Highlights:
-- Private pay occupancy increased by 17 units from the second quarter of
2008 on a same residence basis
-- Private pay occupancy in October 2008 exceeded third quarter 2008
average by 40 units
-- Private pay mix as a percent of revenue continues to grow, reaching an
average of 92.0% in 2008 third quarter
-- 250 units under expansion plan expected to be on line by end of fourth
quarter
-- Credit facility expanded by $20 million
-- Adjusted third quarter EBITDAR 28.4%, up from 28.0% in prior year
quarter despite $400 thousand EBITDAR impact of hurricane and annual
conference expenses
Assisted Living Concepts, Inc. ("ALC") (NYSE: ALC) reported net
income of $3.0 million in the 2008 third quarter as compared to net
income of $4.2 million in the 2007 third quarter. Net income in the
third quarter of 2008 as compared to the third quarter of 2007 was
negatively impacted by increased rent expense ($1.4 million),
increased interest expense ($0.5 million), the timing of ALC's all
company conference ($0.3 million), expenses incurred in hurricanes
Gustav and Ike ($0.2 million), the impact of non-cash equity based
compensation ($0.2 million), partially offset by other cost savings
($1.0 million) and a reduction in income taxes ($0.8 million). For
the first nine months of 2008, ALC reported net income of $11.3
million as compared to net income of $13.1 million in the first
nine months of 2007.
Diluted earnings per common share for the third quarter of 2008
were $0.05 per share as compared to $0.06 per share for the third
quarter of 2007. Diluted earnings per common share for the first
nine months of 2008 were $0.18 per share as compared to $0.19 per
share for the first nine months of 2007.
"Private pay occupancy gains in the third quarter resulted from
extraordinary efforts on the part of our team. We achieved private
pay occupancy gains despite a very difficult operating environment
which weathered challenges from both the economy and an active
hurricane season," commented Laurie Bebo, President and Chief
Executive Officer of Assisted Living Concepts, Inc. "We are pleased
to report that private pay occupancy has continued to improve
through the month of October. In addition, we continued to reduce
our units available to Medicaid residents from 2,059 in the third
quarter of 2006 to our current level of 617."
Certain non-GAAP financial measures are used in the discussions
in this release in evaluating the performance of the business. See
attached tables for definitions of adjusted EBITDA and adjusted
EBITDAR, reconciliations of net income to adjusted EBITDA and
adjusted EBITDAR, calculations of adjusted EBITDA and adjusted
EBITDAR as a percentage of total revenues, and non-GAAP financial
measure reconciliation information.
As of September 30, 2008, ALC operated 216 assisted living
residences representing 9,076 units.
Quarters ended September 30, 2008, September 30, 2007, June 30,
2008
Revenues of $58.4 million in the third quarter ended September
30, 2008 increased $0.5 million or 0.8% from $57.9 million in both
the third quarter of 2007 and the second quarter of 2008.
Adjusted EBITDA for the third quarter of 2008 was $11.6 million,
and 19.8% of revenues and
-- decreased $1.0 million or 8.3% from $12.6 million and 21.8% of
revenues in the third quarter of 2007; and
-- decreased $1.3 million or 10.2% from $12.9 million and 22.3% of
revenues in the second quarter of 2008.
Adjusted EBITDAR for the third quarter of 2008 was $16.6
million, and 28.4% of revenues and
-- increased $0.4 million or 2.1% from $16.2 million and 28.0% of
revenues in the third quarter of 2007; and
-- decreased $1.3 million or 7.5% from $17.9 million and 30.9% of
revenues in the second quarter of 2008.
Third quarter 2008 compared to third quarter 2007
Revenues in the third quarter of 2008 increased from the third
quarter of 2007 primarily due to additional revenues from acquired
residences ($4.3 million) and higher average daily revenue as a
result of rate increases ($2.7 million), partially offset by the
planned reduction in the number of units occupied by Medicaid
residents ($3.5 million) and a reduction in the number of units
occupied by private pay residents ($3.0 million).
Adjusted EBITDA decreased in the third quarter of 2008 primarily
due to an increase in residence rent expense ($1.4 million) and an
increase in general and administrative expenses excluding non-cash
equity based compensation ($0.5 million), partially offset by
increased revenues discussed above ($0.5 million) and a decrease in
residence operations expenses excluding the loss on property from
hurricanes ($0.4 million). Adjusted EBITDAR increased as a result
of the reasons discussed above for adjusted EBITDA excluding the
increase in residence lease expense ($1.4 million). Residence
operations expenses decreased primarily from a reduction in labor
expense associated with lower occupancy, partially offset by
additional expenses from acquisitions and damage to residences,
evacuation expenses and business interruption from hurricanes
Gustav and Ike. Evacuated residents have been returned to the
repaired residences. General and administrative expenses increased
primarily from a change in timing of ALC's all-company annual
conference, which occurred in the third quarter of 2008. In 2007
the conference took place in the second quarter and a
non-repetitive reversal of non-cash equity based compensation in
the third quarter of 2007. Residence lease expenses increased
primarily from the January 1, 2008, acquisition of the operations
of BBLRG, LLC, doing business as CaraVita.
Third quarter 2008 compared to the second quarter 2008
Revenues in the third quarter of 2008 increased from the second
quarter of 2008 primarily due to an additional day in the third
quarter of 2008 ($0.5 million), increases in rates ($0.3 million),
and an increase in the number of units occupied by private pay
residents ($0.2 million), partially offset by the planned reduction
in the number of units occupied by Medicaid residents ($0.5
million).
Decreased adjusted EBITDA and adjusted EBITDAR in the third
quarter of 2008 as compared to the second quarter of 2008 resulted
primarily from an increase in residence operations expenses
excluding the loss on property from hurricanes ($1.4 million) and
general and administrative expenses ($0.4 million), partially
offset by increased revenues as discussed above ($0.5 million).
Residence operations expenses increased primarily from seasonal
increases in utility expenses and expenses incurred as a result of
hurricanes Gustav and Ike. General and administrative expenses
increased primarily from ALC's all-company annual conference, which
occurred in the third quarter of 2008.
Nine months ended September 30, 2008 and September 30, 2007
Revenues of $176.5 million in the first nine months of 2008
increased $3.6 million or 2.1% from $172.8 million in the first
nine months of 2007.
Adjusted EBITDA for the first nine months of both 2008 and 2007
were $37.8 million. As a percentage of revenues, Adjusted EBITDA
decreased from 21.9% in the first nine months of 2007 to 21.4% in
the first nine months of 2008.
Adjusted EBITDAR for the first nine months of 2008 was $52.7
million, and 29.8% of revenues and increased $4.2 million or 8.5%
from $48.5 million and 28.1% of revenues in the first nine months
of 2007.
Nine months of 2008 compared to nine months of 2007
Revenues in the first nine months of 2008 increased from the
first nine months of 2007 primarily due to additional revenues from
acquired residences ($14.3 million), higher average daily revenue
as a result of rate increases ($10.1 million), and one additional
day in the 2008 period due to leap year ($0.6 million), partially
offset by a reduction in the number of units occupied by private
pay residents ($7.7 million), the planned reduction in the number
of units occupied by Medicaid residents ($13.1 million), and
revenue from leasing ALC's corporate office ($0.6 million) in the
2007 period only.
Adjusted EBITDA in the first nine months of 2008 was unchanged
from the first nine months of 2007. Increased EBITDA from higher
revenues as discussed above ($3.6 million) and a reduction in both
residence operations expenses excluding the loss on property from
hurricanes ($0.5 million) and general and administrative expenses
excluding non-cash equity based compensation ($0.1 million) were
offset by an increase in residence lease expense ($4.2 million).
Adjusted EBITDAR increased for the reasons discussed above,
excluding the increase in residence lease expense ($4.2 million).
Residence operations expenses decreased primarily from a reduction
in labor expense associated with lower occupancy, partially offset
by additional expenses from acquisitions and damage to residences,
evacuation expenses and business interruption from hurricanes
Gustav and Ike. Residence lease expenses increased primarily from
the CaraVita acquisition.
Share repurchase program
On August 6, 2008, ALC's Board of Directors authorized an
increase in its Class A common stock repurchase program by $15
million. On December 14, 2006, ALC announced a share repurchase
program for up to $20 million of its Class A common stock. On
August 20, 2007, and December 18, 2007, ALC announced that its
Board of Directors authorized increases to the stock repurchase
program of $20 million and $25 million, respectively. The August 6,
2008, increase brings the total authorization to $80 million. In
the third quarter of 2008, ALC repurchased 122 thousand shares of
its Class A common stock at an aggregate cost of $645 thousand and
an average price of $5.25 per share. In the aggregate, ALC has
repurchased 8.2 million shares of its Class A common stock at an
aggregate cost of $60.4 million and an average price of $7.36 per
share under the share repurchase program through November 4,
2008.
Expansion Program Update
Construction continues on the expansion units in our program to
add 400 units to existing owned buildings. Weather issues,
primarily related to heavy rains and flooding in the Midwest,
resulted in minor timing delays. We expect to complete, license,
and begin accepting new residents in approximately 250 units by the
end of the fourth quarter of 2008, with a targeted completion of 80
units in the first quarter of 2009 and the remaining 70 in the
second quarter of 2009. To date, cost estimates have been
consistent with our original estimates of $125,000 per unit.
Financing Activities
On August 22, 2008, ALC entered into an agreement to amend its
$100 million revolving credit agreement with GE Healthcare
Financial Services and other lenders to allow ALC to borrow up to
an additional $20 million under the revolving credit agreement,
bringing the size of the facility to $120 million. This increase to
the capacity of the revolving credit facility did not require
additional collateral or a change in borrowing rates. At September
30, 2008 ALC had availability of $71 million under its revolving
credit agreement.
Investor Call
ALC has scheduled a conference call later this morning, November
4, 2008, at 10:00 a.m. (Eastern Time) to discuss financial results
for the third quarter. The toll-free number for the live call is
800-230-1092, or international 612-332-0335. A taped rebroadcast
will be available approximately one hour following the live call
until midnight on December 4, 2008. To access the rebroadcast of
the call, dial 800-475-6701, or international 320-365-3844 and use
the access code 963372.
About Us
Assisted Living Concepts, Inc. and its subsidiaries operate 216
assisted living residences with capacity for over 9,000 residents
in 20 states. ALC's assisted living facilities typically consist of
40 to 60 units and offer residents a supportive, home-like setting
and assistance with the activities of daily living. ALC employs
approximately 4,800 people.
Forward-looking Statements
Statements contained in this release other than statements of
historical fact, including statements regarding anticipated
financial performance, business strategy and management's plans and
objectives for future operations including managements expectations
about improving occupancy and private payer mix, are
forward-looking statements. These forward-looking statements
generally include words such as "expect," "point toward," "intend,"
"will," "indicate," "anticipate," "believe," "estimate," "plan,"
"strategy" or "objective." Forward-looking statements are subject
to risks and uncertainties that could cause actual results to
differ materially from those expressed or implied. In addition to
the risks and uncertainties referred to in the release in
connection with forward-looking statements, other risks and
uncertainties are identified in ALC's' filings with United States
Securities and Exchange Commissions and include, but are not
limited to, the following: changes in the health care industry in
general and the long-term senior care industry in particular
because of political and economic influences; changes in general
economic conditions, including changes in the availability of
credit at reasonable rates; changes in regulations governing the
industry and ALC's compliance with such regulations; changes in
government funding levels for health care services; resident care
litigation, including exposure for punitive damage claims and
increased insurance costs, and other claims asserted against ALC;
ALC's ability to maintain and increase census levels; ALC's ability
to attract and retain qualified personnel; the availability and
terms of capital to fund ALC's capital expenditures; changes in
competition; and demographic changes. Given these risks and
uncertainties, readers are cautioned not to place undue reliance on
ALC's forward-looking statements. All forward-looking statements
contained in this report are necessarily estimates reflecting the
best judgment of the party making such statements based upon
current information. ALC assumes no obligation to update any
forward-looking statement.
ASSISTED LIVING CONCEPTS, INC.
Condensed Consolidated Statements of Income
(In thousands, except earnings per share)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
--------- --------- --------- ---------
Revenues $ 58,367 $ 57,898 $ 176,468 $ 172,845
Expenses:
Residence operations
(exclusive of depreciation
and amortization and
residence lease expense
shown below) 38,577 38,832 114,522 114,809
General and administrative 3,458 2,663 9,538 9,489
Residence lease expense 4,987 3,595 14,894 10,754
Depreciation and
amortization 4,691 4,584 13,935 13,088
Transaction costs -- -- -- 56
--------- --------- --------- ---------
Total operating expenses 51,713 49,674 152,889 148,196
--------- --------- --------- ---------
Income from operations 6,654 8,224 23,579 24,649
Other expense:
Interest income 17 408 487 1,478
Interest expense (1,886) (1,813) (5,851) (4,955)
--------- --------- --------- ---------
Income before income taxes 4,785 6,819 18,215 21,172
Income tax expense (1,819) (2,594) (6,922) (8,048)
--------- --------- --------- ---------
Net income $ 2,966 $ 4,225 $ 11,293 $ 13,124
========= ========= ========= =========
Weighted average common shares:
Basic 61,357 67,891 62,966 68,946
Diluted 62,004 68,575 63,617 69,648
Per share data:
Basic earnings per common
share $ 0.05 $ 0.06 $ 0.18 $ 0.19
========= ========= ========= =========
Diluted earnings per common
share $ 0.05 $ 0.06 $ 0.18 $ 0.19
========= ========= ========= =========
Adjusted EBITDA (1) $ 11,565 $ 12,616 $ 37,778 $ 37,793
========= ========= ========= =========
Adjusted EBITDAR (1) $ 16,552 $ 16,211 $ 52,672 $ 48,547
========= ========= ========= =========
(1) See attached tables for definitions of adjusted EBITDA and adjusted
EBITDAR and reconciliations of net income to adjusted EBITDA and
adjusted EBITDAR.
ASSISTED LIVING CONCEPTS, INC.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
September December
30, 31,
ASSETS 2008 2007
----------- -----------
Current assets: (Unaudited)
Cash and cash equivalents $ 6,347 $ 14,066
Investments 2,850 4,596
Accounts receivable, less allowances of $965 and
$992, respectively 3,864 3,746
Supplies, prepaid expenses and other current
assets 6,106 6,733
Deferred income taxes 4,446 4,080
Income taxes receivable 356 --
----------- -----------
Total current assets 23,969 33,221
Property and equipment, net 410,070 395,141
Goodwill and other intangible assets, net 30,162 20,736
Restricted cash 1,338 8,943
Cash designated for acquisition -- 14,864
Other assets 3,099 3,336
----------- -----------
Total Assets $ 468,638 $ 476,241
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 10,529 $ 7,800
Accrued liabilities 18,805 17,951
Deferred revenue 8,196 6,346
Accrued income taxes -- 198
Current maturities of long-term debt 9,110 26,543
Current portion of self-insured liabilities 300 300
----------- -----------
Total current liabilities 46,940 59,138
Accrual for self-insured liabilities 1,429 941
Long-term debt 117,697 103,176
Deferred income taxes 9,093 9,008
Other long-term liabilities 9,920 9,444
Commitments and contingencies
----------- -----------
Total Liabilities 185,079 181,707
----------- -----------
Preferred Stock, par value $0.01 per share,
25,000,000 shares authorized, none issued
or outstanding -- --
Class A Common Stock, par value $0.01 per share,
400,000,000 shares authorized, 52,806,292 and
56,131,873 issued and outstanding, respectively 595 595
Class B Common Stock, par value $0.01 per share,
75,000,000 shares authorized, 8,546,902 and
8,727,458 issued and outstanding, respectively 100 100
Additional paid-in capital 313,652 313,548
Accumulated other comprehensive (loss) income (993) 103
Retained earnings 30,611 19,318
Treasury stock at cost, Class A Common Stock,
8,210,660 and 4,691,060 shares, respectively (60,406) (39,130)
----------- -----------
Total Stockholders' Equity 283,559 294,534
----------- -----------
Total Liabilities and Stockholders' Equity $ 468,638 $ 476,241
=========== ===========
ASSISTED LIVING CONCEPTS, INC.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
2008 2007
-------- --------
OPERATING ACTIVITIES:
Net income $ 11,293 $ 13,124
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 13,935 13,088
Amortization of purchase accounting adjustments for:
Leases and debt (549) (753)
Below market resident leases -- (39)
Provision for bad debt 27 75
Provision for professional/general liability
insurance 673 1,217
Payments for professional/general liability
insurance (185) (222)
Loss (gain) on sale or disposal of fixed assets 160 --
Deferred income taxes 3,328 901
Equity-based compensation expense 104 --
Changes in assets and liabilities:
Accounts receivable (145) 1,503
Supplies, prepaid expenses and other current assets 627 1,628
Accounts payable (413) (1,484)
Accrued liabilities 854 602
Deferred revenue 1,850 1,468
Income taxes payable/receivable 96 1,109
Other non-current assets 7,842 2,280
Other long-term liabilities 799 909
-------- --------
Cash provided by operating activities 40,296 35,406
-------- --------
INVESTING ACTIVITIES:
Payment for acquisition (14,532) (24,436)
Cash designated for acquisition 14,864 --
Payments for new construction projects (12,102) (3,210)
Payments for purchases of property and equipment (12,283) (8,474)
-------- --------
Cash used in investing activities (24,053) (36,120)
-------- --------
FINANCING ACTIVITIES:
Capital contributions from Extendicare -- 74
Purchase of treasury stock (21,276) (27,663)
Proceeds from issuance of new mortgage debt 9,026 4,301
Proceeds from borrowings on revolving credit
facility 7,000 19,000
Payments of long-term debt (18,712) (5,974)
-------- --------
Cash used in financing activities (23,962) (10,262)
-------- --------
Decrease in cash and cash equivalents (7,719) (10,976)
Cash and cash equivalents, beginning of year 14,066 19,951
-------- --------
Cash and cash equivalents, end of period $ 6,347 $ 8,975
======== ========
Supplemental schedule of cash flow information:
Capital expenditure in accounts payable (non cash
disclosures) $ 3,142 --
Cash paid during the period for:
Interest $ 6,016 $ 5,372
Income tax payments, net of refunds 3,511 5,854
ASSISTED LIVING CONCEPTS, INC.
Financial and Operating Statistics
All residences Three Months Ended
-------------------------------------
September June 30, September
30, 2008 2008 30, 2007
----------- ----------- -----------
Average Occupied Units by Payer
Source
Private 5,498 5,481 5,359
Medicaid 677 763 1,221
----------- ----------- -----------
Total 6,175 6,244 6,580
=========== =========== ===========
Occupancy Mix by Payer Source
Private 89.0% 87.8% 81.4%
Medicaid 11.0% 12.2% 18.6%
Percent of Revenue by Payer Source
Private 92.0% 91.4% 86.2%
Medicaid 8.0% 8.6% 13.8%
Average Revenue per Occupied Unit
Day by Payer Source
Private $ 106.19 $ 105.99 $ 101.24
Medicaid $ 74.72 $ 71.89 $ 70.86
Combined $ 102.74 $ 101.82 $ 95.60
Occupancy Percentage 68.0% 68.8% 77.6%
All residences Nine Months Ended
------------------------
September September
30, 2008 30, 2007
----------- -----------
Average Occupied Units by Payer Source
Private 5,537 5,290
Medicaid 771 1,467
Total 6,308 6,757
Occupancy Mix by Payer Source
Private 87.8% 78.3%
Medicaid 12.2% 21.7%
Percent of Revenue by Payer Source
Private 91.3% 84.0%
Medicaid 8.7% 16.0%
Average Revenue per Occupied Unit Day by Payer
Source
Private $ 106.23 $ 100.23
Medicaid $ 72.51 $ 68.67
Combined $ 102.11 $ 93.38
Occupancy Percentage 69.5% 80.7%
ASSISTED LIVING CONCEPTS, INC.
Financial and Operating Statistics
Same residence basis* Three Months Ended
-------------------------------------
September June 30, September
30, 2008 2008 30, 2007
----------- ----------- -----------
Average Occupied Units by Payer
Source
Private 4,999 4,982 5,359
Medicaid 677 763 1,221
----------- ----------- -----------
Total 5,676 5,745 6,580
=========== =========== ===========
Occupancy Mix by Payer Source
Private 88.1% 86.7% 81.4%
Medicaid 11.9% 13.3% 18.6%
Percent of Revenue by Payer Source
Private 91.3% 90.6% 86.2%
Medicaid 8.7% 9.4% 13.8%
Average Revenue per Occupied Unit
Day by Payer Source
Private $ 106.60 $ 106.56 $ 101.24
Medicaid $ 74.72 $ 71.89 $ 70.86
Combined $ 102.80 $ 101.95 $ 95.60
Occupancy Percentage 66.8% 68.8% 77.6%
Same residences basis* Nine Months Ended
------------------------
September September
30, 2008 30, 2007
----------- -----------
Average Occupied Units by Payer Source
Private 4,993 5,290
Medicaid 771 1,467
----------- -----------
Total 5,764 6,757
=========== ===========
Occupancy Mix by Payer Source
Private 86.6% 78.3%
Medicaid 13.4% 21.7%
Percent of Revenue by Payer Source
Private 90.5% 84.0%
Medicaid 9.5% 16.0%
Average Revenue per Occupied Unit Day by Payer
Source
Private $ 106.96 $ 100.23
Medicaid $ 72.51 $ 68.67
Combined $ 102.35 $ 93.38
Occupancy Percentage 68.6% 80.7%
* Same residence basis excludes the impact of residents added from the
acquisition of the 185 unit Dubuque, Iowa residence on July 20, 2007 and
the 541 unit CaraVita operations on January 1, 2008, and includes changes
in these acquisitions' occupancy since their respective dates of
acquisition.
Weighted Average Basic and Diluted Shares
The basic weighted average number of shares of common stock is
based upon the number of shares of Class A and Class B common stock
of ALC outstanding. For purposes of determining the diluted
weighted average number of shares, the Class B shares were deemed
to have been converted into Class A shares at the 1 to 1.075
conversion rate applicable to the Class B common stock. This
resulted in an additional 0.7 million shares included in the fully
diluted weighted average number of shares outstanding in the
quarter ended September 30, 2007 and the year to date nine month
periods ended September 30, 2007 and 2008 and 0.6 million in the
quarter ended September 30, 2008.
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDAR
Adjusted EBITDA is defined as net income from continuing
operations before income taxes, interest expense net of interest
income, depreciation and amortization, equity based compensation
expense, transaction costs and non-cash, non-recurring gains and
losses, including disposal of assets and impairment of long-lived
assets and loss on refinancing and retirement of debt. Adjusted
EBITDAR is defined as adjusted EBITDA before rent expenses incurred
for leased assisted living properties. Adjusted EBITDA and adjusted
EBITDAR are not measures of performance under accounting principles
generally accepted in the United States of America, or GAAP. We use
adjusted EBITDA and adjusted EBITDAR as key performance indicators
and adjusted EBITDA and adjusted EBITDAR expressed as a percentage
of total revenues as a measurement of margin.
We understand that EBITDA and EBITDAR, or derivatives thereof,
are customarily used by lenders, financial and credit analysts, and
many investors as a performance measure in evaluating a company's
ability to service debt and meet other payment obligations or as a
common valuation measurement in the long-term care industry.
Moreover, ALC's revolving credit facility contains covenants in
which a form of EBITDA is used as a measure of compliance, and we
anticipate EBITDA will be used in covenants in any new financing
arrangements that we may establish. We believe adjusted EBITDA and
adjusted EBITDAR provide meaningful supplemental information
regarding our core results because these measures exclude the
effects of non-operating factors related to our capital assets,
such as the historical cost of the assets.
