Regional Health Properties, Inc. · OTC:RHEP
Regional Health Properties — Adcare Health Systems — Investor Presentation (May 2015)
16 slides from Regional Health Properties's investor presentation, May 6, 2015
Slide 1: AdCare Health Systems, Inc. May 2015
May 2015 NYSE MKT: ADK AdCare Health Systems, Inc. ®
Slide 2: Forward-Looking Statements
NYSE MKT: ADK Forward-Looking Statements 2 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 uncertainti
Slide 3: Investor Highlights
NYSE MKT: ADK 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 as of May 1, 2015 Primarily long-term, triple-net leases generate predictable, recurring
Slide 4: Substantial Progress in Strategic Transition
NYSE MKT: ADK Substantial Progress in Strategic Transition 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 Create predictable revenue and income Improve free cash f
Slide 5: Positioning for Growth
NYSE MKT: ADK Positioning for Growth Access to financial capital to fund growth initiatives Cash on hand Recent private placement of $7.7M of convertible subordinated debt and public offering of $14.8M of preferred stock Ample growth opportunities available with returns in the low to medium double-d
Slide 6: Favorable Long-Term Healthcare Trends
NYSE MKT: ADK Favorable Long-Term Healthcare Trends Continued “graying of America” expected to result in increased demand for long-term care services and properties Population aged 75+ expected to increase by ~89% by 2030 vs. 2012 and increase from 6% of the total U.S. population to ~10% From 2010 t
Slide 7: Typical Lease Structure
NYSE MKT: ADK Typical Lease Structure 7 Lease structure favorable to AdCare “Triple-net basis” terms; Lessee is typically obligated for all liabilities of the property including: Insurance Taxes Facility maintenance Typically 10+ years in duration with multiple renewal options Annual escalation clau
Slide 8: Recent Key Activity
NYSE MKT: ADK Recent Key Activity 8 October • Bill McBride named Chief Executive Officer • Signed agreement to lease seven properties in Georgia and Ohio* 2014 2015 January • Leased 10 facilities in Arkansas, two leases subsequently terminated February • Leased two facilities in Georgia • Leased two
Slide 9: Portfolio Composition
NYSE MKT: ADK Portfolio Composition 9 • AdCare Facility Locations 25 facilities have transferred operations to 3rd party operators or are under a management contract Expect to transition seven facilities in GA and OH to 3rd party operators during 2Q 2015, subject to HUD approval Expect to complete t
Slide 10: FY 2014 Income Statement Summary
NYSE MKT: ADK FY 2014 Income Statement Summary ($ in thousands, except %) FY 2014 FY 2013 Revenues $193,314 $185,750 Gross Profit (excl. facility rent and D&A) 33,880 33,173 Gross Margin % 17.5% 17.9% Adjusted EBITDAR1 19,494 15,329 Adjusted EBITDAR Margin % 10.1% 8.2% Adjusted EBITDA1 12,414 9,015
Slide 11: Select Balance Sheet Summary
NYSE MKT: ADK Select Balance Sheet Summary 11 ($ in thousands) As of 12/31/2014 As Adjusted 1, 2 Cash and cash equivalents $10,735 $16,735 Non-convertible debt 137,359 137,359 Convertible subordinated debt 14,000 6,500 Total Debt $151,359 $143,859 Preferred stock $20,392 $33,892 Total Equity $3,389
Slide 12: Total Capitalization (at Market Value)
NYSE MKT: ADK Total Capitalization (at Market Value) 12 54% 14% 32% Total debt Preferred stock (at liquidation value) Market value of equity Total Capitalization (at Market Value) As Adjusted1 ($ in thousands) As of 12/31/2014 As Adjusted1, 2 Total Debt $151,359 $143,859 Preferred stock (at liquidat
Slide 13: Investor Highlights
NYSE MKT: ADK 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 as of May 1, 2015 Primarily long-term, triple-net leases generate predictable, recurring
Slide 14: Key Stats
NYSE MKT: ADK Stock Price (3/31/15) $4.38 Avg. Daily Vol. (3 mo.) 52,981 52 Week Low/High $3.58 – $5.05 Shares Outstanding 19.2M Public Float, est. 16.1M Dividend Yield 4.6% Valuation Measures Market Cap. $83.9M Enterprise Value $249.1M Ownership Institutional, est. 20.2% Insider, est. 24.8% Key Sta
Slide 15: Use of Non-GAAP Financial Information
NYSE MKT: ADK Use of Non-GAAP Financial Information 15 Beginning with the reporting of results for the first quarter of 2011, the Company began to report the measures of Adjusted EBITDA from continuing operations and Adjusted EBITDAR from continuing operations. These are measures of operating perfor
Slide 16: Reconciliation of Net Loss to Non-GAAP Measures
NYSE MKT: ADK Reconciliation of Net Loss to Non-GAAP Measures 16 2014 2013 Consolidated Statement of Operations Data: Net Loss (14,405)$ (13,363)$ Impact from Discontinued Operations 1,510 1,255 Loss from continuing operations (Per GAAP) (12,895) (12,108) Add back: Interest expense, net 10,780 12,35
Adcare Health Systems — Investor Presentation (May 2015) on 6ix