This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

AdCare Health Systems Closes Acquisition Of Three Skilled Nursing Facilities

Stocks in this article: ADK

ATLANTA, Jan. 8, 2013 /PRNewswire/ --  AdCare Health Systems, Inc. (NYSE MKT: ADK), a leading long-term care provider, today announced it has completed the previously announced agreement to purchase three skilled nursing facilities for $13.5 million.

The facilities include:

  • Sumter Valley Nursing and Rehab Center in Sumter, South Carolina, a 96-bed facility, generating an estimated $6.7 million in annualized gross revenues, according to their most recent financials.
  • Georgetown Healthcare and Rehabilitation in Georgetown, South Carolina, an 84-bed facility, generating an estimated $3.8 million in annualized gross revenues.
  • Northwest Nursing Center in Northwest Oklahoma, a 88-bed facility, generating an estimated $2.4 million in annualized gross revenues. The facility is expected to generate $7.6 million in annualized gross revenue subsequent to renovation.

AdCare has financed these acquisitions with traditional bank loans.

"These acquisitions continue our M&A efforts, and expand our presence in the southern United States," said Boyd Gentry, AdCare's president and chief executive officer. "The Sumter and Georgetown facilities represent our first acquisitions in the state of South Carolina, bringing the total number of states in which Adcare owns and operates its facilities to eight.  Our continued focus on the low-cost southern states and expanding presence in this region supports our ability to effectively leverage our management and administrative infrastructure, driving further improvement in our EBITDA margin as we scale. Our focus will now turn to increasing the post-acute census in these facilities as well as other measures that will improve these facilities  profitability."

AdCare has put under contract 51 facilities since it began its M&A campaign in the summer of 2010 and 13 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 $300 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.

In addition, the Company announced that Chris Brogdon has resigned as AdCare's chief acquisitions officer. Mr. Brogdon will remain the Company's Vice Chairman, and will continue to serve AdCare as a consultant, overseeing M&A activity. Under this revised arrangement, Mr. Brogdon will continue to provide essentially the same services to the Company as he did as CAO.

"We look forward to continuing to benefit from Chris' expertise and efforts," added Mr. Gentry.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs