(Mark One)
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|
[ x ]
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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|
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For the fiscal year ended December 31, 2018
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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|
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For the transition period from _____________ to _____________
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Maryland
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62-1470956
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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222 Robert Rose Drive, Murfreesboro, Tennessee
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37129
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(Address of principal executive offices)
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(Zip Code)
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(615) 890-9100
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(Registrant’s telephone number, including area code)
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Title of each Class
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Name of each exchange on which registered
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Common stock, $.01 par value
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New York Stock Exchange
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Large accelerated filer [ x ]
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Accelerated filer [ ]
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Non-accelerated filer [ ]
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Smaller reporting company [ ]
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(Do not check if a smaller reporting company)
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EXHIBIT INDEX
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||
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Exhibit No.
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Description
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Page No. or Location
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23.2
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Filed Herewith
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31.1
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Filed Herewith
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31.2
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Filed Herewith
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32
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Filed Herewith
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99.1
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Filed Herewith
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NATIONAL HEALTH INVESTORS, INC.
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By:
/s/Roger R. Hopkins
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Roger R. Hopkins
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Chief Accounting Officer
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Date: February 25, 2019
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(Principal Financial Officer)
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1.
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I have reviewed this Amendment No. 1 on Form 10-K/A of the registrant, National Health Investors, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a.
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b.
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b.
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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1.
|
I have reviewed this Amendment No. 1 on Form 10-K/A of the registrant, National Health Investors, Inc.;
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2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions) :
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a.
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b.
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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(a)
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(b)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer.
|
Financial Statements:
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Page
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||
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|
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|
Independent Auditor’s Report
|
|
2
|
|
|
|
|
|
|
|
Consolidated Balance Sheets
|
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3 - 4
|
|
|
|
|
|
|
|
Consolidated Statements of Operations
|
|
5
|
|
|
|
|
|
|
|
Consolidated Statements of Changes in Members’ Deficit
|
|
6
|
|
|
|
|
|
|
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Consolidated Statements of Cash Flows
|
|
7 - 8
|
|
|
|
|
|
|
|
Notes to Consolidated Financial Statements
|
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9 - 24
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|
|
|
|
|
|
|
|
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|
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SENIOR LIVING COMMUNITIES, LLC AND SUBSIDIARIES
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|||||||||||
Consolidated Balance Sheets
|
|||||||||||
December 31, 2018 and 2017
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|||||||||||
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||||
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||||
ASSETS
|
|||||||||||
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||||
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|
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2018
|
|
2017
|
||||
Current Assets
|
|
|
|
||||||||
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Cash
|
|
|
$
|
2,594,361
|
|
|
$
|
3,113,789
|
|
|
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Restricted Cash
|
3,453,283
|
|
|
55,000
|
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|||||
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Occupancy Fee Deposits in Escrow
|
2,012,490
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|
|
2,369,451
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|||||
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Accounts Receivable, Net
|
2,628,958
|
|
|
2,838,067
|
|
|||||
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Accounts Receivable - Other
|
381,678
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|
|
845,553
|
|
|||||
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Current Portion of Deferred Commissions
|
2,145,953
|
|
|
—
|
|
|||||
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Prepaid Expenses and Other Current Assets
|
943,438
|
|
|
1,121,226
|
|
|||||
|
|
|
Total Current Assets
|
14,160,161
|
|
|
10,343,086
|
|
|||
|
|
|
|
|
|
|
|
||||
Property and Equipment
|
|
|
|
||||||||
|
Construction and Renovations in Progress
|
344,580
|
|
|
424,985
|
|
|||||
|
Leasehold Improvements
|
41,946,620
|
|
|
35,786,608
|
|
|||||
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Site Improvements
|
307,725
|
|
|
231,236
|
|
|||||
|
Furniture, Fixtures and Equipment
|
1,672,399
|
|
|
1,367,061
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|||||
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Automobiles and Golf Carts
|
2,494,130
|
|
|
2,651,324
|
|
|||||
|
|
Total Property and Equipment
|
46,765,454
|
|
|
40,461,214
|
|
||||
|
|
Less Accumulated Depreciation
|
(9,826,050
|
)
|
|
(6,373,856
|
)
|
||||
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|
|
Property and Equipment, Net
|
36,939,404
|
|
|
34,087,358
|
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|||
|
|
|
|
|
|
|
|
||||
Other Assets
|
|
|
|
|
|||||||
|
Utility Deposits
|
19,755
|
|
|
19,755
|
|
|||||
|
Deferred Commissions, Net
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4,368,260
|
|
|
—
|
|
|||||
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Lease Deposit
|
10,500,000
|
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|
10,500,000
|
|
|||||
|
Goodwill
|
|
83,975,668
|
|
|
83,975,668
|
|
||||
|
|
|
Total Other Assets
|
98,863,683
|
|
|
94,495,423
|
|
|||
|
|
|
|
|
|
|
|
||||
|
|
TOTAL ASSETS
|
$
|
149,963,248
|
|
|
$
|
138,925,867
|
|
||
|
|
|
|
|
|
|
|
SENIOR LIVING COMMUNITIES, LLC AND SUBSIDIARIES
|
|||||||
Consolidated Balance Sheets (Continued)
|
|||||||
December 31, 2018 and 2017
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND MEMBERS' DEFICIT
|
|
|
|
|
|
2018
|
|
2017
|
||||
Current Liabilities
|
|
|
|
||||||||
|
Accounts Payable
|
$
|
7,591,466
|
|
|
$
|
3,393,811
|
|
|||
|
Accounts Payable - Related Parties
|
—
|
|
|
16,643
|
|
|||||
|
Monthly Service Fees Received in Advance
|
1,144,434
|
|
|
1,796,195
|
|
|||||
|
Accrued Expenses
|
10,439,403
|
|
|
9,003,738
|
|
|||||
|
Resident Deposits
|
608,335
|
|
|
756,463
|
|
|||||
|
Current Portion of Deferred Revenues
|
10,799,765
|
|
|
10,574,089
|
|
|||||
|
Current Portion of Notes Payable
|
186,227
|
|
|
204,644
|
|
|||||
|
Current Portion of Notes Payable - Related Parties
|
—
|
|
|
—
|
|
|||||
|
|
Total Current Liabilities
|
30,769,630
|
|
|
25,745,583
|
|
||||
|
|
|
|
|
|
|
|
||||
Long-Term Liabilities
|
|
|
|
||||||||
|
Straight-Line Rent Payable - NHI
|
29,172,910
|
|
|
23,368,105
|
|
|||||
|
Line of Credit from NHI
|
1,900,461
|
|
|
616,476
|
|
|||||
|
Notes Payable, Net of Current Portion
|
358,663
|
|
|
408,172
|
|
|||||
|
Note Payable - Related Parties, Net of Current Portion
|
675,000
|
|
|
675,000
|
|
|||||
|
Deposits on Occupancy Agreements
|
3,636,146
|
|
|
6,298,766
|
|
|||||
|
Refundable Occupancy Fees
|
295,491,389
|
|
|
284,686,396
|
|
|||||
|
Deferred Revenues, Net of Current Portion
|
7,673,799
|
|
|
6,991,571
|
|
|||||
|
Distributions Payable
|
3,333,333
|
|
|
3,333,333
|
|
|||||
|
|
Total Long-Term Liabilities
|
342,241,701
|
|
|
326,377,819
|
|
||||
|
|
|
|
|
|
|
|
||||
|
|
Total Liabilities
|
373,011,331
|
|
|
352,123,402
|
|
||||
|
|
|
|
|
|
|
|
||||
Members' Deficit
|
(223,048,083
|
)
|
|
(213,197,535
|
)
|
||||||
|
|
|
|
|
|
|
|
||||
|
|
TOTAL LIABILITIES AND
|
|
|
|
||||||
|
|
|
MEMBERS' DEFICIT
|
$
|
149,963,248
|
|
|
$
|
138,925,867
|
|
SENIOR LIVING COMMUNITIES, LLC AND SUBSIDIARIES
|
||||||||||||||
Consolidated Statements of Operations
|
||||||||||||||
For the Years Ended December 31, 2018, 2017 and 2016
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues
|
|
|
|
|
|
|||||||||
|
Service Fees
|
$
|
113,675,780
|
|
|
$
|
111,730,132
|
|
|
$
|
93,753,373
|
|
||
|
Occupancy Fees Earned
|
14,910,424
|
|
|
13,006,419
|
|
|
10,981,394
|
|
|||||
|
Ancillary Income
|
1,420,991
|
|
|
1,389,094
|
|
|
1,278,555
|
|
|||||
|
|
Revenues, Net
|
130,007,195
|
|
|
126,125,645
|
|
|
106,013,322
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
Expenses
|
|
|
|
|
|
|
||||||||
|
Operating Expenses
|
84,943,643
|
|
|
83,987,981
|
|
|
68,418,573
|
|
|||||
|
General and Administrative Expenses
|
11,070,590
|
|
|
12,128,253
|
|
|
10,749,057
|
|
|||||
|
Lease Expense
|
46,237,345
|
|
|
45,853,184
|
|
|
40,469,826
|
|
|||||
|
Depreciation and Amortization
|
3,909,085
|
|
|
2,918,535
|
|
|
1,801,977
|
|
|||||
|
|
Total Operating Expenses
|
146,160,663
|
|
|
144,887,953
|
|
|
121,439,433
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
Loss from Operations
|
(16,153,468
|
)
|
|
(18,762,308
|
)
|
|
(15,426,111
|
)
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Other Income (Expense)
|
|
|
|
|
|
|||||||||
|
Interest Income
|
83,732
|
|
|
67,362
|
|
|
59,814
|
|
|||||
|
Interest Expense
|
(257,939
|
)
|
|
(433,634
|
)
|
|
(780,788
|
)
|
|||||
|
Gain on Sale of Assets
|
2,115
|
|
|
35,450
|
|
|
21,629
|
|
|||||
|
Other Income
|
—
|
|
|
—
|
|
|
20,958
|
|
|||||
|
Other Expense
|
(48,551
|
)
|
|
(269,748
|
)
|
|
(211,999
|
)
|
|||||
|
|
Other Income (Expense), Net
|
(220,643
|
)
|
|
(600,570
|
)
|
|
(890,386
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||
Net Loss
|
|
$
|
(16,374,111
|
)
|
|
$
|
(19,362,878
|
)
|
|
$
|
(16,316,497
|
)
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
SENIOR LIVING COMMUNITIES, LLC AND SUBSIDIARIES
|
|||||||||||
Consolidated Statements of Changes in Members' Deficit
|
|||||||||||
For the Years Ended December 31, 2018, 2017 and 2016
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
Balance at January 1, 2016
|
|
|
|
|
$
|
(177,328,160
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||
|
Net Loss
|
|
|
|
|
|
(16,316,497
|
)
|
|||
|
Distributions to Members Paid or Accrued
|
|
|
|
|
(190,000
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||
Balance at December 31, 2016
|
|
|
|
|
(193,834,657
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||
|
Net Loss
|
|
|
|
|
|
(19,362,878
|
)
|
|||
|
|
|
|
|
|
|
|
|
|
||
Balance at December 31, 2017
|
|
|
|
|
(213,197,535
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||
|
Cumulative Effect of Change in Accounting Principle
|
|
|
|
|
6,523,563
|
|
||||
|
Net Loss
|
|
|
|
|
|
(16,374,111
|
)
|
|||
|
|
|
|
|
|
|
|
|
|
||
Balance at December 31, 2018
|
|
|
|
|
$
|
(223,048,083
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
SENIOR LIVING COMMUNITIES, LLC AND SUBSIDIARIES
|
||||||||||||||
Consolidated Statements of Cash Flows
|
||||||||||||||
For the Years Ended December 31, 2018, 2017 and 2016
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash Flows from Operating Activities
|
|
|
|
|
|
|||||||||
Net Loss
|
$
|
(16,374,111
|
)
|
|
$
|
(19,362,878
|
)
|
|
$
|
(16,316,497
|
)
|
|||
Adjustments to reconcile net loss
|
|
|
|
|
|
|||||||||
to net cash provided by (used in) operations:
|
|
|
|
|
|
|||||||||
|
Depreciation and Amortization Expense
|
6,791,721
|
|
|
2,918,535
|
|
|
1,801,977
|
|
|||||
|
Amortization of Occupancy Fees
|
(14,910,424
|
)
|
|
(13,006,419
|
)
|
|
(10,981,394
|
)
|
|||||
|
Provision for Bad Debt Expense
|
509,954
|
|
|
303,672
|
|
|
257,520
|
|
|||||
|
Gain on Sale of Assets
|
(2,115
|
)
|
|
(35,450
|
)
|
|
(21,629
|
)
|
|||||
|
Expenses Paid Using Line of Credit
|
838,260
|
|
|
105,196
|
|
|
111,174
|
|
|||||
(Increase) Decrease in:
|
|
|
|
|
|
|||||||||
|
Accounts Receivable
|
(300,845
|
)
|
|
(774,959
|
)
|
|
(592,865
|
)
|
|||||
|
Accounts Receivable - Related Parties
|
—
|
|
|
—
|
|
|
126,917
|
|
|||||
|
Accounts Receivable - Other
|
463,875
|
|
|
(730,222
|
)
|
|
(50,483
|
)
|
|||||
|
Deferred Commissions
|
(2,873,285
|
)
|
|
—
|
|
|
—
|
|
|||||
|
Prepaid Expenses and Other Current Assets
|
177,788
|
|
|
(345,038
|
)
|
|
489,392
|
|
|||||
|
Lease Deposits
|
—
|
|
|
(450,000
|
)
|
|
(50,000
|
)
|
|||||
Increase (Decrease) in:
|
|
|
|
|
|
|||||||||
|
Accounts Payable
|
4,197,654
|
|
|
706,909
|
|
|
(721,650
|
)
|
|||||
|
Accounts Payable - Related Parties
|
(16,643
|
)
|
|
12,143
|
|
|
—
|
|
|||||
|
Monthly Service Fees Received in Advance
|
(651,761
|
)
|
|
(212,041
|
)
|
|
105,579
|
|
|||||
|
Accrued Expenses
|
1,435,665
|
|
|
(1,124,916
|
)
|
|
880,138
|
|
|||||
|
Straight-Line Rent Payable - NHI
|
5,804,805
|
|
|
7,102,293
|
|
|
7,506,145
|
|
|||||
|
Resident Deposits
|
(148,128
|
)
|
|
(522,141
|
)
|
|
(95,367
|
)
|
|||||
|
Deposits on Occupancy Agreements
|
(2,662,620
|
)
|
|
17,739
|
|
|
(1,993,202
|
)
|
|||||
|
|
Net Cash Used In Operating Activities
|
(17,720,210
|
)
|
|
(25,397,577
|
)
|
|
(19,544,245
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||
Cash Flows from Investing Activities
|
|
|
|
|
|
|||||||||
Additions to Property and Equipment
|
(6,586,162
|
)
|
|
(7,067,360
|
)
|
|
(13,769,650
|
)
|
||||||
Cash Advances to Related Parties
|
11,365,734
|
|
|
(821,041
|
)
|
|
457,548
|
|
||||||
Repayment of Cash Advances by Related Parties
|
(11,365,734
|
)
|
|
821,041
|
|
|
(457,548
|
)
|
||||||
Reimbursements Received from NHI
|
—
|
|
|
550,870
|
|
|
—
|
|
||||||
Net Proceeds from Sale of Assets
|
2,115
|
|
|
54,635
|
|
|
21,629
|
|
||||||
|
Net Cash Used in Investing Activities
|
(6,584,047
|
)
|
|
(6,461,855
|
)
|
|
(13,748,021
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
Legacy GAAP
|
|
|
Impact of 606
|
|
||
Deferred Commissions
|
$
|
9,396,849
|
|
$
|
—
|
|
|
$
|
9,396,849
|
|
Accumulated Amortization of Deferred Commissions
|
(
|
2,882,636
|
)
|
|
—
|
|
|
(
|
2,882,636
|
)
|
Deferred Commissions, Net
|
$
|
6,514,213
|
|
$
|
—
|
|
|
$
|
6,514,213
|
|
|
|
As Reported
|
|
Legacy GAAP
|
|
Impact of 606
|
|
||
Operating Expenses
|
$
|
84,943,642
|
|
$
|
84,845,709
|
|
($
|
97,333
|
)
|
Loss from Operations
|
(
|
16,153,467
|
)
|
(
|
16,055,534
|
)
|
(
|
97,333
|
)
|
Net Loss
|
(
|
16,374,110
|
)
|
(
|
16,276,177
|
)
|
(
|
97,333
|
)
|
|
|
|
2018
|
|
2017
|
||||
Cash
|
|
$
|
2,594,361
|
|
|
$
|
3,113,789
|
|
|
Occupancy Fee Deposits in Escrow
|
|
|
2,012,490
|
|
|
|
2,369,451
|
|
|
Property Tax Account - Restricted Cash
|
|
|
3,296,994
|
|
|
|
—
|
|
|
Health Care Claims Account - Restricted Cash
|
|
|
156,289
|
|
|
|
55,000
|
|
|
|
Total Cash and Restricted Cash as shown in the Statements of Cash Flows
|
|
$
|
8,060,134
|
|
|
$
|
5,538,240
|
|
NOTE I - NOTES PAYABLE
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||
The following are the amounts outstanding as of December 31:
|
|
|||||||||||
|
|
|
|
2018
|
|
|
2017
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||
|
A note payable to a financing company, monthly payments of $956, including interest imputed at 0.62%, all outstanding principal and interest due August 1, 2018, secured by a vehicle.
