AdCare Health Systems Reports Record First Quarter 2012 Results
MAY 10, 2012 - 16:05 ET
FOR: ADCARE HEALTH SYSTEMS, INC.
Revenues up 62% to Record $50.2 Million, Driving Record Adjusted EBITDAR of $6.3 Million; Company Exceeds Consensus Estimates; Provides Additional Operating Data to Enhance Analyst Visibility Into Key Performance Metrics
SPRINGFIELD, OH--(Marketwire - May 10, 2012) - AdCare Health Systems, Inc. (
Q1 2012 Financial Highlights
- Record revenues of $50.2 million, up 10% sequentially and up 62% from Q1 2011
- Same-facility revenues of $31.6 million, up 3.3% sequentially and up 3.8% vs. Q1 2011
- Income from operations was a record $2.6 million vs. a loss of $368,000 in the previous quarter and $381,000 in the same year-ago quarter
- Adjusted EBITDAR from continuing operations was a record $6.3 million, up 40% sequentially and up 91% versus the same year-ago quarter
- Acquisitions completed in the quarter added more than $12.5 million in estimated annualized revenue run-rate
- Received $3.6 million in net proceeds from registered public offering
Q1 2012 Summary of Financial Results
Revenues in the first quarter of 2012 increased 62% to a record $50.2 million from $31.0 million in the same year-ago quarter. The increase in revenue was primarily due to acquisitions completed since December 31, 2010 as part of AdCare's M&A program. The company's skilled nursing facilities that existed prior to January 1, 2011 also contributed to the improvement in revenue. A more detailed discussion and analysis of the company's performance is available in AdCare's Form 10-Q for the quarter ended March 31, 2012 as filed with the Securities and Exchange Commission.
Income from operations in the first quarter of 2012 was a record $2.6 million, as compared to $0.4 million in the first quarter of 2011. The increase in income from operations was due to acquisitions and revenue improvement in acquired facilities combined with increased operating margins for the period. Our cost of services as a percentage of patient care revenues decreased to 80.6% for the first quarter of 2012 compared to 82.5% for the first quarter of 2011.
For earnings attributable to AdCare and its shareholders, the company recorded a net loss in the first quarter of 2012 of $0.2 million or $(0.02) per share, as compared to a net loss of $0.8 million or $(0.09) per share in the first quarter of 2011.
Adjusted EBITDAR from continuing operations in the first quarter of 2012 totaled a record $6.3 million, up 91% from Adjusted EBITDAR from continuing operations of $3.3 million in the first quarter of 2011. (See below for the definition of Adjusted EBITDA from continuing operations and Adjusted EBITDAR from continuing operations, both of which are non-GAAP financial measures, as well as an important discussion about the presentation of these measures and reconciliation of these measures to net loss, the most directly comparable GAAP financial measure.)
Combined cash, current restricted cash and cash equivalents at March 31, 2012 totaled $12.5 million, as compared to $9.2 million at December 31, 2011.
Q1 2012 Operational Highlights
- Obtained effective control of a skilled nursing and assisted living community in Springfield, Ohio, with an aggregate of 179 beds in service and an estimated $12.5 million in gross annualized revenues (based upon its most recent financial statements). Its addition was immediately accretive to AdCare's earnings.
- Signed a purchase agreement for three skilled nursing facilities in Arkansas, with an aggregate of 437 beds in service. Two of the facilities have an estimated $15.9 million in gross annualized revenues (based upon their most recent financial statements), with the third facility having the capacity to produce an additional $20 million. Subsequent to the end of the quarter, AdCare completed the acquisition and resumed operations of the renovated third facility.
- Signed purchase agreements for two skilled nursing facilities in Oklahoma, with an aggregate of 239 beds in service and an estimated $10.3 million in gross annualized revenues (based upon their most recent financial statements). The acquisitions are anticipated to be completed in Q2 2012.
- Signed a purchase agreement for a skilled nursing facility in Arkansas, which has 120 beds in service and an estimated $3.3 million in gross annualized revenues (according to its most recent financial statements). Subsequent to the end of the quarter, AdCare completed the acquisition.
