American Retirement Corporation Announces Third 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)--Nov. 10, 1997--American Retirement Corporation (NYSE NYSE See: New York Stock Exchange :ACR See riser card. ) today announced its results for the third quarter and nine month period ended September September: see month. 30, 1997. Revenue for the quarter increased 18.0% to $23.6 million from $20.0 million for the third 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 20.7%, to $7.0 million from $5.8 million for the comparable period of the prior year. Net income for the quarter ended September 30, 1997 was $1.0 million, or $.09 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 income of $260,000, or $.03 per share, for the quarter ended September 30, 1996. The pro forma adjustment for the quarter ended September 30, 1996 provides for income taxes assuming that the Company's predecessor predecessor - parent partnership was subject to taxes. 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, "The major highlights of the quarter include financial results which are in line with consensus estimates; the continued expansion of our development pipeline; the successful completion of a $138 million offering of 5 3/4% convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. ; and shortly after the end of the quarter, the closing of the Imperial Plaza For the hotel in New York City, see . Plaza (IPA /'plaθa/ or /'plasa/ transaction." Revenue for the nine month period ended September 30, 1997 increased 24.1% to $68.0 million from $54.8 million for the corresponding period of last year. EBITDAR increased 20.7% to $19.8 million from $16.4 million for the comparable period of the prior year. Pro forma income, excluding a non-recurring tax charge, for the nine month period ended September 30, 1997 was $2.4 million, or $.23 per share, compared to pro forma income before extraordinary item of $2.0 million, or $.22 per share, for the nine months ended September 30, 1996. For purposes of same community analysis, the Company had twelve retirement communities with a resident capacity of 3,397 in operation during the third quarters of 1997 and 1996. 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 for these twelve communities increased to 94.9% in the third quarter of 1997 from 93.2% in the third quarter of 1996. Same community revenues for the comparable periods increased 16.0%, EBITDAR increased 21.0%, and income from operations increased 21.2%. Mr. Sheriff continued, "Our development pipeline at the time of our initial public offering included 21 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; three months later, our convertible debenture offering prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. identified 27; and currently there are 34 sites under development. Excluding any potential acquisitions, we expect to increase resident capacity through the completion of assisted living residences and expansion projects by 55 this quarter; 276 in the first quarter of 1998; and 456 in the second quarter of 1998. The October October: see month. 1 acquisition of Imperial Plaza, with its quality reputation and resident capacity of over 900, will allow us to begin development of our senior living network strategy in Richmond, Virginia Richmond IPA: [ɹɯʒmɐnɖ] is the capital of the Commonwealth of Virginia, in the United States. . Furthermore, the proceeds of our convertible debenture offering will enable us to lower our cost of capital while maintaining a flexible capital structure capable of proactively addressing opportunities in the rapidly expanding and changing senior living industry." The Company has entered into a definitive agreement to purchase a 136 unit retirement community. In addition to the existing units, the acquisition will include adjoining land and zoning rights to construct up to 40 assisted living units. While the acquisition is subject to certain conditions, the Company anticipates that it will close prior to November November: see month. 30, 1997. A letter of intent to purchase a home health agency has also been signed and a closing is anticipated this month. The agency will enable the Company to provide services to two of the Company's senior living markets in Corpus Christi Corpus Christi, in Christianity Corpus Christi [Lat.,=body of Christ], feast of the Western Church, observed on the Thursday after Trinity Sunday (or on the following Sunday). , TX and San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. , TX. The acquisition will replace an agency previously under management agreement that was affected by the recent moratorium A suspension of activity or an authorized period of delay or waiting. A moratorium is sometimes agreed upon by the interested parties, or it may be authorized or imposed by operation of law. on home health start-ups. 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 American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Retirement Corporation is a national senior living and health care service company providing a broad range of care and services to the elderly, including independent living, assisted living, skilled nursing, and home health care services. The Company currently operates 23 senior living communities in 12 states with an aggregate capacity of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 6,700 residents. The Company is constructing or developing 34 additional assisted living communities and expansion projects at eight of its owned or leased retirement communities, which in aggregate will add additional resident capacity of 3,700. The Company also owns ten home health care agencies and manages four others for third-parties. -0-
AMERICAN RETIREMENT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
Three Months Ended
------------------
Sept. 30, Sept. 30,
1997 1996
-------- --------
Revenues:
Resident and health care revenue $23,146 $19,639
Management services revenue 497 389
-------- --------
Total revenues 23,643 20,028
Expenses:
Community operating expenses 14,708 12,518
Lease expense (net) 653 ---
General and administrative 1,971 1,741
Depreciation and amortization 1,685 1,802
-------- --------
Total operating expenses 19,017 16,061
-------- --------
Income from operations 4,626 3,967
Other income (expense):
Interest expense (3,391) (3,610)
Interest income 421 121
Other 4 (56)
-------- --------
Other income (expense), net (2,966) (3,545)
-------- --------
Income before income taxes 1,660 422
Income tax expense - current 47 ---
Income tax expense - deferred 576 ---
-------- --------
Net income (loss) 1,037 422
Preferred return on special redeemable
preferred limited partnership interests --- 195
-------- --------
Net income (loss) available for
distribution to partners and shareholders $1,037 $227
======== ========
Earnings per share $0.09 ---
======== ========
Shares used in computing earnings
per share data 11,584 9,375
======== ========
Pro forma earnings data:
Income before income taxes, as reported $422
Pro forma income tax expense 160
--------
Pro forma income 262
Preferred return on special redeemable
preferred partnership interests 195
--------
Pro forma income available for distribution
to partners and shareholders $67
========
Pro forma earnings per common share:
Pro forma income
Preferred return on special redeemable
preferred limited partnership interests 0.02
--------
Pro forma income available for distribution
to partners and shareholders $0.01
========
AMERICAN RETIREMENT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
Nine months ended
------------------
Sept. 30, Sept. 30,
1997 1996
-------- --------
Revenues:
Resident and health care revenue $66,570 $53,527
Management services revenue 1,462 1,308
-------- --------
Total revenues 68,032 54,835
Expenses:
Community operating expenses 42,227 34,245
Lease expense (net) 1,725 ---
General and administrative 6,041 4,161
Depreciation and amortization 4,891 4,967
-------- --------
Total operating expenses 54,884 43,373
-------- --------
Income from operations 13,148 11,462
Other income (expense):
Interest expense (10,002) (8,343)
Interest income 785 253
Other (56) (65)
-------- --------
Other income (expense), net (9,273) (8,155)
-------- --------
Income before income taxes and
extraordinary item 3,875 3,306
Income tax expense - current 139 0
Income tax expense - deferred 11,304 0
-------- --------
Income (loss) before extraordinary item (7,568) 3,306
Extraordinary loss on extinguishment of debt --- 2,335
-------- --------
Net income (loss) ($7,568) $971
======== ========
Preferred return on special redeemable
preferred limited partnership interests --- 909
-------- --------
Net income (loss) available for
distribution to partners and shareholders ($7,568) $62
======== ========
Pro forma earnings data:
Income before income taxes and
extraordinary item $3,874 $3,306
Pro forma income tax expense 1,472 1,256
-------- --------
Pro forma income before extraordinary item 2,402 2,050
Preferred return on special redeemable
preferred partnership interests --- 909
-------- --------
Pro forma income before extraordinary item
available for distribution to partners and
shareholders 2,402 $1,141
======== ========
Pro forma earnings per common share:
Pro forma income before extraordinary item $0.23 $0.22
Preferred return on special redeemable
preferred limited partnership interests --- 0.10
-------- --------
Pro forma income before extraordinary item
available for distribution to partners and
shareholders $0.23 $0.12
======== ========
Shares used in computing pro forma earnings
per share data 10,459 9,375
======== ========
CONTACT: American Retirement Corp., 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 |
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