AdCare Health Systems, Inc. Turns Profitable; Reports 2009 First Quarter Earnings Results
Revenues for the quarter ended
Income from operations for the quarter ended
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.
RELATED LINKS
http://www.adcarehealth.com
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