Exhibit 99.1
AdCare Health Systems Reports First Quarter 2014 Results
Operating Income Increases from Year-Ago Period and Sequentially;
Adjusted EBITDAR from Continuing Operations Increases 36% to $5.4 Million
ATLANTA, GA, May 7, 2014-AdCare Health Systems, Inc. (NYSE MKT: ADK), (NYSE MKT: ADK.PRA) a leading long-term care provider, reported results for the first quarter ended March 31, 2014.
Financial Highlights
Ÿ | Revenues were $54.9 million, up 0.5% compared to $54.7 million in the year-ago period. |
• | Adjusted EBITDAR from Continuing Operations was $5.4 million, up 35.7% compared to $4.0 million in the prior-year first quarter (see “Use of Non-GAAP Financial Information,” below for the definition of Adjusted EBITDAR from Continuing Operations and its reconciliation to GAAP Net Loss). |
• | Board of Directors declared a quarterly cash dividend payment of $0.68 per share on the Company's 10.875% Series A Preferred Stock which was paid on March 31, 2014 to holders of record at the close of business on March 21, 2014. |
Key Financial Metrics ($ in thousands)
Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | Q1 2014 | |||||||||||
Revenue | $ | 54,680 | $ | 54,859 | $ | 54,254 | $ | 54,517 | $ | 54,932 | |||||
% growth - sequential | 0.3 | % | (1.1 | )% | 0.5 | % | 0.8 | % | |||||||
% growth - y/y | 0.5 | % | |||||||||||||
Cost of Services | $ | 46,007 | $ | 45,851 | $ | 44,427 | $ | 44,577 | $ | 45,450 | |||||
% of patient care revenue | 84.9 | % | 84.3 | % | 82.7 | % | 82.6 | % | 83.5 | % | |||||
General and Administrative | $ | 4,928 | $ | 4,505 | $ | 4,583 | $ | 5,016 | $ | 4,560 | |||||
% of total revenue | 9.0 | % | 8.2 | % | 8.4 | % | 9.2 | % | 8.3 | % | |||||
Adjusted EBITDAR from | |||||||||||||||
Continuing Operations | $ | 4,005 | $ | 4,794 | $ | 5,430 | $ | 5,376 | $ | 5,435 | |||||
% of total revenue | 7.3 | % | 8.7 | % | 10.0 | % | 9.9 | % | 9.9 | % |
“We further leveraged our existing infrastructure during the quarter to make measured progress in lowering our cost of services year over year and significantly improving our operating margin,” said Boyd Gentry, AdCare’s president and chief executive officer. “Our strategy to optimize our base of operations to improve efficiency and drive incremental profitability is gaining traction, as evidenced by the 146 basis point reduction in cost of services, and the 71 basis point reduction in general and administrative expenses. The result of our operational improvements was a 35.7% increase in quarterly
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Adjusted EBITDAR from continuing operations year-over-year. We remain committed to growing our occupancy rates with the optimal mix of patients and made progress against this objective during the quarter with both metrics again trending upward.”
“In addition, the Company has initiated a plan for additional expense reductions, which we are deploying now that we have better financial controls and a more developed delivery model,” continued Mr. Gentry. “We are targeting more than $1 million in annualized operating expense reductions during 2014, which includes lowering our general and administrative expenses (excluding amortization of stock-based compensation) as a percent of revenue to under 7%, compared to the 7.4% reported in the first quarter. As we grow our revenue with enhanced patient mix, we believe we can further reduce our operating expenses as a percent of revenue.”
Q1 2014 Summary of Financial Results
Revenues in the first quarter of 2014 were $54.9 million, up 0.5% from $54.7 million in the prior year quarter.
The net loss attributable to AdCare common shareholders in the first quarter of 2014 totaled $3.0 million or $(0.18) per basic and diluted share, compared to a net loss of $2.9 million, or $(0.20) per basic and diluted share, in the same year-ago quarter. Several non-recurring and non-operational expenses impacted the net loss for both periods, including (i) in the first quarter of 2014, a loss on the extinguishment of debt of $0.6 million, and (ii) in the first quarter of 2013, a $2.1 million non-cash derivative gain and $1.1 million in non-recurring expense related to the audit committee’s investigation.
