ARV Assisted Living Reports Results for the Second Quarter and Six Months Ended June 30, 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)--Aug. 9, 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 operating results for the second quarter ended June June: see month. 30, 2001. The company reported quarterly net income of $800,000, or $0.05 per share, compared with net income of $12.8 million, or $0.73 per share, for the second quarter of 2000. The 2001 and 2000 second quarter net income includes the benefit of an extraordinary gain of $1.6 million or $0.10 per share and $15 million or $0.86 per share, respectively, related to the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt. Excluding the extraordinary gains, the company would have reported a net loss for the second quarter of 2001 of $800,000 or $(0.05) per share compared with a net loss of $2.2 million or $(0.13) per share for the second quarter of 2000. The year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. net income was $2.5 million or $0.14 per share for the six months ended June 30, 2001, including an extraordinary gain of $1.6 million and $2.9 million for gain on sale of partnership interests sold in first quarter 2001, compared with $15.2 million for the six months ended June 30, 2000, including an extraordinary gain of $20.4 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. charges and extraordinary gains, the net loss for the six months ended June 30, 2001, is $2 million or $(0.11) per share versus $5.1 million loss or $(0.30) per share. Total revenue for the second quarter of 2001 was $35.9 million compared with $35 million for the same quarter last year. Total revenue for the six months ended June 30, 2001, was $71.3 million compared with $69.9 million for the same period last year. The increase in revenue for both periods was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the 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 somewhat 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 second quarter of 2001 were $34.3 million compared with $35.8 million for the same quarter last year. The sale of the three leasehold interests and a 10% reduction in general and administrative expenses helped offset general increases in operating expenses. Total operating expenses for the six months ended June 30, 2001, were $68.9 million compared with $71.6 million for the six months ended June 30, 2000. The decrease in expenses was primarily due to the sale of our leasehold interest in three facilities in the second quarter of 2000. Interest expense of $2.3 million was higher by $600,000 from second quarter 2000 due to the settlement from arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the in June 2000 of the loan fees paid in 1998 to a potential lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. . Income from operations for the second quarter was $1.6 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 $800,000 for the corresponding quarter in the prior year. Income from operations for the six months ended June 30, 2001, was $2.4 million versus a net loss of $1.7 million for the six months ended June 30, 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:
The company has continued to retire portions of its 6 3/4% convertible subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. public debt bringing the total debt retired to $49.2 million which is over 85% of the $57.5 million originally issued. The company currently has three mortgages maturing within the next 12 months, which are shown as 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. as of June 30, 2001. The company expects to have these mortgages refinanced with long-term financing Long-term financing Liabilities repayable in more than one year plus equity. before their maturity. Total occupancy of the 48 communities owned or leased by the company in the second quarter of 2001 increased to 87.8% from 85.3% for the second quarter of 2000. On the same community basis, the occupancy of owned or leased communities by the company for four quarters remained relatively constant at 88.6% at June 30, 2001, and June 30, 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 38.1% for the most recent quarter, compared with 34.3% margin for the year-ago quarter. Assisted living services provided over 17% of the revenue from assisted living communities in the most recent quarter, compared with 17.7% a year earlier. Assisted living services penetration at June 30, 2001, increased to 47.1% from 47% 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 $2,243 from $2,146 for the year-ago quarter. A conference call to discuss ARV's first quarter earnings is scheduled for Aug. 10, 2001, 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 1570706. 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 54 communities containing approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 6,600 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 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.
ARV ASSISTED LIVING INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2001 AND 2000
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2001 2000 2001 2000
Revenue:
Assisted living
community
revenues:
Rental
revenue $ 28,889 $ 28,007 $ 57,557 $56,296
Assisted living
and other
services 6,079 6,200 11,984 12,589
Skilled nursing
facility
revenue 644 595 1,195 595
Management fees
from others and
affiliates 240 178 559 393
Total revenue 35,852 34,980 71,295 69,873
Operating expenses:
Assisted living
community operating
expenses 21,441 21,912 43,088 44,598
Skilled nursing
facility expenses 613 950 1,184 950
Community lease
expense 7,671 7,893 15,379 16,057
General and
administrative 2,592 2,874 5,261 5,737
Depreciation and
amortization 1,976 2,145 3,988 4,254
Total operating
expenses 34,293 35,774 68,900 71,596
Income (loss)
from operations 1,559 (794) 2,395 (1,723)
Other income (expense):
Interest income 318 444 752 758
Other income
(expense), net (100) 35 (65) (185)
Gain on sale of
assets -- -- 2,887 --
Interest
expense (2,299) (1,668) (4,617) (3,880)
Total other
income (expense) (2,081) (1,189) (1,043) (3,307)
Income (loss)
before income
tax expense,
minority interest
in income of
majority owned
entities and
extraordinary
item (522) (1,983) 1,352 (5,030)
Income tax
(expense) (15) (17) (38) (25)
Minority interest
in (income) loss
of majority
owned entities (272) (154) (402) (87)
Income (loss)
before
extraordinary
item (809) (2,154) 912 (5,142)
Extraordinary gain
(loss) from early
extinguishment of
debt, net of income
tax 1,606 14,969 1,550 20,382
Net income $ 797 $ 12,815 $ 2,462 $ 15,240
Basic and diluted
income (loss) per
common share:
Income (loss) before
extraordinary
item $ (0.05) $ (0.13) $ 0.05 $ (0.30)
Extraordinary gain
from early
extinguishment of
debt, net of
income tax .10 0.86 0.09 1.18
Net income $ 0.05 $ 0.73 $ 0.14 $ 0.88
Weighted average
common shares
outstanding 17,460 17,460 17,460 17,254
ARV ASSISTED LIVING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands)
ASSETS
June 30, Dec. 31,
2001 2000
Current assets:
Cash and cash
equivalents $ 13,123 $ 16,817
Accounts receivable and amounts
due from affiliates 847 829
Prepaids and other current assets 5,616 5,547
Properties held for sale, net 1,426 3,545
Total current assets 21,012 26,738
Property, furniture
and equipment 101,437 100,461
Goodwill, net 18,646 18,939
Operating lease security deposits 9,780 9,778
Other non-current assets 9,815 10,024
$ 160,690 $ 165,940
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,209 $ 2,645
Accrued liabilities 9,297 11,956
Notes payable, current portion 8,627 1,071
Accrued interest payable 684 599
Total current liabilities 19,817 16,271
Notes payable, less current portion 87,835 99,130
Lease liabilities 1,873 1,752
Other non-current liabilities 715 789
110,240 117,942
Minority interest in majority owned entities 1,120 1,130
Shareholders' equity:
Series A Preferred stock, convertible and
redeemable; 2,000 shares authorized, none
issued or outstanding at June 30, 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 June 30, 2001 and Dec. 31,
2000, respectively 175 175
Additional paid in capital 145,337 145,337
Accumulated deficit (96,182) (98,644)
Total shareholders' equity 49,330 46,868
Commitments and contingent liabilities
$ 160,690 $ 165,940
ARV Assisted Living Inc.
Detail of Assisted Living Communities Operated
Communities June 30, 2001 Dec. 31, 2000
Owned 15 15
Leased 33 33
Managed 6 7
Total 54 55
Units
Owned 1,527 1,527
Leased 4,346 4,346
Managed 721 848
Total 6,594 6,721
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