SPRINGFIELD, OH--(Marketwire - Apr 3, 2012) - AdCare Health Systems, Inc. (NYSE Amex: [ ADK ]), a leading long-term care provider, has completed the previously announced agreement to purchase three skilled nursing facilities in Arkansas for $27.3 million.

The facilities have on aggregate 437 beds in service. The two facilities in operation generate an estimated $15.9 million in gross annualized revenues according to their most recent financials, with the third facility having the capacity to produce an additional $20 million.

The third facility has been newly renovated and is expected to resume operations by mid-April. Located next to a major Little Rock acute care hospital, AdCare plans to provide exclusively higher margin sub-acute services in this location and expects to quickly fill capacity.

AdCare will finance the acquisition of the facilities with a traditional bank loan.

"This acquisition fits our successful M&A strategy of adding and optimizing facilities with significant Medicare census and rate upside," said Boyd Gentry, AdCare's president and chief executive officer. "We look forward to opening the newly renovated sub-acute care facility that we expect will generate revenues of more than $20 million once fully optimized."

Following an aggressive acquisition and optimization strategy, the company has increased the overall average daily Medicare census by 48% in facilities it has acquired and operated within the last six to 18 months, as well as increased the average per day Medicare reimbursement by 17% for the same period.

As a result, the company recently reported record annual revenues of $151.4 million, up 198% over 2010, with record adjusted EBITDAR of $16.8 million. Acquisitions AdCare completed in 2011 added more than $76 million to its estimated annualized revenue run-rate.

According to Chris Brogdon, AdCare's vice chairman and chief acquisitions officer: "These three Little Rock facilities will benefit from our seven-state operational platform and established facilities in Arkansas. This transaction increases the total number of facilities we've acquired in Arkansas to 11. With our M&A program and the integration of new facilities remaining our major focus in 2012, we continue to evaluate a number of opportunities that fit our acquisition strategy."

AdCare expects to complete the acquisition of at least nine additional facilities in the next several months -- seven facilities in Oklahoma and two in Arkansas.

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 $246 million. This would represent an increase of more than 62% over the company's revenues in 2011, and an increase of more than nine times revenues since initiating its M&A campaign in the spring of 2010. 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 Amex: [ ADK ]) is a recognized innovator in senior living and health care facility management. AdCare develops, 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 made by Mr. Gentry that the company expects better results, 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, facilities mentioned in this press release are 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.