for new leases over the term of the lease (typically 11.5 months) rather than in conjunction with the lease payments (typically 12 equal monthly payments). While this policy change will have no cash impact, and will have minimal year-over-year impact on a go-forward basis, the adjustment related to changing the policy in Q4 2014 will have the effect of lowering reported revenue in that quarter.

3 Operating margin is calculated by dividing NOI for the period by total student housing rental and services revenues for the period.  Expenses include property management fees.

4 For the three and twelve months ended December 31, 2014, includes financial results for the 2013 joint venture deliveries (The Grove at Indiana, The Grove at Norman, and The Grove at State College) as well as the 2014 joint venture deliveries (The Grove at Greensboro, The Grove at Louisville, evo at Cira Centre South, evo à Square Victoria and evo à Sherbrooke).

5 As of December 31, 2014, the Company held preferred investment in The Grove at Indiana, The Grove at Greensboro and The Grove at Louisville of approximately $7,323.  These preferred interests entitle the Company to a 9.0% return on the investment but otherwise does not change its effective ownership interest in these properties.

6 As of December 31, 2013, the Company held preferred investment in The Grove at San Angelo, The Grove at Conway  and The Grove at Indiana of approximately $11,828.  These preferred interests entitle the Company to a 9.0% return on the investment but otherwise do not change its effective ownership interest in these properties.  In January 2014, the Company amended and restated the HSRE-Campus Crest I, LLC operating agreement, which related to The Grove at San Angelo and The Grove at Conway, which had the effect of exchanging its Class B member preferred interests for limited partnership units, effectively increasing its equity investment in the joint venture to 63.9% from 49.9%. In the event of a sale, the partners are to share equally in the net proceeds. There were no other material changes to the agreement. 

7 For the three months ended December 31, 2014, results reflect operating results for the 35 operating properties.  Results exclude Copper Beech at Ames, which is the only Copper Beech property included in our consolidated results as of December 31, 2014.

8 For the twelve months ended December 31, 2013, includes results from the Company’s initial investment in Copper Beech on March 18, 2013.

9 During the three months ended December 31, 2014, the Company changed its accounting policy in connection with turn expenses to recognize costs in the period in which they are incurred as compared to its previous policy of accounting for the costs of turn ratably over the twelve month academic year. As a result, expenses for turn will be recognized during the third quarter of the year. 

 

Page 11
 

 

CAMPUS CREST COMMUNITIES

 

CAPITAL STRUCTURE AS OF DECEMBER 31, 2014

(in $000s, except per share data)

 

 

               
               
Closing common stock price at December 31, 2014             $7.31
               
Common stock              64,455
Operating partnership units             401
Restricted stock             288
Total shares and units outstanding             65,143
               
Total equity market value             $476,199
Total preferred equity outstanding1             152,500
Total consolidated debt outstanding              618,419
Total market capitalization             $1,247,118
               
Debt to total market capitalization3             49.6%
Debt to gross assets2, 3             47.2%
               
Total number of unencumbered operating properties             19
               
          Weighted    Average
  Principal    % of Total   Average   Years to
Consolidated Debt3, 4 Outstanding   Principal Outstanding   Interest Rate   Maturity
               
Fixed rate mortgage loans $163,341   26.4%   4.95%   4.4
Variable rate mortgage loan 16,613   2.7%   2.32%   2.2
Construction loans 120,719   19.5%   2.30%   1.5
Variable rate credit facility 217,500   35.2%   2.67%   2.0
Exchangeable Notes5 97,419   15.8%   5.53%   3.8
Other debt6 2,827   0.5%   4.93%   14.2
Total/Weighted Average $618,419   100.0%   3.65%   2.9

 

1 8.00% Series A cumulative redeemable preferred stock redeemable February 2017.

2 Gross assets is defined as total assets plus accumulated depreciation, as reported in the Company's December 31, 2014 consolidated balance sheet.

3 Excludes debt associated with HSRE and Beaumont joint ventures.  See page 13 for details related to this debt.  The Company is the guarantor of these loans.  

4 Excludes debt associated with the Company’s investment in Copper Beech.  See page 15 for details related to this debt.

5 Senior unsecured exchangeable notes, maturity in October 2018.

6 Includes $2,552 bond assumed as a part of the purchase of the Flagstaff, AZ property.

 

Page 12
 

 

CAMPUS CREST COMMUNITIES

 

OUTSTANDING DEBT AND MATURITY SCHEDULE
(in $000s) 

 

 

  Principal Balance   Interest Rate   Maturity   Years to    
Consolidated Debt at 12/31/2014     Date   Maturity   Notes
                   
                   
Credit facility $217,500   2.7%   1/8/2017   2.1    
                   
Exchangeable Notes1 97,419   5.5%   10/9/2018   3.8    
                   
Other debt2 2,827   4.9%   10/31/2031   17.1   Miscellaneous debt
                   
Construction loans                  
The Grove at Ft. Collins 19,073   2.1%   7/13/2015   0.5   Two twelve month extension options
The Grove at Muncie 13,892   2.4%   7/3/2015   0.5   Two twelve month extension options
The Grove at Pullman 10,886   2.4%   9/5/2015   0.7   Two twelve month extension options
The Grove at Grand Forks 12,474   2.2%   2/5/2017   2.1   One eighteen month extension option
The Grove at Slippery Rock 16,031   2.3%   6/21/2016   1.5   Two twelve month extension options
The Grove at Gainesville 22,836   2.3%   3/13/2017   2.2    
Copper Beech at Ames 21,170   2.4%   5/2/2017   2.4    
Toledo 4,357   2.3%   11/25/2017   2.9    
Sub Total $120,719   2.3%       1.6    
                   
Mortgage loans                  
                   
The Grove at Milledgeville $15,640   6.1%   10/1/2016   1.8   Principal and interest
The Grove at Carrollton 14,101   6.1%   10/11/2016   1.8   Principal and interest
The Grove at Las Cruces 14,573   6.1%   10/11/2016   1.8   Principal and interest
The Grove at Asheville 14,304   5.8%   4/11/2017   2.3   Principal and interest
The Grove at Ellensburg 15,845   5.1%   9/1/2018   3.7   Principal and interest
The Grove at Nacogdoches 16,857   5.0%   9/1/2018   3.7   Principal and interest
The Grove at Greeley 14,945   4.3%   10/1/2018   3.8   Principal and interest
The Grove at Columbia 22,738   3.8%   7/1/2022   7.6   Principal and interest
The Grove at Clarksville 16,238   4.0%   7/1/2022   7.6   Interest only until 7/2014
The Grove at Statesboro 18,100   4.0%   1/1/2023   8.1   Interest only until 1/2015
The Grove at Denton 16,613   2.3%   3/1/2017   2.2   Principal and interest, floating rate
Sub Total $179,954   4.7%       4.3    
                   
Total / Weighted Average $618,419   3.7%       3.0    

 

1 Senior unsecured exchangeable notes, maturity in October 2018.

2 Includes $2,552 bond assumed as a part of the purchase of the Flagstaff, AZ property.

 

Page 13
 

 

CAMPUS CREST COMMUNITIES

 

HSRE & BEAUMONT JOINT VENTURE DEBT SUMMARY
(in $000s) 

 

 

       Principal Balance   Maturity Years to  
Property Ownership at 12/31/2014 Interest Rate Date Maturity Notes
             
The Grove at Laramie1 10.0% $17,211 2.82% 1/5/2015 0.0 Interest only
The Grove at San Angelo2 63.9% 11,166 2.67% 2/9/2015 0.1 Interest only
The Grove at Lawrence2 63.9% 11,492 2.67% 2/9/2015 0.1 Interest only
The Grove at Conway2 63.9% 9,827 2.67% 2/9/2015 0.1 Interest only
The Grove at Stillwater3 10.0% 13,325 2.92% n/a n/a Interest only
The Grove at Fayetteville4 10.0% 19,078 2.92% 4/20/2015 0.3 Interest only
The Grove at Norman 20.0% 17,871 2.82% 5/8/2015 0.4 Interest only
The Grove at State College 20.0% 18,619 2.22% 9/30/2015 0.7 Interest only
The Grove at Indiana 20.0% 17,217 2.42% 12/19/2015 1.0 Interest only
evo à Square Victoria and evo à Sherbrooke 47.0% 87,970 6.39% 1/13/2016 1.0 Interest only
evo at Cira Centre South 30.0% 90,204 2.37% 7/25/2016 1.6 Interest only
The Grove at Louisville 30.0% 23,759 2.42% 9/6/2016 1.7 Interest only
The Grove at Greensboro 30.0% 16,980 2.27% 9/30/2018 3.8 Interest only
             
Total / Weighted Average   $354,719 3.48%   1.1  

 

Note: The Company's pro rata share of HSRE and Beaumont joint venture debt as of December 31, 2014 was $117,090.

