UNIVERSITY GENERAL HEALTH SYSTEM INC 
By FRIENDSWOOD, Texas, Aug. 13 /PRNewswire-FirstCall/ -- TrinityCare Senior Living, Inc. (OTC Bulletin Board: TCSR) ("TrinityCare" or the "Company"), which develops, manages and owns faith-based senior living facilities, today announced its operating results for the second quarter and first half of 2009.
For the three months ended June 30, 2009, total revenues increased 12% to $1,594,803, versus revenues of $1,428,476 in the second quarter of 2008. Gross profit increased 6% to $1,033,848 (64.8% of revenues) in the most recent quarter, compared with $1,027,846 (72.0% of revenues) in the three months ended June 30, 2008. The Company reduced its operating loss in the second quarter by 16% to ($196,125), compared with an operating loss of ($234,397) in the prior-year period. After interest expense, the Company reported a net loss of ($475,221), or ($0.26) per share, in the quarter ended June 30, 2009. In the year-earlier quarter, the Company reported a net loss before minority interest of ($692,719) and a net loss after minority interest of ($300,099), or ($5.34) per share. The number of weighted average shares outstanding in the second quarter of 2009 totaled 1,825,651, compared with 56,200 weighted average shares outstanding during the second quarter of 2008.
For the six months ended June 30, 2009, total revenues increased 15% to $3,141,804, versus revenues of $2,734,100 in the first half of 2008. Gross profit increased 18% to $1,847,555 (58.8% of revenues) in the first half of 2009, compared with $1,567,397 (57.3% of revenues) in the six months ended June 30, 2008. The Company's operating loss in the first half of 2009 totaled ($184,600), which represented a 53% improvement when compared with an operating loss of ($391,330) in the corresponding period of the previous year. After interest expense, the Company reported a net loss of ($721,167), or ($0.47) per share, in the six months ended June 30, 2009. In the year-earlier period, the Company reported a net loss before minority interest of ($1,108,848) and a net loss after minority interest of ($477,288), or ($8.49) per share. The number of weighted average shares outstanding in the first half of 2009 totaled 1,536,173, compared with 56,200 weighted average shares outstanding during the first half of 2008.
"We have continued to improve resident occupancy rates at our Knoxville, Tennessee and Port Lavaca, Texas senior living facilities, while our Pearland, Texas facility operated at near-100% occupancy levels during the second quarter and first half of 2009," stated Donald W. Sapaugh, Chairman and Chief Executive Officer of TrinityCare Senior Living, Inc. "Despite higher labor and payroll expenses, we were able to expand our gross profit margin to 58.8% in the first half of 2009, from 57.3% a year earlier. We also reduced our operating loss by 53%, when compared with the first half of 2008. We expect operating results to continue to improve as occupancy levels build in future quarters."
"Our expansion program gained considerable momentum in the most recent quarter, as we geared up to commence construction on new senior living facilities in a number of markets," continued Sapaugh. "Since the end of our first quarter, we have announced the execution of funding agreements for new senior living facilities, each with at least 82 residential units, in Pearland, Texas; Crossville, Tennessee; and Katy, Texas. These three facilities, when they open in 2010, will more than double the number of residential units under management by TrinityCare, and we expect to announce funding agreements for additional projects in the coming months. As awareness of our unique approach to faith-based senior care builds throughout the Southeastern U.S., we are being contacted by churches and developers who are interested in partnering with us to open facilities in new markets. We carefully analyze the economics of each proposal and expect expansion in new and existing markets to serve as the foundation for profitability and the enhancement of shareholder values in the future."
About TrinityCare Senior Living, Inc.
TrinityCare Senior Living ("TrinityCare") develops, owns, and manages quality senior living facilities that focus on enriching the faith of the residents and providing state-of-the-art independent living, assisted living, memory care and adult day care services in a single location. The Company partners with local churches and developers for each facility and offers a wide range of both community and personal services to residents. TrinityCare is a rapidly growing company with three successful facilities currently operating in Texas and Tennessee, and the Company has announced funding commitments for three additional facilities to be completed in 2010. Near-term expansion plans target the Southeastern part of the United States. For more information please visit www.trinitycare.com.
TrinityCare is headquartered in Friendswood, Texas (Houston metropolitan area) and its common stock trades on the OTC Bulletin Board under the symbol "TCSR".
Forward-Looking Statements
The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements related to the future financial performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful execution of growth strategies, product development and acceptance, the impact of competitive services and pricing, general economic conditions, and other risks and uncertainties described in the Company's periodic filings with the Securities and Exchange Commission.
For Additional Information, Please Contact:
Donald W. Sapaugh, CEO, at (281) 482-9700
or
RJ Falkner & Company, Inc., Investor Relations Counsel at
(830) 693-4400 or via email at info@rjfalkner.com
TrinityCare Senior Living, Inc. and Subsidiaries
Consolidated Balance Sheets
June 30, December 31,
2009 2008
(Unaudited) (Audited)
----------- --------------
ASSETS
Cash $261,865 $546,164
Accounts receivable 48,861 81,620
Prepaid expenses 198,859 258,917
------- -------
Total Current Assets 509,585 886,701
------- -------
Property and equipment 17,041,045 16,956,608
Accumulated depreciation (2,301,852) (2,015,398)
---------- ----------
Net, property and equipment 14,739,193 14,941,210
---------- ----------
Loan costs 261,136 251,136
Accumulated amortization (30,985) (6,067)
------- ------
Net, loan costs 230,151 245,069
Project development costs 46,935 9,120
Deposits and reserves 157,574 271,076
------- -------
Total Other Assets 434,660 525,265
------- -------
Total Assets $15,683,438 $16,353,176
=========== ===========
LIABILITIES
Accounts payable $384,505 $482,487
Accrued expenses 518,872 404,122
Deferred revenue 205,280 139,037
Line of credit 81,037 79,022
Current portion of long-term debt 5,734,793 5,661,069
--------- ---------
Total Current Liabilities 6,924,487 6,765,737
--------- ---------
Mortgage 12,216,089 12,321,991
Notes payable and other debt 811,430 895,229
Derivative liability 256,350 -
---------- ----------
Total Long-Term Debt 13,283,869 13,217,220
---------- ----------
Total Liabilities 20,208,356 19,982,957
---------- ----------
Commitments and contingencies - -
---------- ----------
EQUITY (DEFICIT)
Preferred stock, $.001 par, 20,000,000
authorized:
Preferred stock A: 891,080 and 0
issued and outstanding 891 -
Preferred stock B: 3,000 and 0 issued
and outstanding 1 -
Common Stock: 2,082,484 and 56,200
issued and outstanding 2,082 562
Additional paid in capital 3,795,297 3,971,649
Minority Interest - -
Retained Earnings (8,323,189) (7,602,022)
---------- ----------
Total Equity / (Deficit) (4,524,918) (3,629,811)
---------- ----------
----------- -----------
Total Liabilities and Equity $15,683,438 $16,353,146
=========== ===========
TrinityCare Senior Living, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
Revenues:
Resident revenue 1,557,152 1,385,284 3,081,276 2,654,456
Publication revenue 37,651 43,192 60,528 79,644
------ ------ ------ ------
Total Revenues $1,594,803 $1,428,476 $3,141,804 $2,734,100
---------- ---------- ---------- ----------
Direct Costs
Direct labor 376,382 225,692 940,545 824,919
Direct costs of
operations 184,573 174,938 353,704 341,784
------- ------- ------- -------
Total Direct Costs 560,955 400,630 1,294,249 1,166,703
------- ------- --------- ---------
Gross Profit $1,033,848 $1,027,846 $1,847,555 $1,567,397
---------- ---------- ---------- ----------
Operating Costs
Advertising 41,198 30,120 76,669 62,947
Marketing and Selling 12,096 7,450 23,721 20,582
Publishing 36,136 36,613 71,151 67,650
Payroll expenses 566,598 504,273 699,554 605,705
General and
administrative 38,757 141,140 108,065 187,373
Professional 92,277 40,225 165,036 84,927
Insurance 58,841 59,224 103,928 118,418
Management fees - - - -
Rent and facility 227,760 249,555 472,659 472,264
Depreciation and
amortization 156,310 193,643 311,372 338,861
------- ------- ------- -------
Total operating
expenses $1,229,973 $1,262,243 $2,032,155 $1,958,727
---------- ---------- ---------- ----------
Operating income
(loss) (196,125) (234,397) (184,600) (391,330)
Interest expense 287,746 458,322 545,217 717,518
Gain on Derivative
Valuation (8,650) (8,650)
---------- ---------- ---------- ----------
Loss before minority
interest (475,221) (692,719) (721,167) (1,108,848)
Minority interest in net
loss - 392,620 - 631,560
---------- ---------- ---------- ----------
Net Loss $(475,221) $(300,099) $(721,167) $(477,288)
========== ========== ========== ==========
Loss per share, Basic
and diluted (0.26) (5.34) (0.47) (8.49)
===== ===== ===== =====
Basic and diluted
weighted average
number of common
shares 1,825,651 56,200 1,536,173 56,200
========= ====== ========= ======
SOURCE TrinityCare Senior Living, Inc.
