AdCare Health Systems, Inc. Reports 2008 Third Quarter Earnings Results
December 2nd, 2008
2008 DEC 2 -- AdCare Health Systems, Inc. (NYSE:ADK), an Ohio based long term care, home health care and management company, reported financial results for the third quarter of 2008.
Revenues for the quarter ended September 30, 2008 were $6,185,760 as compared to $5,906,326 for the same quarter in 2007, an increase of $279,434. The increase was mostly due to improved occupancy at the skilled nursing centers and increased rentals at the assisted living communities.
The loss from continuing operations for the quarter ended September 30, 2008 was $664,449 as compared to a loss of $212,838 for the same quarter in 2007, an increase of $451,611. This increase in loss was due primarily to an accrual of $162,000 in payroll expenses related to the retirement of the Company's former Chief Operating Officer and $223,000 in non-cash charges related to the new warrants issued to Officers and Directors which were approved by shareholders. Basic and diluted net loss from continuing operations per share for the quarter ended September 30, 2008 was ($0.18) as compared to a basic and diluted net loss from continuing operations per share of ($0.06) for the same quarter ended September 30, 2007.
Revenues for the nine-months ended September 30, 2008 were $18,194,838 as compared to $17,603,051 for the same period in 2007, an increase of $591,787. The loss from continuing operations for the nine-months ended September 30, 2008 was $780,595 as compared to a loss of $539,360 for the same period in 2007, an increase in the loss of $241,235. Basic and diluted net loss from continuing operations per share for the nine-months ended September 30, 2008 was ($0.21) as compared to a basic and diluted net loss from continuing operations per share of ($0.14) for the same nine-month period ended September 30, 2007.
During the third quarter, the Company completed the renovation of Hearth & Care of Greenfield, a 50-bed single story nursing home facility located in Greenfield, Ohio. With the addition of 10 private bedrooms and other improvements totaling 10,550 square feet, the Company was also able to refinance the facility and increase cash-on-hand and improve the balance sheet flexibility by recovering $800,000 previously invested in the renovation of the property. Red Mortgage Capital, Inc., an FHA/MAP lender, processed and funded the $2,524,800 232/223(f) refinancing at an annual interest rate of 6.50% for a period of 30 years. The Company now has long term, fixed rate HUD financing in place on seven of the eight properties in which the Company has ownership interests. The Company plans to start the process of refinancing its remaining property in the near future.
David A. Tenwick, Chairman of AdCare, stated that "the Company is now listed on the New York Stock Exchange Alternext US as a result of the New York and American Stock Exchange merger. We are excited about the change and believe the new listing can help us in the implementation of our acquisition strategy and improve our access to the capital markets. We need to grow in order to defray the cost of being a small public company in today's market. We have also re-engaged our Investment Banking Firm, GCC-Prospect Corp., to assist us in the process of evaluating several potential acquisitions and exploring other business opportunities, including new long term care management contracts and leases, which can help us to execute our growth strategy."
Keywords: AdCare Health Systems, Inc.
This article was prepared by Life Science Weekly editors from staff and other reports. Copyright 2008, Life Science Weekly via NewsRx.com.
