Financial Report for the Month and Quarter ended. (unaudited)

Transcription

1 Financial Report for the Month and Quarter ended (unaudited)

2 Management Discussion December, 2015 Prepared by Deidre Kinsey, CEO of Longhorn Village The December net operating income was $213,897, which is positive to the budget by $28,215, while year to date NOI of $2,697,030 represents a positive variance to budget of $826,521. The actual total operating revenue for the month was $1,528,831, which represents a negative variance to budget of $8,558. The Independent living occupancy as of December 31st totaled 206 units (96.3 percent). The average occupancy of the LHV Health Center for all service levels (skilled nursing, assisted living and memory care) was 73.8 percent for the month of December The total operating expenses for the month of $1,314,934 represent a positive variance to budget of $36,773. The year to date operating expenses are favorable to budget by $2,232,304. The positive variance in expenses are primarily due to health care occupancy. 2

3 Balance Sheet 12/31/15 12/31/14 ASSETS Current assets: Cash 4,037,859 4,432,379 Accounts Receivable 470, ,266 Inventory 52,357 55,434 Prepaid Expenses 244, ,448 Interest Receivable 140, ,565 Notes Receivable 668, ,100 Total current assets 5,614,737 6,089,192 Noncurrent assets: Land 6,879,357 6,879,357 Property and equipment 4,433,499 4,344,378 Building 124,002, ,853,394 Accumulated depreciation (33,012,738) (28,512,244) Marketing costs 10,874,076 10,874,076 Financing costs 3,225,936 3,225,936 Accumulated Amortization (6,534,284) (5,296,803) Trustee held funds 18,067,930 18,095,970 Total noncurrent assets 127,936, ,464,063 Total assets 133,551, ,553,255 ============ ============ LIABILITIES & NET ASSETS Current Accounts Payable 2,172,746 2,915,495 Accrued Expenses 1,751,058 1,561,334 Accrued interest 3,060,622 3,100,197 Total current 6,984,426 7,577,026 Non-Current Refundable Entrance Fee Deposits 426, ,041 Deferred Entrance Fee Revenue 18,718,991 14,894,924 Entrance Fee Liability 96,377,317 97,164,526 Long-Term Debt 88,912,938 90,192,773 Total Non-Current 204,435, ,600,264 TOTAL LIABILITIES 211,420, ,177,291 NET ASSETS Net Assets - Unrestricted (70,625,678) (70,625,678) Net Assets - Temporarily Restricted 1,642 1,642 Change in Net Assets (Deficit) (7,244,801) 0 TOTAL NET ASSETS (77,868,836) (70,624,035) TOTAL LIABILITIES & NET ASSETS 133,551, ,553,255 ============== ============== 3

4 Balance Sheet Compared to Prior Month 12/31/15 11/30/15 ASSETS Current assets: Cash 4,037,859 4,711,726 Accounts Receivable 470, ,287 Inventory 52,357 53,283 Prepaid Expenses 244, ,289 Interest Receivable 140, ,768 Notes Receivable 668, ,902 Total current assets 5,614,737 6,339,255 Noncurrent assets: Land 6,879,357 6,879,357 Property and equipment 4,433,499 4,364,818 Building 124,002, ,986,669 Accumulated depreciation (33,012,738) (32,636,834) Marketing costs 10,874,076 10,874,076 Financing costs 3,225,936 3,225,936 Accumulated Amortization (6,534,284) (6,431,161) Trustee held funds 18,067,930 17,436,046 Total noncurrent assets 127,936, ,698,907 Total assets 133,551, ,038,162 ============ ============ LIABILITIES & NET ASSETS Current Accounts Payable 2,172,746 2,145,062 Accrued Expenses 1,751,058 1,800,715 Accrued interest 3,060,622 2,550,518 Total current 6,984,426 6,496,295 Non-Current Refundable Entrance Fee Deposits 426, ,500 Deferred Entrance Fee Revenue 18,718,991 18,859,145 Entrance Fee Liability 96,377,317 96,684,537 Long-Term Debt 88,912,938 88,905,425 Total Non-Current 204,435, ,795,607 TOTAL LIABILITIES 211,420, ,291,902 NET ASSETS Net Assets - Unrestricted (70,625,678) (70,625,678) Net Assets - Temporarily Restricted 1,642 1,642 Change in Net Assets (Deficit) (7,244,801) (6,629,705) TOTAL NET ASSETS (77,868,836) (77,253,740) TOTAL LIABILITIES & NET ASSETS 133,551, ,038,162 ============== ============== 4

