Exhibit 99.1
American Retirement Corporation
Reports Fourth Quarter and Full Year 2005 Results
NASHVILLE, Tenn.--(BUSINESS WIRE)--Feb. 24, 2006--American
Retirement Corporation:
-- Reported diluted earnings per share of $2.17 for the full
year, including a second-quarter tax benefit and debt
extinguishment cost of $1.69 per share, and $.12 for the
fourth quarter.
-- Reported diluted earnings for the quarter were affected by
Hurricane Wilma costs (approximately $.01 per share), non-cash
equity compensation expenses (approximately $.02 per share)
and increases in utility costs.
-- Free cash flow was $22 million for the full year, an increase
of 127% over 2004. For the fourth quarter, free cash flow was
$8 million, an increase of 214% versus the prior year.
American Retirement Corporation (NYSE: ACR) today reported fourth
quarter 2005 diluted earnings of $.12 per share, compared with $.08
per share for the prior year's fourth quarter.
Bill Sheriff, Chairman, President and CEO of the company,
commented, "We finished the year solidly, with excellent cash flow
from our operations. We completed an acquisition during the quarter
that has a strong strategic fit, is already showing good improvement
and will be immediately accretive. We began initiatives in pharmacy
and home health to expand our ancillary service offerings. We now have
seven community expansions or new developments under construction and
have made significant pre-construction progress on a number of other
projects."
"Our operations showed strong year over year increases in revenue
and operating contribution with occupancies increasing slightly," he
added. "We did experience some negatives in the quarter with Hurricane
Wilma expenses, pharmacy start-up costs and increased utilities, each
costing about $.01 per share. In addition, with the increase of our
stock price, our non-cash equity-based compensation expense for the
fourth quarter reached $1.3 million. Our cash flow for the quarter was
very strong - reaching a record $8 million of free cash flow. Good
operations, strong entry fee sales, reduced leverage and the decreased
cost of our capital were the key drivers. For all of 2005, we produced
$22 million of free cash flow or $41 million before principal payments
on debt. We will continue to balance the use of that cash between
strengthening our balance sheet and investing in development and
acquisitions."
(All references to growth rate percentage compare the results of
the current period to the prior year comparable period.)
Financial Highlights
-- $130 million of total revenue for the fourth quarter of 2005,
an 11% increase, and $495 million of total revenue for the
full year of 2005, also an 11% increase.
-- Net income of $4 million ($.12 per diluted share) for the
fourth quarter of 2005 versus $2 million ($.08 per diluted
share) for the fourth quarter of 2004.
-- Community operating contribution from the company's three
business segments for the fourth quarter of $44 million, an
increase of 14%.
-- Fourth quarter 2005 income from operations of $9 million, a
60% increase over the same prior year period.
Operational Highlights
-- Occupancy was 94%, with the company's large retirement
communities ending the quarter at 96% and the free-standing
assisted living communities ending at 91%.
-- Same community results showed a 9% increase in revenue and a
13% increase in operating contribution for the year.
-- Free-standing assisted living communities produced a 9%
increase in average monthly revenue per occupied unit, and a
27% increase in monthly operating contribution per occupied
unit.
Operating Review
The company operates in three business segments:
-- The Retirement Centers ("Retirement Centers") include CCRCs
(continuing care retirement centers), Entrance-Fee Communities
("EF Communities") and congregate living residences.
-- Free-standing assisted living communities ("Free-standing
AL's") are smaller than Retirement Centers and provide
assisted living and specialized care such as Alzheimer's and
memory enhancement programs.
-- The Management Services segment includes fees from management
agreements for communities owned by others, development fees
and reimbursed expenses.
For the full year of 2005, the results for the company's three
operating segments were as follows:
Year ended
($ in 000's) Dec. 31, $ %
- ------------------------------------- -------------------
2005 2004 Change Change
- ----------------------------------------------------------------------
Resident & Healthcare revenue $488,383 $443,443 44,940 10.1%
- ----------------------------------------------------------------------
Community operating expense $326,504 $300,797 25,707 8.5%
- ----------------------------------------------------------------------
Community operating contribution(1) $161,879 $142,646 19,233 13.5%
- ----------------------------------------------------------------------
Community contribution margin 33.1% 32.2%
- ----------------------------------------------------------------------
Management Services op. contribution $3,528 $1,882 1,646 87.5%
- ----------------------------------------------------------------------
(1) The company evaluates the performance of its business segments
primarily based upon their operating contributions, which the company
defines as revenue from the segment less operating expenses, excluding
depreciation, associated with that segment.
For the fourth quarter of 2005, the results for the company's
three operating segments were as follows:
Three months ended
($ in 000's) Dec. 31, $ %
- ------------------------------------- -------------------
2005 2004 Change Change
- ----------------------------------------------------------------------
Resident & Healthcare revenue $126,614 $115,293 11,321 9.8%
- ----------------------------------------------------------------------
Community operating expense $84,315 $77,055 7,260 9.4%
- ----------------------------------------------------------------------
Community operating contribution $42,299 $38,238 4,061 10.6%
- ----------------------------------------------------------------------
Community contribution margin 33.4% 33.2%
- ----------------------------------------------------------------------
Management Services op. contribution $1,848 $443 1,405 317.2%
- ----------------------------------------------------------------------
Retirement Centers Segment
The company's 29 Retirement Centers exhibited strong increases in
revenue and operating contribution for the fourth quarter of 2005 as
follows:
Three months
Retirement Centers ($ in 000's): ended:
- --------------------------------------
Dec. 31, $ %
- ---------------------------------------------------------
2005 2004 Change Change
- ----------------------------------------------------------------------
Resident & Healthcare revenue $ 97,594 $89,787 $7,807 8.7%
- ----------------------------------------------------------------------
Community operating contribution $32,784 $30,702 $2,082 6.8%
- ----------------------------------------------------------------------
Community contribution margin 33.6% 34.2%
- ----------------------------------------------------------------------
% Ending Occupancy 96% 96%
- ----------------------------------------------------------------------
The Retirement Center segment continued to produce strong revenue
gains.
-- Ending occupancy was 96%, level with the fourth quarter of
2004, though the number of occupied units increased 2% due to
the acquisition of Galleria Woods in the first quarter.
-- The Retirement Centers ended the quarter with 98% occupancy in
the independent living, 95% in the assisted living and 91% in
the skilled nursing components of the segment.
-- Average monthly revenue per occupied unit increased 6% during
the quarter versus the prior year to $3,771 - due to increases
in monthly service fees and per diem rates in skilled nursing,
turnover of residents (the "Mark to Market" effect of
reselling or reletting units at higher current rates) and
increased ancillary services, primarily driven by the
company's Innovative Senior Care therapy, education and
wellness programs.
The operating contribution for Retirement Centers was $33 million
for the fourth quarter of 2005, and $127 million for the full year of
2005. This represented a $2 million or 7% increase over the prior
year's fourth quarter and a $10 million or 9% increase over the prior
year. The Retirement Centers continue to produce increased monthly
operating contribution per occupied unit, attaining $1,267 per unit in
the fourth quarter of 2005, a 4% improvement from the prior year's
fourth quarter.
Free-standing AL's Segment
The company's 32 Free-standing AL's exhibited strong increases in
revenue and operating contribution for the fourth quarter of 2005 as
follows:
Three months
Free-standing AL's ($ in 000's) (1): ended:
- --------------------------------------
Dec. 31, $ %
- ---------------------------------------------------------
2005 2004 Change Change
- ----------------------------------------------------------------------
Resident & Healthcare revenue $29,020 $25,506 3,514 13.8%
- ----------------------------------------------------------------------
Community operating contribution $9,515 $7,536 1,979 26.3%
- ----------------------------------------------------------------------
Community contribution margin 32.8% 29.5%
- ----------------------------------------------------------------------
% Ending Occupancy 91% 89%
- ----------------------------------------------------------------------
(1) Includes results of 32 Free-standing AL's and excludes nine
non-consolidated Free-standing AL's held in joint ventures.
The revenue increase in the Free-standing AL segment of 14% to $29
million was driven by the following factors:
-- Average occupancy for the Free-standing AL portfolio was 91%
for the fourth quarter, up from 89% a year ago and up from 90%
in the third quarter of 2005.
-- The average monthly revenue per occupied unit increased 9% to
$3,678, up from $3,372 per month in the fourth quarter of
2004. The revenue per occupied unit increase was due to rate
increases, reduced promotional allowances, increased care
services and turnover of residents (the "Mark to Market"
effect of reletting units at higher current rates).
-- The increased use of ancillary services, particularly
Innovative Senior Care therapy, education and wellness
services, also contributed significantly to the revenue
increase for this segment.
The operating contribution for Free-standing AL's was over $9.5
million for the fourth quarter of 2005 and almost $35 million for the
full year. This represented a $2 million or 26% increase over the
prior year's fourth quarter and a $9 million or 34% increase over the
prior year. The Free-standing AL's continue to increase the monthly
operating contribution per occupied unit, hitting $1,206 per unit in
the fourth quarter of 2005, a 21% improvement from the prior year's
fourth quarter. For 2005, 63% of the incremental revenue from the
Free-standing AL segment fell to operating contribution.
Management Services Segment
The company's Management Services business segment includes
management contracts on six Retirement Centers and nine Free-standing
AL's, with an aggregate capacity of 2,363 units. The Management
Services segment had an operating contribution of $1.8 million in the
fourth quarter of 2005, an increase of $1.4 million. This resulted
from fees for development management services to third parties, from
the addition of the former Epoch communities for part of the quarter
and improved performance at the managed communities.
Financial Review
Revenues for the quarter increased 11% to $130 million versus the
prior year quarter and increased 11% to $495 million for the full
year, reflecting the increased average occupied units, the incremental
rate increase from the mark to market effect for new residents, rate
increases to existing residents and increased ancillary services.
Ancillary services revenue was over $22 million for the quarter, up
from $18 million a year ago. Ancillary services revenue currently
comprises 17% of total revenue.
Community operating expenses increased 9% for the quarter versus
the prior year period, while revenue increased 11%, evidencing good
cost control in spite of an increase in utility costs. General and
administrative expenses increased $2 million from the fourth quarter
of 2004 as a result of $1.2 million of non-cash compensation expense,
a portion of Hurricane Wilma expenses and the growth of the Company's
business.
Net income for the fourth quarter of 2005 was $4 million or $.12
per diluted share, compared with $2 million for the prior year's
fourth quarter. Year-to-date net income was $70 million, which
included the second quarter benefit of $56 million of past tax
benefits, and a $794,000 cost related to the second quarter early
payment of a debt.
Free cash flow was $8 million for the fourth quarter, versus $2
million for the fourth quarter of 2004. For the twelve months ended
December 31, 2005, free cash flow was $22 million versus $10 million
for the same prior year period.
2006 Earnings Outlook
The company expects to report net earnings per diluted share for
2006 in a range of $.65 to $.67 per diluted share, which includes an
estimated $.12 of share-based, non-cash compensation expense. This
guidance does not include the impact of potential future acquisitions.
Conference Call Information
American Retirement Corporation will hold a conference call with
Bill Sheriff, Chairman, President and Chief Executive Officer, and
Bryan Richardson, Chief Financial Officer, to discuss the company's
2005 fourth quarter and full year financial results and the other
matters described above. The call will be held Friday, February 24,
2006 at 9:30 a.m. ET (8:30 a.m. Central) and parties may participate
by either calling (877) 252-6354 or through the company's website at
www.arclp.com. Click on the broadcast icon to listen to the earnings
call - Windows Media Player(TM) is required to listen to this webcast.
In addition, the call will be archived on the company's website until
the next regularly scheduled earnings conference call. If any material
information is disclosed on the conference call that has not been
previously disclosed publicly, that information will also be available
at the Investors Welcome portion of the company's website.
Additional Filings
The company will file on or about February 24, 2006 a Form 8-K
with the SEC which includes supplemental information relating to the
company's fourth quarter and full year 2005 results. This filing will
also be available through the Investors Welcome section of the
company's website - www.arclp.com.
Company Profile
American Retirement Corporation is a national senior living and
health care services provider offering a broad range of care and
services to seniors, including independent living, assisted living,
skilled nursing and Alzheimer's care. Established in 1978, the company
believes that it is a leader in the operation and management of senior
living communities, including independent living communities,
continuing care retirement communities, Free-standing AL's, and the
development of specialized care programs for residents with
Alzheimer's and other forms of dementia. The company's operating
philosophy is to enhance the lives of seniors by striving to provide
the highest quality of care and services in well-operated communities
designed to improve and protect the quality of life, independence,
personal freedom, privacy, spirit, and dignity of its residents. The
company currently operates 76 senior living communities in 19 states,
with an aggregate unit capacity of approximately 14,300 units and
resident capacity of approximately 16,000. The company owns 27
communities (including nine communities in joint ventures), leases 43
communities, and manages six communities pursuant to management
agreements. Approximately 83% of the company's revenues come from
private pay sources.
Risks of Forward Looking Statements
Statements contained in this press release and statements made by
or on behalf of American Retirement Corporation relating hereto may be
deemed to constitute forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Those forward-looking statements include all statements that
are not historical statements of fact and those regarding the intent,
belief or expectations of the company or its management, including,
without limitation, all statements regarding the company's future
earnings and results of operations and future share-based compensation
expenses, all statements regarding the financial effects of recently
completed acquisitions, and all statements regarding potential
acquisitions and planned expansions and development. These
forward-looking statements may be affected by certain risks and
uncertainties, including without limitation the following: (i) the
risk associated with the company's debt and lease obligations, (ii)
the company's ability to sell its entrance fee units and to increase
occupancy at the company's communities, (iii) the risk that the
company will be unable to improve the company's results of operations,
increase cash flow and reduce expenses, (iv) the risks associated with
adverse market conditions of the senior housing industry and the
United States economy in general, (v) the risk that the company is
unable to obtain liability insurance in the future or that the costs
thereof (including deductibles) will be prohibitive, (vi) the
company's ability to obtain new financing or extend and/or modify
existing debt, (vii) the risk that the company will not be able to
successfully integrate acquired communities into the company's
operations, (viii) the risk of changes in government reimbursement
programs including caps on therapy reimbursements, (ix) the risk that
the company will be unable to locate acquisition opportunities at
prices that the company deems acceptable or to successfully complete
planned expansions and developments of new units, and (x) the risk
factors described in the company's Annual Report on Form 10-K/A for
the year ended December 31, 2004 under the caption "Risk Factors" and
in the company's other filings with the SEC. In light of the
significant uncertainties inherent in the forward-looking statements
included herein, the company's actual results could differ materially
from such forward-looking statements. The company does not undertake
any obligation to publicly release any revisions to any
forward-looking statements contained herein to reflect events and
circumstances occurring after the date hereof or to reflect the
occurrence of unanticipated events.
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
Three months Increase (Decrease)
ended December 31,
------------------- ----------------
2005 2004 $ %
--------- --------- -------- -------
Revenues:
Resident and health care $126,614 $115,293 $11,321 9.8%
Management services 1,848 443 1,405 317.2%
Reimbursed expenses 1,099 532 567 106.6%
--------- --------- -------- -------
Total revenues 129,561 116,268 13,293 11.4%
Operating expenses:
Cost of community service
revenue, exclusive of
depreciation 84,315 77,055 7,260 9.4%
Lease expense 14,967 15,283 (316) -2.1%
Depreciation and amortization,
inclusive of general and
administrative depreciation
and amortization of $578 and
$617 9,329 9,200 129 1.4%
Amortization of leasehold
acquisition costs 591 736 (145) -19.7%
Loss on sale of assets 232 22 210 954.5%
Reimbursed expenses 1,099 532 567 106.6%
General and administrative 9,611 7,569 2,042 27.0%
--------- --------- -------- -------
Total operating expenses 120,144 110,397 9,747 8.8%
--------- --------- -------- -------
Income from operations 9,417 5,871 3,546 60.4%
Other income (expense):
Interest expense (4,114) (4,444) 330 7.4%
Interest income 1,203 794 409 51.5%
Other (292) 443 (735) -165.9%
--------- --------- -------- -------
Other expense, net (3,203) (3,207) 4 0.1%
--------- --------- -------- -------
Income before income taxes
and minority interest 6,214 2,664 3,550 133.3%
Income tax expense 2,336 (300) 2,636 878.7%
--------- --------- -------- -------
Income from continuing
operations before minority
interest 3,878 2,964 914 30.8%
Minority interest in (earnings)
losses of consolidated
subsidiaries, net of tax 105 (851) (956) -112.3%
--------- --------- -------- -------
Net income $3,983 $2,113 $1,870 -88.5%
========= ========= ======== =======
Basic income (loss) per share $0.13 $0.08
========= =========
Diluted income (loss) per share $0.12 $0.08
========= =========
Weighted average shares used for
basic earnings (loss) per share
data 31,073 24,997
Effect of dilutive common stock
options 1,880 1,609
--------- ---------
Weighted average shares used for
diluted earnings (loss) per share
data 32,953 26,606
========= =========
- ------------------------------------------------------
December December
31, 31,
2005 2004
--------- ---------
Selected Balance Sheet Data:
Cash and cash equivalents $40,771 $28,454
Restricted cash 28,435 50,134
Working capital deficit (90,509) (98,995)
Land, buildings and
equipment, net 551,298 496,297
Total assets 879,474 749,250
Long-term debt, including
current portion 146,583 135,956
Capital lease and lease
financing obligations,
including current portion 177,417 199,126
Refundable portion of
entrance fees 85,164 79,148
Current portion of deferred
entrance fee income 38,407 33,800
Long-term deferred entrance
fee income 122,417 111,386
Deferred gain on sale lease-
back transactions 89,012 98,876
Shareholders' equity 132,755 5,701
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
Year ended
December 31, Increase (Decrease)
------------------- ----------------
2005 2004 $ %
--------- --------- -------- -------
Revenues:
Resident and health care $488,383 $443,443 $44,940 10.1%
Management services 3,528 1,882 1,646 87.5%
Reimbursed expenses 3,089 2,284 805 35.2%
--------- --------- -------- -------
Total revenues 495,000 447,609 47,391 10.6%
Operating expenses:
Cost of community service
revenue, exclusive of
depreciation 326,504 300,797 25,707 8.5%
Lease expense 60,936 60,076 860 1.4%
Depreciation and amortization,
inclusive of general and
administrative depreciation
and amortization of $1,925 and
$1,990 36,392 31,148 5,244 16.8%
Amortization of leasehold
acquisition costs 2,567 2,917 (350) -12.0%
Loss (gain) on sale of assets 709 (41) 750 1829.3%
Reimbursed expenses 3,089 2,284 805 35.2%
General and administrative 30,327 28,671 1,656 5.8%
--------- --------- -------- -------
Total operating expenses 460,524 425,852 34,672 8.1%
--------- --------- -------- -------
Income from operations 34,476 21,757 12,719 58.5%
Other income (expense):
Interest expense (15,815) (31,477) 15,662 49.8%
Interest income 4,364 2,783 1,581 56.8%
Other 192 447 (255) -57.0%
--------- --------- -------- -------
Other expense, net (11,259) (28,247) 16,988 60.1%
--------- --------- -------- -------
Income (loss) before income
taxes and minority interest 23,217 (6,490) 29,707 457.7%
Income tax (benefit) expense (47,530) 2,421 49,951 2063.2%
--------- --------- -------- -------
Income (loss) from
continuing operations
before minority interest 70,747 (8,911) 79,658 893.9%
Minority interest in earnings of
consolidated subsidiaries, net of
tax (1,049) (2,406) 1,357 56.4%
--------- --------- -------- -------
Net income (loss) $69,698 $(11,317) $81,015 715.9%
========= ========= ======== =======
Basic income (loss) per share $2.29 $(0.48)
========= =========
Diluted income (loss) per share $2.17 $(0.48)
========= =========
Weighted average shares used for
basic earnings (loss) per share
data 30,378 23,798
Effect of dilutive common stock
options 1,746 -
--------- ---------
Weighted average shares used for
dilutive earnings (loss) per
share data 32,124 23,798
========= =========
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
GAAP RECONCILIATION
FREE CASH FLOW
($'s in thousands)
Free cash flow is presented to provide additional information
concerning cash flow available to meet future debt service obligations
and working capital requirements. Free cash flow should not be
considered as a measure of financial performance or liquidity under
U.S. generally accepted accounting principles. Free cash flow should
not be considered in isolation or as alternative to financial
statement data presented in the Company's consolidated financial
statements as an indicator of financial performance or liquidity. Free
cash flow, as presented, may not be comparable to similarly titled
measures of other companies. The following table reconciles Free cash
flow, as described above, to net income (loss) as reflected in the
Company's consolidated statements of earnings.
Three Six Nine Twelve
months months months months
ended ended ended ended
March 31, June 30, Sept. 30, Dec. 31,
2005 2005 2005 2005
Net income $2,625 $61,625 $65,715 $69,698
Adjustments to reconcile net
income to cash and cash
equivalents provided by
operating activities:
Tax benefit from release of
tax valuation allowance - (55,697) (55,697) (55,697)
Depreciation and amortization 10,066 19,685 29,572 39,633
Loss on extinguishment of
debt - 794 794 794
Amortization of deferred
entrance fee revenue (4,064) (8,894) (13,418) (18,264)
Proceeds from entrance fee
sales, net of refunds 7,805 18,211 26,463 37,404
Deferred income tax benefit (765) - - -
Amortization of deferred gain
on sale-leaseback transactions (2,956) (5,911) (8,867) (11,815)
Amortization of deferred
compensation 218 412 695 1,947
Minority interest in earnings
of consolidated subsidiaries 71 671 1,154 1,049
Tax benefit from exercise of
stock options 395 558 847 2,266
(Gains) losses from
unconsolidated joint ventures (66) (160) (260) (6)
Loss (gain) on sale of assets 12 356 477 709
----------------------------------------
Net cash and cash equivalents
provided by operating
activities (before changes in
assets and liabilities,
exclusive of acquisitions and
sale leaseback transactions) 13,341 31,650 47,475 67,718
Proceeds from refundable
entrance fee sales, net of
refunds (1,521) (2,737) (4,611) (6,210)
Adjustments for lease
escalators and other accruals 1,004 2,220 3,502 4,565
Additions to land, building
and equipment (19,629) (27,533) (44,303) (56,447)
Plus: Development
expenditures (funded
separately) 693 2,266 5,929 12,587
Distributions to minority
interest holders (984) (2,378) (3,222) (4,066)
Principal reductions in
master trust liability (285) (553) (817) (1,071)
Other adjustments for
transactions / refinancings 15,015 15,764 24,319 24,319
----------------------------------------
Free cash flow 7,634 18,699 28,272 41,395
Principal payments on long-
term debt (4,897) (9,869) (14,527) (19,441)
----------------------------------------
Free cash flow after principal
payments $2,737 $8,830 $13,745 $21,954
========================================
Quarter Ended
----------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
2005 2005 2005 2005
Net income $2,625 $59,000 $4,090 $3,983
Adjustments to reconcile net
income to cash and cash
equivalents provided by
operating activities:
Tax benefit from release of
tax valuation allowance - (55,697) - -
Depreciation and amortization 10,066 9,619 9,887 10,061
Loss on extinguishment of debt - 794 - -
Amortization of deferred
entrance fee revenue (4,064) (4,830) (4,524) (4,846)
Proceeds from entrance fee
sales, net of refunds 7,805 10,406 8,252 10,941
Deferred income tax benefit (765) 765 - -
Amortization of deferred gain
on sale-leaseback transactions (2,956) (2,955) (2,956) (2,948)
Amortization of deferred
compensation 218 194 283 1,252
Minority interest in earnings
of consolidated subsidiaries 71 600 483 (105)
Tax benefit from exercise of
stock options 395 163 289 1,419
(Gains) losses from unconsolidated
joint ventures (66) (94) (100) 254
Loss (gain) on sale of assets 12 344 121 232
----------------------------------------
Net cash and cash equivalents
provided by operating activities
(before changes in assets and
liabilities, exclusive of
acquisitions and sale leaseback
transactions) 13,341 18,309 15,825 20,243
Proceeds from refundable
entrance fee sales, net of
refunds (1,521) (1,216) (1,874) (1,599)
Adjustments for lease
escalators and other accruals 1,004 1,216 1,282 1,063
Additions to land, building
and equipment (19,629) (7,904) (16,770) (12,144)
Plus: Development
expenditures (funded
separately) 693 1,573 3,663 6,658
Distributions to minority
interest holders (984) (1,394) (844) (844)
Principal reductions in
master trust liability (285) (268) (264) (254)
Other adjustments for
transactions / refinancings 15,015 749 8,555 -
----------------------------------------
Free cash flow 7,634 11,065 9,573 13,123
Principal payments on long-
term debt (4,897) (4,972) (4,658) (4,914)
----------------------------------------
Free cash flow after principal
payments $2,737 $6,093 $4,915 $8,209
========================================
CONTACT: American Retirement Corporation, Nashville
Ross C. Roadman, 615-376-2412