American Retirement Corporation Reports First Quarter 2006 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. -- 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 (NYSE NYSE See: New York Stock Exchange : ACR See riser card. ): --Reported diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $.14 for the quarter, including $.03 of non-cash equity compensation. --Community revenue increased 10% and community operating contribution increased 16% over the prior year's first quarter. --For the first quarter, free cash flow was $10.8 million, an increase of 300% versus the prior year. --Completed or announced $271 million of transactions - one transaction involving 4 communities completed during the first quarter, another acquisition of 2 communities completed at the beginning of the second quarter and another community to be purchased during the second quarter. American Retirement Corporation (NYSE: ACR) today reported first quarter 2006 diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings of $.14 per share, compared with $.09 per share for the prior year's first quarter. Bill Sheriff, Chairman, 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. of the company, commented, "Our operations had a very good first quarter by all measures. Our same community results showed an 8% increase in revenues and a 15% increase in operating contribution. Occupancies remained strong with our 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. portfolio reaching over 92%. Monthly revenue per unit continued to increase and, at the same time, we controlled operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. to produce record levels of operating contribution per unit - well above the industry average. We accomplished this despite the lack of clarity Clarity is the property of being clear or transparent. Clarity can refer to one's ability to clearly visualize an object or concept, as in thought, understanding, and the "mind's eye", as well as the traditional notion of visual perception, that is, with the regarding therapy caps early in the period, which dampened our ancillary revenue Ancillary Revenue Revenue generated from goods or services that differ from or enhance the main services or product lines of a company. By introducing new products and services or using existing products to branch into new markets, companies create additional opportunities for in the beginning of the first quarter - although the volume was close to targeted levels by the end of the quarter." "We also had a good start for the year regarding our growth strategy," he added. "We acquired the four Town Village communities during the quarter, which are in targeted strategic markets. We added a continuum Continuum (pl. -tinua or -tinuums) can refer to:
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 that we expect to close before the end of the second quarter. We believe this acquisition will fit well with our current portfolio in the Tampa Tampa (tăm`pə), city (1990 pop. 280,015), seat of Hillsborough co., W Fla., a port of entry with an impressive harbor on Tampa Bay; inc. 1855. area and will be accretive. Additionally, we now have three of the eventual seven joint venture pharmacies This article is a list of major pharmacies (also known as chemists and drugstores) by country. Australia Pharmacies in Australia are mostly independently-owned by pharmacists, often operated as franchises of retail brands offered by the three major started and, though we incurred about $.01 per share of start-up Start-up The earliest stage of a new business venture. costs in the quarter, we are very excited about their prospects. We also made progress on the start-up of home health agencies in seven of our markets and on our various development projects." (All references to growth rate percentage compare the results of the current period to the prior year comparable period). Financial Highlights --$131 million of total revenue for the first quarter of 2006, an 11% increase. --Net income of $5 million ($.14 per diluted share) for the first quarter of 2006 versus $3 million ($.09 per diluted share) for the first quarter of 2005. --Community operating contribution from the company's three business segments of $46 million for the first quarter, an increase of 17%. --First quarter 2006 income from operations of $10 million, a 51% increase. --Completed equity offering of $90 million. Operational Highlights --Occupancy was 94%, with the company's large retirement communities ending the quarter at 95% and the 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 assisted living communities ending at 92%. --Same community results showed an 8% increase in revenue and a 15% increase in operating contribution for the year. --Retirement Center communities produced a 7% increase in average monthly revenue per occupied oc·cu·py tr.v. oc·cu·pied, oc·cu·py·ing, oc·cu·pies 1. To fill up (time or space): a lecture that occupied three hours. 2. To dwell or reside in. 3. unit and an 11% increase in monthly operating contribution per occupied unit. --Free-standing assisted living communities produced a 9% increase in average monthly revenue per occupied unit and a 24% increase in monthly operating contribution per occupied unit. Operating Review The company operates in three business segments: --The Retirement Centers ("Retirement Centers") include CCRCs (continuing care continuing care a professional convention that a veterinarian who is treating an animal is obliged to continue treating that case unless an arrangement is made with its custodian to transfer the care to another practitioner or to a specialist. retirement centers), Entrance-Fee Communities ("EF Communities") and congregate con·gre·gate tr. & intr.v. con·gre·gat·ed, con·gre·gat·ing, con·gre·gates To bring or come together in a group, crowd, or assembly. See Synonyms at gather. adj. 1. Gathered; assembled. 