Quarterly Compliance Certificate

Transcription

1 Quarterly Compliance Certificate February 8, 208 To: Bond Trustee and other stakeholders Re: Interim Financial Statement as of December, 207 ) Unrestricted Cash & Days Cash on Hand calculation of the Obligated Group should not be less than 60 days. Unrestricted cash and investments were estimated to be 6,09,78 and Days Cash on Hand were estimated to be 2 at December, ) Debt Service Coverage Ratio of the Obligated Group, calculated at the end of each Fiscal Year, should not be less than.20. Our Debt Service Coverage Ratio was estimated to be.8 at December, 207. I hereby certify that, to the best knowledge of the signer and subject to year-end adjustments, the Obligated Members are not in default in the performance of any covenant contained in this Indenture for the period ending December, 207. Please review the attached report for verification of these statements. Valley Vista Care Corporation Obligated Group -.-- /ft/) By L~ Terri A. Capshaw, its Director of Finance 820 Elm St. I St. Maries, Idaho valleyvista.org

2 CONTINUING DISCLOSURE AND COVENANT COMPLIANCE CERTIFICATE (Quarterly) Idaho Health Facilities Authority Revenue and Revenue Refunding Bonds (Valley Vista Care Corporation Project) Series 207 A&B Liquidity Covenant (Reported at the end of the Second and Fourth Quarters Only) a Cash and Li uid Investments of the Cor oration Cash and Cash Equivalents Liquid Investment Balances (includes Board Restricted Funds) 4,500,294.00,609, (a) Cash and Liquid Investments of the Corporation 6,09,78.00 (b) Daily Expenses Total Operating Expenses () 4,658,06.00 Number of Days in the Fiscal Year to Date 92 (b) Daily Expense 50,60.8 Days Cash on Hand (a)/(b) 2 Days Cash on Hand Requirement 60 Over (under) required covenant 6 () Total Operating Expenses excludes depreciation, amortization, and any other non-cash expenses. B. c. () (2) () (4) (5) (6) ~ Attachments Management prepared financial statements, including statement of operations, cash flows and combined balance sheet. Occupancy information of all facilities by level of care as of the end of each fiscal quarter. Officer's Certificate stating that the Borrower is in compliance with all terms, provisions and conditions of the Regulatory Agreement and the Loan Agreement, or if not, specify all such defaults and the nature thereof. Calculation of Debt Service Coverage Ratio each quarter; Calculation of Days Cash on Hand for the second and last fiscal quarters of each year. A copy of the annual budget summary no later than 45 days after the end of each fiscal year. Statement of Corporation Representative I hereby certify that the enclosed interim financial statements are true and were prepared in accordance with GAAP. (subjecttoy~ us7r~ [signed by Director of Finance of Valley Vista] [Due Date: No later than 45 days after the end of every fiscal quarter, beginning December, 207] Covenant Compliance-Quarterly

3 CONTINUING DISCLOSURE AND COVENANT COMPLIANCE CERTIFICATE (Quarterly) Idaho Health Facilities Authority Revenue and Revenue Refunding Bonds (Valley Vista Care Corporation Project) Series 207 A&B To: Re: Ziegler Bondholders with~ 500,000 or upon request EMMA Fiscal Period Ended 2//207 A. Financial Ratio Calculations Debt Service Coverage Ratio Calculation (Reported at the end of each Quarter) (a) Income Available for Debt Service Excess of Revenue over Expenses of the Corporation PLUS Interest Expense PLUS Depreciation and Amortization LESS Gain/{Loss} on Extinguishment of Indebtedness LESS Gain/{Loss} on Extraordinary Disposition of Capital Assets LESS Unrealized Gains/(Losses) on Investment* LESS Change in Valuation of Hedging Instrument* LESS Other Non-Cash Income* (460, 58.00) 2,4.00 7, , (5,88.00) {a} Income Available for Debt Service 99.00x b Annual Debt Service 286, {a} I {b} Debt Service Coverage Ratio Minimum Required Debt Service Coverage Ratio Over {under} required ratio * All "Less" amounts should be entered as a negative number.8x.20x Covenant Compliance-Quarterly

