SPRINGFIELD, Ohio, Sept. 24 /PRNewswire-FirstCall/ -- AdCare Health Systems, Inc. (NYSE AMEX: ADK), an Ohio-based long term care, home care and management company, today announced the appointment of veteran industry executive Chris Brogdon as Vice Chairman and Chief Acquisitions Officer.
Brogdon, age 60, is AdCare's largest individual stockholder. In addition to his duties as Vice Chairman of the Board, Brogdon will manage the Company's efforts to accelerate growth through selective acquisitions of nursing homes and assisted living facilities.
Brogdon brings to AdCare more than 20 years of experience in the nursing home, assisted living and retirement community industry. His career highlights include:
- Chairman of the board of NYSE-listed Retirement Care Associates (RCA), where he recapitalized the Company and engineered an acquisition program that expanded RCA from 3 to 120 facilities and increased annual revenue from $1.0 million to more than $350 million. RCA was eventually acquired by Sun Healthcare for more than $350 million.
- Chairman of the board of Nasdaq-listed Contour Medical, which under his direction achieved a seven-fold increase in revenue -- from $5.0 million to $35.0 million -- and was eventually sold at a price of $12 per share, up from $1 per share when Brogdon assumed the chairmanship.
David A. Tenwick, Chairman of AdCare, stated that "Chris Brogdon has a strong track record of building shareholder value through a combination of acquisitive and organic growth." Tenwick continued, "As our largest individual stockholder, he has demonstrated a strong, long-term commitment to AdCare and is the ideal candidate to manage our M&A activities. In addition, with his experience, he has contacts with many banks and financial institutions that can be very beneficial to our expansion strategy."
"I am excited to accept this new assignment with AdCare and confident in our abilities to accelerate growth through a combination of acquisitions and organic initiatives," Brogdon said. "AdCare is a well-managed, highly regarded company with a wide range of complementary services in the nursing home, assisted living and home care sectors. The Company has demonstrated the ability to achieve profitability and steady growth in a challenging economy. We intend to leverage AdCare's infrastructure and reputation to build additional value for our shareholders, residents, partners and other stakeholders
AdCare has achieved four consecutive years of revenue growth and is on track to achieve its fifth year. The Company recently reported revenue of $13.0 million through the first six months of 2009, up 8.2% from $12.0 million in the same period a year ago. The Company also transitioned to bottom line profitability for two straight quarters due to improved occupancy in its skilled nursing centers and assisted living facilities as well as higher revenue in its home health care division. Basic and diluted net income per share through six months was $0.07 as compared to a net loss of $0.02 per basic and diluted share in the first six months of 2008. Operating income through the first six months of 2009 increased to $931,000 from $155,000 for the same period last year.
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 920 employees provide high-quality care, management services and other services for patients and residents residing in 20 facilities, seven of which are assisted living facilities, twelve skilled nursing centers and one independent senior living community. 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.
SOURCE AdCare Health Systems, Inc.