Assisted Living Concepts, Inc. ( ALC ) (NYSE:ALC) reported net income of $3.0 million in the 2008 fourth quarter compared to net income of $4.1 million in the 2007 fourth quarter and cited the decrease attributable to an increase in residence lease expense primarily from the CaraVita acquisition. The company’s net income decreased from $17.2 million in 2007 to $14.3 million in 2008. The company announced that it has completed, licensed, and begun accepting new residents in approximately 80 units under their expansion program by the end of the fourth quarter of 2008. Construction continues on the remaining expansion units in the company’s portfolio to add 400 units to existing owned buildings. Weather issues, primarily related to heavy rains and flooding in the Midwest and hurricanes in the Texas and Louisiana regions, obtaining regulatory approvals, and other unforeseen circumstances have resulted in delays. The company is currently targeting completion of 170 units in the first quarter of 2009, 100 in the second 3quarter, 25 units in the third quarter, and the remaining 25 in the fourth quarter.
“Private pay occupancy remained flat in the fourth quarter of 2008, despite the numerous economic headwinds, commented Laurie Bebo, President and Chief Executive Officer of Assisted Living Concepts, Inc. We look forward to the new year with the opening of the remaining expansion units helping to offset the soft economic outlook.”
For its full earning release, click here.