Brentwood, TN (November 3, 2016) — Diversicare Healthcare Services, Inc. (NASDAQ:DVCR), a premier provider of long-term care services, today announced its results for the third quarter ended September 30, 2016.
On October 27, 2016, the Board of Directors declared a quarterly dividend of $0.055 per common share payable to shareholders of record as of December 31, 2016, to be paid on January 13, 2017.
- The Company assumed operations of 22 facilities in Mississippi (10) and Alabama (12) previously operated by Golden Living, effective October 1 and November 1, 2016, respectively. The acquisition provides for a broad expansion of the Company’s presence in Alabama and entrance into Mississippi.
- The portfolio is expected to contribute in excess of $185 million in annual revenues.
- Completion of this transaction increases our number of nursing centers operated to 76 and 8,453 skilled nursing beds.
Third Quarter 2016 Highlights
- Net revenue decreased 0.8% to $97.3 million in the third quarter of 2016 from $98.1 million in the third quarter of 2015 primarily attributable to the decline in skilled patient mix and occupancy.
- Net income decreased from $0.4 million in the third quarter of 2015 to a net loss of $1.0 million in the third quarter of 2016.
- The third quarter results include non-recurring acquisition expenses totaling $0.5 million. Adjusting for these items, Adjusted EBITDA of $2.2 million is reported for the quarter.
See below for a reconciliation of all GAAP and non-GAAP financial results.
Commenting on the results, Kelly Gill, Diversicare’s CEO, stated, “We are excited about our expanded presence in the state of Alabama which builds upon our entrance into the state of Mississippi last month. The combined addition of 22 centers now brings our total facility count to 76. In preparation for this sizable growth we made considerable strategic investments in our technology platform, which not only enables us to assimilate a portfolio of this scale, but also prepares us to continue our growth path in the years ahead. Since beginning our acquisition phase in the fall of 2013, we now have acquired 46 properties.
Mr. Gill continued, “While we have focused on completing this significant transaction, we have also remained mindful of the centers in our legacy portfolio. For the 2nd consecutive year, these centers have continued to provide industry-leading outcomes of Quality Measures under the CMS 5 Star system and are ranked #1 nationally as compared to our peer group. While quality of care outcomes is extremely important to our performance metrics, we also understand this continued to be a challenging quarter financially due to the softening of our skilled patient mix as well as the cost associated with the completion of the Golden Living transaction. Our skillful and dedicated operational leaders understand these challenges and are focused on improving financial performance by sharing my belief that being the industry leader in quality of care outcomes is the best and most sure pathway to being the preferred referral destination in each of the markets we serve.”
View Full Results
– – – – –
Kelly J. Gill
Chief Executive Officer
James R. McKnight, Jr.
Chief Financial Officer