Updated: Selectis Health Reports First Quarter 2021 Financial Results

Greenwood Village, Colorado, May 20, 2021 (GLOBE NEWSWIRE) -- Global Healthcare REIT, Inc. (Currently in a rebranding effort to Selectis Health, Inc.) (OTC: GBCS) ("Selectis" or the "Company") today reported net income for the first quarter of 2021 of $240,566, or $0.01 per diluted share. Total revenue increased 49.6% to $5.76 million for the first quarter of 2021 compared to $3.85 million for the same period of 2020.


  • Record revenue of $5,762,843 in 1Q21 versus revenue of $3,851,601 in 1Q20, a growth rate of 49.6% year-over-year;
  • Net Income (loss) of $240,566 in 1Q21 versus net income of $53,600 in 1Q20, a growth rate of 348.8% year-over-year;
  • Earnings (loss) per Share of $0.01 per share in 1Q21 versus net income of $0.00 per share in 1Q20, a growth rate of 100% year-over-year;
  • Reopening of our Oklahoma City facility;
  • Implemented rebranding to Selectis Health;
  • Addition of new President and COO, Randy Barker;
  • Implementation of new expense platform.

“During the first quarter of 2021 we successfully reopened our Oklahoma City facility. The Company spent almost $1M updating and renovating this facility. We hired an exemplary director and have begun to build out the remaining infrastructure to ensure this property will not only add value to our portfolio of healthcare facilities, but it will help in the revitalization of this corner of Oklahoma City, providing exceptional service to our residents and patients. We opened our doors on March 26 and are very pleased to announce we have several residents already and will begin our Centers for Medicare and Medicaid Services (“CMS”) certification process in order to begin billing,” said Lance Baller, CEO of Selectis Health. “We now operate seven of our properties and will continue to see growth come from within our current portfolio as we optimize our operations at these facilities. The Leadership team is still committed to finding future healthcare facilities that will enhance our portfolio and drive increased shareholder value and quality healthcare. As a result of the increased number of COVID-19 exposures in our facilities our first quarter earnings were slightly positive. We have observed that it takes three to six months per facility to recover from a COVID exposure in our rural settings. Additionally, our Tulsa facility is dealing with damage sustained during the extreme cold weather and the census is at a reduced level until the repairs are completed within the next sixty days. We continue to remain vigilant with our COVID protocols in our facilities and will continue to adhere to state and local guideless to protect and safeguard our residents and their families, especially as we begin to welcome their loved ones back to visit in our centers due to increasing availability of vaccines. We expect to have a COVID tailwind over the coming weeks and months and look forward to sharing the news of our success with all of our stakeholders.”

Total Revenue

For the three months ended March 31, 2021, total revenue increased 49.6% to $5.76 million, compared to $3.85 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 March 31, 2021, net income was $240,556, or $0.01 per diluted share, compared to net income of $54,101, or $0.00 per diluted share, for the comparable period of 2020.

For the three months ended March 31, 2021, the Company’s normalized after-tax margin was 4.17%.

General and Administrative Expense Ratio

For the three months ended March 31, 2021, the G&A ratio was 36.4% compared to 8.9% in 2020. This change reflects increased cost of operating healthcare facilities, rather than simply renting to tenants.

Balance Sheet

Cash and investments at the company amounted to $3.81 million as of March 31, 2021, compared to $4.00 million as of December 31, 2020.

Cash Flow

Operating cash flow used for the three months ended March 31, 2021, amounted to ($664,847), compared to $252,424 for the comparable period of 2020, a decrease of 363%. This is primarily due to reopening of the Oklahoma City facility, and extra cost incurred, as well as lower revenues and increased costs due to COVID-19 including one time payments incurred in the period.

Conference Call

Management will host a conference call to discuss Selectis Health’s first quarter results at 11:00 a.m. Eastern Time on Thursday, May 20, 2021. The number to call for the interactive teleconference is (877) 407-0789 and the confirmation number is 13720076. A telephonic replay of the call will be available after 2:00 p.m. Eastern Daylight Time on the same day through Friday, May 28, 2021, by dialing (844) 512-2921 and entering the confirmation number 13720076.



