AdCare Health Systems, Inc. (ADK)

AdCare Health Systems, Inc. is an expanding national leader in the development, ownership, and management of assisted living facilities, skilled nursing and retirement communities. The company’s 3,600 employees provide high-quality care for patients and residents residing in the 44 facilities that it operates with a total of approximately 3,900 beds/units in service.

As a result of better health management and treatments allowing people to live longer, the Census Bureau projects that the population aged 85 and over could grow from 5.7 million in 2008 to 19 million by 2050. AdCare has been successfully pursuing an aggressive M&A growth strategy to bolster its portfolio during a depressed economic climate to capitalize on the imminent demand for senior care over the coming decades.

The fragmented skilled nursing market presents significant consolidation and acquisition opportunities to well-established providers like AdCare. With approximately 16,000 facilities currently in operation, no single provider has a market share of more than a few percent. Leveraging its seasoned senior management team’s substantial senior living, healthcare, and real estate industry experience, the company is focused on advancing its strategic business plan to operate a much larger enterprise.

Since inception, AdCare’s mission has been to provide the highest quality healthcare services to the elderly. With nine straight years of record revenue growth, the company has proven its ability to deliver high-quality care and strong operational efficiency. AdCare is well positioned to continue growing rapidly, both organically and via acquisitions, as industry trends and burgeoning opportunities across the U.S. increase the demand for long-term care.

Key Investment Highlights:

• Aggressive M&A Growth Strategy to Capitalize on Expanding $226 Billion Market
• Long-term Care Market Poised for Steady Expansion through 2050
• More than 25% of Outstanding Shares Owned by Management Team
• Well Established with Nine Straight Years of Record Revenue Growth