1 Maturity date has been extended through May 5, 2015

2 Maturity date has been extended through May 9, 2015

3 The Grove at Stillwater was sold in January 2015.

4  Maturity date has been extended through April 20, 2015

 

Page 14
 

  

CAMPUS CREST COMMUNITIES

 

COPPER BEECH JOINT VENTURE DEBT SUMMARY
(in $000s) 

 

 

    Effective   Principal Balance       Maturity   Years to    
Property   Ownership1   at 12/31/2014   Interest Rate   Date   Maturity   Notes
                         
Unconsolidated Properties: 48% Effective Ownership Interest                        
                         
Copper Beech at West Lafayette, IN – Baywater2   48.0%   $13,872   5.2%   2/11/2015   0.1   Principal and interest
Copper Beech at Statesboro, GA - Phase II3   48.0%   9,703   2.7%   5/1/2015   0.3   Principal and interest
Copper Beech at Mount Pleasant, MI - Phase II3   48.0%   10,130   2.7%   5/1/2015   0.3   Principal and interest
Copper Beech at State College, PA - Parkway Plaza   48.0%   18,283   5.2%   10/1/2015   0.8   Principal and interest
Copper Beech at Indiana, PA - IUP II   48.0%   5,916   5.9%   10/1/2015   0.8   Principal and interest
Copper Beech at Mount Pleasant, MI - Phase I   48.0%   18,178   5.5%   10/1/2015   0.8   Principal and interest
Copper Beech at Bowling Green, OH - Phase I   48.0%   12,269   5.6%   10/1/2015   0.8   Principal and interest
Copper Beech at State College, PA - CB I   48.0%   4,979   5.6%   2/11/2016   1.1   Principal and interest
Copper Beech at Indiana, PA - IUP Buy   48.0%   2,335   5.5%   6/6/2016   1.4   Principal and interest
Copper Beech at Morgantown, WV   48.0%   34,747   5.5%   6/6/2016   1.4   Principal and interest
Copper Beech at Harrisonburg, VA   48.0%   53,572   5.5%   6/6/2016   1.4   Principal and interest
Copper Beech at San Marcos, TX - Phase I   48.0%   33,120   5.5%   6/6/2016   1.4   Principal and interest
Copper Beech at Bloomington, IN   48.0%   10,461   6.2%   10/1/2016   1.8   Principal and interest
Copper Beech at Allendale, MI - Phase I   48.0%   22,861   6.0%   10/1/2016   1.8   Principal and interest
Copper Beech at Columbia, MO   48.0%   23,614   6.2%   10/1/2016   1.8   Principal and interest
Copper Beech at Radford, VA   48.0%   11,934   6.0%   11/6/2016   1.9   Principal and interest
Copper Beech at Indiana, PA - IUP I   48.0%   6,500   2.2%   6/2/2017   2.4   Principal and interest
Copper Beech at Allendale, MI - Phase II   48.0%   11,595   6.3%   9/6/2017   2.7   Principal and interest
Copper Beech at Columbia, SC - Phase I   48.0%   36,001   6.3%   9/6/2017   2.7   Principal and interest
Copper Beech at Statesboro, GA - Phase I   48.0%   30,173   5.8%   10/6/2017   2.8   Principal and interest
Copper Beech at Kalamazoo, MI - Phase I   48.0%   29,637   5.8%   10/6/2017   2.8   Principal and interest
Copper Beech at State College, PA - CB II   48.0%   8,444   6.0%   8/1/2019   4.6   Principal and interest
Copper Beech at Columbia, SC - Phase II   48.0%   5,914   5.4%   8/1/2020   5.6   Principal and interest
Copper Beech at Greenville, NC   48.0%   46,726   5.3%   9/1/2020   5.7   Principal and interest
Copper Beech at State College, PA - Oakwood   48.0%   5,569   5.0%   10/1/2020   5.8   Principal and interest
Copper Beech at Kalamazoo, MI - Phase II   48.0%   7,838   5.7%   10/1/2020   5.8   Principal and interest
                         
Sub-Total / Weighted Average       $474,371   5.50%       2.3    
                         
Consolidated Property: 48% Ownership Interest                        
Copper Beech at Ames, IA   48.0%   $21,170   2.4%   5/2/2017   2.3   Principal and interest
                         
Total / Weighted Average       $495,540   5.37%       2.3    

 

Note: The Company's pro rata share of Copper Beech debt as of December 31, 2014 was $237,859.

1 The Company made its initial investment in Copper Beech on March 18, 2013 and subsequently made additional investments.  On September 30, 2013, the Company entered into an amendment to the purchase and sale agreement that enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in seven properties until the Company exercises future purchase options. On August 18, 2014, the Company elected to not exercise the first purchase option and reverted to a 48% interest ownership interest in 35 operating properties. As of December 31, 2014, the Company held a 48% effective interest in 35 operating and two non-operating properties which are unconsolidated and a 48% interest in one consolidated operating property.

2 Principal was repaid in full in first quarter 2015. 

3 Automatic extension to November 1, 2016 available for Copper Beech at Statesboro, GA - Phase II. Automatic extension to February 1, 2017 available for Copper Beech at Mount Pleasant, MI - Phase II.     

