Assisted Living Concepts, Inc. ( ALC ) (NYSE:ALC) last week reported a net loss of $11.8 million in the first quarter of 2009. The company took a massive non-cash, non recurring impairment charge to write-off goodwill of $14.7 million dollars. Without the charge, the company would have reported net income of $2.9 million. The impairment charge was primarily driven by adverse equity market conditions which intensified during the first quarter of 2009 and caused a decrease in ALC s market multiples and stock price at March 31, 2009 as compared to December 31, 2008. ALC said that the one time impairment charge will not have any impact on financial covenants and will not impact ongoing business operations.
The company also announced that:
- Adjusted EBITDAR as a percent of revenues increases to 28.5% in the first quarter of 2009, up from
28.2% in the fourth quarter of 2008
- Private pay occupancy in 2009 first quarter declined by 64 units from fourth quarter 2008 level
- 211 expansion units are coming on line at the end of March 2009
- It intends to borrow up to $14 million of mortgage debt from TCF Bank
For the full earnings release, click here.