Exhibit 99.1
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
As previously reported
------------------------------------
March 31,June 30, Sept. 30,Dec. 31,
2004 2004 2004 2004
--------- -------- -------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 14,888 $ 18,925 $ 35,487 $ 28,454
Restricted cash 22,198 24,033 25,955 25,270
Accounts receivable, net of allowance for doubtful accounts 15,956 15,553 15,520 16,175
Inventory 1,283 1,274 1,269 1,364
Prepaid expenses 4,959 3,524 3,682 2,667
Deferred income taxes 2,936 2,936 1,981 1,752
Assets held-for-sale 4,512 1,512 670 321
Other current assets 6,827 10,600 10,717 8,169
--------- -------- -------- --------
Total current assets 73,559 78,357 95,281 84,172
Restricted cash, excluding amounts classified as current 22,377 23,366 23,412 24,864
Land, buildings and equipment, net 533,219 532,765 512,854 496,297
Notes receivable 18,834 18,745 18,656 18,563
Goodwill 36,463 36,463 36,463 36,463
Leasehold acquisition costs, net of accumulated amortization 31,715 30,812 30,097 29,362
Other assets 49,884 46,090 52,815 56,270
--------- -------- -------- --------
Total assets $766,051 $766,598 $769,578 $745,991
========= ======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 7,793 $ 11,200 $ 10,181 $ 10,372
Current portion of capital lease and lease financing obligations 5,643 5,842 16,595 16,474
Debt associated with assets held for sale 2,300 - - -
Accounts payable 4,669 4,679 3,596 5,937
Accrued interest 3,029 3,033 956 988
Accrued payroll and benefits 9,970 10,616 12,294 10,125
Accrued property taxes 6,142 8,404 11,042 8,872
Other accrued expenses 7,194 8,042 7,664 8,035
Other current liabilities 10,951 9,109 13,913 8,505
Tenant deposits - - - -
Refundable portion of entrance fees - - - -
Deferred entrance fee income - - - -
--------- -------- -------- --------
Total current liabilities 57,691 60,925 76,241 69,308
Long-term debt, less current portion 251,848 246,906 126,502 125,584
Capital lease and lease financing obligations, less current portion 94,386 93,018 199,208 182,652
Refundable portion of entrance fees 75,871 78,330 79,598 79,148
Deferred entrance fee income 139,559 141,946 144,818 145,186
Tenant deposits 4,673 4,685 4,485 4,804
Deferred gains on sale-leaseback transactions 90,050 87,703 101,395 98,876
Deferred income taxes 5,360 5,360 2,597 2,134
Other long-term liabilities 19,577 21,056 21,149 20,731
--------- -------- -------- --------
Total liabilities 739,015 739,929 755,993 728,423
Minority interest 21,779 21,658 13,976 14,213
Shareholders' equity:
Preferred stock, no par value; 5,000,000 shares authorized, no
shares issued or outstanding - - - -
Common stock, $.01 par value; 200,000,000 shares authorized 236 246 249 252
Additional paid-in capital 160,107 162,397 166,373 168,092
Accumulated deficit (155,086)(157,632)(164,577)(162,771)
Deferred Compensation - - (2,436) (2,218)
--------- -------- -------- --------
Total shareholders' equity 5,257 5,011 (391) 3,355
--------- -------- -------- --------
Total liabilities and shareholders' equity $766,051 $766,598 $769,578 $745,991
========= ======== ======== ========
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
Adjustments and reclassifications
------------------------------------
March 31,June 30, Sept. 30,Dec. 31,
2004 2004 2004 2004
-------- -------- -------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ - $ - $ - $ -
Restricted cash - - - -
Accounts receivable, net of allowance for doubtful accounts - - - -
Inventory - - - -
Prepaid expenses - - - -
Deferred income taxes 2,772 2,772 2,772 3,893
Assets held-for-sale - - - -
Other current assets - - - -
-------- -------- -------- ---------
Total current assets 2,772 2,772 2,772 3,893
Restricted cash, excluding amounts classified as current - - - -
Land, buildings and equipment, net - - - -
Notes receivable - - - -
Goodwill - - - -
Leasehold acquisition costs, net of accumulated amortization - - - -
Other assets (565) (588) (610) (634)
-------- -------- -------- ---------
Total assets $ 2,207 $ 2,184 $ 2,162 $ 3,259
======== ======== ======== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ - $ - $ - $ -
Current portion of capital lease and lease financing obligations - - - -
Debt associated with assets held for sale - - - -
Accounts payable - - - -
Accrued interest - - - -
Accrued payroll and benefits - - - -
Accrued property taxes - - - -
Other accrued expenses - - - -
Other current liabilities - - - -
Tenant deposits 4,673 4,685 4,485 4,804
Refundable portion of entrance fees 75,871 78,330 79,598 79,148
Deferred entrance fee income 29,871 31,644 34,182 33,800
-------- -------- -------- ---------
Total current liabilities 110,415 114,659 118,265 117,752
Long-term debt, less current portion - - - -
Capital lease and lease financing obligations, less current portion - - - -
Refundable portion of entrance fees (75,871) (78,330) (79,598) (79,148)
Deferred entrance fee income (29,871) (31,644) (34,182) (33,800)
Tenant deposits (4,673) (4,685) (4,485) (4,804)
Deferred gains on sale-leaseback transactions - - - -
Deferred income taxes 2,772 2,772 2,772 3,893
Other long-term liabilities (2,036) (2,345) (2,649) (2,980)
-------- -------- -------- ---------
Total liabilities 736 427 123 913
Minority interest - - - -
Shareholders' equity:
Preferred stock, no par value; 5,000,000 shares authorized, no
shares issued or outstanding - - - -
Common stock, $.01 par value; 200,000,000 shares authorized - - - -
Additional paid-in capital - - - -
Accumulated deficit 1,471 1,757 2,039 2,346
Deferred Compensation - - - -
-------- -------- -------- ---------
Total shareholders' equity 1,471 1,757 2,039 2,346
-------- -------- -------- ---------
Total liabilities and shareholders' equity $ 2,207 $ 2,184 $ 2,162 $ 3,259
======== ======== ======== =========
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
As restated
------------------------------------
March 31,June 30, Sept. 30,Dec. 31,
2004 2004 2004 2004
--------- ------- -------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 14,888 $ 18,925 $ 35,487 $ 28,454
Restricted cash 22,198 24,033 25,955 25,270
Accounts receivable, net of allowance for doubtful accounts 15,956 15,553 15,520 16,175
Inventory 1,283 1,274 1,269 1,364
Prepaid expenses 4,959 3,524 3,682 2,667
Deferred income taxes 5,708 5,708 4,753 5,645
Assets held-for-sale 4,512 1,512 670 321
Other current assets 6,827 10,600 10,717 8,169
--------- ------- -------- ---------
Total current assets 76,331 81,129 98,053 88,065
Restricted cash, excluding amounts classified as current 22,377 23,366 23,412 24,864
Land, buildings and equipment, net 533,219 532,765 512,854 496,297
Notes receivable 18,834 18,745 18,656 18,563
Goodwill 36,463 36,463 36,463 36,463
Leasehold acquisition costs, net of accumulated amortization 31,715 30,812 30,097 29,362
Other assets 49,319 45,502 52,205 55,636
--------- ------- -------- ---------
Total assets $768,258 $768,782 $771,740 $749,250
========= ======= ======== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 7,793 $ 11,200 $ 10,181 $ 10,372
Current portion of capital lease and lease financing obligations 5,643 5,842 16,595 16,474
Debt associated with assets held for sale 2,300 - - -
Accounts payable 4,669 4,679 3,596 5,937
Accrued interest 3,029 3,033 956 988
Accrued payroll and benefits 9,970 10,616 12,294 10,125
Accrued property taxes 6,142 8,404 11,042 8,872
Other accrued expenses 7,194 8,042 7,664 8,035
Other current liabilities 10,951 9,109 13,913 8,505
Tenant deposits 4,673 4,685 4,485 4,804
Refundable portion of entrance fees 75,871 78,330 79,598 79,148
Deferred entrance fee income 29,871 31,644 34,182 33,800
--------- ------- -------- ---------
Total current liabilities 168,106 175,584 194,506 187,060
Long-term debt, less current portion 251,848 246,906 126,502 125,584
Capital lease and lease financing obligations, less current portion 94,386 93,018 199,208 182,652
Refundable portion of entrance fees - - - -
Deferred entrance fee income 109,688 110,302 110,636 111,386
Tenant deposits - - - -
Deferred gains on sale-leaseback transactions 90,050 87,703 101,395 98,876
Deferred income taxes 8,132 8,132 5,369 6,027
Other long-term liabilities 17,541 18,711 18,500 17,751
--------- ------- -------- ---------
Total liabilities 739,751 740,356 756,116 729,336
Minority interest 21,779 21,658 13,976 14,213
Shareholders' equity:
Preferred stock, no par value; 5,000,000 shares authorized, no
shares issued or outstanding - - - -
Common stock, $.01 par value; 200,000,000 shares authorized 236 246 249 252
Additional paid-in capital 160,107 162,397 166,373 168,092
Accumulated deficit (153,615)(155,875)(162,538)(160,425)
Deferred Compensation - - (2,436) (2,218)
--------- ------- -------- ---------
Total shareholders' equity 6,728 6,768 1,648 5,701
--------- ------- -------- ---------
Total liabilities and shareholders' equity $768,258 $768,782 $771,740 $749,250
========= ======= ======== =========
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
As previously reported
-----------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2003 2003 2003 2003
---------- --------- --------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 17,391 $ 13,242 $ 18,134 $ 17,192
Restricted cash 20,858 21,847 20,433 20,947
Accounts receivable, net of allowance for doubtful accounts 15,238 14,155 15,485 14,902
Inventory 1,377 1,367 1,355 1,308
Prepaid expenses 4,163 2,903 4,315 3,900
Deferred income taxes 3,028 3,028 3,028 2,936
Assets held-for-sale 24,248 11,083 11,055 6,426
Other current assets 5,193 5,115 4,075 10,989
---------- --------- --------- ----------
Total current assets 91,496 72,740 77,880 78,600
Restricted cash, excluding amounts classified as current 21,680 21,492 22,241 22,654
Land, buildings and equipment, net 634,863 630,770 535,183 533,145
Notes receivable 19,121 21,560 21,473 18,925
Goodwill 36,463 36,463 36,463 36,463
Leasehold acquisition costs, net of accumulated amortization 22,343 21,810 34,100 33,207
Other assets 61,618 60,035 51,602 51,289
---------- --------- --------- ----------
Total assets $887,584 $864,870 $778,942 $774,283
========== ========= ========= ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 23,828 $ 19,635 $ 15,765 $ 16,215
Debt associated with assets held for sale 11,910 - 7,000 7,000
Accounts payable 7,199 6,969 7,608 4,800
Accrued interest 5,446 4,823 2,098 3,330
Accrued payroll and benefits 7,561 7,953 9,124 10,536
Accrued property taxes 6,413 8,103 10,549 10,742
Other accrued expenses 9,234 8,411 7,762 8,234
Other current liabilities 13,720 12,916 15,328 9,140
Tenant deposits - - - -
Refundable portion of entrance fees - - - -
Deferred entrance fee income - - - -
---------- --------- --------- ----------
Total current liabilities 85,311 68,810 75,234 69,997
Long-term debt, less current portion 507,811 509,510 336,481 337,464
Convertible debentures 15,956 12,880 12,821 10,856
Refundable portion of entrance fees 69,924 72,160 72,819 72,980
Deferred entrance fee income 132,773 133,148 136,162 139,813
Tenant deposits 4,964 4,818 4,738 4,751
Deferred gains on sale-leaseback transactions 26,764 25,940 95,073 92,596
Deferred income taxes 3,806 3,993 3,806 5,360
Other long-term liabilities 12,326 12,475 14,405 17,774
---------- --------- --------- ----------
Total liabilities 859,635 843,734 751,539 751,591
Minority interest 26,012 25,607 21,888 21,885
Shareholders' equity:
Preferred stock, no par value; 5,000,000 shares authorized, no
shares issued or outstanding - - - -
Common stock, $.01 par value; 200,000,000 shares authorized 173 187 188 197
Additional paid-in capital 145,706 148,768 148,873 150,896
Accumulated deficit (143,942) (153,426) (143,546) (150,286)
---------- --------- --------- ----------
Total shareholders' equity 1,937 (4,471) 5,515 807
---------- --------- --------- ----------
Total liabilities and shareholders' equity $ 887,584 $ 864,870 $778,942 $ 774,283
========== ========= ========= ==========
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
Adjustments and reclassifications
-----------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2003 2003 2003 2003
---------- --------- --------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ - $ - $ - $ -
Restricted cash - - - -
Accounts receivable, net of allowance for doubtful accounts - - - -
Inventory - - - -
Prepaid expenses - - - -
Deferred income taxes 4,019 4,019 4,019 2,772
Assets held-for-sale - - - -
Other current assets - - - -
---------- --------- --------- ----------
Total current assets 4,019 4,019 4,019 2,772
Restricted cash, excluding amounts classified as current - - - -
Land, buildings and equipment, net - - - -
Notes receivable - - - -
Goodwill - - - -
Leasehold acquisition costs, net of accumulated amortization - - - -
Other assets (476) (498) (520) (542)
---------- --------- --------- ----------
Total assets $ 3,543 $ 3,521 $ 3,499 $ 2,230
========== ========= ========= ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ - $ - $ - $ -
Debt associated with assets held for sale - - - -
Accounts payable - - - -
Accrued interest - - - -
Accrued payroll and benefits - - - -
Accrued property taxes - - - -
Other accrued expenses - - - -
Other current liabilities - - - -
Tenant deposits 4,964 4,818 4,738 4,751
Refundable portion of entrance fees 69,924 72,160 72,819 72,980
Deferred entrance fee income 27,875 29,356 30,208 30,004
---------- --------- --------- ----------
Total current liabilities 102,763 106,334 107,765 107,735
Long-term debt, less current portion - - - -
Convertible debentures - - - -
Refundable portion of entrance fees (69,924) (72,160) (72,819) (72,980)
Deferred entrance fee income (27,875) (29,356) (30,208) (30,004)
Tenant deposits (4,964) (4,818) (4,738) (4,751)
Deferred gains on sale-leaseback transactions - - - -
Deferred income taxes 4,019 4,019 4,019 2,772
Other long-term liabilities (673) (839) (1,449) (1,720)
---------- --------- --------- ----------
Total liabilities 3,346 3,180 2,570 1,052
Minority interest - - - -
Shareholders' equity:
Preferred stock, no par value; 5,000,000 shares authorized, no
shares issued or outstanding - - - -
Common stock, $.01 par value; 200,000,000 shares authorized - - - -
Additional paid-in capital - - - -
Accumulated deficit 197 341 929 1,178
---------- --------- --------- ----------
Total shareholders' equity 197 341 929 1,178
---------- --------- --------- ----------
Total liabilities and shareholders' equity $ 3,543 $ 3,521 $ 3,499 $ 2,230
========== ========= ========= ==========
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
As restated
-----------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2003 2003 2003 2003
--------- ---------- --------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 17,391 $ 13,242 $ 18,134 $ 17,192
Restricted cash 20,858 21,847 20,433 20,947
Accounts receivable, net of allowance for doubtful accounts 15,238 14,155 15,485 14,902
Inventory 1,377 1,367 1,355 1,308
Prepaid expenses 4,163 2,903 4,315 3,900
Deferred income taxes 7,047 7,047 7,047 5,708
Assets held-for-sale 24,248 11,083 11,055 6,426
Other current assets 5,193 5,115 4,075 10,989
--------- ---------- --------- ----------
Total current assets 95,515 76,759 81,899 81,372
Restricted cash, excluding amounts classified as current 21,680 21,492 22,241 22,654
Land, buildings and equipment, net 634,863 630,770 535,183 533,145
Notes receivable 19,121 21,560 21,473 18,925
Goodwill 36,463 36,463 36,463 36,463
Leasehold acquisition costs, net of accumulated amortization 22,343 21,810 34,100 33,207
Other assets 61,142 59,537 51,082 50,747
--------- ---------- --------- ----------
Total assets $ 891,127 $ 868,391 $ 782,441 $ 776,513
========= ========== ========= ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 23,828 $ 19,635 $ 15,765 $ 16,215
Debt associated with assets held for sale 11,910 - 7,000 7,000
Accounts payable 7,199 6,969 7,608 4,800
Accrued interest 5,446 4,823 2,098 3,330
Accrued payroll and benefits 7,561 7,953 9,124 10,536
Accrued property taxes 6,413 8,103 10,549 10,742
Other accrued expenses 9,234 8,411 7,762 8,234
Other current liabilities 13,720 12,916 15,328 9,140
Tenant deposits 4,964 4,818 4,738 4,751
Refundable portion of entrance fees 69,924 72,160 72,819 72,980
Deferred entrance fee income 27,875 29,356 30,208 30,004
--------- ---------- --------- ----------
Total current liabilities 188,074 175,144 182,999 177,732
Long-term debt, less current portion 507,811 509,510 336,481 337,464
Convertible debentures 15,956 12,880 12,821 10,856
Refundable portion of entrance fees - - - -
Deferred entrance fee income 104,898 103,792 105,954 109,809
Tenant deposits - - - -
Deferred gains on sale-leaseback transactions 26,764 25,940 95,073 92,596
Deferred income taxes 7,825 8,012 7,825 8,132
Other long-term liabilities 11,653 11,636 12,956 16,054
--------- ---------- --------- ----------
Total liabilities 862,981 846,914 754,109 752,643
Minority interest 26,012 25,607 21,888 21,885
Shareholders' equity:
Preferred stock, no par value; 5,000,000 shares authorized, no
shares issued or outstanding - - - -
Common stock, $.01 par value; 200,000,000 shares authorized 173 187 188 197
Additional paid-in capital 145,706 148,768 148,873 150,896
Accumulated deficit (143,745) (153,085) (142,617) (149,108)
--------- ---------- --------- ----------
Total shareholders' equity 2,134 (4,130) 6,444 1,985
--------- ---------- --------- ----------
Total liabilities and shareholders' equity $ 891,127 $ 868,391 $ 782,441 $ 776,513
========= ========== ========= ==========
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
As previously reported
----------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2004 2004 2004 2004
--------- --------- ---------- ---------
Revenues:
Resident and health care $ 107,951 $ 109,110 $ 111,089 $115,293
Management and development services 424 515 500 443
Reimbursed expenses 768 524 460 532
--------- --------- ---------- ---------
Total revenues 109,143 110,149 112,049 116,268
Operating expenses:
Community operating expenses 73,852 74,065 75,825 77,055
General and administrative 6,588 6,114 8,400 7,569
Lease expense 15,114 15,158 15,382 15,590
Depreciation and amortization 6,913 6,547 8,488 9,200
Amortization of leasehold acquisition costs 718 728 735 736
Loss (gain) on sale of assets - - - -
Reimbursed expenses 768 524 460 532
--------- --------- ---------- ---------
Total operating expenses 103,953 103,136 109,290 110,682
--------- --------- ---------- ---------
Operating income 5,190 7,013 2,759 5,586
Other income (expense):
Interest expense (9,701) (8,932) (8,400) (4,444)
Interest income 602 669 718 794
Gain (loss) on sale of assets 105 6 (48) (22)
Other 111 (364) 257 443
--------- --------- ---------- ---------
Other expense, net (8,883) (8,621) (7,473) (3,229)
--------- --------- ---------- ---------
Income (loss) before income taxes and minority interest (3,693) (1,608) (4,714) 2,357
Income tax expense 145 75 2,501 (300)
--------- --------- ---------- ---------
Income (loss) before minority interest (3,838) (1,683) (7,215) 2,657
Minority interest in earnings of consolidated subsidiaries, net of tax (962) (863) 270 (851)
--------- --------- ---------- ---------
Net income (loss) $ (4,800) $ (2,546) $ (6,945) $ 1,806
========= ========= ========== =========
Basic earnings (loss) per share $ (0.23) $ (0.10) $ (0.28) $ 0.07
========= ========= ========== =========
Dilutive earnings (loss) per share $ (0.23) $ (0.10) $ (0.28) $ 0.07
========= ========= ========== =========
Weighted average shares used for basic earnings per share 21,258 24,290 24,665 24,997
Dilutive shares - - - 1,609
--------- --------- ---------- ---------
Weighted average shares used for diluted earnings per share 21,258 24,290 24,665 26,606
========= ========= ========== =========
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
Adjustments and reclassifications
---------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2004 2004 2004 2004
--------- --------- --------- ---------
Revenues:
Resident and health care $ - $ - $ - $ -
Management and development services - - - -
Reimbursed expenses - - - -
--------- --------- --------- ---------
Total revenues - - - -
Operating expenses:
Community operating expenses - - - -
General and administrative - - - -
Lease expense (293) (286) (282) (307)
Depreciation and amortization - - - -
Amortization of leasehold acquisition costs - - - -
Loss (gain) on sale of assets (105) (6) 48 22
Reimbursed expenses - - - -
--------- --------- --------- ---------
Total operating expenses (398) (292) (234) (285)
--------- --------- --------- ---------
Operating income 398 292 234 285
Other income (expense):
Interest expense - - - -
Interest income - - - -
Gain (loss) on sale of assets (105) (6) 48 22
Other - - - -
--------- --------- --------- ---------
Other expense, net (105) (6) 48 22
--------- --------- --------- ---------
Income (loss) before income taxes and minority interest 293 286 282 307
Income tax expense - - - -
--------- --------- --------- ---------
Income (loss) before minority interest 293 286 282 307
Minority interest in earnings of consolidated subsidiaries, net of tax - - - -
--------- --------- --------- ---------
Net income (loss) $ 293 $ 286 $ 282 $ 307
========= ========= ========= =========
Basic earnings (loss) per share $ 0.02 $ 0.01 $ 0.01 $ 0.01
========= ========= ========= =========
Dilutive earnings (loss) per share $ 0.02 $ 0.01 $ 0.01 $ 0.01
========= ========= ========= =========
Weighted average shares used for basic earnings per share - - - -
Dilutive shares - - - -
--------- --------- --------- ---------
Weighted average shares used for diluted earnings per share - - - -
========= ========= ========= =========
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
As restated
----------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2004 2004 2004 2004
--------- --------- --------- ----------
Revenues:
Resident and health care $ 107,951 $ 109,110 $ 111,089 $ 115,293
Management and development services 424 515 500 443
Reimbursed expenses 768 524 460 532
--------- --------- --------- ----------
Total revenues 109,143 110,149 112,049 116,268
Operating expenses:
Community operating expenses 73,852 74,065 75,825 77,055
General and administrative 6,588 6,114 8,400 7,569
Lease expense 14,821 14,872 15,100 15,283
Depreciation and amortization 6,913 6,547 8,488 9,200
Amortization of leasehold acquisition costs 718 728 735 736
Loss (gain) on sale of assets (105) (6) 48 22
Reimbursed expenses 768 524 460 532
--------- --------- --------- ----------
Total operating expenses 103,555 102,844 109,056 110,397
--------- --------- --------- ----------
Operating income 5,588 7,305 2,993 5,871
Other income (expense):
Interest expense (9,701) (8,932) (8,400) (4,444)
Interest income 602 669 718 794
Gain (loss) on sale of assets - - - -
Other 111 (364) 257 443
--------- --------- --------- ----------
Other expense, net (8,988) (8,627) (7,425) (3,207)
--------- --------- --------- ----------
Income (loss) before income taxes and minority interest (3,400) (1,322) (4,432) 2,664
Income tax expense 145 75 2,501 (300)
--------- --------- --------- ----------
Income (loss) before minority interest (3,545) (1,397) (6,933) 2,964
Minority interest in earnings of consolidated subsidiaries, net of tax (962) (863) 270 (851)
--------- --------- --------- ----------
Net income (loss) $ (4,507) $ (2,260) $ (6,663) $ 2,113
========= ========= ========= ==========
Basic earnings (loss) per share $ (0.21) $ (0.09) $ (0.27) $ 0.08
========= ========= ========= ==========
Dilutive earnings (loss) per share $ (0.21) $ (0.09) $ (0.27) $ 0.08
========= ========= ========= ==========
Weighted average shares used for basic earnings per share 21,258 24,290 24,665 24,997
Dilutive shares - - - 1,609
--------- --------- --------- ----------
Weighted average shares used for diluted earnings per share 21,258 24,290 24,665 26,606
========= ========= ========= ==========
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
As previously reported
----------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2003 2003 2003 2003
--------- --------- ---------- ---------
Revenues:
Resident and health care $ 95,308 $ 97,378 $ 100,534 $ 103,087
Management and development services 450 383 338 351
Reimbursed expenses 688 613 529 318
--------- --------- ---------- ---------
Total revenues 96,446 98,374 101,401 103,756
Operating expenses:
Community operating expenses 68,246 68,898 72,003 71,661
General and administrative 5,981 6,837 6,351 6,241
Lease expense 10,134 10,366 12,058 15,106
Depreciation and amortization 6,831 6,969 6,918 6,149
Amortization of leasehold acquisition costs 518 530 597 776
Loss (gain) on sale of assets - - - -
Reimbursed expenses 688 613 529 318
--------- --------- ---------- ---------
Total operating expenses 92,398 94,213 98,456 100,251
--------- --------- ---------- ---------
Operating income 4,048 4,161 2,945 3,505
Other income (expense):
Interest expense (14,317) (14,590) (14,978) (9,685)
Interest income 697 892 636 537
Gain (loss) on sale of assets (58) 79 23,149 (17)
Other 63 213 (255) 111
--------- --------- ---------- ---------
Other income (expense), net (13,615) (13,406) 8,552 (9,054)
--------- --------- ---------- ---------
Income (loss) before income taxes and minority interest (9,567) (9,245) 11,497 (5,549)
Income tax expense 130 64 1,361 1,106
--------- --------- ---------- ---------
Income (loss) before minority interest (9,697) (9,309) 10,136 (6,655)
Minority interest in earnings of consolidated subsidiaries, net of tax (1,273) (175) (256) (85)
--------- --------- ---------- ---------
Net income (loss) $ (10,970) $ (9,484) $ 9,880 $ (6,740)
========= ========= ========== =========
Basic earnings (loss) per share $ (0.63) $ (0.53) $ 0.53 $ (0.36)
========= ========= ========== =========
Dilutive earnings (loss) per share $ (0.63) $ (0.53) $ 0.41 $ (0.36)
========= ========= ========== =========
Weighted average shares used for basic earnings per share 17,343 18,051 18,739 18,962
Dilutive shares - - 5,839 -
--------- --------- ---------- ---------
Weighted average shares used for diluted earnings per share 17,343 18,051 24,578 18,962
========= ========= ========== =========
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
