ACQUISITIONS (Tables)

9 Months Ended

Sep. 30, 2012

ACQUISITIONS

Schedule of total purchase price

Eaglewood Care Center and Eaglewood Village

On January 1, 2012, the Company acquired the Eaglewood Care Center, a skilled nursing facility and the Eaglewood Village facility, an assisted living facility each located in Springfield, Ohio. The total purchase price was $12.4 million after final closing adjustments.

	(Amounts in 000’s)
Consideration Transferred:
Net proceeds from loans	$	4,693
Seller notes	5,000
Cash from earnest money deposits	250
Cash (prepaid on December 30, 2011)	2,469
Total consideration transferred	$	12,412
Assets Acquired:
Land	$	370
Building	9,656
Equipment and Furnishings	1,199
Intangible Assets — bed licenses	1,282
Goodwill	87
Total assets acquired	12,594
Liabilities Assumed:
Real estate taxes and other	(182		)
Total identifiable net assets	$	12,412

Little Rock, Northridge and Woodland Hills

On April 1, 2012, the Company acquired the Little Rock, Northridge and Woodland Hills facilities, three skilled nursing facilities located in Little Rock, Arkansas. The total purchase price was $27.2 million after final closing adjustments.

	(Amounts in 000’s)
Consideration transferred:
Net proceeds from loans	$	19,732
Cash	5,899
Cash from earnest money deposits	1,600
Total consideration transferred	$	27,231
Assets acquired:
Land	$	1,582
Building	17,256
Equipment and furnishings	1,620
Intangible Assets — bed licenses	6,510
Goodwill	312
Total assets acquired	27,280
Liabilities assumed:
Real estate taxes and other	(49		)
Total identifiable net assets	$	27,231

Abington Place

On April 30, 2012, the Company acquired Abington Place, a skilled nursing facility located in Little Rock, Arkansas. The total purchase price was $3.6 million after final closing adjustments.

	(Amounts in 000s’)
Consideration transferred:
Net proceeds from loans	$	3,296
Cash from earnest money deposits	250
Security deposit for lease/May rent	35
Total consideration transferred	$	3,581
Assets acquired:
Land	$	210
Building	225
Equipment and furnishings	2,090
Intangible assets — bed licenses	840
Goodwill	235
Total assets acquired	3,600
Liabilities assumed:
Real estate taxes and other	(19		)
Total identifiable net assets	$	3,581

Glenvue Nursing Home

On July 2, 2012, the Company acquired Glenvue Nursing, a skilled nursing facility located in Glennville, Georgia. The total purchase price was $8.2 million.

	(Amounts in 000’s)
Consideration transferred:
Net proceeds from loans	$	6,573
Cash from earnest money deposits	1,667
Total consideration transferred	$	8,240
Assets acquired:
Land	$	400
Building	3,815
Equipment and furnishings	285
Intangible Assets — bed licenses	3,020
Goodwill	720
Total assets acquired	8,240
Total identifiable net assets	$	8,240

Quail Creek Health and Rehab

On July 3, 2012, the Company acquired Quail Creek Health and Rehab a skilled nursing facility located in Oklahoma City, Oklahoma. The total purchase price was $6.2 million with assumed fair valued indebtedness of $3.2 million.

	(Amounts in 000’s)
Consideration transferred:
Assumed debt	$	3,200
Cash from earnest money deposits	3,000
Total consideration transferred	$	6,200
Assets acquired:
Land	$	237
Building	3,743
Equipment and furnishings	220
Intangible Assets — bed licenses	1,770
Goodwill	230
Total assets acquired	6,200
Total identifiable net assets	$	6,200

Companions Specialized Care Center

On August 17, 2012, the Company acquired Companions Specialized Care Center, a skilled nursing facility located in Tulsa, Oklahoma. The total purchase price was $5.9 million.

	(Amounts in 000’s)
Consideration transferred:
Net proceeds from loans	$	4,454
Cash from earnest money deposits	662
Common stock issued	750
Total consideration transferred	$	5,866
Assets acquired:
Land	$	780
Building	2,704
Equipment and furnishings	191
Intangible assets — bed licenses	1,530
Goodwill	683
Total assets acquired	5,888
Liabilities assumed:
Real estate taxes and other	(22		)
Total identifiable net assets	$	5,866

Schedule of pro forma results of consolidated operations

	Nine Months Ended September 30,
(Amounts in 000’s)	2012		2011
Pro forma revenue	$	171,447	$	168,888
Pro forma operating expenses	$	165,357	$	161,865
Pro forma income from operations	$	6,090	$	7,023