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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K/A
AMENDMENT NO. 1
(AMENDING ITEM 7(B))
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: December 31, 1996
(Date of earliest event reported)
ALTERNATIVE LIVING SERVICES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE, 1-11999 39-1771281
(State or other jurisdiction of (Commission file number) (I.R.S. Employer
incorporation or organization) Identification No.)
450 N. SUNNYSLOPE ROAD, SUITE 300
BROOKFIELD, WISCONSIN 53005
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(414) 789-9565
(Registrant's telephone number, including area code)
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This Amendment No. I supplements the Current Report on Form 8-K filed
on January 14, 1997 (the "Form 8 K") by Alternative Living Services, Inc. (the
"Company"). At the time of filing the Form 8-K, it was impracticable for the
Company to provide the pro forma financial information required by Item 7(b).
Item 7. Financial Statements, Pro Forma
(b) Pro Forma Financial Information.
Included in this Report are the following pro forma
financial statements of Alternative Living Services,
Inc:
(1) Alternative Living Services, Inc. and
subsidiaries unaudited Pro Forma
Condensed Consolidated Balance Sheet
at December 31, 1996;
(2) Alternative Living Services, Inc., unaudited
Pro Forma Condensed Combined Statement of
Operations for the Year Ended December 31,
1996;
(3) Alternative Living Services, Inc., unaudited
Notes to Pro Forma Condensed Consolidated
Financial Statements.
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ALTERNATIVE LIVING SERVICES, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1996
(IN THOUSANDS)
1996 (A)
--------
ASSETS
<TABLE>
<CAPTION>
<S> <C>
Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,399
Property, plant and equipment, net . . . . . . . . . . . . . . . . . . 79,860(ii)
Long-term investments . . . . . . . . . . . . . . . . . . . . . . . . . 1,171
Investments in and advances to unconsolidated affiliates . . . . . . . 1,649
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,812
--------
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . $126,891
========
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 19,027
Long-term debt, less current installments . . . . . . . . . . . . . . . 28,649(iv)
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . 123
Deferred gain on sale . . . . . . . . . . . . . . . . . . . . . . . . . 7,310
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,888
Stockholders' equity:
Common stock and additional paid-in capital . . . . . . . . . . . 76,108
Accumulated deficit . . . . . . . . . . . . . . . . . . . . . . . (10,214)
Total stockholders' equity . . . . . . . . . . . . . . . . . . 65,894
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Total liabilities and stockholders' equity . . . . . . . . . . $126,891
========
</TABLE>
See accompanying notes to consolidated financial statements.
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ALTERNATIVE LIVING SERVICES, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
The Company
The Meditrust Pro Forma
Company Sale/Leaseback(A) As Adjusted
------- ----------------- -----------
<S> <C> <C> <C>
Revenue 39,599 0 39,599
Operating Expense:
Residence operations 25,710 25,710
Lease expense 6,053 2,649 (i) 8,702
General & administrative 7,933 7,933
Depreciation & amortization 2,994 (785)(ii) 1,920
(289)(iii)
Non-recurring charge 976 976
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Total operating expenses 43,666 1,575 45,241
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Operating loss (4,067) (1,575) (5,642)
Interest expense (net) (3,740) 1,547(iv) (1,293)
900 (v)
Equity in losses of
unconsolidated affiliates (52) (5)(vi) (57)
Other income (expense) (28) (28)
Minority interest 76 (22)(vii) 54
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Total other expenses, net (3,744) 2,420 (1,324)
---------- ------- ---------
Net Loss $ (7,811) 844 $ (6,966)
========== ======= =========
Net loss per share $ (0.79) $ (0.70)
========== =========
Weighted average shares
outstanding 9,889 9,889
========== =========
</TABLE>
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ALTERNATIVE LIVING SERVICES, INC.
UNAUDITED PRO FORMA NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
(A) To record effects of December 31, 1996 sale/leaseback of twelve
residences. The pro forma adjustments of expenses and net loss were
made for the number of months each residence was in operation. These
residences and the number of months in operation are: Clare Bridge of
Lower Makefield (11 months), Clare Bridge of Montgomery (4 months),
Clare Bridge of Tampa (1 month), and Clare Bridge of Fort Myers (1
month). In addition, several residences were in partnerships for part
of 1996. The impact of the sale/leaseback is reflected in the equity
in subsidiaries or minority interest depending on ownership. These
residences, ALS's partnership percentage, and number of months in
partnerships are: Hamilton House of Ann Arbor (25%, 5 months),
Hamilton House of Farmington Hills I (22.5%, 5 months), Hamilton House
of Farmington Hills II (22.5%, 5 months), Hamilton House of Utica
(25%, 5 months), Clare Bridge of Lower Makefield (60%, 7 months), and
Northampton Manor (60%, 8 months). The Meditrust sale/leaseback
impact is:
(i) an increase in lease expense of $2.6 million, (ii) a decrease in
depreciation expense of $785,000 due to the sale of $25.0 million of
property, plant, and equipment, (iii) $290,000 amortization of $5.7
million deferred gain, (iv) a decrease of $1.5 million of interest
related to the $24.1 million of long-term debt paid off with
sale/leaseback proceeds, (v) interest income of $900,000 on the $18.0
million net proceeds, (vi) $5,000 increase in equity in subsidiaries
income, (vii) $22,000 increase in minority interest income.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant
has duly caused this amendment to be signed on its behalf by the undersigned
thereunto duly authorized.
Dated: March 17, 1997
ALTERNATIVE LIVING SERVICES, INC.
(Registrant)
By: /s/ Thomas E. Komula
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Thomas E. Komula, Senior Vice President
Treasurer and (Chief Financial Officer
