Assisted Living Concepts, Inc. Announces Improved Fourth Quarter 2002 Financial Results.Business Editors PORTLAND, Ore.--(BUSINESS WIRE)--Feb. 28, 2003 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. Concepts, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ASLC ASLC Alaska Sealife Center ASLC Associated Students of Lewis & Clark College ASLC Accruing Superannuation Liability Contributions ASLC Adaptive Side-Lobe Cancellation ), a national provider of assisted living services, today announced financial results for the quarter and year ended December 31, 2002. OPERATING AND FINANCIAL RESULTS For the quarter ended December 31, 2002 the Company reported a net profit of $225,000, or $0.03 per basic and diluted share as compared to a net loss of $47.7 million, or $(2.78) per basic and diluted share, for the quarter ended December 31, 2001. Prior to charges for debt restructure and reorganization costs, fresh-start adjustment in 2001, 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 an extraordinary gain in 2001, the Company's loss for the quarter ended December 31, 2002 was $14,000, compared to a loss of $3.6 million for the quarter ended December 31, 2001. Revenue increased $2.3 million to $37.9 million, for the three months ended December 31, 2002 from the comparable period of 2001. All figures are based on same store operations for the Company's 167 residences, and do not include results for five residences sold on September 30, 2002, and eleven residences held for sale on December 31, 2002. "Our fourth quarter results reflect continued improvement from operations. We look forward to making additional progress throughout 2003," said Steven L. Vick, President and Chief Executive Officer. "Initiatives to increase occupancy and revenue continue to be a focus. At the same time we are seeing positive results from our quality programs including delivery of care and services and quality of life programs for our residents." FISCAL 2002 RESULTS For the full year ended December 31, 2002 the Company incurred a net loss of $4.4 million, or $(0.68) per basic and diluted share as compared to a net loss of $63.9 million, or $(3.73) per basic and diluted share, for the year ended December 31, 2001. The Company expects to file its 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. with the SEC on or before March 31, 2003. PENDING ASSET SALES In furtherance fur·ther·ance n. The act of furthering, advancing, or helping forward: "Pakistan does not aspire to any . . . role in furtherance of the strategies of other powers" Ismail Patel. of its goal of reducing debt and leverage, the Company has entered into a purchase and sale agreement with a regional operator for all nine of its facilities in South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. . Six of the facilities are owned and pledged as collateral to the Senior and Junior Notes; three of the facilities are leased from a national REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). . All of the 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). of the sale will be used to redeem a portion of the Senior Notes. Closing is expected to occur in the second quarter of 2003. "This sale will complete our strategic realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. and exit from the southeast part of the country," said Mr. Vick. "By completing this transaction we will be able to further reduce overhead and focus on those regions where we've made a long term commitment to operate." Mr. Vick continued, "Any additional sales will be selective based on local market conditions and performance." The company's annual meeting is scheduled to be held in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. on May 8, 2003. Assisted Living Concepts, Inc. owns, leases and operates 178 assisted living residences with 6,883 units for older adults who need help with the activities of daily living, such as eating, bathing, dressing and medication management. In addition to housing, the Company provides personal care, support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services , and nursing services according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the individual needs of its residents, as permitted by state law. This combination of housing and services provides a home-like setting and cost efficient alternative that encourages independence for individuals who do not require the broader array of medical and health services health services Managed care The benefits covered under a health contract provided by skilled nursing facilities skilled nursing facility n. Abbr. SNF An establishment that houses chronically ill, usually elderly patients, and provides long-term nursing care, rehabilitation, and other services. . The Company currently has operations in Oregon, Washington, Idaho, Nebraska, Iowa, Arizona, Texas, New Jersey, Ohio, Pennsylvania, Indiana, Louisiana, Michigan and South Carolina. As previously announced, effective December 31, 2001, the Company adopted the principles of fresh-start reporting as a result of its emergence from bankruptcy. The adoption of fresh-start reporting materially changed the amounts previously recorded in the Company's consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge . Accordingly, operating results and cash flows for the quarter ended December 31, 2002 are generally not comparable to the Company's reported financial data for periods prior to December 31, 2001. As used in this release, the term "Predecessor Company" refers to the Company and its operations for periods prior to the adoption of fresh-start reporting, while the term "Successor Company" is used to describe the Company and its operations for the periods thereafter. This press release and statements made by or on behalf of Assisted Living Concepts, Inc. 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. Such statements, including without limitation, statements containing the words "will," "believes," "anticipates," "estimates," "intends," "expects," "should," "could," and words of similar import, are forward-looking statements. These forward-looking statements may be affected by risks and uncertainties, including without limitation (i) our ability to control costs and improve operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , (ii) our ability to increase occupancy, (iii) our ability to increase our revenue at a pace which exceeds expense inflation, (iv) our ability to operate our residences in compliance with evolving regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. , and (v) the degree to which our future operating results and financial condition may be affected by a reduction in Medicaid reimbursement rates. In light of such risks and uncertainties, our actual results could differ materially from such forward-looking statements. Except as may be required by law, we do not undertake any obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. ASSISTED LIVING CONCEPTS, INC. Consolidated Statement of Operations See Income statement. Data (in thousands, except per share amounts)
Predecessor Successor Predecessor Successor
Company Company Company Company
------------ ------------- ------------ ------------
Three Months Three Months Year Year
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
2001 2002 2001 2002
------------ ------------- ------------ ------------
Revenue $35,576 $37,890 $139,771 $146,269
Operating expenses:
Residence
operating
expenses 24,927 25,778 94,689 100,351
Corporate
general and
administrative 3,875 4,067 17,119 18,140
Building rentals 3,374 2,961 15,234 11,823
Depreciation
and amortization 2,395 1,633 9,212 6,369
------------ ------------- ------------ ------------
Total
operating
expenses 34,571 34,439 136,254 136,683
------------ ------------- ------------ ------------
Operating income 1,005 3,451 3,517 9,586
------------ ------------- ------------ ------------
Other income
(expense):
Interest expense (4,855) (3,547) (19,465) (14,148)
Interest income 270 54 650 213
Other income
(expense), net (3) 28 (58) 64
------------ ------------- ------------ ------------
Total other
expense,
net (4,588) (3,465) (18,873) (13,871)
------------ ------------- ------------ ------------
Loss before debt
restructure and
reorganization
costs, and
fresh start
adjustments (3,583) (14) (15,356) (4,285)
Debt restructure
and reorganization
costs (4,409) (28) (8,581) (708)
Fresh start
adjustments (119,320) - (119,320) -
------------ ------------- ------------ ------------
Loss from
continuing
operations (127,312) (42) (143,257) (4,993)
Income (loss)
from discontinued
operations 48 267 (149) 579
------------ ------------- ------------ ------------
Income (loss)
before
extraordinary
item (127,264) 225 (143,406) (4,414)
Extraordinary
item - Gain on
reorganization 79,520 - 79,520 -
------------ ------------- ------------ ------------
Net income (loss) $(47,744) $225 $(63,886) $(4,414)
============ ============= ============ ============
Basic and diluted
loss per share
from continuing
operations $(7.43) $(0.01) $(8.37) $(0.77)
Basic and diluted
income (loss)
per share from
discontinued
operations 0.00 00.4 (0.01) 0.09
------------ ------------- ------------ ------------
Basic and diluted
income (loss)
per share before
extraordinary item (7.43) 0.03 (8.38) (0.68)
Extraordinary item 4.65 - 4.65 -
------------ ------------- ------------ ------------
Basic and diluted
net income (loss)
per share $(2.78) $0.03 $(3.73) $(0.68)
------------ ------------- ------------ ------------
Basic and diluted
weighted average
shares outstanding 17,121 6,500 17,121 6,500
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