Skilled nursing operator Diversicare Healthcare Services (Nasdaq: DVCR) on Thursday reported net income of $400,000 in the fourth quarter of 2018 — and a major decline in average length of stay from 2017 to last year.
“Year over year, our admissions remained relatively flat, but average length of stay decreased by 17.9 days, resulting in a decline in skilled mix from 14.7% in the year ago quarter to 14.1% in the fourth quarter of 2018,” president and CEO Jay McKnight said in the Form 8-K filed with the Securities and Exchange Commission. “We continue to explore other service options and opportunities within our business, including the analysis of our current portfolio and our overall operating platform.”
Diversicare received a delisting warning from the Nasdaq exchange late in December after the Brentwood, Tenn.-based operator’s total market cap dropped below the required $35 million total. The company, which provides care in 72 skilled nursing facilities and centers with 8,214 licensed beds, has until June 17 to regain compliance.
Diversicare reported a net loss for the year 2018 of $7.39 million, compared with a net loss of $4.83 million in 2017. The company also eliminated their dividend, according to a Form 10-K filed with the SEC Thursday.
The operator announced the sale of three facilities in Kentucky this past November, and in the third quarter, Diversicare recorded a net loss of $7.4 million, or $1.15 per share — mainly attributable to a $6.4 million litigation contingency expense related to an open Department of Justice investigation into possible violations of the False Claims Act.
Diveriscare’s stock fell $0.08 or 2.16% in Thursday’s trading, prior to the release of the fourth quarter earnings report, to close at $3.62.