UNIVERSITY GENERAL HEALTH SYSTEM INC 
By FRIENDSWOOD, Texas, Nov. 16 /PRNewswire-FirstCall/ -- TrinityCare Senior Living, Inc. (OTC Bulletin Board: TCSR), (the "Company"), which develops, manages and owns faith-based senior living facilities, today announced operating results for the third quarter and first nine months of 2009.
For the three months ended September 30, 2009, revenues rose 15% to $1,659,501, compared with $1,445,446 in the third quarter of 2008. Gross profit increased 49% to $1,236,267 in the most recent quarter, versus $829,261 in the prior-year quarter, and gross profit margin expanded to 74.5% of revenues, compared with 57.4% in the three months ended September 30, 2008. The increase in gross profit was primarily due to the stabilization of occupancy rates at the Company's newly constructed properties. Operating income increased to $15,859, compared with an operating loss of ($157,451) in the third quarter of 2008. The Company reported a net loss of ($369,105) in the third quarter of 2009, versus a prior-year net loss, before deduction of minority interest in such net loss, of ($334,719). On a per-share basis, the Company lost ($0.08) per share in the most recent quarter, versus a net loss after deduction of minority interest of ($2.94) per share in the year-earlier period. The weighted average number of common shares outstanding totaled 4,686,250 in the three months ended September 30, 2009, compared with 56,200 in the prior-year quarter.
The Company reported non-GAAP, minority adjusted EBITDA of $100,199, or $0.02 per share, for the three months ended September 30, 2009. (Non-GAAP adjusted EBITDA is described in greater detail in a table at the end of this news release).
"This represents our third consecutive quarter of revenue growth, and we are very pleased with the significant improvements in gross profit and operating income," stated Donald W. Sapaugh, Chairman and Chief Executive Officer of TrinityCare Senior Living, Inc. "Our consolidated occupancy rate was stable in the most recent quarter and our cost controls were effective. We anticipate continued financial success as we prepare to duplicate this model in our expansion strategy. The senior living industry is fortunate to reflect limited impact from the current economic recession, and our performance indicates a resilience to changing economic conditions."
For the nine months ended September 30, 2009, revenues increased 15% to $4,801,305, compared with $4,179,546 in the first nine months of 2008. Gross profit increased 29% to $3,083,822 for the nine months, versus $2,396,658 in the corresponding period of the previous year. Gross profit margin improved to 64.2% of revenues, compared with 57.3% in the nine months ended September 30, 2008. The Company reported an operating loss of ($168,741) in the first nine months of 2009, which reflected an improvement of 69% when compared with a prior-year operating loss of ($548,781). A net loss of ($1,090,272) was recorded in the nine months ended September 30, 2009, versus a prior-year net loss, before deduction of minority interest in such net loss, of ($1,443,567). On a per-share basis, the Company lost ($0.42) per share in the first nine months of 2009, versus a net loss after deduction of minority interest of ($11.43) per share in the year-earlier period. The weighted average number of common shares outstanding totaled 2,580,259 in the nine months ended September 30, 2009, compared with 56,200 in the prior-year period.
The Company reported non-GAAP, minority adjusted EBITDA of $226,971, or $0.09 per share, for the nine months ended September 30, 2009. (Non-GAAP adjusted EBITDA is described in greater detail in a table at the end of this news release).
About TrinityCare Senior Living, Inc.
TrinityCare is a rapidly growing company that develops, owns and manages quality senior living facilities that focus on enriching the faith of residents while providing state-of-the-art independent living, assisted living, memory care and adult day care services in a single location. The Company partners with local churches and developers for each facility and offers a wide range of both community and personal services to residents.
Headquartered in Friendswood, Texas, the Company currently operates three successful facilities in Texas and Tennessee. Near-term expansion plans are focused upon markets in the Southeastern U.S. For additional information, please visit www.trinitycare.com.
For Additional Information, Please Contact:
Donald W. Sapaugh, CEO, at (281) 482-9700
or
RJ Falkner & Company, Inc., Investor Relations Counsel
at (830) 693-4400 or via email at info@rjfalkner.com
(Financial Highlights Follow)
TrinityCare Senior Living, Inc. and Subsidiaries
Consolidated Balance Sheets
September 30, December 31,
2009 2008
(unaudited)
ASSETS
Cash $471,927 $546,164
Accounts receivable 50,588 81,620
Prepaid expenses 390,316 258,917
------- -------
Total Current Assets 912,831 886,701
------- -------
Property and equipment 17,077,497 16,956,608
Accumulated depreciation (2,446,367) (2,015,398)
---------- ----------
14,631,130 14,941,210
---------- ----------
Loan costs 315,168 251,136
Accumulated amortization (35,249) (6,067)
------- ------
279,919 245,069
------- -------
Project development costs 111,022 9,120
Deposits and reserves 160,574 271,076
------- -------
551,515 525,265
------- -------
Total Assets $16,095,476 $16,353,176
=========== ===========
LIABILITIES
Accounts payable $286,742 $482,487
Accrued expenses 650,383 404,122
Deferred revenue 581,835 139,037
Line of credit 77,106 79,022
Current portion of long-term debt 520,770 5,661,069
Total Current Liabilities 2,116,836 6,765,737
Mortgage 17,255,105 12,321,991
Notes payable and other debt 1,327,595 895,229
Derivative liability 282,364 -
------- ---
Total Long-Term Debt 18,865,064 13,217,220
---------- ----------
Total Liabilities 20,981,900 19,982,957
---------- ----------
Commitments and contingencies - -
EQUITY (DEFICIT)
Preferred stock, $.001 par,
20,000,000 authorized:
Preferred stock A: 16,000 and 0
issued and outstanding 16 -
Preferred stock B: 3,000 and 0
issued and outstanding 3 -
Common stock: $.001 par,
480,000,000 authorized;
10,883,284 and 56,200 issued and
outstanding 10,883 562
Additional paid in capital 3,991,215 3,971,679
Minority interest - -
Retained earnings (Deficit) (8,888,541) (7,602,022)
---------- ----------
Total Equity (Deficit) (4,886,424) (3,629,781)
---------- ----------
Total Liabilities and Equity
(Deficit) $16,095,476 $16,353,176
=========== ===========
TrinityCare Senior Living, Inc and Subsidiaries
Consolidated Statements of Operation
For the Three and Nine Months Ended September 30, 2009 and 2008
(unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2009 2008 2009 2008
Revenues:
Resident revenue $1,622,648 $1,419,420 $4,703,924 $4,073,876
Publication revenue 36,853 26,026 97,381 105,670
------ ------ ------ -------
Total Revenues 1,659,501 1,445,446 4,801,305 4,179,546
--------- --------- --------- ---------
Direct Costs
Direct labor 289,512 446,319 1,203,057 1,271,238
Direct costs of
operations 133,722 169,866 487,426 511,650
------- ------- ------- -------
Total Direct Costs 423,234 616,185 1,717,483 1,782,888
------- ------- --------- ---------
Gross Profit 1,236,267 829,261 3,083,822 2,396,658
--------- ------- --------- ---------
Operating Costs
Advertising 35,187 29,590 111,856 92,537
Marketing and Selling 12,096 11,745 35,817 32,327
Publishing 24,334 22,680 95,485 90,330
Payroll expenses 612,451 410,158 1,312,005 1,015,863
General and
administrative 35,462 (31,228) 143,527 156,145
Professional 55,147 29,082 220,183 114,009
Insurance 52,011 123,340 155,939 241,758
Rent and facility 244,630 239,264 717,289 711,528
Depreciation and
amortization 149,090 152,081 460,462 490,942
Total operating
expenses 1,220,408 986,712 3,252,563 2,945,439
--------- ------- --------- ---------
Operating
income (loss) 15,859 (157,451) (168,741) (548,781)
------ -------- -------- --------
Interest expense 294,200 177,268 839,417 894,786
Loan origination fees 64,750 - 64,750 -
Loss on derivative 26,014 - 17,364 -
------ --- ------ ---
Loss before minority
interest (369,105) (334,719) (1,090,272) (1,443,567)
Minority interest in
net loss - 169,741 - 801,301
--- ------- --- -------
Loss $(369,105) $(164,978) $(1,090,272) $(642,266)
========= ========= =========== =========
Loss per share, basic
and diluted $(0.08) $(2.94) $(0.42) $(11.43)
====== ====== ====== =======
Basic and diluted
weighted average
number of common
shares 4,686,250 56,200 2,580,259 56,200
========= ====== ========= ======
The table below shows the reconciliation of net loss to Adjusted EBITDA
for the three and nine months ended September 30, 2009 and 2008:
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2009 2008 2009 2008
Net Loss ($369,105) (164,978) (1,090,272) (642,266)
Interest expense 294,200 177,268 839,417 894,786
------- ------- ------- -------
Income (loss) from
operations (74,905) 12,290 (250,855) 252,520
Depreciation and
amortization 149,090 152,081 460,462 490,942
Loss on derivative 26,014 - 17,364 -
EBITDA as adjusted,
before minority
interest 100,199 164,371 226,971 743,462
Minority interest - (169,741) - (801,301)
Adjusted EBITDA
excluding
minority interest 100,199 (5,370) 226,971 (57,839)
======= ====== ======= =======
Adjusted EBITDA
excluding minority
interest, Profit
(Loss) per share,
basic and diluted $0.02 $(0.10) $0.09 $(1.03)
----- ====== =====
Basic and diluted
weighted average
number of common
shares 4,686,250 56,200 2,580,259 56,200
========= ====== ========= ======
SOURCE TrinityCare Senior Living, Inc.
