Regional Health Properties, Inc. · OTC:RHEP
Regional Health Properties — Adcare Health Systems — Q1 2014 Earnings Presentation
16 slides from Regional Health Properties's earnings presentation, May 8, 2014
Slide 1: First Quarter 2014 Conference Call Presentation
First Quarter 2014 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 Q1 Financial Detail Business Update 3
Slide 4: Strategic Update
The Finest in Senior Living Management NYSE MKT: ADK Strategic Update 4 Improved operational and financial controls provide a stable foundation for growth Facility level improvements Increasing occupancy levels Increasing % of higher margin services Cost containment Multiple channels for future grow
Slide 5: Key Operating Metrics
The Finest in Senior Living Management NYSE MKT: ADK Key Operating Metrics 5 YTD Stats (SNF Only) Q1 13 Q2 13 Q3 13 Q4 13 2013 Q1 14 Facilities 32 32 32 32 32 32 Operational Beds 3,548 3,548 3,548 3,548 3,548 3,548 Occupancy 77.0% 77.4% 77.2% 77.0% 77.2% 77.4% Average Daily Census: Skilled 447 436 3
Slide 6: Increase Occupancy and Skilled Mix Path to Profitability
The Finest in Senior Living Management NYSE MKT: ADK Increase Occupancy and Skilled Mix Path to Profitability 6 • Total 2013 occupancy was 77%. Further increasing custodial residents leverages the existing operational model and fixed costs. • Skilled mix has increased from ~10% at the time a facilit
Slide 7: Key Financial Metrics
The Finest in Senior Living Management NYSE MKT: ADK 7 (1) Calculated as a % of patient care revenue (2) Excludes Amortization of stock-based comp $46,007 $45,450 1Q 2013 1Q 2014 1Q 2014 Key Financial Metrics Cost of services and G&A trending down for improved operating margins. ($ in thousands) $4,
Slide 8: Future Expense Reductions
The Finest in Senior Living Management NYSE MKT: ADK Future Expense Reductions Targeting $3.3M in Additional Annualized Expense Reductions 8 Targets Support Team Restructuring Centralizing Payroll Processing Support Services: Centralize, insource or outsource support services when most appropr
Slide 9: Region Case Study: Little Rock
The Finest in Senior Living Management NYSE MKT: ADK Region Case Study Little Rock 9 Northridge North Little Rock, AR West Markham Little Rock, AR Woodland Hills Little Rock, AR Cumberland Little Rock, AR ($ in thousands) Q1 13 Q4 13 Q1 14 Revenue $6,191 $7,257 $8,337 Total Beds 511 511 511 Occupanc
Slide 10: Clustering: Little Rock locations near large hospitals
The Finest in Senior Living Management NYSE MKT: ADK Clustering AdCare’s Little Rock locations strategically near large hospitals 10 Little Rock AdCare Locations and Key Hospitals > Aligning offerings with each hospital’s unique PAC needs > Collaborating on quality initiatives > Sharing medical lead
Slide 11: Annual Performance Steady and Continual Improvement
The Finest in Senior Living Management NYSE MKT: ADK Annual Performance Steady and Continual Improvement Across the Board 11 $52.3 $52.2 $54.7 $54.9 $54.3 $54.5 $54.9 $47.3 $49.3 $50.7 $50.1 $48.9 $49.1 $49.5 $5.0 $2.9 $4.0 $4.8 $5.4 $5.4 $5.4 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Revenue Operat
Slide 12: Q1 2014 Statement of Operations Summary
The Finest in Senior Living Management NYSE MKT: ADK Q1 2014 Statement of Operations Summary 12 Consolidated Income Statement ($ in millions except % & EPS) Q1 2014 Q1 2013 Revenues $54.9 $54.7 Gross Profit 9.5 8.7 Gross Margin % 17.3% 15.9% Operating Expenses 53.6 55.5 Operating Income (Loss) 1.3 (
Slide 13: Balance Sheet Summary
The Finest in Senior Living Management NYSE MKT: ADK Balance Sheet Summary 13 ($ in Millions) 3/31/2014 12/31/2013 Cash & Cash Equivalents $16.7 $19.4 Accounts Receivable, net 24.5 23.6 Total Current Assets 58.2 58.7 Property & Equipment, Net 138.2 138.2 Total Assets $221.0 $226.4 Total Current Liab
Slide 14: Business Update
The Finest in Senior Living Management NYSE MKT: ADK 291 413 At Acquisition At March 31 A ve ra ge D ai ly Ce n su s Average Daily Medicare Census Optimization Business Update (as of 3/2014) 14 $404 455 At Acquisition At March 31 Medi care P P D ($ p e r d ay ) Average Medicare Rate Optimization PPD
Slide 15: 2014 Outlook
The Finest in Senior Living Management NYSE MKT: ADK 2014 Outlook Revenue Expect full-year 2014 revenue of $225M to $250M. Representing 3% to 12% growth compared to fiscal 2013. Reflects lower revenues from exiting non-core facilities which AdCare manages but does not own and facilities held for sal
Slide 16: Q & A Company Contacts
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
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