Assisted Living Concepts, Inc. Sees Strategic Plan Yield Acceleration of Growth in Private Pay Occupancy, Continued Strong Earnings and Cash Flow
(firmenpresse) - MENOMONEE FALLS, WI -- (Marketwire) -- 11/04/11 -- Assisted Living Concepts, Inc. ("ALC") (NYSE: ALC)
Highlights:
Posted 25% increase in earnings per share over the third quarter of 2010.
Increased average private pay occupancy by 70 and 56 units over the third quarter of 2010 and the second quarter of 2011, respectively.
Increased Adjusted EBITDAR as a percent of revenues to 36.4%, up from 34.5% in the third quarter of 2010.
Increased cash provided by operating activities for the nine months ended September 30, 2011 by 13.7% from the nine months ended September 30, 2010.
Declared quarterly dividend of $0.10 per share
Assisted Living Concepts, Inc. ("ALC") (NYSE: ALC) reported net income of $5.8 million in the third quarter of 2011 as compared to $4.6 million in the third quarter of 2010.
"In the third quarter of 2011, we accelerated our upward movement in our private pay occupancy," commented Laurie Bebo, President and Chief Executive Officer. "Although more temporary short term price concessions were used, we were able to significantly move the needle on occupancy while maintaining strong returns."
For the first nine months of 2011, ALC reported net income of $17.1 million as compared to $11.1 million in the first nine months of 2010.
Excluding the One-Time Items described below, net income in the first nine months of 2011 and 2010 would have been $15.9 million and $12.7 million, respectively.
Diluted earnings per common share for the third quarter and the first nine months ended September 30, 2011 and 2010 were:
One-Time Items in the quarter and nine months ended September 30, 2011 included:
1. A reduction in tax expense associated with the settlement of all issues associated with a tax allocation agreement with a subsidiary of our former parent Extendicare Inc. (now Extendicare Real Estate Investment Trust) ($0.0 million and $0.8 million for the quarter and nine months ended September 30, 2011, respectively)
2. Income/expense associated with a mark to market adjustment for interest rate swap agreements ($0.1 million income and $0.1 million expense net of tax for the quarter and nine months ended September 30, 2011, respectively)
3. The write-off of deferred financing fees associated with our refinanced debt ($0.0 million and $0.2 million net of tax for the quarter and nine months ended September 30, 2011, respectively)
4. Gains on sales of equity investments ($0.0 million and $0.6 million net of tax for the quarter and nine months ended September 30, 2011, respectively)
5. Income associated with purchase accounting adjustments on repaid debt ($0.1 million and $0.1 million net of tax for the quarter and nine months ended September 30, 2011, respectively)
One-Time Items in the nine months ended September 30, 2010 (none of which occurred in the quarter ended September 30, 2010) included:
1. The reclassification of a decline in the fair market value of equity securities from a component of the Company's stockholders' equity to the Company's income statement ($1.3 million net of tax).
2. The realignment of ALC's divisional level management structure in order to better match specific operating talents with certain geographical opportunities. In connection with this realignment, ALC incurred certain non-recurring expenses primarily related to personnel ($0.3 million net of tax).
3. The decision not to complete an expansion project due to higher than anticipated site costs ($0.1 million net of tax). We will continue to evaluate existing owned properties for expansion growth.
Certain non-GAAP financial measures are used in the discussions in this release in assessing the performance of the business. See attached tables for definitions of Adjusted EBITDA and Adjusted EBITDAR, reconciliations of net income to Adjusted EBITDA and Adjusted EBITDAR, calculations of Adjusted EBITDA and Adjusted EBITDAR as a percentage of total revenues, and non-GAAP financial measure reconciliation information.
As of September 30, 2011, ALC operated 211 senior living residences comprising 9,325 units. ALC obtains substantially all of its revenues from residents that pay with private funds. With the exception of one residence, comprising less than 10 residents paying through the Medicaid program, we expect to be completely out of the Medicaid program in 2012.
The following discussions include the impact of the One-Time Items.
Revenues of $58.6 million in the third quarter ended September 30, 2011 were essentially flat as compared to $58.5 million in the third quarter of 2010 and $58.6 million in the second quarter of 2011.
Adjusted EBITDAR for the third quarter of 2011 was $21.3 million or 36.4% of revenues and
increased $1.1 million or 5.6% from $20.2 million and 34.5% of revenues in the third quarter of 2010; and
decreased $0.4 million or 1.8% from $21.7 million and 37.0% of revenues in the second quarter of 2011.
Adjusted EBITDA for the third quarter of 2011 was $16.9 million or 28.9% of revenues and
increased $1.9 million or 12.4% from $15.0 million and 25.7% of revenues in the third quarter of 2010; and
decreased $0.4 million or 2.2% from $17.3 million and 29.5% of revenues in the second quarter of 2011.
