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AdCare Health Systems, Inc. Reports 2007 First Quarter Earnings Results
NEW YORK, May 15 /PRNewswire-FirstCall/ -- AdCare Health Systems, Inc. (Amex: ADK - News), an Ohio based long term care, home care and management company, today reported financial results for its first quarter of 2007.
Revenues for the quarter ended March 31st, 2007 were $5,824,348 as compared to $5,395,606 for the same quarter in 2006, an increase of $428,742, or 7.9%. Most of the increase was due to better occupancy at our assisted living communities and increased utilization of our home health services.
The loss before discontinued operation for the quarter ended March 31st, 2007 was $124,206 as compared to a loss of $661,530 for the first quarter ended March 31st, 2006, an improvement of $537,324, or 81% for the quarter. The improvement is the result of increased occupancy at our assisted living properties, increased visits by our home health division and lower interest expense as a result of expenses related to the mezzanine financing in 2005 being fully recognized in 2006. Basic and diluted net loss per share for the three months ended March 31st, 2007 was $0.04 as compared to $0.33 for the three months ended March 31st, 2006, an improvement of $0.29 per share.
David A. Tenwick, AdCare's Chairman, stated that he was pleased to see the improvement in the Company's income from continuing operations. "Income from continuing operations for the first quarter of 2007 was $183,831, an improvement of $136,994 from the same quarter in 2006, an increase of 292%." Mr. Tenwick further stated that he believes AdCare is moving in the right direction and looks for continued improvement in 2007.
ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2007 2006
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $1,808,373 $2,136,414
Certificate of deposit, restricted 198,266 198,266
Accounts receivable:
Long-term care resident receivables, net 1,784,761 1,949,745
Management, consulting and
development receivables, net 197,854 254,321
Advances and receivables from affiliates 23,846 35,897
Assets of discontinued operations 7,520 4,677
Prepaid expenses and other 352,900 337,638
Total current assets 4,373,520 4,916,958
Restricted Cash 947,257 914,941
Property and Equipment, Net 13,699,322 13,750,870
Note Receivable, Net 248,413 257,413
License, Net 1,189,307 1,189,306
Goodwill 2,638,193 2,638,193
Assets of Discontinued Operations,
Net of Current Portion 869,929 880,430
Other Assets 821,246 838,283
Total assets $24,787,187 $25,386,394
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of notes payable
and other debt $751,408 $ 744,131
Current portion of notes payable
to stockholders 825,978 828,344
Accounts payable and accrued expenses 3,371,836 3,804,590
Liabilities of discontinued operations 21,179 22,177
Total current liabilities 4,970,401 5,399,242
Notes Payable and Other Debt, Net of
Current Portion 12,822,088 12,909,162
Other Liabilities 262,296 262,597
Forward Purchase Contract 900,000 900,000
Liabilities of Discontinued Operations 852,306 848,394
Minority Interest in Equity of
Consolidated Entities 188,133 160,259
Total liabilities 19,995,224 20,479,654
Stockholders' equity:
Preferred stock, no par value;
500,000 shares authorized;
no shares issued or outstanding - -
Common stock and additional paid-in
capital, no par value;
14,500,000 shares authorized; 3,786,129
and 3,778,129 shares issued and
outstanding, respectively 13,877,165 13,857,166
Accumulated deficit (9,085,202) (8,950,426)
Total stockholders' equity 4,791,963 4,906,740
Total liabilities and
stockholders' equity $24,787,187 $25,386,394
See notes to consolidated financial statements
ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three-Months Ended
March 31,
2007 2006
Revenues:
Patient care revenue $5,366,640 $4,965,665
Management, consulting and development
fee revenue 457,708 429,941
Total revenue 5,824,348 5,395,606
Expenses:
Payroll and related payroll costs 3,688,575 3,522,632
Other operating expenses 1,779,752 1,652,190
Depreciation and amortization 172,190 173,947
Total expenses 5,640,517 5,348,769
Income from Continuing Operations 183,831 46,837
Other Income (Expense):
Interest income 16,580 2,018
Interest expense, others (296,743) (710,262)
Interest expense, related parties - (21,538)
Minority interest in earnings of
consolidated entities (27,874) 21,415
(308,037) (708,367)
Loss Before Discontinued Operations (124,206) (661,530)
Discontinued Operations:
Loss from discontinued operations (10,571) 6,446
Net Loss (134,777) (655,084)
Return to Members - -
Loss Attributable to Common Stockholders $(134,777) $(655,084)
Net Loss Per Share, Basic and Diluted:
Continuing operations $(0.04) $(0.33)
Discontinued operations 0.00 0.00
$(0.04) $(0.33)
Weighted Average Common Shares Outstanding,
Basic 3,786,129 1,996,072
Diluted 3,786,129 1,996,072
See notes to consolidated financial statements
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.