BRENTWOOD, TN, (February 28, 2019) – 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, 2018.
Fourth Quarter 2018 Highlights
- Net income from continuing operations was $0.4 million in the fourth quarter of 2018, compared to a net loss from continuing operations of $(5.9) million in the fourth quarter of 2017.
- EBITDAR for the quarter was $20.6 million, compared to $18.3 million in the fourth quarter of 2017.
- The Company sold three centers in Kentucky during December 2018 for $18.7 million, which resulted in a gain of $4.8 million. The proceeds were used to reduce debt on our mortgage and revolver facilities.
See below for a reconciliation of all GAAP and non-GAAP financial results.
Commenting on the quarter and year, Jay McKnight, President and Chief Executive Officer, said, “The fourth quarter saw the continuation of headwinds facing our industry, which resulted in a decline in census for Diversicare, specifically within skilled mix. Year over year our admissions remained relatively flat, but average length of stay decreased by 17.9 days, resulting in a decline in skilled mix from 14.7% in the year ago quarter to 14.1% in the fourth quarter of 2018. We continue to explore other service options and opportunities within our business, including the analysis of our current portfolio and our overall operating platform. In December 2018, we made a strategic decision to sell three of our centers in Kentucky as part of improving our leverage and overall risk profile. We will continue to assess the market and our portfolio in the current market going forward.”
Mr. McKnight concluded, “As always, I am extremely appreciative of the hard work and values of our Diversicare team members and am grateful for their commitment to those we care for in our centers. Diversicare has, what we believe, is the best team in long-term care and continues to be a quality care leader in our industry.”View Full Results
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James R. McKnight, Jr.
Chief Financial Officer