American Retirement Corporation Announces First Quarter Results.NASHVILLE Nashville, city (1990 pop. 487,969), state capital, coextensive with Davidson co., central Tenn., on the Cumberland River, in a fertile farm area; inc. as a city 1806, merged with Davidson co. 1963. , Tenn.--(BUSINESS WIRE)--April 28, 1998--American Retirement Corporation (NYSE NYSE See: New York Stock Exchange :ACR See riser card. ) today announced its results for the quarter ended March 31, 1998. Revenue for the quarter ended March 31, 1998 increased 30.5%, to $28.1 million from $21.5 million for the first quarter of last year. For the quarter, earnings before interest, taxes, depreciation, amortization and rents (EBITDAR Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring Costs - EBITDAR An indicator of a company's financial performance calculated as: = Revenue - Expenses (excluding tax, interest, depreciation, amortization, and restructuring costs) ) increased 44.7%, to $9.0 million from $6.2 million for the comparable period of the prior year. Net income for the quarter ended March 31, 1998 was $1.5 million, or $0.13 per share, compared to pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income of $594,000, or $0.06 per share, for the same period in 1997. The pro forma adjustment for the quarter ended March 31, 1997 provides for income taxes as though the Company's predecessor partnership had been subject to corporate income taxes. For the purposes of Same Community analysis, the Company had twelve retirement communities in operation during the first quarter of 1998 and 1997. Resident capacity was 3,529 and 3,397 for the quarter ended March 31, 1998 and 1997, respectively. Average occupancy for these twelve communities was 94% for both quarters, including the effect of the fill-up fill-up n. The act or an instance of filling up something, especially a gasoline tank: offered a free car wash with each fill-up. of a 127-unit expansion at one of the communities that opened during the first quarter of 1998. Same Community revenues and EBITDAR increased 5.0% and 4.3%, respectively, over the comparable period. The Company's home health operations, which constituted 6.0% of Same Community revenues for the quarter ended March 31, 1998, were negatively impacted by recent changes in Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. . Excluding the results from home health and companion services, Same Community revenues and EBITDAR increased 6.0% and 8.3%, respectively, over the comparable period. W.E. Sheriff, the Company's chairman 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. , remarked, "We are pleased to announce strong operating results that are on track with expectations. Operating highlights of the quarter included the successful integration of Imperial Plaza, leased by the Company in October October: see month. 1997, including the opening of an expansion and acquisition of an on-site on-site adj. Done or located at the site, as of a particular activity: on-site monitoring of a production run; an on-site film shoot. pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. , and the opening and quick initial fill-up of an $11.0 million expansion of Santa Catalina Santa Catalina (săn`tə kăt'əlē`nə) or Catalina Island, S Calif., one of the Santa Barbara Islands, off Huntington Beach, Calif. It is a resort island, 22 mi (35 km) long and 1 to 8 mi (1.6–12. Villas. Our development pipeline continues to grow, and we currently have three expansions and 14 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 under construction, representing a total cost of approximately $175 million. And we are also seeing a marked increase in the level of our acquisition activity, as well as an increase in the quality of potential acquisition assets." This press release contains forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions 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. These 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. may be affected by certain risks and uncertainties described in the Company's filings with the Securities and Exchange Commission. The Company's actual results could differ materially from such forward-looking statements. American Retirement Corporation is a national senior living and health care services company providing a broad range of care and services to seniors, including independent living, assisted living, skilled nursing, and home health care services. The Company currently operates 25 senior living communities in 12 states with an aggregate capacity for approximately 7,200 residents. The Company is constructing or developing 36 additional assisted living communities and expansion projects at five of its retirement communities, which in aggregate will add capacity for approximately 3,600 residents. The Company also owns eleven home health care agencies and manages four others for third-parties. -0-
AMERICAN RETIREMENT CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(in thousands, except per share data)
Three Months Ended
-----------------------------
March 31, 1998 March 31, 1997
-------------- --------------
Statement of Operations Data:
Revenues:
Resident and health care revenue $26,398 $20,982
Management services and other revenue 1,679 528
---------- ----------
Total revenues 28,077 21,510
Expenses:
Community operating expenses 17,018 13,399
Lease expense (net) 1,685 528
General and administrative 2,053 1,886
Depreciation and amortization 1,974 1,585
---------- ----------
Total operating expenses 22,730 17,398
---------- ----------
Income from operations 5,347 4,112
Other income (expense):
Interest expense (3,578) (3,257)
Interest income 627 150
Other (26) (30)
---------- ----------
Other income (expense), net (2,977) (3,137)
Income before income taxes 2,370 975
Income tax expense 853 ---
---------- ----------
Net income $1,517 $975
========== ==========
Basic earnings per share $0.13
==========
Diluted earnings per share $0.13
==========
Pro forma earnings data:
Income before income taxes, as reported $975
Pro forma income tax expense 381
----------
Pro forma income $594
==========
Pro forma basic earnings per share $0.06
==========
Pro forma diluted earnings per share $0.06
==========
Weighted average shares used
Basic earnings per share 11,421 9,375
Common stock equivalents 212 ---
---------- ----------
Diluted earnings per share 11,633 9,375
========== ==========
----------------------------------------------------------------------
At March 31,
--------------------------
1998 1997
---------- ----------
Balance Sheet Data:
Cash and cash equivalents $29,050 $8,854
Working capital 36,726 1,651
Land, building and equipment, net 240,643 192,302
Total assets 317,177 214,156
Long-term debt, including current portion 239,834 154,379
Partners' and shareholders' equity 55,437 36,357
CONTACT: American Retirement Corporation, Nashville Bill Sheriff, 615/221-2259 or George Hicks George Hicks (13 May 1879 in – 19 July 1954) was a British trades unionist and Labour Party politician. Hicks was born in 1879 in Venham Dean, Hampshire. Along with fellow bricklayers Jack Fitzgerald and F. K. , 615/221-2260 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion