.I Immanuel. (Obligated Group only) Financial Information and Operating Data

Transcription

1 .I Immanuel Financial Information and Operating Data June 30, 2016

2 Table of Contents Financial Statements Summary of Historical Occupancy by Community II Statement of Historical Pro Forma Debt Service Coverage Ratio m Statement of Historical Pro Forma Days Cash on Hand JV

3 Statements of Operations Revenue Operating Income Interest on Deposits Total Revenue For the Twelve Months Ended June 30, 2016 Actual Budget Twelve Months Actual (in OOO's) $ 28,780 $ 1,795 30,575 29,294 1,735 31,029 $ 27,357 1,748 29,105 Operating Expenses Salaries & Wages Employee Benefits Other Operating Expenses Total Operating Expenses 12,238 3,950 11,763 27,951 Operating Income before Capital I 2,624 --~- 12,346 4,239 12,602 29,187 1,842 11,292 3,336 10,242 24,870 4,235 Capital Expenses Depreciation and Amortization Interest Expense Total Capital Expenses 7,606 3,905 11,511 7,786 4,286 12,072 6,167 3,440 9,607 Investment Income, including Realized Gains Change in Unrealized Gains on Investments Total Investment Income, net 8,824 (16,251) (7,427) 14,766 3,480 18,246 14,472 {7,080) 7,392 Net Income (16,314) $ 8,016 $ 2,020 Other Changes In Net Assets Tra~sfers from Affliates-lmm~muel Corp ~5,495) Net Assets- Beginning of Period Net Assets-End of Period 492, ,282 I (a)

4 Balance Sheets June 30, 2016 June 30, 2015 Assets (in OOO's Current Assets Cash and Equivalents $ 1,546 $ 2,339 Accounts Receivable Due from Affiliates 787 Assets Held by Bond Trustee (See detail below) 2,247 2,251 Prepaid Expenses Total Current Assets 4,814 6,001 Investments for Operations 74,140 75,046 Board Designated Investments 374, ,186 Assets Held by Bond Trustee (See detail below) 5, Property and Equipment, net 80,332 82,257 Investment in Joint Ventures ,648 Interest in Immanuel Core Fund, LLC ,284 Notes Receivable from Affiliates 3,493 1,711 Assets Held in Escrow Other Assets 2,718 2,368 Total Assets $ 594,959 $ 616,378 Llabllltles Current Liabilities Current Portion of Long-term Debt $ 1,749 $ 1,165 Accrued Interest 1,918 1,863 Due to Affiliates 347 Other 8,233 7,827 Total Current Liabilities 12,247 10,855 Advanced Fees 37,062 36,335 Long-term Debt (See note) 75,368 77,097 Total Liabilities 124, Net Assets Unrestricted Net Assets 470, ,091 Total Net Assets 470, ,091 Total Liabilities and Net Assets $ 594,959 $ 616,378 Detail of: Assets Held by Bond Trustee Includes the followlng, at market: Redemption Funds $ 2,247 $ Total Current Funds 2, Debt Service Reserve Funds 5,107 4,714 Capita! Project Funds Total Non-current Funds 5, Total $ 8,016 $ 9,744 I (b)

5 lrmman.uel Statement of Cash Flow For the Twelve Months Ended June 30, 2016 Cash Flow from Operating Activities: Net Income (loss) Changes In net cash provided by operating activities: Depreciation and Amortization Amortization of Advanced Fees Net Change in Working Capital Net Cash Provided by Operating Activities -(in OOO's)- $ (16,315) 7, (8,057) Cash Flow from Investing Activities: Purchase of property, plant and equipment Proceeds for board designated investments Net cash provided by (used in) investing activities (5,681) (5,681) Cash Flow from Other Activities: Transfers from Affiliates Increase I (Decrease) in resident deposits (Increase) I Decrease in trust funds Change in long-term debt Decrease In Notes Receivable from Affiliates Change in Due to/due from Affiliates Change in Assets Held in Escrow Change in other assets Net Cash Provided by Other Activities ,724 (1,729) (1,782) 1,134 (52) 381 Net Increase in Cash and Equivalents and Investments Unrestricted Cash and Equivalents and Investments - Beginning of Period (13,357) 463,572 End of Period $ 450,215 I (c)

