Quarterly Compliance Certificate

Transcription

1 Quarterly Compliance Certificate November, 07 To: Bond Trustee Re: Interim Financial Statement as of September 30, 07 ) Unrestricted Cash & Days Cash on Hand calculation of the Obligated Group should not be less than 45 days. Unrestricted cash and investments were estimated to be $4,77,649 and Days Cash on Hand were estimated to be 98 at September 30, 07. ) Debt Service Coverage Ratio of the Obligated Group, calculated at the end of each Fiscal Year, should not be less than.0. Our Debt Service Coverage Ratio was estimated to be. at September 30, 07. 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 September 30, 07. Please review the attached report for verification of these statements. Valley Vista Care Corporation Obligated Group Terri A. Capshaw, its Director of Finance 80 Elm st. I St. Maries, Idaho valleyvista.org

2 Management s Discussion of Financial Statements as of September 30, 07 Page Balance Sheet Assets: We are showing a decrease of $9,55 YTD in cash (line 3). Our investments are comprised of marketable assets valued at $,605,34 (line 4) plus $5,8 in money market funds added to Cash on line 3. Since investing $.5 million in October 04, the account has increased over $30,000, or 8.7%. Accounts Receivable (line 5) decreased $,556. Accounts Receivable includes $,3,856 for resident services; Medicare Bad Debt of $4,30 to be paid after cost reports are filed; an IPIC receivable of $4,643; a SFY08 UPL receivable of $676,07; and ITD grants receivable of $5,593. Prepaid expenses (line 7) consist of Property & Liability Insurance of $8,673; Work Comp of $6,40; and prepaid Bond fees and misc totaling $0,538. We completed capital projects worth $84,090 including additional railing and flooring in St Maries, smoking huts in St Maries and Sandpoint, bariatric beds and a shower room remodel in Sandpoint, wireless networks in Rupert, Antelope, and Mackay, flooring and new furniture in Rupert and Antelope, and a new LRAT vehicle (80% reimbursed by grant funding). After accounting for disposals of $6,839, the net increase in Property and Equip (line 7) is $,5. Page Balance Sheet Liabilities & Net Assets: Accounts Payable of $,443,937 (line 7) are comprised primarily of Vendor Payables of $404,993; Payroll and Withholding of $6,03; an accrual of $89,9 to cover expected employee medical & dental claims incurred through September; an accrual of $76,376 for SFY08 Provider Tax expensed this year; and accrued retirement match of $58,960. Accrued interest (line 9) is comprised of $89,06 in unpaid Bond interest paid out in November and May, and $,559 for VCHC s HUD loan paid annually on May st. Deferred Revenue (line 36) consists of $5,593 of unused transportation grants to be recognized when spent; vehicle grants of $0,95 paid to us by ITD and recognized over 5 years to match vehicle depreciation; and unearned rent of $600. Page 3 Income Statement: We are estimating a decrease in net revenues of $55,75 (line 40) at year end. The results are mostly due to decreased census in the two nursing homes January-May, agency nursing costs, and an unfavorable survey in St Maries. Revenues are.7% less than anticipated but do include an increase of $40/day in the Medicaid rate effective 7/ and a $40,000 increase over what was anticipated for the SFY08 UPL. Excessive staffing costs leveled off last quarter; however, we continue to see increases in Activity expense due to expanded requirements. Maintenance and Utilities remained higher than anticipated. Fortunately, Dietary tracked below budget and we have realized savings in Social Services. The variance in Depreciation (line 4) and Interest (line 4) is due to a presentation change with regards to finance cost amortization. The net impact (line 4) of the Medicaid rate recovery program in FY07 was $,969,53, a decrease of $6,958, or 3%, over FY06. This decrease was mostly due to decreased Medicaid days in Sandpoint. Page 4 Cash Flow Statement: Lines -7 show a reconciliation of operating activities starting with YTD net income and ending with cash generated by operations of $650,979. We remove non-cash items, and then add or subtract changes in receivables and payables as indicated. Line 36 indicates a total decrease in cash of $9,55 at yearend. Cash decreased $35,735 since the end of last quarter illustrating how the UPL payment is used to supplement cash generated from operations. Page 5 Ratios: Our L-T Debt Service Coverage is estimated to be.x (line 0) our Days Cash on Hand was 98 as of September 30, 07. Page 6 Summary Net Revenues by Location: Line 5 shows a negative variance of $48,067 YTD, which is an improvement of $46,069 over the variance last quarter. Census increased in St Maries during the last quarter and revenues (line ) were just slightly less than predicted. St Maries operating expense includes the survey penalty of $6,750; however property costs are reflecting Home Office offsets of investment earnings. Sandpoint s utility costs were more than expected (line 9); otherwise they would have met expectations for the year. Rupert s census only decreased by residents; however, the loss of personal care revenue was significant, resulting in a negative variance (line ). Although Antelope Creek did not meet revenue goals, Lost River s expenses (line 8) decreased which helped to offset their negative revenue variance. Page 7 Census Occupancy: Shows the percent of units occupied. The graphs indicate the average number of units occupied and budgeted by pay source for both nursing homes. St. Maries NH remained at 65 for September and averaged 63/day for the year. Sandpoint s census remained at 63 for September. Both NHs averaged 3/day Medicare stays for the year, which was one less than anticipated. Sandpoint s VA census has been less than budgeted; however they exceeded expectations for Medicaid census. Cottage was at 86% in September and the Apartments increased their occupancy rate to 7% in September.

3 Valley Vista Care Comparative Statement of Net Assets September 30, 07 DRAFT //07 ASSETS Valley Vista Obligated Group Valley Vista Care Corporation Vista Community Housing Corp Foundation 9/30/07 9/30/06 Incr (Decr) 9/30/07 9/30/06 Incr (Decr) 9/30/07 9/30/06 Incr (Decr) 9/30/07 9/30/06 Incr (Decr) Current Assets 3 Cash & cash equivalents 3,67,44 3,86,99 (9,55) 3,9,087 3,43,439 (4,35) 38,37 43,490 (5,63) 35,85 34,677,75 4 S-T Investments less cash equivalent,605,34,5,999 9,35,605,34,5,999 9, ,779 96,35 5,48 5 Accounts Receivable, net,04,49,063,805 (,556),07,33,095,376 (4,43) (8,984) (3,57),587 6 Inventories 8,36 90,503 (8,77) 8,36 90,503 (8,77) Prepaid expenses 9,63 3,564 (,95) 9,63 3,564 (,95) Total Current Assets 7,06,837 6,986,799 40,037 7,07,494 6,974,880 4,64 9,343,99 (,576) 37,63 3,08 6,603 9 Assets limited as to use 0 Bond Repair and Renovation Fund Bond Cost of Issuance Bond Interest 56,755 57,53 (758) 56,755 57,53 (758) Bond Principal 33,9,396,795 33,9,396, Bond Debt Reserve Fund,066,589,067,686 (,097),066,589,067,686 (,097) Restricted Cash - Resident Trust 65,09 6,50,959 65,09 6,50, Total Assets limited as to use,6,744,608,844,900,6,744,608,844, Property and Equipment 9,4,9 8,90,66,5 7,87,7 7,64,395 85,7,34,795,79,65 35,59 8 Less accumulated depreciation (9,896,745) (9,30,85) (666,459) (9,309,05) (8,686,08) (63,04) (587,694) (544,58) (43,436) 9 Net Property & Equipment 9,45,67 9,690,375 (445,08) 8,58,066 8,955,368 (437,30) 77,0 735,007 (7,907) 0 Other Assets Other Intangible, less accum amort Total Other Assets Total Assets 7,893,747 8,86,09 (39,7) 7,57,303 7,539,09 (38,789) 736, ,97 (0,483) 37,63 3,08 6,603 Balance Sheet-Assets Page

4 Valley Vista Care Comparative Statement of Net Assets September 30, 07 DRAFT //07 Valley Vista Obligated Group Valley Vista Care Corporation Vista Community Housing Corp Foundation 9/30/07 9/30/06 Incr (Decr) 9/30/07 9/30/06 Incr (Decr) 9/30/07 9/30/06 Incr (Decr) 9/30/07 9/30/06 Incr (Decr) 4 LIABILITIES & NET ASSETS 5 Currents Liabilities 6 Accounts payable,443,937,354,49 89,508,44,98,35,844 90,454,639,585 (946) 7 Medicaid payable Accrued interest 9,6 98,48 (6,57) 89,06 95,345 (6,84),559,803 (44) 9 Current maturities of LT debt 355,84 34,6 3,598 99,6 78,473 0,689 56,66 63,753 (7,09) 30 Total Current Liabilities,09,38,994,803 96,579,030,5,95,66 04,859 60,860 69,4 (8,8) 3 Resident Trust Fund Liability 65,09 6,50,959 65,09 6,50, Bond income-monitized deferred 9,546 35,396 (3,850) 9,546 35,396 (3,850) LT debt, less current maturities,845,98 3,0,036 (355,838),566,594,865,756 (99,6) 78, ,80 (56,676) 34 less unamortized debt issuance costs (445,488) (469,057) 3,569 (444,564) (467,386),8 (94) (,67) Bond premium, net,54 3,654 (,30),54 3,654 (,30) Net Long-term Liabilities,4,34,755,63 (333,398),44,554,4,04 (77,470) 77, ,608 (55,98) 37 Deferred revenue 47,08 6,494 (79,386) 47,08 6,494 (79,386) Net Assets,876,69,93,444 (55,75),478,365,587,67 (08,90) 397, ,77 53,76 37,63 3,08 6, Total Liabilities and Net Assets 7,893,747 8,86,09 (39,7) 7,57,303 7,539,09 (38,789) 736, ,97 (0,483) 37,63 3,08 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. 4 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