- At the end of the first quarter, the company operated 44 facilities comprised of 34 skilled nursing centers, nine assisted living residences and one independent living/senior housing facility, with 3,916 total beds/units in service. Of these 44 facilities, 22 are owned, 12 are leased, six are consolidated variable interest entities, and four are managed for third parties. The facilities are located in Alabama, Arkansas, Georgia, Missouri, North Carolina, Ohio and Oklahoma.
Management Commentary
"Our first quarter results reflect the successful execution of our ongoing acquisition and integration program, resulting in record revenue and operating profit that has exceeded all expectations," said AdCare's president and chief executive officer, Boyd P. Gentry. "Moreover, these results demonstrate our success at growing revenues organically through facility optimization, as evidenced especially in the improved performance of facilities we have held for more than 12 months."
"This optimization process begins with acquiring underperforming skilled nursing properties, then assisting the local facility leadership to improve the level of care, increase post-acute census and realign their payment rate," continued Gentry. "This optimization strategy increased our first quarter 'same-facility' revenues 3.8% over the year-ago quarter.
"Our Q1 operating results also reflected expense reductions that are also beginning to take hold from a number of cost containment measures. It's important to note that we've made these improvements across nearly all of our performance measures despite an unusually mild flu season and a warm winter, which typically lowers hospital occupancy. This shows our model is sustainable, and we expect further margin improvement to continue throughout the year.
"We have realized that our dramatic growth has limited the analyst community's visibility into our performance, resulting in us exceeding street consensus estimates. To provide for better insight, beginning with this quarter's earnings release we are providing more extensive disclosure of our historical operating data. We also plan to provide greater disclosure in the future, and we expect our more stabilized base of business and our recently enhanced infrastructure will also help provide better visibility into our results and outlook."
Chris Brogdon, AdCare's chief acquisition officer, commented: "AdCare has put under contract 47 facilities since we began our M&A campaign in the fall of 2009 and 30 since the beginning of 2011. During the quarter, our M&A program expanded operations into the Midwest and Southwest, established two additional facilities in Ohio, and put one additional facility under contract in Arkansas and two in Oklahoma. We continue to expect our new facilities and these pending acquisitions to leverage our infrastructure, thereby improving our overall EBITDA margin."
"We will continue pursuing an aggressive M&A program throughout the remainder of 2012," added Brodgon. "In fact, we are currently evaluating several attractive opportunities in the Southern region of the U.S."
Combining the company's current annualized run-rate with transactions in the process of closing, AdCare's estimated annualized revenue run-rate is expected to exceed $250 million. This would represent an increase of more than 67% over the company's revenues in 2011, and an increase of more than eight times revenues since initiating its M&A campaign in the spring of 2010. AdCare's expected annualized revenue run-rate does not include the potential revenues of the $20 million from the newly renovated sub-acute care facility in Arkansas.
Conference Call and Webcast
AdCare will hold a conference call to discuss its first quarter 2012 financial results today, Thursday, May 10, 2012 at 5:00 p.m. Eastern time. Management will host the presentation, followed by a question and answer period.
Date: Thursday, May 10, 2012
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Dial-In Number: 1-877-941-4774
International: 1-480-629-9760
Conference ID#: 4532651
The conference call will be webcast simultaneously here and available for replay via the investor section of the company's website at www.adcarehealth.com.
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 949-574-3860.
A replay of the call will be available after 8:00 p.m. Eastern time on the same day and until June 10, 2012.
Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay pin number: 4532651
Summary of Closed and Pending Transactions Since Start of M&A Program
| Description | Beds/Units | Location | Type | ARR 1 | Terms | Closing Status | ||||||
| Three Assisted Living Facilities | 72 beds |
Ohio | Purchase (Remaining 50%) | $3.2 million | Cash | Closed 3-31-10 |
||||||
| Assisted Living Facility | 104 Units | Hoover, AL | Consolidated Variable Interest Entity (CVIE) | $1.4 million | 1-yr purchase option, expiring June 2012 | Signed Option 6-25-10. Currently a CVIE |
||||||
| Five Nursing Homes | 600 beds | Georgia | Lease | $38.8 million | 10-yr lease | Closed 7-30-10 |
||||||
| Three Nursing Homes | 269 beds | Georgia | Lease | $18.4 million | 10-yr lease (combined with the above) | Closed 9-2-10 |
||||||
| Two Nursing Homes | 304 beds | Alabama | Purchase | $19.5 million | Long-term fixed rate loan, USDA guaranteed | Closed 10-1-10 | ||||||
| Two Nursing Homes | 299 beds | Atlanta, GA | Lease | $20.8 million | 12-yr lease with renewal option | Closed 11-2-10 | ||||||
| Nursing Facility | 106 beds | Sylva, NC | Purchase | $8.0 million | Long-term fixed rate loan (USDA guaranteed) | Closed 12-31-10 | ||||||
| Three Nursing Homes | 329 beds | Atlanta & Dublin, GA | Purchase | $18.0 million | Long-term fixed rate loan (USDA,SBA guaranteed and bank loans) | Closed Two 5-1-2011; Closed third on 6-1-2011 |
||||||
| Five Nursing Facilities | 314 beds | Oklahoma | CVIE | $12.7 million | Long-term loan (SBA guaranteed) | Currently a CVIE (since 8-1-11) |
||||||
| Five Nursing Homes | 482 beds |
Arkansas & Missouri | Purchase (four) and Lease (one) | $27.5 million | Long-term fixed rate loan (USDA guaranteed and bank loans), one 10-year lease | Closed Four 9-8-11; Closed (Lease) 11-1-11 |
||||||
| Assisted Living Facility & Nursing Home | 128 beds | Mountain View, AR | Purchase | $5.4 million | Long-term loan (USDA guaranteed bank loan) | Closed 12-2-11 | ||||||
| Assisted Living Facility & Nursing Home | 179 beds | Springfield, OH | Purchase | $12.5 million | 30-year, fixed-rated, tax-exempt bond issuance, and traditional bank loan | Closed 12-30-11 | ||||||
| Three Nursing Facilities | 437 beds | Arkansas | Purchase | $15.9 million | Traditional bank loan | Closed 3-30-12 |
||||||
| Nursing Facility | 120 beds | Arkansas | Purchase | $3.3 million | Traditional bank loan | Closed 4-30-12 |
||||||
| Five Nursing Facilities(Pending) | 456 beds |
Oklahoma | Purchase | $13.2 million | Long-term loan (SBA guaranteed) | Closing Expected Q3-12 | ||||||
| Two Nursing Facilities (Pending) | 239 beds | Oklahoma City & Tulsa, OK | Purchase | $10.3 million | Traditional bank loan | Closing Expected Q2-12 | ||||||
| One Nursing Facility (Pending) 2 | 160 beds | Glenville, GA | Purchase | $6.4 million | Long-term loan (USDA guaranteed bank loan) | Closing Expected Q2-12 | ||||||
| One Nursing Facility (Pending) 2 | 96 beds | Sumter, SC | Purchase | $6.7 million | SBA conventional loan | Closing Expected Q2-12 | ||||||
| Total | 4,694 | $242.0 million |
1ARR= Annualized Revenue Run-rate at the time of purchase/lease or signing, estimated
2 Signed purchase agreement subsequent to Q1 2012.
About AdCare Health Systems
AdCare Health Systems, Inc. (
Important Cautions Regarding Forward-Looking Statements
Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of federal law. Such statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "plans," "intends," "anticipates" and variations of such words or similar expressions, but their absence does not mean that the statement is not forward-looking. Statements in this announcement that are forward-looking include, but are not limited to, statements made by Mr. Gentry that the company expects better results, and statements by Mr. Brogdon that the company continues to expect its new facilities and those pending acquisitions to improve the company's overall EBITDAR margin, as well as other statements regarding the signing and closing of expected acquisitions, and the company's expected annualized run-rate. Such forward-looking statements reflect management's beliefs and assumptions and are based upon information currently available to management and involve known and unknown risks, results, performance or achievements of AdCare, which may differ materially from those expressed or implied in such statements. Such factors are identified in the public filings made by AdCare with the Securities and Exchange Commission and include, among others, AdCare's ability to secure lines of credit and/or an acquisition credit facility, find suitable acquisition properties at favorable terms, changes in the health care industry because of political and economic influences, changes in regulations governing the health care industry, changes in reimbursement levels including those under the Medicare and Medicaid programs and changes in the competitive marketplace. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements. Except where required by law, AdCare undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.