Adjustments and reclassifications
---------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2003 2003 2003 2003
--------- --------- --------- ---------
Revenues:
Resident and health care $ - $ - $ - $ -
Management and development services - - - -
Reimbursed expenses - - - -
--------- --------- --------- ---------
Total revenues - - - -
Operating expenses:
Community operating expenses - - - -
General and administrative - - - -
Lease expense (199) (144) (588) (249)
Depreciation and amortization - - - -
Amortization of leasehold acquisition costs - - - -
Loss (gain) on sale of assets 58 (79) (23,149) 17
Reimbursed expenses - - - -
--------- --------- --------- ---------
Total operating expenses (141) (223) (23,737) (232)
--------- --------- --------- ---------
Operating income 141 223 23,737 232
Other income (expense):
Interest expense - - - -
Interest income - - - -
Gain (loss) on sale of assets 58 (79) (23,149) 17
Other - - - -
--------- --------- --------- ---------
Other income (expense), net 58 (79) (23,149) 17
--------- --------- --------- ---------
Income (loss) before income taxes and minority interest 199 144 588 249
Income tax expense - - - -
--------- --------- --------- ---------
Income (loss) before minority interest 199 144 588 249
Minority interest in earnings of consolidated subsidiaries, net of tax - - - -
--------- --------- --------- ---------
Net income (loss) $ 199 $ 144 $ 588 $ 249
========= ========= ========= =========
Basic earnings (loss) per share $ 0.01 $ 0.01 $ 0.03 $ 0.02
========= ========= ========= =========
Dilutive earnings (loss) per share $ 0.01 $ 0.01 $ 0.02 $ 0.02
========= ========= ========= =========
Weighted average shares used for basic earnings per share - - - -
Dilutive shares - - - -
--------- --------- --------- ---------
Weighted average shares used for diluted earnings per share - - - -
========= ========= ========= =========
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
As restated
----------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2003 2003 2003 2003
--------- --------- --------- ----------
Revenues:
Resident and health care $ 95,308 $ 97,378 $ 100,534 $ 103,087
Management and development services 450 383 338 351
Reimbursed expenses 688 613 529 318
--------- --------- --------- ----------
Total revenues 96,446 98,374 101,401 103,756
Operating expenses:
Community operating expenses 68,246 68,898 72,003 71,661
General and administrative 5,981 6,837 6,351 6,241
Lease expense 9,935 10,222 11,470 14,857
Depreciation and amortization 6,831 6,969 6,918 6,149
Amortization of leasehold acquisition costs 518 530 597 776
Loss (gain) on sale of assets 58 (79) (23,149) 17
Reimbursed expenses 688 613 529 318
--------- --------- --------- ----------
Total operating expenses 92,257 93,990 74,719 100,019
--------- --------- --------- ----------
Operating income 4,189 4,384 26,682 3,737
Other income (expense):
Interest expense (14,317) (14,590) (14,978) (9,685)
Interest income 697 892 636 537
Gain (loss) on sale of assets - - - -
Other 63 213 (255) 111
--------- --------- --------- ----------
Other income (expense), net (13,557) (13,485) (14,597) (9,037)
--------- --------- --------- ----------
Income (loss) before income taxes and minority interest (9,368) (9,101) 12,085 (5,300)
Income tax expense 130 64 1,361 1,106
--------- --------- --------- ----------
Income (loss) before minority interest (9,498) (9,165) 10,724 (6,406)
Minority interest in earnings of consolidated subsidiaries, net of tax (1,273) (175) (256) (85)
--------- --------- --------- ----------
Net income (loss) $(10,771) $(9,340) $10,468 $(6,491)
========= ========= ========= ==========
Basic earnings (loss) per share $ (0.62) $ (0.52) $ 0.56 $ (0.34)
========= ========= ========= ==========
Dilutive earnings (loss) per share $ (0.62) $ (0.52) $ 0.43 $ (0.34)
========= ========= ========= ==========
Weighted average shares used for basic earnings per share 17,343 18,051 18,739 18,962
Dilutive shares - - 5,839 -
--------- --------- --------- ----------
Weighted average shares used for diluted earnings per share 17,343 18,051 24,578 18,962
========= ========= ========= ==========
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
As previously reported
--------------------------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2004 2004 2004 2004
------------- ------------- ------------- -------------
Cash flows from operating activities:
Net income (loss) (4,800) (7,346) (14,291) (12,485)
Adjustments to reconcile net income (loss) to cash and cash
equivalents provided by operating activities:
Depreciation and amortization 7,631 14,906 24,129 34,065
Amortization of deferred financing costs 801 1,208 4,597 4,700
Deferred entrance fee items:
Amortization of deferred entrance fee income (4,526) (8,745) (12,737) (17,502)
Proceeds from entrance fee sales - deferred income 10,665 22,620 35,058 44,061
Refunds of entrance fee terminations (3,112) (5,872) (9,753) (12,871)
Deferred income tax benefit - (1,808) (484)
Accrual of deferred interest - - - -
Amortization of deferred gain on sale-leaseback transactions (2,546) (5,078) (7,954) (10,902)
Minority interest in earnings of consolidated subsidiaries 962 1,825 1,555 2,406
(Gains) losses from unconsolidated joint ventures 144 220 85 278
Amortization of deferred compensation - - 182 400
Tax benefit from exercise of stock options - - - 432
Loss (gain) on sale of assets (105) (111) (63) (41)
Changes in assets and liabilities, exclusive of acquisitions
and sale-leaseback transactions:
Accounts receivable (1,054) (651) (618) (1,273)
Inventory 25 34 39 (56)
Prepaid expenses (1,059) 376 218 1,233
Other assets 4,384 3,928 3,949 2,212
Accounts payable (131) (121) (1,204) 1,137
Accrued interest (114) (111) (236) (204)
Other accrued expenses and other current liabilities (4,355) (1,918) 6,618 (190)
Tenant deposits (78) (66) (266) 53
Deferred lease liability - - - 6,544
Other liabilities 1,803 3,640 3,422 (3,184)
------------- ------------- ------------- -------------
Net cash and cash equivalents provided by operating activities 4,535 18,738 30,922 38,329
Cash flows from investing activities:
Additions to land, buildings and equipment (4,665) (9,572) (14,288) (19,262)
(Purchase of) proceeds from restricted cash, net (974) (3,798) (6,902) (7,669)
Purchase of restricted cash - - - -
Proceeds from restricted cash - - - -
Net change in other restricted cash accounts - - - -
Proceeds from the sale of assets - - 11,008 12,594
Receipts from notes receivable 91 180 269 362
Other investing activities 366 366 346 358
------------- ------------- ------------- -------------
Net cash and cash equivalents used by investing activities (5,182) (12,824) (9,567) (13,617)
Cash flows from financing activities:
Proceeds from the issuance of long-term debt 43,645 43,838 55,261 54,100
Proceeds from lease financing - - 120,500 120,500
Principal payments on long-term debt (45,851) (49,239) (179,992) (184,962)
Accrual of deferred interest 1,988 4,074 4,074 -
Principal reductions in master trust liability (322) (634) (940) (1,234)
Refundable entrance fee items:
Proceeds from entrance fee sales - refundable portion - - - -
Refunds of entrance fee terminations - - - -
Expenditures for financing costs (165) (341) (428) (625)
Distributions to minority interest holders (1,068) (2,225) (3,243) (4,215)
Proceeds from the issuance of common stock 35 142 142 600
Proceeds from the exercise of stock options 81 204 1,566 2,386
------------- ------------- ------------- -------------
Net cash and cash equivalents provided (used) by financing activities (1,657) (4,181) (3,060) (13,450)
------------- ------------- ------------- -------------
Net increase (decrease) in cash and cash equivalents $ (2,304) $ 1,733 $ 18,295 $ 11,262
Cash and cash equivalents at beginning of period 17,192 17,192 17,192 17,192
------------- ------------- ------------- -------------
Cash and cash equivalents at end of period $ 14,888 $ 18,925 $ 35,487 $ 28,454
============= ============= ============= =============
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Adjustments and reclassifications
-------------------------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2004 2004 2004 2004
------------ ------------- ------------- -------------
Cash flows from operating activities:
Net income (loss) 293 579 861 1,168
Adjustments to reconcile net income (loss) to cash and cash
equivalents provided by operating activities:
Depreciation and amortization - - - -
Amortization of deferred financing costs - - - -
Deferred entrance fee items:
Amortization of deferred entrance fee income - - - -
Proceeds from entrance fee sales - deferred income (3,484) (7,295) (10,152) (12,069)
Refunds of entrance fee terminations 3,112 5,872 9,753 12,871
Deferred income tax benefit - - - -
Accrual of deferred interest 1,988 4,074 4,074 -
Amortization of deferred gain on sale-leaseback transactions - - - -
Minority interest in earnings of consolidated subsidiaries - - - -
(Gains) losses from unconsolidated joint ventures - - - -
Amortization of deferred compensation - - - -
Tax benefit from exercise of stock options - - - -
Loss (gain) on sale of assets - - - -
Changes in assets and liabilities, exclusive of acquisitions
and sale-leaseback transactions:
Accounts receivable - - - -
Inventory - - - -
Prepaid expenses - - - -
Other assets 22 45 68 91
Accounts payable - - - -
Accrued interest - - - -
Other accrued expenses and other current liabilities - - - -
Tenant deposits - - - -
Deferred lease liability (315) (624) (929) (1,259)
Other liabilities - - - -
------------ ------------- ------------- -------------
Net cash and cash equivalents provided by operating activities 1,616 2,651 3,675 802
Cash flows from investing activities:
Additions to land, buildings and equipment - - - -
(Purchase of) proceeds from restricted cash, net 974 3,798 6,902 7,669
Purchase of restricted cash (3,136) (7,578) (16,555) (22,551)
Proceeds from restricted cash 1,682 4,144 8,854 14,540
Net change in other restricted cash accounts 480 (364) 799 342
Proceeds from the sale of assets - - - -
Receipts from notes receivable - - - -
Other investing activities - - - -
------------ ------------- ------------- -------------
Net cash and cash equivalents used by investing activities - - - -
Cash flows from financing activities:
Proceeds from the issuance of long-term debt - - - -
Proceeds from lease financing - - - -
Principal payments on long-term debt - - - -
Accrual of deferred interest (1,988) (4,074) (4,074) -
Principal reductions in master trust liability - - - -
Refundable entrance fee items:
Proceeds from entrance fee sales - refundable portion 3,484 7,295 10,152 12,069
Refunds of entrance fee terminations (3,112) (5,872) (9,753) (12,871)
Expenditures for financing costs - - - -
Distributions to minority interest holders - - - -
Proceeds from the issuance of common stock - - - -
Proceeds from the exercise of stock options - - - -
------------ ------------- ------------- -------------
Net cash and cash equivalents provided (used) by financing activities (1,616) (2,651) (3,675) (802)
------------ ------------- ------------- -------------
Net increase (decrease) in cash and cash equivalents $ - $ - $ - $ -
Cash and cash equivalents at beginning of period
------------ ------------- ------------- -------------
Cash and cash equivalents at end of period $ - $ - $ - $ -
============ ============= ============= =============
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
As restated
----------------------------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2004 2004 2004 2004
------------- ------------- -------------- --------------
Cash flows from operating activities:
Net income (loss) (4,507) (6,767) (13,430) (11,317)
Adjustments to reconcile net income (loss) to cash and cash
equivalents provided by operating activities:
Depreciation and amortization 7,631 14,906 24,129 34,065
Amortization of deferred financing costs 801 1,208 4,597 4,700
Deferred entrance fee items:
Amortization of deferred entrance fee income (4,526) (8,745) (12,737) (17,502)
Proceeds from entrance fee sales - deferred income 7,181 15,325 24,906 31,992
Refunds of entrance fee terminations - - - -
Deferred income tax benefit - - (1,808) (484)
Accrual of deferred interest 1,988 4,074 4,074 -
Amortization of deferred gain on sale-leaseback transactions (2,546) (5,078) (7,954) (10,902)
Minority interest in earnings of consolidated subsidiaries 962 1,825 1,555 2,406
(Gains) losses from unconsolidated joint ventures 144 220 85 278
Amortization of deferred compensation - - 182 400
Tax benefit from exercise of stock options - - - 432
Loss (gain) on sale of assets (105) (111) (63) (41)
Changes in assets and liabilities, exclusive of acquisitions
and sale-leaseback transactions:
Accounts receivable (1,054) (651) (618) (1,273)
Inventory 25 34 39 (56)
Prepaid expenses (1,059) 376 218 1,233
Other assets 4,406 3,973 4,017 2,303
Accounts payable (131) (121) (1,204) 1,137
Accrued interest (114) (111) (236) (204)
Other accrued expenses and other current liabilities (4,355) (1,918) 6,618 (190)
Tenant deposits (78) (66) (266) 53
Deferred lease liability (315) (624) (929) 5,285
Other liabilities 1,803 3,640 3,422 (3,184)
------------- ------------- -------------- --------------
Net cash and cash equivalents provided by operating activities 6,151 21,389 34,597 39,131
Cash flows from investing activities:
Additions to land, buildings and equipment (4,665) (9,572) (14,288) (19,262)
(Purchase of) proceeds from restricted cash, net - - - -
Purchase of restricted cash (3,136) (7,578) (16,555) (22,551)
Proceeds from restricted cash 1,682 4,144 8,854 14,540
Net change in other restricted cash accounts 480 (364) 799 342
Proceeds from the sale of assets - - 11,008 12,594
Receipts from notes receivable 91 180 269 362
Other investing activities 366 366 346 358
------------- ------------- -------------- --------------
Net cash and cash equivalents used by investing activities (5,182) (12,824) (9,567) (13,617)
Cash flows from financing activities:
Proceeds from the issuance of long-term debt 43,645 43,838 55,261 54,100
Proceeds from lease financing - - 120,500 120,500
Principal payments on long-term debt (45,851) (49,239) (179,992) (184,962)
Accrual of deferred interest - - - -
Principal reductions in master trust liability (322) (634) (940) (1,234)
Refundable entrance fee items:
Proceeds from entrance fee sales - refundable portion 3,484 7,295 10,152 12,069
Refunds of entrance fee terminations (3,112) (5,872) (9,753) (12,871)
Expenditures for financing costs (165) (341) (428) (625)
Distributions to minority interest holders (1,068) (2,225) (3,243) (4,215)
Proceeds from the issuance of common stock 35 142 142 600
Proceeds from the exercise of stock options 81 204 1,566 2,386
------------- ------------- -------------- --------------
Net cash and cash equivalents provided (used) by financing activities (3,273) (6,832) (6,735) (14,252)
------------- ------------- -------------- --------------
Net increase (decrease) in cash and cash equivalents $ (2,304) $ 1,733 $ 18,295 $ 11,262
Cash and cash equivalents at beginning of period 17,192 17,192 17,192 17,192
------------- ------------- -------------- --------------
Cash and cash equivalents at end of period $ 14,888 $ 18,925 $ 35,487 $ 28,454
============= ============= ============== ==============
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
As previously reported
-------------------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2003 2003 2003 2003
----------- ------------ ----------- -----------
Cash flows from operating activities:
Net income (loss) (10,970) (20,454) (10,574) (17,314)
Adjustments to reconcile net income (loss) to cash and cash
equivalents provided by operating activities:
Depreciation and amortization 7,349 14,848 22,363 29,288
Amortization of deferred financing costs 431 1,001 1,830 2,259
Deferred entrance fee items:
Amortization of deferred entrance fee income (4,151) (8,179) (11,898) (15,423)
Proceeds from entrance fee sales - deferred income 7,008 17,893 30,453 41,790
Refunds of entrance fee terminations (3,652) (7,424) (11,830) (15,107)
Deferred income tax benefit - - - 1,645
Accrual of deferred interest - - - -
Amortization of deferred gain on sale-leaseback transactions (869) (1,681) (2,483) (4,960)
Minority interest in earnings of consolidated subsidiaries 1,273 1,448 1,704 1,789
(Gains) losses from unconsolidated joint ventures 117 121 211 478
Loss (gain) on sale of assets 58 (21) (23,170) (23,153)
Changes in assets and liabilities, exclusive of acquisitions
and sale-leaseback transactions:
Accounts receivable 205 (45) (1,375) (792)
Inventory 114 124 136 183
Prepaid expenses (75) 1,185 (227) 188
Other assets 1,673 3,193 3,651 5,736
Accounts payable 1,306 1,076 1,715 (1,093)
Accrued interest 790 133 (2,592) 392
Other accrued expenses and other current liabilities (2,762) (1,038) 4,091 (99)
Tenant deposits (24) (170) (250) (237)
Deferred lease liability 847 1,733 3,176 4,741
Other liabilities (513) (1,075) (774) 1,033
----------- ------------ ----------- -----------
Net cash and cash equivalents provided by operating activities (1,845) 2,668 4,157 11,344
Cash flows from investing activities:
Additions to land, buildings and equipment (2,484) (5,168) (8,351) (16,467)
(Purchase of) proceeds from restricted cash, net (235) (1,035) (1,844) (2,772)
Purchase of restricted cash - - - -
Proceeds from restricted cash - - - -
Net change in other restricted cash accounts - - - -
Proceeds from the sale of assets - - 8,405 8,405
Receipts from (issuance of) notes receivable, net 55 (2,384) (2,297) 251
Issuance of notes receivable - - - -
Receipts from notes receivable - - - -
Other investing activities (91) 983 (2,175) 112
----------- ------------ ----------- -----------
Net cash and cash equivalents used by investing activities (2,755) (7,604) (6,262) (10,471)
Cash flows from financing activities:
Proceeds from the issuance of long-term debt 6,886 7,617 32,480 19,267
Principal payments on long-term debt (3,657) (10,288) (34,306) (17,551)
Accrual of deferred interest 2,972 6,378 8,930 1,996
Principal reductions in master trust liability (366) (720) (1,061) (1,389)
Refundable entrance fee items:
Proceeds from entrance fee sales - refundable portion - - - -
Refunds of entrance fee terminations - - - -
Expenditures for financing costs (307) (693) (769) (978)
Distributions to minority interest holders (1,627) (2,206) (3,140) (3,228)
Contingent earnouts (594) (594) (594) (594)
Proceeds from the issuance of common stock - - 15 112
----------- ------------ ----------- -----------
Net cash and cash equivalents provided (used) by financing activities 3,307 (506) 1,555 (2,365)
----------- ------------ ----------- -----------
Net increase (decrease) in cash and cash equivalents $ (1,293) $ (5,442) $ (550) $ (1,492)
Cash and cash equivalents at beginning of period 18,684 18,684 18,684 18,684
----------- ------------ ----------- -----------
Cash and cash equivalents at end of period $ 17,391 $ 13,242 $ 18,134 $ 17,192
=========== ============ =========== ===========
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Adjustments and reclassifications
-----------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2003 2003 2003 2003
-------- ----------- ---------- ---------
Cash flows from operating activities:
Net income (loss) 199 343 931 1,180
Adjustments to reconcile net income (loss) to cash and cash
equivalents provided by operating activities:
Depreciation and amortization - - - -
Amortization of deferred financing costs - - - -
Deferred entrance fee items:
Amortization of deferred entrance fee income - - - -