We report specific line items separately, and exclude them from
adjusted EBITDA and adjusted EBITDAR because such items are
transitional in nature and would otherwise distort historical
trends. In addition, we use adjusted EBITDA and adjusted EBITDAR to
assess our operating performance and in making financing decisions.
In particular, we use adjusted EBITDA and adjusted EBITDAR in
analyzing potential acquisitions and internal expansion
possibilities. Adjusted EBITDAR performance is also used in
determining compensation levels for our senior executives. Adjusted
EBITDA and adjusted EBITDAR should not be considered in isolation
or as a substitute for net income, cash flows from operating
activities, and other income or cash flow statement data prepared
in accordance with GAAP, or as a measure of profitability or
liquidity. We present adjusted EBITDA and adjusted EBITDAR on a
consistent basis from period to period, thereby allowing for
comparability of operating performance.
Adjusted EBITDA and Adjusted EBITDAR Reconciliation
Information
The following table sets forth a reconciliation of net income to
adjusted EBITDA and adjusted EBITDAR:
Three Months Ended Three Months Ended Nine Months Ended
September 30, June 30, September 30,
2008 2007 2008 2007 2008 2007
--------- -------- --------- --------- --------- ---------
(In thousands, unaudited)
Net income $ 2,966 $ 4,225 $ 4,276 $ 4,172 $ 11,293 $ 13,124
Provision for
income taxes 1,819 2,594 2,620 2,556 6,922 8,048
--------- -------- --------- --------- --------- ---------
Income from
operations
before income
taxes 4,785 6,819 6,896 6,728 18,215 21,172
Add:
Depreciation
and
amortization 4,691 4,584 4,348 4,323 13,935 13,088
Interest
expense, net 1,869 1,405 1,591 857 5,364 3,477
Transaction
costs -- -- -- -- -- 56
Loss on
disposal of
assets 160 -- -- -- 160 --
Non-cash
equity based
compensation 60 (192) 41 186 104 --
--------- -------- --------- --------- --------- ---------
Adjusted EBITDA 11,565 12,616 12,876 12,094 37,778 37,793
Add: Lease
expense 4,987 3,595 5,009 3,460 14,894 10,754
--------- -------- --------- --------- --------- ---------
Adjusted
EBITDAR $ 16,552 $ 16,211 $ 17,885 $ 15,554 $ 52,672 $ 48,547
========= ======== ========= ========= ========= =========
The following table sets forth the calculations of adjusted EBITDA and
adjusted EBITDAR as percentages of total revenue:
Three Months Three Months Nine Months
Ended Ended Ended
September 30, June 30, September 30,
---------------- ---------------- ------------------
(Dollars amounts in thousands, unaudited)
2008 2007 2008 2007 2008 2007
------- ------- ------- ------- -------- --------
Revenues $58,367 $57,898 $57,854 $57,426 $176,468 $172,845
------- ------- ------- ------- -------- --------
Adjusted EBITDA $11,565 $12,616 $12,876 $12,094 $ 37,778 $ 37,793
------- ------- ------- ------- -------- --------
Adjusted EBITDAR $16,552 $16,211 $17,885 $15,554 $ 52,672 $ 48,547
------- ------- ------- ------- -------- --------
Adjusted EBITDA as
percent of total
revenues 19.8% 21.8% 22.3% 21.1% 21.4% 21.9%
------- ------- ------- ------- -------- --------
Adjusted EBITDAR as
percent of total
revenues 28.4% 28.0% 30.9% 27.1% 29.8% 28.1%
------- ------- ------- ------- -------- --------
For further information, contact: Assisted Living Concepts, Inc.
John Buono Sr. Vice President, Chief Financial Officer and
Treasurer Phone: (262) 257-8999 Fax: (262) 251-7562 Email: Email
Contact Visit ALC's Website @ www.alcco.com
Alcon (NYSE:ALC)
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From Jun 2024 to Jul 2024
Alcon (NYSE:ALC)
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From Jul 2023 to Jul 2024
