AdCare Health Systems Closes Acquisition of Four Skilled Nursing Facilities in Arkansas
(firmenpresse) - SPRINGFIELD, OH -- (Marketwire) -- 09/08/11 -- (NYSE Amex: ADK), a nursing home and assisted living company, has closed the previously announced asset purchase of four skilled nursing facilities in Arkansas, with the acquisition from the same seller of a 10-year lease for one skilled nursing facility in Missouri expected to close within the next 90 days. The aggregate purchase price of the five skilled nursing facilities is $20 million.
The five facilities have an aggregate 506 beds that generated revenues of more than $25 million in 2010, and their addition is anticipated to be accretive to AdCare's earnings. Combined with other transactions previously announced and in the process of closing, AdCare's estimated annualized revenue run-rate is expected to exceed $285 million. This would represent an increase of more than 436% over the company's revenues in 2010, and an increase of more than 969% over revenues in 2009 when it initiated its current M&A campaign.
"These four facilities bring the total to 26 -- representing more than 2,700 beds -- that we've purchased or leased since we began our M&A program in the fall of 2009," said Chris Brogdon, AdCare's vice chairman and chief acquisitions officer. "They also mark our first entrance into Arkansas and are in line with our expansion throughout the South."
Boyd Gentry, AdCare's CEO, commented: "Our M&A strategy is to acquire underperforming skilled nursing facilities, and then assist the facility leadership to improve care, increase post-acute census and optimize payment rate structure. When we entered into the definitive purchase agreement for these facilities, they had relatively low Medicare utilization of 11.3% and an average daily Medicare rate of $427 a day. This optimization opportunity is right in our strategic 'sweet spot.'"
AdCare financed the asset purchase through a combination of traditional bank financing and loan guarantees by the United States Department of Agriculture (USDA). The USDA guarantee is provided through a program developed by the federal government to supply long-term financing for rural projects at favorable rates.
AdCare Health Systems, Inc. (NYSE Amex: ADK) is a recognized innovator in senior living and health care facility management. AdCare develops, owns and manages assisted living facilities, nursing homes and retirement communities, as well as provides home health care services. Since its inception in 1988, AdCare's mission has been to provide the highest quality of healthcare services to the elderly. For more information about AdCare, visit .
Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of federal law. Such statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "plans," "intends," "anticipates" and variations of such words or similar expressions, but their absence does not mean that the statement is not forward-looking. Statements in this announcement that are forward-looking include, but are not limited to, statements about the company's expected annualized revenue run-rate and statements regarding the signing and expected closing of transactions, as well as statements regarding transactions being accretive to the company's earnings. Such forward-looking statements reflect management's beliefs and assumptions and are based on information currently available to management, and involve known and unknown risks, results, performance or achievements of AdCare which may differ materially from those expressed or implied in such statements. Such factors are identified in the public filings made by AdCare with the SEC and include, among others, AdCare's ability to secure lines of credit and/or an acquisition credit facility, find suitable acquisition properties at favorable terms, changes in the health care industry because of political and economic influences, changes in regulations governing the industry, changes in reimbursement levels including those under the Medicare and Medicaid programs and changes in the competitive marketplace. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements. Except where required by law, AdCare undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.
Boyd Gentry
CEO
Chris Brogdon
Vice Chairman & CAO
David A. Tenwick
Chairman of Board
AdCare Health Systems, Inc.
Tel (937) 964-8974
Ron Both or Geoffrey Plank
Liolios Group, Inc.
Tel (949) 574-3860
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Datum: 08.09.2011 - 12:32 Uhr
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News-ID 63597
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