 

Page 15
 

 

CAMPUS CREST COMMUNITIES

 

Illustrative Estimated Total Pro Rata Debt as of Close of Copper Beech Transaction1
(in $000s) 

  

 

    As of  

CB Related

Adjustments

   Illustrative as
    12/31/2014     of CB Close
             
Cash & Equivalents   $15,240   ($807)   $14,433
             
Consolidated Debt            
Mortgage Loans2   179,954   321,043   500,997
Construction Loans   120,719                      -     120,719
Credit Facility3   217,500   46,000   263,500
Exchangeable Notes   97,419                      -     97,419
Other Debt   2,827                      -     2,827
Total Consolidated Debt   618,419   367,043   985,462
             
Unconsolidated Debt (Pro Rata)            
Joint Venture Debt - HSRE   75,744                      -     75,744
Joint Venture Debt - Beaumont   41,346                      -     41,346
Joint Venture Debt - Copper Beech4   227,698   (154,100)   73,597
Total Unconsolidated Debt   344,788   (154,100)   190,688
             
Total Pro Rata Debt, net of cash   947,967   213,749   1,161,716
             
Preferred Equity   152,500                      -     152,500
             
Total Pro Rata Debt and Preferred Equity   1,100,467   213,749   1,314,216
             
Total Equity Market Value5   476,199   90,701   566,900
             
Total Market Cap Plus Pro Rata JV Debt   $1,576,666   $304,450   $1,881,116
             
Debt to Total Market Cap Plus JV Debt            
Total Pro Rata Debt   60.1%       61.8%
Total Pro Rata Debt plus Preferred Equity   69.8%       69.9%
             

  

1 The information shown in the table above is for illustrative purposes only and should not be construed as pro forma information in accordance with Article 11 of Regulation S-X.

2 Reflects estimated impact of consolidation of wholly owned Copper Beech debt following close of transaction, excluding any potential impact of purchase price accounting.

3 Reflects incremental credit facility borrowing to fund closing of Copper Beech transaction; pro forma credit facility availability is approximately $33 million after inclusion of unencumbered Copper Beech assets in the borrowing base. The Company received a waiver on February 25, 2015 that provides the following covenant tests through 3Q2015: Total Leverage: 65.0%; Fixed Charge Coverage: 1.30x; FFO Payout Ratio: pro forma treatment as if TTM quarterly dividend rate was $0.09/share.

4 Illustrative column reflects pro rata debt related to four properties that continue to be held in a joint venture with Copper Beech.

5 CB related adjustment reflects 12.4 million OP units issued in conjunction with Copper Beech close based on December 31, 2014 closing common stock price of $7.31.    

 

Page 16
 

 

CAMPUS CREST COMMUNITIES

 

PORTFOLIO OVERVIEW AND OCCUPANCY

  

 

                Occupancy
         Year Opened/       December 31,
Property Grouping1   Primary University Acquired Properties Units Beds 2014 2013 Change
                     
