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Transcription

1 ' ~ ='~''--- MoO}\!NGS ~Al\_K Simply the Best. November 6, 2015 Barbara Denton, Vice President The Bank of New York Mellon Trust Company, N.A Centurion Parkway Jacksonville, FL Re: Quarter Ending September 30, 2015 Officer's Certificate This Officer's Certificate is being delivered pursuant to the Master Trust Indenture between The Moorings, Incorporated (the "Borrower" ) and The Bank of New York Mellon Trust Company, N.A. Attached are the following documents required by the Continuing Disclosure Certificate executed in connection with the issuance by the Collier County Health Facilities Authority of its Residential Care Facility Revenue Bonds Series 2015A: Balance Sheet and Statement of Operations for the Borrower and its related entities for the three and nine months ended September 30, Combining Balance Sheet and Statement of Operations for the Borrower and its related entities for the three and nine months ended September 30, Actual to Budget comparison of the Borrower for the three and nine months ended September 30, Occupancy information Further, in accordance with Section 3.10 of the Master Trust Indenture, the Borrower certifies the following as of September 30, 2015: Long-Term Debt Service Coverage Ratio Reserve Ratio Days' Cash on Hand ,239 To the best of my knowledge the Borrower is in compliance with every covenant contained in the Master Trust Indenture. Sincerely, Mary M. Morton Vice President of Finance 120 Moorings Park Drive Naples, Florida

2 Budget vs Actual Operations For the Nine Months Ending September 30, 2015 Moorings Park Obligated Group * Actual Budget Variance Operating Revenue Independent Living $ 17,999,200 $ 17,774,600 $ 224,600 Health Center (SNF) 9,791,000 9,745,100 45,900 Assisted Living 2,537,600 2,591,300 (53,700) Other 30,800 23,500 7,300 Total Operating Revenue 30,358,600 30,134, ,100 Operating Expense General & Administrative 3,268,900 3,271,600 2,700 Resident Services 1,327,900 1,319,700 (8,200) Plant 7,152,300 7,044,800 (107,500) Dining Services 6,124,300 6,061,300 (63,000) Resident Care 8,758,200 8,731,100 (27,100) Total Operating Expense 26,631,600 26,428,500 (203,100) Operating Margin $ 3,727,000 $ 3,706,000 $ 21,000 Other Revenue Intercompany Revenue 128, ,100 (49,300) Entrance Fee Amortization 13,982,800 13,381, ,900 Investment Income 3,842,500 3,197, ,000 Realized Gain on Sale of Investments 121, ,100 Contributions Miscellaneous 179, ,200 Total Other Revenue 18,254,500 16,757,500 1,497,000 Other Expense Intercompany Expense 3,101,600 2,926,700 (174,900) Amortization 34,500 69,900 35,400 Depreciation 11,763,100 11,787,100 24,000 Interest 2,244,800 1,776,400 (468,400) Loss on Disposal of Assets 246,700 0 (246,700) Loss on Extinguishment of Debt 3,282,300 0 (3,282,300) Miscellaneous 878, ,800 (184,100) Total Other Expense 21,551,900 17,254,900 (4,297,000) Net Income Before Investment G/(L) 429,600 3,208,600 (2,779,000) Assets Released from Restriction 16, ,400 Change in Unrealized Loss on Investments (6,884,300) 0 (6,884,300) Net Income (Loss) $ (6,438,300) $ 3,208,600 $ (9,646,900) * The Moorings Park Obligated Group consists of The Moorings, Incorporated.