In addition, each facility mentioned in this press release is operated by a separate, wholly owned, independent operating subsidiary that has its own management, employees and assets.
References to the consolidated company and its assets and activities, as well as the use of terms such as "we," "us," "our," and similar verbiage, is not meant to imply that AdCare Health Systems, Inc. has direct operating assets, employees or revenue or that any of the facilities, the home health business or other related businesses are operated by the same entity.
Use of Non-GAAP Financial Information
Beginning with the reporting of results for the first quarter of 2011, the company began to report the measures of Adjusted EBITDA from continuing operations and Adjusted EBITDAR from continuing operations. These are measures of operating performance that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The company defines: (i) Adjusted EBITDA as net income (loss) from continuing operations before interest expense, income tax expense; depreciation and amortization (including amortization of non-cash stock-based compensation), acquisition costs (net of gains), loss on extinguishment of debt, derivative loss, other income from recovery of receivable, and retirement and salary continuation costs; and (ii) Adjusted EBITDAR from continuing operations as net income (loss) from continuing operations before interest expense; income tax expense, depreciation and amortization (including amortization of non-cash stock-based compensation), acquisition costs (net of gains), loss on extinguishment of debt, derivative loss; other income from recovery of receivable, retirement and salary continuation costs and rent cost.
Adjusted EBITDA from continuing operations and Adjusted EBITDAR from continuing operations should not be considered in isolation or as a substitute for net income, income from operations or cash flows provided by, or used in, operations as determined in accordance with GAAP. The metrics are key measures of AdCare Health System's operating performance used by management to focus on operating performance and management without mixing in items of income and expense that relate to the financing and capitalization of the business, fixed rent or lease payments of facilities, derivative loss, and certain acquisition related charges.
The company believes these measures are useful to investors in evaluating the company's performance, results of operations and financial position for the following reasons:
- They are helpful in identifying trends in the company's day-to-day performance because the items excluded have little or no significance to the company's day-to-day operations;
- They provide an assessment of controllable expenses and afford management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieve optimal financial performance; and
- They are an indication to determine whether or not adjustments to current spending decisions are needed.
AdCare believes that the use of the measures provides a meaningful and consistent comparison of the company's underlying business between periods by eliminating certain items required by GAAP, which have little or no significance in the company's day-to-day operations.
| ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES | |||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| (Amounts in 000s, except per share data) | |||||||||
| (Unaudited) | |||||||||
