| Brookdale Living Communities, Inc. | |||
| Ticker: | BLCI | 77 West Wacker Drive, Suite 3900 | |
| Exchange: | NASDAQ-National Market | Chicago, IL 60601 | |
| Industry: | Service (SIC Code 8361) | (312) 456-0239 | |
| Type of Shares: | Common Shares | Filing Date: | 9/18/96 | |
| U.S. Shares: | 4,500,000 | Offer Date: | 5/1/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $12.50 - $13.50 | |
| Primary Shares: | 4,500,000 | Offer Price: | $11.50 | |
| Secondary Shares: | 0 | Gross Spread: | $0.81 | |
| Offering Amount: | $58,500,000 | Selling: | $0.47 | |
| Expenses: | $4,000,000 | Reallowance: | $0.10 | |
| Shares Out After: | 10,125,000 |
| Manager | Tier | Phone |
| Friedman, Billings, Ramsey & Co., Inc. | Lead Manager | (703) 312-9571 |
| Issuer's Law Firm: | Winston & Strawn |
| Bank's Law Firm: | Alston & Bird |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 6/30/96 | 6/30/95 | 6/30/96 | ||
| Revenue: | $21.93 | $11.19 | $10.58 | Assets: | $99.64 |
| Net Income: | $1.11 | $0.30 | -$0.69 | Curr Assets: | |
| EPS: | Liabilities: | $103.94 | |||
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | Equity: | -$4.30 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| Brookdale Living Communities, Inc. provides senior and assisted living services to the elderly through its facilities that are located in urban and suburban areas of major metropolitan markets. The company operates nine senior and assisted living facilities containing a total of 1,968 units and, as of August 31, 1996, Brookdale's units were approximately 99% occupied. The company owns seven of such facilities and manages two facilities pursuant to management contracts. With facilities that contain an average of 220 units, the company believes Brookdale is able to achieve economies of scale within its facilities and provide senior and assisted living services in a more cost-effective manner. The company plans to acquire approximately three to five facilities per year containing an aggregate of approximately 800 to 1,000 units, and to commence development of at least three new facilities per year containing approximately 200 units each. |
| Competition |
| The senior and assisted living industry is highly competitive and the company expects that it will become more competitive in the future. The cmpany will continue to face competition from numerous local, regional and national providers of senior and assisted living services. The company will compete with such facilities primarily on the bases of cost, quality of care and the array of services provided. The company will also compete with companies providing home health care based on those factors as well as the reputation, geographic location and physical appearance of facilities and family preferences. |
| Business Plan |
| The company's business strategy is based on the following key elements: 1) acquire and lease existing senior and assisted living facilities; 2) develop the Brookdale prototype facility in targeted markets; 3) focus on opportunities for lower cost of capital; 4) provide access to a full continuum of senior and assisted living services; 5) utilize sophisticated marketing programs to maintain high occupancy rates; 6) utilize operational expertise to enhance profitability; 7) expand facilities where economically advantageous. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to pay the cash portion of the purchase price for the acquired facilities, to pay certain amounts to or on behalf of PGI and various third parties in connection with the formation, to finance a portion of future acquisitions and developments and for working capital and other general corporate purposes. |