Assisted Living Concepts, Inc. Reports Financial Results and Agreement with U.S. Bank.Business Editors PORTLAND, Ore.--(BUSINESS WIRE)--Aug. 10, 2000 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. (AMEX AMEX See: American Stock Exchange :ALF ALF - Algebraic Logic Functional language ), a national provider of assisted living services, announced today its financial results for the quarter and six months ended June 30, 2000 and finalization Writing the table of contents (TOC) on a recordable CD or DVD disc. The finalization process ensures that the disc can be played back on most CD and DVD players. See disc-at-once. of an agreement with U.S. Bank National Association ("U.S. Bank"), the lendor for our Washington, Idaho and Ohio bond issues. For the quarter ended June 30, 2000 (the "June 2000 Quarter"), the Company incurred a net loss of $3.8 million, or $0.22 per basic and diluted share, on revenue of $34.1 million as compared to a net loss of $9.0 million, or $0.53 per basic and diluted share, on revenue of $28.5 million for the quarter ended June 30, 1999 (the "June 1999 Quarter"). The company recorded operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $434,000 for the June 2000 Quarter as compared to a net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $6.1 million for the June 1999 Quarter. Operating results for the June 2000 Quarter included one unusual item of approximately $350,000 related to severance costs. Operating results for the June 1999 Quarter included approximately $3.9 million of unusual items comprised of expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the write-off of development sites and severance costs. For the six months ended June 30, 2000 (the "June 2000 YTD See Year-to-date. YTD See year to date (YTD). Period") the Company incurred a net loss of $7.6 million, or $0.44 per basic and diluted share, on revenue of $67.3 million as compared to a net loss of $16.7 million, or $0.97 per basic and diluted share, on revenue of $55.1 million for the six months ended June 30, 1999 (the "June 1999 YTD Period"). The Company recorded operating income of $462,000 for the June 2000 YTD Period as compared to a net operating loss of $10.4 million for the June 1999 YTD Period. Operating results for the June 2000 YTD Period included one unusual item of approximately $350,000 related to severance costs. Operating results for the June 1999 YTD Period included approximately $6.1 million of unusual items comprised of expenses relating to a terminated merger, the write-off of development sites, severance costs, and losses recorded on the disposal of assets. As of June 30, 2000, the Company had 185 assisted living residences included in its operations with an average occupancy rate Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) of approximately 80.0% and an average monthly rental rate of approximately $1,993 per unit. On July 21, 2000, the Company finalized an agreement with U.S. Bank whereby U.S. Bank agreed to modify and waive certain financial covenants for the quarters ended June 30, 2000 and September 30, 2000. In exchange for the modification and waiver of financial covenants, the Company provided three previously unencumbered Unencumbered Property that is not subject to any creditor claims or liens. Notes: For example, if a house is owned free and clear (meaning the owner owes no mortgage to anyone), it is unencumbered. Washington state properties as additional collateral. The agreement also provides for the release of $1.8 million of cash collateral currently held by U.S. Bank upon the satisfaction of certain conditions, which the Company believes will be completed during August 2000. "I am pleased to note that we have finalized our agreement with U.S. Bank and encouraged that we reported an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. in both the first and second quarters of 2000. Increasing occupancy rates per residence and cost control continue to be our number one goals," said Dr. Keren Brown Wilson, 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. . Assisted Living Concepts, Inc. owns and operates assisted living residences for older adults who need help with the activities of daily living, such as bathing and dressing. 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 regulation. This combination of housing and services provides a cost efficient alternative and provides an independent lifestyle 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 nursing facilities. The Company currently has operations in Oregon, Washington, Idaho, Nebraska, Iowa, Arizona, Texas, New Jersey, Ohio, Pennsylvania, Indiana, Louisiana, Florida, Michigan, Georgia, and 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. . 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. These forward-looking statements may be affected by risks and uncertainties, including without limitation risks described in Assisted Living Concept's filings with the Securities and Exchange Commission. In light of such risks and uncertainties, Assisted Living Concepts' actual results could differ materially from such forward-looking statements. Assisted Living Concepts does 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 Data
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
--------- --------
2000 1999 2000 1999
---- ---- ---- ----
Revenue $ 34,146 $ 28,479 $ 67,278 $ 55,062
Operating expenses:
Residence operating
expenses 22,305 19,800 44,987 39,565
Corporate, general
and administrative 5,066 5,113 9,114 9,343
Building rentals 3,685 3,827 7,330 6,919
Building rentals to
related party 317 300 634 550
Depreciation and
amortization 2,339 2,087 4,751 4,267
Site abandonment costs -- 3,467 -- 4,776
-------- -------- -------- --------
Total operating expenses 33,712 34,594 66,816 65,420
-------- -------- -------- --------
Operating income (loss) 434 (6,115) 462 (10,358)
-------- -------- -------- --------
Other income (expense):
Interest expense (4,090) (3,301) (8,118) (7,096)
Interest income 180 407 389 1,012
Gain (loss) on sale and
disposal of assets 13 -- 13 (127)
Loss on sale of marketable
securities (368) -- (368) --
Other income (expense) 10 3 10 (97)
-------- -------- -------- --------
Total other income (expense) (4,255) (2,891) (8,074) (6,308)
-------- -------- -------- --------
Net loss $ (3,821) $ (9,006) $ (7,612) $(16,666)
======== ======== ======== ========
Basic and diluted net
loss per common share $ (0.22) $ (0.53) $ (0.44) $ (0.97)
======== ======== ======== ========
Basic and diluted weighted
average common shares
outstanding 17,121 17,116 17,121 17,096
======== ======== ======== ========
Consolidated Balance Sheet
Data (in thousands)
June 30, December 31,
ASSETS 2000 1999
---- ----
Cash and cash equivalents
and marketable securities $ 3,878 $ 9,286
Working capital $ 4,550 $ 7,592
Total assets $336,663 $346,188
Long term debt, excluding
current portion $ 71,418 $ 71,949
Convertible subordinated
debentures $161,250 $161,250
Shareholders' equity $ 82,060 $ 89,344
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