5 Valley Vista Care Statement of Operations For the Twelve Months Ended September 30, 07 DRAFT //07 Valley Vista Obligated Group Budget Valley Vista Care Corp Vista Community Housing REVENUE 3 Private,03,848.45%,09, % 84, % 4 * Medicaid 4,449,94 75.% 4,449, % 0.00% 5 Medicare,9,96 6.7%,9, % 0.00% 6 Other,94,6 6.73%,94,6 6.79% 0.00% 7 Total operating revenue 9,39, % 9,57, % 9,055, % 84, % Revenue variance (33,498) -.70% 8 EXPENSES 9 Administrative,3,35.07%,34,3.97%,309,985.%, % 0 Maintenance 593, % 558,97.86% 550,55.89% 43, 3.45% Dietary,40, %,47,55 7.5%,40, % 0.00% Housekeeping 34,536.78% 335,968.7% 34,536.79% 0.00% 3 Laundry 8,545.9% 40,878.3% 8,.0% % 4 * Patient care 7,77, % 7,447, % 7,77, % 0.00% 5 Behavior management,756, % 3,00,6 5.43%,756, % 0.00% 6 Therapy,093,6 5.68%,3, %,093,6 5.74% 0.00% 7 Social services, % 7, %, % 0.00% 8 Resident activities 386,83.0% 359,703.84% 386,83.03% 0.00% 9 Transportation 08, % 9, % 08, % 0.00% 0 Medical records 69, % 83, % 69, % 0.00% Bad debt 5,39 0.7% 4, % 5,39 0.7% 0.00% Property tax & insurance 37,5 0.9% 36, % 33,76 0.7% 4,075.% 3 Utilities 43,78.4% 399,80.04% 4,99.6% 9,87 0.4% 4 Depreciation 76, % 746, % 683, % 43, % 5 Total expenses 8,535, % 8,603, % 8,44, %, % Expense variance (67,350) -0.36% 6 Operating Income 703, % 968, % 640, % 6, % 7 OTHER INCOME (EXPENSE) 8 Contributions & charitable assistance (73,94) -0.38% (7,76) -0.37% (70,546) -0.37% (,749) -.49% 9 Interest & dividend income 8,07 0.5% 3, % 8,06 0.5% 0.0% 30 Other income (expense) 45, % 6, % 45, % 0.00% 3 Interest & debt issuance expense (offset w/ Monetized Bond Fund (807,307) -4.0% (78,795) -3.99% (790,303) -4.5% (7,004) -9.3% 3 Rental income (expense) 43, % 3, % 3, % 0, % 33 Penalties (67,75) -0.35% % (67,75) -0.35% 0.00% 34 Realized gain (loss) on asset sale (disposal) (,59) -0.0% % (,59) -0.0% 0.00% 35 Realized gain (loss) on investments,85 0.0% 8, %,85 0.0% 0.00% 36 Unrealized gain (loss) market adj 55,77 0.9% % 55,77 0.9% 0.00% 37 Retroactive adjustments 6, % % 6, % 0.00% 38 Total other income (expense) (758,83) -3.94% (775,904) -6.8% (749,88) -3.94% (8,94) -4.85% 39 EXTRAORDINARY INCOME (EXPENSE) % 0.00% % 40 INCREASE (DECREASE) IN UNRESTRICTED NET ASSETS (55,75) -0.9% 9, % (08,90) -0.57% 53,76 9.6% 4 * Medicaid Rate Recovery included in Net Assets above: UPL Revenue :,667,45 P-Tax Expense: 697,90 Net Impact :,969,53 Net Revenues Page 3

6 DRAFT //07 Reconcilliation of change in net assets to net cash provided (used) by operating activities: Valley Vista Obligated Group Combined Statement of Cash Flows September 30, 07 Increase (Decrease) in Cash As of September 30, As of September 30, Change in unrestricted net assets (55,75) 537,669 3 Adjustments to reconcile change in unrestricted net assets to cash provided (used) by operating activities: 4 Depreciation 76, ,985 5 Amortization of bond premium and debt issuance costs,439 8,699 6 Deferred credits (79,386) (0,099) 7 Deferred revenue (3,850) (3,850) 8 Unrealized market adj (55,77) (8,95) 9 Loss (gain) on asset disposal,59 (4,98) 0 Loss (gain) on investments (,85) 7,00 (Increase) decrease in: Accounts receivable,556 6,754 3 Inventories 8,77 (0,6) 4 Prepaid expenses,95 53,804 5 Increase (decrease) in: 6 Accounts payable and accrued expense 8,98 95,07 7 Net cash provided (used) by operating activities 650,979,793,55 8 Cash flows from operating activities 9 Cash received from residents and other services 9,6,5 9,0,608 0 Cash paid to suppliers and employees (7,809,4) (6,398,5) Interest received 30,3 33,684 Interest paid (incl semi-annual bond payment) (80,739) (8,496) 3 Rental income & expense, net 43,700 9,630 4 Contributions and Charitable Assistance, net (73,94) (7,74) 5 Net cash provided (used) by operating activities 650,979,793,55 6 Cash flows from investing activities 7 Proceeds from sale of property and equipment - 4,98 8 Net purchase of investments (34,4) (8,73) 9 Purchases of property and equipment (84,090) (443,437) 30 (Increase) decrease in assets whose use is limited (9,940) (7,3) 3 Net cash provided (used) by investing activities (38,54) (57,939) 3 Cash flows from financing activities 33 Principal payments on long-term debt (34,40) (346,884) 34 Proceeds from long-term debt - 35 Net cash provided (used) by investing activities (34,40) (346,884) 36 Net increase (decrease) in cash (9,55) 98,78 37 Cash and cash equivalents, beginning of period 3,86,98,68,00 38 Cash and cash equivalents, end of period 3,67,43 3,86,98 Cash Flow Page 4

7 Valley Vista Obligated Group Financial Ratios DRAFT //07 as of /3/06 3/3/07 6/30/07 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 Long Term Debt Service Coverage Increase (decrease) in unrestricted funds 55,0 (63,703) (49,467) (55,75) 537,669 53,356 99,56,888,60 3 Add: Unrealized market adj loss 9,673 69,654 0,64 4 Subtract: Unrealized market adj gain (9,974) (3,7) (55,77) (8,95) (9,596) 5 Add: 6 Depreciation expense 83,07 369,94 559,506 76,779 75,83 75, 647,33 594,880 7 Interest & debt issuance expense 99,54 394,08 588,99 807,307 80,048 8, ,98 86,505 8 Income Available for Debt Service 447, ,74 967,30,43,84,984,35,0,67,778,43 3,355,647 9 Actual Debt Service Principal/Interest pmts + Trustee fees 86,54 573,78 88,775,68,980,87,9,89,300,90,07,95,05 0 Long-Term Debt Service Coverage Required.0 Days Cash on Hand 3 Daily operating expense 47,834 48,470 48,9 48,649 46,07 44,396 44,88 4,005 4 Cash - excl investments 4,43,43 3,99,990 3,493,49 3,67,44 3,86,99,87,490 3,55,986 3,55,739 5 Days Cash on Hand Required 45 days - Bond Cash - incl investments 5,933,430 5,59,88 5,044,074 4,77,649 4,699,98 3,634,74 3,55,986 3,55,739 7 Days Cash on Hand Required 45 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. We are required by the bond covenants to increase days cash on hand a minimum of days per year until we have reached 60. Our financing with Wells Fargo requires us to have 75 days including S/T investments. Long-term Debt Service Coverage Ratio and the number of Days Cash on Hand measurements are lending covenants. Actual unrestricted cash as of 9/30/07 $ 3,67,44 Minimum # of days of unrestricted cash 60 48,649 expense/day = $,98,959 Excess (Shortage) of unrestricted cash $ 48,455 Desired # of days of unrestricted cash 75 48,649 expense/day = $ 3,648,699 Excess (Shortage) of unrestricted cash $ (48,85) Ratios Page 5

