ATLANTA, June 16, 2020 /PRNewswire/ -- Regional Health Properties, Inc. (NYSE American: RHE) (NYSE American: RHEpA), a self-managed healthcare real estate investment company that invests primarily in real estate purposed for senior living and long-term care, reported results for the quarter ended March 31, 2020.
Business Update
- Successfully settled a total of two professional liability claims during the first and second quarter of 2020.
- Continued in the Company's capital improvement plan for our Ohio facilities. Management is encouraged by the early results and anticipates further improvements ultimately leading to higher cash rents.
Brent Morrison, Regional Health Properties' Chief Executive Officer, stated, "We applaud the extraordinary efforts of our operating partners and their staff to keep their residents safe during these unprecedented times caused by the COVID-19 pandemic. Many facilities have stopped admitting new patients in order to control the spread of COVID-19, resulting in lower occupancy rates, as operating costs are increasing from demands for protective gear and other items to boost efforts for infectious control. Fortunately, we've seen federal and state agencies act quickly through the CARES Act to mitigate these operating pressures so our operators have the resources they need in order to care for their residents."
Mr. Morrison continued, "With the future status of the pandemic still unknown, we continue to see a significant long-term need for our assets. As the pandemic subsides, we anticipate facility operating results to migrate back to more normal levels."
See the Company's recently filed Form 10-Q for additional details on the current and potential impact of COVID-19 on our business.
Management periodically monitors a number of facility performance metrics, including rent coverages both before and after management fees. In the first quarter of 2020, the Company's portfolio rent coverage before management fees was 1.6x and rent coverage after management fees was 1.2x. Occupancy and skilled mix for the Company's portfolio were 76.4% and 27.8% for the first quarter of 2020, respectively. These data exclude the impact of three managed facilities located in Ohio and one facility located in North Carolina, which transitioned to a new operator on March 1, 2019.
Summary of Financial Results for the Three Months Ended March 31, 2020
Total revenues in the first quarter of 2020 decreased 16.2% to $4.5 million, from $5.4 million in the first quarter of 2019. The decrease is a result of four facilities sold during the third quarter of 2019. The Company generally recognizes all rental revenues on a straight-line rent accrual basis.
General and administrative costs decreased 5.3%, to $0.9 million for the three months ended March 31, 2020, compared to $0.9 million for the same period in 2019. For both the current and prior year periods, general and administrative costs include minimal stock-based compensation expense.
Interest expense decreased by $0.9 million, or 56.8%, to $0.7 million for the first quarter of 2020 compared to $1.7 million for the same period in 2019. The decrease is mainly due to the payoff of the Pinecone and Congressional Bank loans in the third quarter of 2019.
Net loss attributable to Regional Health Properties, Inc.'s common stockholders in the first quarter of 2020 was $2.3 million, or $1.34 per basic and diluted share, compared to a net loss of $2.1 million or $1.22 per basic and diluted share in the prior year period.
Cash at March 31, 2020, totaled $4.0 million compared to $4.4 million at December 31, 2019. Restricted cash at March 31, 2020, totaled $3.3 million compared to $3.7 million at December 31, 2019. Total debt outstanding at March 31, 2020 amounted to $55.0 million compared to $55.4 million at December 31, 2019 (net of $1.3 million and $1.4 million of deferred financing costs at March 31, 2020 and December 31, 2019, respectively).
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