Assisted Living Concepts, Inc. Reports Financial Results.Business Editors PORTLAND, Ore.--(BUSINESS WIRE)--March 13, 2001 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 year ended December 31, 2000. For the quarter ended December 31, 2000 (the "December 2000 Quarter"), the Company incurred a net loss of $5.7 million, or $0.34 per basic and diluted share, on revenue of $36.8 million as compared to a net loss of $6.0 million, or $0.35 per basic and diluted share, on revenue of $32.0 million for the quarter ended December 31, 1999 (the "December 1999 Quarter"). The Company recorded an 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 $1.8 million for the December 2000 Quarter as compared to an operating loss of $2.0 million for the December 1999 Quarter. Operating results for the December 2000 Quarter included a charge of $800,000 resulting from the restructure of our relationship with our former chief executive officer. Also, during the December 2000 Quarter, the Company undertook and completed an assessment of its accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying collections process. As a result, we increased our provision for bad debts, primarily related to private pay accounts, and wrote off or reserved balances where the probability of collection was low. This resulted in the provision for bad debts of $1.5 million in the December 2000 Quarter. Operating results for the December 1999 Quarter included approximately $1.8 million of unusual items relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc professional fees associated with the restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of financial statements and the securityholder litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and the final operations of our home health business. For the year ended December 31, 2000 (the "December 2000 YTD See Year-to-date. YTD See year to date (YTD). Period") the Company incurred a net loss of $25.8 million, or $1.51 per basic and diluted share, on revenue of $139.4 million as compared to a net loss of $28.9 million, or $1.69 per basic and diluted share, on revenue of $117.5 million for the year ended December 31, 1999 (the "December 1999 YTD Period"). The Company recorded an operating loss of $9.9 million for the December 2000 YTD Period as compared to $14.9 million for the December 1999 YTD Period. Operating results for the December 2000 YTD Period included the $1.5 million provision for bad debts discussed above and $10.0 million of unusual items comprised of expenses relating to litigation settlement ($8.8 million) and severance ($1.2 million) costs. Operating results for the December 1999 YTD Period included approximately $12.2 million of unusual items relating to the write-off of development sites, professional fees associated with the restatement of financial statements, professional fees associated with the securityholder litigation, the final operations of our home health business and severance costs. At December 31, 1999 and 2000, the Company had 185 assisted living residences included in its operations with a year end 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 78.7% and 83.0%, respectively. 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 law. 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. . Conference Call Information You are invited to participate in the Assisted Living Concepts, Inc. conference call with Wm. James Nicol James Nicol (August 12, 1810 - April 8, 1879), Scottish geologist, was born at Traquair, near Innerleithen, in Peeblesshire. His father, the Rev. James Nicol (1769-1819), was minister of Traquair, and acquired some celebrity as a poet. , Chairman and Chief Executive Officer and Drew Q. Miller, Chief Financial Officer, who will discuss the results of the Company's December 2000 Quarter and Fiscal Year. The call will be held on Wednesday, March 14, 2001 at 1:30 p.m. PST PST Paroxysmal supraventricular tachycardia, see there . The call-in number is 888/604-5272. Those unable to participate in the live call may hear a rebroadcast by dialing 888/789-0623. The rebroadcast will be available March 15 through March 17, 2001. Contact Information: Wm. James Nicol, Chairman, President and Chief Executive Officer 503/252-6233 Drew Q. Miller, Senior Vice President, Chief Financial Officer and Treasurer 503/408-5293 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 (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) the degree to which our future operating results and financial condition will be affected by litigation, (iii) the possibility that we will experience slower fill-up of our newer residences and/or declining occupancy in our stabilized residences, either of which would adversely affect residence revenues and operating margins, (iv) our ability to operate our facilities 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 possibility that we will not be able to obtain financing needed to fund our future operations and retire our 6.0% Debentures and our 5.625% Debentures due in 2002 and 2003, respectively, or pay off other long-term indebtedness and (vi) other risks described in the Company'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. Except as may be required by law, Assisted Living Concepts does not undertake any obligation to publicly release any revisions to any 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 Year ended
December 31, December 31,
1999 2000 1999 2000
----------------- -----------------
Revenues $ 32,029 $ 36,837 $117,489 $139,423
Operating expenses:
Residence operating
expenses 21,749 25,996 81,767 95,032
Corporate general
and administrative 5,778 6,032 21,178 18,365
Building rentals 3,791 4,020 15,367 16,004
Depreciation and
amortization 2,429 2,574 8,981 9,923
Litigation settlement -- -- -- 10,020
Terminated merger
expense 228 -- 228 --
Site abandonment
costs 79 -- 4,912 --
-------- -------- -------- --------
Total operating
expenses 34,054 38,622 132,433 149,344
-------- -------- -------- --------
Operating loss (2,025) (1,785) (14,944) (9,921)
------- ------- ------- -------
Other income (expense):
Interest expense (4,142) (4,117) (15,200) (16,363)
Interest income 278 210 1,598 786
Gain (loss) on sale
or disposal of assets -- -- (127) 13
Loss on sale of
marketable securities -- -- -- (368)
Other income (expense) (122) (37) (260) 67
------- ------- ------- -------
Total other expense (3,986) (3,944) (13,989) (15,865)
------- ------- ------- -------
Net loss $ (6,011) $ (5,729) $(28,933) $(25,786)
======== ======== ======== ========
Basic and diluted net
loss per common share $ (0.35) $ (0.34) $ (1.69) $ (1.51)
======== ======== ======== ========
Basic and diluted
weighted average
common shares
outstanding 17,121 17,121 17,119 17,121
Consolidated Balance Sheet Data (in thousands)
December 31, December 31,
ASSETS 1999 2000
------------ ------------
Cash and cash equivalents $ 7,606 $ 9,889
Marketable securities,
available for sale $ 1,680 $ --
Working capital
(deficit) $ 37 $(16,983)
Total assets $346,188 $336,458
Long term debt, excluding
current portion $ 71,949 $ 70,407
Convertible subordinated
debentures $161,250 $161,250
Shareholders' equity $ 89,344 $ 63,886
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