ANNUAL LOC COMPLIANCE CERTIFICATE ABHOW California Group. Series 2010 Bonds

Transcription

1 ANNUAL LOC COMPLIANCE CERTIFICATE ABHOW California Group Series 2010 Bonds To: cc: LOC Banks Ziegler Capital Markets Group (Dan Hermann & Mary Munoz) Trustee Re: ABHOW Fiscal Quarter Ended December 2011 A. Financial Ratio Calculations Net Income Available for 1 Debt Service Coverage Ratio (ABHOW Only) GAAP net income (current and prior 3 calendar quarters) $ 4,288,075 PLUS depreciation and amortization $ 15,458,910 PLUS interest expense $ 5,875,671 PLUS net cash entrance fees received $ 16,890,560 PLUS non cash write offs $ LESS amortization of entrance fees $ (15,802,331) PLUS change in accrual for worker's compensation $ 309,281 LESS reduction in unrealized loss on interest rate swaps $ 493,211 PLUS change in accrual for claims $ 368,456 (a) Total Net Income Available for Debt Service (sum) $ 27,881,833 Actual Annual Debt Service Aggregate actual principal and interest payments on bonds $ 8,280,673 PLUS scheduled principal & interest payments on any Foundation debt, cap. leases or deferred asset purchases $ 8,280,673 (b) Actual Annual Debt Service (sum) $ 8,280,673 (a)/(b) Debt Service Coverage Ratio 3.37 Debt Service Coverage Ratio Based on MADS of $11,408, Minimum Required Debt Service Coverage Ratio 1.50x Page 1 of 4

2 ANNUAL LOC COMPLIANCE CERTIFICATE 2 Liquidity Covenant (ABHOW and Foundation) (a) Total cash of ABHOW and Foundation $ 5,119,804 (b) PLUS the market value of all readily marketable securities $ 153,931,776 (a)+(b) = (c) Total cash and marketable securities ABHOW and Foundation $ 159,051,580 (d) LESS the cash value of restricted securities and trusteeheld funds $ (65,367,004) (e) LESS collateral value for standby letters of credit $ (4,703,282) (f) LESS collateral value for short term debt (working capital advances) $ (g) LESS payables > 60 days old that exceed 90% of all payables $ (h) LESS payables > 75 days old that exceed 8% of all payables $ (i) LESS payables > 90 days old that exceed 2% of all payables $ (78,850) (j) = (c) Total Unrestricted Cash and Investments as defined $ 88,902,444 sum (d):(i) Operating Expenses Operating Expenses of ABHOW (Audited FY 2011) $ 108,063,517 PLUS Interest $ 5,876,653 (k) ABHOW Operating Expenses $ 113,940,170 (k) / 365 = (l) Daily Cash Expenditures $ 312,165 (j) / (l) = (m) Days Cash on Hand 285 (n) Minimum Days Cash on Hand Ratio 150 (m) (n) Over (under) required Days Cash on Hand 135 Page 2 of 4

3 ANNUAL LOC COMPLIANCE CERTIFICATE 3 Liquidity Covenant (ABHOW Only) (a) Total cash of ABHOW $ 4,889,767 (b) PLUS the market value of all readily marketable securities $ 113,357,633 (a)+(b) = (c) Total cash and marketable securities ABHOW $ 118,247,399 (d) LESS the cash value of restricted securities and trusteeheld funds $ (54,877,259) (e) LESS collateral value for standby letters of credit $ (f) LESS collateral value for short term debt (working capital advances) $ (g) LESS payables > 60 days old that exceed 90% of all payables $ (h) LESS payables > 75 days old that exceed 8% of all payables $ (i) LESS payables > 90 days old that exceed 2% of all payables $ (78,850) (k) = (c) Total Unrestricted Cash and Investments as defined $ 63,291,290 sum (d):(j) Operating Expenses Operating Expenses of ABHOW (Audited FY 2011) $ 108,063,517 PLUS Interest $ 5,876,653 (l) ABHOW Operating Expenses $ 113,940,170 (l) / 365 = (m) Daily Cash Expenditures $ 312,165 (k) / (m) = (n) Days Cash on Hand 203 (o) Minimum Days Cash on Hand Ratio From September 30, 2004 and thereafter 30 Days (n) (o) Over (under) required Days Cash on Hand 173 Page 3 of 4

4 B. Attachments ANNUAL LOC COMPLIANCE CERTIFICATE (1) Unaudited Financial Statements of ABHOW, Foundation and Combined Affiliates for the fiscal quarter (2) Occupancy Report as of the last business day of the fiscal quarter by unit type and type of care C. Statement of Authorized Obligor Representative I hereby certify that the enclosed statements are true and were prepared in accordance with GAAP (subject to yearend adjustments); that the above financial covenant calculations are accurate and true to the best of my knowledge; that the insurance requirements are being met according to the terms of the reimbursement agreement, and the bank is named as payee; to the best of my knowledge, no default or event of default has occurred, and all representations and warranties in the reimbursement agreement remain accurate. [signed by President or CFO of ABHOW] [Due Date: No later than 45 days after the end of each Fiscal Quarter] Page 4 of 4

