Diversicare Healthcare Services, Inc. (OTCQX: DVCR), a premier
provider of long-term care services, today announced its results
for the fourth quarter ended December 31, 2020.
Fourth Quarter 2020 Highlights
- Net income from continuing operations was $2.0 million in the
fourth quarter of 2020, compared to a net loss from continuing
operations of $1.4 million in the fourth quarter of 2019.
- EBITDA for the quarter was $4.8 million, which was $2.1 million
higher than the fourth quarter of 2019.
- Adjusted EBITDAR for the quarter was $18.5 million.
- Net Income from continuing operations was $6.5 million for the
year and annual EBITDA was $20.1 million.
- Earnings per share from continuing operations was $0.30 for the
fourth quarter of 2020 and $0.99 for the twelve months ended
December 31, 2020.
See below for a reconciliation of all GAAP and non-GAAP
financial results.
CEO Remarks
Commenting on the quarter, Jay McKnight, President and Chief
Executive Officer, said, “I want to start our discussion of the
quarter by thanking our team. Our regional and center level teams
have been exemplary in their efforts to care for our patients and
residents through the worst environment of any of our careers.
Additionally, the corporate team supporting the centers has risen
to the challenges placed upon them by the pandemic. We are so proud
of our team, how they have supported one another, and how they have
cared for the patients and residents entrusted to us.”
Mr. McKnight continued, "Despite the effect of the pandemic, we
accomplished significant objectives as a company this year that we
would like to highlight. As previously announced, we outsourced our
therapy operations to Reliant Rehabilitation during the fourth
quarter, which provided immediate benefit and we believe will
provide additional benefit to us moving forward. Also in the fourth
quarter, we exited the lone center that we operated in Florida and
completed a related amendment of our master lease with Omega.
Additionally, we outperformed our prior experience in the Texas
Quality Incentive Payment Program. EBITDA for the quarter of $4.8
million capped off a year of financial improvement over 2019.”
COVID-19 Update
During 2020, we experienced reduced occupancy at our centers and
incurred additional expenses preparing for and responding to the
COVID-19 pandemic. We incurred $32.3 million of additional
healthcare related expenses, inclusive of labor costs and the
increased cost of personal protective equipment, testing, food and
certain other supplies. We anticipate that during 2021 we will
continue to incur significant expense and lost revenue arising from
the pandemic.
Through December 31, 2020, we received $47.2 million of Provider
Relief Funds. During 2020, we recognized $19.8 million of the
Provider Relief Funds to offset the increased healthcare-related
expenses that we incurred and the lost revenue that resulted from
reduced occupancy. We also utilized $1.5 million to finance capital
improvements to prevent the spread of COVID-19. The remaining
Provider Relief Funds of $25.9 million as of December 31, 2020,
were classified as deferred income on our consolidated balance
sheet. Additionally, several of our states have temporarily
increased Medicaid rates, resulting in $17.0 million of additional
patient services revenue during 2020, and certain states provided
$4.0 million of other financial assistance to aid us in managing
through the pandemic.
The Centers for Disease Control and Prevention (“CDC”) and
Centers for Medicare and Medicaid Services (“CMS”) have continued
to issue and expand guidance to long-term care facilities to help
mitigate the spread of COVID-19, including restrictions on
visitation, nonessential workers and communal activities, among
other measures. Although social contact restrictions have eased
across the U.S., some restrictions remain in place, and some states
have continued to impose or re-imposed certain restrictions due to
increasing rates of COVID-19 cases. CMS has also issued reporting
guidelines for our centers to follow. Reporting guidance requires
us to notify residents and designated representatives of the
occurrence of a single confirmed COVID-19 positive case, any
subsequent positive cases, any COVID-19 positive new admission,
and/or three or more cases of new onset respiratory symptoms
occurring within 72 hours. Our centers remain compliant with
regular reporting to the CDC and CMS regarding the number of
COVID-19 cases in our centers, patient deaths, and other
information. This information is reported in accordance with
existing privacy regulations and statues for the safety and
well-being of our residents.
