Brentwood, TN (March 02, 2017) — Diversicare Healthcare Services, Inc. (NASDAQ:DVCR), a premier provider of long-term care services, today announced its results for the fourth quarter ended December 31, 2016. The Company’s revenue grew to $135.0 million, an increase of 37.8% year-over-year.
On February 24, 2017, the Board of Directors declared a quarterly dividend of $0.055 per share per common share payable to shareholders of record as of March 31, 2017, to be paid on April 14, 2017.
Fourth Quarter 2016 Highlights
- Net Revenue increased 37.8% to $135.0 million in the fourth quarter of 2016 from $98.0 million in the fourth quarter of 2015, primarily due to the 22 centers acquired during the fourth quarter of 2016.
- Net income increased to $1.4 million in the fourth quarter of 2016 compared to $0.9 million in the fourth quarter of 2015.
- EPS from continuing operations improved to income of $0.23 in the fourth quarter of 2016 as compared to $0.21 in the fourth quarter of 2015.
- Adjusted EBITDA was $6.0 million in the fourth quarter of 2016 compared to $4.2 million in the fourth quarter of 2015.
- During the quarter the Company and its joint venture pharmacy partner sold the Texas-based pharmacy. The Company recognized a gain on the sale of $1.4 million.
- As previously announced, the Company completed a transaction with Golden Living to assume the operations of 22 centers in Alabama and Mississippi in the fourth quarter of 2016.
See below for a reconciliation of all GAAP and non-GAAP financial results.
Commenting on the results, Kelly Gill, Diversicare’s CEO, stated, “I am pleased with the progress we’ve made in the integration of our 22 acquired centers from Golden Living. The success we are seeing is a direct reflection of the capabilities we have developed as an organization and the scalability of our operating platform. While there is more work to be done on an acquisition of this size, we have already achieved a significant degree of normalcy of operations. I want to thank our team of dedicated Diversicare professionals for their tireless effort to make this integration process so successful.
Mr. Gill continued, “Our same-center fourth quarter results showed an improvement from prior quarters this year. This and the inclusion of the revenue and earnings from the 22 newly acquired centers resulted in revenue growth in the fourth quarter of 37.8% to $135 million and EBITDA grew by 41.3% to $5.9 million compared to the fourth quarter of 2015.
Mr. Gill concluded, “Since the third quarter of 2013 we have acquired and leased 36 additional centers net of dispositions through a combination of financing means. The net result of this accretive growth has doubled the revenue of the company over this time.”[button open_new_tab=”true” color=”accent-color” hover_text_color_override=”#fff” size=”large” url=”http://www.dvcr.com/wp-content/uploads/2018/10/DVCR-FY16-Q4-Earnings-Release-FINAL.pdf” text=”View Full Results” color_override=””]
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Kelly J. Gill
Chief Executive Officer
James R. McKnight, Jr.
Chief Financial Officer