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AdCare Health Systems, Inc. Reports Financial Results for 2007
Continues To Reduce Losses
SPRINGFIELD, Ohio, March 31, 2008 /PRNewswire-FirstCall/ — AdCare Health Systems, Inc. (AMEX: ADK), an Ohio based long term care, home care and management company today reported financial results for its year ending December 31, 2007.
Revenues for the year ended December 31, 2007 were $23,667,756 as compared to $22,549,485 in 2006, an increase of $1,118,271. The improvement was primarily due to increased occupancy in our assisted living facilities and an increase in visits made by our nurses and care givers at our home health care division.
The loss, before discontinued operations, for the year ended December 31, 2007 was $805,967 as compared to a loss of $2,413,795 for 2006, an improvement of $1,607,828 or 67%. In general, the improvement was due to increased occupancy at our assisted living properties, more home health care visits, lower interest expense as a result of the expenses related to our mezzanine financing in 2005 being fully recognized in 2006 and increasing the reserve for our investment note in the Lincoln Lodge property.
The net loss for the year ended December 31, 2007 was $218,928 as compared to a loss of $2,441,217 for 2006, an improvement of $2,222,289 or 89% and helped by recognizing a gain of $619,605 on the sale of assets in discontinued operations. Basic and diluted net loss per share for 2007 was $0.05 as compared to a basic and diluted net loss per share of $1.09 for 2006, an improvement of $1.04 per share.
David A. Tenwick, Chairman of AdCare, stated that "AdCare reduced its losses in each quarter of 2007 as compared to 2006 and continues to move toward profitability in 2008. Going public in November of 2006 was the prelude to expanding our operations, securing liquidity for our shareholders and having the ability to use our stock for making acquisitions". In that regard, Mr. Tenwick added that he is excited about having GCC and Prospect Financial Advisors "on board to assist in identifying, evaluating and securing alternative capital, financing and investment sources to further AdCare’s expansion plans."
AdCare Health Systems, Inc. will host a conference call this afternoon, Monday, March 31st at 4:15 ESDT. The dial-in number is 1-800-218-0713. For a replay through April 14, 2008, the dial-in number is 1-800-405-2236 and the pass code is 11110628#.
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.