Selectis Health Announces 3rd Quarter 2020 Results


Niwot, Colorado., Dec. 31, 2020 (GLOBE NEWSWIRE) -- Global Healthcare REIT, Inc. (Currently in a rebranding effort to Selectis Health, Inc.) (OTC: GBCS) ("Selectis" or the "Company") is pleased to announce financial results for the third quarter ended September 30, 2020.

THIRD QUARTER 2020 HIGHLIGHTS

  • Record revenue for the third quarter of $6,320,161 (2019 $1,989,103) a growth rate of 218% year-over -year and up 23% from the previous quarter;
  • Net Income of $459,177 for the second quarter (2019 $176,582) a growth rate of 160% year-over -year;
  • Earnings Per Share for the second quarter of $.02 per share basic and diluted;
  • Net increase in Cash of $1,486,290 to a cash balance of $4,755,441 including restricted cash for the third quarter;
  • Court approved operations transfer agreement to the Company’s wholly owned subsidiary Global Eastman, LLC as the operator of the Dodge Eastman facility;
  • Entered into definitive agreement to acquire the 29 licensed bed skilled nursing facility in Fairlands, Oklahoma;
  • Company received a line of credit of $500,000 and a construction loan of $750,000 to be used for renovation and capital investment in its Edwards facility from Southern Bank. Both loans carry an interest rate of 4.75% on principal balance;
  • On August 18, 2020, the Company’s Board of Directors approved the repurchase for redemption of 443,431 shares of common stock for $75,385 or $0.17 per share in a privately negotiated transaction. The redemption has been completed and the shares of common stock cancelled.

Lance Baller, President and CEO, said, "During the third quarter, we were able to complete a number of actions all to the benefit of the Company: we completed the operations transfer of our Eastman facility out of receivership; this is a strong property that will become a great facility for the community, and for our bottom line. The previous operator had not been paying taxes nor rent, and we were able to secure the facility and its operations at a significant discount. The Company was please it was able to negotiate in a private transaction the repurchase of shares during the quarter and at a respectable price. After being 9 months behind on financials, we are currently up to date on all SEC filings of our quarterly reports. We look forward to the completion of the corporate rebranding effort and filing our annual report. We will continue to build out the management team in the coming months to ensure our managed growth. Unfortunately, similar to others in our industry, Covid-19 was a factor during the quarter, specifically at our Tulsa facilities which resulted in a lower than anticipated impact to our census and bottom line. We had a higher-than-normal amount of write offs of bad receivables from the transfer of operations in 2019. On the whole, we are very pleased with the new direction the company is moving towards, and I look forward to 2021 and the improvements we are beginning to deploy.”

SUMMARY OF THIRD QUARTER RESULTS

GLOBAL HEALTHCARE REIT, INC.
CONSOLIDATED BALANCE SHEETS

  September 30, 2020  December 31, 2019 
  (Unaudited)    
ASSETS        
Property and Equipment, Net $37,617,777  $36,394,587 
Cash and Cash Equivalents  4,316,683   641,215 
Restricted Cash  438,758   351,298 
Accounts Receivable, Net  1,903,579   1,188,100 
Investments in Debt Securities  24,387   24,387 
Intangible Assets  -   15,258 
Goodwill  1,076,908   379,479 
Prepaid Expenses and Other  682,200   883,839 
Total Assets $46,060,292  $39,878,163 
         
LIABILITIES AND EQUITY        
Liabilities        
Debt, Net of discount of $428,835 and $493,353, respectively $39,334,439  $36,954,184 
Debt – Related Parties, Net of discount of $4,213 and $0, respectively  1,120,787   1,025,000 
Accounts Payable and Accrued Liabilities  3,403,398   1,241,573 
Accounts Payable – Related Parties  9,900   32,156 
Dividends Payable  7,500   7,500 
Lease Security Deposit  250,000   251,100 
Total Liabilities  44,126,024   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, 26,971,094 and 27,441,040 Shares Issued and Outstanding at September 30, 2020 and December 31, 2019, respectively  1,348,554   1,372,052 
Additional Paid-In Capital  10,344,542   10,385,417 
Accumulated Deficit  (10,333,388)  (11,962,220)
Total Global Healthcare REIT, Inc. Stockholders’ Equity  2,135,708   571,249 
Noncontrolling Interests  (201,440)  (204,599)
Total Equity  1,934,268   366,650 
Total Liabilities and Equity $46,060,292  $39,878,163 

See accompanying notes to unaudited consolidated financial statements.

3

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

  Nine Months Ended  Three Months Ended 
  September 30,  September 30, 
  2020  2019  2020  2019 
             
Revenue                
Rental Revenue $1,628,904  $2,789,220  $484,299  $963,645 
Healthcare Revenue  13,673,323   2,089,386   5,835,862   1,025,458 
Total Revenue  15,302,227   4,878,606   6,320,161   1,989,103 
Expenses                
General and Administrative  1,723,153   891,031   1,007,383   320,195 
Property Taxes, Insurance and Other Operating  8,757,802   1,596,835   3,771,827   703,816 
Provision for (Recovery of) Debts  229,799   -   (34,091)  - 
Acquisition Costs  209,946   6,771   181,292   6,771 
Depreciation and Amortization  1,174,899   969,834   406,796   323,983 
Total Expenses  12,095,599   3,464,471   5,333,207   1,354,765 
Income from Operations  3,206,628   1,414,135   986,954   634,338 
Other (Income) Expense                
Gain on Warrant Liability  -   (2,785)  -   (27)
Gain on Extinguishment of Debt  (80,400)  -   -   - 
Gain on Sale of Investments  -   (1,069)  -   - 
Gain on Proceeds from Insurance Claim  -   (324,018)  -   (53,754)
Interest Income  (465)  (26,248)  (465)  (19,245)
Interest Expense  1,633,002   1,595,363   516,431   524,503 
Total Other (Income) Expense  1,552,137   1,241,243   515,966   451,477 
Net Income  1,654,491   172,892   470,988   182,861 
Net (Income) Loss Attributable to Noncontrolling Interests  (3,159)  7,231   (4,311)  1,221 
Net Income Attributable to Global Healthcare REIT, Inc.  1,651,332   180,123   466,677   184,082 
Series D Preferred Dividends  (22,500)  (22,500)  (7,500)  (7,500)
Net Income Attributable to Common Stockholders $1,628,832  $157,623  $459,177  $176,582 
Per Share Data:                
Net Income per Share Attributable to Common Stockholders:                
Basic $0.06  $0.01  $0.02  $0.01 
Diluted $0.06  $0.01  $0.02  $0.01 
Weighted Average Common Shares Outstanding:                
Basic  27,352,220   27,228,919   27,202,449   27,438,076 
Diluted  27,726,628   27,228,919   27,202,449   27,438,076 

For Further Information Contact:
Brandon Thall
investors@selectis.com