8 DRAFT //07 Valley Vista Obligated Group Net Revenue Summary - All Locations For the Twelve Months Ended September 30, 07 YTD BUDGET VARIANCE PRIOR YTD FY07 FY06 FY05 FY04 FY03 ST MARIES REVENUE 9,307,084 9,343,0 (36,06) 0% 9,379,3 8,79,635 8,569,845 8,546,06 3 OPERATING EXPENSE 8,67,369 8,0,656 64,73 % 7,739,75 7,364,333 7,4,776 6,57,35 4 PROPERTY COSTS 939,750,008,44 (68,394) -7% 944,7 859,080 84,85,088,6 5 NET REVENUES 99,965 3,30 (3,345) 695, , 305,7 930,70 6 SANDPOINT 7 REVENUE 8,48,59 8,495,663 (3,44) 0% 8,099,3 8,078,00 7,95,786 8,36,506 8 OPERATING EXPENSE 7,668,694 7,689,6 (0,98) 0% 7,40,49 7,08,49 7,00,695 6,578,57 9 PROPERTY COSTS 59,96 575,5 6,674 3% 570,949 55,76 574, ,057 0 NET REVENUES,899 30,788 (8,889) 07,773 36, ,05,0,877 RUPERT REVENUE 844,6 99,39 (85,3) -9% 843, ,633 70, ,6 3 OPERATING EXPENSE 788,760 78,75 6,585 % 79,80 706,06 690, ,777 4 PROPERTY COSTS 95,0 94,9 8 0% 9,75 94,387 97,76 96,59 5 NET REVENUES (39,70) 5,97 (9,998) 30,88 (36,85) (86,68) 3,686 6 LOST RIVER 7 REVENUE 84,90 870,70 (45,80) -5% 795, , , ,869 8 OPERATING EXPENSE 86,45 890,834 (9,383) -3% 794, ,3 797,05 78,4 9 PROPERTY COSTS 300,798 30,389 (,59) -% 97, ,34 305,996 30,396 0 NET REVENUES (337,339) (3,503) (4,836) (96,75) (6,835) (57,69) (47,65) ALL LOCATIONS REVENUE 9,458,774 9,638,885 (80,) -% 9,7,89 8,408,059 8,033,344 8,435,03 3 OPERATING EXPENSE 7,586,74 7,465,88 0,986 % 6,674,4 6,083,97 5,9,69 4,53,608 4 PROPERTY COSTS,97,676,980,706 (53,030) -3%,905,98,8,507,8,550,0,873 5 NET REVENUES (55,76) 9,89 (48,067) 537,670 53,355 99,55,888,6 Summary Net Revenues - All Page 6

9 Valley Vista Care Corporation Census Occupancy YTD As of September 30, 07 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 % 5.3% 86.3%.3% % 7% Private 7, % 6% 3 Private - Behavior Insurance Insurance - Behavior Medicaid 76 9, Medicaid - Behavior 870 0, Medicare 99, Medicare - Behavior Total,94 87% 3,084 85% % 64 86% 86% 4 Private YTD Average % by Pay Source Medicare 3 Medicaid 4 Insurance Sandpoint NH % % 6.% 7% 75.%.9% 6% Private 45, % 3 5 Private - Behavior VA & Insurance - Behavior VA & Insurance Medicaid ,945 6, Medicaid - Behavior 905 0, Medicare 90, Medicare - Behavior % 4 0 Total,880 86%,543 85% % 64 88% Private Medicare 3 Medicaid 4 VA, Ins SM Cottage Care Total % 3,677 84% % 0 87% 3 SM Apartments 9 4 Total 404 7% 4,357 63% 3 63% 7 89% 5 Rupert 9 NHs ACTUAL 7% 6% 8% 7% 6 Private 688 8, NHs BUDGET 5% 6% 77% % 7 Other - Duplex VARIANCE.4% -0.5% 3.5% -4.4% 8 Total % 8,866 84% % 6 90% 9 Antelope Total % 8,696 68% % 8 80% Private Medicare 3 Medicaid 4 VA, Ins Census - Occupancy Page 7

10 Valley Vista Obligated Group Revenue by Type of Service DRAFT //07 FY07 Communities St Maries Campus 8,936,8 47% Valley Vista Care Center Sandpoint 8,479,80 44% Rupert Assisted Living Campus 83,963 4% Antelope Creek Residential Care 5,989 3% Community-based Services 448,95 % 9,0,55 00% Including Other Income and Charitable Assistance FY07 * Private,0,035 % Medicaid 4,449,94 75% Medicare,9,96 7% ** Other,340,380 7% 9,0,55 00% * Charitable Assistance incl in above (83,84) ** Other Income incl in above 45,769 Revenue Statistics