Alternative Living Services Reports Third Quarter Profit; Completion of Merger with Sterling House Results In Largest Assisted Living Provider.BROOKFIELD, 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)--Nov. 5, 1997--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, as expected, reported its first profitable quarter for the three-month period ending September 30, 1997. As previously reported on Oct. 23, 1997, the Company completed its merger with Sterling House Corp. The following financial and other information is provided on a combined basis giving effect to the Merger, which was accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . OPERATING AND FINANCIAL RESULTS For the three months ended September 30, 1997, the Company reported on a combined basis to include Sterling House Corporation, revenues of $36.1 million and net income of $1.2 million or $0.06 per share on 19.1 million weighted average common shares outstanding. No income tax provision was required in the current period due to utilization of prior period net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. . This compares to revenues of $17.3 million and a net loss of $2.2 million or $(0.13) per share on 17.2 million weighted average common shares outstanding for the comparable period in 1996. For the nine months ended September 30, 1997, the Company reported on a combined basis revenues of $89.1 million and net income of $79,000 or $0.00 per share on 19.0 weighted average common shares outstanding. This compares to revenues of $35.3 million and a net loss, before non-recurring charge, of $6.1 million or $(0.42) per share on 14.4 million weighted average common shares outstanding for the comparable period in 1996. The substantial gain in revenues reflects the continued expansion through the development of purposeful-built residences by both the Company and Sterling. The combined company operated or managed 112 residences at the end of the third quarter of 1996 compared to 208 at the end of the third quarter of 1997 as a result of new facility openings and acquisitions. Bill Lasky, Chief Executive Officer, stated, "This quarter we welcome Sterling House into 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. family and celebrate our first quarter of profitability for the combined Company. The addition of Sterling solidifies ALS as the largest operator assisted living residences in the industry. With the addition of the Sterling management team, the company is uniquely positioned to leverage the proven growth and 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. portfolio to build momentum for our shareholders." "We are making excellent progress in blending our two companies operations," said Tim Buchanan, President. "Management from both companies have been meeting since well before the merger took effect to create a smooth transition and leverage our expanded expertise, greater geographic reach and the substantial national infrastructure." STABILIZED RESIDENCES RESULTS For the quarter ended September 30, 1997 the Company had 100 stabilized residences. These residences had an average occupancy for the quarter of 94%. For the three months ended September 30, 1997, these residences reported revenues of $24.8 million and an operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of $10.1 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 had 52 residences which were stabilized for the entire third quarter of 1996 and 1997. For these residences, revenues for the three months ended September 30, 1997 were $14.5 million, a 5% increase over $13.8 million for the comparable period in 1996. Operating margin for the three month period ended September 30, 1997 was 41%, up from 39% for the comparable period in 1996. Average occupancy for these residences remained at 95% for both quarters ending September 30, 1997 and 1996. DEVELOPMENT AND ACQUISITIONS In the third quarter of 1997, the Company added 34 new operating residences. These residences increased resident capacity by 1,300 from the end of the second quarter of 1997 resulting in 208 operating and managed residences with a resident capacity of 8,750 at the end of the third quarter. New openings by product type included three Clare Bridge, seventeen Sterling House, two Crossings, and five WovenHearts. The Company also acquired five assisted living residences with a capacity of 309 and two managed facilities with options to purchase. At September 30, 1997, the Company had 94 residences (3,950 capacity) under construction and 86 residences (3,600 capacity) under development (i.e. the site is under control and development activities have commenced) resulting in a total Company capacity of 16,300. "Our construction and development pipeline remains strong and is further enhanced by the addition of Sterling House developments allowing for increased flexibility to offer more product choices to meet the specific demands of each market," said Lasky. CURRENT OPERATIONS Alternative Living Services is the nation's largest operator of assisted living residences currently operating or managing 219 residences with a resident capacity of 9,200 and has 99 residences (4,200 capacity) under construction and 74 residences (3,150 capacity) under development resulting in a total Company capacity of 16,550. Alternative Living Services offers supportive 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 Alzheimers dementia dementia (dĭmĕn`shə) [Lat.,=being out of the mind], progressive deterioration of intellectual faculties resulting in apathy, confusion, and stupor. In the 17th cent. care residences. ALS currently operates in Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee , Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). , Minnesota, Florida, Texas, Oklahoma, Kansas, Ohio Kansas is an unincorporated community in northwestern Liberty Township, Seneca County, Ohio, United States. Although it is unincorporated, it has a post office, with the ZIP code of 44841.[1] It is located along State Route 635. References 1. , Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , Colorado, 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). , Washington, Idaho, New Jersey, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , 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). , Nevada and Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. with residences under construction and development in
many of its existing markets as well as in South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW).
