SPRINGFIELD, Ohio, May 18 /PRNewswire-FirstCall/ -- AdCare Health Systems, Inc. (NYSE Amex: ADK), an Ohio-based long-term care, home health care and management company, today reported financial results for its first quarter of 2009.
Revenues for the quarter ended March 31st, 2009 were $6,384,889 as compared to $5,992,542 for the same quarter in 2008, an increase of $392,347. The increase was primarily due to improved occupancy at its assisted living communities, an increase in Medicare patients at its nursing homes, and the acquisition of the Lincoln Lodge.
Income from operations for the quarter ended March 31, 2009 was $403,926 as compared to $155,195 for the first quarter ended March 31, 2008, an increase of $248,731. Net income for the quarter ended March 31, 2009 was $95,814 as compared to a net loss of $139,468 for the quarter ended March 31, 2008, an increase of $235,282. Basic and diluted net income per share for the three months ended March 31, 2009 was $0.03 as compared to a net loss per share of $0.02 for the three months ended March 31, 2008, an improvement of $0.05 per share for the quarter.
David A. Tenwick, Chairman of AdCare, stated "I am pleased that the Company has turned profitable and continues to make progress. It is a testament to the strength of our senior management team to have made such considerable financial improvements during this economic downturn." He continued, "AdCare has improved its working capital by $490,000 since year end. The Company's current liabilities are only about $50,000 more than its current assets which is a significant improvement from year end. In addition, EBITDA (earnings before interest, taxes, depreciation and amortization) was $629,234 for the first quarter as compared to $381,889 for the first quarter last year, an increase of $247,345 or 65%."
About AdCare Health Systems, Inc.
AdCare Health Systems, Inc. (NYSE Amex: ADK) develops, owns and manages assisted living facilities, nursing homes and retirement communities and provides home health care services. Prior to becoming a publicly traded company in November of 2006, AdCare operated as a private company for 18 years. AdCare's 900 employees provide high-quality care for patients and residents residing in the 14 facilities that they manage, six of which are assisted living facilities, six skilled nursing centers and two independent senior living communities. The Company has ownership interests in eight of those facilities. In the ever expanding marketplace of long-term care, AdCare's mission is to provide quality healthcare services to the elderly.
Safe Harbor Statement
Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of federal law. Such forward-looking statements reflect management's beliefs and assumptions and are based on information currently available to management. The forward-looking statements involve known and unknown risks, results, performance or achievements of the Company to differ materially from those expressed or implied in such statements. Such factors are identified in the public filings made by the Company with the Securities and Exchange Commission and include the Company's ability to secure lines of credit and/or an acquisition credit facility, find suitable acquisition properties at favorable terms, changes in the health care industry because of political and economic influences, changes in regulations governing the industry, changes in reimbursement levels including those under the Medicare and Medicaid programs and changes in the competitive marketplace. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.
ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET March 31, December 31, 2009 2008 ASSETS (Unaudited) ------ Current Assets: Cash $1,552,019 $1,266,315 Accounts receivable: Long-term care resident receivables, net 1,836,336 2,008,847 Management, consulting and development receivables, net 285,979 258,811 Advances and receivables from affiliates 23,081 17,635 Prepaid expenses and other 516,373 478,534 Total current assets 4,213,788 4,030,142 Restricted cash 1,141,777 1,155,596 Property and equipment, net 16,622,981 16,772,660 License, net 1,189,307 1,189,307 Goodwill 2,679,482 2,679,482 Other assets 922,573 1,012,340 Total assets $26,769,908 $26,839,527 LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Current Liabilities: Current portion of notes payable and other debt $725,242 $713,323 Current portion of notes payable to stockholder 9,432 9,432 Accounts payable 836,203 1,009,002 Accrued expenses 2,693,637 2,838,407 Total current liabilities 4,264,513 4,570,164 Notes payable and other debt, net of current portion 16,824,813 16,974,788 Notes payable to stockholder, net of current portion 32,594 34,626 Other liabilities 549,055 299,314 Income tax payable 180,649 170,007 Total liabilities 21,851,623 22,048,899 Stockholders' equity: Preferred stock, no par value; 500,000 shares authorized; no shares issued or outstanding - - Common stock and additional paid-in capital, no par value; 14,500,000 shares authorized; 3,786,129 shares issued and outstanding 14,790,692 14,766,967 Accumulated deficit (10,149,718) (10,245,532) Total stockholders' equity 4,640,974 4,521,435 Noncontrolling interest in subsidiaries 277,311 269,193 Total equity 4,918,285 4,790,628 Total liabilities and stockholders' equity $26,769,908 $26,839,527 ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) Three Months Ended March 31, 2009 2008 Revenues: Patient care revenues $5,916,835 $5,568,061 Management, consulting and development fee revenue 468,054 424,481 Total revenue 6,384,889 5,992,542 Expenses: Payroll and related payroll costs 3,737,729 3,587,397 Other operating expenses 2,017,926 2,023,256 Depreciation and amortization 225,308 226,694 Total expenses 5,980,963 5,837,347 Income from Operations 403,926 155,195 Other Income (Expense): Interest income 1,308 9,133 Interest expense, others (294,142) (226,352) Interest expense, related parties (718) (14,872) Other expense 4,200 - (289,352) (232,092) Income (Loss ) Before Income Taxes 114,574 (76,896) Income Tax Expense (10,642) (10,642) Net Income (Loss) 103,932 (87,538) Net Income Attributable to Noncontrolling Interest (8,118) (51,930) Net Income (Loss) Attributable to AdCare Health Systems, Inc. $95,814 $(139,468) Net Income (Loss) Per Share, Basic $0.03 $(0.02) Net Income (Loss) Per Share, Diluted $0.03 $(0.02) Weighted Average Common Shares Outstanding, Basic 3,786,129 3,786,129 Diluted 3,815,820 3,786,129 ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) Common Stock and Additional Accumulated Paid-in Noncontrolling Total Deficit Capital Interest Balance, December 31, 2008: $4,790,628 $(10,245,532) $14,766,967 $269,193 Warrants issued in connection with consulting agreement 12,567 - 12,567 - Stock option compensation expense 11,158 - 11,158 - Net income 95,814 95,814 - - Net income attributable to noncontrolling interest 8,118 - - 8,118 Balance, March 31, 2009 $4,918,285 $(10,149,718) $14,790,692 $277,311 ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three-Months Ended March 31, 2009 2008 Cash flows from operating activities: Net Income (Loss) $95,814 $(139,468) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 225,308 226,694 Warrants issued for services 24,742 7,512 Stock option compensation expense 11,158 9,576 Minority interest 8,118 51,930 Note receivable forgiveness exchanged for rent - 9,000 Changes in certain assets and liabilities: Accounts receivable 139,897 (110,987) Prepaid expenses and other (55,028) 24,640 Other assets 89,766 (100,614) Accounts payable and accrued expenses (317,570) 9,343 Income tax liability 10,642 10,642 Other liabilities 249,741 9,730 Net cash provided by operating activities 482,588 7,998 Cash flows from investing activities: Increase in restricted cash 13,819 230,811 Purchase of property plant and equipment (70,615) (157,373) Net cash (used in) provided by investing activities (56,796) 73,438 Cash flows from financing activities: Proceeds from notes payable 2,768 - Repayment of notes payable to stockholder (2,032) - Prepaid financing costs - 1,786 Repayment on notes payable (140,824) (123,847) Net cash used in financing activities (140,088) (122,061) Net Increase (Decrease) in Cash 285,704 (40,625) Cash, Beginning 1,266,315 926,625 Cash, Ending $1,552,019 $886,000 Supplemental Disclosure of Cash Flow Information: Cash paid during the year for interest $292,528 $265,760 Supplemental Disclosure of Non-Cash Activities: Rent in exchange of note receivable repayment $- $9,000
|SOURCE AdCare Health Systems, Inc.|
Copyright©2009 PR Newswire.
All rights reserved