ARV Assisted Living Reports Results for the Fourth Quarter and Year Ended Dec. 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)--March 25, 2002 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 operating results for the fourth quarter and year ended Dec. 31, 2001. The company reported a quarterly net loss of $800,000, or $(0.04) per share, compared with a net loss of $7.2 million, or $(0.41) per share, for the fourth quarter of 2000. Net income was $1 million or $0.06 per share for the year ended Dec. 31, 2001, which included an extraordinary gain of $2.1 million and gain on the sale of partnership interests of $2.9 million, compared with $6.5 million for the year ended Dec. 31, 2000, which included an extraordinary gain of $20.6 million. Exclusive of the one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain and extraordinary gains, the net loss for the year ended Dec. 31, 2001 was $4 million or $(0.23) per share versus a $14.1 million loss or $(0.81) per share for the same period ended Dec. 31, 2000. Total revenue for the fourth quarter of 2001 was $37.4 million compared with $34.6 million for the same quarter last year. 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 fourth quarter of 2001 were $35.5 million compared with $41.7 million for 2000's fourth quarter. The impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of $6.2 million in the previous year's fourth quarter caused most of the change. Additional costs due to substantial increases in utilities and insurance charges were offset by a reduction in general and administrative expenses attributable to the sale of the apartment group and reductions in payroll cost. Income from operations for the fourth quarter of 2001 was $1.9 million versus a loss from operations of $7.2 million for the corresponding quarter in the prior year. Without the impairment charge of $6.2 million the 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. was $1 million for the prior year's quarter. Total revenue for the year ended Dec. 31, 2001 was $145.4 million compared with $138.9 million for last year. The increase in revenue was attributable to the increase in occupancy and rental rates, offset somewhat by the sale of the company's 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 communities in the second quarter of 2000. Total operating expenses for the year ended Dec. 31, 2001, were $139.4 million compared with $147.6 million for the year ended Dec. 31, 2000. The decrease in expenses was primarily due to the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. impairment charge in 2000 of $6.2 million. The remaining decrease is attributed to the sale of the company's leasehold interest in three communities in the second quarter of 2000 and the aforementioned reduction in general and administrative expense offset by increases in utilities and insurance expenses. Total occupancy of the 50 communities owned or leased by the company for the year 2001 increased to 88.2% from 86.8% for the year 2000. The average monthly revenue for the year per occupied unit increased 5.3% to $2,259 from $2,145 for the prior year. Revenue from assisted living services remained at 17% of total revenue. Income from operations for the year ended Dec. 31, 2001, was $6 million, an $8.5 million improvement over the $2.5 million loss from operations, excluding the impairment loss for the year ended Dec. 31, 2000. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 37.1% for the year ended Dec. 31, 2001, compared with a 35.5% margin for the year ended Dec. 31, 2000. The company pursuant to its joint venture operating agreements An operating agreement is an agreement among limited liability company ("LLC") members governing the LLC's business, and Member's financial and management rights and duties. No state requires an LLC to have an Operating agreement. recognized its share of the venture losses amounting to $1.8 million for the year 2001 compared with $400,000 in year 2000. Cash earnings, defined as income before one-time gain, impairment charges and extraordinary gain plus depreciation and amortization, was $3.9 million for the year ended Dec. 31, 2001, compared with $600,000 for the same period ended Dec. 31, 2000. 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:
midmost of highly competitive and challenging market conditions." The company added four management contracts in the fourth quarter of 2001 and an additional management contract in the first quarter of 2002. The company completed the tender offer to acquire a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Retirement Villas Properties III, L.P., and at Dec. 31, 2001, the company owned 52.1% of the partnership units. ARVP ARVP Arginine Vasopressin ARVP Autonomous Robotic Vehicle Project (University of Alberta, Canada) III owns two communities, one in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). and one in Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). . The company has retired $50.2 million, or more than 87% of the $57.5 million originally issued 6 3/4% convertible subordinated public debt. Over the last year the company has refinanced more than $17.7 million in mortgage loans, 71% of which have maturities beyond 2035. The company is in the process of securing long-term financing Long-term financing Liabilities repayable in more than one year plus equity. for mortgages maturing in the next 18 months. Pasquale stated, "Our operating performance improvement, coupled with the balance sheet restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and mortgage refinancings, both completed and in progress, allow us to begin focusing on measured growth and opportunities to enhance shareholder value. A conference call to discuss ARV's fourth quarter and 2001 earnings is scheduled for Wednesday Wednesday: see week. , March 27, 2002 at 1 p.m. PST PST Paroxysmal supraventricular tachycardia, see there . 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 3665047. An online replay of the call will also be available for registered analysts at www.streetfusion.com. Founded in 1980, ARV is one of the largest operators of assisted living communities in the nation, currently operating 58 communities containing approximately 6,800 units in 10 states. 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, 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 and refinancing RefinancingAn extension and/or increase in amount of existing debt. of maturing loans 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-K A 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.
ARV ASSISTED LIVING INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
QUARTER AND YEAR ENDED DEC. 31, 2001 AND 2000
(UNAUDITED)
THREE MONTHS ENDED YEAR ENDED
(In thousands, except DEC. 31, DEC. 31,
per share amounts) 2001 2000 2001 2000
Revenue:
Assisted living community
revenues:
Rental revenue $30,003 $28,119 $117,249 $ 112,073
Assisted living and other
services 6,444 5,557 24,668 24,024
Skilled nursing facility
revenue 620 673 2,323 1,960
Management fees from others
and affiliates 348 208 1,155 808
Total revenue 37,415 34,557 145,395 138,865
Operating expenses:
Assisted living community
operating expenses 22,852 21,322 88,185 87,130
Skilled nursing facility
expenses 656 602 2,507 1,901
Community lease expense 7,780 7,620 30,943 31,571
Impairment loss - 6,187 - 6,187
General and administrative 2,237 3,913 9,874 12,288
Depreciation and
amortization 2,001 2,085 7,878 8,483
Total operating expenses 35,526 41,729 139,387 147,560
Income (loss) from
operations 1,889 (7,172) 6,008 (8,695)
Other income(expense):
Interest income 59 401 1,010 1,532
Other income (expense), net 829 360 681 244
Equity in income (loss) of
partnerships (1,798) 791 (1,798) 791
Gain on sale of assets - 500 2,887 500
Interest expense (2,096) (2,331) (8,949) (8,368)
Total other income
(expense) (3,006) (279) (6,169) (5,301)
Loss before income tax
expense, minority interest
in income of majority owned
entities and extraordinary
item (1,117) (7,451) (161) (13,996)
Income tax (expense) (141) (132) (151) (160)
Minority interest in (income)
loss of majority owned
entities (5) 186 (778) 55
Income (loss) before
extraordinary item (1,263) (7,397) (1,090) (14,101)
Extraordinary gain from
early extinguishment of
debt, net of income tax 512 222 2,062 20,613
Net income (loss) $ (751) $(7,175) $ 972 $ 6,512
Basic and diluted income
(loss) per common share:
Income (loss) before
extraordinary item $ (0.07) $ (0.42) $(0.06) $(0.81)
Extraordinary gain from
early extinguishment of
debt, net of income tax 0.03 0.01 0.12 1.19
Net income (loss) $ (0.04) $(0.41) $ 0.06 $ 0.38
Weighted average common
shares outstanding 17,460 17,460 17,460 17,357
ARV ASSISTED LIVING INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Dec. 31, 2001 and 2000
(In thousands)
(UNAUDITED)
ASSETS
2001 2000
Current assets:
Cash and cash equivalents $ 13,234 $ 16,817
Accounts receivable and amounts due
from affiliates, net 744 829
Prepaids and other current assets 3,701 2,291
Impounds 3,779 3,256
Properties held for sale, net 763 3,545
Total current assets 22,221 26,738
Property, furniture and equipment 116,929 100,461
Goodwill, net 18,354 18,939
Operating lease security deposits 9,414 9,778
Other non-current assets 10,259 10,024
$ 177,177 $ 165,940
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,212 $ 2,645
Accrued payroll costs 4,055 3,064
Other accrued liabilities 6,659 8,892
Notes payable, current portion 7,269 1,071
Accrued interest payable 823 599
Total current liabilities 21,018 16,271
Notes payable, less current portion 105,062 99,130
Lease liabilities 1,995 1,752
Other non-current liabilities 641 789
128,716 117,942
Minority interest in majority owned
entities 621 1,130
Shareholders' equity:
Series A Preferred stock, convertible
and redeemable; 2,000 shares authorized,
none issued or outstanding at Dec. 31,
2001 and 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 Dec. 31, 2001 and 2000 175 175
Additional paid in capital 145,337 145,337
Accumulated deficit (97,672) (98,644)
Total shareholders' equity 47,840 46,868
Commitments and contingent liabilities $ 177,177 $ 165,940
ARV Assisted Living Inc.
Detail of Assisted Living Communities Operated
Communities Dec. 31, 2001 Dec. 31, 2000
Owned 17 15
Leased 33 33
Managed 8 7
Total 58 55
Units
Owned 1,816 1,527
Leased 4,310 4,310
Managed 648 848
Total 6,774 6,685
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