4 Valley Vista Care Comparative Statement of Net Assets December, 207 ASSETS Valley Vista Obligated Group Valley Vista Care Corporation Vista Community Housing Corp Foundation 2//207 9/0/207 Incr (Decr) 2//207 9/0/207 Incr (Decr) 2//207 9/0/207 Incr (Decr) 2//207 9/0/207 Incr (Decr) 2 Current Assets Cash & cash equivalents 4,500,294,67,75,2,98 4,44,804,29,048,2,755 58,490 8,27 20,6 0,8 5,852 (5,54) 4 S-T Investments less cash equivalent,609,487,605,24 4,25,609,487,605,24 4, ,92 0,779 2,4 5 Accounts Receivable, net,570,990 2,026,48 (455,58),60,77 2,055,0 (454,5) (0,87) (28,982) (,206) 6 Inventories 82,26 82,26-82,26 82, Prepaid expenses 52,49 27,027 94,465 52,49 27,027 94, Total Current Assets 8,284,588 7,008,0,276,278 8,256,286 6,998,965,257,2 28,0 9,45 8,957 44,24 7,6 6,609 9 Assets limited as to use 0 Bond Improvement Fund 4,79,689-4,79,689 4,79,689-4,79, Bond Cost of Issuance,95 -,95,95 -, Bond Interest 7,90 256,755 (8,566) 7,90 256,755 (8,566) Bond Principal 2,750 2,9 (209,44) 2,750 2,9 (209,44) Bond Debt Reserve Fund,6,8,066,589 96,549,6,8,066,589 96, Restricted Cash - Resident Trust 65,209 65,209-65,209 65, Total Assets limited as to use 6,48,70,62,744 4,526,626 6,48,70,62,744 4,526, Property and Equipment 9,76,97 9,4,92 5,059 7,858,079 7,827,7 0,962,8,892,4,795 4,097 8 Less accumulated depreciation (0,069,755) (9,896,745) (7,00) (9,47,28) (9,09,05) (62,077) (598,626) (587,694) (0,9) 9 Net Property & Equipment 9,07,26 9,245,67 (7,95) 8,86,950 8,58,066 (,5) 720, ,0 (6,85) 20 Other Assets 2 Other Intangible, less accum amort Total Other Assets Total Assets 2,540,75 7,875,22 5,664,95 22,79,606 7,8,775 5,652,8 748,568 76,446 2,22 44,24 7,6 6,609 Balance Sheet-Assets Page

5 Valley Vista Care Comparative Statement of Net Assets December, 207 Valley Vista Obligated Group Valley Vista Care Corporation Vista Community Housing Corp Foundation 2//207 9/0/207 Incr (Decr) 2//207 9/0/207 Incr (Decr) 2//207 9/0/207 Incr (Decr) 2//207 9/0/207 Incr (Decr) 24 LIABILITIES & NET ASSETS 25 Currents Liabilities 26 Accounts payable,27,795,446,02 (228,27),22,58,444,24 (2,725) 5,277,789, Medicaid payable Accrued interest 6,052 29,97 (75,98), ,55 (77,457) 4,55 2,66,59 29 Current maturities of LT debt 55,824 55, ,62 299,62-56,662 56,662-0 Total Current Liabilities,689,67 2,09,827 (404,55),62,577 2,02,760 (409,82) 66,094 6,067 5,027 Resident Trust Fund Liability 65,209 65,209-65,209 65, Bond income-monitized deferred 285,58 29,546 (5,96) 285,58 29,546 (5,96) LT debt, less current maturities 7,599,94 2,845,98 4,75,996 7,0,88 2,566,594 4,764, ,56 278,604 (0,248) 4 less unamortized debt issuance costs (555,26) (445,488) (09,772) (554,52) (444,564) (09,959) (77) (924) 87 5 Bond premium, net 57,26 22,524 4,692 57,26 22,524 4, Net Long-term Liabilities 7,40,50 2,422,24 4,978,96 7,,5 2,44,554 4,988, ,69 277,680 (0,06) 7 Deferred revenue,679,669 2,55,556,4,679,669 2,55,556, Net Assets 2,48,892 2,879,050 (460,58) 2,004,07 2,48,52 (477,5) 44,855 97,699 7,57 44,24 7,6 6,609 9 Total Liabilities and Net Assets 2,540,75 7,875,22 5,664,95 22,79,606 7,8,775 5,652,8 748,568 76,446 2,22 44,24 7,6 6, Current Ratio indicates degree of liquidity: a higher number indicates good cashflow. 4 Debt to Total Assets Ratio indicates degree of solvency: a lower number indicates assets are financed with equity rather than debt. 42 LT Debt to Net Assets Ratio determines ability to incur add'l debt: a lower number indicates favorable lending conditions. a higher number indicates newer acquisitions. Balance Sheet-Liab & Net Assets Page 2