|
|
$
|
—
|
|
|
|
$
|
16,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
A note payable to a financing company, monthly payments of $1,116, including interest imputed at 10.8%, all outstanding principal and interest due November 1, 2018, secured by a vehicle.
|
|
|
—
|
|
|
|
|
12,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Notes payable to a financing company, monthly payments of $3,058, including interest at 5.7%, all outstanding principal and interest due February 19, 2019, secured by vehicles.
|
|
|
6,072
|
|
|
|
|
42,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
A note payable to a bank, monthly payments of $1,226, including interest at 3.8%, all outstanding principal and interest due April 30, 2020, secured by a vehicle.
|
|
|
19,101
|
|
|
|
|
32,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
A note payable to a bank, monthly payments of $929, including interest at 4.65%, all outstanding principal and interest due February 12, 2021, secured by a vehicle.
|
|
|
22,934
|
|
|
|
|
32,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
A note payable to a bank, monthly payments of $438, including interest at 4.65%, all outstanding principal and accrued interest due February 12, 2021, secured by a vehicle.
|
|
|
10,809
|
|
|
|
|
15,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
An unsecured note payable to a related party, interest to accrue at the One Month LIBOR Index Rate plus 1% per annum, all outstanding principal and accrued interest due January 31, 2020.
|
|
|
675,000
|
|
|
|
|
675,000
|
|
|
|
|
A note payable to a financing company, monthly payments of $10,888, including interest at 4.51%, all outstanding principal and interest due October 30, 2021, secured by vehicles.
|
|
|
346,876
|
|
|
|
|
460,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
A note payable to a bank, monthly payments of $1,763, including interest at 4.20%, all outstanding principal and interest due November 13, 2022, secured by vehicles.
|
|
|
139,098
|
|
|
|
|
—
|
|
|
|
|
|
Total
|
|
|
1,219,890
|
|
|
|
|
1,287,816
|
|
|
|
|
Less amounts due within one year
|
|
(
|
186,227
|
|
)
|
|
(
|
204,644
|
|
)
|
|
|
Long-term notes payable
|
|
$
|
1,033,663
|
|
|
|
$
|
1,083,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ending
|
|
|
|
|
December 31
|
|
Amount
|
||
2019
|
|
$
|
186,227
|
|
2020
|
|
|
853,360
|
|
2021
|
|
|
145,647
|
|
2022
|
|
|
34,656
|
|
2023
|
|
|
—
|
|
Thereafter
|
|
|
—
|
|
Total
|
|
$
|
1,219,890
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||
Service Fees:
|
|
|
|
|
|
|
|
|
||
|
Independent Living
|
$
|
58,401,304
|
|
$
|
54,403,808
|
|
$
|
42,624,974
|
|
|
Assisted Living
|
|
18,298,647
|
|
|
19,035,772
|
|
|
17,505,682
|
|
|
Memory Care
|
|
6,895,461
|
|
|
8,037,573
|
|
|
8,036,634
|
|
|
Skilled Nursing
|
|
29,613,110
|
|
|
29,784,638
|
|
|
25,586,083
|
|
|
Other
|
|
467,258
|
|
|
468,341
|
|
|
—
|
|
|
Total Service Fees
|
|
113,675,780
|
|
|
111,730,132
|
|
|
93,753,373
|
|
Nonrefundable Occupancy Fees Earned
|
|
14,910,424
|
|
|
13,006,419
|
|
|
10,981,394
|
|
|
Ancillary Income
|
|
1,420,991
|
|
|
1,389,094
|
|
|
1,278,555
|
|
|
|
Total Revenues
|
$
|
130,007,195
|
|
$
|
126,125,645
|
|
$
|
106,013,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
||||
Contract Assets:
|
|
|
|
|
|
|||
|
Receivables, which are included in Accounts Receivable, Net
|
$
|
2,628,958
|
|
|
$
|
2,838,067
|
|
|
Deferred Commissions, Net
|
|
6,514,213
|
|
|
|
—
|
|
Contract Liabilities:
|
|
|
|
|
|
|||
|
Monthly Service Fees Received in Advance
|
|
1,144,434
|
|
|
|
1,796,195
|
|
|
Resident Deposits
|
|
608,335
|
|
|
|
756,463
|
|
|
Deposits on Occupancy Agreements
|
|
3,636,146
|
|
|
|
6,298,766
|
|
|
Refundable Occupancy Fees due currently,
|
|
|
|
|
|
||
|
which are included in Accrued Expenses
|
|
4,164,610
|
|
|
|
3,258,995
|
|
|
Refundable Occupancy Fees not currently due
|
|
295,491,389
|
|
|
|
284,686,396
|
|
|
Deferred Revenue, Current Portion
|
|
10,799,765
|
|
|
|
10,574,089
|
|
|
Deferred Revenue expected to be recognized subsequent to
December 31 of the following year
|
|
7,673,799
|
|
|
|
6,991,571
|
|
Year Ending
|
|
|
|
December 31
|
|
Amount
|
|
2019
|
|
$
|
12,508,204
|
2020
|
|
|
10,340,918
|
2021
|
|
|
7,791,774
|
2022
|
|
|
4,810,771
|
2023
|
|
|
1,330,940
|
Total
|
|
$
|
36,782,607
|
Year Ending
|
|
|
|
December 31
|
|
Amount
|
|
2019
|
|
$
|
41,996,808
|
2020
|
|
|
43,258,712
|
2021
|
|
|
44,554,413
|
2022
|
|
|
45,891,047
|
2023
|
|
|
47,267,777
|
Thereafter
|
|
|
314,889,783
|
Total
|
|
$
|
537,858,540
|
Year Ending
|
|
|
|
|
December 31
|
|
Amount
|
||
2019
|
|
$
|
41,112
|
|
2020
|
|
|
—
|
|
2021
|
|
|
—
|
|
2022
|
|
|
—
|
|
2023
|
|
|
—
|
|
Thereafter
|
|
|
—
|
|
Total
|
|
$
|
41,112
|
|
|
|
|
|
Related Party
|
How Related
|
Donald O. Thompson, Jr. and
|
|
Brenda U. Thompson
|
Senior Living Communities, LLC members
|
|
|
David Jackson, Jr.
|
Senior Living Communities, LLC member through December 31, 2014
|
|
|
Maxwell Group, Inc.
|
Owned and controlled by Donald O. Thompson, Jr.
|
|
|
Live Long Well Care, LLC
|
David Jackson, Jr. LLC member through December 31, 2014
|
|
Donald O. Thompson, Jr. and Brenda U. Thompson - LLC members
|
|
|
Charlotte Assisted Living, LLC
|
Donald O. Thompson, Jr. and Brenda U. Thompson - LLC members
|
|
|
Stratford Retirement, LLC
|
Donald O. Thompson, Jr. and Brenda U. Thompson - LLC members
|
|
|
Wellmore, LLC
|
Donald O. Thompson, Jr. and Brenda U. Thompson - LLC members
|
|
|
WDI Parent, LLC
|
Donald O. Thompson, Jr. and Brenda U. Thompson - LLC members
|
|
|
Wellmore of Tega Cay, LLC
|
Subsidiary of Wellmore, LLC
|
|
|
Wellmore of Lexington, LLC
|
Subsidiary of Wellmore, LLC
|
|
|
Wellmore of Daniel Island, LLC
|
Subsidiary of WDI Parent, LLC
|