ASSISTED LIVING CONCEPTS INC

CIK:0000929994|SEC Filings

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2013

6. EARNINGS PER SHARE

ALC computes earnings per share under two different methods, basic and diluted, and presents per share data for all periods in which statements of operations are presented. Basic earnings per share are computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per share are computed by dividing net income by the weighted average number of common stock and common stock equivalents outstanding. Common stock equivalents consist of incremental shares available upon conversion of Class B common shares which are convertible into Class A common shares at a rate of 1.075 Class A common shares per Class B common share.

The following table provides a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share for the three month periods ended March 31, 2013 and 2012.

	2013			2012
	(In thousands, except per share data)
Basic earnings per share calculation :
Net (loss)/income to common stockholders	$	(8,212	)	$	5,649

Weighted average number of common shares outstanding		22,971			22,969

Basic net (loss)/income per share	$	(0.36	)	$	0.25

Diluted earnings per share calculation :
Net (loss)/income to common stockholders	$	(8,212	)	$	5,649

Weighted average number of common shares outstanding		22,971			22,969
Assumed conversion of Class B shares		—			219
Effect of dilutive stock options		—			70
Diluted weighted average number of common shares outstanding		22,971			23,258

Diluted net (loss)/income per share	$	(0.36	)	$	0.24

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
OPERATING ACTIVITIES:
Net (loss)/income	$ (8,212)	$ 5,649
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Depreciation and amortization	7,485	5,769
Deferred financing write-off and amortization	645	98
Amortization of purchase accounting adjustments for leases	(103)	(103)
Provision for bad debts	555	622
Provision for self-insured liabilities	255	255
(Gain)/loss on sale/disposal of fixed assets	(1,768)	28
Unrealized gain on investments	(11)	(36)
Equity-based compensation expense	238	352
Deferred income taxes	(188)	45
Changes in assets and liabilities:
Accounts receivable	(992)	(336)
Supplies, prepaid expenses and other receivables	(2,128)	(1,366)
Deposits in escrow	330	268
Accounts payable	(1,637)	(697)
Accrued liabilities	4,026	(1,380)
Deferred revenue	(2,923)	(312)
Payments of self-insured liabilities	(552)	(113)
Income taxes payable / receivable	(3,234)	3,106
Changes in other non-current assets	1,454	4
Other long-term liabilities	280	(17)
Cash (used in)/provided by operating activities	(6,480)	11,836
INVESTING ACTIVITIES:
Payment for securities	(53)	(55)
Proceeds on sales of fixed assets	3,114	175
Payments for new construction projects	0	(385)
Payments for purchases of property and equipment	(2,136)	(4,512)
Cash provided by/(used in) investing activities	925	(4,777)
FINANCING ACTIVITIES:
Payments of financing costs	(280)	0
Repayment of borrowings on revolving credit facility	0	(21,100)
Proceeds on borrowings from revolving credit facility	5,000	17,000
Repayment of mortgage debt	(2,506)	(635)
Payment of Dividends	0	(2,297)
Cash provided by/(used in) financing activities	2,214	(7,032)
(Decrease)/increase in cash and cash equivalents	(3,341)	27
Cash and cash equivalents, beginning of year	10,182	2,652
Cash and cash equivalents, end of period	6,841	2,679
Cash paid during the period for:
Interest	3,886	1,555
Income tax payments, net of refunds	$ 29	$ 3,108

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Current Assets:
Cash and cash equivalents	$ 6,841	$ 10,182
Cash and escrow deposits - restricted	2,384	2,714
Investments	962	900
Accounts receivable, less allowances of $4,016 and $3,461 respectively	4,731	4,294
Prepaid expenses, supplies and other receivables	6,339	4,604
Income tax receivable	7,323	4,089
Deferred income taxes	4,661	4,640
Total current assets	33,241	31,423
Property and equipment, net	474,975	481,913
Restricted cash	581	2,035
Other assets	426	398
Total Assets	509,223	515,769
Current Liabilities:
Accounts payable	8,029	9,909
Accrued liabilities	25,060	21,034
Deferred revenue	5,343	8,266
Current maturities of long-term debt	143,300	114,575
Current portion of self-insured liabilities	500	500
Total current liabilities	182,232	154,284
Accrual for self-insured liabilities	1,770	1,700
Long-term debt	40,922	67,140
Deferred income taxes	8,534	8,701
Other long-term liabilities	6,098	6,301
Commitments and contingencies
Total Liabilities	239,556	238,126
Preferred Stock, par value $0.01 per share, 25,000,000 shares authorized; no shares issued and outstanding	0	0
Additional paid-in capital	317,711	317,473
Accumulated other comprehensive income	17	19
Retained earnings	28,505	36,717
Treasury stock at cost, 4,931,872 and 4,931,872 shares, respectively	(76,845)	(76,845)
Total Stockholders' Equity	269,667	277,643
Total Liabilities and Stockholders' Equity	509,223	515,769
Class A Common Stock [Member]
Current Liabilities:
Common Stock	250	250
Class B Common Stock [Member]
Current Liabilities:
Common Stock	$ 29	$ 29