6 Valley Vista Care Statement of Operations For the Three Months Ended December, 207 Valley Vista Obligated Group Budget Valley Vista Care Corp Vista Community Housing 2 REVENUE Private 67, % 57,57.6% 46, % 4 less Charitable Assistance (9,25) -0.9% (9,25) -0.9% 0.00% 5 * Medicaid,692, %,692,0 75.% 0.00% 6 Medicare 46, % 46, % 0.00% 7 Other 2, % 2, % 0.00% 8 Total operating revenue 4,960, % 4,962, % 4,94, % 46, % Revenue variance (2,98) -0.06% 9 EXPENSES 0 Administrative 580,86.70% 596, % 577,506.75% 2, % Maintenance 49,447.0% 48,7.00% 42, % 7, % 2 Dietary 72, % 80, % 72, % 0.00% Housekeeping 85,52.72% 86,75.75% 85,52.74% 0.00% 4 Laundry 57,684.6% 6,26.24% 57,684.7% 0.00% 5 * Patient care 2,9,496 4.%,986, % 2,9, % 0.00% 6 Behavior management 642, % 68,09.72% 642,894.08% 0.00% 7 Therapy 289, % 282, % 289, % 0.00% 8 Social services 26,92 0.5% 0, % 26,92 0.5% 0.00% 9 Resident activities 8,0 2.8% 75,69.5% 8,0 2.40% 0.00% 20 Transportation 28, %,50 0.6% 28, % 0.00% 2 Medical records 42, % 47, 0.95% 42, % 0.00% 22 Bad debt 2, % 0, % 2, % 0.00% 2 Utilities, %, % 08, % 5,85.27% 24 Property tax & insurance, % 9,50 0.9% 0,09 0.2%,550.7% 25 Depreciation 7,00.49% 76,872.56% 62,077.0% 0,9 2.76% 26 Total expenses 4,8, % 4,76, % 4,806, % 27, % Expense variance 7, % 27 Operating Income 26, % 246, % 07, % 8,6 9.48% 28 OTHER INCOME (EXPENSE) 29 Contributions, %, %, % 0.00% 0 Interest & dividend income 6, % 8,75 0.6% 6,074 0.% % Interest & debt issuance expense (offset w/ Monetized Bond Income) (2,4) -4.0% (20,287) -4.24% (209,705) -4.27% (,707) -8.06% 2 Rental income (expense) 8, % 0, 0.20% 5, % 2, % Penalties % % % 0.00% 4 Realized gain (loss) on asset sale (disposal) % % % 0.00% 5 Realized gain (loss) on investments 4, % 8,75 0.6% 4, % 0.00% 6 Unrealized gain (loss) market adj 5,88 0.2% % 5,88 0.2% 0.00% 7 Retroactive adjustments % % % 0.00% 8 Total other income (expense) (67,57) -.7% (8,874) -6.8% (66,52) -.9% (,005) -2.8% 9 Net Increase (Decrease) before Extraordinary (4,264) 64,884 (58,42) 7,57 40 EXTRAORDINARY INCOME (EXPENSE) 4 Extinguish debt - w/o 2007 Bond issuance costs (48,894) -8.45% (04,72) -2.% (48,894) -8.52% % 42 INCREASE (DECREASE) IN NET REVENUES (460,58) -9.28% (9,89) -0.80% (477,5) -9.7% 7, % 4 * Medicaid Rate Recovery included in Net Assets above: UPL Revenue : 66,422 P-Tax Expense: 75,782 Net Impact : 485,640 Net Revenues Page

7 Reconcilliation of change in net assets to net cash provided (used) by operating activities: Valley Vista Obligated Group Combined Statement of Cash Flows December, 207 Increase (Decrease) in Cash As of December, As of September 0, Change in unrestricted net assets (460,58) (52,94) Adjustments to reconcile change in unrestricted net assets to cash provided (used) by operating activities: 4 Depreciation 7,00 726,779 5 Amortization of bond premium and debt issuance costs 224,920 22,49 6 Deferred credits,556,4 (0,9) 7 Deferred revenue (5,96) (2,850) 8 Unrealized market adj (5,88) (55,727) 9 Loss (gain) on asset disposal - 2,59 0 (Increase) decrease in: Accounts receivable 455,58 7,456 2 Inventories - 8,77 Prepaid expenses (94,465) 5,58 4 Increase (decrease) in: 5 Accounts payable and accrued expense (404,55) 85,426 6 Net cash provided (used) by operating activities,9,022 65,225 7 Cash flows from operating activities 8 Cash received from residents and other services 5,45,46 9,28,64 9 Cash paid to suppliers and employees (4,4,809) (7,868,47) 20 Interest received 20,6 0,2 2 Interest paid (incl semi-annual bond payment) (,570) (80,600) 22 Rental income & expense, net 8,570 4,700 2 Contributions,055 0,59 24 Net cash provided (used) by operating activities,9,022 65, Cash flows from investing activities 26 Proceeds from sale of property and equipment Net purchase of investments,585 (6,509) 28 Purchases of property and equipment (5,059) (284,090) 29 (Increase) decrease in assets whose use is limited (4,526,626) (9,940) 0 Net cash provided (used) by investing activities (4,560,00) (0,59) Cash flows from financing activities 2 Principal payments on long-term debt (7,69) (42,240) Proceeds from long-term debt 4,79,689-4 Net cash provided (used) by investing activities 4,75,996 (42,240) 5 Net increase (decrease) in cash,2,98 (9,554) 6 Cash and cash equivalents, beginning of period,67,74,86,928 7 Cash and cash equivalents, end of period 4,500,29,67,74 Cash Flow Page 4

8 Valley Vista Obligated Group Financial Ratios as of 2//207 9/0/207 9/0/206 9/0/205 9/0/204 Long Term Debt Service Coverage 2 Increase (decrease) in unrestricted funds (460,58) (52,94) 57,669 5,56 299,526 Add: Unrealized market adj loss 69,654 4 Subtract: Unrealized market adj gain (5,88) (55,727) (8,295) (9,596) 5 Add: 6 Depreciation expense 7,00 726, ,8 75, , 7 Extinguish debt - w/o 2007 Bond issuance costs 48,894 8 Interest & debt issuance expense 2,4 807, , ,05 840,982 9 Income Available for Debt Service - - 9,9,426,6,984,25 2,20,267,778,24 0 Actual Debt Service Principal/Interest pmts + Trustee fees 286,524,68,840,87,9,89,00,90,072 Long-Term Debt Service Coverage Required.20 Days Cash on Hand 4 Daily operating expense 50,6 48,67 46,207 44,96 44,288 5 Cash - excl investments 4,500,294,67,75,86,929 2,87,490,552,986 6 Days Cash on Hand Required 60 days - Bond Cash - incl investments 6,09,78 4,772,60 4,699,928,64,742,552,986 8 Days Cash on Hand Required 60 days - Bond Long-term debt service ratio measures total debt service coverage (interest plus principal) against annual funds available to pay debt service. The ratio does not take into account positive or negative cash flow associated with balance sheet changes but rather uses net income as a benchmark. Higher values indicate better debt repayment ability. Days cash on hand measures the number of days of average cash expenses that are retained in cash or cash equivalents. It is a measure of total liquidity, both short-term and long-term. An increasing trend is a positive indicator. Long-term Debt Service Coverage Ratio and the number of Days Cash on Hand measurements are lending covenants. Actual unrestricted cash as of 2//207 4,500,294 Minimum # of days of unrestricted cash 60 expense/day =,07,849 Excess (Shortage) of unrestricted cash,462,445 Desired # of days of unrestricted cash 75 expense/day =,797, Excess (Shortage) of unrestricted cash 702,98 Ratios Page 5