We have taken measures to limit the spread of the virus in our
centers, including screening protocols for staff, residents and
visitors, and we continue to conduct COVID-19 testing in accordance
with CMS guidelines. We are committed to keeping our residents and
their designated representatives informed as we continue to
navigate COVID-19 in our centers. We will continue to report
aggregated COVID-19 data for the company on our website at
https://dvcr.com/our-response-to-covid-19/ and provide center
specific information on each of our center’s websites.
Fourth Quarter 2020 Results
The following table summarizes key revenue and census statistics
for continuing operations for each period:
Three Months Ended
December 31,
2020
2019
Skilled nursing occupancy
67.6
%
77.2
%
As a percent of total census:
Medicare census
13.0
%
8.8
%
Managed Care census
5.5
%
4.4
%
As a percent of total revenues:
Medicare revenues
22.5
%
17.9
%
Medicaid revenues
44.2
%
47.8
%
Managed Care revenues
10.7
%
10.3
%
*Average rate per day:
Medicare
$
502.33
$
488.69
Medicaid
$
182.93
$
180.25
Managed Care
$
426.10
$
399.72
*Excludes COVID-19 stimulus payments
Patient revenues for the fourth quarter of 2020 were $119.5
million, representing a $1.4 million decrease from the fourth
quarter of 2019. Due to the COVID-19 pandemic, we experienced
quarter over quarter decreases in our Medicaid, Private and Hospice
average daily census, which resulted in a $14.2 million decrease to
patient revenues. The unfavorable impact was mitigated by an
increase in our Medicare and Managed Care average daily census,
which resulted in increased revenue of $7.3 million. Our Medicaid
and Managed care rates increased quarter over quarter, contributing
$1.5 million. During the fourth quarter of 2020, we recognized $5.4
million of Medicaid and Hospice state stimulus funds and $0.8
million of increased revenue from the suspension of sequestration
under the provisions of the Cares Act.
Of the $47.2 million of Provider Relief Funds that we received
under the Cares Act during 2020, we recognized $5.1 million of the
funds during the fourth quarter of 2020, which combined with $4.0
million of state grant funds, were classified as other operating
income in the Company's results of operations. The Provider Relief
Funds and state grant funds that we recognized during the quarter
were used to offset increased healthcare-related expenses and lost
revenues attributable to COVID-19.
Operating expenses increased to $99.9 million, or 83.6% of
revenue, in the fourth quarter of 2020 from $96.2 million, or 79.6%
of revenue, in the fourth quarter of 2019. The increase in
operating expenses was due to COVID-19 related expenses of $15.3
million, which included increased labor costs and increased cost
for personal protective equipment, testing, food and certain other
supplies. Excluding the increased healthcare-related expenses
attributable to COVID-19, we benefited from our cost saving
initiatives that favorably impacted our clinical labor costs and
nursing and ancillary costs.
Lease expense decreased to $13.4 million in 2020 from $13.5
million in 2019, a decrease of $0.1 million, or 0.5%. On December
1, 2020, the Company entered into an agreement with Omega
Healthcare Investors to transfer operations of a facility located
in Florida to another operator. The agreement effectively amended
the Omega Master Lease to remove this center, reduce the annual
rent expense, and release the Company from any further obligations
arising under the Omega Master Lease with respect to the Florida
facility.
Professional liability expense for the fourth quarter of 2020
was $2.1 million, representing an increase of $0.3 million over the
fourth quarter of 2019. Professional liability expense fluctuates
from period to period based on the results of our third-party
professional liability actuarial studies, the premium costs of
purchased insurance, and the costs incurred in defending and
settling existing claims.
General and administrative expenses for the fourth quarter of
2020 were $7.6 million, representing an increase of $0.8 million
over the fourth quarter of 2019. The increase resulted from
increased labor expense in addition to legal and consulting fees
associated with the Company's debt refinance during the fourth
quarter of October 2020.
Continuing operations reported income before taxes of $1.2
million in 2020, compared to a loss of $1.2 million in 2019. The
benefit for income taxes was $0.8 million in 2020 compared to a
provision for income taxes of $0.2 million in 2019. The basic and
diluted loss per common share from continuing operations were $0.30
in 2020 compared to a basic and diluted loss per common share from
continuing operations of $0.22 in 2019, respectively.
Conference Call Information
A conference call has been scheduled for Thursday, March 11,
2021, at 4:00 P.M. Central time (5:00 P.M. Eastern time) to discuss
fourth quarter 2020 results. The conference call information is as
follows:
Date:
Thursday, March 11, 2021
Time:
4:00 P.M. Central, 5:00 P.M. Eastern
Webcast Links:
www.DVCR.com
Dial in numbers:
800.918.9477
Access Code: 21990614
The Operator will connect you to
Diversicare’s Conference Call
A replay of the conference call will be accessible two hours
after its completion through March 18, 2021, by dialing
800-633-8284 and entering Access Code 21990614.
FORWARD-LOOKING STATEMENTS
The “forward-looking statements” contained in this release are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are predictive in nature and are frequently identified
by the use of terms such as “may,” “will,” “should,” “expect,”
“believe,” “estimate,” “intend,” and similar words indicating
possible future expectations, events or actions. These
forward-looking statements reflect our current views with respect
to future events and present our estimates and assumptions only as
of the date of this release. Actual results could differ materially
from those contemplated by the forward-looking statements made in
this release. In addition to any assumptions and other factors
referred to specifically in connection with such statements, other
factors, many of which are beyond our ability to control or
predict, could cause our actual results to differ materially from
the results expressed or implied in any forward-looking statements
including, but not limited to, the potential adverse effect of the
COVID-19 pandemic on the economy, our patients and residents and
supply chain, including, changes in the occupancy of our centers,
increased operation costs in addressing COVID-19, supply chain
disruptions and uncertain demand, and the impact of any initiatives
or programs that the Company may undertake to address financial and
operations challenges faced by its patients served, the duration
and severity of the COVID-19 pandemic and the extent and severity
of the impact on the Company's patients and residents, actions
governments take in response to the COVID-19 pandemic, including
the introduction of public health measures and other regulations
affecting our centers, the impact of the CARES Act, the Paycheck
Protection Program and Health Care Enhancement Act and any other
COVID-19 relief aid adopted by governments or the implementation or
modifications to such acts, including any obligation of the Company
to repay any stimulus payments received under such relief aid,
perceptions regarding the safety of senior living communities
during and after the pandemic, changes in demand for senior living
communities and our ability to adapt our sales and marketing
efforts to meet the demand, changes in the acuity levels of our new
residents, the disproportionate impact of COVID-19 on seniors
generally and those residing in our communities, increased
regulatory requirements, including unfunded mandatory testing,
increased and enforcement actions resulting from COVID-19,
including those that may limit our collection efforts for
delinquent accounts and the frequency and magnitude of legal
actions and liability claims that may arise due to COVID-19 or our
response efforts, our ability to successfully integrate the
operations of new nursing centers, as well as successfully operate
all of our centers, our ability to increase census and occupancy
rates at our centers, changes in governmental reimbursement,
including the new Patient-Driven Payment Model that was implemented
in October of 2019, government regulation, the impact of the
Affordable Care Act, efforts to repeal or further modify the
Affordable Care Act, and other health care reform initiatives, any
increases in the cost of borrowing under our credit agreements, our
ability to comply with covenants contained in those credit
agreements, our ability to comply with the terms of our master
lease agreements, our ability to renew or extend our leases at or
prior to the end of the existing lease terms, the outcome of
professional liability lawsuits and claims, our ability to control
ultimate professional liability costs, the accuracy of our estimate
of our anticipated professional liability expense, the impact of
future licensing surveys, the outcome of proceedings alleging
violations of state or Federal False Claims Acts, laws and
regulations governing quality of care or other laws and regulations
applicable to our business including HIPAA and laws governing
reimbursement from government payors, the costs of investing in our
business initiatives and development, our ability to control costs,
our ability to attract and retain qualified healthcare
professionals, changes to our valuation of deferred tax assets,
changing economic and competitive conditions, changes in
anticipated revenue and cost growth, changes in the anticipated
results of operations, the effect of changes in accounting policies
as well as others.
