ATLANTA, GA--(Marketwire - Aug 7, 2012) -  AdCare Health Systems, Inc. (NYSE MKT: ADK), a leading long-term care provider, reported results for the second quarter ended June 30, 2012.

Q2 2012 Financial Highlights

• Record revenues of $55.0 million, up 10% sequentially and up 60% from Q2 2011.
• Same-facility revenues of $37.0 million, up 1% sequentially and up 9% vs. Q2 2011.
• Income from operations was a record $4.0 million, up 58% sequentially and up 398% from Q2 2011.
• Adjusted EBITDAR from continuing operations was a record $8.0 million, up 28% sequentially and 89% vs. Q2 2011.
• Net income of $0.7 million or $0.05 per share vs. previous and year-ago quarterly loss.
• Acquisitions completed during the quarter added more than $19 million in estimated annualized revenue run-rate.

Q2 2012 Summary of Financial Results
Revenues in the second quarter of 2012 increased 60% to a record $55.0 million from $34.4 million in the same year-ago quarter. The increase in revenue was primarily due to acquisitions completed since April 1, 2011 as part of AdCare's M&A program. The company's skilled nursing facilities existing prior to April 1, 2011 also contributed to the improvement in revenue, cost savings measures and Medicaid rate improvement. A more detailed discussion and analysis of the company's performance will be available in AdCare's Form 10-Q for the quarter ended June 30, 2012 as filed with the Securities and Exchange Commission.

Income from operations in the second quarter of 2012 was a record $4.0 million, increasing 398% from $0.8 million in the second quarter of 2011. The increase in income from operations was primarily due to acquisitions, as well as revenue optimization and expense controls with newly acquired facilities and same-facilities. The company's cost of services as a percentage of patient care revenues decreased to 77.3% in the second quarter of 2012, as compared to 80.0% for the same year-ago quarter.

For earnings attributable to AdCare and its shareholders, net income in the second quarter of 2012 totaled $0.7 million or $0.05 per basic and diluted share, as compared to a net loss of $4.4 million or $(0.50) per basic and diluted share in the same year-ago quarter.

Adjusted EBITDAR from continuing operations in the second quarter of 2012 totaled a record $8.0 million, up 89% from adjusted EBITDAR from continuing operations of $4.2 million in the second quarter of 2011 (see "Use of Non-GAAP Financial Information," below, for the definition of adjusted EBITDAR, a non-GAAP financial metric, as well as an important discussion about the use this metric and its reconciliation to GAAP net income.)

Combined cash, current restricted cash and cash equivalents at June 30, 2012 totaled $13.0 million, as compared to $9.2 million at December 31, 2011.

Q2 2012 Operational Highlights

• Completed the acquisition of three skilled nursing facilities in Arkansas, with an aggregate of 434 beds in service. Two of the facilities have an estimated $15.9 million in gross annualized revenues based upon their most recent financial statements, with the third facility having the capacity to produce $20 million in gross annual revenues primarily as the result of renovations completed during the quarter.
  
  
• Completed acquisition of a skilled nursing facility in Arkansas, which has 77 beds in service and an estimated $3.3 million in gross annualized revenues (according to its most recent financial statements).
  
  
• Signed purchase agreements for two skilled nursing facilities in Oklahoma, with an aggregate of 239 beds in service and an estimated $10.3 million in gross annualized revenues (based upon their most recent financial statements). Subsequent to the end of the quarter, AdCare completed the acquisition of one of the facilities, with the other expected to be completed in Q3 2012.
  
  
• Signed a purchase agreement for a skilled nursing facility in Glennville, Georgia, which has 134 beds in service and an estimated $6.4 million in gross annualized revenues (based upon its most recent financial statements). Subsequent to the end of the quarter, AdCare completed the acquisition.

Total Facility Count
At the end of the second quarter, the company operated 48 facilities comprised of 38 skilled nursing centers, nine assisted living residences and one independent living/senior housing facility, with a total of 4,427 beds/units in service. Of these 48 facilities, 26 are owned, 12 are leased, six are consolidated variable interest entities, and four are managed for third parties. The facilities are located in Alabama, Arkansas, Georgia, Missouri, North Carolina, Ohio and Oklahoma. Subsequent to the end of the second quarter, the company completed the acquisition of two additional facilities, bringing the total number it currently operates to 50.

