Monday, January 30, 2012 12:22:32 PM
According to a recent investment analysis report by Stonegate Securities, AdCare, an Ohio-based developer, owner, and operator of skilled nursing and assisted living communities, “holds significant potential for investors”. It bases its conclusion on the following:
• AdCare is executing an aggressive acquisition strategy – The company has begun buying skilled nursing facilities from independent operators, with the acquisition target calling for optimization potential and a reasonable price. According to a recent press release, 54 facilities have been put under contract since the campaign began. AdCare has been careful to avoid states with unhealthy economies, and has focused on the Southeast, Southwest, and Midwest.
• AdCare is improving the metrics associated with the acquired facilities – Once an appropriate property is acquired, AdCare increases the acuity level of the services it offers, increasing the Medicare census and the resulting reimbursement rates. In addition, AdCare identifies and implements various operational efficiencies, improving the bottom line. As a result, the company’s Medicare census has increased by 37.5% at acquired facilities. AdCare has also been able to offset recent cuts in Medicare reimbursements.
• AdCare revenues are increasing at record rates – Third quarter 2011 revenues increased a record 208% over the prior year, to $40.9 million, due to the company’s acquisition strategy and operation optimization results. Given the company’s success to date, and the announced acquisitions yet to close, management guidance points to annual recurring revenue of over $300 million, a 460% increase over 2010 levels. And this doesn’t include acquisitions not yet announced.
• AdCare has unique growth opportunities due to a fragmented but growing industry – The overall value of the long-term care market grew from $186 billion in 2005 to $258 billion in 2010, and is expected to continue to grow at over 6% annually. The skilled nursing care market, AdCare’s acquisition focus, is the biggest market segment. The long-term care market is extremely fragmented, with roughly 80% of nursing homes being privately owned single facilities, providing many acquisition candidates.
Recent ADK News
- L'Organisme canadien de réglementation des investissements permet la reprise de la négociation - ADK • PR Newswire (Canada) • 12/11/2023 02:32:00 PM
- Canadian Investment Regulatory Organization Trade Resumption - ADK • PR Newswire (Canada) • 12/11/2023 02:31:00 PM
- Suspension de la négociation par l'Organisme canadien de réglementation des investissements - ADK • PR Newswire (Canada) • 12/08/2023 05:49:00 PM
- Canadian Investment Regulatory Organization Trading Halt - ADK • PR Newswire (Canada) • 12/08/2023 05:44:00 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM