Niwot, Colorado., Dec. 31, 2020 (GLOBE NEWSWIRE) -- Global Healthcare REIT, Inc. (Currently in a rebranding effort to Selectis Health, Inc.) GBCS ("Selectis" or the "Company") is pleased to announce financial results for the third quarter ended September 30, 2020.
THIRD QUARTER 2020 HIGHLIGHTS
- Record revenue for the third quarter of $6,320,161 (2019 $1,989,103) a growth rate of 218% year-over -year and up 23% from the previous quarter;
- Net Income of $459,177 for the second quarter (2019 $176,582) a growth rate of 160% year-over -year;
- Earnings Per Share for the second quarter of $.02 per share basic and diluted;
- Net increase in Cash of $1,486,290 to a cash balance of $4,755,441 including restricted cash for the third quarter;
- Court approved operations transfer agreement to the Company's wholly owned subsidiary Global Eastman, LLC as the operator of the Dodge Eastman facility;
- Entered into definitive agreement to acquire the 29 licensed bed skilled nursing facility in Fairlands, Oklahoma;
- Company received a line of credit of $500,000 and a construction loan of $750,000 to be used for renovation and capital investment in its Edwards facility from Southern Bank. Both loans carry an interest rate of 4.75% on principal balance;
- On August 18, 2020, the Company's Board of Directors approved the repurchase for redemption of 443,431 shares of common stock for $75,385 or $0.17 per share in a privately negotiated transaction. The redemption has been completed and the shares of common stock cancelled.
Lance Baller, President and CEO, said, "During the third quarter, we were able to complete a number of actions all to the benefit of the Company: we completed the operations transfer of our Eastman facility out of receivership; this is a strong property that will become a great facility for the community, and for our bottom line. The previous operator had not been paying taxes nor rent, and we were able to secure the facility and its operations at a significant discount. The Company was please it was able to negotiate in a private transaction the repurchase of shares during the quarter and at a respectable price. After being 9 months behind on financials, we are currently up to date on all SEC filings of our quarterly reports. We look forward to the completion of the corporate rebranding effort and filing our annual report. We will continue to build out the management team in the coming months to ensure our managed growth. Unfortunately, similar to others in our industry, Covid-19 was a factor during the quarter, specifically at our Tulsa facilities which resulted in a lower than anticipated impact to our census and bottom line. We had a higher-than-normal amount of write offs of bad receivables from the transfer of operations in 2019. On the whole, we are very pleased with the new direction the company is moving towards, and I look forward to 2021 and the improvements we are beginning to deploy."
SUMMARY OF THIRD QUARTER RESULTS
GLOBAL HEALTHCARE REIT, INC.
CONSOLIDATED BALANCE SHEETS
| September 30, 2020 | December 31, 2019 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Property and Equipment, Net | $ | 37,617,777 | $ | 36,394,587 | ||||
| Cash and Cash Equivalents | 4,316,683 | 641,215 | ||||||
| Restricted Cash | 438,758 | 351,298 | ||||||
| Accounts Receivable, Net | 1,903,579 | 1,188,100 | ||||||
| Investments in Debt Securities | 24,387 | 24,387 | ||||||
| Intangible Assets | - | 15,258 | ||||||
| Goodwill | 1,076,908 | 379,479 | ||||||
| Prepaid Expenses and Other | 682,200 | 883,839 | ||||||
| Total Assets | $ | 46,060,292 | $ | 39,878,163 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Liabilities | ||||||||
| Debt, Net of discount of $428,835 and $493,353, respectively | $ | 39,334,439 | $ | 36,954,184 | ||||
| Debt – Related Parties, Net of discount of $4,213 and $0, respectively | 1,120,787 | 1,025,000 | ||||||
| Accounts Payable and Accrued Liabilities | 3,403,398 | 1,241,573 | ||||||
| Accounts Payable – Related Parties | 9,900 | 32,156 | ||||||
| Dividends Payable | 7,500 | 7,500 | ||||||
| Lease Security Deposit | 250,000 | 251,100 | ||||||
| Total Liabilities | 44,126,024 | 39,511,513 | ||||||
| Commitments and Contingencies | ||||||||
| Equity | ||||||||
| Stockholders' 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, 26,971,094 and 27,441,040 Shares Issued and Outstanding at September 30, 2020 and December 31, 2019, respectively | 1,348,554 | 1,372,052 | ||||||
| Additional Paid-In Capital | 10,344,542 | 10,385,417 | ||||||
| Accumulated Deficit | (10,333,388 | ) | (11,962,220 | ) | ||||
| Total Global Healthcare REIT, Inc. Stockholders' Equity | 2,135,708 | 571,249 | ||||||
| Noncontrolling Interests | (201,440 | ) | (204,599 | ) | ||||
| Total Equity | 1,934,268 | 366,650 | ||||||
| Total Liabilities and Equity | $ | 46,060,292 | $ | 39,878,163 | ||||
See accompanying notes to unaudited consolidated financial statements.
| 3 |
GLOBAL HEALTHCARE REIT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Nine Months Ended | Three Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue | ||||||||||||||||
| Rental Revenue | $ | 1,628,904 | $ | 2,789,220 | $ | 484,299 | $ | 963,645 | ||||||||
| Healthcare Revenue | 13,673,323 | 2,089,386 | 5,835,862 | 1,025,458 | ||||||||||||
| Total Revenue | 15,302,227 | 4,878,606 | 6,320,161 | 1,989,103 | ||||||||||||
| Expenses | ||||||||||||||||
| General and Administrative | 1,723,153 | 891,031 | 1,007,383 | 320,195 | ||||||||||||
| Property Taxes, Insurance and Other Operating | 8,757,802 | 1,596,835 | 3,771,827 | 703,816 | ||||||||||||
| Provision for (Recovery of) Debts | 229,799 | - | (34,091 | ) | - | |||||||||||
| Acquisition Costs | 209,946 | 6,771 | 181,292 | 6,771 | ||||||||||||
| Depreciation and Amortization | 1,174,899 | 969,834 | 406,796 | 323,983 | ||||||||||||
| Total Expenses | 12,095,599 | 3,464,471 | 5,333,207 | 1,354,765 | ||||||||||||
| Income from Operations | 3,206,628 | 1,414,135 | 986,954 | 634,338 | ||||||||||||
| Other (Income) Expense | ||||||||||||||||
| Gain on Warrant Liability | - | (2,785 | ) | - | (27 | ) | ||||||||||
| Gain on Extinguishment of Debt | (80,400 | ) | - | - | - | |||||||||||
| Gain on Sale of Investments | - | (1,069 | ) | - | - | |||||||||||
| Gain on Proceeds from Insurance Claim | - | (324,018 | ) | - | (53,754 | ) | ||||||||||
| Interest Income | (465 | ) | (26,248 | ) | (465 | ) | (19,245 | ) | ||||||||
| Interest Expense | 1,633,002 | 1,595,363 | 516,431 | 524,503 | ||||||||||||
| Total Other (Income) Expense | 1,552,137 | 1,241,243 | 515,966 | 451,477 | ||||||||||||
| Net Income | 1,654,491 | 172,892 | 470,988 | 182,861 | ||||||||||||
| Net (Income) Loss Attributable to Noncontrolling Interests | (3,159 | ) | 7,231 | (4,311 | ) | 1,221 | ||||||||||
| Net Income Attributable to Global Healthcare REIT, Inc. | 1,651,332 | 180,123 | 466,677 | 184,082 | ||||||||||||
| Series D Preferred Dividends | (22,500 | ) | (22,500 | ) | (7,500 | ) | (7,500 | ) | ||||||||
| Net Income Attributable to Common Stockholders | $ | 1,628,832 | $ | 157,623 | $ | 459,177 | $ | 176,582 | ||||||||
| Per Share Data: | ||||||||||||||||
| Net Income per Share Attributable to Common Stockholders: | ||||||||||||||||
| Basic | $ | 0.06 | $ | 0.01 | $ | 0.02 | $ | 0.01 | ||||||||
| Diluted | $ | 0.06 | $ | 0.01 | $ | 0.02 | $ | 0.01 | ||||||||
| Weighted Average Common Shares Outstanding: | ||||||||||||||||
| Basic | 27,352,220 | 27,228,919 | 27,202,449 | 27,438,076 | ||||||||||||
| Diluted | 27,726,628 | 27,228,919 | 27,202,449 | 27,438,076 | ||||||||||||
For Further Information Contact:
Brandon Thall
investors@selectis.com
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