AdCare Health Systems Reports Third Quarter 2013 Results
Company Delivers 13.9% Sequential Increase in Quarterly EBITDAR to $5.4 Million;
Highest EBITDAR in Last Five Quarters
Quarterly Net Loss Narrows Significantly from Year-Ago Period and Sequentially
ATLANTA, Nov. 14, 2013 /PRNewswire/ -- AdCare Health Systems, Inc. (NYSE MKT: ADK), (NYSE MKT: ADK.PA) a leading long-term care provider, reported results for the third quarter and nine months ended September 30, 2013.
Financial Highlights
- Revenues up 5% to $55.9 million from $53.2 million in the year-ago period
- Adjusted EBITDAR from continuing operations was $5.4 million (see "Use of Non-GAAP Financial Information," below for more information)
- AdCare's financial results included a non-cash derivative gain of $2.0 million compared to a non-cash derivative loss of $2.1 million in the third quarter last year (see, "About the Derivative Liability," below for more information)
- Board of Directors declared a quarterly cash preferred dividend payment of $0.68 per share on the Company's 10.875% Series A Cumulative Redeemable Preferred Stock which was paid on September 30, 2013 to holders of record at the close of business on September 20, 2013
- Subsequent to the quarter end, completed a public offering of 500,000 shares of its 10.875% Series A Cumulative Redeemable Preferred Stock; $11.2 million net proceeds to be used for general corporate purposes; completed offering eliminates embedded derivative from financial statements
"The third quarter is our seasonally slowest quarter and yet we delivered solid revenue growth from the year ago period for both the third quarter and the first nine months of 2013," said AdCare's president and chief executive officer, Boyd P. Gentry. "Our EBITDAR continues to demonstrate the progress we are making and this quarter we generated the highest EBITDA and EBITDAR in five quarters - since Q2 of 2012. We have more than doubled Adjusted EBITDAR since Q4 of 2012; adjusted EBITDAR from continuing operations reached $5.4 million compared to $2.5 million for the fourth quarter of 2012. We narrowed our quarterly net loss attributable to AdCare Health stockholders significantly to $0.5 million from $4.5 million in the prior year period and sequentially from $7.0 million. We are on track to reduce our expense run-rate by nearly $1 million annually, primarily from new fixed-price contracts for certain expenses as well as eliminating some redundancy at the corporate level."
Mr. Gentry added, "Profitability improved sequentially even though revenues decreased slightly due to the seasonality mentioned above. Additionally, we are laying the groundwork for an enhanced sales and marketing strategy that should begin to yield higher skilled mix in 2014. These anticipated improvements in census and mix, when combined with our continued careful expense control which are gaining traction should drive solid financial improvements in the coming quarters. We believe this progress will become even more evident as the non-recurring costs related to the Audit Committee review and inquiry and the restatement process dissipate. Audit committee investigation expenses decreased by more than $0.5 million sequentially from Q2 to Q3. We are encouraged by the progress we have made and look forward to continued profitable growth."
Q3 and Nine Month 2013 Summary of Financial Results
Revenues in the third quarter of 2013 were $55.9 million, up 5% from $53.2 million in the same year-ago quarter. Revenue for the first nine months of 2013 increased by 18.5% to $168.5 million from $142.2 million in 2012.
Inclusive of a $302,000 charge related to the Audit Committee's review and the Company's restatement process, and a non-cash derivative gain of $2.0 million, net loss attributable to AdCare common stockholders in the third quarter of 2013 totaled $0.5 million or $(0.03) per basic and diluted share. This compares to a net loss of $4.5 million, or $(0.31) per basic and diluted share, in the same year-ago quarter, which included a non-cash derivative loss of $2.1 million. For the first nine months of 2013, the net loss attributable to AdCare common stockholders was $10.4 million or $(0.70) per basic and diluted share, versus a net loss of $7.0 million or $(0.50) per basic and diluted share in 2012.
"Quarterly cost of services declined to 82.5% of revenues in the third quarter of 2013 compared to 83.6% of revenues in the prior year quarter and also declined sequentially from 84.2% of revenues in the second quarter of 2013 due to successful facility optimization efforts," commented Ronald Fleming, AdCare Health's chief financial officer. "In addition, after the end of October, 2013 the non-cash derivative liability no longer impacts our financial statements so going forward we will be able to present results that no longer reflect this quarterly non-cash line item."
