Regional Health Properties, Inc. · OTC:RHEP
Regional Health Properties — Adcare Health Systems — Shareholder Meeting (December 2013)
23 slides from Regional Health Properties's shareholder meeting presentation, Dec 11, 2013
Slide 1: Annual Meeting December 2013
Annual Meeting December 2013 NYSE MKT: ADK AdCare Health Systems, Inc. “Setting the Standard for Senior Care” ® EXHIBIT 99.1
Slide 2: Forward-Looking Statements
The Finest in Senior Living Management NYSE MKT: ADK Forward-Looking Statements Any forward-looking statements made in this presentation are based on management's current expectations, assumptions and beliefs about the Company’s business and the environment in which AdCare operates. These statements
Slide 3: AdCare 2013 Annual Meeting Presentation
The Finest in Senior Living Management NYSE MKT: ADK AdCare 2013 Annual Meeting Presentation • Historical Highlights • Value Creation Model • Recent Progress • Next Steps: Path to Profitability • Corporate Governance Enhancement • Questions and Answers 3
Slide 4: Historical Highlights
The Finest in Senior Living Management NYSE MKT: ADK AdCare 2013 Annual Meeting Presentation • Historical Highlights • Value Creation Model • Recent Progress • Next Steps: Path to Profitability • Corporate Governance Enhancement • Questions and Answers 4
Slide 5: Building from existing Ohio base of beds/units in 2010
The Finest in Senior Living Management NYSE MKT: ADK Building from existing Ohio base of 526 beds/units in 2010 6 3 0 1 ,1 1 3 1 ,2 4 7 1 ,5 5 1 1 ,8 5 0 1 ,9 5 6 2 ,1 9 0 2 ,2 8 5 2 ,6 8 7 3 ,0 0 1 3 ,0 8 1 3 ,2 0 9 3 ,3 8 8 3 ,6 8 8 4 ,0 7 2 4 ,1 4 9 4 ,2 8 3 4 ,3 9 2 4 ,5 1 3 4 ,7 8 1 ALF CVIE 7-
Slide 6: Historical Highlights: Revenue Growth
The Finest in Senior Living Management NYSE MKT: ADK Historical Highlights 6 $27 $53 $151 $202 $225 2009 2010 2011 2012 2013 annualized Revenue Growth ($ in Millions)
Slide 7: Where we operate
The Finest in Senior Living Management NYSE MKT: ADK MN IA MO AR LA WI IL IN MI PA OH NY VA WV KY TN MS AL GA SC NC OK ME KS NE SD ND FL NH VT MA RI CT NJ DE DC MD Where we operate… M&A campaign expanded AdCare’s presence beyond its original base in Ohio to Georgia, Alabama, North Carolina, Oklahoma
Slide 8: Value Creation Model
The Finest in Senior Living Management NYSE MKT: ADK AdCare 2013 Annual Meeting Presentation • Historical Highlights • Value Creation Model • Recent Progress • Next Steps: Path to Profitability • Corporate Governance Enhancement • Questions and Answers 8
Slide 9: Optimization Strategy & Process
The Finest in Senior Living Management NYSE MKT: ADK Optimization Strategy & Process Valuation creation AdCare’s recent acquisitions have had an average facility Medicare rate of $405 per day at the time of acquisition vs. company’s average facility Medicare rate of $449 at Sept. 2013. Identify Faci
Slide 10: Recent Optimization Example: Glenvue Health & Rehab
The Finest in Senior Living Management NYSE MKT: ADK Recent Optimization Example: Glenvue Health & Rehab Once under the AdCare umbrella, the company has effectively optimized acquired facilities 15 months after acquiring Glenvue, AdCare was able to raise the average daily Medicare census from 10 to
Slide 11: Facility Optimization: Glenvue Health & Rehab Performance Comparison
The Finest in Senior Living Management NYSE MKT: ADK Facility Optimization: Glenvue Health & Rehab Performance Comparison* 11 ($ thousands) At Acquisition Fifth Quarter Under AdCare Urban Facility Example Annualized Annualized Jul-Sept 2013 Revenues $6,419 $9,543 EBITDA $ $566 $2,137 EBITDA % 8.8% 2
Slide 12: Portfolio Optimization
The Finest in Senior Living Management NYSE MKT: ADK 297 399 0 50 100 150 200 250 300 350 400 450 At Acquisition At Sept. 2013 A ve ra ge D ai ly Ce n su s Average Daily Medicare Census Optimization Portfolio Optimization 12 Over the past year, AdCare has been able to significantly increase the aver
Slide 13: Ownership of Facilities Key to Value
The Finest in Senior Living Management NYSE MKT: ADK Ownership of Facilities Key to Value Company Ticker EV EBITDA % Owned Unlock Real Estate Value The Ensign Group ENSG $1.12B $121.3M 81% Kindred Healthcare KND $2.00B $386.7M 21% Diversicare Healthcare DVCR $76.3M $6.2M 25% Skilled Healthcare SKH $
Slide 14: Recent Progress
The Finest in Senior Living Management NYSE MKT: ADK AdCare 2013 Annual Meeting Presentation • Historical Highlights • Value Creation Model • Recent Progress • Next Steps: Path to Profitability • Corporate Governance Enhancement • Questions and Answers 14
Slide 15: Annual Performance
The Finest in Senior Living Management NYSE MKT: ADK 15 Annual Performance Expense structure improved; Re-focusing on top-line growth 15 $53.2 $53.5 $56.2 $56.4 $55.9 $48.2 $51.0 $52.3 $51.7 $50.5 $5.0 $2.5 $3.9 $4.7 $5.4 $ m ill io n s Revenue Operating Expenses* Adj. EBITDAR Q3 13 Q2 13 Q1 13 Q4 1
Slide 16: Next Steps: Path to Profitability
The Finest in Senior Living Management NYSE MKT: ADK AdCare 2013 Annual Meeting Presentation • Historical Highlights • Value Creation Model • Recent Progress • Next Steps: Path to Profitability • Corporate Governance Enhancement • Questions and Answers 16
Slide 17: Profitability
The Finest in Senior Living Management NYSE MKT: ADK Next Steps: Path to Profitability ADK has increased the Skilled Mix of new facilities from ~ 10% to 15% at 3Q’13 Total Occupancy 3Q’13 YTD = 77% 17 Increase Occupancy and Skilled Mix Skilled Sub-Acute patients are twice as profitable on a per pati
Slide 18: Profitability, continued
The Finest in Senior Living Management NYSE MKT: ADK Next Steps: Path to Profitability, continued 18 Selectively exit unprofitable facilities Strategically acquire facilities Reviewing three facilities for possible divestiture with total YTD annualized losses of apx. $1M These facilities are leased
Slide 19: Profitability, continued: HUD refinancing
The Finest in Senior Living Management NYSE MKT: ADK Next Steps: Path to Profitability, continued 19 Selectively refinance facility mortgage debt with lower cost HUD financing ADK has 24 separate mortgages totaling $136M at an average interest rate of 6.6% HUD refinancing is currently being complete
Slide 20: Corporate Governance Enhancement
The Finest in Senior Living Management NYSE MKT: ADK AdCare 2013 Annual Meeting Presentation • Historical Highlights • Value Creation Model • Recent Progress • Next Steps: Path to Profitability • Corporate Governance Enhancement • Questions and Answers 20
Slide 21: Corporate Governance Matters
The Finest in Senior Living Management NYSE MKT: ADK Corporate Governance Matters Annual Shareholder Meeting: Moved to Atlanta New Director: Michael Fox Significant shareholder Controls 750,000 ADK shares Smaller, Reconstituted Board Have accepted the resignation of three legacy directors effective
Slide 22: Questions and Answers
The Finest in Senior Living Management NYSE MKT: ADK AdCare 2013 Annual Meeting Presentation • Historical Highlights • Value Creation Model • Recent Progress • Next Steps: Path to Profitability • Corporate Governance Enhancement • Questions and Answers 22
Slide 23: For More Information
The Finest in Senior Living Management NYSE MKT: ADK For More Information Company Contacts Boyd Gentry, CEO AdCare Health Systems, Inc., Atlanta, Georgia Tel 678.869.5116 • www.adcarehealth.com Investor Relations Brett Maas, Managing Partner Hayden IR • www.haydenir.com • Tel 646.536.7331 23
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