2. living residences. --Free-standing assisted living communities ("Free-standing AL's") are smaller than Retirement Centers and provide assisted living and specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. care such as Alzheimer's Noun 1. Alzheimer's - a progressive form of presenile dementia that is similar to senile dementia except that it usually starts in the 40s or 50s; first symptoms are impaired memory which is followed by impaired thought and speech and finally complete helplessness and memory enhancement programs. --The Management Services segment includes fees from management agreements for communities owned by others and joint ventures, development fees and reimbursed expenses. For the first quarter of 2006, the results for the company's three operating segments were as follows:
Three months ended:
Mar. 31,
-------------------- $ %
2006 2005 Change Change
------------------------------- -------- -------- -------- --------
Resident & Healthcare revenue $127,786 $116,653 11,133 9.5%
------------------------------- -------- -------- ------- --------
Community operating expense $ 83,454 $ 78,301 5,153 6.6%
------------------------------- -------- -------- ------- --------
Community operating
contribution(1) $ 44,332 $ 38,352 5,980 15.6%
------------------------------- -------- -------- ------- --------
Community contribution margin 34.7% 32.9%
------------------------------- -------- -------- -------- --------
Management Services op.
contribution $ 1,224 $ 500 724 144.8%
------------------------------- -------- -------- ------- --------
(1) The company evaluates the performance of its business
segments primarily based upon their operating contributions,
which the company defines as revenue from the segment less
operating expenses, excluding depreciation, associated with
that segment.
Retirement Centers Segment The company's 29 Retirement Centers exhibited strong increases in revenue and operating contribution for the first quarter of 2006 as follows:
Retirement Centers ($ in 000's):
-------------------------------------- Three months ended:
Mar. 31,
------------------------------------------------------ $ %
2006 2005 Change Change
-------------------------------------- ------- -----------------------
Resident & Healthcare revenue $98,606 $91,046 $ 7,560 8.3%
-------------------------------------- ------- ------- ---------------
Community operating contribution $34,255 $30,592 $ 3,663 12.0%
-------------------------------------- ------- ------- ---------------
Community contribution margin 34.7% 33.6%
-------------------------------------- ------- -----------------------
% Ending Occupancy 95% 95%
-------------------------------------- ------- -----------------------
The Retirement Center segment continued to produce strong revenue gains. --Average 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 was 96%, up from first quarter 2005's 95%. --Ending occupancy was 95%, level with the first quarter of 2005, with 97% occupancy in the independent living, 95% in the assisted living and 91% in the skilled nursing components of the segment. --Average monthly revenue per occupied unit increased 7% during the quarter versus the prior year to $3,815 - due to increases in monthly service fees and per diem per diem adj. or n. Latin for "per day," it is short for payment of daily expenses and/or fees of an employee or an agent. rates in skilled nursing, turnover of residents (the "Mark-to-Market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. " effect of reselling or reletting units at higher current rates) and increased ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. services, primarily driven by the company's Innovative Senior Care therapy, education and wellness programs. The operating contribution for Retirement Centers was $34 million for the first quarter of 2006. This represented a $4 million or 12% increase over the prior year's first quarter. The Retirement Centers continue to produce increased monthly operating contribution per occupied unit, attaining $1,325 per unit in the first quarter of 2006, an 11% improvement from the prior year's first quarter. For the first quarter of 2006, 48% of the incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenue from the Retirement Center segment fell to operating contribution. Free-standing AL's Segment The company's 32 Free-standing AL's exhibited strong increases in revenue and operating contribution for the first quarter of 2006 as follows:
Free-standing AL's ($ in 000's)(1):
-------------------------------- Three months ended:
Mar. 31,
------------------------------------------------------- $ %
2006 2005 Change Change
-------------------------------- -------------- ------- ------ ------
Resident & Healthcare revenue $ 29,180 $25,607 3,573 14.0%
-------------------------------- -------------- ------- ------ ------
Community operating
contribution $ 10,077 $ 7,760 2,317 29.9%
-------------------------------- -------------- ------- ------ ------
Community contribution margin 34.5% 30.3%
-------------------------------- -------------- ------- ------ ------
% Ending Occupancy 92% 90%
-------------------------------- -------------- ------- ------ ------
(1) Includes results of 32 Free-standing AL's and excludes
nine non-consolidated Free-standing AL's held in joint
ventures.