Wholly Owned Operating Properties                    
The Grove at Asheville, NC (A)   UNC - Asheville 2005   154 448 98.2% 99.8% (1.6%)
The Grove at Carrollton, GA (A)   University of West Georgia 2006   168 492 91.1% 99.4% (8.3%)
The Grove at Las Cruces, NM (A)   New Mexico State University 2006   168 492 82.9% 85.0% (2.0%)
The Grove at Milledgeville, GA (A)   Georgia College & State University 2006   168 492 99.4% 99.4% 0.0%
The Grove at Abilene, TX (A)   Abilene Christian University 2007   192 504 92.9% 95.2% (2.4%)
The Grove at Ellensburg, WA (A)   Central Washington University 2007   192 504 97.4% 99.0% (1.6%)
The Grove at Greeley, CO (A)   University of Northern Colorado 2007   192 504 99.0% 99.4% (0.4%)
The Grove at Mobile, AL--Phase I & II2 (A)   University of South Alabama 2007/2008   384 1,008 85.9% 79.2% 6.7%
The Grove at Nacogdoches, TX--Phase I & II2 (A)   Stephen F. Austin State Univ. 2007/2012   260 682 84.9% 87.4% (2.5%)
The Grove at Cheney, WA (A)   Eastern Washington University 2008   192 512 92.0% 95.1% (3.1%)
The Grove at Lubbock, TX (A)   Texas Tech University 2008   192 504 93.8% 93.1% 0.8%
The Grove at Stephenville, TX (A)   Tarleton State University 2008   192 504 99.4% 99.4% 0.0%
The Grove at Troy, AL (A)   Troy University 2008   192 514 94.4% 93.4% 1.0%
The Grove at Waco, TX (A)   Baylor University 2008   192 504 90.1% 91.1% (1.0%)
The Grove at Murfreesboro, TN (A)   Middle Tennessee State University 2009   186 504 98.0% 98.8% (0.8%)
The Grove at San Marcos, TX (A)   Texas State University 2009   192 504 97.2% 100.0% (2.8%)
The Grove at Moscow, ID (A)   University of Idaho 2009   192 504 85.7% 99.8% (14.1%)
The Grove at Huntsville, TX (A)   Sam Houston State University 2010   192 504 99.6% 100.0% (0.4%)
The Grove at Statesboro, GA (A)   Georgia Southern University 2010   200 536 86.0% 75.2% 10.8%
The Grove at Ames, IA (A)   Iowa State University 2011   216 584 97.9% 100.0% (2.1%)
The Grove at Clarksville, TN (A)   Austin Peay State University 2011   208 560 72.3% 89.5% (17.1%)
The Grove at Columbia, MO (A)   University of Missouri 2011   216 632 73.1% 73.6% (0.5%)
The Grove at Ft. Wayne, IN (A)   Indiana University-Purdue University Ft. Wayne 2011   204 540 77.4% 93.7% (16.3%)
The Grove at Valdosta, GA (A)   Valdosta State University 2011   216 584 87.3% 88.4% (1.0%)
The Grove at Denton, TX (A)   University of North Texas 2011   216 584 100.0% 91.4% 8.5%
The Grove at Auburn, AL (A)   Auburn University 2012   216 600 99.8% 99.8% 0.0%
The Grove at Flagstaff, AZ (A)   Northern Arizona University 2012   216 584 99.1% 99.8% (0.7%)
The Grove at Orono, ME (A)   University of Maine 2012   188 620 99.2% 93.5% 5.6%
The Grove at Ft. Collins, CO (B)   Colorado State University 2013   218 612 99.3% 100.0% (0.7%)
The Grove at Muncie, IN (B)   Ball State University 2013   216 584 85.6% 70.5% 15.1%
The Grove at Pullman, WA3 (B)   Washington State University 2013   216 584 100.0% 100.0% 0.0%
The Grove at Flagstaff, AZ - Phase II2 (B)   Northern Arizona University 2013   54 192 99.0% 100.0% (1.0%)
The Grove at Gainesville, FL (C)   University of Florida 2014   256 682 57.8% n/a n/a
The Grove at Grand Forks, ND (C)   University of North Dakota 2014   224 600 99.2% n/a n/a
The Grove at Mt. Pleasant, MI (C)   Central Michigan University 2014   224 584 76.5% n/a n/a
The Grove at Slippery Rock, PA (C)   Slippery Rock University 2014   201 603 85.7% n/a n/a
Total - Wholly Owned Operating Properties         36 7,305 19,945 90.4% 92.7% (2.3%)

  

1 Groupings detailed as follows: (A) reflects the same store properties as of December 31, 2014; (B) reflects the 2013 development deliveries; (C) reflects the 2014 development deliveries.

2 The Grove at Mobile, AL--Phase I & II are counted as two properties in the Company's property count.  The Grove at Nacogdoches, TX - Phase II and The Grove at Flagstaff, AZ - Phase II are not counted as a separate assets from Phase I of each respective asset.

3 On July 14, 2013, the Company experienced a fire at this development. As of December 31, 2014, all 584 beds are in operation.

  

Page 17
 

 

CAMPUS CREST COMMUNITIES

 

PORTFOLIO OVERVIEW AND OCCUPANCY (cont'd)

  

 

                Occupancy
        Year Opened/       December 31,
Property Grouping1   Primary University Acquired Properties Units Beds 2014 2013 Change
                     
Joint Venture Operating Properties                    
The Grove at Lawrence, KS (A)   University of Kansas 2009   172                500 74.4% 86.0% (11.6%)
The Grove at San Angelo, TX (A)   Angelo State University 2009   192                504 98.8% 96.8% 2.0%
The Grove at Conway, AR (A)   University of Central Arkansas 2010   180                504 64.5% 70.2% (5.8%)
The Grove at Fayetteville, AR (A)   University of Arkansas 2012   232                632 67.2% 60.9% 6.3%
The Grove at Laramie, WY (A)   University of Wyoming 2012   224                612 82.4% 84.0% (1.6%)
The Grove at Stillwater, OK (A)   Oklahoma State University 2012   206                612 81.9% 95.4% (13.6%)
The Grove at Indiana, PA (B)   Indiana University of Pennsylvania 2013   224                600 65.0% 92.0% (27.0%)
The Grove at Norman, OK (B)   University of Oklahoma 2013   224                600 75.9% 85.1% (9.2%)
The Grove at State College, PA (B)   Penn State University 2013   216                584 97.2% 68.8% 28.3%
The Grove at Greensboro, NC (C)   University of North Carolina at Greensboro 2014   216                584 56.8% n/a n/a
The Grove at Louisville, KY (C)   University of Louisville 2014   252                656 60.7% n/a n/a
evo at Cira Centre South (C)   University of Pennsylvania / Drexel University 2014   344                850 51.2% n/a n/a
evo à Square Victoria (C)   Concordia University / McGill University / (ÉTS) 2014   715             1,294 16.4% n/a n/a
evo à Sherbrooke (C)   McGill University 2014   488                929 11.0% n/a n/a
                     
Total - Joint Venture Operating Properties         14 3,885 9,461 59.8% 81.9% (22.2%)
                     
Total Operating  Properties2         50 11,190 29,406 80.1% 90.2% (10.2%)
                     
Same Store Properties (A)                    
Wholly-Owned                                      28             5,696            15,504 91.6% 92.8% (1.3%)
Joint Venture                                        6             1,206             3,364 78.0% 81.9% (3.9%)
Total - Same Store         34 6,902 18,868 89.1% 90.9% (1.7%)
                     
2013 Deliveries (B)                    
Wholly-Owned                                        4                704             1,972 95.4% 91.3% 4.2%
Joint Venture                                        3                664             1,784 79.2% 82.1% (2.9%)
Total - 2013 Deliveries         7 1,368 3,756 87.7% 86.9% 0.8%
                     
2014 Deliveries (C)3                    
Wholly-Owned                                        4                905             2,469 79.1% n/a n/a
Joint Venture                                        5             2,015             4,313 34.3% n/a n/a
Total - 2014 Deliveries         9 2,920 6,782 50.6% n/a n/a

  

1 Groupings detailed as follows: (A) reflects the same store properties as of December 31, 2014; (B) reflects the 2013 development deliveries; (C) reflects the 2014 development deliveries.

2 The redevelopment of the 100% owned property in Toledo, OH is excluded.  The Grove at Denton is included for purposes of this presentation.   The Company acquired its joint venture partner's interest in the Grove at Denton on January 21, 2014. The occupancy data related to Denton is included in 2014 deliveries.

3 Does not include the Copper Beech at Ames 2014 delivery, which is included on page 19.              

  

Page 18
 

 

CAMPUS CREST COMMUNITIES

 

COPPER BEECH PORTFOLIO OVERVIEW AND OCCUPANCY1

  

 

                Occupancy
      Year Opened/         December 31,
Property   Primary University Acquired   Properties  Units   Beds  2014   2013 Change
                       
Unconsolidated Properties: 48% Effective Ownership Interest                      
Copper Beech at State College, PA - Parkway Plaza   Penn State University 1967     429 633 98.9%   88.3% 10.6%
Copper Beech at Bloomington, IN - Colonial Crest   Indiana University 1970     206 402 82.3%   82.3% 0.0%
Copper Beech at Indiana, PA - IUP I   Indiana University of Pennsylvania 1971     95 239 97.5%   100.0% (2.5%)
Copper Beech at Indiana, PA - IUP II   Indiana University of Pennsylvania 1973     72 172 100.0%   100.0% 0.0%
Copper Beech at Indiana, PA - IUP Buy   Indiana University of Pennsylvania 1975     43 76 98.7%   97.4% 1.3%
Copper Beech at State College, PA - CB I   Penn State University 1996     59 177 100.0%   91.5% 8.5%
Copper Beech at State College, PA - CB II   Penn State University 1998     87 257 100.0%   93.0% 7.0%
Copper Beech at State College, PA - Oakwood   Penn State University 2000     48 144 99.3%   77.1% 22.2%
Copper Beech at Harrisonburg, VA - Grand Duke   James Madison University 2001     120 124 100.0%   97.6% 2.4%
Copper Beech at State College, PA - Northbrook Greens   Penn State University 2003     166 250 100.0%   100.0% 0.0%
Copper Beech at West Lafayette, IN – Klondike   Purdue University 2003     219 486 85.8%   91.4% (5.6%)
Copper Beech at State College, PA - Oak Hill   Penn State University 2003     106 318 100.0%   68.9% 31.1%
Copper Beech at West Lafayette, IN – Baywater   Purdue University 2004     137 488 83.8%   98.8% (15.0%)
Copper Beech at Radford, VA   Radford University 2005     222 500 99.8%   99.6% 0.2%
Copper Beech at Bloomington, IN   Indiana University 2005     107 297 69.7%   83.8% (14.1%)
Copper Beech at Mount Pleasant, MI - Phase I   Central Michigan University 2005     204 632 97.5%   100.0% (2.5%)
Copper Beech at Bowling Green, OH - Phase I   Bowling Green University 2005     128 400 99.8%   98.8% 1.0%
Copper Beech at Fresno, CA   California State University at Fresno 2006     178 506 91.3%   91.3% 0.0%
Copper Beech at Allendale, MI - Phase I   Grand Valley State University 2006     206 614 100.0%   100.0% 0.0%
Copper Beech at Columbia, MO   University  of Missouri 2006     214 654 88.1%   100.0% (11.9%)
Copper Beech at Bowling Green, OH - Phase II   Bowling Green University 2007     72 216 100.0%   99.5% 0.5%
Copper Beech at Allendale, MI - Phase II   Grand Valley State University 2007     82 290 100.0%   100.0% 0.0%
Copper Beech at Columbia, SC - Phase I   University of South Carolina 2007     278 824 96.0%   99.4% (3.4%)
Copper Beech at Statesboro, GA - Phase I   Georgia Southern University 2007     246 754 96.6%   65.3% 31.3%
Copper Beech at Kalamazoo, MI - Phase I   Western Michigan University 2007     256 784 82.1%   85.8% (3.7%)
Copper Beech at Columbia, SC - Phase II   University of South Carolina 2008     72 178 96.1%   99.4% (3.4%)
Copper Beech at Harrisonburg, VA   James Madison University 2008     414 1,218 99.8%   99.7% 0.1%
Copper Beech at Greenville, NC   East Carolina University 2008     439 1,232 95.2%   97.6% (2.4%)
Copper Beech at Kalamazoo, MI - Phase II   Western Michigan University 2008     115 340 68.8%   77.4% (8.5%)
Copper Beech at Auburn, AL   Auburn University 2009     271 754 92.8%   76.3% 16.6%
Copper Beech at Morgantown, WV   West Virginia University 2010     335 920 99.8%   99.9% (0.1%)
Copper Beech at San Marcos, TX - Phase I   Texas State University 2011     273 840 89.2%   90.1% (1.0%)
Copper Beech at San Marcos, TX - Phase II   Texas State University 2012     142 410 88.0%   92.4% (4.4%)
Copper Beech at Mount Pleasant, MI - Phase II   Central Michigan University 2013     119 256 98.4%   40.6% 57.8%
Copper Beech at Statesboro, GA - Phase II   Georgia Southern University 2013     82 262 98.5%   43.5% 55.0%
                       
Sub-Total / Weighted Average         35 6,242 16,647 93.7%   90.7% 3.0%
                       
Consolidated Property: 48% Ownership Interest                      
Copper Beech at Ames, IA   Iowa State University 2014   1 219 636 79.5%   n/a  n/a 
                       
Total - Copper Beech Portfolio         36 6,461 17,283 93.2%   90.7% 2.5%
                       

  

1 The Company made its initial investment in Copper Beech on March 18, 2013 and subsequently made additional investments.  On September 30, 2013, the Company entered into an amendment to the purchase and sale agreement that enabled the Company to acquire a 67% ownership interest in 28 operating properties, while deferring ownership in seven properties until the Company exercises future purchase options. On August 18, 2014, the Company elected to not exercise the first purchase option and reverted to a 48% interest ownership interest in 35 operating properties.  As of December 31, 2014, the Company held a 48% effective interest in 35 operating and two non-operating properties which are unconsolidated and a 48% ownership interest in one consolidated operating property.

 

Page 19
 

 

CAMPUS CREST COMMUNITIES

 

Illustrative1 Bridges of Key Metrics

(in $000s) 

    

Illustrative1 Q4 2014 Pro Rata NOI Bridge         Illustrative1 Q4 2014 Interest Expense Bridge    
               
               
Q4 Wholly Owned NOI2   $17,580     Q4 Interest Expense As Reported   $5,526
               
Q4 Illustrative Pro Rata Copper Beech NOI3   11,900     Q4 Wholly Owned Capitalized Interest Expense   112
               
Q4 Joint Venture Pro Rata NOI, excluding Montreal4   1,050     Pro Rata JV Interest Expense, excluding Montreal4   496
               
Illustrative Q4 2014 Pro Rata NOI, excluding Montreal   $30,529     Pro Rata Montreal Interest Expense4   654
               
          Illustrative Pro Rata Copper Beech Interest Expense3   5,040
               
          Illustrative Q4 2014 Pro Rata Interest Expense   $11,828
               
               
FY 2014 G&A Bridge to Estimated1 2015 Net G&A         Illustrative1 Q4 2014 FFOA Bridge    
               
               
FY 2014 G&A         Q4 2014 FFOA10   $3,063
          Per Diluted Share   $0.05
Net G&A, as reported   $14,303          
               
Capitalized G&A Expenses5   19,789     Impact of Accounting Policy Changes11   1,458
               
Discontinued Operations6   3,068     Impact of Montreal Joint Venture   1,875
               
FY 2014 Gross G&A   $37,160     Illustrative FFOA Before Copper Beech Adjustment   $6,395
          Per Diluted Share12   $0.10
Estimated FY 2015 G&A Bridge              
               
Identified Near-term Cost Savings7   (14,000)     Illustrative Copper Beech Contribution Adjustment13   2,430
               
FY 2015 Estimated Capitalized Expense8   ($2,100)     Illustrative Q4 2014 FFOA   $8,825
          Per Diluted Share14   $0.11
FY 2015 Estimated Net G&A9   $21,060          
               

 

1 The information shown in the table above is for illustrative purposes only and should not be construed as pro forma information in accordance with Article 11 of Regulation S-X.

