We define EBITDA as net income before interest expense, income taxes, depreciation and amortization, and we define Adjusted EBITDA as EBITDA before unrealized and realized gain or loss on derivatives, loss on early extinguishment of debt, gain or loss on sale of real property interests, straight line rent adjustments, amortization of above and below market rents, impairments, transaction-related expenses, unit-based compensation, repayments of investments in receivables, foreign currency transaction gain (loss), adjustments for investment in unconsolidated joint venture and the capital contribution to fund our general and administrative expense reimbursement. We believe that to understand our performance further, EBITDA and Adjusted EBITDA should be compared with our reported net income (loss) and net cash provided by operating activities in accordance with GAAP, as presented in our consolidated financial statements.
EBITDA and Adjusted EBITDA are non-GAAP supplemental financial measures that management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
-- our operating performance as compared to other publicly traded limited
partnerships, without regard to historical cost basis or, in the case of
Adjusted EBITDA, financing methods;
-- the ability of our business to generate sufficient cash to support our
decision to make distributions to our unitholders;
-- our ability to incur and service debt and fund capital expenditures; and
-- the viability of acquisitions and the returns on investment of various
investment opportunities.
We believe that the presentation of EBITDA and Adjusted EBITDA provides information useful to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to EBITDA and Adjusted EBITDA are net income (loss) and net cash provided by operating activities. EBITDA and Adjusted EBITDA should not be considered as an alternative to GAAP net income (loss), net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Each of EBITDA and Adjusted EBITDA has important limitations as analytical tools because they exclude some, but not all, items that affect net income (loss) and net cash provided by operating activities, and these measures may vary from those of other companies. You should not consider EBITDA and Adjusted EBITDA in isolation or as a substitute for analysis of our results as reported under GAAP. As a result, because EBITDA and Adjusted EBITDA may be defined differently by other companies in our industry, EBITDA and Adjusted EBITDA as presented below may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. For a reconciliation of EBITDA and Adjusted EBITDA to the most comparable financial measures calculated and presented in accordance with GAAP, please see the "Reconciliation of EBITDA and Adjusted EBITDA" table below.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of federal securities laws. These statements discuss future expectations, contain projections of results of operations or of financial condition or state other forward-looking information. You can identify forward-looking statements by words such as "anticipate," "believe," "estimate," "expect," "forecast," "project," "could," "may," "should," "would," "will" or other similar expressions that convey the uncertainty of future events or outcomes. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Partnership's control and are difficult to predict. These statements are often based upon various assumptions, many of which are based, in turn, upon further assumptions, including examination of historical operating trends made by the management of the Partnership. Although the Partnership believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies, which are difficult or impossible to predict and are beyond its control, the Partnership cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements contained in the Partnership's filings with the U.S. Securities and Exchange Commission (the "Commission"), including the Partnership's annual report on Form 10-K for the year ended December 31, 2020 and Current Report on Form 8-K filed with the Commission on February 24, 2021. These risks could cause the Partnership's actual results to differ materially from those contained in any forward-looking statement.
CONTACT: Marcelo Choi
Vice President, Investor Relations
(213) 788-4528
ir@landmarkmlp.com
Landmark Infrastructure Partners LP
Consolidated Statements of Operations
In thousands, except per unit data
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- ---------------------
2021 2020 2021 2020
------- ---------- -------- ----------
Revenue
Rental revenue $17,405 $ 14,228 $ 52,259 $ 41,893
Expenses
Property operating 1,188 360 2,966 1,223
General and
administrative 1,483 768 3,915 3,479
Transaction-related 3,295 -- 3,421 91
Depreciation and
amortization 5,079 3,808 14,871 11,711
Impairments 8 16 35 200
------ --------- ------- ---------
Total expenses 11,053 4,952 25,208 16,704
Other income and
expenses
Interest and other
income 102 46 331 317
Interest expense (4,962) (4,068) (14,830) (12,759)
Loss on early
extinguishment of
debt -- -- -- (2,231)
Unrealized gain
(loss) on
derivatives 194 154 1,511 (6,530)
Equity income (loss)
from unconsolidated
joint venture 329 248 (761) 1,085
Gain on sale of real
property interests 79 -- 189 --
Total other income and
expenses (4,258) (3,620) (13,560) (20,118)
------ --------- ------- ---------
Income from continuing
operations before income
tax benefit 2,094 5,656 13,491 5,071
Income tax benefit (80) (173) (80) (508)
------ --------- ------- ---------
Income from continuing
operations 2,174 5,829 13,571 5,579
Income (loss) from
discontinued
operations, net of
tax -- (171) -- 17,340
------ --------- ------- ---------
Net income 2,174 5,658 13,571 22,919
Less: Net income
attributable to
noncontrolling
interests 8 8 24 24
------ --------- ------- ---------
Net income attributable
to limited partners 2,166 5,650 13,547 22,895
Less: Distributions
to preferred
unitholders (3,060) (3,055) (9,180) (9,152)
Less: Accretion of
Series C preferred
units (96) (96) (286) (289)
------ --------- ------- ---------
Net (loss) income
attributable to common
unitholders $ (990) $ 2,499 $ 4,081 $ 13,454
====== ========= ======= =========
Income (loss) from
continuing operations
per common unit
Common units -- basic $ (0.04) $ 0.10 $ 0.16 $ (0.15)
Common units --
diluted $ (0.04) $ 0.10 $ 0.16 $ (0.15)
Net income (loss) per
common unit
Common units -- basic $ (0.04) $ 0.10 $ 0.16 $ 0.53
Common units --
diluted $ (0.04) $ 0.10 $ 0.16 $ 0.53
Weighted average common
units outstanding
Common units -- basic 25,489 25,478 25,489 25,472
Common units --
diluted 25,489 25,478 25,489 25,472
Other Data
Total leased tenant sites
(end of period) 2,028 1,841 2,028 1,841
Total available tenant
sites (end of period) 2,136 1,952 2,136 1,952
Landmark Infrastructure Partners LP
Consolidated Balance Sheets
In thousands, except per unit data