Amerivest Properties Inc (927102) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 31, 2005

Exhibit 99.1

 

NEWS RELEASE

 

CONTACT:
Becky Nichols		1780 South Bellaire Street		Listed: AMEX
Investor Relations (ext. 104)		Suite 100		Trading Symbol: AMV
beckyn@amvproperties.com		Denver, CO 80222		www.amvproperties.com
		Phone: (303) 297-1800
		Fax: (303) 296-7353

 

AMERIVEST ANNOUNCES PERFORMANCE AND OPERATING RESULTS FOR

FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2005

 

DENVER, CO (March 7, 2006) —

AmeriVest Properties Inc. (AMEX: AMV) reported results today for the fourth quarter and year ended December 31, 2005.  For the fourth quarter 2005, the Company reported net income of $406,975, or $0.02 per diluted share, compared with a loss of $3.7 million, or ($0.15) per share, for the prior year period.  In comparing quarterly results, the increase in net income for the quarter was primarily due to the impact of late-2004 acquisitions and 2005 leasing activities, the gain on asset sales and lower general and administrative expenses, offset by increased impairment charges, increased interest expense and expenses related to the strategic alternative review.

 

For the full year 2005, the Company reported a loss of $10.7 million, or ($0.44) per share, compared with a loss of $5.9 million, or ($0.26) per share for the prior period.  In comparing year-to-year results, the decrease in net income for the year was primarily due to increases in general and administrative, interest and depreciation and amortization expenses, the impact of strategic alternative review expenses and increased impairment charges, offset by the impact of the gain on asset sales and the impact of late-2004 acquisitions and 2005 leasing efforts on operating results. Listed below are significant financial statement items that affect comparability of net income between periods other than the impact of 2004 acquisitions, interest and depreciation expense.

 

		For the three months ended December 31,												For the year ended December 31,
Net Income Comparison		2005						2004						2005						2004
(Dollars in thousands, except per share data)		Amount			Per Share			Amount			Per Share			Amount			Per Share			Amount			Per Share
Gain on sale of real estate assets		$	8,678,204		$	0.36		$	—		$	—		$	8,657,401		$	0.36		$	574,276		$	0.03
Provision for impairment and loss on real estate assets		$	(6,489,082	)	$	(0.27	)	$	(1,160,000	)	$	(0.05	)	$	(9,209,908	)	$	(0.38	)	$	(1,160,000	)	$	(0.05	)
Strategic Alternative Review Expenses		$	(563,219	)	$	(0.02	)	$	—		$	—		$	(708,491	)	$	(0.03	)	$	—		$	—
Severance and Restructuring Costs		$	(105,737	)	$	(0.00	)	$	—		$	—		$	(493,565	)	$	(0.02	)	$	—		$	—
Total (a)		$	1,520,166		$	0.06		$	(1,160,000	)	$	(0.05	)	$	(1,754,563	)	$	(0.07	)	$	(585,724	)	$	(0.03	)