Adjusted EBITDAR from continuing operations in the third quarter of 2013 totaled $5.4 million, up 6.3% compared to $5.0 million in the third quarter of 2012 and up 13.9% sequentially compared to the $4.7 million in the second quarter of 2013. Adjusted EBITDAR from continuing operations for the first nine months of 2013 totaled $14.0 million compared to $14.9 million for the first nine months of 2012 (see "Use of Non-GAAP Financial Information," below for the definition of Adjusted EBITDA from continuing operations and Adjusted EBITDAR from continuing operations, each, non-GAAP financial measures, as well as an important discussion about the use of these measures and their reconciliation to GAAP net loss, the most directly comparable GAAP financial measure).
Cash and cash equivalents at September 30, 2013 totaled $12.7 million, as compared to $15.9 million at December 31, 2012.
Q3 2013 Total Facility Count
At the end of the third quarter of 2013, the Company, through its subsidiaries, operated or managed 47 facilities comprised of 43 skilled nursing centers, three assisted living residences and one independent living/senior housing facility, with a total of 4,781 beds/units in service. Of these 47 facilities, 26 are owned, nine are leased, 11 are managed for third parties and one is a consolidated variable interest entity. The facilities are located in Alabama, Arkansas, Georgia, Missouri, North Carolina, Ohio, Oklahoma and South Carolina.
Conference Call and Webcast
AdCare will hold a conference call to discuss its third quarter 2013 financial results later today, Thursday, November 14, 2013 at 4:30 p.m. Eastern time. Management will host the presentation, followed by a question and answer period.
- Date and time: Thursday, November 14, 2013 at 4:30 p.m. ET
- Dial-in number: 1-877-941-2069 (domestic) or 1-480-629-9713 (international)
- Replay number: Dial 1-877-870-5176 (domestic) or 1-858-384-5517 (international). Please use passcode 4649187 to access the replay. The replay will be available until December 14, 2013.
- Webcast link: www.adcarehealth.com or http://public.viavid.com/index.php?id=106804.
About the Derivative Liability
The derivative liability is the result of the Company issuing subordinated convertible promissory notes in 2010 that include an anti-dilution provision referred to as a "ratchet" provision. The derivative liability is a non-cash item. The notes are convertible into shares of common stock of the Company at a current conversion price of $3.73 that is subject to future reductions if the Company issues equity instruments at a lower price (the "ratchet" provision). Because there is no minimum conversion price, an indeterminate number of shares may be issued in the future. Accordingly, the Company determined an embedded derivative existed that was required to be bifurcated from the subordinated convertible promissory notes and accounted for separately as a derivative liability recorded at fair value. Pursuant to GAAP, the Company estimates the fair value of the derivative liability using the Black-Scholes Merton option-pricing model with changes in fair value being reported in the condensed consolidated statement of operations.
These notes , which had an original maturity date of October 26, 2013, were extended to August 29, 2014 and the anti-dilution provision was eliminated so there will not be a derivative gain or loss recorded after Q4 13. At maturity, the Company will be required to redeem the notes for cash (unless they are earlier converted into common stock at the option of the holder). If the notes are converted, to common stock, the debt will be extinguished, the current fair market value of the common stock will be reflected as common stock and additional paid-in capital, and there may be a resulting gain or loss on the debt extinguishment.
About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PA) is a recognized provider of senior living and health care facility management. AdCare owns and manages, long-term care facilities and retirement communities, and since the Company's inception in 1988, its mission has been to provide the highest quality of healthcare services to the elderly through its operating subsidiaries, including a broad range of skilled nursing and sub-acute care services. For more information about AdCare, visit www.adcarehealth.com.
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: (i) statements regarding drivers of operational growth; (ii) statements regarding expense reductions and expense run-rate; (iii) statements regarding improvements in the admissions process; (iv) statements regarding financial and operational improvements; and (v) statements regarding the Company's current plans to issue equity instruments. 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, AdCare's ability to refinance its current debt on more favorable terms, AdCare's ability to expand its borrowing arrangement with certain existing lenders, AdCare's ability to raise equity capital, AdCare's ability to improve operating results, 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 is 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 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 or gain and other non-routine adjustments; 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 and other non-routine adjustments.
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. Adjusted EBITDA from continuing operations and Adjusted EBITDAR from continuing operations are 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 or gain, and certain acquisition related charges and other non-routine adjustments.
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 provide data that assists management 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 000's, except per share data) |
||||||||||||||
(Unaudited) |
||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||
2013 |
2012 |
2013 |
2012 |
|||||||||||
Revenues: |
||||||||||||||
Patient care revenues |
$ |
55,344 |
$ |
52,633 |
$ |
166,986 |
$ |
140,522 |
||||||
Management revenues |
521 |
588 |
1,529 |
1,637 |
||||||||||
Total revenues |
55,865 |
53,221 |
168,515 |
142,159 |
||||||||||
Expenses: |
||||||||||||||
Cost of services (exclusive of facility rent, depreciation |
||||||||||||||
and amortization) |
46,102 |
44,475 |
141,219 |
115,645 |
||||||||||
General and administrative expense |
4,583 |
3,957 |
14,017 |
12,204 |
||||||||||
Audit committee investigation expense |
302 |
- |
2,284 |
- |
||||||||||
Facility rent expense |
1,761 |
1,775 |
5,256 |
5,278 |
||||||||||
Depreciation and amortization |
1,888 |
1,760 |
5,558 |
4,730 |
||||||||||
Salary retirement and continuation costs |
5 |
38 |
154 |
38 |
||||||||||
Total expenses |
54,641 |
52,005 |
168,488 |
137,895 |
||||||||||
Income from Operations |
1,224 |
1,216 |
27 |
4,264 |
||||||||||
Other Income (Expense): |
||||||||||||||
Interest expense, net |
(3,462) |
(3,695) |
(10,253) |
(9,475) |
||||||||||
Acquisition costs, net of gains |
(33) |
(342) |
(607) |
(1,160) |
||||||||||
Derivative gain (loss) |
1,989 |
(2,105) |
2,178 |
(1,342) |
||||||||||
(Loss) gain on extinguishment of debt |
(6) |
500 |
(33) |
500 |
||||||||||
(Loss) gain on disposal of assets |
(6) |
- |
(10) |
2 |
||||||||||
Other income (expense) |
15 |
(229) |
15 |
(258) |
||||||||||
Total other expense, net |
(1,503) |
(5,871) |
(8,710) |
(11,733) |
||||||||||
Loss from Continuing Operations Before Income Taxes |
(279) |
(4,655) |
(8,683) |
(7,469) |
||||||||||
Income tax benefit (expense) |
54 |
(111) |
(24) |
(132) |
||||||||||
Loss from Continuing Operations |
(225) |
(4,766) |
(8,707) |
(7,601) |
||||||||||
(Loss) Income from Discontinued Operations, Net of Tax |
(188) |
126 |
(1,402) |
203 |
||||||||||
Net Loss |
(413) |
(4,640) |
(10,109) |
(7,398) |
||||||||||
Net Loss Attributable to Noncontrolling Interests |
195 |
134 |
629 |
420 |
||||||||||
Net Loss Attributable to AdCare Health Systems, Inc. |
(218) |
(4,506) |
(9,480) |
(6,978) |
||||||||||
Preferred stock dividend |
(306) |
- |
(918) |
- |
||||||||||
Net Loss Attributable to AdCare Health Systems, Inc. Common Stockholders |
$ |
(524) |
$ |
(4,506) |
$ |
(10,398) |
$ |
(6,978) |
||||||
Net (loss) income per Common Share attributable to AdCare Health Systems, Inc. |
||||||||||||||
Common Stockholders - |
||||||||||||||
Basic: |
||||||||||||||
Continuing Operations |
$ |
(0.02) |
$ |
(0.32) |
$ |
(0.61) |
