Assisted Living Concepts (ALC) Misses Q3 EPS by 7c; to Review Strategic Alternatives
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Price: $11.84 -0.17%
Financial Fact:
Depreciation and amortization: 7.49M
Today's EPS Names:
LBIX, ESEA, ISS, More
Financial Fact:
Depreciation and amortization: 7.49M
Today's EPS Names:
LBIX, ESEA, ISS, More
Trade ALC Now!
Assisted Living Concepts (NYSE: ALC) reported Q3 EPS of ($0.04), $0.07 worse than the analyst estimate of $0.03. Revenue for the quarter came in at $55.6 million versus the consensus estimate of $56.1 million.
The Company announced today that as part of an operational review of certain of its residences and taking into account the recommendation of its Facility Review Committee, it will be commencing a process to divest its seven owned residences in New Jersey. If the New Jersey residences are divested, it is intended that the proceeds will be used primarily to pay down debt. The Board of Directors expects the process to be completed in the first quarter of 2013. The Board of Directors anticipates such a transaction will be accretive to earnings. In the first three quarters of 2012, the owned New Jersey residences had revenues of $2.7 million and a pre-tax loss of $1.1 million. Although the Company has received expressions of interest in respect of the New Jersey residences and will be conducting a divesture process, no assurance can be given that such a divestiture will be completed, the timing or the amount of proceeds from the divestiture of such residences. In addition, the Board is considering divestiture of certain closed and other underperforming residences.
The Company also announced today that a Special Committee of the Board would continue its strategic review process to explore corporate alternatives with a view to enhancing shareholder value. No assurance can be given that the process will result in a transaction or, if a transaction is undertaken, the timing or the terms of any such transaction.
For earnings history and earnings-related data on Assisted Living Concepts (ALC) click here.
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The Company announced today that as part of an operational review of certain of its residences and taking into account the recommendation of its Facility Review Committee, it will be commencing a process to divest its seven owned residences in New Jersey. If the New Jersey residences are divested, it is intended that the proceeds will be used primarily to pay down debt. The Board of Directors expects the process to be completed in the first quarter of 2013. The Board of Directors anticipates such a transaction will be accretive to earnings. In the first three quarters of 2012, the owned New Jersey residences had revenues of $2.7 million and a pre-tax loss of $1.1 million. Although the Company has received expressions of interest in respect of the New Jersey residences and will be conducting a divesture process, no assurance can be given that such a divestiture will be completed, the timing or the amount of proceeds from the divestiture of such residences. In addition, the Board is considering divestiture of certain closed and other underperforming residences.
The Company also announced today that a Special Committee of the Board would continue its strategic review process to explore corporate alternatives with a view to enhancing shareholder value. No assurance can be given that the process will result in a transaction or, if a transaction is undertaken, the timing or the terms of any such transaction.
For earnings history and earnings-related data on Assisted Living Concepts (ALC) click here.
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