Diversicare provides long-term care services to patients in 61
skilled nursing and centers containing 7,250 skilled licensed
nursing beds. For additional information about the Company, visit
Diversicare's web site: www.DVCR.com.
DIVERSICARE HEALTHCARE
SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
December 31, 2020
December 31, 2019
ASSETS:
Current Assets
Cash and cash equivalents
$
30,821
$
2,710
Receivables
53,691
60,521
Self insurance receivables
1,025
1,011
Other current assets
11,724
8,074
Total current assets
97,261
72,316
Property and equipment, net
43,320
47,755
Acquired leasehold interest, net
5,202
5,736
Operating lease assets
290,296
310,238
Other assets, net
3,773
4,323
TOTAL ASSETS
$
439,852
$
440,368
LIABILITIES AND SHAREHOLDERS’
DEFICIT:
Current Liabilities
Current portion of long-term debt and
finance lease obligations
$
1,660
$
3,498
Trade accounts payable
13,901
14,641
Current portion of operating lease
liabilities
28,583
23,736
Accrued expenses:
Payroll and employee benefits
15,393
16,780
Current portion of self-insurance
reserves
12,665
13,829
Deferred income
25,900
—
Other current liabilities
14,743
11,545
Total current liabilities
112,845
84,029
Noncurrent Liabilities
Long-term debt and finance lease
obligations, less current portion
58,526
70,637
Operating lease liabilities, less current
portion
274,155
295,636
Self-insurance reserves, less current
portion
15,476
16,291
Accrued litigation contingency
8,000
9,000
Other noncurrent liabilities
2,155
1,691
Total noncurrent liabilities
358,312
393,255
SHAREHOLDERS’ DEFICIT
(31,305
)
(36,916
)
TOTAL LIABILITIES AND SHAREHOLDERS’
DEFICIT
$
439,852
$
440,368
DIVERSICARE HEALTHCARE
SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per share
data)
Three Months Ended
December 31,
2020
2019
PATIENT REVENUES, net
$
119,523
$
120,873
OTHER OPERATING INCOME
9,091
—
Operating expense
99,908
96,227
Facility-level operating income
28,706
24,646
EXPENSES:
Lease and rent expense
13,441
13,510
Professional liability
2,108
1,814
General and administrative
7,566
6,742
Depreciation and amortization
2,406
2,310
Total expenses less operating
25,521
24,376
OPERATING INCOME
3,185
270
OTHER INCOME (EXPENSE):
Other income
(561
)
82
Debt retirement costs
(247
)
—
Interest expense, net
(1,167
)
(1,570
)
(1,975
)
(1,488
)
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES
1,210
(1,218
)
BENEFIT (PROVISION) FOR INCOME TAXES
818
(150
)
NET INCOME (LOSS) FROM CONTINUING
OPERATIONS
2,028
(1,368
)
NET LOSS FROM DISCONTINUED OPERATIONS:
Operating loss, net of taxes
(367
)
(1,879
)
DISCONTINUED OPERATIONS
(367
)
(1,879
)
NET INCOME (LOSS)
$
1,661
$
(3,247
)
NET INCOME (LOSS) PER COMMON SHARE FOR
DIVERSICARE HEALTHCARE SERVICES, INC. SHAREHOLDERS:
Per common share – basic
Continuing operations
$
0.30
$
(0.22
)
Discontinued operations
(0.05
)
(0.29
)
$
0.25
$
(0.51
)
Per common share – diluted
Continuing operations
$
0.30
$
(0.22
)
Discontinued operations
$
(0.05
)
$
(0.29
)
$
0.25
$
(0.51
)
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic
6,655
6,471
Diluted
6,804
6,471
DIVERSICARE HEALTHCARE
SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per share
data)
Twelve Months Ended
December 31,
2020
2019
PATIENT REVENUES, net
$
475,718
$
475,020
OTHER OPERATING INCOME
23,802
—
Operating expense
389,248
380,870
Facility-level operating income
110,272
94,150
EXPENSES:
Lease and rent expense
54,001
52,990
Professional liability
8,310
6,996
Government settlement expense
—
3,100
General and administrative
27,691
28,009
Depreciation and amortization
9,069
9,122
Total expenses less operating
99,071
100,217
OPERATING INCOME (LOSS)
11,201
(6,067
)
OTHER INCOME (EXPENSE):
Other income
53
281
Interest expense, net
(5,008
)
(5,994
)
Debt retirement costs
(247
)
—
(5,202
)
(5,713
)
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES
5,999
(11,780
)
BENEFIT (PROVISION) FOR INCOME TAXES
531
(15,694
)
NET INCOME (LOSS) FROM CONTINUING
OPERATIONS
6,530
(27,474
)
NET INCOME (LOSS) FROM DISCONTINUED
OPERATIONS:
Operating loss, net of taxes
(1,371
)
(9,322
)
Gain on lease modification, net of tax
—
733
DISCONTINUED OPERATIONS
(1,371
)
(8,589
)
NET INCOME (LOSS)
$
5,159
$
(36,063
)
NET INCOME (LOSS) PER COMMON SHARE FOR
DIVERSICARE HEALTHCARE SERVICES, INC. SHAREHOLDERS:
Per common share – basic
Continuing operations
$
0.99
$
(4.25
)
Discontinued operations
(0.21
)
(1.33
)
$
0.78
$
(5.58
)
Per common share – diluted
Continuing operations
$
0.97
$
(4.25
)
Discontinued operations
(0.20
)
(1.33
)
$
0.77
$
(5.58
)
DIVIDENDS DECLARED PER SHARE OF COMMON
STOCK
$
—
$
0.17
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic
6,615
6,459
Diluted
6,705
6,459
DIVERSICARE HEALTHCARE
SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
Twelve Months Ended December
31,
2020
2019
NET INCOME (LOSS)
$
5,159
$
(36,063
)
Discontinued operations
(1,371
)
(8,589
)
Net income (loss) from continuing
operations
6,530
(27,474
)
Adjustments to reconcile net income (loss)
from continuing operations to net cash provided by operating
activities:
Depreciation and amortization
9,069
9,122
Deferred income tax provision
(benefit)
(1,227
)
15,421
Provision for self-insured professional
liability, net of cash payments
372
4,739
Stock based and deferred compensation
570
573
Debt retirement costs
247
—
Provision for leases, net of cash
payments
3,063
3,897
Amortization of right-of-use assets
23,942
21,890
Government settlement expense
—
3,100
Other
482
1,507
Changes in other assets and liabilities
affecting operating activities:
Receivables
6,816
9,200
Prepaid expenses and other assets
(3,060
)
(6,693
)
Trade accounts payable and accrued
expenses
(579
)
(1,793
)
Deferred income
25,900
—
Operating lease liabilities
(23,938
)
(21,154
)
Cash provided by operating activities from
continuing operations
48,187
12,335
Cash used in operating activities from
discontinued operations
(1,371
)
(7,003
)
Cash provided by operating activities
46,816
5,332
Cash used in investing activities
(5,596
)
(4,974
)
Cash used in financing activities
(13,109
)
(333
)
Net increase in cash
28,111
25
Cash beginning of period
2,710
2,685
Cash end of period
$
30,821
$
2,710
DIVERSICARE HEALTHCARE
SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME
(LOSS) TO EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDAR
(In thousands)
December 31, 2020
September 30,
2020
June 30, 2020
March 31, 2020
December 31, 2019
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Net income (loss)
$
1,661
$
2,799
$
1,452
$
(753
)
$
(3,247
)
Loss from discontinued operations, net of
tax
367
374
387
243
1,879
Income tax provision (benefit)
(818
)
209
182
(104
)
150
Interest expense
1,167
1,172
1,209
1,460
1,570
Depreciation and amortization
2,406
2,098
2,278
2,288
2,310
EBITDA
4,783
6,652
5,508
3,134
2,662
EBITDA adjustments:
Debt retirement costs (a)
247
—
—
—
—
Adjusted EBITDA
$
5,030
$
6,652
$
5,508
$
3,134
$
2,662
Lease expense (b)
$
13,441
$
13,524
$
13,523
$
13,512
$
13,510
(a)
Represents non-recurring debt retirement
costs related to the amendment of our debt agreements in October
2020.
