Regional Health Properties Inc (NYSE American: RHE) (NYSE American: RHEpA) a self-managed healthcare real estate investment company that invests primarily in real estate purposed for senior living and long-term care reported results for the year ended December 31 2019

Business Update

• Successfully settled a total of three professional liability claims during the fourth quarter 2019 and the first quarter of 2020
• Commenced a capital improvement plan for the Company's Ohio facilities Management is encouraged by the early results and anticipates further increases in census driving higher cash rents
• Overall portfolio performance continues to stabilize and rent coverage begins to show improvement
• When reviewing occupancy for the first quarter of 2020 census levels continue to remain stable in light of the ongoing COVID-19 pandemic

We made further progress in stabilizing and improving the Company's property portfolio as well as continued to settle additional professional liability claims stated Brent Morrison Regional's Chief Executive Officer The Company also continues to work closely with the Department of Housing and Urban Development for release of funds held in reserve to be used for renovations at the Company's facilities

Morrison continued Also as described in our release dated March 24 2020 and as we are all aware the COVID-19 pandemic is rapidly evolving and we cannot predict the impact that COVID-19 will have on the Company at this time but we applaud the efforts of our operators to keep their residents and employees safe The extent to which COVID-19 could impact our business and results of operations will depend on future developments which are highly uncertain and cannot be predicted with confidence including the duration of the outbreak new information that may emerge concerning the severity of COVID-19 and the actions taken to contain COVID-19 or treat its impact among others

Management periodically monitors a number of facility performance metrics including rent coverages both before and after management fees In the fourth quarter of 2019 the Company's portfolio rent coverage before management fees was 15x and rent coverage after management fees was 12x Occupancy and skilled mix for the Company's portfolio were 800% and 264% for the fourth quarter of 2019 respectively These data exclude the impact of three managed facilities located in Ohio five additional facilities located in Ohio and transitioned to a new operator on December 1 2018 one facility located in North Carolina and transitioned to a new operator on March 1 2019 one facility located in Oklahoma and sold on August 1 2019 one facility located in Georgia and sold on August 1 2019 one facility located in Alabama and sold on August 1 2019 one facility located in Oklahoma and sold on August 28 2019 and two facilities located in Georgia and transitioned to Omega in the first quarter of 2019

Summary of Financial Results for the Three and 12 Months Ended December 31 2019
Total rental revenues in the fourth quarter of 2019 decreased 166% to $46 million from $55 million in the fourth quarter of 2018 Total rental revenues for the 12 months ended December 31 2019 decreased by 87% to $201 million from $220 million for the twelve months ended December 31 2018 The decrease is a result of four facilities sold during the third quarter of 2019 as well as two facilities transitioned to Omega in the first quarter of 2019 The Company generally recognizes all rental revenues on a straight-line rent accrual basis

General and administrative costs decreased 319% to $641000 for the three months ended December 31 2019 compared with $941000 for the same period in 2018 General and administrative costs for the 12 months ended December 31 2019 decreased by 135% to $32 million compared with $37 million for the same period in 2018 For the 12 months ended December 31 2019 and 2018 general and administrative costs include $92000 and $176000 respectively of stock-based compensation expense

Interest expense decreased by $604000 or 453% to $730000 for the fourth quarter of 2019 compared with $13 million for the same period in 2018 Interest expense for the 12 months ended December 31 2019 decreased by $664000 or 112% to $53 million compared to $59 million for the same period in 2018 The decrease is mainly due to the payoff of the Pinecone and Congressional Bank loans during the current year

Income from discontinued operations net of tax for the fourth quarter of 2019 was $215000 compared to income from discontinued operations net of tax of $316000 for the prior year period For the 12 months ended December 31 2019 income from discontinued operations net of tax was $626000 compared to income from discontinued operations of $74000 for the prior year period

Net loss attributable to Regional Health Properties Inc's common stockholders in the fourth quarter of 2019 was $15 million compared with a net loss of $39 million for the fourth quarter of 2018 For the 12 months ended December 31 2019 the net loss attributable to Regional Health Properties Inc's common stockholders was $35 million inclusive of a $65 million pre-tax gain on the sale of assets in the third quarter or $207 per basic and diluted share compared with a net loss of $199 million or $1186 per basic and diluted share in the prior year period

Cash at December 31 2019 totaled $44 million compared with $24 million at December 31 2018 Restricted cash at December 31 2019 totaled $37 million compared to $41 million at December 31 2018 Total debt outstanding at December 31 2019 amounted to $554 million compared with $813 million at December 31 2018 (net of $14 million and $15 million of deferred financing costs at December 31 2019 and 2018 respectively) 

About Regional Health Properties
Regional Health Properties Inc (NYSE American: RHE) (NYSE American: RHEpA) is the successor to AdCare Health Systems Inc and is a self-managed healthcare real estate investment company that invests primarily in real estate purposed for senior living and long-term healthcare through facility lease and sub-lease transactions

Regional currently owns leases or manages for third parties 24 facilities (12 of which are owned by Regional nine of which are leased by Regional and three of which are managed by Regional for third parties)

For more information visit wwwregionalhealthpropertiescom

Important Cautions Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended Words such as expects intends believes anticipates plans likely will seeks estimates and variations of such words and similar expressions are intended to identify such forward-looking statements Statements in this press release regarding future events and developments and our future performance as well as management's expectations beliefs plans estimates or projections relating to the future are forward-looking statements

Forward-looking statements by their nature involve estimates projections goals forecasts and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those projected or contemplated by our forward-looking statements due to various factors including among others: our dependence on the operating success of our operators; the significant amount of and our ability to service our indebtedness; covenants in our debt agreements that may restrict our ability to make investments incur additional indebtedness and refinance indebtedness on favorable terms; the availability and cost of capital; our ability to raise capital through equity and debt financings or through the sale of assets; the effect of increasing healthcare regulation and enforcement on our operators and the dependence of our operators on reimbursement from governmental and other third-party payors; the relatively illiquid nature of real estate investments; the impact of litigation and rising insurance costs on the business of our operators; the impact on us of litigation relating to our prior operation of our healthcare properties; the effect of our operators declaring bankruptcy becoming insolvent or failing to pay rent as due; the ability of any of our operators in bankruptcy to reject unexpired lease obligations and to impede our ability to collect unpaid rent or interest during the pendency of a bankruptcy proceeding and retain security deposits for the debtor's obligations; our ability to find replacement operators and the impact of unforeseen costs in acquiring new properties; and other factors discussed from time to time in our news releases public statements and documents filed by us with the Securities and Exchange Commission from time to time including our Annual Report on Form 10-K Quarterly Reports on Form 10-Q and Current Reports on Form 8-K These forward-looking statements and such risks uncertainties and other factors speak only as of the date of this press release and we expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any other change in events conditions or circumstances on which any such statement is based except to the extent otherwise required by applicable law