Brentwood, TN (August 3, 2017) — Diversicare Healthcare Services, Inc. (NASDAQ:DVCR), a premier provider of long-term care services, today announced its results for the second quarter ended June 30, 2017.
On July 27, 2017, the Board of Directors declared a quarterly dividend of $0.055 per common share payable to shareholders of record as of September 30, 2017, to be paid on October 16, 2017.
Second Quarter 2017 Highlights
- Net revenue increased to an all-time high of $142.6 million in the second quarter of 2017 from $95.8 million in the second quarter of 2016, an increase of 48.8%, primarily attributable to the 22 Alabama and Mississippi nursing centers acquired in the fourth quarter of 2016.
- Facility-level operating income was $29.4 million, or 20.6% of net revenue, an increase of $12.0 million from the prior year.
- Net income from continuing operations was $0.4 million, or $0.06 per share, in the second quarter of 2017, compared to a net loss from continuing operations of $2.2 million, or $0.35 per share, in the second quarter of 2016.
- Adjusted EBITDA was $4.8 million in the second quarter of 2017 compared to $1.9 million in the second quarter of 2016.
- On July 1, 2017, the Company purchased the assets of a 103-bed center in Selma, Alabama for $8.75 million.
See below for a reconciliation of all GAAP and non-GAAP financial results.
Commenting on the results, Kelly Gill, Diversicare’s CEO, stated, “The second quarter 2017 proved to be a successful quarter for the Company as our net revenue increased to an all-time high of $142.6 million. We continue to experience accretive results from the centers we acquired from Golden Living in the fourth quarter 2016 and stable organic growth within our same-center group.
Mr. Gill continued, “Additionally, as previously announced, we added another center to our portfolio on July 1st, bringing our total centers operated to 77 and owned real estate to 18. Since we began our focused expansion plan, this center marks the 47th acquisition and is the 11th acquisition that included the purchase of the real estate. I’m proud and grateful for the strides and efforts made by our team to seamlessly integrate this new center onto our operating platform.
Mr. Gill concluded, “We continue to see positive synergies from our strategic investments and hardworking team members, which are reflective in our financial results. I look forward to building upon our success and sharing our results in the future.”[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-FY17-Q2-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