Quarterly Report (May 10)
Audited Financials (Sept. 13, 2021)
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.