Management Commentary
"Our second quarter results reflect the successful execution of our ongoing acquisition and integration program, resulting in record revenue and operating profit that has exceeded all expectations," said AdCare's president and chief executive officer, Boyd P. Gentry. "Moreover, these results demonstrate our proven ability to grow revenues organically through facility optimization, as evidenced especially in the improved performance of facilities we have held for more than 12 months."

"This optimization process begins with acquiring underperforming skilled nursing properties, then assisting the local facility leadership in improving the level of care, increasing post-acute census and realigning their payment rate," continued Gentry. "This optimization strategy increased our second quarter 'same-facility' revenues by 9% over the year-ago quarter. Our improving Q2 operating results also reflected the further adoption of a number of cost containment measures across all of our facilities. Altogether, these results demonstrate that our model is more than sustainable, and we expect further margin improvement to continue throughout the year."

Chris Brogdon, AdCare's chief acquisition officer, commented: "AdCare has put under contract 47 facilities since we began our M&A campaign in the summer of 2010 and 15 since the beginning of 2012. During the quarter, our M&A program expanded operations into the Southeast and Southern region of the U.S., established four additional facilities in Arkansas, and put two additional facilities under contract in Oklahoma and one in Georgia. We continue to expect our new facilities and these pending acquisitions to leverage our infrastructure, thereby improving our overall EBITDA margin."

"We will continue pursuing an aggressive M&A program throughout the second half of 2012," added Brogdon. "In fact, we are currently evaluating several attractive opportunities in the Southern region of the U.S."

Combining the company's current annualized run-rate with transactions in the process of closing, AdCare's estimated annualized revenue run-rate is expected to exceed $250 million. This would represent an increase of more than 65% over the company's revenues in 2011, and an increase of more than nine times revenues since initiating its M&A campaign. AdCare's expected annualized revenue run-rate does not include the potential revenues of the $20 million from the newly renovated sub-acute care facility in Arkansas.

Conference Call and Webcast
AdCare will hold a conference call to discuss its second quarter 2012 financial results tomorrow, Wednesday, August 8, 2012 at 8:30 a.m. Eastern time. Management will host the presentation, followed by a question and answer period.

Date: Wednesday, August 8, 2012
Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)
Dial-In Number: 1-877-941-8416
International: 1-480-629-9808
Conference ID#: 4552854

The conference call will be webcast simultaneously here and available for replay via the investor section of the company's website at www.adcarehealth.com.

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 949-574-3860.

A replay of the call will be available after 11:30 a.m. Eastern time on the same day and until September 8, 2012.

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay pin number: 4552854

Summary of Closed and Pending Transactions Since Start of M&A Program
ALF = Assisted Living Facility SNF = Skilled Nursing Facility ARR= Annualize Revenue Run-rate¹

Facility Type	Count	Beds/ Units	Location	Trans- action Type	ARR 1	Finance Terms	Completion Status
ALF	3	72 beds	Ohio	Purchase (Remaining 50%)	$3.2M	Cash	Closed 3-31-10
ALF	1	104 Units	Hoover, AL	Consol. Variable Interest Entity (CVIE)	$1.4M	1-yr purchase option, expiring June 2013	Signed option to purchase. Currently a CVIE (Since 7/1/10)
SNF	5	600 beds	Georgia	Lease	$38.8M	10-yr lease	Closed 7-30-10
SNF	3	269 beds	Georgia	Lease	$18.4M	10-yr lease (combined with the above)	Closed 9-2-10
SNF	2	304 beds	Alabama	Purchase	$19.5M	Long-term fixed rate loan, USDA- backed	Closed 10-1-10
SNF	2	299 beds	Atlanta, GA	Lease	$20.8M	12-yr lease with renewal option	Closed 11-2-10
SNF	1	106 beds	Sylva, NC	Purchase	$8.0M	Long-term fixed rate loan (USDA- backed)	Closed 12-31-10
SNF	3	329 beds	Atlanta & Dublin, GA	Purchase	$18.0M	Long-term fixed rate loan (USDA, SBA- backed and bank loans)	Closed two 5-1-2011; Closed third on 6-1-2011
SNF	5	314 beds	Oklahoma	CVIE	$12.7M	Long-term loan (SBA- backed)	Currently a CVIE (since 8-1-11)
SNF	5	482 beds	Arkansas & Missouri	Purchase (four) and Lease (one)	$27.5M	Long-term fixed rate loan (USDA- backed and bank loans), one 36 month lease	Closed purchases 9-8-11; closed lease 11-1-11
ALF & SNF	2	128 beds	Mountain View, AR	Purchase	$5.4M	Long-term loan (USDA- backed bank loan)	Closed 12-2-11
ALF & SNF	2	179 beds	Springfield, OH	Purchase	$12.0M	30-year, fixed-rated, tax- exempt bond issuance, and bank loan	Closed 12-30-11
SNF	3	434 beds	Arkansas	Purchase	$15.9M	Bank loan	Closed 3-30-12
SNF	1	77 beds	Arkansas	Purchase	$3.3M	Bank loan	Closed 4-30-12
SNF	1	134 beds	Glennville, GA	Purchase	$6.4M	Long-term bank loan (USDA-backed)	Closed 7-2-12
SNF	1	109 beds	Oklahoma City, OK	Purchase	$4.1M	Long-term bank loan (SBA-backed)	Closed 7-3-12
SNF (Pending)	1	121 beds	Tulsa, OK	Purchase	$6.2M	Bank loan	Closing Expected Q3-12
SNF (Pending)	1	96 beds	Sumter, SC	Purchase	$6.7M	SBA regular bank loan	Closing Expected Q3-12
SNF (Pending)	5	456 beds	Oklahoma	Purchase	$13.2M	Long-term bank loan (SBA-backed)	Closing Expected Q3/Q4 2012
Total Closed	40	3,940			$215.4M
Total Pending	7	673			$26.1M
Grand Total	47	4,613			$241.5M

¹ Annualized Revenue Run-rate (ARR) is estimated based on the most recent financial statement provided at the time of signing the purchase or lease agreement. ARR for facilities held at least 12 months is based on most recent quarter. Actual results may vary considerably.

About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE MKT: ADK) is a recognized innovator in senior living and health care facility management. AdCare owns and manages long-term care facilities and retirement communities, and since the company's inception in 1988, its mission has been to provide the highest quality of healthcare services to the elderly, including a broad range of skilled nursing and sub-acute care services. For more information about AdCare, visit www.adcarehealth.com.

Important Cautions Regarding Forward-Looking Statements
Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of federal law. Such statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "plans," "intends," "anticipates" and variations of such words or similar expressions, but their absence does not mean that the statement is not forward-looking. Statements in this announcement that are forward-looking include, but are not limited to, statements made by Mr. Gentry that the company expects better results, and statements by Mr. Brogdon that the company continues to expect its new facilities and those pending acquisitions to improve the company's overall EBITDAR margin, as well as other statements regarding the signing and closing of expected acquisitions, and the company's expected annualized run-rate. Such forward-looking statements reflect management's beliefs and assumptions and are based upon information currently available to management and involve known and unknown risks, results, performance or achievements of AdCare, which may differ materially from those expressed or implied in such statements. Such factors are identified in the public filings made by AdCare with the Securities and Exchange Commission and include, among others, AdCare's ability to secure lines of credit and/or an acquisition credit facility, find suitable acquisition properties at favorable terms, changes in the health care industry because of political and economic influences, changes in regulations governing the health care industry, changes in reimbursement levels including those under the Medicare and Medicaid programs and changes in the competitive marketplace. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements. Except where required by law, AdCare undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.

In addition, each facility mentioned in this press release is operated by a separate, wholly owned, independent operating subsidiary that has its own management, employees and assets.

References to the consolidated company and its assets and activities, as well as the use of terms such as "we," "us," "our," and similar verbiage, is not meant to imply that AdCare Health Systems, Inc. has direct operating assets, employees or revenue or that any of the facilities, the home health business or other related businesses are operated by the same entity.

Use of Non-GAAP Financial Information
Beginning with the reporting of results for the first quarter of 2011, the company began to report the measures of Adjusted EBITDA from continuing operations and Adjusted EBITDAR from continuing operations. These are measures of operating performance that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The company defines: (i) Adjusted EBITDA as net income (loss) from continuing operations before interest expense, income tax expense; depreciation and amortization (including amortization of non-cash stock-based compensation), acquisition costs (net of gains), loss on extinguishment of debt, derivative loss, other income from recovery of receivable, and retirement and salary continuation costs; and (ii) Adjusted EBITDAR from continuing operations as net income (loss) from continuing operations before interest expense; income tax expense, depreciation and amortization (including amortization of non-cash stock-based compensation), acquisition costs (net of gains), loss on extinguishment of debt, derivative loss; other income from recovery of receivable, retirement and salary continuation costs and rent cost.

