SPRINGFIELD, OH--(Marketwire -03/15/12)- AdCare Health Systems, Inc. (AMEX: ADK - News), a leading long-term caring provider, has sealed definitive purchase agreements for dual learned nursing comforts in Oklahoma for a sum consideration of $11.6 million. The comforts have an aggregate of 239 beds in service as well as generate an estimated $10.3 million in gross annualized revenues according to their most recent financial statements. The transaction is expected to be finished in a next 90 days. AdCare plans to finance a merger of a comforts with traditional bank loans. "Including a dual new acquisitions voiced today, you have a sum of 12 learned nursing comforts you expect to close in established markets over a next 120 days," said Boyd Gentry, AdCare's boss as well as chief senior manager officer. "Together, these comforts have existing estimated gross annualized revenues of $49.0 million, which is prior to a optimization process which you believe will increase sub-acute census as well as revenues. "We have been especially excited about a significant upside of a Arkansas expansion, which includes three Little Rock facilities. One of these is a not long ago entirely renovated 157 bed facility which you will open exclusively as a sub-acute facility. Once entirely optimized, this facility's revenues have been anticipated to surpass $15 million. This transaction is scheduled to close at a end of this month." AdCare's M&A program is driven by management's commitment to acquire, rise as well as manage comforts where it can leverage operational efficiencies as well as urge profitability -- even in a some-more conservative Medicare environment. In line with this strategy, a association not long ago terminated an agreement to take or lease 15 learned nursing comforts in South Carolina, North Carolina, Virginia, as well as Tennessee which was voiced in June of final year, following further due-diligence as well as renegotiation efforts. "AdCare will no longer aspire to this merger as it has turn significantly some-more expensive as consent negotiations with third-party landlords progressed," continued Gentry. "Although you tried to negotiate suitable terms, you eventually decided it was in a most appropriate interest to concentration upon a alternative numerous acquisitions you have identified which could quickly take a place." The association plans to go upon pursuing an aggressive M&A program throughout 2012, focused upon acquiring comforts which fit within a optimization plan as well as have a ability to increase a company's overall Medicare census as well as patient acuity. "Our pipeline of intensity acquisitions is as robust as ever, as well as you have been working upon several opportunities for owned comforts which you expect to announce soon," added Gentry. "All of these comforts have been within a existing seven state footprints, where you can leverage a existing informal operations teams." Combining a company's current annualized run-rate with exchange in a process of closing, AdCare's estimated annualized revenue run-rate is expected to surpass $246 million. This would represent an increase of some-more than 62% over a company's revenues in 2011, as well as an increase of some-more than 8 times revenues given initiating a M&A campaign in a fall of 2009. "As a portfolio of learned nursing comforts expands, you go upon to concentration upon cost reduction strategies which urge margins going forward," continued Gentry. "We not long ago lowered a stipulate therapy costs, have been now leveraging a GPO program for a healing supplies as well as food purchases, negotiating with pharmacy providers as well as have been in a final stages of outsourcing a vast part of a IT infrastructure. We estimate which when entirely implemented these cost reduction initiatives will save $4 million annually." Chris Brogdon, AdCare's vice chairman as well as chief acquisitions officer, commented: "Today's new signing brings a sum number of comforts we've put underneath stipulate to 47 given you began a current M&A program. This transaction also increases a sum number of comforts we've put underneath stipulate to 12 in Oklahoma. With a M&A program as well as a integration of new comforts remaining a major concentration in 2012, you go upon to weigh a number of opportunities which fit a merger strategy. And you demonstrated today which you have been willing to walk away from those exchange which you discover have been not aligned with this strategy." About AdCare Health SystemsAdCare Health Systems, Inc. (AMEX: ADK - News) is a recognized innovator in senior living as well as illness caring facility management. AdCare develops, owns as well as manages long-term caring comforts as well as early retirement communities, as well as given a company's inception in 1988, a mission has been to yield a top quality of healthcare services to a elderly, including a extended range of learned nursing as well as sub-acute caring services. For some-more information about AdCare, visit www.adcarehealth.com. Important Cautions Regarding Forward-Looking StatementsStatements contained in this press recover which have been not historical facts may be forward-looking statements within a meaning of federal law. Such statements can be identified by a use of forward-looking terminology, such as "believes," "expects," "plans," "intends," "anticipates" as well as variations of such words or similar expressions, but their deficiency does not mean which a statement is not forward-looking. Statements in this announcement which have been forward-looking include, but have been not limited to, statements done by Mr. Gentry which a association expects better results, as well as statements by Mr. Brogdon which a association continues to expect a new comforts as well as those pending acquisitions to urge a company's overall EBITDAR margin, as well as alternative statements per a signing as well as closing of expected acquisitions, as well as a company's expected annualized run-rate. Such forward-looking statements simulate management's beliefs as well as assumptions as well as have been based upon information now available to government as well as engage known as well as unknown risks, results, performance or achievements of AdCare, which may differ materially from those expressed or implied in such statements. Such factors have been identified in a open filings done by AdCare with a Securities as well as Exchange Commission as well as include, among others, AdCare's ability to secure lines of credit and/or an merger credit facility, find suitable merger properties at auspicious terms, changes in a illness caring attention because of domestic as well as economic influences, changes in regulations governing a illness caring industry, changes in reimbursement levels including those underneath a Medicare as well as Medicaid programs as well as changes in a competitive marketplace. There can be no assurance which such factors or alternative factors will not affect a accuracy of such forward-looking statements. Except where required by law, AdCare undertakes no obligation to revise or update any forward-looking statements to simulate events or circumstances after a date of this press release. In addition, comforts mentioned in this press recover have been operated by a separate, unconditionally owned, independent handling subsidiary which has a own management, employees as well as assets. References to a consolidated association as well as a assets as well as activities, as well as a use of terms such as "we," "us," "our," as well as similar verbiage, is not meant to indicate which AdCare Health Systems, Inc. has direct handling assets, employees or revenue or which any of a facilities, a home illness commercial operation or alternative related businesses have been operated by a same entity. Powered By iWebRSS.co.cc
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