Mon 06/06/2022 17:31 PM
Share this article:
Relevant Documents:
Quarterly Report (May 10)
Audited Financials (Sept. 13, 2021)
Official Statement
Issue Details

JHA Services Inc., which owns The Cedars senior living facility in Portland, Maine, reported operating revenue $4.2 million lower than projected for the quarter ending April 30, according to a quarterly report posted to EMMA last Tuesday, May 31. The company was in compliance with its financial covenants for its fiscal year ending April 30 but reported that census was lower than budgeted at its skilled nursing and assisted living facilities, because of “the inability to admit new residents based on [the company’s] current staffing levels.” Specifically, the company reports that it has had a “difficult time filling open direct care positions.”

Skilled nursing occupancy was 75% through April 30 compared with a budgeted occupancy of 89%. Assisted living occupancy was 79% through April 30 compared with a budgeted occupancy of 96%. Additionally, independent living occupancy was 90% through April 30 compared with a budgeted occupancy of 87%.

As of April 30, 2021, the date of JHA’s latest audited financial statements, the company reported $41.8 million of Series 2019 bonds outstanding. The bonds were issued by the Maine Public Finance Authority. The company is required to maintain 90 days’ cash on hand, or DCOH, as of April 30, and 100 days as of each Oct. 31 and April 30 thereafter.

The company is also required to maintain a debt service coverage ratio, or DSCR, of 1x, which increases to 1.2x following the first fiscal year after certain capital improvements projects have been completed and occupancy reaches 90%. JHA’s fiscal year ends April 30.

For the fourth quarter ending April 30, JHA reported a DSCR of 1.3x on $3.3 million of income available for debt service coverage. The company had 139 DCOH, or $8.4 million in total unrestricted cash and investments.
Share this article:
This article is an example of the content you may receive if you subscribe to a product of Reorg Research, Inc. or one of its affiliates (collectively, “Reorg”). The information contained herein should not be construed as legal, investment, accounting or other professional services advice on any subject. Reorg, its affiliates, officers, directors, partners and employees expressly disclaim all liability in respect to actions taken or not taken based on any or all the contents of this publication. Copyright © 2022 Reorg Research, Inc. All rights reserved.
Thank you for signing up
for Reorg on the Record!