Assisted Living Concepts Inc. Announces Results for the Three Months and Nine Months Ended September 30, 1998.PORTLAND Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , Ore.--(BUSINESS WIRE)--Nov. 5, 1998--Assisted Living Concepts Inc. (AMEX AMEX See: American Stock Exchange :ALF ALF - Algebraic Logic Functional language ) (the "Company"), one of the nation's leading providers of 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. , today reported a 93% increase in revenues for the three months ended September September: see month. 30, 1998 to $24.2 million from $12.5 million for the same period last year and a 116% increase in earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
For the three months ended September 30, 1998, net income was $2.7 million, or $.16 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share as compared to net income of $996,000, or $.09 per share for the same period last year. On a same store basis for the three months ended September 30, 1998, 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. increased 72.4%. For the nine months ended September 30, 1998, revenues increased 98% to $64.5 million from $32.6 million for the same period last year. Net income for the nine months ended September 30, 1998, excluding the cumulative effect of a change in accounting principle and the non-recurring charges taken in the second quarter of 1998, was $7.1 million or $.42 per diluted share as compared to $2.6 million or $.23 per diluted share for the same period in 1997, a 167% increase. Net (loss) income, including the non-recurring charges for the nine months ended September 30, 1998 was $(2.4) million, or $(.14) per diluted share, compared to $2.6 million or $.23 per diluted share, for the same period last year. Development and Acquisitions For the quarter ended September 30, 1998, the Company added nine residences with 360 units, and expanded three residences by 26 units, bringing the total number of residences to 170 with 6,497 units. This represents an increase of 61 residences with 2,455 units or a 62% increase over the number of units at September 30, 1997. The Company has also begun construction on an expansion project in Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. and will continue this program in other select areas as market conditions warrant. The Company signed a letter of intent and expects a fourth quarter close on the purchase of a 51 unit facility in Texas. The purchase price of this residence is $3.4 million and the residence is fully occupied oc·cu·py tr.v. oc·cu·pied, oc·cu·py·ing, oc·cu·pies 1. To fill up (time or space): a lecture that occupied three hours. 2. To dwell or reside in. 3. . This facility is of a similar building model to the Company's internal development, expanding the Company's operating base in Texas to 40 residences (1,536 units). At September 30, 1998, the Company had 28 residences with 1,110 units under construction and 22 residences under development (i.e., the site is under control and development activities have commenced). The Company currently operates in Oregon, Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , Idaho Idaho (ī`dəhō), one of the Rocky Mt. states in the NW United States. It is bordered by Montana and Wyoming (E), Utah and Nevada (S), Oregon and Washington (W), and the Canadian province of British Columbia (N). , Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , Texas, Nebraska Nebraska (nəbrăs`kə), Great Plains state of the central United States. It is bordered by Iowa and Missouri, across the Missouri R. (E), Kansas (S), Colorado (SW), Wyoming (NW), and South Dakota (N). , New Jersey, Ohio, Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , Iowa, 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. , Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. and
Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York with residences under construction and development in many
of its existing markets as well as three additional states.
Financing During the third quarter, the Company completed a number of financings from various sources. In July July: see month. , the Company closed on a variable $13.2 million tax exempt bond financing at an all inclusive (theory) inclusive - In domain theory, a predicate P : D -> Bool is inclusive iff For any chain C, a subset of D, and for all c in C, P(c) => P(lub C) In other words, if the predicate holds for all elements of an increasing sequence then it holds for their least upper variable rate of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 5%, secured by seven residences in Ohio, and raised $6.6 million in mortgage financing at a fixed rate of 7.6%. In September, the Company raised $5.8 million in mortgage financing at a rate of approximately 8.5% and $5.3 million through a sale-leaseback sale-lease·back n. See leaseback. transaction involving two residences. In October October: see month. , the Company received a commitment for a $25 million secured revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility, subject to certain conditions and expected to close in December December: see month. , 1998, with PNC PNC Purdue University North Central (Westville, Indiana) PnC Point 'n Click PNC Police National Computer PNC People's National Congress (Guyana) PNC People's National Congress Bank, N.A. as agent and Sun Trust Bank, Central Florida
Central Florida is the central region of the United States state of Florida, on the East Coast. , N.A. as a syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism member. The Company will seek to expand this credit facility as needed as needed prn. See prn order. . The Company believes that its existing cash (which is approximately $80 million), mortgage and other financing commitments and the credit facility will adequately fund the scheduled development through 1999. The Company owns, operates, and develops assisted living residences for older adults who need assistance 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 makes nursing services available 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 and as permitted by state regulation. This combination of housing and services will provide a cost efficient alternative and 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. This press release contains certain 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. that are subject to risk and uncertainty. There can be no assurance that these future results will be achieved. Readers are cautioned to refer to the Company's Annual Report on 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. for the year ended December 31, 1997 filed with the Securities and Exchange Commission for a description of factors which could affect the Company's performance. -0-
Assisted Living Concepts Inc.
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Three
Months Ended Months Ended
30-Sep-97 30-Sep-98
Revenue $ 12,505 100.0% $ 24,162 100.0%
General operating expenses 7,897 63.2% 15,002 62.1%
General operating income 4,608 36.8% 9,160 37.9%
Corporate general and
administrative 691 1,629
Building rentals 2,695 3,969
Depreciation and amortization 801 1,557
Total operating expenses 4,187 7,155
Operating income 421 2,005
Interest expense (245) (723)
Interest income 138 1,227
Other income 1,293 1,881
Non-recurring charge - -
Net income (loss) before
income taxes $ 1,607 $ 4,390
(Provision) benefit for
income taxes (611) (1,668)
Net income (loss) before
cumulative effect 996 2,722
Cumulative effect (net of
taxes of $1,187) $ - -
Net Income (loss) $ 996 $ 2,722
Net income (loss) per
common share before cum effect
(basic) $0.09 $0.16
Net income (loss) per
common share (basic) $0.09 $0.16
Net income (loss) per common
share before cum effect
(diluted) $0.09 $0.16
Net income (loss) per common
share (diluted) $0.09 $0.16
Weighted-average common shares
outstanding (basic) 11,084 17,274
Weighted-average common shares
outstanding (diluted) 13,517 17,555
Nine Nine
Months Ended Months Ended
30-Sep-97 30-Sep-98
Revenue $ 32,597 100.0% $ 64,458 100.0%
General operating expenses 20,146 61.8% 39,727 62.1%
General operating income 12,451 38.2% 24,731 37.9%
Corporate general and
administrative 2,008 4,077
Building rentals 6,264 11,808
Depreciation and amortization 2,009 3,646
Total operating expenses 10,281 19,531
Operating income 2,170 5,200
Interest expense (653) (1,376)
Interest income 414 2,872
Other income 1,775 4,685
Non-recurring charge - (8,495)
Net income (loss) before
income taxes $ 3,706 $ 2,886
(Provision) benefit for
income taxes $ (1,079) (2,477)
Net income (loss) before
cumulative effect $ 2,627 409
Cumulative effect (net
of taxes of $1,187) $ - (2,770)
Net Income (loss) $ 2,627 $ (2,361)
Net income (loss) per
common share before cum effect
(basic) $0.24 $0.02
Net income (loss) per
common share (basic) $0.23 ($0.14)
Net income (loss) per
common share before
cum effect (diluted) $0.24 $0.02
Net income (loss) per
common share (diluted) $0.23 ($0.14)
Weighted-average common
shares outstanding (basic) 11,018 17,435 (a)
Weighted-average common shares
outstanding (diluted) 13,492 17,435 (a)
(a) Per FAS 128, basic and diluted weighted average common shares
are the same when a net loss is incurred.
PRO FORMA NET INCOME, EXCLUDING NON-RECURRING CHARGE AND
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
Nine
Months Ended
30-Sep-98
Proforma net income before income taxes,
excluding non-recurring charge and
cumulative effect of change in accounting
principle $11,381
Provision for income taxes (4,325)
Pro forma net income, excluding non-recurring
charge and cumulative effect of change in
accounting principle $ 7,056
Proforma net income per common share, excluding
non-recurring charge and cumulative effect
of change in accounting principle (basic) $0.40
Proforma net income per common share,
excluding non-recurring charge and
cumulative effect of change in accounting
principle (diluted) $0.42
Weighted-average common shares outstanding (basic) 17,435
Weighted-average common shares outstanding (diluted) 17,783
COMPILATION OF STABILIZED AND START-UP RESIDENCES
Stabilized Start-up
Residences(a) Residences(b)
Revenue $ 15,891 100.0% $ 7,554 100.0%
General operating expenses 9,204 57.9% 5,637 74.6%
General operating income 6,687 42.1% 1,917 25.4%
Corporate general and
administrative -- --
Building rentals 2,810 1,153
Depreciation and amortization 578 815
Total operating expenses 3,388 1,968
Operating income (loss) 3,299 (51)
Interest expense (853) (843)
Interest income -- 3
Other income -- --
Other expense -- --
Net income before taxes 2,446 (891)
Residences operating 86 68
Units operating 3,138 2,726
Average occupancy rate 92% 50%
Corporate and Three
Ancillary Months Ended
Services Sept. 30, 1998
Revenue $ 717 $ 24,162 100.0%
General operating expenses 161 15,002 62.1%
General operating income 556 9,160 37.9%
Corporate general and
administrative 1,629 1,629
Building rentals 6 3,969
Depreciation and amortization 164 1,557
Total operating expenses 1,799 7,155
Operating income (loss) (1,243) 2,005
Interest expense 973 (723)
Interest income 1,224 1,227
Other income 1,881 1,881
Other expense -- --
Net income before taxes 2,835 4,390
Residences operating 154
Units operating 5,864
Average occupancy rate 73%
(a) Stabilized residences are those residences that have been
operating for twelve months or have achieved a stabilized
occupancy of 95% or more as of the beginning of the quarter.
Stabilized residences exclude three properties held for sale and
one property whose lease was terminated effective Sept. 30, 1998.
(b) Start-up residences are those residences that have not been
operating for twelve months and have not achieved a stabilized
occupancy of 95% or more as of the beginning of the quarter.
COMPILATION OF SAME STORE RESIDENCES
Three Three
Months Ended Months Ended
Sept. 30, 1997 Sept. 30, 1998
Revenue $ 11,879 100.0% $ 13,744 100.0%
General operating expense 7,320 61.6% 8,036 58.5%
General operating income 4,559 38.4% 5,708 41.5%
Building rentals 2,334 2,603
Depreciation and amortization 702 480
Total operating expenses 3,036 3,083
Operating income 1,523 2,625
Interest expense (1,406) (821)
Interest income 3 1
Other income 626 --
Other expense (2)
Income before income taxes $ 746 $ 1,803
Residences operating 77 77
Units operating 2,776 2,776
Average occupancy rate 80% 91%
Nine Nine
Months Ended Months Ended
Sept. 30, 1997 Sept. 30, 1998
Revenue $ 25,101 100.0% $ 27,002 100.0%
General operating expense 14,559 58.0% 15,483 57.3%
General operating income 10,542 42.0% 11,519 42.7%
Building rentals 4,998 6,041
Depreciation and amortization 862 540
Total operating expenses 5,860 6,581
Operating income 4,682 4,938
Interest expense (1,790) (987)
Interest income 4 3
Other income --
Other expense (1) (1)
Income before income taxes $ 2,895 $ 3,953
Residences operating 51 51
Units operating 1,778 1,778
Average occupancy rate 90% 95%
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