3 Budget vs Actual Operations For the Quarter Ending September 30, 2015 Moorings Park Obligated Group * Actual Budget Variance Operating Revenue Independent Living $ 5,916,600 $ 5,873,200 $ 43,400 Health Center (SNF) 3,118,200 3,194,100 (75,900) Assisted Living 956, ,500 (2,300) Other 14,800 7,300 7,500 Total Operating Revenue 10,005,800 10,033,100 (27,300) Operating Expense General & Administrative 1,062,300 1,057,100 (5,200) Resident Services 449, ,900 (3,900) Plant 2,383,800 2,342,600 (41,200) Dining Services 1,911,800 1,972,900 61,100 Resident Care 2,950,000 2,869,500 (80,500) Total Operating Expense 8,757,700 8,688,000 (69,700) Operating Margin $ 1,248,100 $ 1,345,100 $ (97,000) Other Revenue Intercompany Revenue 28,600 56,000 (27,400) Entrance Fee Amortization 4,224,100 4,460,600 (236,500) Investment Income 1,339,700 1,065, ,800 Contributions Miscellaneous 74, ,900 Total Other Revenue 5,667,300 5,582,500 84,800 Other Expense Intercompany Expense 999, ,700 (87,600) Amortization 5,600 23,300 17,700 Depreciation 3,880,100 3,932,300 52,200 Interest 934, ,400 (340,400) Realized Loss on Sale of Investments 468, ,400 Loss on Disposal of Assets 55,900 0 (55,900) Loss on Extinguishment of Debt Miscellaneous 332, ,700 (89,900) Total Other Expense 6,676,700 5,704,400 (972,300) Net Income Before Investment G/(L) 238,700 1,223,200 (984,500) Assets Released from Restriction 6, ,800 Change in Unrealized Loss on Investments (8,150,100) 0 (8,150,100) Net Income (Loss) $ (7,904,600) $ 1,223,200 $ (9,127,800) * The Moorings Park Obligated Group consists of The Moorings, Incorporated.

4 The Moorings Park Institute, Incorporated and Subsidiaries Balance Sheet September 30, 2015 Moorings Park Obligated Group * ASSETS CURRENT ASSETS Cash 13,384,456 The Moorings Park Institute, Incorporated and Subsidiaries $ $ 15,480,446 Patient and Resident Accounts Receivable 2,050,622 3,319,369 Entrance Fees Receivable 1,792,373 1,792,373 Due from Affiliates 920,757 Current Portion of Assets Limited as to Use 3,892,049 3,892,049 Prepaid Expenses and Other Current Assets 1,115,617 1,115,617 Total Current Assets 23,155,874 25,599,854 INVESTMENTS 137,091, ,491,936 ASSETS LIMITED AS TO USE, NET OF CURRENT PORTION 88,290,851 88,290,851 PROPERTY AND EQUIPMENT, NET 211,473, ,473,903 OTHER ASSETS Long Lived Assets Not Used in Operations 296, ,565 Deferred Financing Costs, Net 660, ,173 Other Assets 82,133 82,133 Total Other Assets 1,038,871 1,038,871 Total Assets $ 461,051,492 $ 467,895,415 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable and Accrued Expenses $ 4,741,747 $ 5,474,654 Accrued Interest Payable 1,515,692 1,515,692 Due to Affiliates 258,734 Current Portion of Refundable Entrance Fees Current Portion of Long Term Debt 2,285,000 2,285,000 Total Current Liabilities 8,801,173 9,275,346 LONG TERM DEBT, Net of Current Portion 89,945,290 89,945,290 DEFERRED REVENUE FROM ENTRANCE FEES 191,587, ,587,878 OTHER LONG TERM LIABILITIES 2,953,857 2,953,857 DEPOSITS IN ESCROW 66,960,490 66,960,490 Total Liabilities 360,248, ,722,861 NET ASSETS Unrestricted 100,490, ,021,690 Temporarily Restricted 312,572 1,150,864 Total Net Assets 100,802, ,172,554 Total Liabilities and Net Assets $ 461,051,492 $ 467,895,415 * The Moorings Park Obligated Group consists of The Moorings, Incorporated.

5 The Moorings Park Institute, Incorporated and Subsidiaries Consolidating Balance Sheet September 30, 2015 Moorings Park Moorings Moorings Park The Moorings The Moorings, Community Park Healthy Living, Eliminating Park Institute Inc. Health, Inc. Foundation, Inc. Inc. Entries Consolidated ASSETS CURRENT ASSETS Cash $ 10,476 $ 13,384,456 $ 898,257 $ 875,194 $ 312,063 $ $ 15,480,446 Patient and Resident Accounts Receivable 2,050,622 1,035, ,000 63,670 3,319,369 Entrance Fees Receivable 1,792,373 1,792,373 Due from Affiliates 1,218, , , ,222 (3,013,895) Current Portion of Assets Limited as to Use 3,892,049 3,892,049 Prepaid Expenses and Other Current Assets 1,115,617 1,115,617 Total Current Assets 1,229,423 23,155,874 2,548,303 1,045, ,955 (3,013,895) 25,599,854 INVESTMENTS 137,091,993 4,399, ,491,936 ASSETS LIMITED AS TO USE, NET OF CURRENT PORTION 88,290,851 88,290,851 PROPERTY AND EQUIPMENT, NET 211,473, ,473,903 OTHER ASSETS Long Lived Assets Not Used in Operations 296, ,565 Deferred Financing Costs, Net 660, ,173 Other Assets 82,133 82,133 Total Other Assets 1,038,871 1,038,871 Total Assets $ 1,229,423 $ 461,051,492 $ 2,548,303 $ 5,445,137 $ 634,955 $ (3,013,895) $ 467,895,415 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable and Accrued Expenses $ 321,247 $ 4,741,747 $ 306,064 $ 14,758 $ 90,838 $ $ 5,474,654 Accrued Interest Payable 1,515,692 1,515,692 Due to Affiliates 908, , , ,104 1,042,023 (3,013,895) Current Portion of Refundable Entrance Fees Current Portion of Long Term Debt 2,285,000 2,285,000 Total Current Liabilities 1,229,423 8,801, , ,862 1,132,861 (3,013,895) 9,275,346 LONG TERM DEBT, Net of Current Portion 89,945,290 89,945,290 DEFERRED REVENUE FROM ENTRANCE FEES 191,587, ,587,878

6 The Moorings Park Institute, Incorporated and Subsidiaries Consolidating Balance Sheet September 30, 2015 Moorings Park Moorings Moorings Park The Moorings The Moorings, Community Park Healthy Living, Eliminating Park Institute Inc. Health, Inc. Foundation, Inc. Inc. Entries Consolidated OTHER LONG TERM LIABILITIES 2,953,857 2,953,857 DEPOSITS IN ESCROW 66,960,490 66,960,490 Total Liabilities 1,229, ,248, , ,862 1,132,861 (3,013,895) 360,722,861 NET ASSETS Unrestricted 100,490,232 2,023,381 4,005,983 (497,906) 106,021,690 Temporarily Restricted 312, ,292 1,150,864 Total Net Assets 100,802,804 2,023,381 4,844,275 (497,906) 107,172,554 Total Liabilities and Net Assets $ 1,229,423 $ 461,051,492 $ 2,548,303 $ 5,445,137 $ 634,955 $ (3,013,895) $ 467,895,415

7 Consolidating Statement of Operations For the Nine Months Ending September 30, 2015 Moorings Park Moorings Moorings Park The Moorings The Moorings, Community Park Healthy Living, Eliminating Park Institute Inc. Health, Inc. Foundation, Inc. Inc. Entries Consolidated REVENUE, GAINS, AND OTHER SUPPORT Revenues and Gains: Health Services Revenue $ $ 12,389,372 $ 5,099,294 $ $ 437,102 $ (2,836) $ 17,922,932 Resident Service Fees 17,874,117 17,874,117 Earned Entrance Fees 13,982,803 13,982,803 Investment Income 3,842,502 60,602 3,903,104 Other 3,546, ,252 12,918 (3,536,664) 478,636 Net Assets Released from Restrictions Used for Operations 15, , ,932 Total Revenue, Gains and Other Support 3,546,130 48,560,850 5,099, , ,020 (3,539,500) 54,365,524 Expenses: Resident Care and Services 10,184,523 4,338,139 1,229,374 (2,836) 15,749,200 Dietary 6,124,335 6,124,335 Plant Expenses 7,191,885 7,191,885 General and Administrative 3,546,130 7,076,538 1,037, ,313 44,726 (3,536,664) 8,713,593 Depreciation and Amortization 11,797,636 11,797,636 Interest 2,279,679 2,279,679 Loss on Disposal of Assets 246, ,704 Provision for Doubtful Accounts 53,245 25,839 79,084 Total Expenses 3,546,130 44,954,545 5,401, ,313 1,274,100 (3,539,500) 52,182,116 OPERATING INCOME (LOSS) $ $ 3,606,305 $ (302,234) $ (296,583) $ (824,080) $ $ 2,183,408 Other Income (Loss): Realized Gain/(Loss) on Sale of Investments $ $ 121,086 $ $ (11,306) $ $ $ 109,780 Change in Fair Value of Interest Rate Swap (223,518) (223,518) Loss on Extinguishment of Debt (3,282,321) (3,282,321) Contributions , ,586 Total Other Income (Loss) (3,384,678) 299,205 (3,085,473) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES 221,627 (302,234) 2,622 (824,080) (902,065) UNRESTRICTED NET ASSETS Change in Net Unrealized Loss on Investments (6,660,821) (94,207) (6,755,028) Net Assets Released from Restrictions for Capital Projects , ,673 Increase (Decrease) in Unrestricted Net Assets (6,438,591) (302,234) 47,485 (824,080) (7,517,420)

8 Consolidating Statement of Operations For the Nine Months Ending September 30, 2015 Moorings Park Moorings Moorings Park The Moorings The Moorings, Community Park Healthy Living, Eliminating Park Institute Inc. Health, Inc. Foundation, Inc. Inc. Entries Consolidated TEMPORARILY RESTRICTED NET ASSETS Contributions 51, , ,765 Net Assets Released from Restrictions (16,407) (327,198) (343,605) Increase (Decrease) in Temporarily Restricted Net Assets 35,002 (49,842) (14,840) DECREASE IN NET ASSETS (6,403,589) (302,234) (2,357) (824,080) (7,532,260) NET ASSETS Beginning of Year 107,206,393 2,325,615 5,186,632 (13,826) 114,704,814 Transfer of Net Assets (340,000) 340,000 End of Period $ $ 100,802,804 $ 2,023,381 $ 4,844,275 $ (497,906) $ $ 107,172,554

9 Statement of Operations For the Nine Months Ending June 30, 2015 Moorings Park Obligated Group * REVENUE, GAINS, AND OTHER SUPPORT Revenues and Gains: Health Services Revenue 12,389,372 The Moorings Park Institute, Incorporated and Subsidiaries $ $ 17,922,932 Resident Service Fees 17,874,117 17,874,117 Earned Entrance Fees 13,982,803 13,982,803 Investment Income 3,842,502 3,903,104 Other 456, ,636 Net Assets Released from Restrictions Used for Operations 15, ,932 Total Revenue, Gains and Other Support 48,560,850 54,365,524 Expenses: Resident Care and Services 10,184,523 15,749,200 Dietary 6,124,335 6,124,335 Plant Expenses 7,191,885 7,191,885 General and Administrative 7,076,538 8,713,593 Depreciation and Amortization 11,797,636 11,797,636 Interest 2,279,679 2,279,679 Loss on Disposal of Assets 246, ,704 Provision for Doubtful Accounts 53,245 79,084 Total Expenses 44,954,545 52,182,116 OPERATING INCOME $ 3,606,305 $ 2,183,408 Other Income (Loss): Realized Gain on Sale of Investments $ 121,086 $ 109,780 Change in Fair Value of Interest Rate Swap (223,518) (223,518) Loss on Extinguishment of Debt (3,282,321) (3,282,321) Contributions ,586 Total Other Loss (3,384,678) (3,085,473) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES 221,627 (902,065) UNRESTRICTED NET ASSETS Change in Net Unrealized Loss on Investments (6,660,821) (6,755,028) Net Assets Released from Restrictions for Capital Projects ,673 Decrease in Unrestricted Net Assets (6,438,591) (7,517,420) TEMPORARILY RESTRICTED NET ASSETS Contributions 51, ,765 Net Assets Released from Restrictions (16,407) (343,605) Increase (Decrease) in Temporarily Restricted Net Assets 35,002 (14,840) DECREASE IN NET ASSETS (6,403,589) (7,532,260) NET ASSETS Beginning of Year 107,206, ,704,814 Transfer of Net Assets End of Period $ 100,802,804 $ 107,172,554 * The Moorings Park Obligated Group consists of The Moorings, Incorporated.

