Boston, MA 08/11/2014 (wallstreetpr) – Diversicare Healthcare Services Inc (NASDAQ:DVCR) posted second quarter results wherein the adjusted net income came at $0.17 per share. The adjusted EBITDA came at $4.6 million. The revenues saw a sharp jump of 33.9% year-over-year. The revenues came at $82.3 million. Recently, the company also announced the quarterly dividend of $0.055 per common share. It will be paid on October 14, 2014.
The financial highlights
Diversicare Healthcare Services Inc (NASDAQ:DVCR) reported the net revenues of $82.3 million as compared to $61.5 million in 2Q2013. It came higher by 33.9% due to the new acquisitions of 11 nursing centers in last one year. The operating income from facility-level was up by 57.8% to $17.6 million as compared to $11.2 million in 2Q2013. It didn’t cover the professional liability expense. The general and administrative expenses declined by 6.5% as compared to 9.4% in 2Q2013. The adjusted EBITDA came at $4.6 million as compared to $0.5 million in 2013. The results included the performance of the 73-bed facility acquired in the month of June in Kentucky.
The management view
The CEO, Kelly Gill said that the second-quarter results are as per the expectations. The strategic plans and the operating initiatives resulted in strong growth. The second-quarter reflects the strong EBITDA growth since the company completed the restricting in 3Q2013. It is the third consecutive quarter with impressive growth. Diversicare Healthcare Services Inc (NASDAQ:DVCR) is walking on the right path by making strategic investments and meaningful repositioning in the company.
Improvement in financial metrics
The financial metrics are improving. The various factors like skilled mix, occupancy and the average daily reimbursement are trending in a positive direction. The G&A expense seen as a percentage of revenue has declined and it suggest the strategic portfolio growth. Diversicare Healthcare Services Inc (NASDAQ:DVCR) added five new centers, two in Ohio and three other centers in Missouri. The portfolio expansion stands at seven new centers in 2014. The outlook for the coming quarters remains positive and strong.
