Delaware | 001-12996 | 62-1559667 | ||
(State or Other Jurisdiction of | (Commission File | (IRS Employer | ||
Incorporation) | Number) | Identification No.) |
1621 Galleria Boulevard, Brentwood, TN | 37027 | |
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition | ||||||||
Item 9.01. Financial Statements and Exhibits | ||||||||
SIGNATURES | ||||||||
EXHIBIT INDEX | ||||||||
EX-99.1 |
Number | Exhibit | |
99.1
|
Press Release dated March 7, 2011. |
ADVOCAT INC. |
||||
By: | /s/ L. Glynn Riddle, Jr. | |||
L. Glynn Riddle, Jr. | ||||
Chief Financial Officer | ||||
Company Contact:
|
Investor Relations: | |||
William R. Council, III
|
Cameron Associates | |||
President and CEO
|
Rodney OConnor | |||
(615) 771-7575
|
(212) 554-5470 |
| Revenue increased 8.5%, to $75.5 million, compared to $69.5 million. | ||
| Occupancy increased to 78.0% compared to 77.1%. | ||
| Medicare average daily census increased 3.2% to 521, compared to 505. Total skilled census, Medicare and managed care census combined, increased 5.7% to 591 compared to 559. | ||
| Medicare rates increased 14.5% following the implementation of the skilled nursing inflation increase, the effects of RUG IV and changes in patient acuity levels. | ||
| Medicaid rates increased 2.2% due to patient acuity levels and rate increases in certain states. | ||
| Delivery of Medicare Part B revenues increased by $500,000, or 25%. | ||
| Net income from continuing operations was $2.0 million compared to $44,000, or $0.34 per diluted common share compared to a loss of $0.01 per diluted common share, after deducting preferred stock dividends. | ||
| Funds provided by operations were $5.2 million versus $3.0 million or $0.90 compared to $0.51 per diluted common share. |
| Revenue increased 4.7%, to $290.1 million, compared to $277.0 million. | ||
| Occupancy increased to 78.1% compared to 76.6%. | ||
| Medicare average daily census increased 1.9% to 544, compared to 534. Total skilled census, Medicare and managed care census combined, increased 3.1%. |
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| Delivery of Medicare Part B revenues increased by $1.2 million. | ||
| Net income from continuing operations was $4.0 million compared to $1.9 million, or $0.62 per diluted common share, compared to $0.26 per diluted common share. | ||
| Funds provided by operations were $14.9 million compared to $13.1 million or $2.55 per diluted common share compared to $2.26 per diluted common share. |
Year Ended | ||||||||
December 31 | ||||||||
2010 | 2009 | |||||||
Skilled nursing occupancy |
78.1 | % | 76.6 | % | ||||
As a percent of total census: |
||||||||
Medicare census |
13.0 | % | 13.0 | % | ||||
Managed care census |
1.4 | % | 1.2 | % | ||||
As a percent of total revenues: |
||||||||
Medicare revenues |
30.7 | % | 30.8 | % | ||||
Medicaid revenues |
53.4 | % | 54.2 | % | ||||
Managed care revenues |
3.0 | % | 2.7 | % | ||||
Average rate per day: |
||||||||
Medicare |
$ | 403.67 | $ | 397.74 | ||||
Medicaid |
$ | 146.84 | $ | 143.65 | ||||
Managed care |
$ | 386.08 | $ | 378.85 |
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Date:
|
Tuesday, March 8, 2011 | |
Time:
|
9:00 A.M. Central, 10:00 A.M. Eastern | |
Webcast Links:
|
www.advocat-inc.com | |
Dial in numbers:
|
(877) 674-2413 (domestic) or (708) 290-1366 (international) The Operator will connect you to Advocat Inc.s Conference Call |
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December 31, | December 31, | |||||||
2010 | 2009 | |||||||
ASSETS: |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 8,862 | $ | 8,609 | ||||
Receivables, net |
23,916 | 21,711 | ||||||
Deferred income taxes |
4,207 | 4,792 | ||||||
Other current assets |
5,412 | 6,807 | ||||||
Total current assets |
42,397 | 41,919 | ||||||
Property and equipment, net |
38,180 | 37,362 | ||||||
Deferred income taxes |
12,408 | 13,804 | ||||||
Note receivable, net |
||||||||
Acquired leasehold interest, net |
9,380 | 9,764 | ||||||
Other assets, net |
3,153 | 2,602 | ||||||
TOTAL ASSETS |
$ | 105,518 | $ | 105,451 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY: |
||||||||
Current Liabilities |
||||||||
Current portion of long-term debt |
$ | 582 | $ | 2,278 | ||||
Trade accounts payable |
3,120 | 4,537 | ||||||
Accrued expenses: |
||||||||
Payroll and employee benefits |
11,047 | 9,314 | ||||||
Current portion of self-insurance reserves |
6,753 | 7,860 | ||||||
Other current liabilities |
4,479 | 5,596 | ||||||
Total current liabilities |
25,981 | 29,585 | ||||||
Noncurrent Liabilities |
||||||||
Long-term debt, less current portion |
23,819 | 22,551 | ||||||
Self-insurance reserves, less current portion |
11,847 | 12,235 | ||||||
Other noncurrent liabilities |
16,748 | 15,195 | ||||||
Total noncurrent liabilities |
52,414 | 49,981 | ||||||
PREFERRED STOCK |
4,918 | 6,192 | ||||||
SHAREHOLDERS EQUITY |
22,205 | 19,693 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
$ | 105,518 | $ | 105,451 | ||||
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For the Three Months | For the Year | |||||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
PATIENT REVENUES, NET |
$ | 75,490 | $ | 69,547 | $ | 290,130 | $ | 276,979 | ||||||||
EXPENSES: |
||||||||||||||||
Operating |
58,757 | 55,847 | 229,081 | 219,567 | ||||||||||||
Lease |
5,701 | 5,584 | 22,600 | 21,791 | ||||||||||||
Professional liability |
1,269 | 1,836 | 5,364 | 8,228 | ||||||||||||
General and administrative |
4,961 | 4,367 | 19,680 | 17,926 | ||||||||||||
Depreciation and amortization |
1,524 | 1,393 | 5,825 | 5,446 | ||||||||||||
72,212 | 69,027 | 282,550 | 272,958 | |||||||||||||
OPERATING INCOME |
3,278 | 520 | 7,580 | 4,021 | ||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Foreign currency transaction gain (loss) |
| | | 191 | ||||||||||||
Other income |
| | | 549 | ||||||||||||
Interest income |
2 | 2 | 2 | 161 | ||||||||||||
Interest expense |
(410 | ) | (454 | ) | (1,634 | (1,877 | ) | |||||||||
Debt retirement costs |
| | (127 | ) | | |||||||||||
(408 | ) | (452 | ) | (1,759 | ) | (976 | ) | |||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
2,870 | 68 | 5,821 | 3,045 | ||||||||||||
PROVISION FOR INCOME TAXES |
(830 | ) | (24 | ) | (1,858 | ) | (1,165 | ) | ||||||||
NET INCOME FROM CONTINUING OPERATIONS |
2,040 | 44 | 3,963 | 1,880 | ||||||||||||
DISCONTINUED OPERATIONS |
(296 | ) | 132 | (114 | ) | 721 | ||||||||||
NET INCOME |
1,744 | 176 | 3,849 | 2,601 | ||||||||||||
PREFERRED STOCK DIVIDENDS |
86 | 86 | 344 | 344 | ||||||||||||
NET INCOME FOR COMMON STOCK |
$ | 1,658 | $ | 90 | $ | 3,505 | $ | 2,257 | ||||||||
NET INCOME PER COMMON SHARE: |
||||||||||||||||
Per common share basic |
||||||||||||||||
Income from continuing operations |
$ | 0.34 | $ | (0.01 | ) | $ | 0.63 | $ | 0.27 | |||||||
Income from discontinued operations |
(0.05 | ) | 0.03 | (0.02 | ) | 0.13 | ||||||||||
$ | 0.29 | $ | 0.02 | $ | 0.61 | $ | 0.40 | |||||||||
Per common share diluted |
||||||||||||||||
Income (loss) from continuing operations |
0.34 | $ | (0.01 | ) | $ | 0.62 | $ | 0.26 | ||||||||
Income from discontinued operations |
(0.05 | ) | 0.03 | (0.02 | ) | 0.13 | ||||||||||
$ | 0.29 | $ | 0.02 | $ | 0.60 | $ | 0.39 | |||||||||
WEIGHTED AVERAGE COMMON SHARES: |
||||||||||||||||
Basic |
5,742 | 5,687 | 5,732 | 5,678 | ||||||||||||
Diluted |
5,814 | 5,917 | 5,854 | 5,797 | ||||||||||||
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Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
NET INCOME |
$ | 1,744 | $ | 176 | $ | 3,849 | $ | 2,601 | ||||||||
Income (loss) from discontinued operations |
(296 | ) | 132 | (114 | ) | 721 | ||||||||||
Net income from continuing operations |
2,040 | 44 | 3,963 | 1,880 | ||||||||||||
Adjustments to reconcile net income from
continuing operations to funds provided
by operations: |
||||||||||||||||
Depreciation and amortization |
1,524 | 1,393 | 5,825 | 5,446 | ||||||||||||
Provision for doubtful accounts |
510 | 376 | 2,127 | 1,965 | ||||||||||||
Deferred income tax provision |
1,553 | (179 | ) | 2,041 | (528 | ) | ||||||||||
Provision (benefit) for self-insured professional
liability, net of cash payments |
(673 | ) | 922 | (754 | ) | 2,774 | ||||||||||
Stock-based compensation |
110 | 133 | 597 | 689 | ||||||||||||
Amortization of deferred balances |
46 | 99 | 213 | 382 | ||||||||||||
Provision for leases in excess of cash payments |
113 | 225 | 782 | 1,254 | ||||||||||||
Other |
| | 127 | (781 | ) | |||||||||||
FUNDS PROVIDED BY OPERATIONS |
$ | 5,223 | $ | 3,013 | $ | 14,921 | $ | 13,081 | ||||||||
FUNDS PROVIDED BY OPERATIONS PER SHARE: |
||||||||||||||||
Basic |
$ | 0.91 | $ | 0.53 | $ | 2.60 | $ | 2.30 | ||||||||
Diluted |
$ | 0.90 | $ | 0.51 | $ | 2.55 | $ | 2.26 | ||||||||
WEIGHTED AVERAGE COMMON SHARES: |
||||||||||||||||
Basic |
5,742 | 5,687 | 5,732 | 5,678 | ||||||||||||
Diluted |
5,814 | 5,917 | 5,854 | 5,797 | ||||||||||||
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As Reported | Adjustments for | As Adjusted | ||||||||||
Year Ended | non-recurring | Year Ended | ||||||||||
December 31, | EMR and | December 31, | ||||||||||
2010 | Severance Costs | 2010 | ||||||||||
Patient revenues |
$ | 290,130 | | $ | 290,130 | |||||||
General and administrative expense |
$ | 19,680 | $ | (847 | ) | $ | 18,833 | |||||
General and
administrative expense as a % of patient revenue |
6.8 | % | 6.5 | % |
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For the Three Months Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||
Skilled | Medicare | Medicaid | ||||||||||||||||||||||||||||||||||
As of | Nursing | Occupancy | Room and | Room and | ||||||||||||||||||||||||||||||||
December 31, 2010 | Weighted | (Note 1) | 2010 | Board | Board | |||||||||||||||||||||||||||||||
Licensed | Available | Average | Licensed | Available | Q4 | Revenue | Revenue | |||||||||||||||||||||||||||||
Nursing | Nursing | Daily | Nursing | Nursing | Medicare | Revenue | PPD | PPD | ||||||||||||||||||||||||||||
Region | Beds | Beds | Census | Beds | Beds | Utilization | ($ in millions) | (Note 2) | (Note 2) | |||||||||||||||||||||||||||
Alabama |
790 | 783 | 696 | 88.1 | % | 88.9 | % | 14.2 | % | $ | 14.2 | $ | 465.15 | $ | 168.42 | |||||||||||||||||||||
Arkansas |
1,311 | 1,160 | 946 | 72.2 | % | 81.5 | % | 14.6 | % | 16.8 | 409.83 | 149.54 | ||||||||||||||||||||||||
Kentucky |
778 | 745 | 672 | 86.3 | % | 90.2 | % | 10.9 | % | 13.2 | 423.76 | 172.48 | ||||||||||||||||||||||||
Tennessee |
617 | 576 | 498 | 80.7 | % | 86.4 | % | 15.7 | % | 9.6 | 442.05 | 147.16 | ||||||||||||||||||||||||
Texas |
1,868 | 1,675 | 1,374 | 73.6 | % | 82.0 | % | 9.6 | % | 21.7 | 482.51 | 125.20 | ||||||||||||||||||||||||
Total |
5,364 | 4,939 | 4,186 | 78.0 | % | 84.8 | % | 12.4 | % | $ | 75.5 | $ | 445.50 | $ | 148.52 | |||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||
Skilled | Medicare | Medicaid | ||||||||||||||||||||||||||||||||||
As of | Nursing | Occupancy | Room and | Room and | ||||||||||||||||||||||||||||||||
December 31, 2010 | Weighted | (Note 1) | 2010 | Board | Board | |||||||||||||||||||||||||||||||
Licensed | Available | Average | Licensed | Available | YTD | Revenue | Revenue | |||||||||||||||||||||||||||||
Nursing | Nursing | Daily | Nursing | Nursing | Medicare | Revenue | PPD | PPD | ||||||||||||||||||||||||||||
Region | Beds | Beds | Census | Beds | Beds | Utilization | ($ in millions) | (Note 2) | (Note 2) | |||||||||||||||||||||||||||
Alabama (Note 3) |
790 | 783 | 687 | 86.9 | % | 87.7 | % | 13.6 | % | $ | 53.2 | $ | 421.44 | $ | 166.30 | |||||||||||||||||||||
Arkansas |
1,311 | 1,160 | 961 | 73.3 | % | 82.8 | % | 14.6 | % | 65.1 | 382.90 | 147.31 | ||||||||||||||||||||||||
Kentucky (Note 4) |
778 | 745 | 665 | 85.2 | % | 89.2 | % | 11.4 | % | 51.0 | 394.85 | 172.85 | ||||||||||||||||||||||||
Tennessee |
617 | 576 | 495 | 80.2 | % | 85.9 | % | 16.3 | % | 35.5 | 395.80 | 142.44 | ||||||||||||||||||||||||
Texas |
1,868 | 1,675 | 1,385 | 74.2 | % | 82.7 | % | 11.1 | % | 85.3 | 420.30 | 123.86 | ||||||||||||||||||||||||
Total |
5,364 | 4,939 | 4,193 | 78.1 | % | 84.9 | % | 13.0 | % | $ | 290.1 | $ | 403.67 | $ | 146.84 | |||||||||||||||||||||
Note 1:
|
The number of Licensed Nursing Beds is based on the licensed capacity of the facility. The Company has historically reported its occupancy based on licensed nursing beds. The number of Available Nursing Beds represents licensed nursing beds less beds removed from service. Available nursing beds is subject to change based upon the needs of the facilities, including configuration of patient rooms, common usage areas and offices, status of beds (private, semi-private, ward, etc.) and renovations. Occupancy is measured on a weighted average basis. | |
Note 2:
|
These Medicare and Medicaid revenue rates include room and board revenues but do not include any ancillary revenues related to these patients. | |
Note 3:
|
The Alabama region includes nursing centers in Alabama and Florida. | |
Note 4:
|
The Kentucky region includes nursing centers in Kentucky, West Virginia and Ohio. Licensed and available beds increased by 15 in Kentucky in January 2010, following the expansion of a facility. |
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Medicare Average Daily | ||||||||||||||||
Occupancy(1) | Census | |||||||||||||||
Q4 | LTM(2) | Q4 | LTM(2) | |||||||||||||
Renovation Completion Date | 2010 | Prior | 2010 | Prior | ||||||||||||
1st renovation January 2006 |
85.4 | % | 64.9 | % | 9.2 | 8.1 | ||||||||||
2nd renovation July 2006 |
65.6 | % | 71.2 | % | 12.5 | 12.3 | ||||||||||
3rd renovation August 2006 |
73.5 | % | 45.1 | % | 8.9 | 5.3 | ||||||||||
4th renovation October 2006 |
80.1 | % | 71.9 | % | 11.1 | 8.6 | ||||||||||
5th renovation February 2007 |
71.1 | % | 56.2 | % | 11.0 | 8.0 | ||||||||||
6th renovation April 2007 |
52.8 | % | 47.5 | % | 13.4 | 12.7 | ||||||||||
7th renovation July 2007 |
78.3 | % | 85.0 | % | 6.9 | 17.4 | ||||||||||
8th renovation January 2008 |
72.8 | % | 50.9 | % | 10.5 | 8.9 | ||||||||||
9th renovation October 2008 |
88.4 | % | 83.0 | % | 14.5 | 17.2 | ||||||||||
10th renovation November 2008 |
85.3 | % | 80.8 | % | 15.2 | 12.2 | ||||||||||
11th renovation March 2009 |
75.8 | % | 62.5 | % | 7.2 | 7.0 | ||||||||||
12th renovation November 2009 |
87.5 | % | 86.7 | % | 27.5 | 24.2 | ||||||||||
13th renovation January 2010 |
97.4 | % | 95.6 | % | 6.1 | 4.5 | ||||||||||
14th renovation July 2010 |
95.1 | % | 77.6 | % | 23.4 | 11.8 | ||||||||||
15th renovation August 2010 |
61.8 | % | 68.8 | % | 12.6 | 19.0 | ||||||||||
Total |
77.3 | % | 69.8 | % | 190.0 | 177.2 |
(1) | Occupancy based on licensed beds. | |
(2) | Last Twelve Months prior to commencement of construction. |
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