2 Excludes the one-time non-cash impact of the Company’s change in revenue recognition policy. Beginning with the ‘14/’15 AY, the Company will recognize revenue for new leases over the term of the lease (typically 11.5 months) rather than in conjunction with the lease payments (typically 12 equal monthly payments). While this policy change will have no cash impact, and will have minimal year-over-year impact on a go-forward basis, the adjustment related to changing the policy in Q4 2014 will have the effect of lowering reported revenue in that quarter.

3 Represents illustrative pro rata contribution from Copper Beech based on the Company's ownership percentage of Copper Beech properties as of the closing of the transaction announced November 4, 2014.

4 Pro rata contribution of joint ventures that is reflected in "equity in earnings of unconsolidated entities" in the Company's financial statements.

5 Expenses related to construction and development activities, as well as property management and corporate overhead that were allocated to properties under construction.

6 Expenses related to the discontinued construction and development operations.

7 Identified near-term variable cost savings expected to be realized in 2015. Additional variable cost savings are targeted to be realized throughout the year, as well as fixed cost reductions that will be realized over time as the Company executes on its process review and improvement initiatives as part of its strategic repositioning.

8 Ongoing overhead costs related to property capital improvement activities of the Company. 

9 Estimated 2015 G&A does not include potential incremental cost related to additions to the executive management team.

10 Refer to page 6 for a calculation of FFOA.

11 One-time, non-cash impact of the Company’s change in revenue recognition policy.  See footnote 2.  Also excludes the impact of the Company's change its accounting policy in connection with turn expenses to recognize costs in the period in which they are incurred as compared to its previous policy of accounting for the costs of turn ratably over the twelve months academic year. As a result, on a go-forward basis, expenses for turn will be recognized during the third quarter of the year. 

12 Based on 65.2 million weighted average diluted shares outstanding for the three months ended 12/31/14.

13 Represents incremental FFOA contribution based on the Company's ownership percentage of Copper Beech properties as of the closing of the transaction announced November 4, 2014.

14 Based on illustrative shares outstanding including 12.4 million OP units issued in conjunction with the closing of Copper Beech transaction announced November 4, 2014.      

 

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CAMPUS CREST COMMUNITIES

 

INVESTOR INFORMATION

  

 

Executive Management          
           
Aaron Halfacre President and Chief Investment Officer    
Scott Rochon Acting Chief Financial Officer and Chief Accounting Officer    
           
Corporate Headquarters     Investor Relations    
           
2100 Rexford Road  #414     (704) 496-2571    
Charlotte, NC 28211     investor.relations@campuscrest.com
(704) 496-2500          
           
Covering Analysts          
           
Barclays Capital Inc.  Ross Smotrich   (212) 526-2306   ross.smotrich@barclays.com
Citigroup Global Markets Inc.  Michael Bilerman / Nick Joseph   (212) 816-1383 / (212) 816-1909   michael.bilerman@citi.com / nicholas.joseph@citi.com
MLV & Co LLC Ryan Meliker / Michael Kodesch   (212) 542-5872 / (646) 556-9188   rmeliker@mlvco.com / mkodesch@mlvco.com
Raymond James & Associates  Paul D. Puryear / Buck Horne   (727) 567-2253 / (727) 567-2561   paul.puryear@raymondjames.com / buck.horne@raymondjames.com
RBC Capital Markets, LLC Mike Salinsky    (440) 715-2648   mike.salinsky@rbccm.com
Bank of America Merrill Lynch Jana Galan / Jane Wong   (646) 855-3081 / (646) 855-3378   jana.galan@baml.com / jane.wong1@baml.com
Wunderlich Securities Craig Kucera   (540) 277-3366   ckucera@wundernet.com
Green Street Advisors, Inc. Dave Bragg / Ryan Burke   (949) 640-8780   dbragg@greenstreetadvisors.com / rburke@greenstreetadvisors.com

  

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CAMPUS CREST COMMUNITIES

 

FORWARD - LOOKING STATEMENTS

 

This document, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements in this press release include, among others, the performance of properties in occupancy and yield targets, outlook and guidance for full year 2013 FFO and the related underlying assumptions, growth and development opportunities, leasing activities, financing strategies, and development and construction projects.  You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control that may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, except as otherwise required by federal securities laws, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the risk factors discussed in the Company’s most recent Annual Report on Form 10-K, as updated in the Company’s Quarterly Reports on Form 10-Q.

 

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