The revenue increase in the Free-standing AL segment of 14% to $29 million was driven by the following factors: --Average occupancy for the Free-standing AL portfolio was 92% for the first quarter, up from 89% a year ago and up from 91% in the fourth quarter of 2006. --The average monthly revenue per occupied unit increased 9% to $3,666, up from $3,364 per month in the first quarter of 2005. The revenue per occupied unit increase was due to rate increases, reduced promotional allowances, increased care services and turnover of residents (the "Mark-to-Market" effect of reletting units at higher current rates). --The increased use of ancillary services, particularly Innovative Senior Care therapy, education and wellness services, also contributed significantly to the revenue increase for this segment. The operating contribution for Free-standing AL's was $10.1 million for the first quarter of 2006, a $2 million or 30% increase over the prior year's first quarter. The Free-standing AL's continue to increase the monthly operating contribution per occupied unit, reaching $1,266 per unit in the first quarter of 2006, a 24% improvement from the prior year's first quarter. For the first quarter of 2006, 65% of the incremental revenue from the Free-standing AL segment fell to operating contribution. Management Services Segment The Management Services segment had an operating contribution of $1.2 million in the first quarter of 2006, an increase of $.7 million. The company's Management Services business segment includes management contracts on six third party managed communities (6 Retirement Centers), management contracts on 13 communities owned in joint venture structures (4 Retirement Centers and 9 Free-standing AL's) and development fees on development projects for third parties and joint ventures. Financial Review Revenues for the quarter increased 11% to $131 million versus the prior year quarter, reflecting the increased average occupied units, the incremental rate increase from the Mark-to-Market effect for new residents, rate increases to existing residents and increased ancillary services. Ancillary services revenue was over $21 million for the quarter, up from $18 million a year ago. Ancillary services revenue currently comprises 16% of total revenue. Community operating expenses increased 6% for the quarter versus the prior year period, while community revenue increased 10%, evidencing good cost control in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite an increase in utility costs. General and administrative expenses increased $3 million from the first quarter of 2005 as a result of $1.6 million of non-cash compensation expense and the growth of the Company's business. Net income for the first quarter of 2006 was $5 million or $.14 per diluted share, compared with $3 million or $.09 per share for the prior year's first quarter. Free cash flow was $10.8 million for the first quarter, versus $2.7 million for the first quarter of 2005. 2006 Earnings Outlook The company expects to report net earnings per diluted share for 2006 in a range of $.69 to $.72 per diluted share, which includes an estimated $.12 of share-based, non-cash compensation expense. This guidance includes the impact of previously announced transactions, but does not include the impact of potential future acquisitions. Conference Call Information American Retirement Corporation will hold a conference call with Bill Sheriff, Chairman, President and Chief Executive Officer, and Bryan Bryan, city (1990 pop. 55,002), seat of Brazos co., E central Tex.; inc. 1872. Settled in the early 19th cent. in an area of large plantations, Bryan was long a cotton center. Richardson Richardson, city (1990 pop. 74,840), Dallas and Collins counties, N Tex., a suburb of Dallas; founded in the 1850s, inc. as a city 1956. Richardson manufactures telecommunications equipment, medical devices, supercomputers, computer chips, and fiber optics. , Chief Financial Officer, to discuss the company's 2006 first quarter results and the other matters described above. The call will be held Thursday Thursday: see week. , May 4, 2006 at 11:00 a.m. ET (10:00 a.m. Central) and parties may participate by either calling (877) 252-6354 or through the company's website at www.arclp.com. Click on the broadcast icon to listen to the earnings call - Windows Media Player Digital jukebox software for Windows from Microsoft that plays a variety of audio, video and streaming formats including MP3, WMA, CD audio and MIDI. Starting with Version 6.2 in 1999, the Windows Media Rights Manager was added for securing copyrighted content. (TM) is required to listen to this webcast. In addition, the call will be archived on the company's website until the next regularly scheduled earnings conference call. If any material information is disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). on the conference call that has not been previously disclosed publicly, that information will also be available at the Investors Welcome portion of the company's website. Additional Filings The company will file on or about May 4, 2006 a Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. with the SEC which includes supplemental information relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the company's first quarter 2006 results. This filing will also be available through the Investors Welcome section of the company's website - www.arclp.com. Company Profile American Retirement Corporation is a national senior living and health care services provider offering a broad range of care and services to seniors, including independent living, assisted living, skilled nursing and Alzheimer's care. Established in 1978, the company believes that it is a leader in the operation and management of senior living communities, including independent living communities, continuing care retirement communities, Free-standing AL's, and the development of specialized care programs for residents with Alzheimer's and other forms of 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. . The company's operating philosophy is to enhance the lives of seniors by striving to provide the highest quality of care and services in well-operated communities designed to improve and protect the quality of life, independence, personal freedom, privacy, spirit, and dignity Dignity See also Noblemindedness. cherub celestial being symbolizing dignity, glory, and honor. [Heraldry: Halberts, 23] cloves symbolic of stateliness. [Plant Symbolism and Folklore: Jobes, 350] dahlia symbol of dignity. of its residents. The company currently operates 82 senior living communities in 19 states, with an aggregate unit capacity of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 15,200 units and resident capacity of approximately 17,100. The company owns 33 communities (including 13 communities in joint ventures), leases 43 communities, and manages six communities pursuant to management agreements. Approximately 83% of the company's revenues come from private pay sources. Risks of Forward Looking Statements Statements contained in this press release and statements made by or on behalf of American Retirement Corporation relating hereto here·to adv. To this document, matter, or proposition. hereto Adverb Formal or law to this place, matter, or document Adv. 1. may be deemed to constitute 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. 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. Those forward-looking statements include all statements that are not historical statements of fact and those regarding the intent, belief or expectations of the company or its management, including, without limitation, all statements regarding the company's future earnings and results of operations and future share-based compensation expenses, all statements regarding the financial effects of recently completed acquisitions, and all statements regarding potential acquisitions and planned expansions and development. These forward-looking statements may be affected by certain risks and uncertainties, including without limitation the following: (i) the risk associated with the company's debt and lease obligations, (ii) the company's ability to sell its entrance fee units and to increase occupancy at the company's communities, (iii) the risk that the company will be unable to improve the company's results of operations, increase cash flow and reduce expenses, (iv) the risks associated with adverse market conditions of the senior housing industry and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. home resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. market and economy in general, (v) the risk that the company is unable to obtain liability insurance in the future or that the costs thereof (including deductibles) will be prohibitive pro·hib·i·tive also pro·hib·i·to·ry adj. 1. Prohibiting; forbidding: took prohibitive measures. 2. , (vi) the company's ability to obtain new financing or extend and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. modify existing debt, (vii) the risk that the company will not be able to successfully integrate acquired communities into the company's operations, (viii) the risk of changes in government reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. programs including caps on therapy reimbursements, (ix) the risk that the company will be unable to locate acquisition opportunities at prices that the company deems acceptable or to successfully complete planned expansions and developments of new units, (x) the company's ability to derive de·rive v. 1. To obtain or receive from a source. 2. To produce or obtain a chemical compound from another substance by chemical reaction. expected financial results from new developments and expansions and (xi) the risk factors described in the company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2005 under the caption "Risk Factors" and in the company's other filings with the SEC. In light of the significant uncertainties inherent in the forward-looking statements included herein, the company's actual results could differ materially from such forward-looking statements. The company does not undertake any obligation to publicly release any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to any forward-looking statements contained herein to reflect events and circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or occurring after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unanticipated events.
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
Three months ended Increase
March 31, (Decrease)
---------------------- ----------------
2006 2005 $ %
-------- ----------- ------- -------
Revenues:
Resident and health care $127,786 $ 116,653 $11,133 9.5%
Management services 1,224 500 724 144.8%
Reimbursed expenses 2,083 802 1,281 159.7%
-------- ----------- ------- -------
Total revenues 131,093 117,955 13,138 11.1%
Operating expenses:
Cost of community service
revenue, exclusive of
depreciation 83,454 78,301 5,153 6.6%
Lease expense 15,333 15,510 (177) -1.1%
Depreciation and
amortization, inclusive of
general and administrative
depreciation and
amortization of $364 and
$943 9,407 9,271 136 1.5%
Amortization of leasehold
acquisition costs 592 699 (107) -15.3%
Loss on sale of assets 84 12 72 600.0%
Reimbursed expenses 2,083 802 1,281 159.7%
General and administrative 9,942 6,591 3,351 50.8%
-------- ----------- ------- -------
Total operating expenses 120,895 111,186 9,709 8.7%
-------- ----------- ------- -------
Income from operations 10,198 6,769 3,429 50.7%
Other income (expense):
Interest expense (4,270) (3,557) (713) -20.0%
Interest income 1,626 720 906 125.8%
Other (214) 139 (353) -254.0%
-------- ----------- ------- -------
Other expense, net (2,858) (2,698) (160) -5.9%
-------- ----------- ------- -------
Income before income taxes
and minority interest 7,340 4,071 3,269 80.3%
Income tax expense 2,714 1,375 1,339 -97.4%
-------- ----------- ------- -------
Income from continuing
operations before
minority interest 4,626 2,696 1,930 71.6%
Minority interest in (earnings)
losses of consolidated
subsidiaries, net of tax 176 (71) 247 347.9%
-------- ----------- ------- -------
Net income $ 4,802 $ 2,625 $ 2,177 82.9%
======== =========== ======= =======
Basic income per share $ 0.14 $ 0.09
======== ===========
Diluted income per share $ 0.14 $ 0.09
======== ===========
Weighted average shares used
for basic earnings per share
data 33,798 28,899
Effect of dilutive common stock
options 1,098 1,801
-------- -----------
Weighted average shares used
for diluted earnings per share
data 34,896 30,700
======== ===========
----------------------------------------------------
March 31, December 31,
2006 2005
-------- -----------
Selected Balance Sheet Data:
Cash and cash equivalents $ 84,245 $ 40,771
Restricted cash 32,570 28,435
Working capital deficit (31,830) (90,509)
Land, buildings and
equipment, net 558,257 551,298
Total assets 945,081 879,474
Long-term debt, including
current portion 125,028 146,583
Capital lease and lease
financing obligations,
including
current portion 173,227 177,417
Refundable portion of
entrance fees 85,434 85,164
Current portion of
deferred entrance fee
income 37,591 38,407
Long-term deferred
entrance fee income 125,112 122,417
Deferred gain on sale
lease-back transactions 86,392 89,012
Shareholders' equity 229,619 132,755
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
GAAP RECONCILIATION
FREE CASH FLOW
($'s in thousands)
Free cash flow is presented to provide additional information
concerning cash flow available to meet future debt service
obligations and working capital requirements. Free cash flow should
not be considered as a measure of financial performance or liquidity
under U.S. generally accepted accounting principles. Free cash flow
should not be considered in isolation or as alternative to financial
statement data presented in the Company's consolidated financial
statements as an indicator of financial performance or liquidity.
Free cash flow, as presented, may not be comparable to similarly
titled measures of other companies.
The following table reconciles Free cash flow, as
described above, to net income as reflected in the
Company's consolidated statements of earnings.
Three months
ended
March 31, 2006
Net income $ 4,802
Adjustments to reconcile net income to cash and cash
equivalents
provided by operating activities:
Depreciation and amortization 9,999
Non-cash stock-based compensation expense 1,495
Amortization of deferred financing costs 197
Non-cash interest income (36)
Amortization of deferred gain on sale-leaseback
transactions (2,961)
Loss (gain) on sale of assets 84
(Gains) losses from unconsolidated joint ventures 346
Minority interest in earnings of consolidated
subsidiaries (176)
Entrance fee items
Amortization of deferred entrance fee revenue (4,639)
Proceeds from entrance fee sales 8,789
--------------
Net cash and cash equivalents provided by operating
activities (before changes in assets and liabilities,
exclusive of acquisitions and sale leaseback
transactions) 17,900
Adjustments for lease escalators and other accruals 1,094
Additions to land, building and equipment, including
development expenditures (13,985)
Remove development expenditures 11,304
Distributions received from joint ventures 324
Net deferred tax effect 885
Tax benefit from exercise of stock options 448
Proceeds from refundable entrance fee sales, net of
refunds (1,474)
Distributions to minority interest holders (762)
Principal reductions in master trust liability (244)
--------------
Free cash flow 15,490
Principal payments on long-term debt (4,721)
--------------
Free cash flow after principal payments $ 10,769
==============
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion