SOURCE: AdCare Health Systems, Inc.

AdCare Health Systems, Inc.

March 08, 2012 19:25 ET

AdCare Health Systems Reports Record Fourth Quarter and Full Year 2011 Results

Annual Revenues up 198% to Record $151.4 Million, Driving Record Adjusted EBITDAR of $16.8 Million

SPRINGFIELD, OH--(Marketwire - Mar 8, 2012) - AdCare Health Systems, Inc. (NYSE Amex: ADK), a leading long-term care provider, reported financial results for the fourth quarter and full year ended December 31, 2011.

Financial Highlights

  • Q4 2011 adjusted EBITDAR from continuing operations, up 176% to $4.5 million versus Q4 2010
  • Record annual revenues, up 198% to $151.4 million
  • Record annual income from operations of $2.7 million
  • Record annual adjusted EBITDAR from continuing operations, up 453% to $16.8 million
  • Acquisitions completed in 2011 added more than $76 million in estimated annualized revenue run-rate
  • Total annualized revenue run-rate is expected to exceed an estimated $350 million

Q4 and FY2011 Summary of Financial Results
Revenues in the fourth quarter of 2011 increased 76% to a record $45.4 million from $25.8 million in the same year-ago quarter. Revenue for the full year of 2011 increased 198% to a record $151.4 million from $50.8 million in 2010. The increases in revenue in both periods were primarily due to acquisitions completed since December 31, 2010 as part of the 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, driven primarily by an increase in occupancy and skilled mix. A more detailed discussion and analysis of the company's performance will be available in AdCare's Annual Report on Form 10-K for the year ended December 31, 2011 as filed with the Securities and Exchange Commission.

Loss from operations in the fourth quarter of 2011 was $0.4 million, as compared to a loss from operations of $0.8 million in the fourth quarter of 2010. Income from operations for the full year of 2011 was a record $2.7 million, as compared to a loss from operations of $1.9 million in 2010. The increase in income from operations was primarily due to acquisitions and revenue improvement in acquired facilities, partially offset by salary and retirement costs of $1.5 million incurred only in 2011.

For earnings attributable to AdCare and its shareholders, the company recorded a net loss in the fourth quarter of 2011 of $4.5 million or $(0.37) per share, compared to a net loss of $1.0 million or $(0.12) per share in the fourth quarter of 2010. The fourth quarter of 2011 net loss included acquisition expenses of approximately $0.4 million compared to $1.2 million of acquisition gains in the fourth quarter of 2010, and a non-cash derivative gain of $0.2 million compared to a loss of $0.3 million in the fourth quarter of 2010. Total non-cash stock-based compensation in the fourth quarter of 2011 was $0.3 million, as compared to $0.2 million in the same year-ago quarter. Interest expense in the fourth quarter of 2011 increased $1.4 million due to new financing from acquisitions.

As part of the AdCare's strategy to focus on the growth of skilled nursing facilities, the company decided in the fourth quarter of 2011 to exit the home health segment of the business. This segment has represented only 1% of total revenues for the company in 2011 and has experienced declining results of operations resulting in a net loss of $1.7 million in the fourth quarter of 2011 inclusive of a goodwill impairment charge. For fiscal year 2011, net loss was $6.2 million or $(0.62) per share, versus a net loss of $2.7 million or $(0.38) per share in 2010. The 2011 net loss included acquisition expenses of approximately $1.2 million compared to $2.4 million of acquisition gains in 2010. The 2011 loss also includes an increase of approximately $5.9 million in interest expense partially offset by the improvement in income from operations.

Adjusted EBITDAR from continuing operations in the fourth quarter of 2011 totaled $4.5 million, up 176% from adjusted EBITDAR from continuing operations of $1.6 million in the fourth quarter of 2010. Adjusted EBITDAR from continuing operations for the full year 2011 totaled a record $16.8 million, an increase of 453% from an adjusted EBITDAR from continuing operations of $3.0 million in 2010. (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 December 31, 2011 totaled $8.7 million compared to $5.0 million at December 31, 2010.

Q4 2011 Operational Highlights

  • Appointed David Rubenstein to the position of executive vice president and chief operating officer. Rubenstein brings to AdCare extensive operational experience in delivering long-term care and in implementing operating strategies that maximize facility productivity, minimize costs and increase Medicare census.

  • Completed the acquisition of a skilled nursing and assisted living community in Mountain View, Arkansas, with an aggregate of 128 beds in service and an estimated $5.4 million in gross annualized revenues (according to its most recent financials). Its addition was also immediately accretive to AdCare's earnings.

  • Completed the acquisition of a skilled nursing and assisted living community in Springfield, Ohio, which has 179 beds in service and an estimated $12.5 million in gross annualized revenues (according to its most recent financials). Management obtained effective control of the facilities on January 1, 2012. Its addition will be immediately accretive to AdCare's earnings.

  • Signed a purchase agreement for three skilled nursing facilities in Arkansas with an aggregate of 437 beds and an estimated $15.9 million in gross annualized revenues (according to its most recent financials). The acquisition is anticipated to be completed by March 31, 2012.

  • Signed a purchase agreement for five skilled nursing facilities in Oklahoma that has, on aggregate, 456 beds in service and an estimated $13.2 million in gross annualized revenues. The acquisition is anticipated to be immediately accretive to the company's earnings upon closing, which is expected in the second quarter of 2012.

  • At the end of the fourth quarter, the company operated 42 facilities comprised of 33 skilled nursing centers, eight assisted living residences and one independent living/senior housing facility, with 3,737 total beds/units in service. Of these 42 facilities, 20 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 record 2011 results reflect successful execution on our M&A program, resulting in nearly tripling our revenues over last year and record growth in adjusted EBITDAR from continuing operations," said Boyd P. Gentry, AdCare's president and chief executive officer. "Our corporate strategy of optimizing skilled nursing results through guiding local facility leadership to increase their post-acute and Medicare census has helped drive this strong performance."

Chris Brogdon, AdCare's chief acquisition officer, commented: "AdCare has put under contract 59 facilities since we began our M&A campaign in the fall of 2009 and 32 since the beginning of 2011. During the quarter, our M&A program expanded operations into the Southwest, established two additional facilities in Arkansas and Ohio, and put five additional facilities under contract in Oklahoma and five in Arkansas. We continue to expect our new facilities and these pending acquisitions to improve our overall EBITDA margin."

The company plans to continue pursuing an aggressive M&A program. Combining its current annualized run-rate with transactions currently in the process of closing, AdCare's estimated annualized revenue run-rate is expected to exceed $350 million. This would represent an increase of more than 131% over the company's revenues in 2011 and an increase of more than 13 times its annualized revenue run-rate since it initiated its M&A campaign in the fall of 2009.

"We are currently evaluating several attractive opportunities in the Southern region of the U.S.," added Brogdon, "with accretive acquisitions and the optimization of our facilities continuing to be our major focus in 2012."

Conference Call and Webcast
AdCare will hold a conference call to discuss its 2011 financial results tomorrow, Friday, March 9, 2012 at 8:30 a.m. Eastern time. Management will host the presentation, followed by a question and answer period.

Date: Friday, March 9, 2012
Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)
Dial-In Number: 1-877-941-1427
International: 1-480-629-9664
Conference ID#: 4520448

The conference call will be broadcast simultaneously at here and available for replay via the investor section of the company's Web site 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 the Liolios Group at 1-949-574-3860.

A replay of the call will be available after 11:30 a.m. Eastern time on March 9, 2012 and will remain available until April 9, 2012:

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay pin number: 4520448

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, Ohio Purchase $12.5 million 30-year, fixed-rated, tax-exempt bond issuance, and traditional bank loan Closed 12-30-11
15 Nursing Homes
(Pending)
1,991beds NC, SC, TN & VA Purchase (two), Lease (nine), and Manage (four) $121.3 million Cash, shares of AdCare common stock & seller notes Closing Expected Q3-12
Five Nursing Facilities
(Pending)
456
beds
Oklahoma Purchase $13.2 million Long-term loan (SBA guaranteed) Closing Expected Q2-12
Three Nursing Facilities (Pending) 437 beds Arkansas Purchase $15.9 million Traditional bank loan Closing Expected Q1-12
Nursing Facility (Pending) 2 141 beds Arkansas Purchase $6.4 million Traditional bank loan Closing Expected Q2-12
Nursing Facility (Pending) 2 120 beds Arkansas Purchase $3.3 million Traditional bank loan Closing Expected Q2-12
Total 6,331 $346.3 million

1ARR= Annualized Revenue Run-rate at the time of purchase/lease or signing, estimated
2Signed purchase agreement subsequent to Q4 2011.

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 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, 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, 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, facilities mentioned in this press release are 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 Systems' 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
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND ADJUSTED EBITDAR FROM CONTINUING OPERATIONS
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2011 2010 2011 2010
Net Loss $ (4,828,305 ) $ (1,165,138 ) $ (7,551,930 ) $ (2,199,779 )
Impact of discontinued operations 1,678,713 (299,003 ) 1,963,382 (174,369 )
Net Loss from continuing operations (3,149,592 ) (1,464,141 ) (5,588,548 ) (2,374,148 )
Interest expense, net 2,688,346 1,332,661 8,199,221 2,328,898
Income tax (benefit) expense (150,939 ) 9,892 263,195 20,533
Amortization of stock based compensation 277,209 181,060 1,018,673 818,765
Depreciation and amortization 1,749,394 490,677 3,937,943 1,261,485
Acquisition costs, net of gains 373,370 (1,219,629 ) 1,162,802 (2,446,483 )
Loss on extinguishment of debt 5,153 228,203 140,994 228,203
Derivative (gain) loss (150,860 ) 343,144 (957,517 ) 343,144
Other income from recovery of receivables - - (632,001 ) -
Salary retirement and continuation costs 829,587 - 1,451,192 -
Adjusted EBITDA from continuing operations 2,471,668 (98,133 ) 8,995,954 180,397
Facility rent expense 2,008,030 1,719,231 7,795,171 2,858,130
Adjusted EBITDAR from continuing operations $ 4,479,698 $ 1,621,098 $ 16,791,125 $ 3,038,527
ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2011 2010 2011 2010
Revenues:
Patient care revenues $ 45,136,535 $ 25,320,277 $ 149,732,749 $ 48,697,180
Management revenues 307,727 528,677 1,619,981 2,093,334
Total revenues 45,444,262 25,848,954 151,352,730 50,790,514
Expenses:
Cost of services (exclusive of facility rent, depreciation and amortization) 37,303,418 21,494,433 122,219,325 40,609,964
General and administrative expenses 3,922,344 2,968,807 13,280,517 7,935,760
Facility rent expense 2,008,030 1,719,231 7,795,171 2,858,130
Depreciation and amortization 1,749,394 490,677 3,937,943 1,261,485
Salary retirement and continuation costs 829,587 - 1,451,192 -
Total expenses 45,812,773 26,673,148 148,684,148 52,665,339
Income (Loss) from Operations (368,511 ) (824,194 ) 2,668,582 (1,874,825 )
Other Income (Expense):
Interest expense, net (2,688,346 ) (1,332,661 ) (8,199,221 ) (2,328,898 )
Loss on extinguishment of debt (5,153 ) (228,203 ) (140,994 ) (228,203 )
Derivative gain (loss) 150,860 (343,144 ) 957,517 (343,144 )
Acquisition costs, net of gains (373,370 ) 1,219,629 (1,162,802 ) 2,446,483
Other income (expense) (16,011 ) 54,324 551,565 (25,028 )
Total other income (expense), net (2,932,020 ) (630,055 ) (7,993,935 ) (478,790 )
Loss from Continuing Operations Before Income Taxes (3,300,531 ) (1,454,249 ) (5,325,353 ) (2,353,615 )
Income tax benefit (expense) 150,939 (9,892 ) (263,195 ) (20,533 )
Loss from Continuing Operations (3,149,592 ) (1,464,141 ) (5,588,548 ) (2,374,148 )
(Loss) Income from discontinued operations, net of tax (1,678,713 ) 299,003 (1,963,382 ) 174,369
Net Loss (4,828,305 ) (1,165,138 ) (7,551,930 ) (2,199,779 )
Net Loss (Income) Attributable to Noncontrolling Interests 298,227 121,821 1,387,675 (543,842 )
Net Loss Attributable to AdCare Health Systems (4,530,078 ) (1,043,317 ) (6,164,255 ) (2,743,621 )
Net Loss per Common Share - Basic and Diluted:
Continuing Operations $ (0.23 ) $ (0.15 ) $ (0.42 ) $ (0.40 )
Discontinued Operations (0.14 ) 0.03 (0.20 ) 0.02
$ (0.37 ) $ (0. 12 ) $ (0.62 ) $ (0.38 )
Weighted Average Common Shares Outstanding - Basic and Diluted 12,180,281 8,630,169 9,991,142 7,223,633
ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31,
ASSETS 2011 2010
Current Assets:
Cash and cash equivalents $ 7,363,953 $ 3,911,140
Restricted cash and cash equivalents 1,383,196 1,047,454
Accounts receivable, net 18,782,052 11,215,187
Prepaid expenses and other 662,731 1,243,663
Assets of disposal group held for sale 46,942 1,844,018
Total current assets 28,238,874 19,261,462
Restricted cash and investments 4,869,829 3,099,936
Property and equipment, net 105,143,341 43,660,350
Intangible assets - bed licenses 1,189,307 1,189,307
Intangible assets - lease rights, net 8,460,003 8,850,538
Goodwill 905,854 905,854
Escrow deposits for acquisitions 3,672,169 1,725,086
Lease deposits 1,685,040 1,670,282
Deferred loan costs, net 4,817,875 2,532,156
Other assets 121,743 63,935
Total assets $ 159,104,035 $ 82,958,906
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of notes payable and other debt $ 4,566,547 $ 1,495,496
Revolving credit facilities and lines of credit 7,342,943 1,950,132
Accounts payable 12,074,582 3,411,322
Accrued expenses 9,881,207 9,664,776
Liabilities of disposal group held for sale 240,138 636,452
Total current liabilities 34,105,417 17,158,178
Notes payable and other debt, net of current portion:
Senior debt, net of discounts 87,770,571 37,591,390
Convertible debt, net of discounts 14,613,765 9,379,761
Revolving credit facilities 1,308,227 -
Other debt 1,400,001 5,239
Derivative liability 1,889,198 2,905,750
Other liabilities 2,437,354 1,267,429
Deferred tax liability 86,000 41,066
Total liabilities 143,610,533 68,348,813
Stockholders' equity:
Preferred stock, no par value; 1,000,000 shares authorized; no shares issued or outstanding - -
Common stock and additional paid-in capital, no par value;
29,000,000 shares authorized; 12,192,669 and 8,766,657 shares issued and outstanding 35,047,209 26,611,870
Accumulated deficit (18,713,125 ) (12,548,870 )
Total stockholders' equity 16,334,084 14,063,000
Noncontrolling interest in subsidiaries (840,582 ) 547,093
Total equity 15,493,502 14,610,093
Total liabilities and stockholders' equity $ 159,104,035 $ 82,958,906
ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
BY QUARTER FOR 2011
(UNAUDITED)
Quarter Ended
3/31/2011 6/30/2011 9/30/2011 12/31/2011
Revenues:
Patient care revenues $ 30,531,827 $ 33,872,091 $ 40,192,296 $ 45,136,535
Management revenue 497,883 484,278 330,093 307,727
Total revenues 31,029,710 34,356,369 40,522,389 45,444,262
Expenses:
Cost of services (exclusive of facility rent, depreciation and amortization) 25,118,630 27,160,660 32,636,617 37,303,418
General and administrative expenses 2,960,996 3,130,036 3,267,141 3,922,344
Facility rent expense 1,902,723 1,946,868 1,937,550 2,008,030
Depreciation and amortization 646,729 705,596 836,224 1,749,394
Salary retirement and continuation costs - 621,605 - 829,587
Total expenses 30,629,078 33,564,765 38,677,532 45,812,773
Income (Loss) from Operations 400,632 791,604 1,844,857 (368,511 )
Other Income (Expense):
Interest expense, net (1,450,358 ) (1,837,805 ) (2,222,712 ) (2,688,346 )
Loss on extinguishment of debt - (77,400 ) (58,441 ) (5,153 )
Derivative gain (loss) (1,349,866 ) (2,588,171 ) 4,744,694 150,860
Acquisition costs, net of gains 973,339 (616,120 ) (1,146,651 ) (373,370 )
Other income (expense) 611,612 (24,665 ) (19,371 ) (16,011 )
Total other income (expense), net (1,215,273 ) (5,144,161 ) 1,297,519 (2,932,020 )
Income (Loss) from Continuing Operations before income taxes (814,641 ) (4,352,557 ) 3,142,376 (3,300,531 )
Income tax benefit (expense) (89,642 ) (120,711 ) (203,781 ) 150,939
(Loss) income from Continuing Operations (904,283 ) (4,473,268 ) 2,938,595 (3,149,592 )
Loss from discontinued operations, net of tax (37,350 ) (89,109 ) (158,210 ) (1,678,713 )
Net Income (Loss) (941,633 ) (4,562,377 ) 2,780,385 (4,828,305 )
Net Loss Attributable to Noncontrolling Interests 176,337 165,507 747,604 298,227
Net Income (Loss) Attributable to AdCare Health Systems $ (765,296 ) $ (4,396,870 ) $ 3,527,989 $ (4,530,078 )
ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
RECONCILIATION OF NET LOSS (INCOME) TO ADJUSTED EBITDA AND EBITDAR
FROM CONTINUING OPERATIONS BY QUARTER FOR 2011
(UNAUDITED)
Quarter Ended
3/31/2011 6/30/2011 9/30/2011 12/31/2011
Net Income (Loss) $ (941,633 ) $ (4,562,377 ) $ 2,780,385 $ (4,828,305 )
Impact of discontinued operations 37,350 89,109 158,210 1,678,713
Net Income (Loss) from continuing operations (904,283 ) (4,473,268 ) 2,938,595 (3,149,592 )
Interest expense, net 1,450,358 1,837,805 2,222,712 2,688,346
Income tax (benefit) expense 89,642 120,711 203,781 (150,939 )
Amortization of stock based compensation 389,994 167,487 183,983 277,209
Depreciation and amortization 646,729 705,596 836,224 1,749,394
Acquisition costs, net of gains (973,339 ) 616,120 1,146,651 373,370
Loss on extinguishment of debt - 77,400 58,441 5,153
Derivative (gain) loss 1,349,866 2,588,171 (4,744,694 ) (150,860 )
Other income from recovery of receivables (632,001 ) - - -
Salary retirement and continuation costs - 621,605 - 829,587
Adjusted EBITDA from continuing operations 1,416,966 2,261,627 2,845,693 2,471,668
Facility rent expense 1,902,723 1,946,868 1,937,550 2,008,030
Adjusted EBITDAR from continuing operations $ 3,319,689 $ 4,208,495 $ 4,783,243 $ 4,479,698

Contact Information

  • 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