“Quarterly operating income increased significantly in the first quarter both on a year over year and sequential basis due to lower cost of services and lower corporate overhead,” commented Ron Fleming, AdCare’s chief financial officer. “Furthermore, adjusting for one-time, non-recurring expenses, the net loss decreased by more than 35% year over year, highlighting the improvements the management team has implemented.”
Quarterly Adjusted EBITDAR from continuing operations in the first quarter of 2014 totaled $5.4 million, representing a more than 35% increase compared to $4.0 million in the first quarter of 2013 (see “Use of Non-GAAP Financial Information,” below for the definition of Adjusted EBITDAR from continuing operations, a non-GAAP financial measure, as well as an important discussion about the use of this measure and its reconciliation to GAAP net loss, the most directly comparable GAAP financial measure).
Outlook
Management is reiterating its outlook for fiscal 2014. This guidance is based on current expectations, and is subject to change. Currently, management expects:
• | Revenue of $225 million to $250 million, representing 3% to 12% growth compared to fiscal 2013. This is inclusive of the impact of lower revenues due to the Company exiting non-core facilities which AdCare previously managed, facilities held for sale, and lease facilities that are expected to be exited before year end. |
• | Year-over-year improvement in gross profit, operating income, and EBITDAR in actual dollars and as a percent of sales. |
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Conference Call and Webcast
AdCare will hold a conference call to discuss its first quarter financial results on Thursday, May 8, 2014 at 10 a.m. Eastern time. Management will host the presentation, followed by a question and answer period.
• | Date and time: Thursday, May 8, 2014 at 10 a.m. ET |
• | Dial-in number: 1-877-941-8601 (domestic) or 1-480-629-9762 (international) |
• | Replay number: Dial 1-877-870-5176 (domestic) or 1-858-384-5517 (international). Please use passcode 4682152 to access the replay. The replay will be available until June 8, 2014. |
• | Webcast link: www.adcarehealth.com or http://public.viavid.com/index.php?id=109083 |
• | Slides: Management will provide slides to accompany the prepared comments. Slides will be available on the webcast, or can be downloaded in the investor relations section of AdCare’s website at www.adcarehealth.com. |
About the Derivative Liability
The derivative gain in the first quarter of 2013, which was a non-cash item, resulted from the Company’s subordinated convertible promissory notes issued in 2010 that included an anti-dilution provision referred to as a “ratchet” provision. The subordinated convertible promissory notes are convertible into shares of common stock of the Company at a conversion price of $3.73, which conversion price was previously subject to future reductions if the Company issued equity instruments at a lower price (the “ratchet” provision). Because there was no minimum conversion price, an indeterminate number of shares could have been issued. Accordingly, the Company determined an embedded derivative existed that was required to be bifurcated from the subordinated convertible promissory notes and accounted for separately as a derivative liability recorded at fair value. Pursuant to US GAAP, the Company estimated the fair value of the derivative liability using the Black-Scholes Merton option-pricing model with changes in fair value being reported in the condensed consolidated statement of operations.
In October 2013, these subordinated convertible promissory notes, which had an original maturity date of October 26, 2013, were extended to August 29, 2014 and the anti-dilution provision was eliminated. As a result, there will not be a derivative gain or loss recorded after the fourth quarter of 2013 with respect to these notes. At maturity, the Company will be required to redeem the notes for cash (unless they are earlier converted into common stock at the option of the holder). If the subordinated convertible promissory notes are converted to common stock, the debt will be extinguished, the current fair market value of the common stock will be reflected as common stock and additional paid-in capital, and there may be a resulting gain or loss on the debt extinguishment.
About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA) is a recognized provider of senior living and health care facility management. AdCare 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 through its operating subsidiaries, including a broad range of skilled nursing and sub-acute care services. For more information about AdCare, visit www.adcarehealth.com.
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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: (i) statements regarding drivers of operational growth; (ii) statements regarding expense reductions and expense run-rate; (iii) statements regarding improvements in the admissions process; (iv) statements regarding financial and operational improvements; (v) statements regarding the outlook for revenue and other financial metrics; and (vi) statements regarding the Company’s current plans to issue equity instruments. 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, AdCare’s ability to refinance its current debt on more favorable terms, AdCare’s ability to expand its borrowing arrangement with certain existing lenders, AdCare’s ability to raise equity capital, AdCare’s ability to improve operating results, 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 is 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, each facility mentioned in this press release is 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 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 or gain and other non-routine adjustments; 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 or gain, rent and other non-routine adjustments.
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. Adjusted
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EBITDA from continuing operations and Adjusted EBITDAR from continuing operations are 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 or gain, and certain acquisition related charges and other non-routine adjustments.
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:
Ÿ | 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; |
Ÿ | 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 |
Ÿ | They provide data that assists management 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.
Company Contacts Investor Relations
Boyd Gentry, CEO Brett Maas, Managing Partner
AdCare Health Systems, Inc. Hayden IR
Tel (678) 869-5116 Tel (646) 536-7331
info@adcarehealth.com brett@haydenir.com
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ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in 000’s, except per share data)
(Unaudited)
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Revenues: | |||||||
Patient care revenues | $ | 54,450 | $ | 54,170 | |||
Management revenues | 482 | 510 | |||||
Total revenues | 54,932 | 54,680 | |||||
Expenses: | |||||||
Cost of services (exclusive of facility rent, depreciation and amortization) | 45,450 | 46,007 | |||||
General and administrative expenses | 4,560 | 4,928 | |||||
Audit committee investigation expense | — | 1,134 | |||||
Facility rent expense | 1,759 | 1,737 | |||||
Depreciation and amortization | 1,857 | 1,720 | |||||
Total expenses | 53,626 | 55,526 | |||||
Income (loss) from Operations | 1,306 | (846 | ) | ||||
Other Income (Expense): | |||||||
Interest expense, net | (2,622 | ) | (3,169 | ) | |||
