Greenwood Village, Colorado, May 20, 2021 (GLOBE NEWSWIRE) -- Global Healthcare REIT, Inc. (Currently in a rebranding effort to Selectis Health, Inc.) ( GBCS) ("Selectis" or the "Company") today reported net income for the first quarter of 2021 of $240,566, or $0.01 per diluted share. Total revenue increased 149.6% to $5.76 million for the first quarter of 2021 compared to $3.85 million for the same period of 2020.
FIRST QUARTER HIGHLIGHTS
- Record revenue of $5,762,843 in 1Q21 versus revenue of $3,851,601 in 1Q20, a growth rate of 149.6% year-over-year;
- Net Income (loss) of $240,566 in 1Q21 versus net income of $53,600 in 1Q20, a growth rate of 448.8% year-over-year;
- Earnings (loss) per Share of $0.01 per share in 1Q21 versus net income of $0.00 per share in 1Q20, a growth rate of 100% year-over-year;
- Reopening of our Oklahoma City facility;
- Implemented rebranding to Selectis Health;
- Addition of new President and COO, Randy Barker;
- Implementation of new expense platform.
“During the first quarter of 2021 we successfully reopened our Oklahoma City facility. The Company spent almost $1M updating and renovating this facility. We hired an exemplary director and have begun to build out the remaining infrastructure to ensure this property will not only add value to our portfolio of healthcare facilities, but it will help in the revitalization of this corner of Oklahoma City, providing exceptional service to our residents and patients. We opened our doors on March 26 and are very pleased to announce we have several residents already and will begin our Centers for Medicare and Medicaid Services (“CMS”) certification process in order to begin billing,” said Lance Baller, CEO of Selectis Health. “We now operate seven of our properties and will continue to see growth come from within our current portfolio as we optimize our operations at these facilities. The Leadership team is still committed to finding future healthcare facilities that will enhance our portfolio and drive increased shareholder value and quality healthcare. As a result of the increased number of COVID-19 exposures in our facilities our first quarter earnings were slightly positive. We have observed that it takes three to six months per facility to recover from a COVID exposure in our rural settings. Additionally, our Tulsa facility is dealing with damage sustained during the extreme cold weather and the census is at a reduced level until the repairs are completed within the next sixty days. We continue to remain vigilant with our COVID protocols in our facilities and will continue to adhere to state and local guideless to protect and safeguard our residents and their families, especially as we begin to welcome their loved ones back to visit in our centers due to increasing availability of vaccines. We expect to have a COVID tailwind over the coming weeks and months and look forward to sharing the news of our success with all of our stakeholders.”
Total Revenue
For the three months ended March 31, 2021, total revenue increased 149.6% to $5.76 million, compared to $3.85 million for the comparable period in 2020. The higher total revenue reflects our focus on our transition of our business model.
Net Income
For the three months ended March 31, 2021, net income was $240,556, or $0.01 per diluted share, compared to net income of $54,101, or $0.00 per diluted share, for the comparable period of 2020.
For the three months ended March 31, 2021, the Company’s normalized after-tax margin was 4.17%.
General and Administrative Expense Ratio
For the three months ended March 31, 2021, the G&A ratio was 36.4% compared to 8.9% in 2020. This change reflects increased cost of operating healthcare facilities, rather than simply renting to tenants.
Balance Sheet
Cash and investments at the company amounted to $3.81 million as of March 31, 2021, compared to $4.00 million as of December 31, 2020.
Cash Flow
Operating cash flow used for the three months ended March 31, 2021, amounted to ($664,847), compared to $252,424 for the comparable period of 2020, a decrease of 263%. This is primarily due to reopening of the Oklahoma City facility, and extra cost incurred, as well as lower revenues and increased costs due to COVID-19 including one time payments incurred in the period.
Conference Call
Management will host a conference call to discuss Selectis Health’s first quarter results at 11:00 a.m. Eastern Time on Thursday, May 20, 2021. The number to call for the interactive teleconference is (877) 407-0789 and the confirmation number is 13720076. A telephonic replay of the call will be available after 2:00 p.m. Eastern Daylight Time on the same day through Friday, May 28, 2021, by dialing (844) 512-2921 and entering the confirmation number 13720076.
