The long-term care provider AdCare Health Systems of Springfield, Ohio has completed a previously announced acquisition of the Glenview Health and Rehabilitation facility in Glennville, Georgia, for $8.2 million.
AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE Amex: ADK), a leading long-term care provider, has completed the previously announced agreement to purchase a skilled nursing facility in Glennville, Georgia for $8.2 million.
The facility, Glenview Health and Rehabilitation, has 134 beds in service and generates an estimated $6.4 million in annualized gross revenues, according to their most recent financials. AdCare has financed the acquisition with a traditional bank loan.
“Glenview expands our presence in Georgia, joining the 13 facilities we already operate in Georgia,” said Chris Brogdon, AdCare’s chief acquisition officer. “It’s also in line with our expansion in the Southeast. We expect this new facility to leverage our management and administrative infrastructure, thereby improving its EBITDA margin.”
“We plan to continue pursuing an active M&A program throughout the second half of 2012,” added Brogdon, “and we are currently evaluating several attractive opportunities in the Southern region of the U.S.”
AdCare has put under contract 47 facilities since it began its M&A campaign in the summer of 2010 and eight since the beginning of 2012. Combining the company’s current annualized run-rate with transactions in the process of closing, AdCare’s estimated annualized revenue run-rate is expected to exceed $250 million this year. This would represent an increase of more than 67% from the company’s revenues in 2011, and an increase of more than nine times revenues since initiating its M&A campaign. AdCare’s expected annualized revenue run-rate does not include the potential revenues of the $20 million from the newly renovated sub-acute care facility in Arkansas.
About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE Amex: ADK) is a recognized innovator in senior living and health care facility management. AdCare owns and manages long-term care facilities and retirement communities, and since the company’s inception in 1988, its mission has been to provide the highest quality of healthcare services to the elderly, including a broad range of skilled nursing and sub-acute care services. For more information about AdCare, visit www.adcarehealth.com.
Important Cautions Regarding Forward-Looking Statements
Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of federal law. Such statements can be identified by the use of forward-looking terminology, such as “believes,” “expects,” “plans,” “intends,” “anticipates” and variations of such words or similar expressions, but their absence does not mean that the statement is not forward-looking. Statements in this announcement that are forward-looking include, but are not limited to, statements that the company expects better results, and statements by Mr. Brogdon that the company continues to expect its new facilities and those pending acquisitions to improve facility EBITDA margin, as well as other statements regarding the signing and closing of expected acquisitions, and the company’s expected annualized run-rate. Such forward-looking statements reflect management’s beliefs and assumptions and are based upon information currently available to management and involve known and unknown risks, results, performance or achievements of AdCare, which may differ materially from those expressed or implied in such statements. Such factors are identified in the public filings made by AdCare with the Securities and Exchange Commission and include, among others, AdCare’s ability to secure lines of credit and/or an acquisition credit facility, find suitable acquisition properties at favorable terms, changes in the health care industry because of political and economic influences, changes in regulations governing the health care industry, changes in reimbursement levels including those under the Medicare and Medicaid programs and changes in the competitive marketplace. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements. Except where required by law, AdCare undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.
In addition, each facility mentioned in this press release is operated by a separate, wholly owned, independent operating subsidiary that has its own management, employees and assets.
References to the consolidated company and its assets and activities, as well as the use of terms such as “we,” “us,” “our,” and similar verbiage, is not meant to imply that AdCare Health Systems, Inc. has direct operating assets, employees or revenue or that any of the facilities, the home health business or other related businesses are operated by the same entity.