Replies to post #24 on Assisted Living Concepts Inc (ALC)

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Tuesday, May 6, 2008 - 2:56 PM CDT
Assisted Living posts higher revenue
The Business Journal of Milwaukee

Assisted Living Concepts Inc. reported that its net income declined in the first quarter, but its revenue increased due to the acquisition of eight assisted living centers.

The Menomonee Falls assisted living center operator said net income for the quarter was $4.1 million, or 6 cents per share, compared with $4.7 million, or 7 cents per share, for the same period a year ago. Revenue increased 5 percent to $60.2 million from $57.5 million.

Net income declined because of higher amortization and depreciation expense and other expenses. Occupancy rates declined to an average of 71 percent in the first quarter, compared with 84 percent in the same period last year. However, the percentage of its revenue coming from private payers -- a more profitable resident as opposed to those covered by Medicaid -- rose to 90 percent, the firm said.

Overall revenue growth was largely driven by the acquisition of eight assisted living residences doing business as Cara Vita. The residences were 90 percent occupied with all private pay residents at the time of the $14.5 million acquisition.

As of March 31, Assisted Living Concepts (NYSE: ALC) operated 216 assisted living residences representing 9,076 units.