This stock really held it's ground today and went up another 2 or 3 points at closing bell or after hours.

This stock really held it's ground today and even went up 2 or 3 points at last bell or after hours.

Lets get moving no reason for dips should be easy 10.00 price target

Only will go higher with todays growing number of elderly

Great stock play

Dividend paid hell yeah

Can see this easily slapping the 10$ mark

Senior assistance is a multi billion dollar industry

Probably the best stock with high potential

52 wk high and still moving

New nursing facility great news!

New nursing facility awesome news

On there website there is investor relations number

Whos the current CFO and best telephone number to call ??

Buyers be warned!! Huge potential for growth

This is a HOT stock!

Adk selling shares for shareholder, pps boom!

Moving up past 52wk high today

Moving almost to 52 wk high

The stock dividend is great news!!! 5% for a fairly new company.. Acquiring smaller companies great

Breakout board?

Lets start the fire!!

Lets work on making this stock known!

Why is there no hype, one of the top rated stocks

Dividend announced 5%

Hopefully easy 10-15$ by end of year

Great stock can see it being the next ADHC

ADK Closes Previously Announced Public Offering of Common Stock

Today, AdCare Health Systems announced the completion of its previously announced firm commitment underwritten offering of 1,100,000 shares of AdCare’s common stock at a price per share to the public of $3.75. The net proceeds from the offering, after underwriting discounts and commissions and other offering expenses, were reported at approximately $3.7 million.

According to today’s press release, AdCare plans to use the net proceeds from the offering for working capital and other general corporate purposes. Noble Financial Capital Markets acted as sole underwriter for the offering, and all conditions to the closing of the offering were satisfied.

The shares of common stock were offered pursuant to AdCare’s existing effective shelf registration statement that was previously filed with the Securities and Exchange Commission and declared effective last year. A final prospectus supplement relating to the offering was filed with the Securities and Exchange Commission three days ago. Copies of the final prospectus supplement and the accompanying prospectus may be obtained from Noble Financial Capital Markets.

AdCare Health Systems is an expanding national leader in the development, ownership, and management of assisted living facilities, skilled nursing, and retirement communities. The company’s 3,600 employees provide high-quality care for patients and residents residing in the 44 facilities that it operates with a total of approximately 3,900 beds/units in service.

Since inception, AdCare’s mission has been to provide the highest quality healthcare services to the elderly. With nine straight years of record revenue growth, the company has proven its ability to deliver high-quality care and strong operational efficiency. AdCare is well positioned to continue growing rapidly, both organically and via acquisitions, as industry trends and burgeoning opportunities across the U.S. increase the demand for long-term care.

ADK is Successful with Diverse Property Portfolio

AdCare Health Systems, an aggressively expanding owner and operator of living and care facilities in 7 states, believes that a significant part of its success is due to the fact that it treats every newly acquired property as a unique entity, requiring a unique approach to improve its operational income and ultimate value.

The company now controls approximately 44 properties in Alabama, Arkansas, Georgia, Missouri, North Carolina, Ohio, and Oklahoma, with over 4,000 employees. The facilities are either owned or leased by AdCare, or, in some cases, they are managed for third parties such as corporations or independent owners. As a result, AdCare has garnered extensive experience in all aspects of senior living facility ownership and management, including operation, design, and development consultation, as well as in the provision of interim administrator and/or director of nursing, for all sizes and types of properties.

• Independent Living – AdCare’s independent campuses provide people the freedom in their retirement years to achieve personal goals.
• Assisted Living – Through their Hearth & Home design program, AdCare has created spaces where the individual spirit is nourished.
• Skilled Nursing – AdCare prides itself in the superior care and services provided by their nursing homes.
• Dementia Care – AdCare provides special programs for residents with dementia, offering the highest possible quality of life and care.

AdCare’s fast-paced acquisition run has targeted under-performing low-margin properties, which are then turned around, partly through transitioning them over to higher-margin acute care facilities. The management team, which controls over 25% of the company’s common stock, has worked hard to grow AdCare’s administrative infrastructure, so that they are always able to handle the growth.

It’s a formula that continues to work for AdCare, generating a string of record revenues and income. 2011 was the company’s best year ever, with revenue up 198% from 2010 and annual income from operations jumping to $2.7 million. So far, 2012 is on track to be even better.

Firms Line Up Behind ADK

When Ladenburg Thalmann, one of the country’s oldest and most respected investment banks, recently initiated coverage of AdCare Health Systems, giving the company a “buy” rating which it continues to maintain, it based its decision on the clear prospects AdCare has for future growth.

Ohio-based AdCare is a rapidly expanding owner and operator of living and care facilities in 7 states, primarily in the South. The company has been on an aggressive acquisition run, going after under-performing low-margin skilled nursing properties, and then turning the operations around, partly through transitioning them over to higher-margin acute care facilities.

The result has been a dramatic growth in revenues, up 198% from 2010, with record annual income from operations. AdCare now has approximately 44 facilities, with over 4,000 employees, supporting more than 3,000 patients. The company’s management team has been able to handle the growth, carefully scaling internal infrastructure and back office support in parallel with their expansion, and intends to move forward with what they see as a stunningly successful strategy. The management team has substantial senior living, healthcare, and real estate industry experience, and is itself incentivized to continue to build the business through their combined ownership of approximately 25.6% of common AdCare stock.

Ladenburg Thalmann is just one of the firms giving AdCare a positive review. Kinetic Investments, a subsidiary of Wilkison Financial LLC, and Stonegate Securities also recently gave the company a “buy” rating. AdCare is clearly on to something, repeatedly and successfully implementing its growth-oriented business model, making it an easy company to support. It also has a massive demographic shift on its side, with an aging boomer population, and an attractive financing option through a USDA program for rural projects.

ADK Continues Aggressive M&A Campaign; Acquires Two Skilled Nursing Facilities in Oklahoma

AdCare Health Systems, Inc., a leading long-term care provider, just announced that it has inked definitive purchase agreements for two skilled nursing facilities in Oklahoma for a total consideration of $11.6 million. Adding 239 beds in service and an estimated $10.3 million in gross annualized revenues, the transaction is anticipated to be completed in the next 90 days. AdCare said it plans to use traditional bank loans to finance the acquisitions.

“Including the two new acquisitions announced today, we have a total of 12 skilled nursing facilities we expect to close in established markets over the next 120 days,” stated Boyd Gentry, AdCare’s president and chief executive officer. “Together, these facilities have existing estimated gross annualized revenues of $49.0 million, which is prior to our optimization process that we believe will increase sub-acute census and revenues.”

“We are especially excited about the significant upside of our Arkansas expansion, which includes three Little Rock facilities,” he continued. “One of these is a recently fully renovated 157 bed facility that we will open exclusively as a sub-acute facility. Once fully optimized, this facility’s revenues are anticipated to exceed $15 million. This transaction is scheduled to close at the end of this month.”

AdCare’s M&A program is driven by management’s commitment to acquire, develop, and manage facilities where it can leverage operational efficiencies and improve profitability. Staying true to this strategy, the company recently terminated an agreement to acquire or lease 15 skilled nursing facilities in South Carolina, North Carolina, Virginia, and Tennessee that was announced in June of last year. The decision was reached after further due-diligence and renegotiation efforts.

“AdCare will no longer pursue this acquisition as it has become significantly more expensive as consent negotiations with third-party landlords progressed,” commented Gentry. “Although we tried to negotiate suitable terms, we eventually decided it was in our best interest to focus on the other numerous acquisitions we have identified which could quickly take its place.”

The company plans to continue the execution of its aggressive M&A campaign throughout the rest of this year, focused on acquiring facilities that fit within its optimization strategy and have the ability to increase the company’s overall Medicare census and patient acuity.

“Our pipeline of potential acquisitions is as robust as ever, and we are working on several opportunities for owned facilities that we expect to announce soon,” added Gentry. “All of these facilities are within our existing seven state footprints, where we can leverage our existing regional operations teams.”

Combining its current annualized run-rate with transactions in the process of closing, AdCare projects annualized revenue run-rate to exceed $246 million. This would represent an increase of more than 62% over the company’s revenues in 2011, and an increase of more than 8 times revenues since the start of its M&A initiative in the fall of 2009.

“As our portfolio of skilled nursing facilities expands, we continue to focus on cost reduction strategies that improve margins going forward,” concluded Gentry. “We recently lowered our contract therapy costs, are currently leveraging a GPO program for our medical supplies and food purchases, negotiating with pharmacy providers and are in the final stages of outsourcing a large part of our IT infrastructure. We estimate that when fully implemented these cost reduction initiatives will save $4 million annually.”

Chris Brogdon, AdCare’s vice chairman and chief acquisitions officer, added, “Today’s new signing brings the total number of facilities we’ve put under contract to 47 since we began our current M&A program. This transaction also increases the total number of facilities we’ve put under contract to 12 in Oklahoma. With our M&A program and the integration of new facilities remaining our major focus in 2012, we continue to evaluate a number of opportunities that fit our acquisition strategy. And we demonstrated today that we are willing to walk away from those transactions that we discover are not aligned with this strategy.”

ADK Management Discusses Record Financial Results

In addition to the exceptional financial numbers AdCare management was able to provide in the company’s recent release of 2011 Q4 and full-year results, they also discussed their continued M&A based strategy and plans for the future. The numbers, however, plainly served to back up the management team’s choice of direction:

• Record annual revenues of $151.4 million, up 198% from 2010
• Record annual income from operations of $2.7 million
• 176% year-over-year gain in Q4 adjusted EBITDAR from continuing operations

AdCare, a rapidly growing owner and operator of care facilities covering 7 states, has had its best year ever. The company’s strategy of acquiring underperforming skilled nursing properties, and then assisting the local facilities leadership team in improving care, increasing acute care census, and evaluating payment rate structures has clearly done much to drive this performance, although AdCare experienced revenue growth on a “same-store” basis as well.

The company’s pace of acquisitions has been impressive, closing on 5 facilities in the 4th quarter and announcing additional acquisitions in Arkansas, with 5 properties under contract which are expected to close in late Q1 or early Q2. They’ve also signed a deal in Oklahoma for a 456-bed set of properties that they will manage, with a contract to purchase at an attractive price. And, beyond that, they simply say they have a robust pipeline, with a number of other opportunities coming up throughout the South. AdCare now boasts over 44 facilities, with 3,000+ patients in residence, and over 4,000 employees.

However, management made it clear that they have no intention of letting the volume of acquisitions get ahead of them. They’ve invested heavily over the past year in infrastructure to support their growing network, including establishing a scalable administrative service center in Roswell, Georgia, north of Atlanta. They’ve also adopted and integrated the industry leading clinical billing platform, PointClickCare, and have transitioned to Microsoft Dynamics, a robust general ledger and financial reporting system.

In answer to questions about “cash burn,” they pointed out that, although a lot of cash is understandably going to support acquisitions, the company continues to be effective at balancing A/R and A/P, and there were no cash surprises in Q4.

In short, AdCare feels that it has found a business model that works exceedingly well, and the company intends to continue its aggressive M&A approach.

To listen to a replay of the earnings conference call, visit the Investors section of AdCare’s website at www.AdCareHealth.com

ADK Announces Record Fourth Quarter and Full Year 2011 Results; Substantial Gains Reported Across the Board

AdCare Health Systems, a leading long-term care provider successfully executing an aggressive M&A program, reported its financial results for the fourth quarter and full year ended December 31, 2011. Highlights include a 176% year-over-year gain in Q4 adjusted EBITDAR from continuing operations; record annual revenues of $151.4 million, up 198% from the previous year; record annual income from operations of $2.7 million; and record annual adjusted EBITDAR from continuing operations, up 453% year-over-year to $16.8 million.

“Our record 2011 results reflect successful execution on our M&A program, resulting in nearly tripling our revenues over last year and record growth in adjusted EBITDAR from continuing operations,” stated Boyd P. Gentry, AdCare’s president and chief executive officer. “Our corporate strategy of optimizing skilled nursing results through guiding local facility leadership to increase their post-acute and Medicare census has helped drive this strong performance.”

The company plans to continue pursuing an aggressive M&A program. Combining its current annualized run-rate with transactions currently in the process of closing, AdCare’s estimated annualized revenue run-rate is expected to exceed $350 million. This would represent an increase of more than 131% over the company’s revenues in 2011 and an increase of more than 13 times its annualized revenue run-rate since it initiated its M&A campaign in the fall of 2009.

The increases in revenue were primarily due to acquisitions completed since December 31, 2010, as part of the AdCare’s M&A program. The company’s skilled nursing facilities that existed prior to January 1, 2011, also contributed to the improvement in revenue, driven primarily by an increase in occupancy and skilled mix. A more detailed discussion and analysis of the company’s performance will be available in AdCare’s Annual Report on Form 10-K for the year ended December 31, 2011, as filed with the Securities and Exchange Commission.

Loss from operations in the fourth quarter of 2011 was $0.4 million, as compared to a loss from operations of $0.8 million in the fourth quarter of 2010. Income from operations for the full year of 2011 was a record $2.7 million, as compared to a loss from operations of $1.9 million in 2010. The increase in income from operations was primarily attributed to acquisitions and revenue improvement in acquired facilities, partially offset by salary and retirement costs of $1.5 million incurred only in 2011.

Adjusted EBITDAR from continuing operations in the fourth quarter of 2011 totaled $4.5 million, up 176% from adjusted EBITDAR from continuing operations of $1.6 million in the fourth quarter of 2010. Adjusted EBITDAR from continuing operations for the full year 2011 totaled a record $16.8 million, an increase of 453% from an adjusted EBITDAR from continuing operations of $3.0 million in 2010.

Combined cash, current restricted cash, and cash equivalents at December 31, 2011, totaled $8.7 million compared to $5.0 million at December 31, 2010.

Q4 2011 Operational Highlights

• Appointed David Rubenstein to the position of executive vice president and chief operating officer. Rubenstein brings to AdCare extensive operational experience in delivering long-term care and in implementing operating strategies that maximize facility productivity, minimize costs and increase Medicare census.
• Completed the acquisition of a skilled nursing and assisted living community in Mountain View, Arkansas, with an aggregate of 128 beds in service and an estimated $5.4 million in gross annualized revenues (according to its most recent financials). Its addition was also immediately accretive to AdCare’s earnings.
• Completed the acquisition of a skilled nursing and assisted living community in Springfield, Ohio, which has 179 beds in service and an estimated $12.5 million in gross annualized revenues (according to its most recent financials). Management obtained effective control of the facilities on January 1, 2012. Its addition will be immediately accretive to AdCare’s earnings.
• Signed a purchase agreement for three skilled nursing facilities in Arkansas with an aggregate of 437 beds and an estimated $15.9 million in gross annualized revenues (according to its most recent financials). The acquisition is anticipated to be completed by March 31, 2012.
• Signed a purchase agreement for five skilled nursing facilities in Oklahoma that has, on aggregate, 456 beds in service and an estimated $13.2 million in gross annualized revenues. The acquisition is anticipated to be immediately accretive to the company’s earnings upon closing, which is expected in the second quarter of 2012.
• At the end of the fourth quarter, the company operated 42 facilities comprised of 33 skilled nursing centers, eight assisted living residences and one independent living/senior housing facility, with 3,737 total beds/units in service. Of these 42 facilities, 20 are owned, 12 are leased, six are consolidated variable interest entities, and four are managed for third parties. The facilities are located in Alabama, Arkansas, Georgia, Missouri, North Carolina, Ohio and Oklahoma.

Chris Brogdon, AdCare’s chief acquisition officer, commented, “AdCare has put under contract 59 facilities since we began our M&A campaign in the fall of 2009 and 32 since the beginning of 2011. During the quarter, our M&A program expanded operations into the Southwest, established two additional facilities in Arkansas and Ohio, and put five additional facilities under contract in Oklahoma and five in Arkansas. We continue to expect our new facilities and these pending acquisitions to improve our overall EBITDA margin.”

“We are currently evaluating several attractive opportunities in the Southern region of the U.S.,” concluded Brogdon, “with accretive acquisitions and the optimization of our facilities continuing to be our major focus in 2012.”

Seeking Alpha Publishes Article Featuring ADK

Today, Seeking Alpha published the following article featuring AdCare Health: http://seekingalpha.com/article/416831

Few investment opportunities are sweeter than a turnaround, where the value of a company is increased, sometimes dramatically, through the measured application of superior operational procedures, technologies, or marketing approaches. Usually this involves a single company bringing in new management to make the company more efficient or perhaps point the company in a totally new direction. With big companies, a turnaround can take years, even decades, and it's largely a one-shot deal, a relatively rare opportunity that can be hard to identify until the train has already left the station. But there is another type of turnaround scenario, one that is continuous in nature, involving multiple business entities. It's even less common than the traditional situation, but provides unique benefits.

A prime example is AdCare Health Systems, an Ohio-based healthcare service provider that owns, operates, and manages skilled nursing homes, assisted living facilities, and retirement communities in a number of states, largely in the southeast. Facilities include independent living campuses, assisted living facilities, nursing homes, and dementia care homes. They also offer comprehensive home health care services. The company itself is not a turnaround target, but has become an aggressive and successful turnaround operator in the highly fragmented assisted living facilities industry.

AdCare has recognized, and is addressing, fundamental industry weaknesses, allowing it to acquire and turn around one operation after another, continually increasing revenue and building its own bottom line. The assisted living facilities industry today consists largely of independently owned local or regional businesses, often family controlled. These properties are frequently low-margin long-term care facilities, trying to deal with inefficiencies common in small independently run businesses. AdCare, using a carefully developed process of target identification, acquisition, and customized restructuring, is continuously in the process of evaluating and taking over such businesses, gradually transitioning them into efficiently run profitable operations, further increasing profit margins by emphasizing higher-margin acute care services supported by Medicare. To date, the strategy has increased Medicare census by 37.5% at acquired facilities.

Although they are careful to avoid states with severe financial problems, which could directly affect income, it's a model they've been able to spread from their home base in Ohio to dozens of facilities in Georgia, Alabama, Arkansas, and North Carolina, as well as other states, with new acquisitions currently underway. The company has a senior management team with decades of related experience, and their facilities have a strong and positive reputation.

AdCare's Chairman, David Tenwick, has extensive experience in mergers, acquisitions, and the raising of capital to keep the process moving, and their CEO, Boyd Gentry, has many years of experience in acquisition and divestiture. With a combined ownership of over 25% of common AdCare stock, the entire management team is incentivized to continue to grow the business for the benefit of shareholders.

It's a formula that seems to have worked. The net result has been ongoing and accelerating growth in revenue, covering several years, with fiscal 2010 and 2011 being the best of all. AdCare is now looking at the largest year-over-year revenue growth in the company's history. Moreover, the company's net income is seeing its first intermittent forays into positive territory. Add to this the fact that the industry is facing one of the biggest aging population booms in history, and the value of AdCare's position becomes clear.

Bert Wilkison of Chicago-based Kinetic Investments, a subsidiary of Wilkison Financial LLC, calls AdCare Health Systems an undervalued buy and hold stock, pointing primarily to the company's growth strategy. According to Wilkison, the reason the stock is undervalued is due to a "lack of understanding and appreciation of its growth plan and strategic acquisition model."

Also pointing to the strength of AdCare's unique approach to a growing but highly fragmented market is the recent positive report on the company by Stonegate Securities. The Stonegate report projects strong growth rates for AdCare over the next few years, 87% for 2012 versus 6% for the industry average, going on to say that the given figures also have notable upside potential, since they do not include currently unannounced acquisitions in the pipeline.

The company is currently trading around $4.30. With approximately 12.7 million shares outstanding, AdCare has a market cap of approximately $54.6 million, which is but a fraction of the company's annual sales of $134.55 million, providing a P/S ratio of only 0.41 (the industry average is more than twice as high). Furthermore, the balance sheet has remained solid throughout AdCare's aggressive M&A program. As of last report, the company held $158.3 million in total assets and $138.3 million in total liabilities.

In short, AdCare has done far more than simply improve an existing product, putting itself in a more competitive position. The company has built a financial engine, continually finding and revamping other businesses. For investors, it's a rare chance to profit from more than just a single turnaround.

ADK Announces Upcoming Fourth Quarter and Full Year 2011 Conference Call

AdCare Health Systems, a leading long-term care provider, today announced that it will be holding a conference call later this week on Friday, March 9, 2012, at 8:30 a.m. EST to discuss results for the fourth quarter and full year ended December 31, 2011. The company’s financial results will be issued in a press release before the call.

AdCare President and Chief Executive Officer Boyd P. Gentry, Chief Financial Officer Martin D. Brew, and Vice Chairman and Chief Acquisition Officer Chris Brogdon will host the presentation, followed by a question and answer period.

Dial-In Number: 1-877-941-1427
International: 1-480-629-9664
Conference ID#: 4520448

In addition to calling one of the phone numbers above, investors may also join the conference call by accessing a simultaneous broadcast that will be available via the investor section of the company’s Web site at www.adcarehealth.com.

A replay of the call will be available after 11:30 a.m. EST on the same day. Investors can either visit the investor section of the company’s website or use the telephone numbers below to listen to the recorded conference call.

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay pin number: 4520448

ADK Announces Upcoming Presentation at the ROTH Capital Partners 24th Annual Conference

AdCare Health Systems, Inc., a nursing home and assisted living company, today told investors that it will be presenting at the ROTH Capital Partners 24th Annual Conference. The conference will be held at The Ritz Carlton in Laguna Niguel, California, on March 12-14, 2012.

AdCare CEO Boyd Gentry and Chief Acquisition Officer Chris Brogdon are scheduled to present on Monday, March 12, 2012 at 12:00 p.m. Pacific time, and will have one-on-one meetings throughout the day. They will talk about the emerging opportunities in the highly fragmented health care segments of senior assisted living and elderly nursing care.

Mr. Gentry and Mr. Brogdon will also discuss the progress of AdCare’s M&A program designed to build upon its strong reputation for operational efficiency and high-quality living environments. With the recent acquisition of a skilled nursing and assisted living community in Ohio, plus 25 additional skilled nursing centers AdCare has signed and expects to acquire in the first half of 2012, the company’s annualized revenue run-rate is expected to exceed $355 million, which would represent an increase of 570% over revenues in 2010.

Investors unable to attend may view a live feed of the presentation via http://wsw.com/webcast/roth26/adk. A replay will also be available following the conference in the investor relations section of AdCare’s Web site at www.adcarehealth.com.

ADK Draws Additional Attention

Recently, Bert Wilkison of Chicago-based Kinetic Investments, a subsidiary of Wilkison Financial LLC, joined those calling AdCare Health Systems an undervalued buy and hold stock, citing the company’s growth strategy. According to Wilkison, the reason the stock is undervalued is due simply to a “lack of understanding and appreciation of its growth plan and strategic acquisition model.” AdCare’s growth strategy, and the success they’ve had implementing it, has begun to put the company on investment community radar screens. After several years of significantly increasing revenues, the numbers are hard to ignore.

AdCare, owner and operator of skilled nursing homes and other living facilities in at least seven different states, has identified a major unmet need in the care facilities industry, showing itself to be remarkably capable at employing a home-grown approach to filling that need. Realizing that the industry is currently fragmented, consisting largely of independent family-owned operations that are oriented toward low-margin long-term care, AdCare has been able to acquire and transform individual facilities, growing both margins and revenues. By shifting operations away from long-term care to more profitable acute care, AdCare increases profit margins. It also incorporates operating efficiencies, further improving the bottom line.

It’s an approach AdCare has been able to apply repeatedly as it builds revenue and moves toward initial profitability. Although growth is expensive, an investment in the future, Wilkison feels that AdCare has the potential to become profitable perhaps within the next year, emphasizing the positive demographics supporting the growth. In 2010, there were an estimated 40 million U.S. citizens over the age of 65, with 17 million over 75, and 6 million over 85. Under the guidance of Chief Acquisitions Officer, Chris Brogdon, AdCare has targeted most of its acquisitions toward the Southeast, where the elderly population has been growing most quickly.

ADK Continues Fast Growth

The recent positive assessment of AdCare Health Systems by Stonegate Securities was based upon the strength of AdCare’s unique approach to a growing but highly fragmented market. AdCare is an Ohio-based healthcare services provider that owns, operates, and manages skilled nursing homes, assisted living facilities, and retirement communities in several states, largely in the southeast. The company has recognized and is aggressively addressing a major need in the living facilities industry, which today consists largely of independent family owned operations. These facilities are generally oriented toward low-margin long-term care, and also have inherent and costly operational inefficiencies.

AdCare’s successful approach has been to identify and acquire such operations, focusing on certain key parameters, such as targeting locations in states with relatively healthy economies. AdCare then applies a customized improvement program, carefully tailored to each facility’s needs, effectively moving it into a higher-margin acute-care Medicare-based model, as well as introducing a variety of more efficient operational standards and procedures.

The result is a gradual but steadily improving financial picture for both the individual facility and for AdCare. The company’s Medicare census has, for example, increased by over 37% at acquired facilities, and AdCare has also been able to offset recent Medicare cuts. AdCare’s seasoned management team has substantial senior living, healthcare, and real estate industry experience, and is itself incentivized to continue to grow the business through their combined ownership of approximately 25.6% of the common AdCare stock.

AdCare’s revenues continue to show steady growth, as they have for the past several years. With the recent acquisition of a number of skilled nursing centers they expect to close in the first quarter of 2012, AdCare expects its annualized revenue run-rate to exceed $355 million, which would represent an increase of 570% over revenues in 2010.

ADK Refined Strategy Driving Rapid Growth

Relatively few of the most successful business are at the place they are because they came up with a totally new concept or industry. In almost every case, a company is successful because it has simply developed a better way of operating, filling an established need more efficiently than anyone else, bringing a new idea to an existing table.

In the case of AdCare Health Systems, a fast growing developer, owner, and operator of skilled nursing and assisted living communities, success has been based on identifying, acquiring, and transforming existing care facilities, pointing them in a more profitable direction, and incorporating more efficient operations. AdCare realized early-on that the healthcare facilities industry was highly fragmented, made up of largely family owned businesses, generally inefficiently run and weighted toward long-term low-margin markets. On the other hand, they realized that there was a growing need for acute-care high-margin facilities, a need that was not being met.

Through a carefully developed and managed strategy, AdCare has been able to steadily locate and aggressively acquire existing care facilities with just the right mix of needs and location. The company then applies a methodic plan, specifically attuned to the unique assets and requirements of each opportunity, to gradually reposition the operations to higher margin markets while streamlining internal procedures. The result has been a financial engine of increasing revenues and geographical expansion.

