Assisted Living Concepts, Inc. (NYSE:ALC) reported net income of $5.4 million in the fourth quarter of 2010 as compared to net income of $4.3 million in the fourth quarter of 2009. ALC’s net income for the full year 2010 was $16.5 million on revenues of $233.1 million that were $4.4 million or 1.9% higher than full year 2009. Fourth quarter revenues were up as a result of rate increases and increases in private pay occupancy. Average private pay rates increased in the fourth quarter of 2010 by 2.7% over average private pay rates for Q4 2009. Average overall rates increased in the fourth quarter of 2010 by 3.9% over comparable rates for the fourth quarter of 2009. The average number of units occupied by Medicaid residents declined by 192 units.
During February 2011, ALC ALC entered into a five year, $125 million revolving credit facility secured by first mortgages on certain properties in its portfolio that matures in 2016. The appraised average per unit value was in excess of $130,000 based upon the appraisals associated with the credit facility.
“During the fourth and early part of the first quarter, we completed our acquisition of nine previously leased residences and refinanced our line of credit. Appraised values of the units securing the new line of credit were in excess of $130,000 per unit,” commented Laurie Bebo, President and Chief Executive Officer. “Operating results continue to demonstrate the tremendous potential of our private pay strategy as Adjusted EBITDAR dollars and Adjusted EBITDAR margins reached record levels.”