5 ANNUAL BONDHOLDER COMPLIANCE CERTIFICATE ABHOW California Group Series 2006 and 2010 Bonds To: EMMA Bondholders with > $500,000 or on request B. C. Ziegler and Company (Dan Hermann & Mary Munoz) Ziegler Research cc: Trustee Re: ABHOW Fiscal Year Ended September 2011 A. Financial Ratio Calculations Net Income Available for Debt Service* 1 Debt Service Coverage Ratio (ABHOW Only) GAAP net income (current and prior 3 calendar quarters) $ 6,614,736 PLUS depreciation and amortization $ 15,362,388 PLUS interest expense $ 5,876,653 PLUS net cash entrance fees received $ 17,825,426 PLUS non cash write offs $ LESS amortization of entrance fees $ (16,666,641) PLUS increase in accrual for worker's compensation $ 394,000 PLUS increase in unrealized loss on interest rate swaps $ 527,122 LESS decrease in accrual for claims $ (113,141) (a) Total Net Income Available for Debt Service (sum) $ 29,820,543 Actual Annual Debt Aggregate scheduled principal and interest payments on bonds $ 8,251,657 PLUS scheduled principal & interest payments on any Foundation debt, cap. $ (b) Actual Annual Debt Service (sum) $ 8,251,657 (a)/(b) Debt Service Coverage Ratio 3.61 Debt Service Coverage Ratio Based on MADS of $11,408,719 ` 2.61 Minimum Required Debt Service Coverage Ratio 1.30x * Note excluded items: gain/loss on debt extinguishment or asset dispositions; restricted donations; insurance proceeds; extraordinary noncash items. Page 1 of 4

6 ANNUAL BONDHOLDER COMPLIANCE CERTIFICATE 2 Liquidity Covenant (ABHOW and Foundation) (a) Total cash of ABHOW and Foundation $ 8,168,967 (b) PLUS the market value of all readily marketable securities $ 154,094,214 (a)+(b) = (c) Total cash and marketable securities ABHOW and Foundation $ 162,263,181 (d) LESS the cash value of restricted securities and trusteeheld funds $ (68,657,002) (e) LESS collateral value for standby letters of credit $ (4,686,802) (f) LESS collateral value for short term debt (working capital advances) $ (g) LESS payables > 60 days old that exceed 90% of all payables $ (h) LESS payables > 75 days old that exceed 8% of all payables $ (i) LESS payables > 90 days old that exceed 2% of all payables $ (j) = (c) Total Unrestricted Cash and Investments as defined $ 88,919,377 Operating Expenses Operating Expenses of ABHOW (Unaudited FY 2011) $ 108,049,517 PLUS Interest $ 5,876,653 (k) ABHOW Operating Expenses $ 113,926,170 (k) / 365 = (l) Daily Cash Expenditures $ 312,126 (j) / (l) = (m) Days Cash on Hand 285 (n) Minimum Days Cash on Hand Ratio 150 (m) (n) Over (under) required Days Cash on Hand 135 Page 2 of 4

7 ANNUAL BONDHOLDER COMPLIANCE CERTIFICATE 3 Liquidity Covenant (ABHOW Only) (a) Total cash of ABHOW $ 8,021,943 (b) PLUS the market value of all readily marketable securities $ 115,149,256 (a)+(b) = (c) Total cash and marketable securities ABHOW $ 123,171,199 (d) LESS the cash value of restricted securities and trusteeheld funds $ (58,554,682) (e) LESS collateral value for standby letters of credit $ (f) LESS collateral value for short term debt (working capital advances) $ (g) LESS payables > 60 days old that exceed 90% of all payables $ (h) LESS payables > 75 days old that exceed 8% of all payables $ (i) LESS payables > 90 days old that exceed 2% of all payables $ (j) = (c) Total Unrestricted Cash and Investments as defined $ 64,616,517 sum (d):(i) Operating Expenses Operating Expenses of ABHOW (Unaudited FY 2011) $ 108,049,517 PLUS Interest $ 5,876,653 (k) ABHOW Operating Expenses $ 113,926,170 (k) / 365 = (l) Daily Cash Expenditures $ 312,126 (j) / (l) = (m) Days Cash on Hand 207 (n) Minimum Days Cash on Hand Ratio From September 30, 2004 and thereafter 30 Days (m) (n) Over (under) required Days Cash on Hand 177 Page 3 of 4

8 ANNUAL BONDHOLDER COMPLIANCE CERTIFICATE 4 Security Guarantor Gross Revenues (Foundation Only) Unrestricted Net Assets Prior 12 Quarters as of March 31, 2011 $ 28,694,307 Quarterly Distribution Amount of 1.125% $ 322,811 Balance in Controlled Account $ 655,189 B. Attachments (1) Unaudited Financial Statements of ABHOW, Foundation and Combined Affiliates for the fiscal quarter C. Statement of Authorized Obligor Representative I hereby certify that the enclosed statements are true and were prepared in accordance with GAAP (subject to yearend adjustments) and that the above financial covenant calculations are accurate and true to the best of my knowledge. [signed by President or CFO of ABHOW] [Due Date: No later than 45 days after the end of each Fiscal Quarter] Page 4 of 4