In their recent presentation at the 22nd Annual Global Healthcare Services Conference in New York, the company indicated that, with the recent acquisition of a skilled nursing and assisted living community in Ohio, plus 24 additional skilled nursing centers they expect to close in the first quarter of 2012, and the Abington Place skilled nursing facility in Q2 2012, the company expects its annualized revenue run-rate to exceed $355 million, which would represent an increase of 570% over revenues in 2010.

ADK Announces Upcoming Presentation at the UBS 22nd Annual Global Healthcare Services Conference

AdCare Health Systems, Inc. today announced it has been invited to present at the UBS 22nd Annual Global Healthcare Services Conference. Held at the Grand Hyatt New York in New York City, the conference will feature presentations and updates from the leading global healthcare services firms that continue to advance the healthcare industry.

AdCare CEO Boyd Gentry, and its chief acquisition officer, Chris Brogdon, will present tomorrow morning at 8:00 a.m. ET. AdCare management plans to discuss the emerging opportunities in the highly fragmented healthcare segments of senior assisted living and elderly nursing care, as well as the exceptional progress of the company’s M&A program. After the presentation, the executives will be engaging in one-on-one meetings throughout the day.

Investors unable to attend can view a replay of the presentation at the investor relations section of AdCare’s website at www.adcarehealth.com

Those who wish to learn more about the conference or desire to schedule a one-on-one meeting with AdCare management should visit the conference website at www.ibb.ubs.com

MissionIR Interviews President and CEO of Adcare Health Systems Inc. (ADK)

MissionIR today announces that its interview with Boyd Gentry, the president and chief executive officer of AdCare Health Systems, is now available online. The complete interview can be heard at http://adk.missionir.com/adk/interview.html.

Mr. Gentry discussed the company’s rapid growth, its aggressive M&A program, and acquisitions that are on the horizon for 2012, which are projected to increase the company’s revenue run rate by more than 500% over 2010. Mr. Gentry additionally provided an overview of the company’s business model and discussed the background of the company’s executive team, including recent additions of new talent. Mr. Gentry emphasized AdCare’s tremendous growth, which is singular among its competitors in these challenging economic times.

“We’re the only long-term care company that is aggressively acquiring these smaller, regionally focused, privately held, nursing home operators,” Mr. Gentry stated. “Typically, these acquisition targets are not focused on the more complex, but more profitable sub-acute segment of the business. AdCare is able to build upon the solid custodial care reputations of these smaller operators by expanding their clinical capabilities and post-acute services. Our revenues grew four-fold in 2010, and then last year we doubled to a run rate of $200 million. We have a number of acquisitions in the pipeline and expect by the end of this year to at least double again.”

ADK Gets Green Light from Stonegate

According to a recent investment analysis report by Stonegate Securities, AdCare, an Ohio-based developer, owner, and operator of skilled nursing and assisted living communities, “holds significant potential for investors”. It bases its conclusion on the following:

• AdCare is executing an aggressive acquisition strategy – The company has begun buying skilled nursing facilities from independent operators, with the acquisition target calling for optimization potential and a reasonable price. According to a recent press release, 54 facilities have been put under contract since the campaign began. AdCare has been careful to avoid states with unhealthy economies, and has focused on the Southeast, Southwest, and Midwest.

• AdCare is improving the metrics associated with the acquired facilities – Once an appropriate property is acquired, AdCare increases the acuity level of the services it offers, increasing the Medicare census and the resulting reimbursement rates. In addition, AdCare identifies and implements various operational efficiencies, improving the bottom line. As a result, the company’s Medicare census has increased by 37.5% at acquired facilities. AdCare has also been able to offset recent cuts in Medicare reimbursements.

• AdCare revenues are increasing at record rates – Third quarter 2011 revenues increased a record 208% over the prior year, to $40.9 million, due to the company’s acquisition strategy and operation optimization results. Given the company’s success to date, and the announced acquisitions yet to close, management guidance points to annual recurring revenue of over $300 million, a 460% increase over 2010 levels. And this doesn’t include acquisitions not yet announced.

• AdCare has unique growth opportunities due to a fragmented but growing industry – The overall value of the long-term care market grew from $186 billion in 2005 to $258 billion in 2010, and is expected to continue to grow at over 6% annually. The skilled nursing care market, AdCare’s acquisition focus, is the biggest market segment. The long-term care market is extremely fragmented, with roughly 80% of nursing homes being privately owned single facilities, providing many acquisition candidates.

The Two Sided Growth Strategy of ADK

It’s AdCare’s spectacular revenue growth over the past few years, roughly doubling every year since 2009, that has caught the eye of investors, with much of the attention going to the company’s increasing number of acquisitions. AdCare, a healthcare services provider that owns and operates a growing number of skilled nursing homes, assisted living facilities, and other care facilities, has a strategy designed to take advantage of a fragmented industry that is weighted toward long-term low margin care. The company has been able to acquire these small privately-owned operations, and transform them to higher-margin short term care facilities for which there is an increasing demand-supply gap. These short-term facilities support patients recovering from strokes or other health crises, and can often tap into Medicare.

The acquisition side of the equation has promoted dramatic revenue growth, but equally important is the second key aspect to AdCare’s strategy. In addition to growing through acquisitions, the company has also been growing Medicare support and reimbursement rates at the acquired facilities by increasing facility acuity level. Emphasizing shorter term higher intensity care improves margins and per-facility revenue. The company also has a track record of improving margins at facilities through instituting a number of other operational efficiencies.

Profitably moving a care facility from a long-term care model to an optimized higher-acuity model is not a simple process. It requires ensuring the ability to adhere to the necessary government requirements, and also requires a strong familiarity with associated reimbursement policies and economic environment within each state. AdCare has gone to great lengths to avoid expanding into states that are experiencing significant economic problems.

The optimization process also takes time. It can take a year to realize the full potential of a given facility, but that also means that AdCare’s current portfolio represents considerable opportunity for financial growth over and above upcoming acquisitions.

ADK closed yesterday's trading at $4.31, up 0.49%, on 43,837 volume with 163 trades, more than double the average daily trading activity.

Earlier this week, AdCare presented at the Noble Financial Capital Markets’ 8th Annual Equity Conference. CEO Boyd Gentry and Chief Acquisition Officer Chris Brogdon discussed emerging opportunities in the highly fragmented healthcare segments of senior assisted living and elderly nursing care, as well as talked about the progress of AdCare’s M&A program designed to build upon the company’s strong reputation for operational efficiency and high-quality living environments.

The company also took the spotlight at Seeking Alpha with two articles published on Tuesday by prominent contributors. The articles can be found at the following link: http://seekingalpha.com/symbol/adk?source=search_general&s=adk

ADK to Present at the Noble 8th Annual Equity Conference at 11:30am ET

Live Webcast Accessible at the Following Link: http://owl.li/8wdob

ADK Invited to Present at the Noble 8th Annual Equity Conference

AdCare Health Systems, Inc., a nursing home and assisted living company providing high-quality care for patients and residents residing in the 44 facilities that it operates, announced it will be presenting at the Noble Financial Capital Markets’ 8th Annual Equity Conference. The conference will be held January 17-18, 2012, at the Hard Rock Hotel & Casino in Hollywood, Florida.

AdCare’s chief executive officer, Boyd Gentry, and chief acquisition officer, Chris Brogdon, are scheduled to present on Tuesday, January 17, 2012, at 11:30 a.m. Eastern time. One-on-one meetings with the management team will be held throughout the day. The presentation will be video webcast live and available for replay via the investor relations section of AdCare’s website at www.adcarehealth.com.

AdCare management will discuss the emerging opportunities in the highly fragmented healthcare segments of senior assisted living and elderly nursing care, as well as talk about the progress of AdCare’s M&A program designed to build upon the company’s strong reputation for operational efficiency and high-quality living environments. Including the M&A transactions AdCare has closed and in the process of closing, the company expects its annualized revenue run-rate to exceed $320 million, which would represent an increase of 500% over last year.

The conference will showcase approximately 140 small-cap and micro-cap companies. The companies selected for this conference are found within these four general sectors: healthcare, technology, software, defense and media/entertainment. In order to arrive at a distinguished roster of companies, Noble Financial’s senior equity research team evaluates close to 1,000 potential presenters.

Noble Financial, a research driven, full-service investment banking boutique, is as discriminating with its invitations to institutional investors as it is with the companies invited to present. Rather than just focusing on crowding the conference floor, Noble Financial carefully invites a smaller audience of investors with a large appetite for the companies presenting; quality always trumps quantity.

ADK Executes Purchase Agreement for Three Skilled Nursing Facilities in Arkansas

AdCare Health Systems, Inc., a leading nursing home and assisted living company, today announced the company has signed a definitive purchase agreement for three skilled nursing facilities in Arkansas for $27.3 million.

According to the press release, the acquisition is expected to be completed within the current quarter. The facilities have an aggregate of 439 beds and generate an estimated $22.2 million in gross annualized revenues. AdCare anticipates financing the acquisition with a traditional bank loan.

“Included in this portfolio is a 157 bed skilled nursing facility located in close proximity to a major Little Rock acute-care hospital,” stated Boyd Gentry, AdCare’s president and chief executive officer. “This facility has recently been completely renovated, which allows us to reposition it as a major provider of sub-acute services. We expect this strategy to generate a significant increase in revenues as we improve this facility’s occupancy with higher acuity patients. The other two facilities are ideally configured with a significant number of private rooms.”

Chris Brogdon, AdCare’s vice chairman and chief acquisitions officer, commented, “This signing brings the total number of facilities we’ve put under contract to 54 since we began our current M&A program. With our M&A program and the integration of new facilities remaining our major focus in 2012, we continue to evaluate a number of opportunities that fit our acquisition strategy.”

Combining the company’s current annualized run-rate with transactions in the process of closing, the company’s estimated annualized revenue run-rate is projected to exceed $322 million. This would represent an increase of more than 500% over the company’s revenues last year, and an increase of more than 12 times revenues since AdCare initiated its M&A campaign in the fall of 2009.

Gentry added, “We have been targeting facilities in the Midwest and Southern states that have not traditionally concentrated on providing post-acute services. Then, once acquired, we have worked to increase Medicare census and occupancy, as well as optimize reimbursement and patient care. This strategy continues to yield results, as our team has been successful at increasing both higher acuity patients and associated reimbursement rates in excess of 25% versus pre-acquisition levels.”

AdCare expects to complete the acquisition of at least 23 additional facilities in the next three months: the three announced today, five facilities in Oklahoma and the company’s largest transaction to-date of 15 facilities across the Southeast.

Stonegate Securities 20-page ADK Company Report

http://adk.missionir.com/Stonegate_Report_12-15.pdf

ADK Announces Acquisition of Skilled Nursing and Assisted Living Center for $12.5 Million

AdCare Health Systems, Inc., a rapidly growing nursing home and assisted living company, announced the completion of the previously announced agreement to purchase a skilled nursing and assisted living community in Ohio. The final purchase price totaled $12.5 million, $1.0 million less than the initial purchase agreement.

The community has 179 beds in service and generates approximately $12 million in gross annualized revenues according to its most recent financials. The addition of this skilled nursing and assisted living center is expected to be immediately accretive to AdCare’s earnings.

This transaction brings the total number of facilities AdCare’s purchased, leased, or managed to 44 facilities since its M&A campaign began in the fall of 2009, with more than 3,900 beds in service.

The company told investors that it intends to continue pursuing an aggressive M&A program. Combining its current annualized run-rate with transactions in the process of closing, AdCare’s estimated annualized revenue run-rate is expected to exceed $300 million. This would represent an increase of more than 460% over the company’s revenues in 2010, and an increase of more than 11 times revenues since initiating its M&A campaign in the fall of 2009.

“After expanding our operations to Alabama, Arkansas, Georgia, North Carolina and Oklahoma, with this acquisition we’ve built upon our home base in Ohio,” stated Chris Brogdon, AdCare’s vice chairman and chief acquisitions officer. “These new facilities will leverage the professional support staff we’ve long maintained in the state, as well as enhance our overall economies of scale.”

“We’re continuing to evaluate a number of attractive opportunities in the Midwest, as well as in the Southwest and Southeast with our M&A program and the integration of new facilities remaining our primary focus going forward,” continued Brogdon.

Boyd P. Gentry, AdCare’s president and chief executive officer, stated, “Our strategy of acquiring skilled nursing facilities is proving highly successful, not only in our closing rate and terms, but especially in our post-acquisition performance. We have been targeting facilities that have not traditionally concentrated on providing post-acute services, and then once acquired, we increase Medicare census and occupancy, as well as optimize reimbursement and patient care.”

“Historically, it takes our operations team a year to 15 months to fully harvest this opportunity in an individual facility,” added Boyd. “This means we still have optimization opportunities in our current portfolio, and significant upside exists in our pending acquisition pipeline.”

AdCare finished last year with 29 new facilities placed under contract, and the acquisition of 18 facilities completed. The company expects to complete the acquisition of at least 20 more in the next three months, including five facilities in Oklahoma and the company’s largest transaction to-date of 15 facilities across the Southeast.

SeekingAlpha: Tracking the Illusive Gold Nugget Stock: AdCare Health Systems
http://seekingalpha.com/article/316293

One of the classic gold nuggets for an investor is the micro-cap or small-cap company that is just starting to show up on radar screens, but with a strong history of growing revenue, and earnings that appear ready to break into positive territory. It’s a rare combination of qualities, offering investors one of the greatest potentials for substantial, short term profit. Once positive earnings are achieved, the effect on share price can be explosive.

There is a unique window of opportunity, and it doesn’t last long. As a company grows, drawing the attention of an increasing number of analysts, it becomes more a game of beating expectations. Eventually it’s no longer enough for the company to announce strong quarterly revenue and earnings numbers, the numbers have to beat analyst estimates. Also, when enough eyes are on the company, expectations can be built into the share price, allowing for a nasty tumble or major boost when earnings are announced. Everyone, including company executives, knows this, and companies do whatever they can to ensure that quarterly reports meet or beat expectations, out of concern that sudden well-publicized share price drops can send skittish investors away for good.

But, until that happens, while a company is still in that magic pre-blossom stage, an alert investor can line themselves up for a staggering short term gain. Even more desirable, of course, is when such a company is also positioned for continued long term growth, based upon efficient leveraging of an expanding market. Not every management team is smart enough to deal with the often hidden opportunities and challenges of market expansion. Companies can easily overextend themselves late in the cycle, generating an unsustainable financial burden just when the market turns south. If, however, management is able to stay ahead of the curve, taking advantage of low cost acquisitions before the boom, and understands how to grow and operate on increasing scales in advance of growing demand, the future holds few limits.

Take a look at AdCare Health Systems (AMEX: ADK), an Ohio-based manager of senior living facilities. AdCare currently operates over 42 facilities in Ohio, Georgia, Alabama, Arkansas, and North Carolina, with new acquisitions continually being targeted. Facilities include independent living campuses, assisted living facilities, nursing homes, and dementia care facilities. The company also provides comprehensive home health care services. Facilities are either owned by AdCare, leased from third parties, or are managed for third parties.

AdCare revenue has grown steadily, more than doubling from 2006 to 2010, and, although fiscal 2011 is not yet completed, AdCare now appears to be on track for the biggest year-to-year revenue jump in the company’s history. Much of this is due to AdCare’s aggressive acquisition strategy, allowing them to spread their efficient operational model, and positioning them to serve one of the biggest demographic waves in American history, the aging boomer population. In addition, net income is now making its first intermittent forays into positive territory.

Besides being that rare beast, the emerging company that can offer a history of rising revenue along with on-the-cusp earnings, AdCare has set sail on a rising sea of industry growth. With improved healthcare virtually ensuring that many boomers will live well into their 80s and 90s, the demand for various forms of assisted living facilities and services is expected to explode to levels never before seen, providing a continually growing long term market.

But it’s important to remember that companies like AdCare represent an unusual combination of financials and market potential. It’s tempting to grab at developing companies that have a year or two of impressive revenues, or that seem to be oriented toward future markets, but very few companies exhibit five or more years of steadily rising revenues, together with earnings ready to break to the positive, together with a firm foundation in what can only be described as a tidal wave market that will stretch on for decades.