Acquisition costs, net of gains | — | (91 | ) | ||||
Derivative gain | — | 2,136 | |||||
Loss on extinguishment of debt | (583 | ) | (2 | ) | |||
Other expense | (108 | ) | — | ||||
Total other expense, net | (3,313 | ) | (1,126 | ) | |||
Loss from Continuing Operations Before Income Taxes | (2,007 | ) | (1,972 | ) | |||
Income tax expense | (8 | ) | (78 | ) | |||
Loss from Continuing Operations | (2,015 | ) | (2,050 | ) | |||
Loss from Discontinued Operations, Net of Tax | (508 | ) | (700 | ) | |||
Net Loss | (2,523 | ) | (2,750 | ) | |||
Net Loss Attributable to Noncontrolling Interests | 173 | 192 | |||||
Net Loss Attributable to AdCare Health Systems, Inc. | (2,350 | ) | (2,558 | ) | |||
Preferred stock dividend | (646 | ) | (306 | ) | |||
Net Loss Attributable to AdCare Health Systems, Inc. Common Stockholders | $ | (2,996 | ) | $ | (2,864 | ) | |
Net (loss) income per Common Share attributable to AdCare Health Systems, Inc. | |||||||
Common Stockholders - | |||||||
Basic: | |||||||
Continuing Operations | $ | (0.15 | ) | $ | (0.15 | ) | |
Discontinued Operations | (0.03 | ) | (0.05 | ) | |||
$ | (0.18 | ) | $ | (0.20 | ) | ||
Diluted: | |||||||
Continuing Operations | $ | (0.15 | ) | $ | (0.15 | ) | |
Discontinued Operations | (0.03 | ) | (0.05 | ) | |||
$ | (0.18 | ) | $ | (0.20 | ) | ||
Weighted Average Common Shares Outstanding: | |||||||
Basic | 16,916 | 14,683 | |||||
Diluted | 16,916 | 14,683 |
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ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in 000’s)
March 31, 2014 | December 31, 2013 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 16,741 | $ | 19,374 | |||
Restricted cash and investments | 315 | 3,801 | |||||
Accounts receivable, net of allowance of $5,358 and $4,989 | 24,543 | 23,598 | |||||
Prepaid expenses and other | 4,091 | 483 | |||||
Assets of disposal group held for use | — | 5,135 | |||||
Assets of disposal group held for sale | 6,604 | 400 | |||||
Assets of variable interest entity held for sale | 5,935 | 5,945 | |||||
Total current assets | 58,229 | 58,736 | |||||
Restricted cash and investments | 6,966 | 11,606 | |||||
Property and equipment, net | 138,170 | 138,233 | |||||
Intangible assets - bed licenses | 2,471 | 2,471 | |||||
Intangible assets - lease rights, net | 4,678 | 4,889 | |||||
Goodwill | 4,224 | 4,224 | |||||
Lease deposits | 1,697 | 1,715 | |||||
Deferred loan costs, net | 4,516 | 4,542 | |||||
Other assets | 12 | 12 | |||||
Total assets | $ | 220,963 | $ | 226,428 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Current portion of notes payable and other debt | $ | 32,238 | $ | 12,027 | |||
Current portion of convertible debt, net of discounts | 4,000 | 11,389 | |||||
Revolving credit facilities and lines of credit | 2,306 | 2,738 | |||||
Accounts payable | 21,187 | 23,783 | |||||
Accrued expenses | 13,251 | 13,264 | |||||
Liabilities of disposal group held for sale | 5,226 | — | |||||
Liabilities of variable interest entity held for sale | 6,036 | 6,034 | |||||
Total current liabilities | 84,244 | 69,235 | |||||
Notes payable and other debt, net of current portion: | |||||||
Senior debt, net of discounts | 77,991 | 107,858 | |||||
Bonds, net of discounts | 7,000 | 6,996 | |||||
Convertible debt | 14,000 | 7,500 | |||||
Revolving credit facilities | 5,308 | 5,765 | |||||
Other liabilities | 1,651 | 1,589 | |||||
Deferred tax liability | 191 | 191 | |||||
Total liabilities | 190,385 | 199,134 | |||||
Commitments and contingency | |||||||
Preferred stock, no par value; 5,000 shares authorized; 950 shares issued and outstanding, redemption amount $23,750 at both March 31, 2014 and December 31, 2013 | 20,442 | 20,442 | |||||
Stockholders’ equity: | |||||||
Common stock and additional paid-in capital, no par value; 55,000 shares authorized; 17,505 and 16,016 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 54,823 | 48,370 | |||||
Accumulated deficit | (42,880 | ) | (39,884 | ) | |||
Total stockholders’ equity | 11,943 | 8,486 | |||||
Noncontrolling interest in subsidiary | (1,807 | ) | (1,634 | ) | |||
Total equity | 10,136 | 6,852 | |||||
Total liabilities and equity | $ | 220,963 | $ | 226,428 |
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ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
TRAILING FIVE QUARTERS
(Amounts in 000’s)
(Unaudited)
For Three Months Ended | ||||||||||||||||||||
3/31/2013 | 6/30/2013 | 9/30/2013 | 12/31/2013 | 3/31/2014 | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Patient care revenues | $ | 54,170 | $ | 54,361 | $ | 53,734 | $ | 53,949 | $ | 54,450 | ||||||||||
Management revenues | 510 | 498 | 521 | 568 | 482 | |||||||||||||||
Total revenues | 54,680 | 54,859 | 54,254 | 54,517 | 54,932 | |||||||||||||||
Expenses: | ||||||||||||||||||||
Cost of services (exclusive of facility rent, depreciation and amortization) | 46,007 | 45,851 | 44,427 | 44,577 | 45,450 | |||||||||||||||
General and administrative expense | 4,928 | 4,505 | 4,583 | 5,016 | 4,560 | |||||||||||||||
Audit committee investigation expense | 1,134 | 848 | 302 | 102 | — | |||||||||||||||
Facility rent expense | 1,737 | 1,758 | 1,761 | 1,772 | 1,759 | |||||||||||||||
Depreciation and amortization | 1,721 | 1,779 | 1,796 | 2,465 | 1,856 | |||||||||||||||
Salary retirement and continuation costs | — | 149 | 5 | — | — | |||||||||||||||
Total expenses | 55,528 | 54,889 | 52,874 | 53,930 | 53,626 | |||||||||||||||
Income (Loss) from Operations | (848 | ) | (30 | ) | 1,380 | 586 | 1,306 | |||||||||||||
Other Income (Expense): | ||||||||||||||||||||
Interest expense, net | (3,169 | ) | (3,087 | ) | (3,204 | ) | (2,891 | ) | (2,622 | ) | ||||||||||
Acquisition costs, net of gains | (91 | ) | (486 | ) | (33 | ) | 45 | — | ||||||||||||
Derivative (loss) gain | 2,136 | (1,947 | ) | 1,989 | 829 | — | ||||||||||||||
Loss on extinguishment of debt | (2 | ) | (25 | ) | (6 | ) | (77 | ) | (583 | ) | ||||||||||
Loss on disposal of assets | — | (4 | ) | (6 | ) | — | — | |||||||||||||
Other income (expense) | — | — | 15 | (321 | ) | (108 | ) | |||||||||||||
Total other expense, net | (1,125 | ) | (5,550 | ) | (1,244 | ) | (2,415 | ) | (3,313 | ) | ||||||||||
Loss from Continuing Operations Before Income Taxes | (1,972 | ) | (5,580 | ) | 136 | (1,829 | ) | (2,007 | ) | |||||||||||
Income tax (expense) benefit | (78 | ) | — | 54 | (118 | ) | (8 | ) | ||||||||||||
Loss from Continuing Operations | (2,050 | ) | (5,580 | ) | 190 | (1,947 | ) | (2,015 | ) | |||||||||||
Income (Loss) Income from Discontinued Operations, Net of Tax | (700 | ) | (1,365 | ) | (603 | ) | (1,308 | ) | (508 | ) | ||||||||||
Net Loss | (2,750 | ) | (6,945 | ) | (413 | ) | (3,255 | ) | (2,523 | ) | ||||||||||
Net Loss Attributable to Noncontrolling Interest | 192 | 241 | 195 | 168 | 173 | |||||||||||||||
Net Loss Attributable to AdCare Health Systems, Inc. | (2,557 | ) | (6,704 | ) | (218 | ) | (3,087 | ) | (2,350 | ) | ||||||||||
Preferred stock dividend | (306 | ) | (306 | ) | (306 | ) | (646 | ) | (646 | ) | ||||||||||
Net Loss Attributable to AdCare Health Systems, Inc. Common Stockholders | $ | (2,863 | ) | $ | (7,010 | ) | $ | (524 | ) | $ | (3,733 | ) | $ | (2,996 | ) |
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ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA FROM CONTINUING OPERATIONS AND
ADJUSTED EBITDAR FROM CONTINUING OPERATIONS
(Amounts in 000’s)
(Unaudited)
For Three Months Ended | ||||||||||||||||||||
3/31/2013 | 6/30/2013 | 9/30/2013 | 12/31/2013 | 3/31/2014 | ||||||||||||||||
Net loss | $ | (2,750 | ) | $ | (6,945 | ) | $ | (413 | ) | $ | (3,255 | ) | $ | (2,523 | ) | |||||
Impact of discontinued operations | 700 | 1,365 | 603 | 1,308 | 508 | |||||||||||||||
Net loss from continuing operations | (2,050 | ) | (5,580 | ) | 190 | (1,947 | ) | (2,015 | ) | |||||||||||
Interest expense, net | 3,169 | 3,087 | 3,204 | 2,891 | 2,622 | |||||||||||||||
Income tax expense (benefit) | 78 | — | (54 | ) | 118 | 8 | ||||||||||||||
Amortization of stock based compensation | 260 | 291 | 186 | 360 | 513 | |||||||||||||||
Depreciation and amortization | 1,721 | 1,779 | 1,796 | 2,465 | 1,857 | |||||||||||||||
Acquisition costs, net of gain | 91 | 486 | 33 | (45 | ) | — | ||||||||||||||
Derivative (gain) loss | (2,136 | ) | 1,947 | (1,989 | ) | (829 | ) | — | ||||||||||||
(Gain) loss on extinguishment of debt | 2 | 25 | 6 | 77 | 583 | |||||||||||||||
Loss on disposal of assets | — | 4 | 6 | — | — | |||||||||||||||
Audit committee investigation expense | 1,134 | 848 | 302 | 102 | — | |||||||||||||||
Reincorporation - Georgia | — | — | — | 91 | — | |||||||||||||||
Other expense (income) | — | — | (15 | ) | 321 | 108 | ||||||||||||||
Salary retirement and continuation costs | — | 149 | 5 | — | — | |||||||||||||||
Adjusted EBITDA from continuing operations | 2,268 | 3,036 | 3,668 | 3,605 | 3,676 | |||||||||||||||
Facility rent expense | 1,737 | 1,758 | 1,761 | 1,772 | 1,759 | |||||||||||||||
Adjusted EBITDAR from continuing operations | $ | 4,005 | $ | 4,794 | $ | 5,430 | $ | 5,376 | $ | 5,435 |
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ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
SUPPLEMENTARY SCHEDULES
(Unaudited)
2013 | 2014 | ||||||||||||||||||
End of Period Data | Q1 | Q2 | Q3 | Q4 | 12 Mo. YTD | Q1 | |||||||||||||
Number of Facilities | |||||||||||||||||||
SNF | |||||||||||||||||||
Owned | 23 | 23 | 23 | 23 | 23 | 23 | |||||||||||||
Leased | 9 | 9 | 9 | 9 | 9 | 9 | |||||||||||||
Managed | 10 | 10 | 10 | 10 | 10 | 3 | |||||||||||||
ALF | |||||||||||||||||||
Owned | 2 | 2 | 2 | 2 | 2 | 2 | |||||||||||||
IL | |||||||||||||||||||
Managed | 1 | 1 | 1 | 1 | 1 | 1 | |||||||||||||
Total | 45 | 45 | 45 | 45 | 45 | 38 | |||||||||||||
Number of Operational Beds | |||||||||||||||||||
SNF | |||||||||||||||||||
Owned | 2,458 | 2,458 | 2,458 | 2,458 | 2,458 | 2,458 | |||||||||||||
Leased | 1,090 | 1,090 | 1,090 | 1,090 | 1,090 | 1,090 | |||||||||||||
