Global Healthcare Announces 2nd Quarter 2020 Results


Niwot, Colorado., Nov. 19, 2020 (GLOBE NEWSWIRE) -- Global Healthcare REIT, Inc. (OTC: GBCS) ("Global" or the "Company") announced financial results for the second quarter ended June 30, 2020.

SECOND QUARTER 2020 HIGHLIGHTS

  • Record revenue for the second quarter of $5,130,465 (2019 $1,614,424) a growth rate of 217% year-over -year and up 33% from the previous quarter;
  • Net Income of $1,120,696 for the second quarter (2019 a loss of $170,124);
  • Earnings Per Share for the second quarter of $.04 per share basic and diluted;
  • Net increase in Cash of $2,276,638 to a cash balance of $3,269,151 including restricted cash for the second quarter;
  • Realized first full quarter of operations at our 86 bed Quapaw Higher Call Nursing Center acquisition that the Company paid $1.3 Million and acquisition costs of $13,267;
  • The Quapaw Higher Call Nursing facility is performing well ahead of projections;
  • Purchased $402,000 of 13% mezzanine debt notes owed by Goodwill Hunting, LLC.

Lance Baller, Global's President and CEO, said, "During the second quarter, we built upon our prior successful efforts to effectively navigate through the pandemic with operational improvements. It is an instance where being smaller and more agile allowed our staff to serve our residents in new and innovative ways. The Company continues to move to a hybrid model of operated and leased properties to minimize downside risk. Our operated facilities performed well in the quarter, well ahead of the national averages. As the Company moves forward with its recently enhanced business model, the results have been effective. We look forward to our rebranded Oklahoma City facility reopening after extensive renovations late in the first quarter of 2021 to further enhance our success. This facility will have a niche highly skilled nursing segment for that community while still offering our standard skilled nursing services. Also, the Company will be implementing the necessary steps to rebrand the Company with a corporate name that aligns it better with its current business model. The Company has chosen Selectis Health, Inc. and will seek the necessary majority shareholder approval to complete this change. The Company has been working on strengthening its management for more timely financial reporting and more efficient operations which will support our growth. We will also shortly begin rolling out our rebranding effort with the launch of a new corporate website under the web address www.selectis.com. This rollout will also entail the completion of individual websites and digital marketing tools for each of our facilities.” 

SUMMARY OF SECOND QUARTER RESULTS

GLOBAL HEALTHCARE REIT, INC.
CONSOLIDATED BALANCE SHEETS

  June 30, 2020  December 31, 2019 
  (Unaudited)    
ASSETS        
Property and Equipment, Net $37,140,599  $36,394,587 
Cash and Cash Equivalents  2,844,515   641,215 
Restricted Cash  424,636   351,298 
Accounts Receivable, Net  1,562,911   1,188,100 
Investments in Debt Securities  24,387   24,387 
Intangible Assets  -   15,258 
Goodwill  379,479   379,479 
Prepaid Expenses and Other  674,404   883,839 
Total Assets $43,050,931  $39,878,163 
         
LIABILITIES AND EQUITY        
Liabilities        
Debt, Net of discount of $450,111 and $493,353, respectively $39,113,315  $36,954,184 
Debt – Related Parties, Net of discount of $5,192 and $0, respectively  1,119,808   1,025,000 
Accounts Payable and Accrued Liabilities  1,011,543   1,241,573 
Accounts Payable – Related Parties  -   32,156 
Dividends Payable  7,500   7,500 
Lease Security Deposit  252,600   251,100 
Total Liabilities  41,504,766   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, 27,414,525 and 27,441,040 Shares Issued and Outstanding at June 30, 2020 and December 31, 2019, respectively  1,370,726   1,372,052 
Additional Paid-In Capital  10,397,755   10,385,417 
Accumulated Deficit  (10,792,565)  (11,962,220)
Total Global Healthcare REIT, Inc. Stockholders’ Equity  1,751,916   571,249 
Noncontrolling Interests  (205,751)  (204,599)
Total Equity  1,546,165   366,650 
Total Liabilities and Equity $43,050,931  $39,878,163 

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

  Six Months Ended  Three Months Ended 
  June 30,  June 30, 
  2020  2019  2020  2019 
             
Revenue                
Rental Revenue $1,144,605  $1,825,575  $623,593  $930,287 
Healthcare Revenue  7,837,461   1,063,928   4,506,872   684,137 
Total Revenue  8,982,066   2,889,503   5,130,465   1,614,424 
Expenses                
General and Administrative  715,770   570,836   372,707   377,357 
Property Taxes, Insurance and Other Operating  4,985,975   893,019   2,654,231   543,831 
Provision for Bad Debts  263,890   -   57,282   - 
Acquisition Costs  28,654   -   13,763   - 
Depreciation  768,103   645,851   380,885   322,926 
Total Expenses  6,762,392   2,109,706   3,478,868   1,244,114 
Income from Operations  2,219,674   779,797   1,651,597   370,310 
Other (Income) Expense                
Gain on Warrant Liability  -   (2,758)  -   (2,655)
Gain on Extinguishment of Debt  (80,400)     (80,400)  - 
Gain on Sale of Investments  -   (1,069)  -   - 
Gain on Proceeds from Insurance Claim  -   (270,264)  -   - 
Interest Income  -   (7,003)  -   (1,536)
Interest Expense  1,116,571   1,070,860   611,301   544,625 
Total Other (Income) Expense  1,036,171   789,766   530,901   540,434 
Net Income (Loss)  1,183,503   (9,969)  1,120,696   (170,124)
Net Loss Attributable to Noncontrolling Interests  1,152   6,010   2,859   1,869 
Net Income (Loss) Attributable to Global Healthcare REIT, Inc.  1,184,655   (3,959)  1,123,555   (168,255)
Series D Preferred Dividends  (15,000)  (15,000)  (7,500)  (7,500)
Net Income (Loss) Attributable to Common Stockholders $1,169,655  $(18,959) $1,116,055  $(175,755)
Per Share Data:                
Net Income (Loss) per Share Attributable to Common Stockholders:                
Basic $0.04  $(0.00) $0.04  $(0.01)
Diluted $0.04  $(0.00) $0.04  $(0.01)
Weighted Average Common Shares Outstanding:                
Basic  27,427,928   27,122,607   27,414,816   27,347,134 
Diluted  27,810,428   27,122,607   27,797,316   27,347,134 

For Further Information Contact:

Jacob Taylor
jtaylor@gbcsreit.com