SUMMARY OF FIRST QUARTER RESULTS
GLOBAL HEALTHCARE REIT, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| March 31, 2021 | December 31, 2020 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and Cash Equivalents | $ | 3,378,862 | $ | 3,567,437 | ||||
| Restricted Cash | 410,866 | 410,866 | ||||||
| Accounts Receivable, Net | 2,272,978 | 1,931,569 | ||||||
| Prepaid Expenses and Other | 741,692 | 682,949 | ||||||
| Investments in Debt Securities | 24,387 | 24,387 | ||||||
| Total Current Assets | 6,828,785 | 6,617,208 | ||||||
| Long Term Assets | ||||||||
| Property and Equipment, Net | 38,015,253 | 38,238,367 | ||||||
| Goodwill | 1,076,908 | 1,076,908 | ||||||
| Total Assets | $ | 45,920,946 | $ | 45,932,483 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts Payable and Accrued Liabilities | $ | 3,282,997 | $ | 3,196,178 | ||||
| Accounts Payable – Related Parties | 72,800 | 9,900 | ||||||
| Dividends Payable | 7,500 | 7,500 | ||||||
| Current Maturities of Long Term Debt, Net of Discount of $751 and $1,714, respectively | 12,502,972 | 19,299,156 | ||||||
| Debt – Related Parties, Net of discount of $3,234 and $3,234, respectively | 1,121,766 | 1,121,766 | ||||||
| Total Current Liabilities | 16,988,035 | 23,634,500 | ||||||
| Debt, Net of discount of $416,865 and $450,879, respectively | 25,215,666 | 18,830,444 | ||||||
| Lease Security Deposit | 250,100 | 251,600 | ||||||
| Total Liabilities | 42,453,801 | 42,716,544 | ||||||
| Commitments and Contingencies | ||||||||
| Equity | ||||||||
| Preferred Stock: | ||||||||
| Series A - No Dividends, $2.00 Stated Value, Non-Voting; 2,000,000 Shares Authorized, 200,500 Shares Issued and Outstanding | 401,000 | 401,000 | ||||||
| Series D - 8% Cumulative, Convertible, $1.00 Stated Value, Non-Voting; 1,000,000 Shares Authorized, 375,000 Shares Issued and Outstanding | 375,000 | 375,000 | ||||||
| Common Stock - $0.05 Par Value; 50,000,000 Shares Authorized, 26,866,379 and 26,866,379 Shares Issued and Outstanding at March 31, 2021 and December 31, 2020, respectively | 1,343,319 | 1,343,319 | ||||||
| Additional Paid-In Capital | 10,331,065 | 10,331,065 | ||||||
| Accumulated Deficit | (8,795,844 | ) | (9,036,400 | ) | ||||
| Total Global Healthcare REIT, Inc. Stockholders’ Equity | 3,654,540 | 3,413,984 | ||||||
| Noncontrolling Interests | (187,395 | ) | (198,045 | ) | ||||
| Total Equity | 3,467,145 | 3,215,939 | ||||||
| Total Liabilities and Equity | $ | 45,920,946 | $ | 45,932,483 | ||||
GLOBAL HEALTHCARE REIT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2021 | 2020 | |||||||
| Revenue | ||||||||
| Rental Revenue | $ | 390,386 | $ | 521,012 | ||||
| Healthcare Revenue | 5,372,457 | 3,330,589 | ||||||
| Total Revenue | 5,762,843 | 3,851,601 | ||||||
| Expenses | ||||||||
| Property Taxes, Insurance and Other Operating | 3,544,730 | 2,331,744 | ||||||
| General and Administrative | 2,098,327 | 343,063 | ||||||
| Provision for Bad Debts | 24,134 | 206,608 | ||||||
| Acquisition Costs | - | 14,891 | ||||||
| Depreciation and Amortization | 401,023 | 387,218 | ||||||
| Total Expenses | 6,068,214 | 3,283,524 | ||||||
| Income from Operations | (305,371 | ) | 568,077 | |||||
| Other Income | ||||||||
| Interest Expense | 543,543 | 505,270 | ||||||
| Gain on Forgiveness of PPP Loan | (675,598 | ) | - | |||||
| Other Income | (432,022 | ) | - | |||||
| Total Other (Income) Expense | (564,077 | ) | 505,270 | |||||
| Net Income | 258,706 | 62,807 | ||||||
| Net (Income) Loss Attributable to Noncontrolling Interests | (10,650 | ) | (1,707 | ) | ||||
| Net Income Attributable to Global Healthcare REIT, Inc. | 248,056 | 61,100 | ||||||
| Series D Preferred Dividends | (7,500 | ) | (7,500 | ) | ||||
| Net Income Attributable to Common Stockholders | $ | 240,556 | $ | 53,600 | ||||
| Per Share Data: | ||||||||
| Net Income per Share Attributable to Common Stockholders: | ||||||||
| Basic | $ | 0.01 | $ | 0.00 | ||||
| Diluted | $ | 0.01 | $ | 0.00 | ||||
| Weighted Average Common Shares Outstanding: | ||||||||
| Basic | 26,866,379 | 27,441,040 | ||||||
| Diluted | 27,605,688 | 27,441,040 | ||||||
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This earnings release and the Company’s accompanying oral remarks contain forward-looking statements regarding its 2021 guidance, as well as its plans, expectations, and the Company’s expectations regarding future developments. Actual results could differ materially due to numerous known and unknown risks as well as uncertainties. These risks and uncertainties are discussed under the headings “Forward-Looking Statements,” and “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
These reports can be accessed under the investor relations tab of the Company’s website or on the SEC’s website at sec.gov. Given these risks and uncertainties, the Company can give no assurances that its forward-looking statements will prove to be accurate, or that any other results or developments projected or contemplated by its forward-looking statements will in fact occur, and the Company cautions investors not to place undue reliance on these statements. All forward-looking statements in this release represent the Company’s judgment as of the date of this release, except as otherwise required by law, the Company disclaims any obligation to update any forward-looking statement to conform the statement to actual results or changes in its expectations.
For Further Information Contact:
Brandon Thall
[email protected]