(b)
As management, we evaluate Adjusted EBITDA
exclusive of lease expense, or Adjusted EBITDAR, as a financial
valuation metric. For the three month period ended December 31,
2020, Adjusted EBITDAR is calculated below.
Adjusted EBITDA
$
5,030
Lease expense
13,441
Adjusted EBITDAR
$
18,471
DIVERSICARE HEALTHCARE
SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME
(LOSS) FOR DIVERSICARE HEALTHCARE
SERVICES, INC. AND
SUBSIDIARIES COMMON SHAREHOLDERS TO ADJUSTED NET INCOME
(LOSS)
FOR DIVERSICARE HEALTHCARE
SERVICES, INC. AND SUBSIDIARIES COMMON SHAREHOLDERS
(In thousands, except per share
data)
For Three Months Ended
December 31, 2020
September 30,
2020
June 30, 2020
March 31, 2020
December 31, 2019
Net income (loss) for Diversicare
Healthcare Services, Inc. Common shareholders
$
1,661
$
2,799
$
1,452
$
(753
)
$
(3,247
)
Adjustments:
Debt retirement costs (a)
247
—
—
—
—
Discontinued operations, net of tax
367
374
387
243
1,879
Adjusted net income (loss) for
Diversicare Healthcare Services, Inc. common shareholders
$
2,275
$
3,173
$
1,839
$
(510
)
$
(1,368
)
Adjusted net income (loss) for
Diversicare Healthcare Services, Inc. common shareholders
Basic
$
0.34
$
0.48
$
0.28
$
(0.08
)
$
(0.22
)
Diluted
$
0.33
$
0.48
$
0.28
$
(0.08
)
$
(0.22
)
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING :
Basic
6,655
6,577
6,649
6,506
6,471
Diluted
6,804
6,626
6,704
6,506
6,471
(a)
Represents non-recurring debt retirement
costs related to the amendment of our debt agreements in October
2020.
We have included certain financial performance and valuation
measures in this press release, including EBITDA, Adjusted EBITDA,
Adjusted EBITDAR, Adjusted Net income (loss), which are “non-GAAP
financial measures” using accounting principles generally accepted
in the United States (GAAP) and using adjustments to GAAP
(non-GAAP). These non-GAAP measures are not measurements under
GAAP. These measurements should be considered in addition to, but
not as a substitute for, the information contained in our financial
statements prepared in accordance with GAAP. We define EBITDA as
net income (loss) adjusted for loss from discontinued operations,
interest expense, income tax and depreciation and amortization. We
define Adjusted EBITDA as EBITDA adjusted for debt retirement
costs. We define Adjusted EBITDAR as Adjusted EBITDA adjusted for
rent expense. We define Adjusted Net income (loss) as Net income
(loss) adjusted for debt retirement costs and loss from
discontinued operations.
Our measurements of EBITDA, Adjusted EBITDA, Adjusted EBITDAR,
and Adjusted Net income (loss) may not be comparable to similarly
titled measures of other companies. We have included information
concerning EBITDA, Adjusted EBITDA, and Adjusted Net income (loss)
in this press release because we believe that such information is
used by certain investors as measures of a company’s historical
performance. Our presentation of EBITDA, Adjusted EBITDA, and
Adjusted Net income (loss) should not be construed as an inference
that our future results will be unaffected by unusual or
nonrecurring items.
We have included Adjusted EBITDAR in this press release because
we believe that such information is used by certain investors as a
measure of the Company’s valuation. We believe that Adjusted
EBITDAR is an important financial valuation measure that is
commonly used by our management, research analysts, investors,
lenders and financial institutions, to compare the enterprise value
of different companies in the healthcare industry, without regard
to differences in capital structures and leasing arrangements.
Adjusted EBITDAR is a financial valuation measure and is not
displayed as a performance measure as it excludes rent expense,
which is a normal and recurring operating expense. As such, our
presentation of Adjusted EBITDAR, should not be construed as a
financial performance measure.
DIVERSICARE HEALTHCARE
SERVICES, INC. AND SUBSIDIARIES SELECTED OPERATING
STATISTICS
(Unaudited)
Three Months Ended December 31,
2020
As of December 31, 2020
Occupancy (Note 2)
Region (Note 1)
Licensed Nursing Beds (4)
Available Nursing Beds (4)
Skilled Nursing Weighted Average
Daily Census
Licensed Nursing Beds
Available Nursing Beds
Medicare Utilization
2020 Q4 Revenue ($ in
millions)
Medicare Room and Board Revenue
PPD (Note 3)
Medicaid Room and Board Revenue
PPD (Note 3)
Alabama
2,385
2,318
1,873
76.8
%
79.0
%
13.0
%
$
45.7
$
474.17
$
190.17
Kansas
464
464
329
71.0
%
71.0
%
20.6
%
8.3
517.59
179.19
Mississippi
1,039
1,004
750
72.2
%
74.7
%
15.6
%
18.2
472.57
196.68
Missouri
339
339
212
62.4
%
62.4
%
14.3
%
3.9
580.28
147.36
Ohio
403
393
301
74.7
%
76.6
%
10.8
%
7.9
585.42
188.61
Tennessee
775
709
524
67.7
%
74.0
%
16.7
%
14.9
500.41
210.71
Texas
1,845
1,662
947
51.4
%
57.0
%
6.5
%
20.6
573.69
153.60
Total
7,250
6,889
4,936
67.6
%
71.1
%
13.0
%
$
119.5
$
502.33
$
182.93
Note 1:
The Alabama region includes nursing
centers in Alabama and Florida. The Tennessee region includes one
nursing center in Indiana.
Note 2:
The number of Licensed Nursing Beds is
based on the licensed capacity of the facility. The Company has
historically reported its occupancy based on licensed nursing beds,
and excludes a limited number of assisted living, independent
living, and personal care beds. The number of Available Nursing
Beds represents licensed nursing beds less beds removed from
service. Available nursing beds is subject to change based upon the
needs of the facilities, including configuration of patient rooms,
common usage areas and offices, status of beds (private,
semi-private, ward, etc.) and renovations. Occupancy is measured on
a weighted average basis. These percentages were calculated
considering the impact of the transfer of operations of the Florida
facility effective December 1, 2020.
Note 3:
These Medicare and Medicaid revenue rates
include room and board revenues, but do not include any ancillary
revenues related to these patients. These rates were calculated
considering the impact of the transfer of operations of the Florida
facility effective December 1, 2020.
Note 4:
The Licensed and Available Nursing Bed
counts above include only licensed and available SNF beds.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210311005963/en/
Company Contact: James R. McKnight, Jr. Chief Executive Officer
615-771-7575
Investor Relations: Kerry D. Massey Chief Financial Officer
615-771-7575
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