ATLANTA, Aug. 20, 2020 /PRNewswire/ -- Regional
Health Properties, Inc. (NYSE American: RHE) (NYSE American:
RHEpA), a self-managed healthcare real estate investment company
that invests primarily in real estate purposed for senior living
and long-term care, reported results for the quarter ended
June 30, 2020.
Brent Morrison, Regional Health
Properties' Chief Executive Officer, stated "Our operators continue
to perform well in light of navigating through a healthcare crisis.
The Federal Government has provided nursing home operators with
much needed stimulus to weather the operating headwinds brought on
by the COVID-19 pandemic. We appreciate the hard work from our
operators and intend to work with them until the operating
environment goes back to normal."
See the Company's recently filed Form 10-Q for additional
details on the current and potential impact of COVID-19 on the
business.
Clinton Cain, our former Senior
Vice President and Interim Chief Financial Officer, resigned from
all of his positions at the company. He has agreed to continue
serving the company in a consulting role to facilitate a smooth
transition as we identify the next finance executive for Regional
Health Properties. Mr. Morrison added, "Clinton served our company
well over the last nine years in a variety of financial and
leadership roles. On behalf of the board, I want to thank him for
his financial stewardship and many significant contributions during
his tenure. We wish him all the best."
Management periodically monitors a number of facility
performance metrics, including rent coverages both before and after
management fees. For the 12 months ended June 30, 2020, the Company's portfolio rent
coverage before management fees was 1.55x and rent coverage after
management fees was 1.20x. Occupancy and skilled mix for the
Company's portfolio were 75.1% and 28.0% respectively for the 12
months ended June 30, 2020. These
data exclude the impact of three managed facilities located in
Ohio.
Summary of Financial Results for the Three Months Ended
June 30, 2020
Total revenues in the second quarter of 2020 decreased 14.4% to
$4.5 million, from $5.3 million in the second quarter of 2019. The
decrease is a result of four facilities sold during the third
quarter of 2019. The Company generally recognizes all rental
revenues on a straight-line rent accrual basis.
General and administrative costs decreased 20.2%, to
$0.7 million for the three months
ended June 30, 2020, compared to
$0.9 million for the same period in
2019. For both the current and prior year periods, general and
administrative costs include minimal stock-based compensation
expense.
Interest expense decreased by $1.0
million, or 60.3%, to $0.7
million for the second quarter of 2020 compared to
$1.7 million for the same period in
2019. The decrease is mainly due to the payoff of the Pinecone and
Congressional Bank loans in the third quarter of 2019.
Net loss attributable to Regional Health Properties, Inc.'s
common stockholders in the second quarter of 2020 was $1.8 million, or $1.09 per basic and diluted share, compared to a
net loss of $3.5 million, or
$2.07 per basic and diluted share in
the prior year period.
Cash at June 30, 2020, totaled
$4.3 million compared to $4.4 million at December
31, 2019. Restricted cash at June 30,
2020, totaled $2.9 million
compared to $3.7 million at
December 31, 2019. Total debt
outstanding at June 30, 2020 amounted
to $55.1 million compared to
$55.4 million at December 31, 2019 (net of $1.3 million and $1.4
million of deferred financing costs at June 30, 2020 and December
31, 2019, respectively).
About Regional Health Properties
Regional Health Properties, Inc. (NYSE American: RHE) (NYSE
American: RHEpA) is a self-managed healthcare real estate
investment company that invests primarily in real estate purposed
for senior living and long-term healthcare through facility lease
and sub-lease transactions.
Regional currently owns, leases or manages for third parties 24
facilities (12 of which are owned by Regional, nine of which are
leased by Regional and three of which are managed by Regional for
third parties).
For more information, visit
www.regionalhealthproperties.com.
Important Cautions Regarding Forward-Looking
Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Words such as "expects," "intends," "believes,"
"anticipates," "plans," "likely," "will," "seeks," "estimates" and
variations of such words and similar expressions are intended to
identify such forward-looking statements. Statements in this press
release regarding future events and developments and our future
performance, as well as management's expectations, beliefs, plans,
estimates or projections relating to the future, are
forward-looking statements.
Forward-looking statements, by their nature, involve estimates,
projections, goals, forecasts and assumptions and are subject to
risks and uncertainties that could cause actual results to differ
materially from those projected or contemplated by our
forward-looking statements due to various factors, including, among
others: our dependence on the operating success of our operators;
the significant amount of, and our ability to service, our
indebtedness; covenants in our debt agreements that may restrict
our ability to make investments, incur additional indebtedness and
refinance indebtedness on favorable terms; the availability and
cost of capital; our ability to raise capital through equity and
debt financings or through the sale of assets; the effect of
increasing healthcare regulation and enforcement on our operators
and the dependence of our operators on reimbursement from
governmental and other third-party payors; the relatively illiquid
nature of real estate investments; the impact of litigation and
rising insurance costs on the business of our operators; the impact
on us of litigation relating to our prior operation of our
healthcare properties; the effect of our operators declaring
bankruptcy, becoming insolvent or failing to pay rent as due; the
ability of any of our operators in bankruptcy to reject unexpired
lease obligations and to impede our ability to collect unpaid rent
or interest during the pendency of a bankruptcy proceeding and
retain security deposits for the debtor's obligations; our ability
to find replacement operators and the impact of unforeseen costs in
acquiring new properties; the impact of COVID-19 on our business
and the business of our operators, including without limitation,
the extent and duration of the COVID-19 pandemic, increased costs
experienced by our operators in connection therewith, and the
extent to which government support may be available to our
operators to offset such costs and the conditions related thereto;
and other factors discussed from time to time in our news releases,
public statements and documents filed by us with the Securities and
Exchange Commission from time to time, including our Annual Report
on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K. These forward-looking statements and such risks,
uncertainties and other factors speak only as of the date of this
press release, and we expressly disclaim any obligation or
undertaking to update or revise any forward-looking statement
contained herein, to reflect any change in our expectations with
regard thereto or any other change in events, conditions or
circumstances on which any such statement is based, except to the
extent otherwise required by applicable law.
REGIONAL HEALTH
PROPERTIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(Amounts in
000's)
|
|
June 30,
|
December
31,
|
ASSETS
|
2020
|
2019
|
|
(Unaudited)
|
|
Property and
equipment, net
|
$
53,528
|
$
54,672
|
Cash
|
4,295
|
4,383
|
Restricted
cash
|
2,882
|
3,655
|
Accounts receivable,
net of allowance of $581 and $615
|
2,183
|
963
|
Prepaid expenses and
other
|
551
|
249
|
Notes
receivable
|
817
|
840
|
Intangible assets -
bed licenses
|
2,471
|
2,471
|
Intangible assets -
lease rights, net
|
218
|
462
|
Right-of-use
operating lease assets
|
35,547
|
37,287
|
Goodwill
|
1,585
|
1,585
|
Lease deposits and
other deposits
|
517
|
517
|
Straight-line rent
receivable
|
7,205
|
6,674
|
Total
assets
|
$
111,799
|
$
113,758
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Senior debt,
net
|
$
47,812
|
$
48,415
|
Bonds, net
|
6,317
|
6,409
|
Other debt,
net
|
1,016
|
539
|
Accounts
payable
|
3,038
|
3,699
|
Accrued
expenses
|
2,480
|
2,613
|
Operating lease
obligation
|
37,632
|
39,262
|
Other
liabilities
|
1,339
|
1,078
|
Total
liabilities
|
99,634
|
102,015
|
|
|
|
Stockholders'
equity:
|
|
|
Common stock and
additional paid-in capital, no par value; 55,000
|
|
|
shares authorized; 1,688 issued and outstanding at
|
|
|
June 30, 2020 and December 31, 2019
|
62,016
|
61,992
|
Preferred stock, no par value; 5,000 shares authorized;
2,812
|
|
|
shares issued and
outstanding, redemption amount $70,288
|
|
|
at June 30, 2020 and
December 31, 2019
|
62,423
|
62,423
|
Accumulated
deficit
|
(112,274)
|
(112,672)
|
Total stockholders'
equity
|
12,165
|
11,743
|
Total liabilities and
stockholders' equity
|
$
111,799
|
$
113,758
|
|
|
|
REGIONAL HEALTH
PROPERTIES, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Amounts in 000's,
except per share data)
(Unaudited)
|
|
Three Months Ended
June 30,
|
Six Months Ended June
30,
|
|
2020
|
2019
|
2020
|
2019
|
Revenues:
|
|
|
|
|
Rental
revenues
|
$
4,293
|
$
5,018
|
$
8,590
|
$
10,156
|
Management
fees
|
244
|
238
|
488
|
477
|
Other
revenues
|
2
|
45
|
9
|
92
|
Total
revenues
|
4,539
|
5,301
|
9,087
|
10,725
|
Expenses:
|
|
|
|
|
Facility rent
expense
|
1,639
|
1,640
|
3,279
|
3,366
|
Cost of management
fees
|
174
|
160
|
325
|
319
|
Depreciation and
amortization
|
769
|
841
|
1,545
|
1,864
|
General and
administrative expense
|
714
|
895
|
1,591
|
1,821
|
Recovery of doubtful
accounts
|
(135)
|
(74)
|
(137)
|
(246)
|
Other operating
expenses
|
297
|
222
|
521
|
630
|
Total
expenses
|
3,458
|
3,684
|
7,124
|
7,754
|
Income from
operations
|
1,081
|
1,617
|
1,963
|
2,971
|
Other expense
(income):
|
|
|
|
|
Interest expense,
net
|
684
|
1,724
|
1,399
|
3,378
|
Loss on
extinguishment of debt
|
-
|
1,221
|
-
|
1,554
|
Gain on disposal of
assets
|
-
|
-
|
-
|
(690)
|
Other expense
(income), net
|
(9)
|
47
|
135
|
54
|
Total other expense,
net
|
675
|
2,992
|
1,534
|
4,296
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
406
|
(1,375)
|
429
|
(1,325)
|
Income tax
expense
|
-
|
-
|
-
|
44
|
Income (loss) from
continuing operations
|
406
|
(1,375)
|
429
|
(1,369)
|
Income (loss) from
discontinued operations, net of tax
|
6
|
132
|
(31)
|
310
|
Net income
(loss)
|
412
|
(1,243)
|
398
|
(1,059)
|
Preferred stock
dividends - undeclared
|
(2,249)
|
(2,249)
|
(4,498)
|
(4,498)
|
Net loss attributable
to Regional Health Properties, Inc.
|
|
|
|
|
Common
Stockholders
|
$
(1,837)
|
$
(3,492)
|
$
(4,100)
|
$
(5,557)
|
|
|
|
|
|
Net (loss) income per
share of common stock attributable to
|
|
|
|
|
Regional Health
Properties, Inc.
|
|
|
|
|
Basic and
diluted:
|
|
|
|
|
Continuing
operations
|
$
(1.09)
|
$
(2.14)
|
$
(2.41)
|
$
(3.47)
|
Discontinued
operations
|
$
0.00
|
$
0.07
|
$
(0.02)
|
$
0.18
|
|
$
(1.09)
|
$
(2.07)
|
$
(2.43)
|
$
(3.29)
|
|
|
|
|
|
Weighted average
shares of common stock outstanding:
|
|
|
|
|
Basic and diluted
|
1,688
|
1,688
|
1,688
|
1,688
|
REGIONAL HEALTH
PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL
OPERATING METRICS (1)
|
|
Twelve Months
Ended
|
Twelve Months
Ended
|
Twelve Months
Ended
|
Twelve Months
Ended
|
Portfolio Operating
Metrics (1)
|
September 30,
2019
|
December 31,
2019
|
March 31,
2020
|
June 30,
2020
|
Occupancy
%
|
76.4%
|
76.5%
|
76.3%
|
75.1%
|
Quality Mix
(2)
|
28.0%
|
27.9%
|
27.7%
|
28.0%
|
Rent Coverage Before
Management Fees (3)
|
1.46
|
1.57
|
1.59
|
1.55
|
Rent Coverage After
Management Fees (3)
|
1.08
|
1.18
|
1.21
|
1.20
|
|
|
|
|
|
(1) Excludes three
managed facilities in Ohio
|
|
|
|
|
|
|
(2) Quality Mix
refers to all payor types less Medicaid.
|
|
|
|
|
|
|
(3) EBITDAR coverage
and EBITDARM coverage include information provided by the Company's
tenants. The Company has not independently verified this information, but has no
reason to believe such information to be inaccurate in any material
respect.
|
|
|
|
|
|
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content:http://www.prnewswire.com/news-releases/regional-health-properties-reports-second-quarter-2020-financial-results-301116006.html
SOURCE Regional Health Properties, Inc.