Los Angeles pod will add $$$ to this quarters revenues. We will top out over $10M quarter.
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LOS ANGELES, Oct. 10, 2017 (GLOBE NEWSWIRE) -- BLVD Centers Corporation (“BLVD” or the “Company”) (TSXV:CXV), a leading company in the United States addiction recovery industry, today announced it has completed the expansion of its inland Los Angeles Pod, which includes a new outpatient (“IOP”) center with capacity for up to 35 patients for daily treatment, as well as the acquisition of real estate occupied by the residential centers.
BLVD purchased two large homes with several acres of land that it was previously leasing. This residential center acquisition was timed to coincide with the completion of the new IOP center, which is located in close proximity to the existing twelve bed residential center. Previously, residential patients were referred out to other IOP centers not owned by BLVD. With the completion of the IOP center, once fully ramped, all appropriate residential patients will be able to transition to the new IOP and the revenue can be retained by BLVD rather than lost to its competitors.
“This is the first expansion of a new center the Company has had in over five quarters,” said CEO, Chris Heath. “I am proud of our talented launch team for completing this pod. It is a credit to our new business model that we are able to transition our focus from managing existing centers to building new ones. I am looking forward to producing financial results that reflect our growth.”
“I am also pleased that we put our excess cash to use to increase our hard assets while gaining full control over the real estate in which we operate,” continued Mr. Heath. “I believe we will see a nice return from owning these properties and it gives BLVD a bump in cash flow as our overhead from operating these centers is decreased through direct ownership. We continue to execute on our expansion plans and I feel confident that we will see another few centers open soon with commensurate revenue to follow.”
The purchase price of the combined residential centers was approximately $3.5M, for the two large complexes. The Company leveraged approximately $2M of the purchase price with a real estate loan bearing 9% interest. In addition, the Board issued an additional 2,300,000 options to parties at BLVD that are key to the success of the new business model. All options have a strike price of $0.11, vest 1/3 each in September 2018, 2019 and 2020 respectively, and have a 10-year exercise provision.
Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to the Company, with the completion of the IOP center, once fully ramped, all appropriate residential patients being able to transition to the new IOP and that revenue being retained by BLVD, and BLVD producing financial results that reflect its growth, are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. Material factors or assumptions were applied in providing forward-looking information, including: the Company successfully transitioning appropriate residential patients to the Company’s IOP center instead of such patients going to a BLVD competitor; insurance reimbursement remains at levels similar to today; census levels and patient demand remains strong; partners operating their locations profitably; partners reimbursing the Company for any and all working capital loans; additional corporate overhead not being needed. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include, without limitation: changes in law; the ability to implement business strategies and pursue business opportunities; the state of the capital markets; the availability of funds and resources to pursue operations; decline of reimbursement rates; dependence on few payors; possible new drug discoveries; a novel business model; inability to partner with a TMS distributer; dependence on key suppliers; granting of permits and licenses in a highly regulated business; competition; changes in healthcare regulations or insurance coverage, particularly those relating to mental health or younger citizens; difficulty integrating newly acquired businesses; the time, outcome and cost of any inquiries, audits or litigation with insurance providers, or federal, state or local regulators; low profit market segments; as well as general economic, market and business conditions, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis for the year ended February 28, 2017, filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward -looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. The Company's results and forward-looking information and calculations may be affected by fluctuations in exchange rates. All figures are in Canadian dollars unless otherwise indicated.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
BLVD Centers Corporation
Chris Heath
Chief Executive Officer
(424) 372-1123
investorinfo@BLVDcenters.com
www.BLVDir.com