AdCare Health Systems, Inc. Reports 2008 First Quarter Earnings Results

May 19, 2008, 01:00 ET from AdCare Health Systems, Inc.

    SPRINGFIELD, Ohio, May 19 /PRNewswire-FirstCall/ -- AdCare Health
 Systems, Inc. (Amex:   ADK), an Ohio based long term care, home care and
 management company, today reported financial results for its first quarter
 of 2008.
     Revenues for the quarter ended March 31st, 2008 were $5,992,542 as
 compared to $5,824,348 for the same quarter in 2007, an increase of
 $168,194. The increase was primarily due to better occupancy at our skilled
 nursing centers and our assisted living communities.
     The loss before taxes and discontinued operations for the quarter ended
 March 31, 2008 was $128,826 as compared to a loss of $124,206 for the first
 quarter ended March 31, 2007, an increase of $4,620. Basic and diluted net
 loss per share for the three months ended March 31, 2008 was $0.04 as
 compared to $0.04 for the three months ended March 31, 2007.
     David A. Tenwick, Chairman of AdCare, stated that the Company is
 continuing to absorb the necessary costs of being a public company but we
 are energized about being listed on the American Stock Exchange. "Our plan
 is to utilize the advantages of being a public company by expanding
 operations through acquisitions in like or complimentary business areas
 such as rehabilitation services, institutional pharmacy and hospice, as
 well as raising additional capital. To assist us in carrying out our plans,
 we have engaged Prospect Financial Advisors."
     About AdCare Health Systems, Inc.
     AdCare Health Systems, Inc. (Amex:   ADK) develops, owns and manages
 assisted living facilities, nursing homes and retirement communities and
 provides home health care services. Prior to becoming a publicly traded
 company in November of 2006, AdCare operated as a private company for 18
 years. AdCare's 900 employees provide high-quality care for patients and
 residents residing in the 15 facilities that they manage, seven of which
 are assisted living facilities, six skilled nursing centers and two
 independent senior living communities. The Company has ownership interests
 in seven 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 SHEETS March 31, December 31, 2008 2007 (Unaudited) ASSETS Current Assets: Cash $886,000 $926,625 Certificate of deposit, restricted 211,998 209,637 Accounts receivable: Long-term care resident receivables, net 2,197,467 2,115,364 Management, consulting and development receivables, net 287,950 259,778 Advances and receivables from affiliates, current 22,669 27,558 Prepaid expenses and other 406,927 453,219 Total current assets 4,013,011 3,992,181 Restricted cash 740,803 973,975 Property and equipment, net 14,378,198 14,425,868 Note receivable, net 218,015 221,413 License, net 1,189,307 1,189,307 Goodwill 2,638,193 2,638,193 Other assets 1,151,121 1,050,506 Total Assets $24,328,648 $24,491,443 LIABILITIES AND STOCKHOLDER'S EQUITY Current Liabilities: Current portion of notes payable and other debt $740,607 $773,278 Current portion of notes payable to stockholder 9,432 9,026 Accounts payable and accrued expenses 3,485,882 3,476,536 Forward purchase contract 900,000 900,000 Total current liabilities 5,135,921 5,158,840 Notes Payable and Other Debt, Net of Current Portion 12,728,438 12,813,338 Notes Payable to Stockholders, Net of Current Portion 805,187 810,084 Other Liabilities 569,238 559,509 Deferred Tax Liability 10,642 - Minority Interest in Equity of Consolidated Entities 307,000 255,070 Total liabilities 19,556,426 19,596,841 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 14,081,044 14,063,956 Accumulated deficit (9,308,822) (9,169,354) Total stockholders' equity 4,772,222 4,894,602 Total liabilities and stockholders' equity $24,328,648 $24,491,443 See notes to consolidated financial statements ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended March 31, 2008 2007 Revenues: Patient care revenues $5,568,061 $5,366,640 Management, consulting and development fee revenue 424,481 457,708 Total revenue 5,992,542 5,824,348 Expenses: Payroll and related payroll costs 3,587,397 3,688,575 Other operating expenses 2,023,256 1,779,752 Depreciation and amortization 226,694 202,903 Total expenses 5,837,347 5,671,230 Income from Continuing Operations 155,195 153,118 Other Income (Expense): Interest income 9,133 16,580 Interest expense, others (226,352) (248,073) Interest expense, related parties (14,872) (17,957) Minority interest in earnings of consolidated entities (51,930) (27,874) (284,021) (277,324) Loss Before Taxes and Discontinued Operations (128,826) (124,206) Income Tax Expense (10,642) - Loss From Continuing Operations (139,468) (124,206) Discontinued Operations: Loss from discontinued operations - (10,571) Net Loss $(139,468) $(134,777) Net Loss Per Share, Basic and Diluted: Continuing operations $(0.04) $(0.04) Discontinued operations - - $(0.04) $(0.04) Weighted Average Common Shares Outstanding, Basic 3,786,129 3,786,129 Diluted 3,786,129 3,786,129 See notes to consolidated financial statements

SOURCE AdCare Health Systems, Inc.