Assisted Living Concepts, Inc. Reports First Quarter 2001 Financial Results.Business Editors PORTLAND, Ore.--(BUSINESS WIRE)--May 15, 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 and the filing of its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2001. For the quarter ended March 31, 2001 (the "March 2001 Quarter"), the Company incurred a net loss of $4.2 million, or $0.25 per basic and diluted share, on revenue of $36.9 million as compared to a net loss of $3.8 million, or $0.22 per basic and diluted share, on revenue of $33.1 million for the quarter ended March 31, 2000 (the "March 2000 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 $25,000 for the March 2001 Quarter as compared to $28,000 for the March 2000 Quarter. Operating results for the March 2001 Quarter included charges of $303,000 related to the potential restructure of the Company's convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. and certain of its under-performing leases. The Company's Quarterly Report on Form 10-Q ("Form 10-Q") includes a discussion of the Company's potential restructure of its convertible debentures and certain of its under-performing leases. The Form 10-Q also includes information regarding the Company's liquidity. Assisted Living Concepts, Inc. owns and operates 185 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. . 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) the Company's ability to control costs and improve operating margins, (ii) the degree to which the Company's future operating results and financial condition will be affected by 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. described in the Company's filings with the Securities Exchange Commission, (iii) the possibility that the Company will experience slower fill-up of its newer residences and/or declining occupancy in its other residences, either of which would adversely affect residence revenues and operating margins, (iv) the Company's ability to operate its residences in compliance with evolving regulatory requirements (v) the degree to which the Company's future operating results and financial condition will be affected by a reduction in Medicaid reimbursement rates, particularly in Oregon, and (vi) the possibility that the Company will not be able to make its convertible debenture interest payment on May 31, 2001 and/or restructure its $161.3 million of convertible debentures due in November 2002 and May 2003, in which event the Company is likely to seek protection under Chapter 11 of 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. Bankruptcy Code Bankruptcy Code may refer to:
ASSISTED LIVING CONCEPTS, INC.
Consolidated Statement of Operations Data
(in thousands, except per share amounts)
Three Months Ended
March 31,
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2000 2001
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Revenue $ 33,132 $ 36,877
Operating expenses:
Residence operating expenses 22,682 25,558
Corporate general and
administrative 4,048 4,268
Building rentals 3,645 4,171
Building rentals to related party 317 --
Depreciation and amortization 2,412 2,552
Debt and lease restructure costs -- 303
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Total operating expenses 33,104 36,852
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Operating income 28 25
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Other income (expense):
Interest expense (4,028) (4,402)
Interest income 209 148
Other income (expense), net -- 31
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Total other expense (3,819) (4,223)
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Net loss $ (3,791) $ (4,198)
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Basic and diluted net loss
per common share $ (.22) $ (.25)
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Basic and diluted weighted
average common shares outstanding 17,121 17,121
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Consolidated Balance Sheet Data (in thousands)
December 31, March 31,
ASSETS 2000 2001
--------- ---------
Cash, cash equivalents and
cash held for tenant security deposits $ 9,889 $ 4,073
Working deficit $ (16,983) $ (22,005)
Total assets $ 336,458 $ 331,800
Long term debt and capital lease
obligation, excluding current portion $ 70,407 $ 71,684
Convertible subordinated debentures $ 161,250 $ 161,250
Shareholders' equity $ 63,886 $ 59,688
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