Revenues in the third quarter of 2011 were essentially flat from the third quarter of 2010 primarily due to an increase in private pay occupancy ($0.7 million), offset by the planned reduction in the number of units occupied by Medicaid residents ($0.4 million) and rate decreases primarily associated with promotional discounts ($0.3 million). Average private pay rates declined in the third quarter of 2011 by 0.6% from average private pay rates for the third quarter of 2010. Average overall rates, including the impact of improved payer mix, decreased in the third quarter of 2011 by 0.2% from comparable rates for the third quarter of 2010.
Both Adjusted EBITDAR and Adjusted EBITDA increased in the third quarter of 2011 primarily due to a decrease in residence operations expenses ($0.3 million) (this excludes the gain on disposal of fixed assets), a decrease in general and administrative expenses ($0.8 million) (this excludes non-cash equity based compensation), and, for Adjusted EBITDA only, a decrease in residence lease expense ($0.7 million) resulting from the November 1, 2010, purchase of nine previously leased properties. Residence operations expenses decreased primarily from lower labor expenses. In addition, general economic conditions enabled us to hire new employees at lower wage rates. General and administrative expenses decreased primarily from lower payroll, administrative and travel expenses.
Revenues in the third quarter of 2011 declined by $0.1 million from the second quarter of 2011 primarily due to lower average daily revenue as a result of promotional discounts ($1.2 million), and the planned reduction in the number of units occupied by Medicaid residents ($0.1 million), partially offset by one additional day in the third quarter ($0.6 million) and an increase in the number of units occupied by private pay residents ($0.6 million). Average private pay rates declined in the third quarter of 2011 by 2.0% from average private pay rates for the second quarter of 2011. Average overall rates, including the impact of improved payer mix, decreased in the third quarter of 2011 by 1.9% from comparable rates in the second quarter of 2011.
Decreased Adjusted EBITDA and Adjusted EBITDAR in the third quarter of 2011 as compared to the second quarter of 2011 resulted primarily from an increase in residence operations expenses ($1.0 million) (this excludes the gain on disposal of fixed assets), partially offset by a decrease in general and administrative expenses ($0.7 million) (this excludes non-cash equity-based compensation) and a decrease in revenue discussed above ($0.1 million). Residence operations expenses increased primarily from increases in utility expenses resulting from normal seasonal fluctuations and wage increases for existing team members. General and administrative expenses decreased as a result of a decline in payroll and payroll related, and legal expenses.
Revenues of $175.6 million in the nine months ended September 30, 2011 increased $0.9 million or 0.5% from $174.7 million in the nine months ended September 30, 2010.
Adjusted EBITDAR for the nine months ended September 30, 2011 was $62.8 million, or 35.7% of revenues and
increased $4.3 million or 7.3% from $58.5 million and 33.5% of revenues in the nine months ended September 30, 2010.
Adjusted EBITDA for the nine months ended September 30, 2011 was $49.5 million, or 28.2% of revenues and
increased $6.4 million or 14.8% from $43.1 million and 24.7% of revenues in the nine months ended September 30, 2010.
Revenues in the nine months ended September 30, 2011 increased from the nine months ended September 30, 2010 primarily due to higher average daily revenue from rate increases ($1.3 million) and an increase in private pay occupancy ($1.3 million), partially offset by the planned reduction in the number of units occupied by Medicaid residents ($1.7 million). Average private pay rates increased in the nine months ended September 30, 2011 by 0.8% over average private pay rates for the nine months ended September 30, 2010. Average overall rates, including the impact of improved payer mix, increased in the nine months ended September 30, 2011 by 1.3% over the comparable rates for the nine months ended September 30, 2010.
Both Adjusted EBITDA and Adjusted EBITDAR increased in the nine months ended September 30, 2011 primarily from a decrease in residence operations expenses ($1.9 million) (this excludes the gain on disposal of fixed assets), a decrease in general and administrative expenses ($1.5 million) (this excludes non-cash equity based compensation), the increase in revenues discussed above ($0.9 million) and, for Adjusted EBITDA only, a decrease in residence lease expense ($2.1 million). Residence operations expenses decreased primarily from lower labor and kitchen expenses. In addition, general economic conditions enabled us to hire new employees at lower wage rates. Kitchen expenses were lower due to new group purchasing plans and lower overall occupancy. General and administrative expenses decreased from non-recurring expenses associated with the realignment of our divisions in the 2010 nine month period. Residence lease expense decreased as a result of the November 1, 2010, purchase of nine previously leased properties.
On, November 3, 2011 the Board of Directors declared a dividend of $0.10 per share payable to shareholders of record on the close of business on November 18, 2011 and will be paid on December 15, 2011.
At September 30, 2011 ALC maintained a strong liquidity position with cash of approximately $2.6 million and undrawn lines of $101.4 million and a debt to equity ratio of 31.4%. In addition, at September 30, 2011 ALC had 55.6% of its owned properties unencumbered.
ALC has scheduled a conference call for today November 4, 2011 at 10:00 a.m. (ET) to discuss its financial results for the third quarter. This earnings release will be posted on ALC's website at . The toll-free number for the live call is (800) 230-1085 or international (612) 234-9960. A taped rebroadcast of the conference call will be available approximately three hours following the live call until midnight on December 4, 2011, by dialing toll free (800) 475-6701, or international (320) 365-3844; and using access code 210445.
Assisted Living Concepts, Inc. and its subsidiaries operate 211 senior living residences comprising 9,325 residents in 20 states. ALC's senior living residences typically consist of 40 to 60 units and offer a supportive, home-like setting. Residents may receive assistance with the activities of daily living either directly from ALC employees or through our wholly owned home health subsidiaries. ALC employs approximately 4,100 people.
Statements contained in this release other than statements of historical fact, including statements regarding anticipated financial performance, business strategy and management's plans and objectives for future operations, including management's expectations about improving occupancy and private pay mix, are forward-looking statements. Forward-looking statements generally include words such as "expect," "point toward," "intend," "will," "indicate," "anticipate," "believe," "estimate," "plan," "strategy" or "objective." Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. In addition to the risks and uncertainties referred to in the release, other risks and uncertainties are contained in ALC's filings with United States Securities and Exchange Commission and include, but are not limited to, the following: changes in the health care industry in general and the senior housing industry in particular because of governmental and economic influences; changes in general economic conditions, including changes in housing markets, unemployment rates and the availability of credit at reasonable rates; changes in regulations governing the industry and ALC's compliance with such regulations; changes in government funding levels for health care services; resident care litigation, including exposure for punitive damage claims and increased insurance costs, and other claims asserted against ALC; ALC's ability to maintain and increase census levels; ALC's ability to attract and retain qualified personnel; the availability and terms of capital to fund acquisitions and ALC's capital expenditures; changes in competition; and demographic changes. Given these risks and uncertainties, readers are cautioned not to place undue reliance on ALC's forward-looking statements. All forward-looking statements contained in this report are necessarily estimates reflecting the best judgment of the party making such statements based upon current information. ALC assumes no obligation to update any forward-looking statement.
Adjusted EBITDA and Adjusted EBITDAR
Adjusted EBITDA is defined as net income from continuing operations before income taxes, interest expense net of interest income, depreciation and amortization, equity based compensation expense, transaction costs and non-cash, non-recurring gains and losses, including disposal of assets and impairment of long-lived assets (including goodwill) and loss on refinancing and retirement of debt. Adjusted EBITDAR is defined as Adjusted EBITDA before rent expenses incurred for leased assisted living properties. Adjusted EBITDA and Adjusted EBITDAR are not measures of performance under accounting principles generally accepted in the United States of America, or GAAP. We use Adjusted EBITDA and Adjusted EBITDAR as key performance indicators and Adjusted EBITDA and Adjusted EBITDAR expressed as a percentage of total revenues as a measurement of margin.
We understand that EBITDA and EBITDAR, or derivatives thereof, are customarily used by lenders, financial and credit analysts, and many investors as a performance measure in evaluating a company's ability to service debt and meet other payment obligations or as a common valuation measurement in the long-term care industry. Moreover, ALC's revolving credit facility contains covenants in which a form of EBITDA is used as a measure of compliance, and we anticipate EBITDA will be used in covenants in any new financing arrangements that we may establish. We believe Adjusted EBITDA and Adjusted EBITDAR provide meaningful supplemental information regarding our core results because these measures exclude the effects of non-operating factors related to our capital assets, such as the historical cost of the assets.
We report specific line items separately, and exclude them from Adjusted EBITDA and Adjusted EBITDAR because such items are transitional in nature and would otherwise distort historical trends. In addition, we use Adjusted EBITDA and Adjusted EBITDAR to assess our operating performance and in making financing decisions. In particular, we use Adjusted EBITDA and Adjusted EBITDAR in analyzing potential acquisitions and internal expansion possibilities. Adjusted EBITDAR performance is also used in determining compensation levels for our senior executives. Adjusted EBITDA and Adjusted EBITDAR should not be considered in isolation or as a substitute for net income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with GAAP, or as a measure of profitability or liquidity. We present Adjusted EBITDA and Adjusted EBITDAR on a consistent basis from period to period, thereby allowing for comparability of operating performance.
The following table sets forth a reconciliation of net income to Adjusted EBITDA and Adjusted EBITDAR:
The following table sets forth the calculations of Adjusted EBITDA, Adjusted EBITDAR, Adjusted EBITDA before division realignment and Adjusted EBITDAR before division realignment as percentages of total revenue:
For further information, contact:
Assisted Living Concepts, Inc.
John Buono
Sr. Vice President, Chief Financial Officer and Treasurer
Phone: (262) 257-8999
Fax: (262) 251-7562
Email:
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 04.11.2011 - 06:00 Uhr
Sprache: Deutsch
News-ID 1053465
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
MENOMONEE FALLS, WI
Phone:
Kategorie:
Hospitals, Facilities and Providers
Anmerkungen:
Diese Pressemitteilung wurde bisher 111 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Assisted Living Concepts, Inc. Sees Strategic Plan Yield Acceleration of Growth in Private Pay Occupancy, Continued Strong Earnings and Cash Flow
"
steht unter der journalistisch-redaktionellen Verantwortung von
Assisted Living Concepts, Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
