Alterra Announces Fiscal 2002 Results.Business Editors/Health/Medical Writers MILWAUKEE--(BUSINESS WIRE)--March 31, 2003 Alterra Healthcare Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ATHC ATHC Access to Health Care .PK) today announced financial results for the year ended December December: see month. 31, 2002. At year-end the Company operated or managed 383 residences with a total capacity to serve approximately 18,200 residents. FISCAL 2002 RESULTS The Company reported revenues of $416.7 million for the year ended December 31, 2002, a 3.9% decrease over revenues of $433.4 million for 2001. The Company's pre-tax loss from operations for 2002 was $65.7 million (excluding $29.1 million of gain on disposal and lease termination, $14.3 million of 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. losses, and $8.4 million in 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). costs). The pre-tax loss for 2002 includes $56.6 million of non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) including depreciation, amortization and payment-in-kind ("PIK PIK See: Payment-in-kind bond PIK See payment-in-kind security (PIK). ") interest expense. The Company's net loss for 2002 was $222.0 million, which reflects the impact of asset dispositions, impairment losses, restructuring costs, and losses reflected as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and a cumulative effect of change in accounting principle. In the fourth quarter of 2002, the Company's residence level operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: were 30.6% (excluding $9.3 million of additional insurance reserves recorded in the fourth quarter), a decrease of 3.3% from residence level operating margins in the fourth quarter of 2001. Monthly rates averaged $2,831 for the quarter ended December 31, 2002, an increase of 4.8% over the average monthly rate for the December 2001 quarter. In addition, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. (excluding costs related to the Company's restructuring activities) declined from $11.5 million in the December 2001 quarter to $9.9 million in the quarter ended December 2002, or 7.6% of total residence revenue. For the three months ended December 31, 2002, the Company reported overall average occupancy of 83.6%. CHAPTER 11 BANKRUPTCY bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most AND RESTRUCTURING ACTIVITIES In March of 2001 the Company commenced efforts to implement a restructuring plan, the principal components of which include the disposition of selected assets and the comprehensive restructuring of its capital structure. Restructuring discussions with various senior capital structure constituents commenced in 2001 and are ongoing. While certain binding restructuring arrangements have been executed, negotiations with respect to all of the Company's secured debt and lease arrangements have not been concluded. As previously announced, on January 22, 2003, the Company filed a voluntary petition with the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the District of 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 "Bankruptcy Court") to reorganize re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. under Chapter 11 of the Bankruptcy Code Bankruptcy Code may refer to:
A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. obligations and claims, convertible subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before and preferred and common stock. In conjunction with the Chapter 11 Filing, the Company secured a $15.0 million debtor-in-possession credit facility from affiliates of certain principal holders of the Company's pay-in-kind securities issued in the summer of 2000. The Bankruptcy Court issued an order approving borrowing up to $6.5 million under the DIP credit facility on an interim basis on January 24, 2003. Final Bankruptcy Court approval of the Company's DIP credit facility is expected in April of 2003. On March 27, 2003, the Company filed its Plan of Reorganization and its Disclosure Statement Accompanying Plan of Reorganization with the Bankruptcy Court. Immediately prior to the filing of the Plan and Disclosure Statement, the Company filed a motion with the Bankruptcy Court seeking approval of bidding procedures with respect to the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual and selection of a transaction contemplating either (i) the sale of capital stock of the reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. Alterra to be effective and funded upon the confirmation and effectiveness of the Company's bankruptcy plan or (ii) the sale, as a going concern, of all or substantially all of the assets of Alterra to be effective and funded upon the confirmation and effectiveness of the Company's bankruptcy plan. Alterra offers supportive and selected healthcare 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 freestanding free·stand·ing adj. Standing or operating independently of anything else: a freestanding bell tower; a freestanding maternity clinic. Alzheimer's/ memory care residences. Alterra currently operates in 24 states. FORWARD LOOKING STATEMENTS Certain of the information contained herein should be considered "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. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 that reflect the Company's current views with respect to certain current and future events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's operations and business environment which may cause the actual results of the Company to be materially different from any future results expressed or implied in such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the Company to satisfy its operating and capital needs during the pendency Pend´en`cy n. 1. The quality or state of being pendent or suspended. 2. The quality or state of being undecided, or in continuance; suspense; as, the pendency of a suit s>. of its bankruptcy case; the Company's ability to successfully negotiate necessary modifications and amendments with its secured lenders and lessors; the Company's ability to access financing needed to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. significant pending debt maturities; the ability of the Company to continue as a going concern; the ability of the Company to develop, prosecute To follow through; to commence and continue an action or judicial proceeding to its ultimate conclusion. To proceed against a defendant by charging that person with a crime and bringing him or her to trial. , confirm and consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. a Chapter 11 plan of reorganization; the Company's ability to identify and consummate a liquidity transaction in connection with its bankruptcy case providing net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). in amounts necessary to effectively address the projected capital and liquidity needs of the Company; risks associated with third parties seeking and obtaining court approval for the appointment of a Chapter 11 trustee or to convert the Company's bankruptcy case to a Chapter 7 liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy ; the potential adverse impact of the Company's Chapter 11 filing on the Company's relationships with its residents, vendors and employees; competition and the ability of the Company to attract private pay residents to its residences; the Company's ability to fund and maintain self insurance programs at levels necessary to address potential liability claims and satisfy the requirements of lenders and lessors; government legislation and regulation; and other risks and uncertainties as may be set forth from time to time in the Company's reports filed with the Securities and Exchange Commission.
ALTERRA HEALTHCARE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In Thousands, Except Per Share Data)
Three Months Twelve Months Ended
Ended December 31, December 31,
------------------ --------------------
2002 2001 2002 2001
---------------------------------------
Revenue:
Resident service fees $104,071 $107,029 $413,553 $427,259
Other 522 1,189 3,162 6,152
------------------ --------------------
Operating revenue 104,593 108,218 416,715 433,411
Operating expenses:
Residence operations 81,512 70,719 287,434 290,713
Lease expense 14,770 14,766 58,658 61,866
Gain on lease termination -- -- (6,204) --
Lease income (1,872) (4,648) (13,755) (21,336)
General and administrative 11,843 13,204 46,541 48,881
(Gain) loss on disposal (6,126) 2,847 (22,914) 189,287
Depreciation and amortization 6,592 8,802 25,766 34,535
Non-recurring charge -- 934 -- --
Impairment charge 4,773 -- 4,773 --
------------------ --------------------
Total operating expenses 111,492 106,624 380,299 603,946
Operating income (6,899) 1,594 36,416 (170,535)
Other expense:
Interest expense, net (12,263) (14,293) (50,556) (62,029)
Amortization of financing
costs (759) (2,165) (4,967) (9,786)
PIK interest (6,558) (6,073) (25,824) (24,303)
Equity in losses of
unconsolidated affiliates (541) (1,506) (4,856) (14,338)
Minority interest in profits
of consolidated subsidiaries -- 195 -- 426
Goodwill impairment loss (9,487) -- (9,487) --
------------------ --------------------
Total other expense, net (29,608) (23,842) (95,690) (110,030)
Loss from continuing operations
before income taxes and
cumulative effect of change in
accounting principle (36,507) (22,248) (59,274) (280,565)
Income tax expense (10) (30) (100) (120)
------------------ --------------------
Loss from continuing operations
before cumulative effect of
change in accounting principle (36,517) (22,278) (59,374) (280,685)
Gain (loss) on discontinued
operations (14,852) (4,993) (116,762) (19,242)
Cumulative effect of change in
accounting principle -- -- (45,866) --
------------------ --------------------
Net loss $(51,369)$(27,271) $(222,002)$(299,927)
================== ====================
Loss per common share - basic
and diluted:
Loss from continuing
operations before
cumulative effect of change
in accounting principle -
basic and diluted $(1.64) $(1.00) $(2.67) $(12.65)
Gain (loss) on discontinued
operations - basic and
diluted (0.67) (0.23) (5.24) (0.87)
Cumulative effect of change
in accounting principle -
basic and diluted -- -- (2.06) --
------------------ --------------------
Net loss per common share -
basic and diluted $(2.31) $(1.23) $(9.97) $(13.52)
================== ====================
Weighted average common shares
outstanding - basic and
diluted 22,266 22,192 22,266 22,192
=======================================
ALTERRA HEALTHCARE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In Thousands)
December December
31, 31,
2002 2001
--------- -----------
ASSETS
Cash $13,797 $19,996
Assets held for sale 57,243 88,166
Other current assets 35,063 42,385
--------- -----------
Current assets 106,103 150,547
--------- -----------
Land 61,490 65,660
Building and improvements 444,881 659,955
Furniture, fixtures and equipment 88,458 88,271
--------- -----------
Total property and equipment 594,829 813,886
Less: accumulated depreciation (102,704) (86,470)
--------- -----------
Property and equipment, net 492,125 727,416
Other assets 72,922 160,237
--------- -----------
Total assets $671,150 $1,038,200
========= ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $980,289 $1,211,292
Long-term obligations, less current installments 171,510 82,752
Deferred gain on sale and other 2,147 5,593
Redeemable preferred stock 6,132 5,489
--------- -----------
Stockholders' deficit (488,928) (266,926)
--------- -----------
Total liabilities and stockholders' deficit $671,150 $1,038,200
========= ===========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion