Regional Health Properties, Inc. · OTC:RHEP
Regional Health Properties — AdCare Health Systems — Investor Presentation (May 2015)
17 slides from Regional Health Properties's investor presentation, May 28, 2015
Slide 1: AdCare Health Systems, Inc. Investor Presentation
NYSE MKT: ADK ® AdCare Health Systems, Inc. May 28, 2015 Investor Presentation
Slide 2: Forward-Looking Statements
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 are subject to risks and uncertainties that could ca
Slide 3: Investor Highlights
Investor Highlights AdCare Health Systems is a healthcare property holding and leasing company. 40 senior care properties located primarily in the Southeast U.S. with a total of 4,235 beds / units Primarily long-term, triple-net leases generate predictable, recurring streams of rental payments Seaso
Slide 4: Substantial Progress in Strategic Transition
Substantial Progress in Strategic Transition In July 2014, the Company Announced Its Strategic Transition Plan Transitioning from an owner and operator of skilled nursing facilities to a healthcare property holding & leasing company in order to: Increase shareholder value Reduce operating risk Creat
Slide 5: Positioning for Growth
Positioning for Growth Access to financial capital to fund growth initiatives Cash on hand Recent private placement of $7.7M of convertible subordinated debt in March / April 2015 and public offering of $14.8M of preferred stock in April 2015 Ample growth opportunities available with returns in the
Slide 6: Favorable Long-Term Healthcare Trends
Favorable Long-Term Healthcare Trends Continued “graying of America” expected to result in increased demand for long-term care services and properties Population aged 75+ expected to increase by ~89% by 2030 vs. 2012 and increase from 6% of the total U.S. population to ~10% From 2010 to 2020, averag
Slide 7: Typical Lease Structure
Typical Lease Structure Lease structure favorable to AdCare “Triple-net basis” terms; Lessee is typically obligated for all liabilities of the property including: Insurance Taxes Facility maintenance Typically 10+ years in duration with multiple renewal options Annual escalation clauses Cross collat
Slide 8: Recent Key Activity
Recent Key Activity 2014 September • Leased two properties in Alabama October • Bill McBride named Chief Executive Officer • Signed agreement to lease seven properties in Georgia and Ohio* November • Leased one property in Georgia 2015 January • Leased 10 facilities in Arkansas, two leases subsequen
Slide 9: Portfolio Composition
Portfolio Composition Entered Agreements for 37 of 40 Facilities 25 facilities have transferred operations to 3rd party operators or are under a management contract Expect to transition seven facilities in GA and OH to 3rd party operators during 2Q OH 2015, subject to HUD approval Expect to complete
Slide 10: Relationship With Aria Health Group
Relationship With Aria Health Group On May 1, eight of the company’s skilled nursing facilities in Arkansas transferred operations to affiliates of Aria Health Group Initial term of 10 years with a five year renewal option Annual base rent in year one will total $5.3 million in aggregate with 2% ann
Slide 11: Income Statement Summary
Income Statement Summary LTM ended FY 2014 FY 2013 ($ in thousands, except %) 3/31/20151 Revenues $193,710 $193,314 $185,750 Gross Profit (excl. facility rent and D&A) 31,631 33,880 33,173 Gross Margin % 16.3% 17.5% 17.9% Adjusted EBITDAR2 18,325 19,494 15,329 Adjusted EBITDAR Margin % 9.5% 10.1% 8.
Slide 12: Select Balance Sheet Summary
Select Balance Sheet Summary ($ in thousands) As of 3/31/2015 As Adjusted1 Non-convertible debt 136,086 136,086 Convertible subordinated debt 15,685 15,685 Total Debt $151,771 $151,771 Preferred stock $20,392 $33,892 Total Equity / (Deficit) ($615) ($615) Total Capitalization $171,548 $185,048 1 “As
Slide 13: Total Capitalization (at Market Value)
Total Capitalization (at Market Value) Total Capitalization (at Market Value) As of As As Adjusted1 ($ in thousands) 3/31/2015 Adjusted1 Total Debt $151,771 $151,771 29% 56% Preferred stock 14% $23,750 $38,125 (at liquidation value) Market value of equity2 $79,210 $79,210 Total debt Preferred stock
Slide 14: Investor Highlights
Investor Highlights AdCare Health Systems is a healthcare property holding and leasing company. 40 senior care properties located primarily in the Southeast U.S. with a total of 4,235 beds / units Primarily long-term, triple-net leases generate predictable, recurring streams of lease payments Experi
Slide 15: Key Stats
Key Stats Stock Price (5/15/15) $4.00 Income Statement (TTM ended 3/31/15) Avg. Daily Vol. (3 mo.) 50,719 TTM Revenue $193.7M 52 Week Low/High $3.58 – $5.05 TTM Adj. EBITDAR - cont. ops.1 $18.3M TTM Adj. EBITDA - cont. ops.1 $11.0M Shares Outstanding (4/30/15) 19.8M Public Float, est. 14.2M Balance
Slide 16: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information Beginning with the reporting of results for the first quarter of 2011, the company began to report the measures of Adjusted EBITDA from continuing operations and Adjusted EBITDAR from continuing operations. These are measures of operating performance that are no
Slide 17: Reconciliation of Net Loss to Non-GAAP Measures
Reconciliation of Net Loss to Non-GAAP Measures Reconciliation of Net Loss to Adjusted EBITDA from Continuing Operations and Adjusted EBITDAR from Continuing Operations ($ in 000's) Twelve Months Three Months Ended March 31, For the Year Ended December 31, Ended March 31, (Amounts in 000's) 2015 201
AdCare Health Systems — Investor Presentation (May 2015) on 6ix