5 Statement of Operations MTD YTD ACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE Operating Revenues Monthly Fees-IL 1st Person 915, ,604 27,833 10,602,176 10,409, ,464 Monthly Fees-IL 2nd Person 95, ,100 (7,029) 1,106,935 1,192,848 (85,913) Monthly Fees-IL Incentives (350) (17,860) 17,510 (171,124) (214,353) 43,229 Monthly Fees - AL 90, ,354 (12,762) 1,081,777 1,193,675 (111,898) Monthly Fees - MC 83,435 93,476 (10,041) 980,052 1,092,962 (112,910) Monthly Fees - SNF 507, ,609 (67,729) 5,178,675 6,802,724 (1,624,049) Charity (45,130) (63,097) 17,967 (670,976) (737,427) 66,451 Other Revenue 56,850 41,349 15, , ,617 72,510 Life Care Discounts (174,955) (185,147) 10,192 (2,010,455) (2,164,788) 154, Total Operating Revenues 1,528,831 1,537,389 (8,558) 16,666,187 18,071,971 (1,405,784) Operating Expenses Administration 169, ,251 (33,297) 1,346,942 1,634, ,316 Human Resources 28,684 18,910 (9,774) 228, ,614 (2,106) Marketing 60,312 46,936 (13,377) 553, ,554 8,141 Wellness 9,716 24,761 15, , , ,822 Assisted Living 41,826 50,873 9, , , ,836 Memory Care 36,254 32,772 (3,482) 365, ,555 28,320 Nursing 380, ,037 (10,253) 3,642,339 4,426, ,613 Dining 299, ,324 1,267 3,335,319 3,602, ,266 Environmental 84, ,012 21,449 1,034,420 1,272, ,651 Housekeeping 72,824 77,368 4, , , ,656 Facility Cost 87, ,692 63,792 1,626,981 1,820, ,256 Resident Services 43,960 35,771 (8,188) 353, ,664 74, Total Operating Expenses 1,314,934 1,351,707 36,773 13,969,156 16,201,461 2,232,304 Net Operating Income (Loss) 213, ,682 28,215 2,697,030 1,870, ,521 Non-Operating Revenue Earned Entrance Fees 144, ,578 24,576 1,714,178 1,434, ,286 Interest Income 23,613 25,043 (1,430) 294, ,505 (5,849) Total Non-Operating Rev. 167, ,621 23,146 2,008,834 1,735, ,437 Non-Operating Expenses Interest Expense 510, ,904 3,684 6,122,525 6,166,848 44,323 Depreciation 375, ,934 (2,970) 4,500,493 4,475,263 (25,230) Amortization 110, ,636 (1) 1,327,646 1,327,643 (3) Total Non-operating Exp. 996, , ,950,665 11,969,754 19,089 Change in Net Assets (615,096) (667,171) 52,075 (7,244,801) (8,363,847) 1,119,046 ============== ============== ============== ============== ============== ============== 5

6 Statement of Cash Flows MTD YTD Cash flows from operating activities: Change in net assets (615,096) (7,244,801) Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Earned Entry Fees (144,154) (1,714,178) Depreciation 375,904 4,500,493 Amortization 103,123 1,237,481 Change in assets and liabilities: Accounts receivable 43,665 (114,357) Inventory 926 3,077 Prepaid expenses 29, ,436 Accounts payable 27,684 (742,749) Accrued expenses (49,657) 189,724 Interest receivable (23,216) 11,581 Accrued Interest 510,104 (39,575) Net Cash Provided by from\ (for) Operating Activities 258,558 (3,687,868) Cash Flows from Investing Activities: Capital expenditures (84,836) (238,551) Trustee Held Funds (631,883) 28, Net Cash Used by from\(for) Investing Activities (716,719) (210,511) Cash Flows from financing activities: Repayment of bonds 7,514 (1,279,834) Notes receivable 0 (45,802) Entrance fees received (303,220) 4,751,036 Entrance fee deposits 80,000 78, Net Cash Provided from \ (for)financing Activities (215,706) 3,503,858 Net Cash Flow (673,867) (394,520) Beginning Cash 4,711,726 4,432, Ending Cash 4,037,859 4,037,859 ============ ============ 6

7 Quarterly Comparative Balance Sheet 12/31/15 09/30/15 ASSETS ASSETS Current assets: Cash 4,037,859 5,229,594 Accounts Receivable 470, ,040 Inventory 52,357 53,995 Prepaid Expenses 244, ,754 Interest Receivable 140,985 71,335 Notes Receivable 668, ,115 Total current assets 5,614,737 6,977,833 Noncurrent assets: Land 6,879,357 6,879,357 Property and equipment 4,433,499 4,360,473 Building 124,002, ,865,828 Accumulated depreciation (33,012,738) (31,881,126) Marketing costs 10,874,076 10,874,076 Financing costs 3,225,936 3,225,936 Accumulated Amortization (6,534,284) (6,224,915) Trustee held funds 18,067,930 15,960,773 Total noncurrent assets 127,936, ,060,401 Total assets 133,551, ,038,234 ============ ============ LIABILITIES & NET ALITIES & NET ASSETS Current Accounts Payable 2,172,746 2,948,633 Accrued Expenses 1,751,058 1,237,592 Accrued interest 3,060,622 1,530,311 Total current 6,984,426 5,716,537 Non-Current Refundable Entrance Fee Deposits 426, ,041 Deferred Entrance Fee Revenue 18,718,991 16,365,706 Entrance Fee Liability 96,377,317 98,917,081 Long-Term Debt 88,912,938 88,890,397 Total Non-Current 204,435, ,531,225 TOTAL LIABILITIES 211,420, ,247,761 NET ASSETS Net Assets - Unrestricted (70,625,678) (70,625,678) Net Assets - Temporarily Restricted 1,642 1,642 Change in Net Assets (Deficit) (7,244,801) (5,585,492) TOTAL NET ASSETS (77,868,836) (76,209,527) TOTAL LIABILITIES & NET ASSETS 133,551, ,038,234 ============== ============== 7

8 For the Quarter Ending Statement of Operations QTD YTD ACTUAL BUDGET VARIANCE % ACTUAL BUDGET % Operating Revenues Monthly Fees-IL 1st Person 2,730,615 2,662,812 67, % 10,602,176 10,409, % Monthly Fees-IL 2nd Person 279, ,300 (26,849) (8.8%) 1,106,935 1,192,848 (7.2%) Monthly Fees-IL Incentives (1,850) (53,586) 51,736 (96.5%) (171,124) (214,353) (20.2%) Monthly Fees - AL 276, ,064 (33,213) (10.7%) 1,081,777 1,193,675 (9.4%) Monthly Fees - MC 251, ,430 (28,895) (10.3%) 980,052 1,092,962 (10.3%) Monthly Fees - SNF 1,364,565 1,726,825 (362,260) (21.0%) 5,178,675 6,802,724 (23.9%) Charity (190,985) (189,283) (1,703) 0.9% (670,976) (737,427) (9.0%) Other Revenue 177, ,125 52, % 569, , % Life Care Discounts (523,760) (555,439) 31,679 (5.7%) (2,010,455) (2,164,788) (7.1%) Total Operating Revenues 4,363,512 4,612,249 (248,737) (5.4%) 16,666,187 18,071,971 (7.8%) Operating Expenses Administration 374, ,769 (33,867) (8.3%) 1,346,942 1,634,258 (17.6%) Human Resources 67,445 56,744 10, % 228, , % Marketing 181, ,846 40, % 553, ,554 (1.4%) Wellness 44,391 74,249 (29,857) (40.2%) 187, ,942 (37.0%) Assisted Living 118, ,649 (34,475) (22.6%) 470, ,641 (22.9%) Memory Care 94,239 98,370 (4,132) (4.2%) 365, ,555 (7.2%) Nursing 963,803 1,110,073 (146,270) (13.2%) 3,642,339 4,426,951 (17.7%) Dining 864, ,910 (36,464) (4.0%) 3,335,319 3,602,585 (7.4%) Environmental 214, ,096 (103,913) (32.7%) 1,034,420 1,272,071 (18.7%) Housekeeping 216, ,100 (15,327) (6.6%) 824, ,388 (11.2%) Facility Cost 345, ,064 (109,505) (24.1%) 1,626,981 1,820,238 (10.6%) Resident Services 106, ,053 (811) (0.8%) 353, ,664 (17.4%) Total Operating Expenses 3,591,572 4,054,923 (463,351) (11.4%) 13,969,156 16,201,461 (13.8%) Net Operating Income (Loss) 771, , , % 2,697,030 1,870, % Non-Operating Revenue Earned Entrance Fees 493, , , % 1,714,178 1,434, % Interest Income 70,371 75,127 (4,756) (6.3%) 294, ,505 (1.9%) Total Non-Operating Rev. 563, , , % 2,008,834 1,735, % Non-Operating Expenses Interest Expense 1,531,406 1,541,712 (10,306) (0.7%) 6,122,525 6,166,848 (0.7%) Depreciation 1,131,612 1,118,812 12, % 4,500,493 4,475, % Amortization 331, , % 1,327,646 1,327, % Total Non-operating Exp. 2,994,929 2,992,434 2, % 11,950,665 11,969,754 (0.2%) Change in Net Assets (1,659,309) (2,001,255) 341,946 (17.1%) (7,244,801) (8,363,847) (13.4%) ============== ============== ============== ============== ============== ============== ======== ,244, ,119, (9,482,893.79) 8