Managed | 813 | 813 | 813 | 813 | 813 | 510 | |||||||||||||
ALF | |||||||||||||||||||
Owned | 112 | 112 | 112 | 112 | 112 | 112 | |||||||||||||
IL | |||||||||||||||||||
Managed | 83 | 83 | 83 | 83 | 83 | 83 | |||||||||||||
Total at Period End | 4,556 | 4,556 | 4,556 | 4,556 | 4,556 | 4,253 | |||||||||||||
Total Weighted Average (d) | 3,660 | 3,660 | 3,660 | 3,660 | 3,660 | 3,660 | |||||||||||||
SNF + ALF % Owned | 70.2 | % | 70.2 | % | 70.2 | % | 70.2 | % | 70.2 | % | 70.2 | % | |||||||
SNF + ALF % Leased | 29.8 | % | 29.8 | % | 29.8 | % | 29.8 | % | 29.8 | % | 29.8 | % | |||||||
Revenue Mix % (b) | |||||||||||||||||||
Skilled (c) | 32.8 | % | 31.9 | % | 29.3 | % | 29.1 | % | 30.8 | % | 31.8 | % | |||||||
Medicaid | 51.9 | % | 53.0 | % | 53.5 | % | 53.1 | % | 52.9 | % | 52.2 | % | |||||||
Private + Other | 15.3 | % | 15.2 | % | 17.2 | % | 17.8 | % | 16.3 | % | 16.0 | % | |||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||
Patient Days (b) | |||||||||||||||||||
Skilled (c) | 40,263 | 39,716 | 35,406 | 35,005 | 150,390 | 38,147 | |||||||||||||
Medicaid | 174,003 | 179,659 | 182,886 | 179,693 | 716,241 | 177,323 | |||||||||||||
Private + Other | 40,073 | 39,507 | 42,381 | 46,152 | 168,113 | 40,852 | |||||||||||||
Total | 254,339 | 258,882 | 260,673 | 260,850 | 1,034,744 | 256,322 | |||||||||||||
Patient Day Mix % (a) | |||||||||||||||||||
Skilled (c) | 16.4 | % | 15.9 | % | 14.1 | % | 13.9 | % | 15.0 | % | 15.4 | % | |||||||
Medicaid | 70.2 | % | 71.1 | % | 71.8 | % | 70.8 | % | 71.0 | % | 71.0 | % | |||||||
Private + Other | 13.5 | % | 13.0 | % | 14.1 | % | 15.3 | % | 14.0 | % | 13.6 | % | |||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||
Revenue Rates Per Patient Day (a) | |||||||||||||||||||
Skilled (c) | $ | 441.07 | $ | 436.10 | $ | 444.21 | $ | 448.93 | $ | 442.33 | $ | 453.82 | |||||||
Medicaid | $ | 162.30 | $ | 160.96 | $ | 157.97 | $ | 160.00 | $ | 160.28 | $ | 161.12 | |||||||
Private + Other | $ | 177.30 | $ | 176.11 | $ | 176.89 | $ | 177.66 | $ | 177.02 | $ | 181.17 | |||||||
Weighted Average Total | $ | 217.57 | $ | 214.58 | $ | 210.46 | $ | 211.55 | $ | 213.51 | $ | 217.45 | |||||||
Average Daily Census (b) | |||||||||||||||||||
Skilled (c) | 447 | 436 | 385 | 380 | 412 | 424 | |||||||||||||
Medicaid | 1,933 | 1,971 | 1,988 | 1,953 | 1,962 | 1,970 | |||||||||||||
Private + Other | 445 | 437 | 461 | 502 | 461 | 454 | |||||||||||||
Total Average Daily Census | 2,826 | 2,845 | 2,833 | 2,835 | 2,835 | 2,848 | |||||||||||||
Occupancy (b) | 77.2 | % | 77.7 | % | 77.4 | % | 77.5 | % | 77.5 | % | 77.8 | % | |||||||
(in '000) | |||||||||||||||||||
Total Revenue (b) | $ | 54,680 | $ | 54,859 | $ | 54,254 | $ | 54,517 | $ | 218,310 | $ | 54,932 | |||||||
Adjusted EBITDAR (b) | $ | 4,005 | $ | 4,794 | $ | 5,430 | $ | 5,376 | $ | 19,605 | $ | 5,435 | |||||||
Adjusted EBITDA (b) | $ | 2,268 | $ | 3,036 | $ | 3,668 | $ | 3,605 | $ | 12,577 | $ | 3,676 | |||||||
(a) Skilled nursing only - excludes managed facilities | |||||||||||||||||||
(b) AdCare consolidated excluding discontinued operations | |||||||||||||||||||
(c) Skilled is defined as Medicare A + Managed Care RUGS | |||||||||||||||||||
(d) Consists of weighted average beds of SNF + ALF owned and leased facilities |
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