Alternative Living Services reports fourth quarter and year end loss in line with management expectations.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)--Feb. 26, 1997-- Construction and Development Activities Include 70 New Residences 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: ), one of the nation's largest and most experienced operators 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, today announced operating and financial results for the fourth quarter and year ended December December: see month. 31, 1996. OPERATING AND FINANCIAL RESULTS For the three months ended December 31, 1996, the Company reported revenues of $14.6 million and a net loss of $1.6 million or $0.12 per share on 12,967,000 weighted average common shares outstanding. This compares to revenues of $3.1 million and a net loss of $696,000 or $0.09 per share on 7,799,000 weighted average common shares outstanding for the comparable period in 1995. For the year ended December 31, 1996, the Company reported revenues of $39.7 million and a net loss, before non-recurring charge, of $6.8 million or $0.69 per share on 9,889,000 weighted average common shares outstanding. For the comparable period a year ago, the Company reported revenues of $10.5 million and a net loss of $1.7 million or $0.30 per share on 5,863,000 weighted average common shares outstanding. The substantial gain in revenues was due to increasing the number of residences operated in 1996 from 18 operated at the end of 1995 to 77 operated at the end of 1996 as a result of new facility construction and acquisitions completed throughout 1996. "Both our fourth-quarter and full-year financial results are in line with our expectations," 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). , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated. "We are pleased with our results. We had a very active year of construction and development, opening 21 new residences during the year. In the fourth quarter, we started construction of 14 new residences. At the same time, our same residence performance was very strong demonstrating our ability to manage effectively while achieving significant new residence growth," he said. "Additionally, in 1996, we put in place the infrastructure of people and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services to help us meet the increasing market need for professional assisted living health care services," he said. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Lasky, the Company expects to have started construction on an additional 19 residences during the current quarter of 1997. 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. RESIDENCES RESULTS For the quarter ended December 31, 1996 the Company had 34 stabilized residences. These facilities had an average occupancy for the quarter of 96%. For the three months ended December 31, 1996, these facilities reported revenues of $12.0 million and an operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of $4.9 million or 41%. The Company defines stabilized residences as facilities 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 21 residences which were stabilized for the entire fourth quarter of 1995 and 1996. For these residences, revenues for the three months ended December 31, 1996 were $9.2 million, a 10.8% increase over $8.3 million for the comparable period in 1995. Operating margin for the three month period ended December 31, 1996 was 43%, up from 42% for the comparable period in 1995. Average occupancy for these facilities increased to 96% for the quarter ended December 31, 1996, compared to 93% for the comparable period in 1995. DEVELOPMENT In the fourth quarter of 1996, 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. opened two Clare Clare, county (1991 pop. 90,918), 1,231 sq mi (3,188 sq km), W Republic of Ireland, between Galway Bay and the Shannon River. The county and Roman Catholic seat is Ennis. The terrain is broken and hilly, with many bogs and lakes; the coastline is especially rugged. Bridge facilities in Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , three Wynwood facilities in 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). and 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. , one Crossings facility in Idaho Idaho (ī`dəhō), one of the Rocky Mt. states in the NW United States. It is bordered by Montana and Wyoming (E), Utah and Nevada (S), Oregon and Washington (W), and the Canadian province of British Columbia (N). and five newly constructed WovenHearts facilities in Minnesota and 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 . These additions have a total resident capacity of 468 units. Accordingly, at the close of the quarter, the Company had 77 residences operating in eleven states. At the end of the year, the Company had 26 facilities under construction and 44 in development (i.e., the site is under control and development activities have commenced). "We feel the best way to meet market demand and be the dominant leader in the marketplace is to implement a strategy to meet varying consumer needs through our four different residence models," Lasky said. "Our current construction and development schedule and our growth in 1996 reflect this residence 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. strategy." ACQUISITIONS As previously announced, the Company completed an acquisition of four assisted living residences with a capacity of 120 residents in December, 1996. The Company also announced in February, 1997, that it has entered into an agreement to acquire interests in three upscale assisted living residences in 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 with a capacity of 313 residents. "Both of these acquisitions will add purposeful-built assisted living residences in our markets," Lasky said. CURRENT OPERATIONS Alternative Living Services is among the nation's largest operators of assisted living residences and currently operates 79 residences, with 3,275 units, in eleven states. Alternative Living Services offers four types of home-like residential models including the Clare Bridge residence for individuals with Alzheimer's disease Alzheimer's disease (ăls`hī'mərz, ôls–), degenerative disease of nerve cells in the cerebral cortex that leads to atrophy of the brain and senile dementia. and other dementias, the Wynwood residence for the 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. , the WovenHearts residence to serve the frail elderly in smaller, outlying out·ly·ing adj. Relatively distant or remote from a center or middle: outlying regions. outlying Adjective far away from the main area Adj. 1. communities and the Crossings residence, an apartment style residence. ALS currently operates in Wisconsin, Michigan, Minnesota, Florida, 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, and North Carolina with residences under construction and development in many of its existing markets as well as in New York, New Jersey and 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'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 CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands, Except Per Share Data)
Three Months Year
Ended Ended
_____ _____
December 31, December 31,
____________ ____________
1995 1996 1995 1996
____ ____ ____ ____
Revenue:
Resident service fees $2,711 $14,288 $9,684 $38,634
Other 360 274 780 966
___ ___ ___ ___
Operating revenue 3,071 14,562 10,464 39,600
Operating expenses:
Residence operations 2,324 9,473 7,207 25,710
Lease expense 232 2,165 889 6,053
General and admin. 828 2,383 2,599 7,933
Depr. and amort. 259 1,191 815 2,994
Non-recurring charge - - - 977
___ ___ ___ ___
Total oper. exp. 3,643 15,212 11,510 43,667
Operating loss (572) (650) (1,046) (4,067)
Other income (expense):
Int. expense, net (240) (989) (813) (3,740)
Other, net 439 (17) 439 (28)
Equity in income
(losses) of
unconsolidated
affiliates (418) 4 (438) (52)
Minority interest
in losses of
consolidated
subsidiaries 95 52 112 76
___ ___ ___ ___
Total other expense,
net (124) (950) (700) (3,744)
Net loss $(696) $(1,600) $(1,746) $(7,811)
______ _______ ________ ________
______ _______ ________ ________
Net loss per share $(0.09) $(0.12) $(0.30) $(0.79)
______ _______ ________ ________
______ _______ ________ ________
Weighted avg. shares
outstanding 7,799 12,967 5,863 9,889
______ _______ ________ ________
______ _______ ________ ________
ALTERNATIVE LIVING SERVICES, INC. AND SUBSIDIARIES
COMPARISON OF OPERATING AND START-UP COMMUNITIES
THREE MONTHS ENDED DECEMBER 31, 1996
(Unaudited)
(In Thousands, Except Per Share Data)
Three Months
Stabilized Start-up Ended
Residences(1) Residences(2) Overhead(3) 12/31/96
_____________ _____________ ___________ ___________
Revenue $12,007 $2,306 $249 $14,562
Community Oper.
Expenses 7,150 2,323 -- 9,473
_____ _____ _____ _____
Community Opr.
Income 4,857 (17) 249 5,089
Selling, General &
Administrative -- -- 2,383 2,383
Depr. and Amort. 559 505 127 1,191
Rent 1,986 66 113 2,165
_____ _____ _____ _____
Operating Income
(Loss) 2,312 (588) (2,374) (650)
Interest exp. net (826) (341) 178 (989)
Other Income (Exp) (9) 64 (16) 39
_____ _____ _____ _____
Net Income (Loss) $1,477 ($865) ($2,212) ($1,600)
_____ _____ _____ _____
_____ _____ _____ _____
Net Income (Loss)
Per Share $0.11 ($0.06) ($0.17) ($0.12)
_____ _____ _____ _____
_____ _____ _____ _____
Weighted Avg.
Common Shares 12,967 12,967 12,967 12,967
_____ _____ _____ _____
_____ _____ _____ _____
(1) Stabilized residences are those 34 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 29 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 7 residences and has minority interests in
7 unconsolidated facilities which it operates.
ALTERNATIVE LIVING SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In Thousands)
December 31, December 31,
1995 1996
___________ __________
ASSETS
Current Assets $3,336 $32,905
Property, plant and
equipment, net 27,289 79,548
Other assets 8,732 14,438
___________ __________
Total assets $39,357 $126,891
___________ __________
___________ __________
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $2,129 $19,186
Long-term obligations,
less current installments 17,275 28,613
Deferred gain on sale - 7,309
Minority interest 610 5,888
Stockholders' equity 19,343 65,895
___________ __________
Total liabilities and
stockholders' equity $39,357 $126,891
___________ __________
___________ __________
CONTACT: Alternative Living Services, Inc. Gary Kastel, 800/236-3454 |
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