December 31, 2010 08:30 ET

AdCare Health Systems Completes Acquisition of Mountain Trace Nursing Center

AdCare Closes 2010 With Expected Annualized Run Rate Exceeding $140 Million, up 424% Over 2009

SPRINGFIELD, OH--(Marketwire - December 31, 2010) - AdCare Health Systems, Inc. (NYSE Amex: ADK), a recognized innovator in senior living and health care facility management, has completed the acquisition of Mountain Trace Nursing Center, a 106-bed nursing facility in Sylva, North Carolina for $6.1 million, with the closing effective on January 1, 2011.

The facility generates an estimated $7.8 million in annualized revenues, and is expected to immediately provide positive cash flow to AdCare.

"Mountain Trace is the thirteenth facility we've acquired or leased since we began our M&A campaign at the end of last year," said Chris Brogdon, AdCare's vice chairman and chief acquisitions officer. "It represents our first entrance into North Carolina and is in line with our expansion into the Southeast. As reflected in this facility's high occupancy, this acquisition is well-supported by regional demographics."

With the addition of Mountain Trace, plus three skilled nursing centers AdCare expects to close in the first quarter of 2011, the company's estimated annualized revenue run-rate exceeds $140 million, representing an increase of more than 424% over annual revenues of $26.7 million in 2009.

David A. Tenwick, AdCare's chairman, commented: "In 2010, our extensive M&A activity expanded both our organizational structure and territorial landscape, including a new Southeast division to manage our newly acquired facilities in North Carolina, Georgia, and Alabama. Given the timing of these acquisitions over the course of 2010, we maintain our expectation for revenues of approximately $52 million for 2010, or nearly double 2009. Our outlook for 2011 remains extremely bullish, in terms of both organic and acquisition-related growth. We will continue to aim higher as we build upon the strong foundation we laid in 2010."

Added Brogdon: "Choice acquisition and leasing opportunities continue to emerge in the Southern region of the U.S., as well as around our home base in the Midwest. Our M&A pipeline will remain a major focus as we begin 2011."

AdCare plans to finance the acquisition of Mountain Trace through a bank loan guaranteed by the United States Department of Agriculture (USDA) under a special program designed to provide long-term financing for rural projects at favorable rates. Until the documentation necessary for the USDA guaranteed financing is completed, AdCare secured the transaction with a short-term bridge bank loan.

About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE Amex: ADK) is a recognized innovator in senior living and health care facility management. AdCare develops, owns and manages assisted living facilities, nursing homes and retirement communities, as well as provides home health care services. Since its inception in 1988, AdCare's mission has been to provide the highest quality of healthcare services to the elderly. For more information about AdCare, visit

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 such statements are not forward-looking. Statements in this announcement that are forward-looking include, but are not limited to, the expectation that when combined with other transactions closed earlier this year, AdCare's estimated annualized revenue run-rate would exceed $140 million with the close of Mountain Trace and three nursing homes expected to close in the first quarter of 2011. Such forward-looking statements reflect management's beliefs and assumptions and are based on information currently available to management. The forward-looking statements involve known and unknown risks, results, performance or achievements of the Company to differ materially from those expressed or implied in such statements. Such factors are identified in the public filings made by the Company with the Securities and Exchange Commission and include the Company'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 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.

Contact Information

  • Company Contact
    Chris Brogdon
    Vice Chairman & CAO
    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