9 Valley Vista Obligated Group Net Revenue Summary - All Locations For the Three Months Ended December, 207 YTD BUDGET VARIANCE FY208 PRIOR YTD FY207 FY206 FY205 FY204 ST MARIES 2 REVENUE 2,47,278 2,42,040 (75,762) -% 2,76,52 2,296,826 2,58,067,985,244 OPERATING EXPENSE 2,60,87 2,5,576 25,297 % 2,06,69,87,98,840,5,784,88 4 PROPERTY COSTS* 666,094 44,0 2,984 94% 224,282 27,04 222,98 20,808 5 NET REVENUES (479,689) (56,646) (42,04) 6,08 87,894 94,57 (0,82) *2007 Bond Fees written off NOV7 48,894 6 SANDPOINT 7 REVENUE 2,245,0 2,8,567 26,56 6% 2,09,50 2,08,22 2,02,86,847,56 8 OPERATING EXPENSE,966,80,908,00 58,50 %,897,56,788,654,792,9,70,497 9 PROPERTY COSTS 45,886 5,76 (5,877) -4% 44,70 9,759 6,905 44,796 0 NET REVENUES 2,87 58,504 7,88 49,45 52,799 94,76 (7,97) RUPERT 2 REVENUE 20, ,287 (22,05) -0% 20, ,840 7,062 7,428 OPERATING EXPENSE 208,670 90,29 8,77 0% 99,08 76,640 70,80 62,97 4 PROPERTY COSTS 24,226 20,548,678 8% 24,220 24,42 25,407 25,469 5 NET REVENUES (0,94),446 (44,60) (20,27),768 (24,725) (5,04) 6 LOST RIVER 7 REVENUE 26,05 226,86 9,242 4% 87,82 96,84 27,656 27,6 8 OPERATING EXPENSE 242,708 25,547 27,6 % 22,56 204,8 99,425 9,70 9 PROPERTY COSTS 75,9 66,46 8,878 % 76,069 77,48 77,984 79, NET REVENUES (8,942) (55,44) (26,798) (0,04) (85,47) (59,75) (5,45) 2 ALL LOCATIONS 22 REVENUE 5,00,468 4,992,758 7,70 % 4,858,472 4,779,062 4,570,646 4,22,69 2 OPERATING EXPENSE 4,579,08 4,449,76 29,65 % 4,,989 4,04,95 4,002,5,849, PROPERTY COSTS 9, ,88 28,664 56% 469,28 478,5 46, , NET REVENUES (460,58) (9,89) (420,9) 55, ,4 04,858 (86,478) Summary Net Revenues - All Page 6

10 Valley Vista Care Corporation Census Occupancy YTD As of December, 207 Units Monthly # Actual Monthly % YTD # Actual YTD % Monthly Average YTD Average YTD % Budget Budget % Patient Actual Patient Actual Patient Patient Average Patient Budget Days Occupancy Days Occupancy Days Days Occupancy Days Occupancy St. Maries NH 74 0.% 2.8% 85.0% 2.2% 2% 0% 2 Private % % Private - Behavior Insurance Insurance - Behavior Medicaid 70 2, Medicaid - Behavior 89 2, Medicare Medicare - Behavior Total,892 82% 5,75 84% % 64 86% 85% 4 Private YTD Average % by Pay Source 2 Medicare Medicaid 4 Insurance Sandpoint NH 7 6.% 0% 9.0% 6% 74.6% 0.2% 9% 2 Private % 5 Private - Behavior VA & Insurance - Behavior VA & Insurance Medicaid , Medicaid - Behavior 94 2, Medicare Medicare - Behavior % 4 20 Total,895 84% 5,752 86% % 64 88% Private 2 Medicare Medicaid 4 VA, Ins 2 SM Cottage Care 2 22 Total % 85 74% % 2 96% 2 SM Apartments 9 24 Total %,68 78% % 6 82% 25 Rupert 29 NHs ACTUAL 8% 6% 80% 6% 26 Private 7 2, NHs BUDGET 5% 6% 80% 8% 27 Other - Duplex VARIANCE 2.7% -0.4% -0.7% -.6% 28 Total % 2,09 87% % 25 86% 29 Antelope 5 0 Total 87 77% 2,482 77% % 28 80% Private 2 Medicare Medicaid 4 VA, Ins Census - Occupancy Page 7