Good morning, and welcome to the Diversicare Healthcare Services Management Third Quarter Conference Call. Today’s call is being recorded. I would like to remind everyone that in addition to historical information, certain comments made during this conference call will be forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. And these statements involve risks and uncertainties that may cause actual events, results and/or performances to differ materially from those indicated by such statements. You are encouraged to review the risk factors and forward-looking statement disclosures on the company — that the company has provided in its annual report on Form 10-K for the fiscal year ended December 31, 2012, as well as in its public filings with the Securities and Exchange Commission.
During today’s call, references may be made to non-GAAP financial measures. Investors are encouraged to review those non-GAAP financial measures and the reconciliation of those measures to the comparable GAAP results in our press release furnished under Form 8-K.
I would now like to turn the call over to Kelly Gill, the President and Chief Executive Officer.
Kelly J. Gill – Chief Executive Officer, President and Director
Good morning. Thank you, operator, and thanks to all of you for joining our call today.
Also with me is our Chief Financial Officer, Jay McKnight, who will provide some financial details later in the call.
This quarter marks the 1 year anniversary of having Jay and Leslie Campbell, our Chief Operating Officer, joining me as the leadership for the company. I’d like to start by acknowledging everything we have accomplished to-date.
As we discuss our results for the quarter, I want to put those results in the context of all the changes we’ve made in 1 year to adjust to challenges the company has faced historically. Most notably and in a relatively short period of time, we’ve taken bold steps to reduce our exposure to professional liability risk by divesting 12 facilities in a difficult state.
To accomplish this, we added 11 facilities or 1,391 beds. This is roughly the equivalent bed capacity of the Arkansas group, thereby repositioning our portfolio geographically with increased revenue and earnings per bed.
Not only did we accomplish this, but we also concurrently expanded our financial capacity with our banking group and established an additional relationship with Aviv REIT. And I want to thank them for their support and confidence in us.
Likewise, we’ve enjoyed a long-standing relationship with Omega Health Investors and the strength of our relationship continues to build. I also want to publicly thank Omega for their support in constructively assisting us in transitioning the Arkansas facilities to another capable provider in the state. We are extremely honored to enjoy a mutually rewarding relationship with our strategic partners, not only with Omega and Aviv, but also with our banking partners led by The PrivateBank in Chicago.
None of this could have been possible without Jay and Leslie’s leadership and all of the hard work of Diversicare’s 6,000 employees in all the states in which we operate, and I want to recognize them as well today.
As I discuss our third quarter, I also want to point out that all of these changes have yet to be reflected in our reported results, and moreover, that some continue to be works in progress. So I want to first give a status update on the strategic steps we’ve taken and how they impacted the quarter.
To begin, we completed the disposition of our remaining Arkansas facilities at the beginning of September, and the operating results of those facilities are classified as discontinued operations for both the 2013 and 2012 third quarters. source