6 1. Board Designated Investments I Immanuel Notes to Financial Statements June 30, 2016 The Immanuel Board of Directors has designated certain funds to be utilized for strategic initiatives in support of its mission, and to provide resources for current and future operations, growth and other development opportunities. These funds are included on the Balance Sheets as Board Designated Investments and are also included in the calculation of days cash on hand. It is the intention of Immanuel to develop services to address the housing, health care and human services needs of seniors and their families throughout Nebraska and Iowa, including skilled nursing, long-term care, assisted living, senior lifestyle programs and housing, and Programs of All-Inclusive Care for the Elderly (PACE}. These investments are available, at the Board's direction, as noted above. 2. Pacific Springs Village Expansion Phase 1 During the year ended June 30, 2014, Immanuel Retirement Communities (IRC} commenced construction on Phase 1 of its Expansion Project at Pacific Springs Village (Project). The Project includes the construction of six patio homes, fourteen independent living apartments and twenty four assisted living apartments. As of March 31, 2016, the six patio homes were completed and occupied and the additional independent and assisted living apartments were completed as well. In conjunction with the Project, the Obligated Group has entered into a financing arrangement whereby Hospital Authority No. 2 of Douglas County, Nebraska (Authority) has authorized the issuance of tax-exempt Health Facilities Revenue Bonds (Immanuel Obligated Group} Series 2014 totaling $17,500,000 for construction of the Project. The Obligated Group has entered into a loan agreement and indenture with the Authority to pay the periodic amounts owing under the agreements relating to the Series 2014 bonds, including a Supplemental Master Indenture that is consistent with and made part of the existing Master Indenture issued in conjunction with the Obligated Group's Series 2010 Agreements. The 2014 bonds and corresponding loan agreement mature on January 1, 2039, with a current fixed interest rate of 2.95%, which will reset in the tenth and twentieth years, based on the calculation of 65% of the sum of 2.00% plus the 10-year Treasury and 5-year Treasury, respectively. The bond holders have the option to require repayment of the bonds on July 1, 2024 and July 1, The Bonds and the Loan require interest payments only during the construction period with principal payments starting on January 1, As of June 30, 2016 IRC had drawn the entire $17,500,000 which is included in Long-term Debt in the accompanying Balance Sheets. Id

7 Summary of Historical Occupancy by Community For the Twelve Months Ended June 30, 2016 The Landing at Wiiiiamsburg VIiiage Independent Living Assisted Living I Memory Care Lakeside VIiiage Independent Living Assisted Living I Memory Care Immanuel VIiiage Independent living Assisted Living Pacific Springs VIiiage Independent living Assisted Living Trinity VIiiage Independent Living Assisted Living 98% 99% 92% 91% 85% 90..c, 81% 50% 92..C. 89% ll

8 Statement of Historical Pro Fonna Debt Service Coverage Ratio For the Twelve Months Ended June 30, 2016 Immanuel Retirement EUmlnatlonsl Immanuel Communities Adjustments (in OOO's) Excess (Deficiency) of Revenues over Expenses s {131847) s {2.468) s {103) Add- Capital Costs; Less- Depreciation and Amortization 1,465 6,142 Interest Expense 4 4,284 (383) Other Total Capital Costs (383) Refundable Fees and Deferred Revenue, net 1,359 Deposits for Unoccupied Apartments 87 Unrealized Losses on Investments Total Other Additions ,446 Total Additions ,872 {383) Unrealized Gains on Investments (50) Amortization of Advanced Fees (635) Total Subtractions (685) Income Available for Debt Service s 3,923 $ 8,719 $ (486) Maximum Annual Debt Service (1) Debt Service Coverage Ratio (X) Consolidated s {16.417) 7,606 3,905 11,511 1, (50) {635) {685) s s 4, (1) Represents maximum annual debt service for Series 2010 bonds and the Assisted Living portion of the Series 2014 bonds. The Independent Living portion Series 2014 bonds have been excluded from the maximum annual debt service per Section 5.08 of the Master Trust Indenture.

9 II Immanuel Statement of Historical Pro Forma Days Cash on Hand June 30, 2016 (a Required Testing Date) Immanuel Retirement Immanuel Communities Eliminations (in OOO's) Cash and Equivalents $ 1,540 $ 6 $ $ Investments, lnduding Investments Limited as to Use 401,178 62,841 (7,021) Less: Restricted Cash (28) Less: Assets Held by Bond Trustee (8,015) Less: Assets Held in Escrow {316) Available Liquid Cash and Equivalents and Investments $ 402,690 $ 54,516 $ (7,021) $ Operating Expenses 6,903 $ 23,236 $ (2,189) $ Capital Expenses 1,469 10,426 (383) Less: Depreciation and Amortization (1,465) (6,142) Less: Bond Discount and Deferred Costs Amortization {52) $ 6,907 $ 27,468 $ ~2.572) $ Divide by - Days Total 1, ,998 (28) (8,015) {316) 450,185 27,950 11,512 (7,607) {52) 31, Daily Expenses $ Days Cash on Hand ,181 The Immanuel Board of Directors has designated certain funds to be utilized for strategic initiatives in support of its mission in the future. These funds are included on the Balance Sheets as Board Designated Investments and are included in days cash on hand. 'IV