Health & Fitness
Health and Fitness
Health and Fitness
Tue, October 18, 2011
Mon, October 17, 2011
AdCare Health Systems to Acquire Five Skilled Nursing Facilities in Oklahoma
October 17, 2011 08:31 ET
AdCare Health Systems to Acquire Five Skilled Nursing Facilities in Oklahoma
SPRINGFIELD, OH--(Marketwire - Oct 17, 2011) - AdCare Health Systems, Inc. (
The facilities have on aggregate 357 beds that generate an estimated $15.0 million in annualized revenues. The acquisition is anticipated to be immediately accretive to AdCare's earnings upon closing, which is expected in early 2012.
The company expects to fund the transaction with a long-term loan guaranteed by the Small Business Administration (SBA).
"This signing brings the total number of facilities we've put under contract to 29 since the beginning of this year and represents our first-ever in Oklahoma," noted Chris Brogdon, AdCare's vice chairman and chief acquisitions officer. "These facilities are in line with our expansion into the South, and are consistent with our strategic objective of acquiring operations with significant Medicare and Managed Care upside."
AdCare's president and CEO, Boyd P. Gentry, added: "In fact, we expect our proven system of applying optimization techniques will translate into at least a 20-25 percent increase in revenue from these skilled nursing facilities over time."
Since the company began an aggressive M&A program in the fall of 2009, it has purchased or leased 26 skilled nursing or assisted living facilities representing more than 2,700 beds. Combined with other transactions announced and in the process of closing, AdCare's estimated annualized revenue run-rate is expected to exceed $300 million. This would represent an increase of more than 460% over the company's revenues in 2010, and an increase of more than 1,000% over revenues in 2009.
About AdCare Health Systems
AdCare Health Systems, Inc. (
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 about the company's expected annualized revenue run-rate and statements regarding the signing and expected closing of transactions, as well as statements regarding transactions being accretive to the company's earnings. Such forward-looking statements reflect management's beliefs and assumptions and are based on 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 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.