Proceeds from entrance fee sales - deferred income (1,276) (4,184) (8,026) (11,202)
Refunds of entrance fee terminations 3,652 7,424 11,830 15,107
Deferred income tax benefit - - - -
Accrual of deferred interest 2,972 6,378 8,930 1,996
Amortization of deferred gain on sale-leaseback transactions - - - -
Minority interest in earnings of consolidated subsidiaries - - - -
(Gains) losses from unconsolidated joint ventures - - - -
Loss (gain) on sale of assets - - - -
Changes in assets and liabilities, exclusive of acquisitions
and sale-leaseback transactions:
Accounts receivable - - - -
Inventory - - - -
Prepaid expenses - - - -
Other assets 22 44 66 88
Accounts payable - - - -
Accrued interest - - - -
Other accrued expenses and other current liabilities - - - -
Tenant deposits - - - -
Deferred lease liability (221) (387) (997) (1,268)
Other liabilities - - - -
-------- ----------- ---------- ---------
Net cash and cash equivalents provided by operating activities 5,348 9,618 12,734 5,901
Cash flows from investing activities:
Additions to land, buildings and equipment - - - -
(Purchase of) proceeds from restricted cash, net 235 1,035 1,844 2,772
Purchase of restricted cash (7,908) (17,988) (23,624) (29,734)
Proceeds from restricted cash 8,234 18,065 21,053 27,353
Net change in other restricted cash accounts (561) (1,112) 727 (391)
Proceeds from the sale of assets - - - -
Receipts from (issuance of) notes receivable, net (55) 2,384 2,297 (251)
Issuance of notes receivable (11) (2,504) (2,504) (2,504)
Receipts from notes receivable 66 120 207 2,755
Other investing activities - - - -
-------- ----------- ---------- ---------
Net cash and cash equivalents used by investing activities - - - -
Cash flows from financing activities:
Proceeds from the issuance of long-term debt - - - -
Principal payments on long-term debt - - - -
Accrual of deferred interest (2,972) (6,378) (8,930) (1,996)
Principal reductions in master trust liability - - - -
Refundable entrance fee items:
Proceeds from entrance fee sales - refundable portion 1,276 4,184 8,026 11,202
Refunds of entrance fee terminations (3,652) (7,424) (11,830) (15,107)
Expenditures for financing costs - - - -
Distributions to minority interest holders - - - -
Contingent earnouts - - - -
Proceeds from the issuance of common stock - - - -
-------- ----------- ---------- ---------
Net cash and cash equivalents provided (used) by financing activities (5,348) (9,618) (12,734) (5,901)
-------- ----------- ---------- ---------
Net increase (decrease) in cash and cash equivalents $ - $ - $ - $ -
Cash and cash equivalents at beginning of period
-------- ----------- ---------- ---------
Cash and cash equivalents at end of period $ - $ - $ - $ -
======== =========== ========== =========
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
As restated
---------------------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2003 2003 2003 2003
------------ ----------- ------------ -------------
Cash flows from operating activities:
Net income (loss) (10,771) (20,111) (9,643) (16,134)
Adjustments to reconcile net income (loss) to cash and cash
equivalents provided by operating activities:
Depreciation and amortization 7,349 14,848 22,363 29,288
Amortization of deferred financing costs 431 1,001 1,830 2,259
Deferred entrance fee items:
Amortization of deferred entrance fee income (4,151) (8,179) (11,898) (15,423)
Proceeds from entrance fee sales - deferred income 5,732 13,709 22,427 30,588
Refunds of entrance fee terminations - - - -
Deferred income tax benefit - - - 1,645
Accrual of deferred interest 2,972 6,378 8,930 1,996
Amortization of deferred gain on sale-leaseback transactions (869) (1,681) (2,483) (4,960)
Minority interest in earnings of consolidated subsidiaries 1,273 1,448 1,704 1,789
(Gains) losses from unconsolidated joint ventures 117 121 211 478
Loss (gain) on sale of assets 58 (21) (23,170) (23,153)
Changes in assets and liabilities, exclusive of acquisitions
and sale-leaseback transactions:
Accounts receivable 205 (45) (1,375) (792)
Inventory 114 124 136 183
Prepaid expenses (75) 1,185 (227) 188
Other assets 1,695 3,237 3,717 5,824
Accounts payable 1,306 1,076 1,715 (1,093)
Accrued interest 790 133 (2,592) 392
Other accrued expenses and other current liabilities (2,762) (1,038) 4,091 (99)
Tenant deposits (24) (170) (250) (237)
Deferred lease liability 626 1,346 2,179 3,473
Other liabilities (513) (1,075) (774) 1,033
------------ ----------- ------------ -------------
Net cash and cash equivalents provided by operating activities 3,503 12,286 16,891 17,245
Cash flows from investing activities:
Additions to land, buildings and equipment (2,484) (5,168) (8,351) (16,467)
(Purchase of) proceeds from restricted cash, net - - - -
Purchase of restricted cash (7,908) (17,988) (23,624) (29,734)
Proceeds from restricted cash 8,234 18,065 21,053 27,353
Net change in other restricted cash accounts (561) (1,112) 727 (391)
Proceeds from the sale of assets - - 8,405 8,405
Receipts from (issuance of) notes receivable, net - - - -
Issuance of notes receivable (11) (2,504) (2,504) (2,504)
Receipts from notes receivable 66 120 207 2,755
Other investing activities (91) 983 (2,175) 112
------------ ----------- ------------ -------------
Net cash and cash equivalents used by investing activities (2,755) (7,604) (6,262) (10,471)
Cash flows from financing activities:
Proceeds from the issuance of long-term debt 6,886 7,617 32,480 19,267
Principal payments on long-term debt (3,657) (10,288) (34,306) (17,551)
Accrual of deferred interest - - - -
Principal reductions in master trust liability (366) (720) (1,061) (1,389)
Refundable entrance fee items:
Proceeds from entrance fee sales - refundable portion 1,276 4,184 8,026 11,202
Refunds of entrance fee terminations (3,652) (7,424) (11,830) (15,107)
Expenditures for financing costs (307) (693) (769) (978)
Distributions to minority interest holders (1,627) (2,206) (3,140) (3,228)
Contingent earnouts (594) (594) (594) (594)
Proceeds from the issuance of common stock - - 15 112
------------ ----------- ------------ -------------
Net cash and cash equivalents provided (used) by financing activities (2,041) (10,124) (11,179) (8,266)
------------ ----------- ------------ -------------
Net increase (decrease) in cash and cash equivalents $ (1,293) $ (5,442) $ (550) $ (1,492)
Cash and cash equivalents at beginning of period 18,684 18,684 18,684 18,684
------------ ----------- ------------ -------------
Cash and cash equivalents at end of period $ 17,391 $ 13,242 $ 18,134 $ 17,192
============ =========== ============ =============