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AdCare Health Systems, Inc. Reports 2008 Second Quarter Earning Results
SPRINGFIELD, Ohio, August 19, 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 second quarter of 2008.
Revenues for the quarter ended June 30, 2008 were $6,016,536 as compared to $5,872,377 for the same quarter in 2007, an increase of $144,159. The increase was mostly due to better occupancy at our skilled nursing centers and our assisted living communities and increased rentals at our assisted living communities.
The net income for the quarter ended June 30, 2008 was $22,963 as compared to a loss of $212,880 for the second quarter ended June 30, 2007, an improvement of $235,843. The improvement was due primarily to a gain of $413,593 recognized in the acquisition of the New Lincoln Lodge, a 50 unit retirement and assisted living facility located in Columbus, Ohio. Basic and diluted net income per share for the quarter ended June 30, 2008 was $0.01 as compared to a basic and diluted net loss per share of ($0.05) for the same quarter ended June 30, 2007.
Revenues for the six-months ended June 30, 2008 were $12,009,078 as compared to $11,696,726 for the same period in 2007, an increase of $312,352. Net loss for the six-months ended June 30, 2008 was $116,507 as compared to a loss of $347,657 for the same period in 2007, an improvement of $231,150. The improvement again was due primarily to the gain recognized in the acquisition of the New Lincoln Lodge in the second quarter. Basic and diluted net loss per share for the six-months ended June 30, 2008 was ($0.03) as compared to a basic and diluted net loss per share of ($0.09) for the same six-month period ended June 30, 2007.
David A. Tenwick, Chairman of AdCare, stated that "the Company is continuing to absorb the increased costs of being a public company and being listed on the American Stock Exchange. So far this year, we have refinanced three of our assisted living properties and one of our nursing homes with long term HUD financings. In addition, we continue to look for suitable acquisitions as well as raising additional capital. We believe that being a listed company is helpful in looking for potential acquisitions and raising more capital."
The Chairman had two additional announcements to make. Mr. Tenwick stated, "On August 15, 2008, J. Michael Williams, AdCare’s Executive Vice President and COO, announced his retirement from AdCare." Mr Tenwick added, "We wish Mike well and Gary Wade, in addition to his duties as President, will take on all of Mike’s operating responsibilities." The second announcement from Mr. Tenwick is that at the special meeting of shareholders held on August 15, 2008, the shareholders approved the issuance of warrants to officers and directors of AdCare to purchase up to 1,092,305 shares of common stock of AdCare. As described in the definitive proxy filed with the SEC on July 24, 2008, the warrants will vest over a period of five years.
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 16 facilities that they manage, seven of which are assisted living facilities, six skilled nursing centers and three independent senior living communities. The Company has ownership interests in eight 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.