10 Consolidating Statement of Operations For the Quarter Ending September 30, 2015 Moorings Park Moorings Moorings Park The Moorings The Moorings, Community Park Healthy Living, Eliminating Park Institute Inc. Health, Inc. Foundation, Inc. Inc. Entries Consolidated REVENUE, GAINS, AND OTHER SUPPORT Revenues and Gains: Health Services Revenue $ $ 4,089,244 $ 1,585,692 $ $ 153,840 $ $ 5,828,776 Resident Service Fees 5,873,250 5,873,250 Earned Entrance Fees 4,224,132 4,224,132 Investment Income 1,339,655 23,761 1,363,416 Other 1,147, ,058 3,993 (1,143,315) 168,013 Net Assets Released from Restrictions Used for Operations 6,759 71,964 78,723 Total Revenue, Gains and Other Support 1,147,277 15,693,098 1,585,692 95, ,833 (1,143,315) 17,536,310 Expenses: Resident Care and Services 3,439,161 1,386, ,706 5,216,698 Dietary 1,911,854 1,911,854 Plant Expenses 2,403,921 2,403,921 General and Administrative 1,155,597 2,321, , ,208 15,696 (1,143,315) 2,998,960 Depreciation and Amortization 3,885,704 3,885,704 Interest 948, ,121 Loss on Disposal of Assets 55,877 55,877 Provision for Doubtful Accounts 13,364 9,797 23,161 Total Expenses 1,155,597 14,979,526 1,717, , ,402 (1,143,315) 17,444,296 OPERATING INCOME (LOSS) $ (8,320) $ 713,572 $ (132,186) $ (232,483) $ (248,569) $ $ 92,014 Other Income (Loss): Realized Loss on Sale of Investments $ $ (468,376) $ $ (5,760) $ $ $ (474,136) Change in Fair Value of Interest Rate Swap (328,994) (328,994) Loss on Extinguishment of Debt Contributions 76,293 76,293 Total Other Income (Loss) (797,370) 70,533 (726,837) DEFICIENCY OF REVENUES OVER EXPENSES (8,320) (83,798) (132,186) (161,950) (248,569) (634,823) UNRESTRICTED NET ASSETS Change in Net Unrealized Loss on Investments (7,821,110) (106,508) (7,927,618) Net Assets Released from Restrictions for Capital Projects 100, ,000 Decrease in Unrestricted Net Assets (8,320) (7,904,908) (132,186) (168,458) (248,569) (8,462,441)

11 Consolidating Statement of Operations For the Quarter Ending September 30, 2015 Moorings Park Moorings Moorings Park The Moorings The Moorings, Community Park Healthy Living, Eliminating Park Institute Inc. Health, Inc. Foundation, Inc. Inc. Entries Consolidated TEMPORARILY RESTRICTED NET ASSETS Contributions 19, , ,159 Net Assets Released from Restrictions (6,759) (171,964) (178,723) Increase in Temporarily Restricted Net Assets 12,629 16,807 29,436 DECREASE IN NET ASSETS (8,320) (7,892,279) (132,186) (151,651) (248,569) (8,433,005) NET ASSETS Beginning of Period 8, ,695,083 2,155,567 4,995,926 (249,337) 115,605,559 Transfer of Net Assets End of Period $ $ 100,802,804 $ 2,023,381 $ 4,844,275 $ (497,906) $ $ 107,172,554

12 Statement of Operations For the Quarter Ending September 30, 2015 Moorings Park Obligated Group * REVENUE, GAINS, AND OTHER SUPPORT Revenues and Gains: Health Services Revenue 4,089,244 The Moorings Park Institute, Incorporated and Subsidiaries $ $ 5,828,776 Resident Service Fees 5,873,250 5,873,250 Earned Entrance Fees 4,224,132 4,224,132 Investment Income 1,339,655 1,363,416 Other 160, ,013 Net Assets Released from Restrictions Used for Operations 6,759 78,723 Total Revenue, Gains and Other Support 15,693,098 17,536,310 Expenses: Resident Care and Services 3,439,161 5,216,698 Dietary 1,911,854 1,911,854 Plant Expenses 2,403,921 2,403,921 General and Administrative 2,321,524 2,998,960 Depreciation and Amortization 3,885,704 3,885,704 Interest 948, ,121 Loss on Disposal of Assets 55,877 55,877 Provision for Doubtful Accounts 13,364 23,161 Total Expenses 14,979,526 17,444,296 OPERATING INCOME $ 713,572 $ 92,014 Other Income (Loss): Realized Loss on Sale of Investments $ (468,376) $ (474,136) Change in Fair Value of Interest Rate Swap (328,994) (328,994) Loss on Extinguishment of Debt Contributions 76,293 Total Other Loss (797,370) (726,837) DEFICIENCY OF REVENUES OVER EXPENSES (83,798) (634,823) UNRESTRICTED NET ASSETS Change in Net Unrealized Loss on Investments (7,821,110) (7,927,618) Net Assets Released from Restrictions for Capital Projects 100,000 Decrease in Unrestricted Net Assets (7,904,908) (8,462,441) TEMPORARILY RESTRICTED NET ASSETS Contributions 19, ,159 Net Assets Released from Restrictions (6,759) (178,723) Increase in Temporarily Restricted Net Assets 12,629 29,436 DECREASE IN NET ASSETS (7,892,279) (8,433,005) NET ASSETS Beginning of Period 108,695, ,605,559 Transfer of Net Assets End of Period $ 100,802,804 $ 107,172,554 * The Moorings Park Obligated Group consists of The Moorings, Incorporated.

13 The Moorings, Incorporated Occupancy Information Occupancy and Turnover for Independent Living Apartments The table below provides the historical average occupancy of the existing Independent Living Apartments for the four fiscal years ended December 31, 2014 and the nine month period ended September 30, Existing Independent Living Apartment Average Occupancy Table Fiscal Year Average % Occupied % % % % % The table below privides the historical turnover in the existing Independent Living Apartments, move ins and entrance fees received for the four fiscal years ended December 31, 2014 and the nine month period ended September 30, 2015: Existing Independent Living Apartment Turnover Table Fiscal Year Turnover Move Ins Entrance Fees Received $ 33,347, $ 16,650, $ 29,737, $ 61,696, $ 21,689,159 Occupancy for Assisted Living Units and the Health Center The following table summarizes the historical average occupancy of the Assisted Living Units and the Health Center for the four fiscal years ended December 31, 2014 and the six month period ended June 30, Assisted Living Units Skilled Nursing Available Units/Beds Fiscal Year %* 93.3% Fiscal Year % 92.5% Fiscal Year % 92.5% Fiscal Year % 94.3% Fiscal Year % 95.3% * Thirteen Assisted Living Units were under renovation since September 2014 and unavailable for occupancy. The thirteen Assisted Living Units were renovated and converted into sixteen specialized memory care units that became available for occupancy on May 21, 2015.