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Stock Market & Financial Investment News

News Breaks
July 23, 2014
16:26 EDTADKAdCare announces strategic plan to transition to a facilities holding company
AdCare Health Systems announced that the board has approved, and management has begun to implement, a strategic plan to transition the company to a healthcare property holding and leasing company. Through a series of leasing transactions, the operations of the company's currently owned and operated healthcare facilities, which are principally skilled nursing facilities, will be transitioned to third parties, and the properties AdCare leases will be sub-leased. The board believes this new business model will help the company unlock shareholder value by reducing risk, enhancing cash flow and enabling the company to return cash to shareholders through a quarterly dividend. Under the strategic plan, the company expects through headcount reductions and other expense-reducing efforts, G&A will be significantly reduced, a significant improvement in earnings before taxes and existing net operating losses of approximately $25.8M will be available to offset future taxable income.
News For ADK From The Last 14 Days
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March 3, 2015
08:02 EDTADKAdCare leases three facilities in North and South Carolina
AdCare announced that, as part of its ongoing strategic plan to transition from an owner and operator of healthcare facilities to a healthcare property holding and leasing company, it has signed an agreement with affiliates of Symmetry Healthcare Management, an operator of long-term care facilities, to lease two of its skilled nursing facilities in South Carolina and one in North Carolina. The company also announced it has closed two long-term mortgage refinancing arrangements from a third-party lender, with respect to properties located in Arkansas and South Carolina. Symmetry Healthcare Management and its affiliates focus on all aspects of long term care, operating facilities in five states, including 16 facilities in South Carolina and Florida. The leasing agreement with Symmetry is contingent on all licenses and other approvals required by the states of North and South Carolina and is expected to become effective on or before May 1, 2015. Under the terms of the triple net lease agreements, the lessees of the facilities will be responsible for day-to-day management, ongoing maintenance and facility improvements for the duration of the leases. The initial term of the leases is fifteen years with a five year renewal option. The annual rent in the first year will total $1.8 million and will escalate at 3% each year through the initial term and 3% upon renewal. The third-party mortgage refinancing agreement, which includes long-term refinancing of approximately $21.0 million of mortgage debt with more favorable terms and an extended maturity date, is associated with the Company's Northridge Health Care, Woodland Hills Health Care and Cumberland Healthcare nursing facilities, each located in Arkansas, and the Company's Georgetown Healthcare and Rehabilitation and Sumter Valley Nursing and Rehab Center, each located in South Carolina. The Arkansas Mortgage Facility and the South Carolina Mortgage Facility are guaranteed by AdCare Health Systems, Inc. and are secured by a first-priority security interest in favor of the lender in the Arkansas Properties and the South Carolina Properties, respectively, and all other assets of the Company's subsidiaries which own such properties.
February 23, 2015
12:41 EDTADKPark City Capital raises stake in AdCare to 7.1% from 6.3%

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