Alternative Living Services Reports First Quarter Financial Results - Posts Quarterly Earnings of $0.16 Per Share.BROOKFIELD Brookfield. 1 Village (1990 pop. 18,876), Cook co., NE Ill., a residential suburb of Chicago; inc. 1893. The noted Chicago Zoological Park (Brookfield Zoo) is there. 2 City (1990 pop. 35,184), Waukesha co., SE Wis. , Wis adv. 1. Certainly; really; indeed. v. t. 1. To think; to suppose; to imagine; - used chiefly in the first person sing. present tense, I wis. See the Note under Ywis. .--(BUSINESS WIRE)--May 7, 1998--Alternative Living Services, Inc. (AMEX AMEX See: American Stock Exchange :ALI Ali (älē`) (Ali ibn Abu Talib), 598?–661, 4th caliph (656–61). The debate over his right to the caliphate caused a major split in Islam into Sunni and Shiite branches, and he is regarded by the Shiites as the first Imam, or leader: ), the nation's largest and one of the most experienced health care providers of 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. residences reported record earnings for the three-month period ending March 31, 1998. At quarter end, the Company operated or managed 253 residences with a total capacity of 10,717 and had 7,520 resident capacity under construction or development for a total identified capacity of 18,237. OPERATING AND FINANCIAL RESULTS For the three months ended March 31, 1998, the Company reported revenues of $46.5 million and net income of $3.6 million, or $0.16 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share on 22.3 million weighted average common shares outstanding. This compares to revenues of $23.7 million and a net loss of $1.0 million, or $(0.05) per diluted share on 18.5 million weighted average common shares outstanding for the comparable period in 1997. "I am pleased with the overall performance of the Company in the first quarter. We added 30 residences with a capacity of 1,250 in the quarter and our construction and development activities continue on track," said Bill Lasky Las·ky , Jesse Louis 1880-1958. American motion-picture producer who helped found Paramount studios (1933). The pictures he produced include Sergeant York (1941) and The Great Caruso (1951). , Chief Executive Officer. "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 levels and margin performance within our stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. residence portfolio have been both consistent and on plan." Tim Buchanan, President stated "Our successful performance in the first quarter demonstrates the continued execution of ALS' targeted growth strategy. The ALS Als (äls), Ger. Alsen, island, 121 sq mi (313 sq km), Sønderjylland co., S Denmark, in the Lille Bælt, separated from the mainland by the narrow Alensund. management team remains focused on infrastructure development to support the Company's rapid growth." STABILIZED RESIDENCE RESULTS For the quarter ended March 31, 1998 the Company operated 131 stabilized residences. These residences had an average occupancy for the quarter of 94%. For the three months ended March 31, 1998, these residences achieved revenues of $31.5 million and an operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of $13.0 million or 41%. The Company defines stabilized residences as those that have reached 95% occupancy or have been open for 12 months, as of the beginning of the reporting period. SAME RESIDENCE RESULTS The Company operated 67 residences that were stabilized for the entire first quarter of 1997 and 1998. For these residences, revenues for the three months ended March 31, 1998 were $17.5 million, a 4% increase over $16.8 million for the comparable period in 1997. These residences produced operating margins of 42% for both of the three month periods ended March 31, 1997 and 1998. Average occupancy for these residences was 94% in both the first quarters of 1997 and 1998. ACQUISITION & DEVELOPMENT In the first quarter of 1998, the Company added 29 new operating residences and acquired one residence 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). . The Company's net resident capacity increased during the first quarter by 1,250 resulting in 253 operating and managed residences with a resident capacity of 10,717 at the end of the quarter. At March 31, 1998, the Company had 97 residences (4,385 capacity) under construction and 68 residences (3,135 capacity) under development (i.e. the site is under control and development activities have commenced) resulting in a total identified Company capacity of 18,237. As of today, the Company operates or manages 267 residences with a resident capacity of 11,212. Alternative Living Services offers supportive supportive adjective Pertaining to a Pt management philosophy in which only the Sx of a particular condition are treated; supportive measures are often taken when no specific and/or effective therapy is available or accessible–eg, viral meningitis, or and health care services to our nation's frail elderly frail elderly, n.pl older persons (usually over the age of 75 years) who are afflicted with physical or mental disabilities that may interfere with the ability to independently perform activities of daily living. and is the nation's largest operator of free-standing free-standing Managed care adjective Referring to a physically and, often, financially discrete entity–eg, a surgical center, that is separate from, but may be affiliated with, a hospital; FS facilities may provide ambulatory surgery, emergency or Alzheimer's/dementia care residences. ALS currently operates in 22 states and has residences under construction and development in many of its existing markets as well as in eight additional states. The Company's common stock is traded on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. , under the symbol "ALI". -0- Except for the historical information contained in the press release, the matters discussed herein contain 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. that are subject to certain risks and uncertainties that could cause actual results to differ materially from expectations. These include risks associated with, among other things, substantial debt and operating lease Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. payment obligations, integration of acquired operations, managing rapid expansion and business diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. , the need for additional financing, the possibility of rising interest rates, securing necessary licensing and permits, construction delays, cost increases on new construction and increased competition. These and other risks are set forth in the reports filed by the Company with the Securities and Exchange Commission. -0-
ALTERNATIVE LIVING SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands, Except Per Share Data)
Three Months
Ended March 31,
------------------------
1998 1997(1)
---------- -----------
Revenue:
Resident service fees $45,651 $23,471
Other 833 229
---------- -----------
Operating revenue 46,484 23,700
Operating expenses:
Residence operations 29,444 15,252
Lease expense 8,989 5,113
General and administrative 4,802 3,412
Depreciation and amortization 3,397 1,628
---------- -----------
Total operating expense 46,632 25,405
Operating loss (148) (1,705)
Other income (expense):
Interest expense, net (729) (127)
Other, net (27) (13)
Equity in income (losses) of
unconsolidated affiliates (12) (88)
Minority interest in losses of
consolidated subsidiaries 4,499 938
---------- -----------
Total other income (expense), net 3,731 710
Income (loss) before income taxes 3,583 (995)
Income taxes -- --
Net income (loss) $3,583 $(995)
---------- -----------
---------- -----------
Net income (loss) per share
Basic $0.16 $(0.05)
---------- -----------
---------- -----------
Diluted $0.16 $(0.05)
---------- -----------
---------- -----------
Weighted average shares outstanding
Basic 21,761 18,539
---------- -----------
---------- -----------
Diluted 22,344 18,539
---------- -----------
---------- -----------
(1) Includes the effect of the merger of the Company and Sterling
House Corporation in October 1997 which was accounted for as a
pooling of interests.
ALTERNATIVE LIVING SERVICES, INC. AND SUBSIDIARIES
COMPARISON OF STABILIZED AND START-UP RESIDENCES
THREE MONTHS ENDED MARCH 31, 1998
(Unaudited)
(In Thousands, Except Per Share Data)
Three
Stabilized Start-up Months
Residences Residences Overhead Ended
(1) (2) (3) 3/31/98
---------- ---------- ---------- ---------
Revenue $31,510 $14,141 $833 $46,484
Residence operations
expenses 18,462 10,982 -- 29,444
---------- ---------- ---------- ---------
Residence operating income 13,048 3,159 833 17,040
Lease expense 5,998 2,991 -- 8,989
General and administrative -- -- 4,802 4,802
Depreciation and
amortization 940 2,457 -- 3,397
---------- ---------- ---------- ---------
Operating income (loss) 6,110 (2,289) (3,969) (148)
Interest income
(expense), net (1,140) (1,207) 1,618 (729)
Other income (expense), net -- -- (27) (27)
Equity in losses of
unconsolidated
affiliates -- -- (12) (12)
Minority interest in
losses of
consolidated
subsidiaries -- 4,499 -- 4,499
---------- ---------- ---------- ---------
Total other income
(expense), net (1,140) 3,292 1,579 3,731
Net income (loss) $4,970 $1,003 $(2,390) $3,583
---------- ---------- ---------- ---------
---------- ---------- ---------- ---------
Net income per share
Basic $ 0.23 $ 0.05 $ (0.11) $0.16
---------- ---------- --------- ---------
---------- ---------- --------- ---------
Diluted $ 0.22 $ 0.04 $ (0.11) $0.16
---------- ---------- --------- ---------
---------- ---------- --------- ---------
Weighted average
shares outstanding
Basic 21,761 21,761 21,761 21,761
--------- ---------- --------- ---------
--------- ---------- --------- ---------
Diluted 22,344 22,344 22,344 22,344
--------- --------- -------- ---------
--------- --------- -------- ---------
(1) Stabilized residences are those 131 residences that have achieved
95% occupancy or have been operating for 12 months, as of the
beginning of the reporting period.
(2) Start-up residences are those 82 residences that have been newly
developed by the Company or acquired and require marketing and
other support services to properly position the facility within
ALS' operating strategy.
(3) The Company manages 18 residences and has minority interests in
an additional 22 unconsolidated residences which it manages.
ALTERNATIVE LIVING SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In Thousands)
March 31, December 31,
1998 1997
------------- --------------
ASSETS
Cash $ 68,420 $ 79,838
Short-term investments 50,000 90,000
Preopening costs, net of amortization 7,727 5,785
Other current assets 24,895 23,210
------------ --------------
Current assets 151,042 198,833
Land 35,809 34,143
Building & improvements 211,770 160,991
Furniture, fixtures & equipment 30,833 23,702
Construction in progress 135,860 114,277
------------ --------------
Total property & equipment 414,272 333,113
Less: accumulated depreciation (11,433) (9,500)
------------ --------------
Property & equipment, net 402,839 323,613
Other assets 48,152 31,106
------------ --------------
Total assets $602,033 $553,552
------------ --------------
------------ --------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 59,479 $ 69,305
Convertible debt 228,750 210,000
Long-term obligations,
less current installments 131,413 108,069
Deferred gain on sale and other 15,052 12,421
Minority interest 10,179 9,860
Stockholders' equity 157,160 143,897
------------ --------------
Total liabilities and
stockholders' equity $602,033 $553,552
------------ --------------
------------ --------------
CONTACT: Alternative Living Services, Inc. Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. Kastel Kastel may refer to:
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