Facts and FiguresArea, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. , Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). and Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). . 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". 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, without limitation, securing necessary licensing and permits, construction delays, cost increases on new developments, business conditions, adverse changes in general economic conditions, meeting all closing requirements, and the availability of financing for these developments. 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 COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands, Except Per Share Data)
Three Months Nine Months
Ended September Ended September
30, 30,
------------------- ------------------
1997 1996 1997 1996
-------- -------- -------- ---------
Revenue:
Resident service fees $35,528 $16,931 $87,783 $ 34,279
Other 614 331 1,321 1,010
-------- -------- -------- ---------
Operating revenue 36,142 17,262 89,104 35,289
Operating expenses:
Residence operations 22,563 11,199 56,153 22,986
Lease expense 6,672 2,802 18,088 5,833
General and administrative 4,155 2,947 11,480 7,450
Depreciation and amortization 3,023 1,170 6,828 2,580
Non-recurring charge -- -- -- 977
-------- -------- -------- ---------
Total operating expense 36,413 18,118 92,549 39,826
Operating loss (271) (856) (3,445) (4,537)
Other income (expense):
Interest expense, net (1,617) (1,326) (2,236) (2,448)
Other, net (43) (28) (67) (35)
Equity in income (losses) of
unconsolidated
affiliates (58) (9) (195) (56)
Minority interest in losses
of
consolidated subsidiaries 3,190 12 6,022 24
-------- -------- -------- ---------
Total other income (expense),
net 1,472 (1,351) 3,524 (2,515)
Net income (loss) $ 1,201 $(2,207) $ 79 $(7,052)
======== ======== ======== =========
Net income (loss) per share $ 0.06 $ (0.13) $ 0.00 $ (0.49)
======== ======== ======== =========
Weighted average shares
outstanding 19,087 17,160 18,989 14,395
======== ======== ======== =========
The above unaudited condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. combined statement of operations See Income statement. are presented giving effect to the merger of Alternative Living Services, Inc. and Sterling House Corporation which was consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. on October 23, 1997 and accounted for as a pooling of interests. -0-
ALTERNATIVE LIVING SERVICES, INC. AND SUBSIDIARIES
COMBINED COMPARISON OF STABILIZED AND START-UP COMMUNITIES
THREE MONTHS ENDED SEPTEMBER 30, 1997
(Unaudited)
(In Thousands, Except Per Share Data)
Three
Stabilized Start-up Months
Residences Residences Overhead Ended
(1) (2) (3) 9/30/97
----------- ---------- --------- ---------
Revenue $ 24,812 $ 10,876 $ 454 $ 36,142
Community operating 14,733 7,830 -- 22,563
expenses
----------- ---------- --------- ---------
Community operating 10,079 3,046 454 13,579
income
General and -- -- 4,155 4,155
administrative
Depreciation and 863 1,943 217 3,023
amortization
Lease expense 4,988 1,532 152 6,672
----------- ---------- --------- ---------
Operating income (loss) 4,228 (429) (4,070) (271)
Interest income
(expense), net (842) (1,617) 838 (1,613)
Other income (expense) (3) (2) (38) (43)
Equity in losses of
unconsolidated
affiliates -- -- (58) (58)
Minority interest in
losses of
consolidated subsidiaries -- 3,190 -- 3,190
----------- ---------- --------- ---------
Total other income (845) 1,575 742 1,472
(expenses), net
Net income (loss) $ 3,383 $ 1,146 $( 3,328) $ 1,201
=========== ========== ========= =========
Net income (loss) per
share $ 0.18 $ 0.06 $ (0.17) $ 0.06
=========== ========== ========= =========
Weighted average common 19,087 19,087 19,087 19,087
shares
=========== ========== ========= =========
(1) Stabilized residences are those 100 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 78 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's operating strategy.
(3) The Company manages 16 residences and has minority interests
in 14 unconsolidated residences which it operates.
ALTERNATIVE LIVING SERVICES, INC. AND SUBSIDIARIES
CONDENSED COMBINED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In Thousands)
September December
30, 31,
1997 1996
------------- ------------
ASSETS
Cash $19,566 $39,455
Other current assets 26,333 12,909
------------- ------------
Current assets 45,899 52,364
Land 43,343 11,389
Building & improvements 157,996 64,574
Furniture, fixtures & equipment 21,196 9,142
Construction in progress 74,945 53,127
------------- ------------
Total property, plant & equipment 297,480 138,232
Less: Accumulated depreciation (8,679) (5,310)
------------- ------------
Property, plant & equipment 288,801 132,922
Other assets 31,887 19,067
------------- ------------
Total assets $366,587 $204,353
============= ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $59,766 $31,832
Convertible debt 85,000 35,000
Long-term obligations, less current 110,478 33,238
installments
Deferred gain on sale 7,466 7,331
Minority interest 12,614 5,888
Stockholders' equity 91,263 91,064
------------- ------------
Total liabilities and stockholders'
equity $366,587 $204,353
============= ============
The above unaudited condensed combined consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. are presented giving effect to the merger of Alternative Living Services, Inc. and Sterling House Corporation which was consummated on October 23, 1997 and accounted for as a pooling of interests. CONTACT: Alternative Living Services Gary Kastel, 800/236-3454, 414/827-6927 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion