Selectis Health Reports Fourth Quarter and Year-End 2020 Financial Results

March 31, 2021 5:10 PM EDT

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Greenwood Village, Colorado, March 31, 2021 (GLOBE NEWSWIRE) -- March 31, 2021 – Global Healthcare REIT, Inc. (Currently in a rebranding effort to Selectis Health, Inc.) (OTC: GBCS) ("Selectis" or the "Company") today reported net income for the fourth quarter of 2020 of $1.3 million, or $0.05 per diluted share, and $2.93 million, or $.11 per diluted share, for the full year 2020. Total revenue increased 202% to $20.93 million for the full year 2020 compared to $6.93 million for 2019.

FOURTH QUARTER HIGHLIGHTS

  • Record revenue of $5,626,471 in Q420 versus revenue of $2,051,382 in Q419, a growth rate of 174% year-over-year;
  • Net Income of $1,296,988 in Q420 versus net income (loss) of ($1,049,237) in Q419, a growth rate of 224% year-over-year;
  • Earnings per Share of $.05 per share in Q420 versus net income (loss) of ($.04) per share in Q419, a growth rate of 225% year-over-year;
  • Company’s Board of Directors approved the repurchase for redemption of 104,715 shares of common stock for $26,178 or $0.25 per share in a privately negotiated transaction. The redemption has been completed and the shares of common stock cancelled;
  • Implemented rebranding to Selectis Health;
  • Addition of new CFO, Brandon Thall;
  • Completion of the 29 Bed Acquisition of Fairland Family Care.

YEAR-END 2020 HIGHLIGHTS

  • Record revenue for the Year-End 2020 of $20,928,698 versus revenues of $6,929,988 in 2019, a growth rate of 202% year-over-year;
  • Net Income of $2,925,820 for the Year-End 2020 versus net income (Loss) of ($891,614) in 2019, a growth rate of 428% year-over-year;
  • Earnings Per Share for the Year-End 2020 of $0.11 per share basic and diluted versus (Loss) of ($0.03) in 2019, a growth rate of 467%.
  • Net increase in cash of $2,985,790 to a cash balance of $3,978,303 including restricted cash for the fourth quarter, a 301% percent increase from Year-End 2019 of $992,513;
  • Court approved operations transfer agreement to the Company’s wholly owned subsidiary Global Eastman, LLC as the operator of the Dodge Eastman facility;
  • 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 Park Place facility from Southern Bank, both loans carry an interest rate of 4.75% on the principal balance;
  • Company’s Board of Directors approved the repurchase for redemption of 548,146 total shares of common stock for $101,563 or at an average cost of $0.185 per share in privately negotiated transactions. The redemptions have been completed and the shares of common stock cancelled;
  • Purchased $402,000 of 13% mezzanine debt notes owed by Goodwill Hunting, LLC;
  • Purchase of 86 bed Quapaw Higher Call acquisition.

“The Covid-19 pandemic presented historic headwinds to the healthcare industry and the Company in 2020. During the year, we implemented innumerable special protocols at our facilities to ensure our residents continued to have access to a higher quality of care. Despite significant challenges, I am proud to announce that we also delivered excellent financial results highlighted by record revenue and net income in both the fourth quarter and fiscal 2020 for our stakeholders,” said Lance Baller, CEO of Selectis Health. “For the majority of 2020, we were able to avoid much of the Covid-19 exposure that many of our competitors experienced. However, in early December, we did see an significant increase in cases in all our facilities. While conditions have improved, we anticipate a relatively flat first quarter of 2021. The successful rollout of the Covid-19 vaccines is helping to provide a well-deserved tailwind to our business, and the healthcare industry in general. We are determined to remain vigilant in our efforts to deliver safe, effective care to our residents. Additionally, as we continue to transition our business model and increase our footprint of healthcare facilities, we expect to deliver stronger financial performance across our entire portfolio in the coming year. We are pleased with the foundation of improved financial metrics and patient care that we laid for the Company in 2020. We expect to build on these successes in 2021.”

Total Revenue

For the year ended December 31, 2020, total revenue increased 202% to $20.93 million, compared to $6.93 million for the comparable period in 2019. The higher total revenue reflects our focus on our transition to our healthcare business model.

Net Income

For the year ended December 31, 2020, net income was $2.93 million, or $0.11 per diluted share, compared to a net loss of $(892 thousand), or a loss of ($0.03) per diluted share, for the full year 2019.

For the full year 2020, the Company’s EPS was $0.11 and normalized after-tax margin was 16.1%.

General and Administrative Expense Ratio

For the year ended December 31, 2020, the G&A ratio was 2.0% compared to 31.3% in 2019. The full year 2020 normalized G&A ratio was 10.2%. This improvement reflects disciplined cost management and the benefits of scale produced by the Company’s growth.

Balance Sheet

Cash and investments at the Company amounted to $4.00 million as of December 31, 2020, compared to $1.02 million as of December 31, 2019.

In 2020, the Company’s Board of Directors approved the repurchase for redemption of 548,146 shares of common stock for $101,563 at an average cost of $0.1853 per share in privately negotiated transactions. The redemptions have been completed and the shares of common stock cancelled.

Cash Flow

Operating cash flow for the year ended December 31, 2020, amounted to $3.98 million, compared to $992.5 thousand for December 31, 2019, an increase of 301%. This is primarily due to strong operating results, cash flow timing in 2020, and the net impact of timing differences in governmental receivables and payables.

Conference Call

Management will host a conference call to discuss Selectis Health’s fourth quarter and year-end 2020 results at 11:00 a.m. Eastern Daylight Time on Thursday, April 1, 2021. The number to call for the interactive teleconference is (877) 407-0789 and the confirmation number is 13718277. A telephonic replay of the call will be available after 2:00 p.m. Eastern Daylight Time on the same day through Thursday April 8, 2021., by dialing (844) 512-2921 and entering the confirmation number 13718277.

SUMMARY OF FOURTH QUARTER AND YEARD-END 2020 RESULTS

GLOBAL HEALTHCARE REIT, INC. CONSOLIDATED BALANCE SHEETS (AUDITED)

       
  December 31, 2020 December 31, 2019 
ASSETS 
Property and Equipment, Net $ 38,238,367  $ 36,394,587  
Cash and Cash Equivalents   3,567,437    641,215  
Restricted Cash   410,866    351,298  
Accounts Receivable, Net   1,931,569    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   682,949    883,839  
Total Assets $ 45,932,483  $ 39,878,163  
        
LIABILITIES AND EQUITY 
Liabilities       
Debt, Net of discount of $452,593 and $493,353, respectively $ 38,129,600  $ 36,954,184  
Debt – Related Parties, Net of discount of $3,234 and $0, respectively   1,121,766    1,025,000  
Accounts Payable and Accrued Liabilities   3,196,178    1,241,573  
Accounts Payable – Related Parties   9,900    32,156  
Dividends Payable   7,500    7,500  
Derivative Liability   -    -  
Lease Security Deposit   251,600    251,100  
Total Liabilities   42,716,544    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, 26,866,379 and 27,441,040 Shares Issued and Outstanding at June 30, 2020 and December 31, 2019, respectively   1,343,319    1,372,052  
Prepaid Stock Compensation   -    -  
Additional Paid-In Capital   10,331,065    10,385,417  
Accumulated Deficit   (9,036,400)   (11,962,220) 
Total Global Healthcare REIT, Inc. Stockholders’ Equity   3,413,984    571,249  
Noncontrolling Interests   (198,045)   (204,599) 
Total Equity   3,215,939    366,650  
Total Liabilities and Equity $ 45,932,483  $ 39,878,163  
        

GLOBAL HEALTHCARE REIT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (AUDITED)

  Twelve Months Ended Three Months Ended
  December 31, December 31,
  2020  2019  2020  2019 
             
Revenue            
Rental Revenue $2,112,459  $3,267,644  $483,555  $478,424 
Healthcare Revenue  18,816,239   3,662,344   5,142,916   1,572,958 
Total Revenue  20,928,698   6,929,988   5,626,471   2,051,382 
Expenses            
General and Administrative  2,088,722   1,298,593   365,569   407,562 
Property Taxes, Insurance and Other Operating  13,384,322   2,760,227   4,626,520   1,163,392 
Provision for Bad Debt  292,529   155,833   62,730   155,833 
Acquisition Costs  207,899   62,882   (2,047)  56,111 
Depreciation  1,580,300   1,351,810   405,401   381,976 
Total Expenses  17,553,772   5,629,345   5,458,173   2,164,874 
Income (Loss) from Operations  3,374,926   1,300,643   168,298   (113,492)
Other (Income) Expense            
Gain on Warrant Liability  -   (2,785)  -   - 
(Gain) Loss on Extinguishment of Debt  (1,727,349)  -   (1,646,949)  - 
(Gain) Loss on Sale of Investments  -   (1,069)  -   - 
Gain on Proceeds from Insurance Claim  -   (158,161)  -   165,857 
Loss on Write-Off of Note Receivable  -   250,000   -   250,000 
Interest Income  (465)  (56,012)  -   (29,764)
Interest Expense  2,140,366   2,136,701   507,364   541,338 
Total Other (Income) Expense  412,552   2,168,674   (1,139,585)  927,431 
Net Income (Loss)  2,962,374   (868,031)  1,307,883   (1,040,923)
Net Loss Attributable to Noncontrolling Interests  (6,554)  6,417   (3,395)  (814)
Net Income (Loss) Attributable to Global Healthcare REIT, Inc.  2,955,820   (861,614)  1,304,488   (1,041,737)
Series D Preferred Dividends  (30,000)  (30,000)  (7,500)  (7,500)
Net Income (Loss) Attributable to Common Stockholders $2,925,820  $(891,614) $1,296,988  $(1,049,237)
Per Share Data:            
Net Income (Loss) per Share Attributable to Common Stockholders:            
Basic $0.11  $(0.03) $0.05  $(0.04)
Diluted $0.11  $(0.03) $0.05  $(0.04)
Weighted Average Common Shares Outstanding:            
Basic    27,247,531    27,282,385    26,916,460    27,441,040 
Diluted    27,630,031    27,282,385    27,298,960    27,441,040 

Forward Looking Statements

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, 2019, and also in its Quarterly Reports on Form 10-Q for the periods ended March 31, 2020, June 30, 2020, and September 30, 2020, which are on file with the SEC. Additional information will also be set forth 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 Thallinvestors@selectis.com

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Source: Selectis Health, Inc.


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