Regional Health Properties, Inc. · OTC:RHEP
Regional Health Properties — Adcare Health Systems — FY2013 Earnings Presentation
17 slides from Regional Health Properties's earnings presentation, Mar 28, 2014
Slide 1: Fourth Quarter and Full Year 2013 Conference Call Presentation
Fourth Quarter and Full Year 2013 Conference Call Presentation NYSE MKT: ADK AdCare Health Systems, Inc. “Setting the Standard for Senior Care” ® Exhibit 99.2
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: Agenda
The Finest in Senior Living Management NYSE MKT: ADK Agenda Strategic & Operational Update Q4 & YTD 2013 Financial Results Business Update Corporate Governance Matters 3
Slide 4: Strategic Update
The Finest in Senior Living Management NYSE MKT: ADK Strategic Update 4 Multiple channels for future growth Organic growth through improving operating margins within all of our facilities Strategic acquisitions … continual evaluation of numerous opportunities to leverage current infrastructure and e
Slide 5: Key Operating Metrics
The Finest in Senior Living Management NYSE MKT: ADK Key Operating Metrics 5
Slide 6: Next Steps: Path to 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 14% at 4Q’13 Total Occupancy 2013 = 77% 6 Increase Occupancy and Skilled Mix Skilled Sub-Acute patients are twice as profitable on a per patient da
Slide 7: Next Steps: Path to Profitability, continued
The Finest in Senior Living Management NYSE MKT: ADK Next Steps: Path to Profitability, continued 7 Selectively exit unprofitable facilities Strategically acquire facilities Reviewing three facilities for possible divestiture with total operating 2013 losses of apx. $1.8M Two of these facilities are
Slide 8: Next Steps: Path to Profitability, continued
The Finest in Senior Living Management NYSE MKT: ADK Next Steps: Path to Profitability, continued 8 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 completed
Slide 9: 4Q and FY 2013 Key Financial Results
The Finest in Senior Living Management NYSE MKT: ADK 9 1) Calculated as a % of patient care revenue 4Q 2012 4Q 2013 $53 $56 4Q and FY 2013 Key Financial Results FY 2012 FY 2013 $194 $223 Cost of service1 87.6% 83.1% 83.7% 84.1% G&A 9.0% 9.0% 8.8% 8.5% 4.6% 14.8% Revenues continue to improve Slight u
Slide 10: Annual Performance
The Finest in Senior Living Management NYSE MKT: ADK Annual Performance Expense structure improved; Re-focusing on top-line growth 10 $52.8 $53.1 $55.8 $56.0 $55.5 $55.6 $47.8 $50.5 $51.9 $51.3 $50.1 $50.3 $5.0 $2.6 $3.9 $4.7 $5.4 $5.3 $ m ill io n s Revenue Operating Expenses * Adj. EBITDAR Q3 13 Q
Slide 11: Q4 2013 Statement of Operations Summary
The Finest in Senior Living Management NYSE MKT: ADK Q4 2013 Statement of Operations Summary 11 Consolidated Income Statement ($ in millions except %, shares & EPS) Q4 2013 12/31/2013 Q4 2012 12/31/2012 Revenues $55.6 $53.1 Gross Profit $9.9 $7.0 Gross Margin % 17.8% 13.2% Operating Expenses $55.1 $
Slide 12: Full Year 2013 Statement of Operations Summary
The Finest in Senior Living Management NYSE MKT: ADK Full Year 2013 Statement of Operations Summary 12 Consolidated Income Statement ($ in millions except %, shares & EPS) Full Year 2013 Full Year 2012 Revenues $222.8 $194.1 Gross Profit $37.2 $33.4 Gross Margin % 16.7% 17.2% Operating Expenses $222
Slide 13: Balance Sheet Summary
The Finest in Senior Living Management NYSE MKT: ADK Balance Sheet Summary 13 ($ in Millions) 12/31/2013 12/31/2012 Cash & Cash Equivalents $19.4 $15.9 Accounts Receivable, net $23.6 $26.8 Total Current Assets $53.6 $51.9 Property & Equipment, Net $143.4 $151.0 Total Assets $226.4 $235.2 Total Curre
Slide 14: Business Update
The Finest in Senior Living Management NYSE MKT: ADK 297 399 0 50 100 150 200 250 300 350 400 450 At Acquisition At December 31 A ve ra ge D ai ly Ce n su s Average Daily Medicare Census Optimization Business Update (as of 3/2014) 14 $405 $443 0 50 100 150 200 250 300 350 400 450 500 At Acquisition
Slide 15: Corporate Governance Matters
The Finest in Senior Living Management NYSE MKT: ADK Corporate Governance Matters Revised Director and Executive compensation to better align leadership with shareholders Reconstituted and reduced the size of the Board Added Michael Fox as a new Independent Director Added Brent Morrison as a non-vot
Slide 16: 2014 Outlook
The Finest in Senior Living Management NYSE MKT: ADK 2014 Outlook Revenue Expect full-year 2014 revenue of $225M to $250M. Representing 1% to 12% growth compared to fiscal 2013. Reflects lower revenues from exiting non-core facilities which AdCare manages but does not own. Expect year-over-year impr
Slide 17: Q & A
The Finest in Senior Living Management NYSE MKT: ADK Q & A Company Contacts Boyd Gentry, CEO Ron Fleming, CFO 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 Thank Yo