BRENTWOOD, TN, (May 2, 2019) – Diversicare Healthcare Services, Inc. (NASDAQ: DVCR), a premier provider of long-term care services, today announced its results for the first quarter ended March 31, 2019.
First Quarter 2019 Highlights
- Net loss from continuing operations was $(3.3) million, or $(0.52) per share, in the first quarter of 2019, compared to net loss from continuing operations of $(0.1) million, or $(0.01) per share, in the first quarter of 2018.
- Our adjusted EBITDAR for the quarter was $15.5 million, compared to $18.2 million in the first quarter of 2018.
- Under the new Accounting Standard Codification (“ASC”) 842, the Company recorded net leased assets and liabilities of $384 million and $389 million, respectively, as of January 1, 2019.
See below for a reconciliation of all GAAP and non-GAAP financial results.
Commenting on the quarter, Jay McKnight, President and Chief Executive Officer, said, “Our operational and financial performance during the first quarter of 2019 continued to reflect the challenges we have been experiencing in our industry, but we do have some opportunities for improvement on the horizon. Our Medicare, Medicaid, and Managed Care rates all increased during the quarter. The increases are a combination of cost reimbursement along with acuity factors for our centers. We have enrolled the majority of our Texas centers in the state’s Quality Incentive Payment Program, which we expect to be effective for these centers
in September of this year. This program rewards operators who maintain high quality measures with enhanced Medicaid reimbursements. We are implementing cost reductions to align our overhead cost structure with the current environment. CMS has proposed a net 2.5% market basket increase for this coming October. Year over year, our skilled mix patients decreased from 16.1% in the first quarter of 2018 to 14.9% in the first quarter of 2019. It should be noted though that this quarter was the highest skilled mix we have seen since the first quarter of 2018.”
Mr. McKnight concluded, “I am extremely grateful for and proud of our team members as they continue to be devoted to our
mission, which is improving every life we touch by providing exceptional healthcare and exceeding expectations.”
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James R. McKnight, Jr.
Chief Financial Officer