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AdCare Health Systems, Inc. Reports Financial Results for 2006
NEW YORK, April 3 /PRNewswire-FirstCall/ -- AdCare Health Systems, Inc. (Amex: ADK - News), an Ohio based long term care and management company, today reported financial results for the year ended December 31, 2006.
Revenues for the year ended December 31, 2006 were $22,549,485 as compared to $21,900,360 in 2005, an increase of $649,125. The increase was due primarily to increases in patient rental fees, management fees and more home health care visits. The net loss attributable to common shareholders for the year ended December 31, 2006 was $2,441,217 as compared to $1,153,551 in 2005, an increase of 1,287,666. Of the loss in 2006, $1,134,000 is attributable to expenses related to issuance costs in connection with mezzanine financing, $437,000 is attributable to increasing the reserves for the Lincoln Lodge note receivable and the balance of the loss is attributable to overall lower occupancy levels and increased operating expenses.
"2006 was a year of transition for AdCare," commented David A. Tenwick, AdCare's Chairman. "The Company completed an initial public offering in November, listed its common shares on the American Stock Exchange, paid off some debt and set the stage for what we hope to be a successful 2007."
About AdCare Health Systems, Inc.
AdCare Health Systems, Inc. (Amex: ADK) develops, owns and manages assisted living facilities, nursing homes and retirement communities and provides home health care services. Prior to becoming a publicly traded company in November of 2006, AdCare operated as a private company for 18 years. AdCare's 920 employees provide high-quality care for patients and residents residing in the 15 facilities that they manage, seven of which are assisted living facilities, six skilled nursing centers and two independent senior living communities. The Company has ownership interests in seven of those facilities. In the ever expanding marketplace of long term care, AdCare's mission is to provide quality healthcare services to the elderly.
Safe Harbor Statement
Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of federal law. 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.