$ |
(0.51) |
||||||
Discontinued Operations |
(0.01) |
0.01 |
(0.09) |
0.01 |
||||||||||
$ |
(0.03) |
$ |
(0.31) |
$ |
(0.70) |
$ |
(0.50) |
|||||||
Net (loss) income per Common Share attributable to AdCare Health Systems, Inc. |
||||||||||||||
Common Stockholders - |
||||||||||||||
Diluted: |
||||||||||||||
Continuing Operations |
$ |
(0.02) |
$ |
(0.32) |
$ |
(0.61) |
$ |
(0.51) |
||||||
Discontinued Operations |
(0.01) |
0.01 |
(0.09) |
0.01 |
||||||||||
$ |
(0.03) |
$ |
(0.31) |
$ |
(0.70) |
$ |
(0.50) |
|||||||
Weighted Average Common Shares Outstanding: |
||||||||||||||
Basic |
14,962 |
14,498 |
14,805 |
13,825 |
||||||||||
Diluted |
14,962 |
14,498 |
14,805 |
13,825 |
ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES |
||||||
CONSOLIDATED BALANCE SHEETS |
||||||
(Amounts in 000's) |
||||||
September 30, |
December 31, |
|||||
2013 |
2012 |
|||||
(Unaudited) |
||||||
ASSETS |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ 12,724 |
$ 15,937 |
||||
Restricted cash and investments |
3,473 |
1,742 |
||||
Accounts receivable, net of allowance of $5,372 and $3,729 |
24,305 |
26,037 |
||||
Prepaid expenses and other |
1,519 |
489 |
||||
Assets of disposal group held for sale |
400 |
6,159 |
||||
Total current assets |
42,421 |
50,364 |
||||
Restricted cash and investments |
11,361 |
7,215 |
||||
Property and equipment, net |
149,676 |
151,064 |
||||
Intangible assets - bed licenses |
2,471 |
2,471 |
||||
Intangible assets - lease rights, net |
5,446 |
6,844 |
||||
Goodwill |
5,023 |
5,023 |
||||
Lease deposits |
1,694 |
1,720 |
||||
Deferred loan costs, net |
4,877 |
6,137 |
||||
Other assets |
22 |
3,611 |
||||
Total assets |
$ 222,991 |
$ 234,449 |
||||
LIABILITIES AND EQUITY |
||||||
Current liabilities: |
||||||
Current portion of notes payable and other debt |
$ 21,634 |
$ 6,941 |
||||
Revolving credit facilities and lines of credit |
3,111 |
1,498 |
||||
Current portion of convertible debt, net of discount |
13,803 |
10,948 |
||||
Accounts payable |
23,054 |
19,503 |
||||
Accrued expenses |
13,799 |
13,730 |
||||
Liabilities of disposal group held for sale |
93 |
3,662 |
||||
Total current liabilities |
75,494 |
56,282 |
||||
Notes payable and other debt, net of current portion: |
||||||
Senior debt |
101,316 |
112,160 |
||||
Bonds, net of discounts |
12,940 |
16,088 |
||||
Revolving credit facilities |
6,167 |
7,706 |
||||
Convertible debt |
7,500 |
12,009 |
||||
Other debt |
231 |
864 |
||||
Derivative liability |
929 |
3,630 |
||||
Other liabilities |
1,516 |
1,394 |
||||
Deferred tax liability |
77 |
104 |
||||
Total liabilities |
206,170 |
210,237 |
||||
Commitments and contingency |
||||||
Preferred stock, no par value; 1,000 shares authorized; 450 shares |
||||||
issued and outstanding |
9,159 |
9,159 |
||||
Stockholders' equity: |
||||||
Common stock and additional paid-in capital, no par value; 29,000 |
||||||
shares authorized; 15,319 and 14,659 issued and outstanding |
45,280 |
41,644 |
||||
Accumulated deficit |
(36,151) |
(25,753) |
||||
Total stockholders' equity |
9,129 |
15,891 |
||||
Noncontrolling interest in subsidiaries |
(1,467) |
(838) |
||||
Total equity |
7,662 |
15,053 |
||||
Total liabilities and equity |
$ 222,991 |
$ 234,449 |
ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES |
|||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||
TRAILING SIX QUARTERS |
|||||||||||
(Amounts in 000's) |
|||||||||||
(Unaudited) |
|||||||||||
For Three Months Ended |
|||||||||||
6/30/2012 |
9/30/2012 |
12/31/2012 |
3/31/2013 |
6/30/2013 |
9/30/2013 |
||||||
Revenues: |
|||||||||||
Patient care revenues |
$46,390 |
$52,633 |
$53,031 |
$55,719 |
$55,923 |
$55,344 |
|||||
Management revenue |
525 |
588 |
519 |
510 |
498 |
521 |
|||||
Total revenues |
46,915 |
53,221 |
53,550 |
56,229 |
56,421 |
55,865 |
|||||
Expenses: |
|||||||||||
Cost of services (exclusive of facility rent, depreciation and amortization) |
36,476 |
44,475 |
46,556 |
47,622 |
47,495 |
46,102 |
|||||
General and administrative expense |
4,295 |
3,957 |
4,800 |
4,928 |
4,505 |
4,583 |
|||||
Audit committee investigation expense |
- |
- |
- |
1,134 |
848 |
302 |
|||||
Facility rent expense |
1,745 |
1,775 |
1,790 |
1,737 |
1,758 |
1,761 |
|||||
Depreciation and amortization |
1,426 |
1,760 |
1,973 |
1,803 |
1,867 |
1,888 |
|||||
Salary retirement and continuation costs |
- |
38 |
5 |
- |
149 |
5 |
|||||
Total expenses |
43,942 |
52,004 |
55,125 |
57,224 |
56,622 |
54,641 |
|||||
Income (Loss) from Operations |
2,973 |
1,217 |
(1,575) |
(995) |
(201) |
1,224 |
|||||
Other Income (Expense): |
|||||||||||
Interest expense, net |
(3,280) |
(3,695) |
(3,749) |
(3,436) |
(3,355) |
(3,462) |
|||||
Acquisition costs, net of gains |
(524) |
(342) |
(802) |
(97) |
(477) |
(33) |
|||||
Derivative gain (loss) |
352 |
(2,105) |
(399) |
2,136 |
(1,947) |
1,989 |
|||||
Gain (loss) on extinguishment of debt |
- |
500 |
- |
(2) |
(25) |
(6) |
|||||
Loss on disposal of assets |
- |
- |
- |
- |
(4) |
(6) |
|||||
Other (expense) income |
(13) |
(229) |
134 |
- |
- |
15 |
|||||
Total other expense, net |
(3,465) |
(5,871) |
(4,816) |
(1,399) |
(5,808) |
(1,503) |
|||||
Loss from Continuing Operations Before Income Taxes |
|||||||||||
Before Income Taxes |
(492) |
(4,655) |
(6,392) |
(2,394) |
(6,009) |
(279) |
|||||
Income tax benefit (expense) |
(18) |
(111) |
35 |
(78) |
- |
54 |
|||||
Loss from Continuing Operations |
(510) |
(4,766) |
(6,357) |
(2,472) |
(6,009) |
(225) |
|||||
Income (Loss) from Discontinued Operations, Net of Tax |
163 |
126 |
6,213 |
(278) |
(936) |
(188) |
|||||
Net Loss |
(347) |
(4,640) |
(144) |
(2,750) |
(6,945) |
(413) |
|||||
Net Loss Attributable to Noncontrolling Interest |
142 |
134 |
236 |
192 |
241 |
195 |
|||||
Net (Loss) Income Attributable to AdCare Health Systems, Inc. |
($205) |
($4,506) |
$92 |
($2,558) |
($6,704) |
($218) |
|||||
Preferred stock dividend |
- |
- |
(156) |
(306) |
(306) |
(306) |
|||||
Net Loss Attributable to AdCare Health Systems, Inc. Common Stockholders |
($205) |
($4,506) |
($64) |
($2,864) |
($7,010) |
($524) |
|||||
ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES |
|||||||||||
