GlobeNewswire Inc | Mar 31, 2021 05:10PM EDT

March 31, 2021

Greenwood Village, Colorado, March 31, 2021 (GLOBE NEWSWIRE) -- March 31, 2021Global Healthcare REIT, Inc. (Currently in a rebranding effort to Selectis Health, Inc.) (OTC: GBCS) ("Selectis" or the "Company") today reported net income for the fourth quarter of 2020 of $1.3 million, or $0.05 per diluted share, and $2.93 million, or $.11 per diluted share, for the full year 2020. Total revenue increased 202% to $20.93 million for the full year 2020 compared to $6.93 million for 2019.

FOURTH QUARTER HIGHLIGHTS

-- Record revenue of $5,626,471 in Q420 versus revenue of $2,051,382 in Q419, a growth rate of 174% year-over-year; -- Net Income of $1,296,988 in Q420 versus net income (loss) of ($1,049,237) in Q419, a growth rate of 224% year-over-year; -- Earnings per Share of $.05 per share in Q420 versus net income (loss) of ($.04) per share in Q419, a growth rate of 225% year-over-year; -- Companys Board of Directors approved the repurchase for redemption of 104,715 shares of common stock for $26,178 or $0.25 per share in a privately negotiated transaction. The redemption has been completed and the shares of common stock cancelled; -- Implemented rebranding to Selectis Health; -- Addition of new CFO, Brandon Thall; -- Completion of the 29 Bed Acquisition of Fairland Family Care.

YEAR-END 2020 HIGHLIGHTS

-- Record revenue for the Year-End 2020 of $20,928,698 versus revenues of $6,929,988 in 2019, a growth rate of 202% year-over-year; -- Net Income of $2,925,820 for the Year-End 2020 versus net income (Loss) of ($891,614) in 2019, a growth rate of 428% year-over-year; -- Earnings Per Share for the Year-End 2020 of $0.11 per share basic and diluted versus (Loss) of ($0.03) in 2019, a growth rate of 467%. -- Net increase in cash of $2,985,790 to a cash balance of $3,978,303 including restricted cash for the fourth quarter, a 301% percent increase from Year-End 2019 of $992,513; -- Court approved operations transfer agreement to the Companys wholly owned subsidiary Global Eastman, LLC as the operator of the Dodge Eastman facility; -- Company received a line of credit of $500,000 and a construction loan of $750,000 to be used for renovation and capital investment in its Park Place facility from Southern Bank, both loans carry an interest rate of 4.75% on the principal balance; -- Companys Board of Directors approved the repurchase for redemption of 548,146 total shares of common stock for $101,563 or at an average cost of $0.185 per share in privately negotiated transactions. The redemptions have been completed and the shares of common stock cancelled; -- Purchased $402,000 of 13% mezzanine debt notes owed by Goodwill Hunting, LLC; -- Purchase of 86 bed Quapaw Higher Call acquisition.

The Covid-19 pandemic presented historic headwinds to the healthcare industry and the Company in 2020. During the year, we implemented innumerable special protocols at our facilities to ensure our residents continued to have access to a higher quality of care. Despite significant challenges, I am proud to announce that we also delivered excellent financial results highlighted by record revenue and net income in both the fourth quarter and fiscal 2020 for our stakeholders, said Lance Baller, CEO of Selectis Health. For the majority of 2020, we were able to avoid much of the Covid-19 exposure that many of our competitors experienced. However, in early December, we did see an significant increase in cases in all our facilities. While conditions have improved, we anticipate a relatively flat first quarter of 2021. The successful rollout of the Covid-19 vaccines is helping to provide a well-deserved tailwind to our business, and the healthcare industry in general. We are determined to remain vigilant in our efforts to deliver safe, effective care to our residents. Additionally, as we continue to transition our business model and increase our footprint of healthcare facilities, we expect to deliver stronger financial performance across our entire portfolio in the coming year. We are pleased with the foundation of improved financial metrics and patient care that we laid for the Company in 2020. We expect to build on these successes in 2021.

Total Revenue

For the year ended December 31, 2020, total revenue increased 202% to $20.93 million, compared to $6.93 million for the comparable period in 2019. The higher total revenue reflects our focus on our transition to our healthcare business model.

Net Income

For the year ended December 31, 2020, net income was $2.93 million, or $0.11 per diluted share, compared to a net loss of $(892 thousand), or a loss of ($0.03) per diluted share, for the full year 2019.

For the full year 2020, the Companys EPS was $0.11 and normalized after-tax margin was 16.1%.

General and Administrative Expense Ratio

For the year ended December 31, 2020, the G&A ratio was 2.0% compared to 31.3% in 2019. The full year 2020 normalized G&A ratio was 10.2%. This improvement reflects disciplined cost management and the benefits of scale produced by the Companys growth.

Balance Sheet

Cash and investments at the Company amounted to $4.00 million as of December 31, 2020, compared to $1.02 million as of December 31, 2019.

In 2020, the Companys Board of Directors approved the repurchase for redemption of 548,146 shares of common stock for $101,563 at an average cost of $0.1853 per share in privately negotiated transactions. The redemptions have been completed and the shares of common stock cancelled.

Cash Flow

Operating cash flow for the year ended December 31, 2020, amounted to $3.98 million, compared to $992.5 thousand for December 31, 2019, an increase of 301%. This is primarily due to strong operating results, cash flow timing in 2020, and the net impact of timing differences in governmental receivables and payables.

Conference Call

Management will host a conference call to discuss Selectis Healths fourth quarter and year-end 2020 results at 11:00 a.m. Eastern Daylight Time on Thursday, April 1, 2021. The number to call for the interactive teleconference is (877) 407-0789 and the confirmation number is 13718277. A telephonic replay of the call will be available after 2:00 p.m. Eastern Daylight Time on the same day through Thursday April 8, 2021., by dialing (844) 512-2921 and entering the confirmation number 13718277.

SUMMARY OF FOURTH QUARTER AND YEARD-END 2020 RESULTS

GLOBAL HEALTHCARE REIT, INC. CONSOLIDATED BALANCE SHEETS(AUDITED)

December 31, December 31, 2020 2019ASSETS Property and Equipment, Net $ 38,238,367 $ 36,394,587 Cash and Cash Equivalents 3,567,437 641,215 Restricted Cash 410,866 351,298 Accounts Receivable, Net 1,931,569 1,188,100 Investments in Debt Securities 24,387 24,387 Intangible Assets - 15,258 Goodwill 1,076,908 379,479 Prepaid Expenses and Other 682,949 883,839 Total Assets $ 45,932,483 $ 39,878,163 LIABILITIES AND EQUITY Liabilities Debt, Net of discount of $452,593 and $ 38,129,600 $ 36,954,184 $493,353, respectivelyDebt ? Related Parties, Net of discount 1,121,766 1,025,000 of $3,234 and $0, respectivelyAccounts Payable and Accrued Liabilities 3,196,178 1,241,573 Accounts Payable ? Related Parties 9,900 32,156 Dividends Payable 7,500 7,500 Derivative Liability - - Lease Security Deposit 251,600 251,100 Total Liabilities 42,716,544 39,511,513 Commitments and Contingencies Equity Stockholders? Equity Preferred Stock: Series A - No Dividends, $2.00 StatedValue, Non-Voting; 2,000,000 Shares 401,000 401,000 Authorized, 200,500 Shares Issued andOutstandingSeries D - 8% Cumulative, Convertible,$1.00 Stated Value, Non-Voting; 1,000,000 375,000 375,000 Shares Authorized, 375,000 Shares Issuedand OutstandingCommon Stock - $0.05 Par Value;50,000,000 Shares Authorized, 26,866,379and 27,441,040 Shares Issued and 1,343,319 1,372,052 Outstanding at June 30, 2020 and December31, 2019, respectivelyPrepaid Stock Compensation - - Additional Paid-In Capital 10,331,065 10,385,417 Accumulated Deficit (9,036,400 ) ) (11,962,220Total Global Healthcare REIT, Inc. 3,413,984 571,249 Stockholders? EquityNoncontrolling Interests (198,045 ) (204,599 ) Total Equity 3,215,939 366,650 Total Liabilities and Equity $ 45,932,483 $ 39,878,163

GLOBAL HEALTHCARE REIT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (AUDITED)

Twelve Months Ended Three Months Ended December 31, December 31, 2020 2019 2020 2019 Revenue Rental Revenue $ 2,112,459 $ 3,267,644 $ 483,555 $ 478,424 Healthcare 18,816,239 3,662,344 5,142,916 1,572,958 RevenueTotal Revenue 20,928,698 6,929,988 5,626,471 2,051,382 Expenses General and 2,088,722 1,298,593 365,569 407,562 AdministrativePropertyTaxes,Insurance and 13,384,322 2,760,227 4,626,520 1,163,392 OtherOperatingProvision for 292,529 155,833 62,730 155,833 Bad DebtAcquisition 207,899 62,882 (2,047 ) 56,111 CostsDepreciation 1,580,300 1,351,810 405,401 381,976 Total Expenses 17,553,772 5,629,345 5,458,173 2,164,874 Income (Loss)from 3,374,926 1,300,643 168,298 (113,492 )OperationsOther (Income) ExpenseGain onWarrant - (2,785 ) - - Liability(Gain) Loss onExtinguishment (1,727,349 ) - (1,646,949 ) - of Debt(Gain) Loss onSale of - (1,069 ) - - InvestmentsGain onProceeds from - (158,161 ) - 165,857 InsuranceClaimLoss onWrite-Off of - 250,000 - 250,000 NoteReceivableInterest (465 ) (56,012 ) - (29,764 )IncomeInterest 2,140,366 2,136,701 507,364 541,338 ExpenseTotal Other(Income) 412,552 2,168,674 (1,139,585 ) 927,431 ExpenseNet Income 2,962,374 (868,031 ) 1,307,883 (1,040,923 )(Loss)Net LossAttributableto (6,554 ) 6,417 (3,395 ) (814 )NoncontrollingInterestsNet Income(Loss)Attributable 2,955,820 (861,614 ) 1,304,488 (1,041,737 )to GlobalHealthcareREIT, Inc.Series DPreferred (30,000 ) (30,000 ) (7,500 ) (7,500 )DividendsNet Income(Loss)Attributable $ 2,925,820 $ (891,614 ) $ 1,296,988 $ (1,049,237 )to CommonStockholdersPer Share Data:Net Income(Loss) perShare Attributableto CommonStockholders:Basic $ 0.11 $ (0.03 ) $ 0.05 $ (0.04 )Diluted $ 0.11 $ (0.03 ) $ 0.05 $ (0.04 )WeightedAverage Common SharesOutstanding:Basic 27,247,531 27,282,385 26,916,460 27,441,040 Diluted 27,630,031 27,282,385 27,298,960 27,441,040

Forward Looking Statements

This earnings release and the Companys accompanying oral remarks contain forward-looking statements regarding its 2021 guidance, as well as its plans, expectations, and the Companys expectations regarding future developments. Actual results could differ materially due to numerous known and unknown risks as well as uncertainties. These risks and uncertainties are discussed under the headings Forward-Looking Statements, and Risk Factors, in the Companys Annual Report on Form 10-K for the year ended December 31, 2019, and also in its Quarterly Reports on Form 10-Q for the periods ended March 31, 2020, June 30, 2020, and September 30, 2020, which are on file with the SEC. Additional information will also be set forth in the Companys Annual Report on Form 10-K for the year ended December 31, 2020.

These reports can be accessed under the investor relations tab of the Companys website or on the SECs website atsec.gov. Given these risks and uncertainties, the Company can give no assurances that its forward-looking statements will prove to be accurate, or that any other results or developments projected or contemplated by its forward-looking statements will in fact occur, and the Company cautions investors not to place undue reliance on these statements. All forward-looking statements in this release represent the Companys judgment as of the date of this release, except as otherwise required by law, the Company disclaims any obligation to update any forward-looking statement to conform the statement to actual results or changes in its expectations.

For Further Information Contact:Brandon Thallinvestors@selectis.com