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McAdams Stepping Down as ELS President

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January 25, 2011 by   Leave a Comment

Joe McAdams

Joe McAdams

Equity LifeStyle Properties Inc. today (Jan. 25) announced results for the quarter and year ended Dec. 31.

In a companion development, ELS announced that Joe McAdams, company president, is scaling back his duties at ELS and will step down as president effective Feb. 1.

Chicago-based ELS owns or has an interest in 307 RV parks and manufactured housing communities in 27 states and British Columbia consisting of 110,984 sites.

For the fourth quarter 2010, Funds From Operations (FFO) were $25.9 million, or  73 cents per share, compared to $27.7 million, or 79 cents per shares for the same period in 2009. For the year ended Dec. 31, FFO was $123.2 million, or $3.47 per share, compared to $118.1 million, or $3.58 per share for the same period in 2009, according to a news release.

Net income available to common stockholders totaled $5.7 million, or 18 cents per share for the fourth quarter. This compares to net income available to common stockholders of $6.3 million, or 21 cents per share for the same period in 2009. Net income available to common stockholders totaled $38.4 million, or $1.25 per share for the year ended Dec. 31. This compares to net income available to common stockholders of $34.0 million, or $1.22 per share for the same period in 2009.

As previously discussed in Dec. 15 press release, the results for the quarter and year ended Dec. 31 include a non-cash charge related to the write-off of goodwill in the fourth quarter of 2010 of approximately $3.6 million, or 10 cents per share.

Fourth quarter 2010 property operating revenues were $117.9 million, compared to $115 million in the fourth quarter of 2009. Property operating revenues for the year ended Dec. 31 were $491.7 million, compared to $479.3 million for the year ended Dec. 31, 2009.

For the quarter ended Dec. 31, core property operating revenues increased approximately 1.3%and core property operating expenses decreased approximately 0.1%, resulting in an increase of approximately 2.8% to income from core property operations over the quarter ended Dec. 31, 2009.

For the year ended Dec. 31, core property operating revenues increased approximately 1.5% and core property operating expenses increased approximately 1%, resulting in an increase of approximately 2.1%to income from core property operations over the year ended

For the quarter ended Dec. 31, the company had 20 new home sales (including six third-party dealer sales), which represents a 41.2% decrease as compared to the quarter ended Dec. 31, 2009. Gross revenues from home sales were $1.4 million for the quarter ended Dec. 31, compared to $2.1 million for the same period in 2009.

For the year ended Dec.31, the company had 82 new home sales (including 19 third-party dealer sales), which represents a 27.4% decrease as compared to the same period in 2009. Gross revenues from home sales were $6.1 million for the year ended December 31, 2010, compared to $7.1 million for the same period in 2009.

Average long-term secured debt balance was approximately $1.4 billion in the quarter, with a weighted average interest rate, including amortization, of approximately 6.04% per annum. Interest coverage was approximately 2.4 times in the quarter ended Dec. 31.

During the quarter ended Dec. 31, the company paid off approximately $2.4 million of financing encumbering one resort property with a stated interest rate of 5.58% per annum.

In 2011, the company has approximately $52 million of secured mortgage debt maturing, the majority of which we expect to pay off during the first six months of 2011.

Meanwhile, McAdams, 67, the company’s current president, has expressed a desire to reduce his involvement in the day-to-day operations of the company. Effective Feb. 1, McAdams will become president of a subsidiary of the company involved in ancillary activities and relinquish his role as president of ELS.

“We appreciate Joe’s willingness to continue to be a part-time resource for the company and thank him for his contribution to the company’s steady performance over the last few years in a challenging economic environment,” said Thomas Heneghan, ELS CEO.

Heneghan will re-assume the role of president of the company, in addition to his current role as CEO. As a result, effective Feb. 1, the following executive officers will be reporting to Heneghan:

  • Michael Berman, executive vice president and CFO.
  • Ellen Kelleher, executive vice president, property management.
  • Roger Maynard, executive vice president, asset management.
  • Marguerite Nader, executive vice president, new business development.
  • Seth Rosenberg, senior vice president of sales and marketing.

Kelleher will no longer act as secretary of the company as such duties will be transitioned to Rosenberg, the company’s general counsel. Rosenberg joined the company in February 2010 and was previously a general manager for a division of Active Network Inc., a leading provider of software and marketing services used by campgrounds and other outdoor recreation providers.

Guidance for 2011 FFO per share, on a fully-diluted basis, is projected to be in the range of $3.75 to $3.95 for the year ending Dec. 31, 2011, and in the range of $1.06 to $1.16 for the quarter ending March 31, 2011. The company estimates that core property operating revenue for 2011 is expected to grow at approximately 1% to 1.5% over 2010, assuming stable occupancy. Income from core property operations, excluding property management expenses, is expected to grow at approximately 2.5% to 3% over 2010.

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