American Retirement Reports Record 1998 Revenues and Operating Earnings; Growth of Senior Living Networks on Track.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)--Feb. 17, 1999--American Retirement Corporation (NYSE NYSE See: New York Stock Exchange :ACR See riser card. ), a leading national provider of senior living care, today announced record 1998 revenues and operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before prior to previously announced special charges, as more fully described below. The company grew revenues to $44.2 million in the quarter ended December December: see month. 31, 1998, an increase of 74% over fourth quarter 1997 revenue of $25.3 million. Earnings before interest, taxes, depreciation, amortization, and rent (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) ) prior to merger termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. costs increased to $15.1 million, a 73% increase over the corresponding prior year period of $8.8 million. Revenue for the full year ended December 31, 1998 increased to $142.4 million, an increase of 58% over 1997 revenue of $90.2 million. 1998 EBITDAR, prior to merger termination costs, increased 72% to $49.1 million from $28.6 million in 1997. Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the prior to merger termination costs (net of tax benefit) was $10.0 million for the full-year ended December 31, 1998, or $.71 per share. Income after the loss from home health operations but before special charges was $.62 per share for the year, exceeding analyst consensus estimates by $.01 per share. 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 before extraordinary item for 1997 was $3.8 million, or $.35 per share. Commenting on the Company's results, 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. Bill Sheriff said, "Our strategy to develop senior living networks is on track. Our model, which provides for a seamless See seamless integration. continuum Continuum (pl. -tinua or -tinuums) can refer to:
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. and skilled nursing care - is proving to be responsive to the realities of aging." Addressing the company's growth plans, Mr. Sheriff continued, "We will continue to pursue acquisitions and development projects consistent with our strategy that allow us to accelerate the development of senior living networks in key markets." As previously announced, the Company recorded certain special charges during the quarter and year ended December 31, 1998. Earnings after losses from the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: home health business but before special charges for the quarter and the year amounted to $.19 per share and $.62 per share respectively. After special charges, earnings were $.10 per share in the fourth quarter and $.49 per share for the year. The special charges taken in the fourth quarter of 1998 include $.04 per share associated with the terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: merger with Assisted Living Concepts and a $.06 per share charge on the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of assets used in the discontinued home health business. In addition, the company recorded a $.02 per share charge in the first quarter of 1998 resulting from the early adoption of AICPA AICPA See American Institute of Certified Public Accountants (AICPA). Statement of Position (SOP) 98-5, the accounting change that requires companies to expense start-up Start-up The earliest stage of a new business venture. costs including those that had previously been capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. . On a same community basis, the Company had 16 retirement communities with a resident capacity of 4,843 in the fourth quarter of 1998 versus capacity of 4,611 in the comparable 1997 period. Two of the 16 same community locations had expansions in 1998. Excluding these two locations, same community 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 increased to 95% from 92%; same community revenues increased by 12% to $23.9 million; and same community EBITDAR increased by 9%, to $9.7 million. 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 services provider offering a broad range of care and services to seniors, including independent living, assisted living, skilled nursing and 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 care. Assuming consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the recently announced Oakhurst Oakhurst is the name of several communities in the United States of America:
adj. 1. Almost exact or correct: the approximate time of the accident. 2. 12,100 residents. Pursuant to its growth strategy, the Company is developing and constructing 35 senior living communities and has expansion projects in progress at 9 of its existing communities, which in the aggregate will add capacity for approximately 4,500 residents. Approximately 95 percent of the Company's revenues come from private pay sources 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 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, including those described in American Retirement Corporation's filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking statements included herein, American Retirement Corporation's actual results could differ materially from such forward-looking statements. American Retirement Corporation 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. -0-
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(in thousands, except per share data)
Increase (Decrease)
------------------
Q498 Q497 $ %
---------------------------------------
Revenues:
Resident and health care
revenue $ 39,389 $ 24,898 $ 14,491 58.20%
Management and development
services revenue 4,783 434 4,349 1002.07%
-------- -------- -------- --------
Total revenues 44,172 25,332 18,840 74.37%
Expenses:
Community operating expense 25,439 14,926 10,513 70.43%
Lease expense 2,855 1,680 1,175 69.94%
General and administrative 3,573 1,632 1,941 118.93%
Depreciation and amortization 3,413 1,953 1,460 74.76%
Merger related costs 994 - 994 100.00%
-------- -------- -------- --------
Total operating expenses 36,274 20,191 16,083 79.65%
-------- -------- -------- --------
Income from continuing
operations 7,898 5,141 2,757 53.63%
-------- -------- -------- --------
EBITDAR prior to merger
related costs (1) 15,160 8,774 6,386 72.78%
Other income (expense):
Interest expense (4,775) (4,861) 86 -1.77%
Interest income 1,598 1,890 (292) -15.45%
Other (130) 56 (186) -332.14%
-------- -------- -------- --------
Other income (expense), net (3,307) (2,915) (392) 13.45%
Income from continuing
operations before income
taxes and extraordinary
item 4,591 2,226 2,365 106.24%
Income tax expense 1,775 725 1,050 144.83%
-------- -------- -------- --------
Income from continuing
operations before
extraordinary item 2,816 1,501 1,315 87.61%
Discontinued operations
Loss from home health
operations, net of tax (117) (140) 23 -16.43%
Write-off of home health
assets, net of tax (902) - (902) 100.00%
-------- -------- -------- --------
Income before extraordinary
item 1,797 1,361 436 32.04%
Extraordinary loss, net of tax - (6,334) 6,334 -100.00%
-------- -------- -------- --------
Net income (loss) $ 1,797 $ (4,973) $ 6,770 n/a
======== ======== ======== ========
Diluted earnings per share:
Diluted earnings per share
from continuing operations
before extraordinary item
and merger related costs $ 0.20 $ 0.13
Loss from home health
operations (0.01) (0.01)
-------- --------
Diluted earnings per share
prior to special charges 0.19 0.12
Merger related costs, net of
tax (0.04) -
Write-off of home health
assets, net of tax (0.05) -
Extraordinary loss, net of
tax - (0.55)
-------- --------
Diluted earnings per share $ 0.10 $ (0.43)
======== ========
Weighted average shares used
for diluted earnings per
share data 17,149 11,579
======== ========
(1) EBITDAR (earnings before interest, taxes, depreciation,
amortization and rents) is not a measure of performance
recognized by generally accepted accounting principles but is
included because the Company believes it is useful for investors
in measuring trends in operating cash flow.
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(in thousands, except per share data)
Increase (Decrease)
------------------
1998 1997 $ %
----------------------------------------
Revenues:
Resident and health care
revenue $ 130,036 $ 88,416 $ 41,620 47.07%
Management and development
services revenue 12,321 1,765 10,556 598.07%
--------- -------- -------- -------
Total revenues 142,357 90,181 52,176 57.86%
Expenses:
Community operating expense 82,698 54,921 27,777 50.58%
Lease expense 9,063 3,405 5,658 166.17%
General and administrative 10,581 6,717 3,864 57.53%
Depreciation and amortization 10,779 6,825 3,954 57.93%
Merger related costs 994 - 994 100.00%
--------- -------- -------- -------
Total operating expenses 114,115 71,868 42,247 58.78%
Income from continuing
operations 28,242 18,313 9,929 54.22%
--------- -------- -------- -------
EBITDAR prior to merger
related costs (1) 49,078 28,543 20,535 71.94%
Other income (expense):
Interest expense (17,170) (14,863) (2,307) 15.52%
Interest income 4,092 2,675 1,417 52.97%
Other (162) (1) (161) n/a
--------- -------- -------- -------
Other income (expense), net (13,240) (12,189) (1,051) 8.62%
Income from continuing
operations before income
taxes, extraordinary item
and cumulative effect of
accounting change 15,002 6,124 8,878 144.97%
Income tax expense 5,652 4,435 1,217 27.44%
--------- -------- -------- -------
Income from continuing
operations before
extraordinary item and
cumulative effect of
accounting change 9,350 1,689 7,661 453.58%
Discontinued operations
Loss from home health
operations, net of tax (1,244) (155) (1,089) 702.58%
Write-off of home health
assets, net of tax (902) - (902) 100.00%
--------- -------- -------- -------
Income before extraordinary
item and cumulative effect
of accounting change 7,204 1,534 5,670 369.62%
Extraordinary loss, net of tax - (6,334) 6,334 -100.00%
Cumulative effect of
accounting change, net of tax (304) - (304) 100.00%
--------- -------- -------- -------
Net income (loss) $ 6,900 $ (4,800) $ 11,700 n/a
========= ======== ======== =======
Pro forma earnings data:
Pro forma income from
continuing operations before
income taxes, extraordinary
item and cumulative effect
of accounting change $ 6,124
Pro forma income tax expense 2,210
--------
Pro forma income from
continuing operations before
extraordinary item and
cumulative effect of
accounting change 3,914
Loss from home health
operations, net of pro forma
tax expense (155)
--------
Pro forma income before
extraordinary item $ 3,759
========
Pro forma diluted earnings
per share(2):
Diluted earnings per share
from continuing operations
before extraordinary item,
cumulative effect of
accounting change and
merger related costs $ 0.71 $ 0.37
Loss from home health
operations (0.09) (0.01)
========= ========
Diluted earnings per share
prior to special charges 0.62 0.35
Merger related costs, net of
tax (0.04) -
Write-off of home health
assets, net of tax (0.06) -
Extraordinary loss, net of
tax - (0.59)
Cumulative effect of
accounting change, net of
tax (0.02) -
--------- -------
Pro forma diluted earnings
per share $ 0.49 $ (0.24)
========= =======
Weighted average shares used
for diluted earnings per
share data 14,068 10,675
========= =======
(1) EBITDAR (earnings before interest, taxes, depreciation,
amortization and rents) is not a measure of performance
recognized by generally accepted accounting principles but is
included because the Company believes it is useful for investors
in measuring trends in operating cash flow.
(2) Pro forma diluted earnings per share includes pro forma tax
expense for 1997 and pro forma shares outstanding prior to the
Company's IPO.
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