  March 31, 2021  December 31, 2020 
Current Assets        
Cash and Cash Equivalents $3,378,862  $3,567,437 
Restricted Cash  410,866   410,866 
Accounts Receivable, Net  2,272,978   1,931,569 
Prepaid Expenses and Other  741,692   682,949 
Investments in Debt Securities  24,387   24,387 
Total Current Assets  6,828,785   6,617,208 
Long Term Assets        
Property and Equipment, Net  38,015,253   38,238,367 
Goodwill  1,076,908   1,076,908 
Total Assets $45,920,946  $45,932,483 
Current Liabilities        
Accounts Payable and Accrued Liabilities  $3,282,997   $3,196,178 
Accounts Payable – Related Parties  72,800   9,900 
Dividends Payable  7,500   7,500 
Current Maturities of Long Term Debt, Net of Discount of $751 and $1,714, respectively  12,502,972   19,299,156 
Debt – Related Parties, Net of discount of $3,234 and $3,234, respectively  1,121,766   1,121,766 
Total Current Liabilities  16,988,035   23,634,500 
Debt, Net of discount of $416,865 and $450,879, respectively  25,215,666   18,830,444 
Lease Security Deposit  250,100   251,600 
Total Liabilities  42,453,801   42,716,544 
Commitments and Contingencies        
Preferred Stock:        
Series A - No Dividends, $2.00 Stated Value, Non-Voting; 2,000,000 Shares Authorized, 200,500 Shares Issued and Outstanding  401,000   401,000 
Series D - 8% Cumulative, Convertible, $1.00 Stated Value, Non-Voting; 1,000,000 Shares Authorized, 375,000 Shares Issued and Outstanding  375,000   375,000 
Common Stock - $0.05 Par Value; 50,000,000 Shares Authorized, 26,866,379 and 26,866,379 Shares Issued and Outstanding at March 31, 2021 and December 31, 2020, respectively  1,343,319   1,343,319 
Additional Paid-In Capital  10,331,065   10,331,065 
Accumulated Deficit  (8,795,844)  (9,036,400)
Total Global Healthcare REIT, Inc. Stockholders’ Equity  3,654,540   3,413,984 
Noncontrolling Interests  (187,395)  (198,045)
Total Equity  3,467,145   3,215,939 
Total Liabilities and Equity $45,920,946  $45,932,483 


  Three Months Ended 
  March 31, 
  2021  2020 
Rental Revenue $390,386  $521,012 
Healthcare Revenue  5,372,457   3,330,589 
Total Revenue  5,762,843   3,851,601 
Property Taxes, Insurance and Other Operating  3,544,730   2,331,744 
General and Administrative  2,098,327   343,063 
Provision for Bad Debts  24,134   206,608 
Acquisition Costs  -   14,891 
Depreciation and Amortization  401,023   387,218 
Total Expenses  6,068,214   3,283,524 
Income from Operations  (305,371)  568,077 
Other Income        
Interest Expense  543,543   505,270 
Gain on Forgiveness of PPP Loan  (675,598)  - 
Other Income  (432,022)  - 
Total Other (Income) Expense  (564,077)  505,270 
Net Income  258,706   62,807 
Net (Income) Loss Attributable to Noncontrolling Interests  (10,650)  (1,707)
Net Income Attributable to Global Healthcare REIT, Inc.  248,056   61,100 
Series D Preferred Dividends  (7,500)  (7,500)
Net Income Attributable to Common Stockholders $240,556  $53,600 
Per Share Data:        
Net Income per Share Attributable to Common Stockholders:        
Basic $0.01  $0.00 
Diluted $0.01  $0.00 
Weighted Average Common Shares Outstanding:        
Basic  26,866,379   27,441,040 
Diluted  27,605,688   27,441,040 

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

This earnings release and the Company’s accompanying oral remarks contain forward-looking statements regarding its 2021 guidance, as well as its plans, expectations, and the Company’s 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 Company’s 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 Company’s website or on the SEC’s website at sec.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 Company’s 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 Thall