| Three Months Ended | |||||||||
| March 31, | |||||||||
| 2012 | 2011 | ||||||||
| Revenues: | |||||||||
| Patient care revenues | $ | 49,808 | $ | 30,532 | |||||
| Management revenues | 363 | 498 | |||||||
| Total revenues | 50,171 | 31,030 | |||||||
| Expenses: | |||||||||
| Cost of services (exclusive of facility rent, depreciation and amortization) | 40,123 | 25,175 | |||||||
| General and administrative expenses | 3,931 | 2,924 | |||||||
| Facility rent expense | 2,065 | 1,903 | |||||||
| Depreciation and amortization | 1,497 | 647 | |||||||
| Total expenses | 47,616 | 30,649 | |||||||
| Income from Operations | 2,555 | 381 | |||||||
| Other Income (Expense): | |||||||||
| Interest expense, net | (2,954 | ) | (1,436 | ) | |||||
| Derivative gain (loss) | 410 | (1,350 | ) | ||||||
| Acquisition costs, net of gains | (293 | ) | 979 | ||||||
| Other income (expense) | (16 | ) | 606 | ||||||
| Total other income (expense), net | (2,853 | ) | (1,201 | ) | |||||
| Loss from Continuing Operations Before Income Taxes | (298 | ) | (820 | ) | |||||
| Income tax expense | (54 | ) | (86 | ) | |||||
| Loss from Continuing Operations | (352 | ) | (906 | ) | |||||
| Loss from discontinued operations, net of tax | (109 | ) | (35 | ) | |||||
| Net Loss | (461 | ) | (941 | ) | |||||
| Net Loss Attributable to Noncontrolling Interests | 255 | 176 | |||||||
| Net Loss Attributable to AdCare Health Systems | $ | (206 | ) | $ | (765 | ) | |||
| Net Loss per Common Share - Basic and Diluted: | |||||||||
| Continuing Operations | $ | (0.01 | ) | $ | (0.08 | ) | |||
| Discontinued Operations | (0.01 | ) | (0.01 | ) | |||||
| $ | (0.02 | ) | $ | (0.09 | ) | ||||
| Weighted Average Common Shares Outstanding - Basic and Diluted | 12,204 | 8,767 | |||||||
| ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED BALANCE SHEETS (Amounts in 000s) |
|||||||||||
| (UNAUDITED) | |||||||||||
| March 31, | December 31, | ||||||||||
| ASSETS | 2012 | 2011 | |||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 11,328 | $ | 7,364 | |||||||
| Restricted cash and cash equivalents | 1,208 | 1,883 | |||||||||
| Accounts receivable, net | 21,396 | 18,759 | |||||||||
| Prepaid expenses and other | 1,038 | 663 | |||||||||
| Assets of disposal group held for sale | 42 | 47 | |||||||||
| Total current assets | 35,012 | 28,716 | |||||||||
| Restricted cash and investments | 4,980 | 4,870 | |||||||||
| Property and equipment, net | 115,659 | 105,143 | |||||||||
| Intangible assets - bed licenses | 2,464 | 1,189 | |||||||||
| Intangible assets - lease rights, net | 8,193 | 8,460 | |||||||||
| Goodwill | 906 | 906 | |||||||||
| Escrow deposits for acquisitions | 3,604 | 3,172 | |||||||||
| Lease deposits | 1,686 | 1,685 | |||||||||
| Deferred loan costs, net | 4,826 | 4,818 | |||||||||
| Other assets | 74 | 122 | |||||||||
| Total Assets | $ | 177,404 | $ | 159,081 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Current portion of notes payable and other debt | $ | 7,655 | $ | 4,567 | |||||||
| Revolving credit facilities and lines of credit | 8,095 | 7,343 | |||||||||
| Accounts payable | 14,655 | 12,075 | |||||||||
| Accrued expenses | 10,952 | 9,858 | |||||||||
| Liabilities of disposal group held for sale | 192 | 240 | |||||||||
| Total current liabilities | 41,549 | 34,083 | |||||||||
| Notes payable and other debt, net of current portion: | |||||||||||
| Senior debt, net of discounts | 97,163 | 87,771 | |||||||||
| Convertible debt, net of discounts | 14,824 | 14,614 | |||||||||
| Revolving credit facilities | - | 1,308 | |||||||||
| Other debt | 1,150 | 1,400 | |||||||||
| Derivative liability | 1,479 | 1,889 | |||||||||
| Other liabilities | 2,119 | 2,437 | |||||||||
| Deferred tax liability | 67 | 86 | |||||||||
| Total liabilities | 158,351 | 143,588 | |||||||||
| Stockholders' equity: | |||||||||||
| Preferred stock, no par value; 1,000shares authorized; no shares issued or outstanding | - | - | |||||||||
| Common stock and additional paid-in capital, no par value; 29,000 shares authorized; 13,308 and 12,193 shares issued and outstanding | 39,068 |
35,047 |
|||||||||
| Accumulated deficit | (18,919 | ) | (18,713 | ) | |||||||
| Total stockholders' equity | 20,149 | 16,334 | |||||||||
| Noncontrolling interest in subsidiaries | (1,096 | ) | (841 | ) | |||||||
| Total equity | 19,053 | 15,493 | |||||||||
| Total liabilities and stockholders' equity | $ | 177,404 | $ | 159,081 | |||||||
| ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS TRAILING FIVE QUARTERS | ||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| (Amounts in 000's) | 3/31/2011 | 6/30/2011 | 9/30/2011 | 12/31/2011 | 3/31/2012 | |||||||||||||||
| Revenues: | ||||||||||||||||||||
| Patient care revenues | $ | 30,532 | $ | 33,872 | $ | 40,192 | $ | 45,137 | $ | 49,808 | ||||||||||
| Management revenue | 498 | 485 | 330 | 307 | 363 | |||||||||||||||
| Total revenues | 31,030 | 34,357 | 40,522 | 45,444 | 50,171 | |||||||||||||||
| Expenses: | ||||||||||||||||||||
| Cost of services | 25,175 | 27,104 | 32,637 | 37,303 | 40,123 | |||||||||||||||
| General and administrative expenses | 2,924 | 3,168 | 3,267 | 3,922 | 3,931 | |||||||||||||||
| Facility rent expense | 1,903 | 1,946 | 1,938 | 2,008 | 2,065 | |||||||||||||||
| Depreciation and amortization | 647 | 706 | 836 | 1,749 | 1,497 | |||||||||||||||
| Salary retirement and continuation costs | - | 621 | - | 830 | - | |||||||||||||||
| Total expenses | 30,649 | 33,545 | 38,678 | 45,812 | 47,616 | |||||||||||||||
| Income (Loss) from Operations | 381 | 812 | 1,844 | (368 | ) | 2,555 | ||||||||||||||
| Other Income (Expense): | ||||||||||||||||||||
| Interest expense, net | (1,436 | ) | (1,852 | ) | (2,223 | ) | (2,688 | ) | (2,954 | ) | ||||||||||
| Loss on extinguishment of debt | - | (78 | ) | (58 | ) | (5 | ) | - | ||||||||||||
| Derivative gain (loss) | (1,350 | ) | (2,588 | ) | 4,745 | 151 | 410 | |||||||||||||
| Acquisition costs, net of gains | 979 | (622 | ) | (1,147 | ) | (373 | ) | (293 | ) | |||||||||||
| Other income (expense) | 606 | (19 | ) | (19 | ) | (17 | ) | (16 | ) | |||||||||||
| Total other income (expense), net | (1,201 | ) | (5,159 | ) | 1,298 | (2,932 | ) | (2,853 | ) | |||||||||||
| Income (Loss) from Continuing Operations | ||||||||||||||||||||
| Before Income Taxes | (820 | ) | (4,347 | ) | 3,142 | (3,300 | ) | (298 | ) | |||||||||||
| Income tax benefit (expense) | (86 | ) | (124 | ) | (204 | ) | 151 | (54 | ) | |||||||||||
| Income (Loss) from Continuing Operations | (906 | ) | (4,471 | ) | 2,938 | (3,149 | ) | (352 | ) | |||||||||||
| Income (Loss) from discontinued operations, net of tax | (35 | ) | (91 | ) | (158 | ) | (1,679 | ) | (109 | ) | ||||||||||
| Net Income (Loss) | (941 | ) | (4,562 | ) | 2,780 | (4,828 | ) | (461 | ) | |||||||||||
| Net Loss Attributable to Noncontrolling Interests | 176 | 165 | 748 | 298 | 255 | |||||||||||||||
| Net Income (Loss) Attributable to AdCare Health Systems | $ | (765 | ) | $ | (4,397 | ) | $ | 3,528 | $ | (4,530 | ) | $ | (206 | ) | ||||||
| ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES | ||||||||||||||||||||
| RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND ADJUSTED EBITDAR FROM CONTINUING OPERATIONS | ||||||||||||||||||||
| (Amounts in 000s) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| (Amounts in 000's) | 3/31/2011 | 6/30/2011 | 9/30/2011 | 12/31/2011 | 3/31/2012 | |||||||||||||||
| Adjusted EBITDA and Adjusted EBITDAR | ||||||||||||||||||||
| Net Income (Loss) | $ | (941 | ) | $ | (4,562 | ) | $ | 2,780 | $ | (4,828 | ) | $ | (461 | ) | ||||||
| Impact of discontinued operations | 35 | 91 | 158 | 1,679 | 109 | |||||||||||||||
| Net Income (Loss) from continuing operations | (906 | ) | (4,471 | ) | 2,938 | (3,149 | ) | (352 | ) | |||||||||||
| Interest expense, net | 1,436 | 1,852 | 2,223 | 2,688 | 2,954 | |||||||||||||||
| Income tax (benefit) expense | 86 | 124 | 204 | (151 | ) | 54 | ||||||||||||||
| Amortization of stock based compensation | 390 | 167 | 184 | 277 | 165 | |||||||||||||||
| Depreciation and amortization | 647 | 705 | 836 | 1,749 | 1,497 | |||||||||||||||
| Acquisition costs, net of gains | (979 | ) | 622 | 1,147 | 373 | 293 | ||||||||||||||
| Loss on extinguishment of debt | - | 77 | 58 | 5 | - | |||||||||||||||
| Derivative (gain) loss | 1,350 | 2,588 | (4,745 | ) | (151 | ) | (410 | ) | ||||||||||||
| Other income from recovery of receivables | (629 | ) | - | - | - | - | ||||||||||||||
| Salary retirement and continuation costs | - | 622 | - | 830 | - | |||||||||||||||
| Adjusted EBITDA from continuing operations | 1,395 | 2,286 | 2,845 | 2,471 | 4,201 | |||||||||||||||
| Facility rent expense | 1,903 | 1,947 | 1,938 | 2,008 | 2,065 | |||||||||||||||
| Adjusted EBITDAR from continuing operations | $ | 3,298 | $ | 4,233 | $ | 4,783 | $ | 4,479 | $ | 6,266 | ||||||||||
| ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES | ||||||||||||||||||||
| SUPPLEMENTARY INFORMATION | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| 2011 | 2012 | |||||||||||||||||||
| End of Period Data | Q1 | Q2 | Q3 | Q4 | YTD | Q1 | ||||||||||||||
| Number of Facilities | ||||||||||||||||||||
| SNF | ||||||||||||||||||||
| Owned | 5 | 8 | 12 | 13 | 14 | |||||||||||||||
| Leased | 11 | 11 | 11 | 12 | 12 | |||||||||||||||
| VIE | 0 | 0 | 5 | 5 | 5 | |||||||||||||||
| Managed | 4 | 4 | 4 | 3 | 3 | |||||||||||||||
| ALF | ||||||||||||||||||||
| Owned | 6 | 6 | 6 | 7 | 8 | |||||||||||||||
| VIE | 0 | 1 | 1 | 1 | 1 | |||||||||||||||
| Managed | 1 | 0 | 0 | 0 | 0 | |||||||||||||||
| IL | ||||||||||||||||||||
| Managed | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
| Total | 28 | 31 | 40 | 42 | 44 | |||||||||||||||
| Number of Operational Beds | ||||||||||||||||||||
| SNF | ||||||||||||||||||||
| Owned | 510 | 839 | 1,241 | 1,337 | 1,436 | |||||||||||||||
| Leased | 1,262 | 1,262 | 1,262 | 1,342 | 1,342 | |||||||||||||||
| VIE | 0 | 0 | 314 | 314 | 314 | |||||||||||||||
| Managed | 403 | 379 | 379 | 329 | 329 | |||||||||||||||
| ALF | ||||||||||||||||||||
| Owned | 196 | 196 | 196 | 228 | 308 | |||||||||||||||
| VIE | 104 | 104 | 104 | 104 | 104 | |||||||||||||||
| Managed | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
| IL | ||||||||||||||||||||
| Managed | 83 | 83 | 83 | 83 | 83 | |||||||||||||||
| Total | 2,558 | 2,863 | 3,579 | 3,737 | 3,916 | |||||||||||||||
| SNF + ALF % Owned | 39.1 | % | 47.4 | % | 59.5 | % | 59.6 | % | 61.7 | % | ||||||||||
| SNF + ALF % Leased | 60.9 | % | 52.6 | % | 40.5 | % | 40.4 | % | 38.3 | % | ||||||||||
| Revenue Mix % (a) | ||||||||||||||||||||
| Skilled (c) | 33.0 | % | 32.4 | % | 30.8 | % | 29.9 | % | 31.3 | % | 31.0 | % | ||||||||
| Medicaid | 55.2 | % | 55.9 | % | 56.7 | % | 56.9 | % | 56.3 | % | 54.8 | % | ||||||||
| Private + Other | 11.8 | % | 11.7 | % | 12.5 | % | 13.2 | % | 12.4 | % | 14.2 | % | ||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
| Patient Days (a) | ||||||||||||||||||||
| Skilled (c) | 21,441 | 22,443 | 24,723 | 29,543 | 98,150 | 32,633 | ||||||||||||||
| Medicaid | 105,790 | 117,401 | 146,203 | 164,723 | 534,117 | 167,486 | ||||||||||||||
| Private + Other | 11,275 | 14,788 | 20,782 | 25,807 | 72,652 | 28,075 | ||||||||||||||
| Total | 138,506 | 154,632 | 191,708 | 220,073 | 704,919 | 228,194 | ||||||||||||||
| Patient Day Mix % (a) | ||||||||||||||||||||
| Skilled (c) | 15.5 | % | 14.5 | % | 12.9 | % | 13.4 | % | 13.9 | % | 14.3 | % | ||||||||
| Medicaid | 76.4 | % | 75.9 | % | 76.3 | % | 74.8 | % | 75.8 | % | 73.4 | % | ||||||||
| Private + Other | 8.1 | % | 9.6 | % | 10.8 | % | 11.8 | % | 10.3 | % | 12.3 | % | ||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
| Revenue Rates Per Patient Day (a) | ||||||||||||||||||||
| Skilled (c) | $ | 434.37 | $ | 454.32 | $ | 469.60 | $ | 430.64 | $ | 446.68 | $ | 442.03 | ||||||||
| Medicaid | $ | 147.04 | $ | 149.71 | $ | 146.44 | $ | 146.99 | $ | 147.45 | $ | 152.21 | ||||||||
| Private + Other | $ | 213.92 | $ | 195.20 | $ | 172.90 | $ | 167.20 | $ | 181.78 | $ | 171.85 | ||||||||
| Weighted Average Total | $ | 203.54 | $ | 203.46 | $ | 196.80 | $ | 193.34 | $ | 198.51 | $ | 203.97 | ||||||||
| Average Daily Census (a) | ||||||||||||||||||||
| Skilled (c) | 238 | 264 | 304 | 330 | 343 | 359 | ||||||||||||||
| Medicaid | 1,175 | 1,382 | 1,798 | 1,841 | 1,869 | 1,841 | ||||||||||||||
| Private + Other | 125 | 174 | 256 | 291 | 254 | 309 | ||||||||||||||
| Total Average Daily Census | 1,539 | 1,821 | 2,357 | 2,459 | 2,467 | 2,508 | ||||||||||||||
| Occupancy (a) | 86.8 | % | 86.7 | % | 85.4 | % | 82.4 | % | 85.0 | % | 81.1 | % | ||||||||
| 2011 | 2012 | ||||||||||||||||||
| End of Period Data | Q1 | Q2 | Q3 | Q4 | YTD | Q1 | |||||||||||||
| Total Revenue (b) | $ | 31,029,710 | $ | 34,356,369 | $ | 40,522,389 | $ | 45,444,262 | $ | 151,352,730 | $ | 50,170,201 | |||||||
| Adjusted EBITDAR (b) | $ | 3,298,182 | $ | 4,230,002 | $ | 4,783,243 | $ | 4,479,698 | $ | 16,791,125 | $ | 6,265,035 | |||||||
| Adjusted EBITDA (b) | $ | 1,395,459 | $ | 2,283,134 | $ | 2,845,693 | $ | 2,471,668 | $ | 8,995,954 | $ | 4,200,420 | |||||||
| (a) Skilled Nursing Only - Excludes Managed Facilities |
| (b) AdCare Consolidated Incorporating Discontinued Operations |
| (c) Skilled is defined as Medicare A + Managed Care RUGS |
| (d) Note that the Company changed its method for reporting total beds from licensed beds to beds in operation beginning Q3 2011. This effective change restates the number of beds reported and total occupancy calculated for the first two quarters of 2011. |
Company Contacts
Boyd Gentry, CEO
Chris Brogdon, Vice Chairman & CAO
David A. Tenwick, Chairman of Board
AdCare Health Systems, Inc.
Tel (937) 964-8974
Email Contact
Investor Relations
Ron Both or Geoffrey Plank
Liolios Group, Inc.
Tel (949) 574-3860
Email Contact
