GlobeNewswire Inc | Nov 16, 2021 08:57AM EST

November 16, 2021

Greenwood Village, Colorado, Nov. 16, 2021 (GLOBE NEWSWIRE) -- Selectis Health, Inc. (OTC: GBCS) ("Selectis" or the "Company") today reported a Net Loss for the three months ended September 30, 2021, of $0.06 million, or a net loss of $0.02 per diluted share. Total revenue increased to $7.32 million for the third quarter of 2021 compared to $6.32 million for the same period of 2020.

THIRDQUARTER HIGHLIGHTS

-- Record revenue of $7.32 million in 3Q21 versus revenue of $6.32 million in 3Q20, a growth rate of 15.8% year-over-year; -- Net Loss of $0.06 million in 3Q21 versus Net Income of $0.46 million in 3Q20; -- Earnings (Loss) per Share of $(0.02) per share in 3Q21 versus Earnings (Loss) per Share of $0.15 diluted in 3Q20; -- Completed a $750,000 fund raise; -- Completed rebranding to Selectis Health, Inc. received approval from FINRA; -- 1-for-10 reverse stock split occurred on September 22, 2021; -- Refinanced Southern Hills campus mortgage, $8,029,800 for 35 years at 2.38% annual; -- Began managing operations in two facilities owned in Georgia; -- Increased occupancy 57% at the independent living facility from 14 to 22 residents, as of September 30, 2021, which has continued to increase into the third quarter; -- The Company replaced three facility Executive Directors and three Directors of Nursing, to realign all facilities with the current direction of operations;

During the third quarter of 2021 we reached a significant number of very important milestones: the fund raise, the reverse split, approval from FINRA for our rebranding, the noteworthy refinance of our Southern Hills Campus, the Medicare and Medicaid approval at Park Place, and the completion of our assumption of operations at the two Georgia facilities; our team worked very diligently, and I am extremely pleased with where we are, and where we are heading, said Lance Baller, CEO of Selectis. Notwithstanding, COVID remains a focus for our operations and the teams on the front-lines. We are doing everything in our power to ensure the health and safety of our staff, residents, and their loved once is first-and-foremost on our minds as we provide care day in and day out. Our censuses are improving, and we are pleased with the operational gain we made for the quarter. I believe we are laying the foundation for a very positive 2022 as we get through the previous unexpected, setbacks we experienced in this calendar year.

We completed many of the renovations which hampered several of our censuses during the second quarter, and you can see this in our financial results. We hope that the patients and residents, in the communities we serve, will continue to move towards a return to normalcy; which means receiving elective surgeries in hospital settings, which will increase our therapy revenues, and most importantly that we continue to hire quality nurses and care-providers so that we can better control our staffing costs, said Randy Barker, President and COO of Selectis. We are pleased with the management teams we are hiring at the facilities. We will continue to monitor their progress to ensure all facilities are optimally staffed, and our census are as close to where we want them to be at all times.

Total Revenue

For the three months ended September 30, 2021, total revenue increased 15.8% to $7.32 million, compared to $6.32 million for the comparable period in 2020. The higher total revenue reflects our focus on our transition of our business model.

Net Income

For the three months ended September 30, 2021, the net loss was $0.06 million, or $(0.02) per diluted share, compared to net income of $0.46 million , or $0.15 per diluted share, for the comparable period of 2020. The Company took a non-cash impairment charge on the future termination of leases for the Sparta and Warrenton, GA facilities of the remaining balance of $354,710 in the third quarter due to the accounting requirements for straight-line lease expenses and pending termination of agreements. These entities also celebrated the completion of the CHOW applications and the fact that the wholly-owned subsidiary began billing CMS for Medicare. Across all facilities, and due to COVID the company faced shortages of nursing staffing and incurred $532,030 in agency staffing for the third quarter, despite having record number of nurses.

As anticipated, the newly opened Park Place facility continues to incur losses as the Company awaited CMS certification and approval to accept and care for Medicare and Medicaid patients. For the quarter, Park Place incurred a $234,340 loss. This is tracking very similar to our other facilities as we reopened them. Management anticipated this facility to continue to generate negative net income until the after the certification is granted, and we are able to increase the number of our Medicare and Medicaid residents at this facility. Now that these certifications are approved we anticipate a steady increase in the census at this facility until we reach optimal occupancy.

General and Administrative Expense Ratio

For the three months ended September 30, 2021, the G&A ratio was 23.5% compared to 15.9% for the same period last year. This change reflects increased cost of operating healthcare facilities, rather than simply renting to tenants. The G&A expenses include all costs except dietary wages, nursing wages, maintenance wages, and therapy wages.

Balance Sheet

Cash and investments at the Company amounted to $3.61 million as of September 30, 2021, compared to $4.00 million as of December 31, 2020.

Cash Flow

Operating cash flow used for the nine months ended September 30, 2021, amounted to $1.60 million, compared to $2.9 million provided in the comparable period of 2020. This is primarily due to the lower than anticipated census due to lingering effects of COVID, the inclement weather in the late winter and the correlated construction to repair the facilities, and the reopening and recertification of the Park Place facility, a handful of non-cash transactions from many different factors including the straight-line rent write down from the termination of the Sparta and Warrenton leases, many of these costs were one-time expenses.

Conference Call

Management will host a conference call to discuss Selectis Healths third quarter results on November 16, 2021, at 4:15 PM EST (1:15 PM PST), during which Selectis management will discuss the Companys third quarter 2021 performance.

The number to call for the interactive teleconference is (877)-705-6003 and the confirmation number is 13725159. A telephonic replay of the call will be available after 7:15 PM EST on the same day through Tuesday, November 30, 2021, by dialing (844)-512-2921 and entering the confirmation number 13725159. .

SUMMARY OF THIRDQUARTER RESULTS

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

September December 31, 30, 2021 2020 (Unaudited) ASSETS Current Assets Cash and Cash Equivalents $ 2,791,585 $ 3,567,437 Restricted Cash 822,273 410,866 Accounts Receivable, Net 4,438,706 1,931,569 Prepaid Expenses and Other 336,931 682,949 Investments in Debt Securities 24,387 24,387 Total Current Assets 8,413,882 6,617,208 Long Term Assets Property and Equipment, Net 37,445,777 38,238,367 Goodwill 1,076,908 1,076,908 Total Assets $ 46,936,567 $ 45,932,483 LIABILITIES AND EQUITY Current Liabilities Accounts Payable and Accrued Liabilities 3,444,425 3,196,178 Accounts Payable ? Related Parties 9,990 9,900 Dividends Payable - 7,500 Current Maturities of Long Term Debt, Net of 5,287,453 19,299,156 Discount of $1,184 and $1,714, respectivelyShort term debt ? Related Parties, Net of 275,000 1,121,766 discount of $0 and $3,234, respectivelyTotal Current Liabilities 9,016,868 23,634,500 Debt- Related Parties, Net of discount of 849,637 - $363 and $0, respectivelyDebt, Net of discount of $599,883 and 33,418,564 18,830,444 $450,879, respectivelyLease Security Deposit 258,600 251,600 Total Liabilities 43,543,669 42,716,544 Commitments and Contingencies Equity Preferred Stock: Series A - No Dividends, $2.00 Stated Value,Non-Voting; 2,000,000 Shares Authorized, 401,000 401,000 200,500 Shares Issued and OutstandingSeries D - 8% Cumulative, Convertible, $1.00Stated Value, Non-Voting; 1,000,000 Shares 375,000 375,000 Authorized, 375,000 Shares Issued andOutstanding Common Stock - $0.05 Par Value; 50,000,000Shares Authorized, 2,890,362 and 2,686,638 144,518 134,332 Shares Issued and Outstanding at September30, 2021 and December 31, 2020, respectivelyAdditional Paid-In Capital 12,014,996 11,540,052 Accumulated Deficit (9,542,616 ) (9,036,400 )Total Selectis Health, Inc. Stockholders? 3,392,898 3,413,984 EquityNoncontrolling Interests - (198,045 )Total Equity 3,392,898 3,215,939 Total Liabilities and Equity $ 46,936,567 $ 45,932,483

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

Nine Months Ended Three Months Ended September 30, September 30, 2021 2020 2021 2020 Revenue Rental Revenue $ 933,360 $ 1,628,904 $ 155,071 $ 484,299 Healthcare 17,936,432 13,673,323 6,939,841 5,835,862 RevenueManagement Fee 224,143 - 224,143 - RevenueTotal Revenue 19,093,935 15,302,227 7,319,055 6,320,161 Expenses PropertyTaxes,Insurance and 12,613,896 8,757,802 4,413,930 3,771,827 OtherOperatingGeneral and 4,732,115 1,723,153 1,721,292 1,007,383 AdministrativeProvision for(Recovery of) 28,275 229,799 12,142 (34,091 )Bad DebtsAcquisition - 209,946 - 181,292 CostsDepreciationand 1,286,279 1,174,899 435,013 406,796 AmortizationTotal Expenses 18,660,565 12,095,599 6,582,377 5,333,207 Income from 433,370 3,206,628 736,678 986,954 OperationsOther (Income) ExpenseGain onExtinguishment - (80,400 ) - - of DebtInterest 1,680,540 1,632,537 486,816 515,966 Expense, netGain onForgiveness of (675,598 ) - - - PPP LoanOther Income (548,933 ) - (51,856 ) - LeaseTermination 450,427 - 354,710 - ExpenseTotal Other(Income) 906,436 1,552,137 789,670 515,966 ExpenseNet Income (473,066 ) 1,654,491 (52,992 ) 470,988 (Loss)Net LossAttributableto (10,650 ) (3,159 ) - (4,311 )NoncontrollingInterestsNet Income(Loss)Attributable (483,716 ) 1,651,332 (52,992 ) 466,677 to SelectisHealth, Inc.Series DPreferred (22,500 ) (22,500 ) (7,500 ) (7,500 )DividendsNet Income(Loss)Attributable $ (506,216 ) $ 1,628,832 $ (60,492 ) $ 459,177 to CommonStockholdersPer Share Data:Net Income(Loss) perShare Attributableto CommonStockholders:Basic $ (0.18 ) $ 0.60 $ (0.02 ) $ 0.17 Diluted $ (0. 18 ) $ 0.53 $ (0.02 ) $ 0.15 WeightedAverage Common SharesOutstanding:Basic 2,741,186 2,735,222 2,824,560 2,720,245 Diluted 2,741,186 3,117,722 2,824,560 3,102,745

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

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, 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