9 Statement of Cash Flows For Quarter Ending QTD YTD Cash flows from operating activities: Change in net assets (1,659,309) (7,244,801) Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Earned Entry Fees (493,308) (1,714,178) Depreciation 1,131,612 4,500,493 Amortization 309,369 1,237,481 Change in assets and liabilities: Accounts receivable 222,418 (114,357) Inventory 1,638 3,077 Prepaid expenses 9, ,436 Accounts payable (775,888) (742,749) Accrued expenses 513, ,724 Interest receivable (69,649) 11,581 Accrued Interest 1,530,311 (39,575) Net Cash Provided by from\ (for) Operating Activities 720,400 (3,687,868) Cash Flows from Investing Activities: Capital expenditures (210,022) (238,551) Trustee Held Funds (2,107,157) 28,040 Net Cash Used by from\(for) Investing Activities (2,317,179) (210,511) Cash Flows from financing activities: Repayment of Series 2008 Bonds 22,542 (1,279,834) Notes receivable 7,213 (45,802) Initial entrance fees received 306,830 4,751,036 Entrance fee deposits 68,459 78,459 Net Cash Provided from \ (for)financing Activities 405,043 3,503,858 Net Cash Flow (1,191,735) (394,520) Beginning Cash 5,229,594 4,432, Ending Cash 4,037,859 4,037,859 ============ ============ 9

10 Marketing Report September 30, 2014 December produced three (3) new reservation deposits in Independent Living and no reservation deposit cancel. There was no settlement/close with no attrition, ending Independent living occupancy with a total of 206 occupied units. Total lead generation for December was 39 which consisted of 37 non-referral leads and 2 referral leads. Top referral sources was the internet. Monthly Information Quarterly Information For the Month Ended For the Quarter Ended Beginning Depositors - 1 Add: New Depositors 3 4 Less: Settlements - (1) Less: Transfers to Wait List - - Less: Cancellations - (1) Ending Depositors 3 3 Trust Account Balances (unaudited) Monthly Information Quarterly Information Liquidity (unaudited) As of As of Entrance Fee Fund $ 27,017 $ 27,017 Working Capital Fund $ 5,001,885 $ 5,001,885 Debt Service Reserve Fund $ 6,902,304 $ 6,902,304 Bond Redemption Fund $ 1,847,334 $ 1,847,334 Other Trustee Held Funds $ 4,289,389 $ 4,289,389 $ 18,067,930 $ 18,067,930 Requirement: On each testing date (June 30 and December 31 of each fiscal year) prior to Stable Occupancy the Obligated Group shall have no less than 120 Days Cash on Hand, on each of the next two Testing Dates immediately succeeding Stable Occupancy the Obligated Group shall have no less than 150 Days Cash on Hand, and on each Testing Date thereafter the Obligated Group shall have no less than 180 days cash on hand. Monthly Information Quarterly Information As of As of Operating Account $ 642,339 $ 642,339 1st Generation Entrance fee in excess of STD $ 1,874,351 $ 1,874,351 2nd Generation Entrance Fee Account $ 3,395,520 $ 3,395,520 $ 5,912,210 $ 5,912,210 Working Capital Fund $ 5,001,885 $ 5,001,885 Cash Available to meet Requirement $ 10,914,095 $ 10,914,095 One Days' Expenses $ 55,046 $ 55,046 Days Cash On Hand Days Cash On Hand Requirement $ 6,605,484 $ 6,605,484 Cash in Excess of Requirement $ 4,308,611 $ 4,308,611 Cumulative Cash Operating Loss (unaudited) Monthly Information Quarterly Information As of As of Calculated from 1/1/2012 $ (1,871,502) $ (1,871,502) Required at June 30, 2013 (not less than ) $ (2,250,000) $ (2,250,000) 10

11 LONGHORN VILLAGE 2015 Occupancy Average Occupancy by Unit & Percent of Capacity January February March Quarter Independent Living % % % % Assisted Living % % % % Memory Care % % % % Skilled Nursing % % % % April May June Quarter Independent Living % % % % Assisted Living % % % % Memory Care % % % % Skilled Nursing % % % % July August September Quarter Independent Living % % % % Assisted Living % % % % Memory Care % % % % Skilled Nursing % % % % October November December Quarter Independent Living % % % % Assisted Living % % % % Memory Care % % % % Skilled Nursing % % % % Occupancy requirement at for Independent Living is 95%. Independent living occupancy at was 206 (96.3%) 11

12 LONGHORN VILLAGE 2015 Occupancy Payor Mix for Skilled Nursing Unit in Days and Percent of Total January February March Quarter Medicare % % % % Medicaid % % % % Private Pay % % % % Lifecare % % % % % % % % April May June Quarter Medicare % % % % Medicaid % % % % Private Pay % % % % Lifecare % % % % % % % % July August September Quarter Medicare % % % % Medicaid % % % % Private Pay % % % % Lifecare % % % % % % % % October November December Quarter Medicare % % % % Medicaid % % % % Private Pay % % % % Lifecare % % % % % % % % 12