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA FROM CONTINUING |
|||||||||||
OPERATIONS AND ADJUSTED EBITDAR FROM CONTINUING OPERATIONS |
|||||||||||
(Amounts in 000's) |
|||||||||||
(Unaudited) |
|||||||||||
For Three Months Ended |
|||||||||||
6/30/2012 |
9/30/2012 |
12/31/2012 |
3/31/2013 |
6/30/2013 |
9/30/2013 |
||||||
Net Loss |
($347) |
($4,640) |
($144) |
($2,750) |
($6,945) |
($413) |
|||||
Impact of discontinued operations |
(163) |
(126) |
(6,213) |
278 |
936 |
188 |
|||||
Net Loss from continuing operations |
(510) |
(4,766) |
(6,357) |
(2,472) |
(6,009) |
(225) |
|||||
Interest expense, net |
3,280 |
3,695 |
3,749 |
3,436 |
3,355 |
3,462 |
|||||
Income tax expense (benefit) |
18 |
111 |
(35) |
78 |
- |
(54) |
|||||
Amortization of stock based compensation |
182 |
269 |
356 |
260 |
291 |
186 |
|||||
Depreciation and amortization |
1,426 |
1,760 |
1,973 |
1,803 |
1,867 |
1,888 |
|||||
Acquisition costs, net of gains |
524 |
342 |
802 |
97 |
477 |
33 |
|||||
(Gain) loss on extinguishment of debt |
- |
(500) |
- |
2 |
25 |
6 |
|||||
Derivative (gain) loss |
(352) |
2,105 |
399 |
(2,136) |
1,947 |
(1,989) |
|||||
Loss on disposal of assets |
- |
- |
- |
- |
4 |
6 |
|||||
Audit committee investigation expense |
- |
- |
- |
1,134 |
848 |
302 |
|||||
Other expense (income) |
- |
218 |
(134) |
- |
- |
(15) |
|||||
Salary retirement and continuation costs |
- |
38 |
5 |
- |
149 |
5 |
|||||
Adjusted EBITDA from continuing operations |
4,568 |
3,272 |
758 |
2,202 |
2,954 |
3,605 |
|||||
Facility rent expense |
1,745 |
1,775 |
1,790 |
1,737 |
1,758 |
1,761 |
|||||
Adjusted EBITDAR from continuing operations |
$6,313 |
$5,047 |
$2,548 |
$3,939 |
$4,712 |
$5,366 |
|||||
ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES |
||||||||||
SUPPLEMENTARY SCHEDULES |
||||||||||
(Unaudited) |
||||||||||
2012 |
2013 |
|||||||||
End of Period Data |
Q1 |
Q2 |
Q3 |
9 Mo. YTD |
Q4 |
Q1 |
Q2 |
Q3 |
9 Mo. YTD |
|
Number of Facilities |
||||||||||
SNF |
||||||||||
Owned |
17 |
18 |
21 |
21 |
24 |
24 |
24 |
24 |
24 |
|
Leased |
9 |
9 |
9 |
9 |
9 |
9 |
9 |
9 |
9 |
|
VIE |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Managed |
10 |
10 |
10 |
10 |
10 |
10 |
10 |
10 |
10 |
|
ALF |
||||||||||
Owned |
2 |
2 |
2 |
2 |
2 |
2 |
2 |
2 |
2 |
|
VIE |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
|
Managed |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
IL |
||||||||||
Managed |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
|
Total |
40 |
41 |
44 |
44 |
47 |
47 |
47 |
47 |
47 |
|
Number of Operational Beds |
||||||||||
SNF |
||||||||||
Owned |
1,870 |
1,947 |
2,311 |
2,311 |
2,579 |
2,579 |
2,579 |
2,579 |
2,579 |
|
Leased |
1,090 |
1,090 |
1,090 |
1,090 |
1,090 |
1,090 |
1,090 |
1,090 |
1,090 |
|
VIE |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Managed |
813 |
813 |
813 |
813 |
813 |
813 |
813 |
813 |
813 |
|
ALF |
||||||||||
Owned |
112 |
112 |
112 |
112 |
112 |
112 |
112 |
112 |
112 |
|
VIE |
104 |
104 |
104 |
104 |
104 |
104 |
104 |
104 |
104 |
|
Managed |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
IL |
||||||||||
Managed |
83 |
83 |
83 |
83 |
83 |
83 |
83 |
83 |
83 |
|
Total |
4,072 |
4,149 |
4,513 |
4,513 |
4,781 |
4,781 |
4,781 |
4,781 |
4,781 |
|
SNF + ALF % Owned |
65.7% |
66.5% |
69.9% |
69.9% |
71.9% |
71.9% |
71.9% |
71.9% |
71.9% |
|
SNF + ALF % Leased |
34.3% |
33.5% |
30.1% |
30.1% |
28.1% |
28.1% |
28.1% |
28.1% |
28.1% |
|
Revenue Mix % (b) |
||||||||||
Skilled (c) |
31.1% |
30.0% |
26.7% |
29.1% |
30.5% |
32.3% |
31.5% |
28.8% |
30.9% |
|
Medicaid |
52.8% |
53.6% |
56.5% |
54.5% |
53.0% |
51.7% |
52.9% |
53.4% |
52.6% |
|
Private + Other |
16.1% |
16.5% |
16.7% |
16.5% |
16.6% |
16.0% |
15.7% |
17.8% |
16.5% |
|
Total |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
|
Patient Days (b) |
||||||||||
Skilled (c) |
29,814 |
31,601 |
32,169 |
93,584 |
37,150 |
40,794 |
40,360 |
35,828 |
116,982 |
|
Medicaid |
140,265 |
154,704 |
177,601 |
472,570 |
173,813 |
178,768 |
185,292 |
188,268 |
552,328 |
|
Private + Other |
36,272 |
39,529 |
45,313 |
121,114 |
45,933 |
46,806 |
45,353 |
48,698 |
140,857 |
|
Total |
206,351 |
225,834 |
255,083 |
687,268 |
256,896 |
266,368 |
271,005 |
272,794 |
810,167 |
|
Patient Day Mix % (a) |
||||||||||
Skilled (c) |
15.5% |
14.9% |
13.4% |
14.5% |
15.3% |
16.2% |
15.7% |
13.8% |
15.2% |
|
Medicaid |
71.9% |
72.3% |
73.2% |
72.5% |
71.1% |
70.3% |
71.5% |
72.0% |
71.3% |
|
Private + Other |
12.6% |
12.8% |
13.4% |
13.0% |
13.6% |
13.5% |
12.8% |
14.1% |
13.5% |
|
Total |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
|
Revenue Rates Per Patient Day (a) |
||||||||||
Skilled (c) |
$432.82 |
$439.89 |
$437.38 |
$436.77 |
$434.83 |
$441.70 |
$436.07 |
$444.92 |
$440.75 |
|
Medicaid |
$157.12 |
$161.35 |
$168.17 |
$162.67 |
$162.11 |
$161.59 |
$160.18 |
$157.66 |
$159.78 |
|
Private + Other |
$174.23 |
$172.33 |
$167.69 |
$171.09 |
$174.73 |
$176.48 |
$175.86 |
$176.17 |
$176.17 |
|
Weighted Average Total |
$210.09 |
$213.88 |
$214.26 |
$212.89 |
$214.10 |
$216.58 |
$213.46 |
$209.61 |
$213.19 |
|
Average Daily Census (b) |
||||||||||
Skilled (c) |
379 |
353 |
356 |
390 |
434 |
453 |
444 |
389 |
429 |
|
Medicaid |
1,785 |
1,727 |
1,963 |
1,969 |
2,029 |
1,986 |
2,033 |
2,046 |
2,023 |
|
Private + Other |
462 |
441 |
501 |
505 |
536 |
520 |
501 |
529 |
516 |
|
Total Average Daily Census |
2,627 |
2,522 |
2,820 |
2,864 |
2,999 |
2,960 |
2,978 |
2,965 |
2,968 |
|
Occupancy (b) |
82.7% |
77.5% |
78.0% |
79.2% |
77.2% |
76.2% |
76.7% |
76.3% |
76.4% |
|
(in '000) |
||||||||||
Total Revenue (b) |
$42,023 |
$46,915 |
$53,221 |
$142,159 |
$53,550 |
$56,229 |
$56,421 |
$55,865 |
$168,515 |
|
Adjusted EBITDAR (b) |
$3,552 |
$6,313 |
$5,047 |
$14,912 |
$2,548 |
$3,939 |
$4,712 |
$5,366 |
$14,017 |
|
Adjusted EBITDA (b) |
$1,793 |
$4,568 |
$3,272 |
$9,633 |
$758 |
$2,202 |
$2,954 |
$3,605 |
$8,761 |
|
(a) Skilled Nursing Only - Excludes Managed Facilities |
||||||||||
(b) AdCare Consolidated incorporating Discontinued Operations for all period presented |
||||||||||
(c) Skilled is defined as Medicare A + Managed Care RUGS |
SOURCE AdCare Health Systems, Inc.
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