ARV Assisted Living Reports Results for the First Quarter Ended March 31, 2001.Business Editors COSTA MESA Costa Mesa (kŏs`tə mā`sə), city (1990 pop. 96,357), Orange co., S Calif., on the Pacific south of Santa Ana; inc. 1953. It is a transportation, residential, and light industrial center. , Calif.--(BUSINESS WIRE)--May 11, 2001 ARV ARV abbr. Bible American Revised Version ARV n abbr (= American Revised Version) → traducción americana de la Biblia ARV n abbr (= Assisted Living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. Inc. (AMEX AMEX See: American Stock Exchange :SRS SRS, SRS-A see slow-reacting substance. ) today announced results for the first quarter ended March 31, 2001. The company reported a quarterly net income of $1.7 million, or $0.10 per share, compared with a net income of $2.4 million, or $0.14 per share, for the first quarter of 2000. The net loss prior to one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges and gains for the quarter ended March 31, 2001 was $1.2 million versus $3.0 million for the quarter ended March 31, 2000. Total revenue for the first quarter of 2001 was $35.4 million compared with $34.9 million for the same quarter last year. The revenue increases were attributed to the inclusion of the skilled nursing facility skilled nursing facility n. Abbr. SNF An establishment that houses chronically ill, usually elderly patients, and provides long-term nursing care, rehabilitation, and other services. revenue of $0.6 million which we began operating in April 2000 and increase in occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy and rental rates offset by the sale of our leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. interest in three facilities in the second quarter of 2000. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the first quarter of 2001 were $34.6 million which includes a $0.6 million in skilled nursing facility expenses. Without the skilled nursing facility expenses, operating expenses would have been $34.0 million compared with $36.0 million for the same quarter last year. The sale of the three leasehold interests and a 7% reduction in general and administrative expenses helped offset general increases in operating expenses. Income from operations for the first quarter, excluding the loss from the skilled nursing facility, was $0.8 million versus a net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1.2 million for the corresponding quarter in the prior year. Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. M. Pasquale Pasquale may refer to:
In the first quarter, the company was able to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. three loans extending their maturities to 2036. The company currently has three loans maturing within the next 12 months and are shown under current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. for this quarter. The company expects to have these loans refinanced with long term financing before their maturity. Operating Results Total occupancy of the 48 communities owned or leased by the company in the first quarter of 2001 was 88.5% compared with 84.8% at March 31, 2000. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the assisted living operations was 37.4% for the most recent quarter, compared with 34.6% margin for the year-ago quarter. Assisted living services provided almost 17% of the revenue from assisted living communities in the most recent quarter, compared with 18% a year earlier. Assisted living services penetration The successful unauthorized breach of a security perimeter. See penetration test. at March 31, 2001 decreased to 46.7% from 46.9% from the previous year's quarter. The average monthly revenue for the quarter per occupied oc·cu·py tr.v. oc·cu·pied, oc·cu·py·ing, oc·cu·pies 1. To fill up (time or space): a lecture that occupied three hours. 2. To dwell or reside in. 3. unit increased to $2,199 from $2,149 for the year-ago quarter. Development and Divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). Activity A conference call to discuss ARV's first quarter earnings is scheduled for May 14, 2001 at 1 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT . The call-in call-in adj. Being in a format such that listeners or viewers are invited to have their telephone conversations with the host or guests on a show broadcast to other listeners: a call-in radio show. n. number is 800/245-9972. A replay of the call will be available for a 24-hour period beginning two hours following the end of the live call. To access replay, dial 800/642-1687 and enter identification number 205901. An online replay of the call will also be available for registered analysts at www.streetfusion.com. The forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. contained in this news release are subject to certain risks and uncertainties that could cause actual results to differ materially, including, without limitation, licensing, permitting and construction delays on projects under construction and development; delays in satisfaction of, or the inability to satisfy, licensure licensure (lī´s  nsh requirements for acquired communities; the possibility that
financing for acquisition and development may become less available or
more expensive; the possibility that divestitures may not be completed
as planned; and the possibility that integration of operations for
communities developed or acquired may not occur efficiently. These and
other risks are detailed in the company's Form 10-K Form 10-KA report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission for the fiscal period ended Dec. 31, 2000. Founded in 1980, ARV is one of the largest operators of assisted living communities in the nation, currently operating 55 communities containing approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 6,700 units in 11 states.
ARV ASSISTED LIVING INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2001 AND 2000
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
MARCH 31,
2001 2000
Revenue:
Assisted living community revenues:
Rental revenue $ 28,668 $ 28,289
Assisted living and other
services 5,905 6,389
Skilled nursing facility revenue 551 --
Management fees from others
and affiliates 319 215
Total revenue 35,443 34,893
Operating expenses:
Assisted living community
operating expenses 21,647 22,686
Skilled nursing facility expenses 571 --
Community lease expense 7,708 8,388
General and administrative 2,669 2,863
Depreciation and amortization 2,012 2,109
Total operating expenses 34,607 36,046
Income (loss) from operations 836 (1,153)
Other income (expense):
Interest income 434 314
Other income (expense), net 35 4
Gain on sale of assets 2,887 --
Interest expense (2,318) (2,212)
Total other income (expense) 1,038 (1,894)
Income (loss) before income tax expense,
minority interest in income of majority
owned entities and extraordinary item 1,874 (3,047)
Income tax expense 23 8
Income (loss) before minority interest
in income of majority owned entities
and extraordinary item 1,851 (3,055)
Minority interest in (income) loss of
majority owned entities (130) 67
Income (loss) before extraordinary item 1,721 (2,988)
Extraordinary gain (loss) from early
extinguishment of debt, net of income
tax (56) 5,413
Net income $ 1,665 $ 2,425
Basic and diluted income (loss) per
common share:
Income (loss) before extraordinary
item $ 0.10 $ (0.18)
Extraordinary gain from early
extinguishment of debt, net of
income tax .00 0.32
Net income $ 0.10 $ 0.14
Weighted average common shares
Outstanding 17,460 17,048
ARV ASSISTED LIVING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
ASSETS
March 31, Dec. 31,
2001 2000
Current assets:
Cash and cash equivalents $ 17,342 $ 16,817
Accounts receivable and
amounts due from affiliates 722 829
Prepaids and other current
assets 5,833 5,547
Properties held for sale, net 3,295 3,545
Total current assets 27,192 26,738
Property, furniture and equipment 100,067 100,461
Goodwill, net 18,793 18,939
Operating lease security deposits 9,779 9,778
Other non-current assets 9,947 10,024
$ 165,778 $ 165,940
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 890 $ 2,645
Accrued liabilities 10,950 11,956
Notes payable, current portion 4,921 1,071
Accrued interest payable 986 599
Total current liabilities 17,747 16,271
Notes payable, less current portion 95,816 99,130
Lease liabilities 1,813 1,752
Other non-current liabilities 750 789
116,126 117,942
Minority interest in majority
owned entities 1,119 1,130
Shareholders' equity:
Series A Preferred stock, convertible
and redeemable; 2,000 shares authorized,
none issued or outstanding at March 31,
2001 and Dec. 31, 2000 -- --
Preferred stock, no par value 8,000
shares authorized, none issued and
outstanding -- --
Common stock, $0.01 par value
Authorized 100,000 shares; 17,460
shares issued and outstanding at March
31, 2001 and Dec. 31, 2000,
respectively 175 175
Additional paid in capital 145,337 145,337
Accumulated deficit (96,979) (98,644)
Total shareholders' equity 48,533 46,868
Commitments and contingent liabilities $ 165,778 $ 165,940
ARV Assisted Living Inc.
Detail of Assisted Living Communities Operated
Communities March 31, 2001 Dec. 31, 2000
Owned 15 15
Leased 33 33
Managed 7 7
Total 55 55
Units
Owned 1,527 1,527
Leased 4,346 4,346
Managed 848 848
Total 6,721 6,721
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