Adjusted EBITDA from continuing operations and Adjusted EBITDAR from continuing operations should not be considered in isolation or as a substitute for net income, income from operations or cash flows provided by, or used in, operations as determined in accordance with GAAP. The metrics are key measures of AdCare Health Systems' operating performance used by management to focus on operating performance and management without mixing in items of income and expense that relate to the financing and capitalization of the business, fixed rent or lease payments of facilities, derivative loss, and certain acquisition related charges.

The company believes these measures are useful to investors in evaluating the company's performance, results of operations and financial position for the following reasons:

• They are helpful in identifying trends in the company's day-to-day performance because the items excluded have little or no significance to the company's day-to-day operations;
• They provide an assessment of controllable expenses and afford management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieve optimal financial performance; and
• They are an indication to determine whether or not adjustments to current spending decisions are needed.

AdCare believes that the use of the measures provides a meaningful and consistent comparison of the company's underlying business between periods by eliminating certain items required by GAAP, which have little or no significance in the company's day-to-day operations.

ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in 000s, except per share data)
(Unaudited)
			Three Months Ended								Six Months Ended
			June 30,								June 30,
			2012				2011				2012				2011
Revenues:
	Patient care revenues		$	54,642			$	33,872			$	104,450			$	64,404
	Management revenues			363				484				726				982
Total revenues				55,005				34,356				105,176			$	65,386
Expenses:
	Cost of services (exclusive of facility rent, depreciation and amortization)			42,227				27,104				82,350				52,279
	General and administrative expenses			4,929				3,167				8,860				6,091
	Facility rent expense			2,050				1,947				4,115				3,850
	Depreciation and amortization			1,761				705				3,258				1,352
	Salary retirement and continuation costs			-				622				-				622
Total expenses				50,967				33,545				98,583				64,194
Income from Operations				4,038				811				6,593				1,192
Other Income (Expense):
	Interest expense, net			(3,366	)			(1,852	)			(6,320	)			(3,288	)
	Derivative gain (loss)			353				(2,588	)			763				(3,938	)
	Loss on extinguishment of debt			-				(77	)			-				(77	)
	Acquisition costs, net of gains			(524	)			(622	)			(817	)			357
	Other income (expense)			(13	)			(19	)			(29	)			587
Total other income (expense), net				(3,550	)			(5,158	)			(6,403	)			(6,359	)
Income (Loss) from Continuing Operations Before Income Taxes				488				(4,347	)			190				(5,167	)
Income tax expense				(45	)			(124	)			(99	)			(210	)
Income (loss) from Continuing Operations				443				(4,471	)			91				(5,377	)
Loss from discontinued operations, net of tax				(160	)			(91	)			(269	)			(126	)
Net Income (loss)				283				(4,562	)			(178	)			(5,503	)
Net Loss Attributable to Noncontrolling Interests				396				165				651				341
Net Income (Loss) Attributable to AdCare Health Systems, Inc.			$	679			$	(4,397	)		$	473			$	(5,162	)
Net Income (Loss) per Common Share - Basic:
	Continuing Operations		$	0.06			$	(0.49	)		$	0.06			$	(0.58	)
	Discontinued Operations			(0.01	)			(0.01	)			(0.02	)			(0.01	)
			$	0.05			$	(0.50	)		$	0.04			$	(0.59	)
Net Income (Loss) per Common Share -Diluted:
	Continuing Operations		$	0.06			$	(0.49	)		$	0.06			$	(0.58	)
	Discontinued Operations			(0.01	)			(0.01	)			(0.02	)			(0.01	)
			$	0.05			$	(0.50	)		$	0.04			$	(0.59	)

ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in 000s)
(UNAUDITED)
								June 30,				December 31,
ASSETS								2012				2011
Current Assets:
	Cash and cash equivalents							$	9,373			$	7,364
	Restricted cash and cash equivalents								3,624				1,883
	Accounts receivable, net								26,964				18,759
	Prepaid expenses and other								668				663
	Assets of disposal group held for sale								38				47
						Total Current Assets			40,667				28,716
Restricted cash and investments									5,812				4,870
Property and equipment, net									147,093				105,143
Intangible assets - bed licenses									2,464				1,189
Intangible assets - lease rights, net									7,925				8,460
Goodwill									906				906
Escrow deposits for acquisitions									1,513				3,172
Lease deposits									1,725				1,685
Deferred loan costs, net									5,733				4,818
Other assets									71				122
						Total Assets		$	213,909			$	159,081
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
			Current portion of notes payable and other debt					$	9,401			$	4,567
			Revolving credit facilities and lines of credit						1,900				7,343
			Accounts payable						16,601				12,075
			Accrued expenses						11,424				9,858
			Liabilities of disposal group held for sale						143				240
					Total current liabilities				39,469				34,083
Notes payable and other debt, net of current portion:
		Senior debt, net of discounts							116,603				87,771
		Convertible debt, net of discounts							15,035				14,614
		Revolving credit facilities							7,064				1,308
		Other debt							12,880				1,400
Derivative liability									1,127				1,889
Other liabilities									1,729				2,437
Deferred tax liability									87				86
				Total liabilities					193,994				143,588
Stockholders' equity:
		Preferred stock, no par value; 1,000 shares authorized; no shares issued or outstanding							-				-
		Common stock and additional paid-in capital, no par value; 29,000 shares authorized; 13,697 and 12,193 shares issued and outstanding							39,647				35,047
		Accumulated deficit							(18,240	)			(18,713	)
			Total stockholders' equity						21,407				16,334
Noncontrolling interest in subsidiaries									(1,492	)			(841	)
		Total equity							19,915				15,493
		Total liabilities and stockholders' equity						$	213,909			$	159,081

ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
TRAILING FIVE QUARTERS
(UNAUDITED)
			For the Three Months Ended
(Amounts in 000's)			6/30/2011				9/30/2011				12/31/2011				3/31/2012				6/30/2012
Revenues:
	Patient care revenues		$	33,872			$	40,192			$	45,137			$	49,808			$	54,642
	Management revenue			484				330				307				363				363
Total revenues				34,356				40,522				45,444				50,171				55,005
Expenses:
	Cost of services			27,104				32,637				37,303				40,123				42,227
	General and administrative			3,167				3,267				3,922				3,931				4,929
	Facility rent expense			1,947				1,938				2,008				2,065				2,050
	Depreciation and amortization			705				836				1,749				1,497				1,761
	Salary retirement and continuation costs			622				-				830				-				-
Total expenses				33,545				38,678				45,812				47,616				50,967
Income (Loss) from Operations				811				1,844				(368	)			2,555				4,038
Other Income (Expense):
	Interest expense, net			(1,852	)			(2,223	)			(2,688	)			(2,954	)			(3,366	)
	Loss on extinguishment of debt			(77	)			(58	)			(5	)			-				-
	Derivative gain (loss)			(2,588	)			4,745				151				410				353
	Acquisition costs, net of gains			(622	)			(1,147	)			(373	)			(293	)			(524	)
	Other income (expense)			(19	)			(19	)			(17	)			(16	)			(13	)
Total other income (expense), net				(5,158	)			1,298				(2,932	)			(2,853	)			(3,550	)
Income (Loss) from Continuing Operations
Before Income Taxes				(4,347	)			3,142				(3,300	)			(298	)			488
Income tax benefit (expense)				(124	)			(204	)			151				(54	)			(45	)
Income (Loss) from Continuing Operations				(4,471	)			2,938				(3,149	)			(352	)			443
Loss from discontinued operations, net of tax				(91	)			(158	)			(1,679	)			(109	)			(160	)
Net Income (Loss)				(4,562	)			2,780				(4,828	)			(461	)			283
Net Loss Attributable to Noncontrolling Interest				165				748				298				255				396
Net Income (Loss) Attributable to AdCare Health Systems, Inc.			$	(4,397	)		$	3,528			$	(4,530	)		$	(206	)		$	679

ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA AND ADJUSTED EBITDAR FROM CONTINUING OPERATIONS
(Amounts in 000s)
(Unaudited)
			For the Three Months Ended
(Amounts in 000's)			6/30/2011				9/30/2011				12/31/2011				3/31/2012				6/30/2012
Net Income (Loss)			$	(4,562	)		$	2,780			$	(4,828	)		$	(461	)		$	283
	Impact of discontinued operations			91				158				1,679				109				160
Net Income (Loss) from continuing operations				(4,471	)			2,938				(3,149	)			(352	)			443
	Interest expense, net			1,852				2,223				2,688				2,954				3,366
	Income tax (benefit) expense			124				204				(151	)			54				45
	Amortization of stock based compensation			167				184				277				165				182
	Depreciation and amortization			705				836				1,749				1,497				1,761
	Acquisition costs, net of gains			622				1,147				373				293				524
	Loss on extinguishment of debt			77				58				5				-				-
	Derivative (gain) loss			2,588				(4,745	)			(151	)			(410	)			(353	)
	Salary retirement and continuation costs			622				-				830				-				-
Adjusted EBITDA from continuing operations				2,286				2,845				2,471				4,201				5,968
	Facility rent expense			1,947				1,938				2,008				2,065				2,050
Adjusted EBITDAR from continuing operations			$	4,233			$	4,783			$	4,479			$	6,266			$	8,018

ADCARE HEALTH SYSTEMS, INC. AND SUBSIDIARIES
SUPPLEMENTARY SCHEDULES
(Unaudited)
"Same Facilities" results represent those owned and leased facilities we began to operate prior to July 1, 2011.
"Recently Acquired Facilities" results represents those owned and leased facilities we began to operate subsequent to July 1, 2011.
				2011									2012						Six Months YTD
End of Period Data				Q2			Q3			Q4			Q1			Q2			6/30/11			6/30/12
Number of Facilities
SNF
	Owned				8			12			13			14			18
	Leased				11			11			12			12			12
	VIE				0			5			5			5			5
	Managed				4			4			3			3			3
ALF
	Owned				6			6			7			8			8
	VIE				1			1			1			1			1
	Managed				0			0			0			0			0
IL
	Managed				1			1			1			1			1
Total					31			40			42			44			48
Number of Operational Beds
SNF
	Owned				839			1,241			1,337			1,436			1,947
	Leased				1,262			1,262			1,342			1,342			1,342
	VIE				0			314			314			314			314
	Managed				379			379			329			329			329
ALF
	Owned				196			196			228			308			308
	VIE				104			104			104			104			104
	Managed				0			0			0			0			0
IL
		Managed			83			83			83			83			83
Total					2,863			3,579			3,737			3,916			4,427
SNF + ALF % Owned					47.4	%		59.5	%		59.6	%		61.7	%		66.6	%
SNF + ALF % Leased					52.6	%		40.5	%		40.4	%		38.3	%		33.4	%
Revenue Mix % (a)
	Skilled (c)				32.4	%		30.8	%		29.9	%		31.0	%		29.4	%		32.7	%		30.2	%
	Medicaid				55.9	%		56.7	%		56.9	%		54.8	%		55.6	%		55.5	%		55.2	%
Private + Other					11.7	%		12.5	%		13.2	%		14.2	%		15.0	%		11.8	%		14.6	%
Patient Days (a)
	Skilled (c)				22,443			24,723			29,543			32,633			34,005			43,884			66,638
	Medicaid				117,401			146,203			164,723			167,486			182,087			223,191			349,573
	Private + Other				14,788			20,782			25,807			28,075			31,264			26,063			59,339
Total					154,632			191,708			220,073			228,194			247,356			293,138			475,550
Patient Day Mix % (a)
	Skilled (c)				14.5	%		12.9	%		13.4	%		14.3	%		13.7	%		15.0	%		14.0	%
	Medicaid				75.9	%		76.3	%		74.8	%		73.4	%		73.5	%		76.1	%		73.5	%
	Private + Other				9.6	%		10.8	%		11.8	%		12.3	%		12.7	%		8.9	%		12.5	%
Revenue Rates Per Patient Day (a)
	Skilled (c)			$	454.32		$	469.60		$	430.64		$	442.03		$	443.46		$	444.57		$	442.76
	Medicaid			$	149.71		$	146.44		$	146.99		$	152.21		$	156.33		$	148.44		$	154.35
	Private + Other			$	195.20		$	172.90		$	167.20		$	171.85		$	170.56		$	203.29		$	171.17
Weighted Average Total				$	203.46		$	196.80		$	193.34		$	203.97		$	207.11		$	203.50		$	207.11
Average Daily Census (a)
	Skilled (c)				264			304			330			359			378			273			387
	Medicaid				1,382			1,798			1,841			1,841			2,020			1,386			2,028
	Private + Other				174			256			291			309			350			162			344
Total Average Daily Census					1,821			2,357			2,459			2,508			2,748			1,821			2,759
Occupancy (a)					86.7	%		85.4	%		82.5	%		81.1	%		76.5	%		86.8	%		78.7	%
(000s)
Total Revenues (b)				$	34,356		$	40,522		$	45,444		$	50,171		$	55,006		$	65,386		$	105,176
Adjusted EBITDAR (b)				$	4,230		$	4,783		$	4,480		$	6,266		$	8,018		$	7,531		$	14,284
Adjusted EBITDA (b)				$	2,283		$	2,846		$	2,472		$	4,201		$	5,968		$	3,681		$	10,169
(a) Skilled Nursing Only - Excludes Managed Facilities
(b) AdCare Consolidated Incorporating Discontinued Operations
(c) Skilled is defined as Medicare A + Managed Care RUGS