Summarized Condensed Consolidating and Combining Information (Tables)

6 Months Ended

Jun. 30, 2015

Summarized Condensed Consolidating And Combining Information [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEETS

JUNE 30, 2015

(in thousands, except share and per share amounts)



	Parent Guarantor			Issuers			Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries			Elimination			Consolidated
Assets:
Real estate investments, net	$	—		$	59,790		$	357,318	$	42,407		$	—		$	459,515
Other real estate investments	—			—			7,987		—			—			7,987
Cash and cash equivalents	—			29,904			—		—			—			29,904
Accounts receivable	—			122			1,790		124			—			2,036
Prepaid expenses and other assets	133			2,155			4		—			—			2,292
Deferred financing costs, net	—			8,970			—		472			—			9,442
Investment in subsidiaries	113,243			350,032			—		—			(463,275		)	—
Intercompany	—			—			36,831		2,738			(39,569		)	—
Total assets	$	113,376		$	450,973		$	403,930	$	45,741		$	(502,844	)	$	511,176
Liabilities and Equity:
Senior unsecured notes payable	$	—		$	260,000		$	—	$	—		$	—		$	260,000
Mortgage notes payable	—			—			507		96,347			—			96,854
Secured revolving credit facility	—			35,000			—		—			—			35,000
Accounts payable and accrued liabilities	—			3,161			2,219		566			—			5,946
Dividends payable	5,090			—			—		—			—			5,090
Intercompany	—			39,569			—		—			(39,569		)	—
Total liabilities	5,090			337,730			2,726		96,913			(39,569		)	402,890
Equity:
Common stock, $0.01 par value; 500,000,000 shares authorized, 31,306,782 shares issued and outstanding as of June 30, 2015	313			—			—		—			—			313
Additional paid-in capital	246,701			116,773			374,660		(52,899		)	(438,534		)	246,701
Cumulative distributions in excess of earnings	(138,728		)	(3,530		)	26,544		1,727			(24,741		)	(138,728		)
Total equity	108,286			113,243			401,204		(51,172		)	(463,275		)	108,286
Total liabilities and equity	$	113,376		$	450,973		$	403,930	$	45,741		$	(502,844	)	$	511,176

CONDENSED CONSOLIDATING BALANCE SHEETS

DECEMBER 31, 2014

(in thousands, except share and per share amounts)



	Parent Guarantor			Issuers			Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries			Elimination			Consolidated
Assets:
Real estate investments, net	$	—		$	26,104		$	366,199	$	43,912		$	—		$	436,215
Other real estate investments	—			—			7,532		—			—			7,532
Cash and cash equivalents	—			25,320			—		—			—			25,320
Accounts receivable	—			—			2,170		121			—			2,291
Prepaid expenses and other assets	—			808			1		—			—			809
Deferred financing costs, net	—			9,808			—		597			—			10,405
Investment in subsidiaries	117,408			335,020			—		—			(452,428		)	—
Intercompany	—			—			15,262		1,323			(16,585		)	—
Total assets	$	117,408		$	397,060		$	391,164	$	45,953		$	(469,013	)	$	482,572
Liabilities and Equity:
Senior unsecured notes payable	$	—		$	260,000		$	—	$	—		$	—		$	260,000
Mortgage notes payable	—			—			557		97,648			—			98,205
Accounts payable and accrued liabilities	—			3,067			3,308		584			—			6,959
Dividends payable	3,946			—			—		—			—			3,946
Intercompany	—			16,585			—		—			(16,585		)	—
Total liabilities	3,946			279,652			3,865		98,232			(16,585		)	369,110
Equity:
Common stock, $0.01 par value; 500,000,000 shares authorized, 31,251,157 shares issued and outstanding as of December 31, 2014	313			—			—		—			—			313
Additional paid-in capital	246,041			125,551			374,660		(52,899		)	(447,312		)	246,041
Cumulative distributions in excess of earnings	(132,892		)	(8,143		)	12,639		620			(5,116		)	(132,892		)
Total equity	113,462			117,408			387,299		(52,279		)	(452,428		)	113,462
Total liabilities and equity	$	117,408		$	397,060		$	391,164	$	45,953		$	(469,013	)	$	482,572

Condensed Consolidating and Combining Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2015

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—	$	1,249	$	11,275	$	2,725	$	—		$	15,249
Tenant reimbursements	—		77		1,095		116		—			1,288
Independent living facilities	—		—		607		—		—			607
Interest and other income	—		—		232		—		—			232
Total revenues	—		1,326		13,209		2,841		—			17,376
Expenses:
Depreciation and amortization	—		413		4,519		747		—			5,679
Interest expense	—		4,573		8		1,408		—			5,989
Property taxes	—		77		1,095		116		—			1,288
Independent living facilities	—		—		566		—		—			566
General and administrative	309		1,157		95		27		—			1,588
Total expenses	309		6,220		6,283		2,298		—			15,110
Income in Subsidiary	2,575		7,469		—		—		(10,044		)	—
Net income	$	2,266	$	2,575	$	6,926	$	543	$	(10,044	)	$	2,266

CONDENSED CONSOLIDATING AND COMBINING STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2014

(in thousands)



	Parent Guarantor			Issuers			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Elimination		Consolidated
Revenues:
Rental income	$	—		$	—		$	10,252		$	1,953		$	—	$	12,205
Tenant reimbursements	—			—			1,112			125			—		1,237
Independent living facilities	—			—			623			—			—		623
Interest and other income	—			—			—			—			—		—
Total revenues	—			—			11,987			2,078			—		14,065
Expenses:
Depreciation and amortization	—			—			5,145			925			—		6,070
Interest expense	—			1,491			3,868			1,093			—		6,452
Loss on extinguishment of debt	—			—			4,067			—					4,067
Property taxes	—			—			1,112			125			—		1,237
Independent living facilities	—			—			555			—			—		555
General and administrative	—			6,009			—			—			—		6,009
Total expenses	—			7,500			14,747			2,143			—		24,390
Loss in Subsidiary	(10,342		)	(2,842		)	—			—			13,184		—
Loss before provision for income taxes	(10,342		)	(10,342		)	(2,760		)	(65		)	13,184		(10,325		)
Provision for income taxes	—			—			22			(5		)	—		17
Net loss	$	(10,342	)	$	(10,342	)	$	(2,782	)	$	(60	)	$	13,184	$	(10,342	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2015

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—	$	2,091	$	22,550	$	5,450	$	—		$	30,091
Tenant reimbursements	—		129		2,185		232		—			2,546
Independent living facilities	—		—		1,242		—		—			1,242
Interest and other income	—		—		455		—		—			455
Total revenues	—		2,220		26,432		5,682		—			34,334
Expenses:
Depreciation and amortization	—		708		9,063		1,507		—			11,278
Interest expense	—		9,065		16		2,809		—			11,890
Property taxes	—		129		2,185		232		—			2,546
Independent living facilities	—		—		1,168		—		—			1,168
General and administrative	309		2,717		95		27		—			3,148
Total expenses	309		12,619		12,527		4,575		—			30,030
Income in Subsidiary	4,613		15,012		—		—		(19,625		)	—
Net income	$	4,304	$	4,613	$	13,905	$	1,107	$	(19,625	)	$	4,304

CONDENSED CONSOLIDATING AND COMBINING STATEMENTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2014

(in thousands)



	Parent Guarantor			Issuers			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Elimination		Consolidated
Revenues:
Rental income	$	—		$	—		$	19,787		$	3,441		$	—	$	23,228
Tenant reimbursements	—			—			2,245			253			—		2,498
Independent living facilities	—			—			1,210			—			—		1,210
Interest and other income	—			—			—			—			—		—
Total revenues	—			—			23,242			3,694			—		26,936
Expenses:
Depreciation and amortization	—			—			10,416			1,853			—		12,269
Interest expense	—			1,492			6,283			2,004			—		9,779
Loss on extinguishment of debt	—			—			4,067			—			—		4,067
Property taxes	—			—			2,245			253			—		2,498
Independent living facilities	—			—			1,098			—			—		1,098
General and administrative	—			7,912			—			—			—		7,912
Total expenses	—			9,404			24,109			4,110			—		37,623
Loss in Subsidiary	(10,740		)	(1,336		)	—			—			12,076		—
Loss before provision for income taxes	(10,740		)	(10,740		)	(867		)	(416		)	12,076		(10,687		)
Provision for income taxes	—			—			53			—			—		53
Net loss	$	(10,740	)	$	(10,740	)	$	(920	)	$	(416	)	$	12,076	$	(10,740	)

Condensed Consolidating and Combining Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2015

(in thousands)



	Parent Guarantor			Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Elimination			Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(149	)	$	(8,782	)	$	21,801		$	2,716		$	—		$	15,586
Cash flows from investing activities:
Acquisition of real estate	—			(33,646		)	—			—			—			(33,646		)
Improvements to real estate	—			(20		)	(123		)	—			—			(143		)
Purchases of equipment, furniture, and fixtures	—			(167		)	(60		)	—			—			(227		)
Escrow deposit for acquisition of real estate	—			(1,500		)	—			—			—			(1,500		)
Distribution from subsidiary	8,996			—			—			—			(8,996		)	—
Intercompany financing	149			22,983			—			—			(23,132		)	—
Net cash provided by (used in) investing activities	9,145			(12,350		)	(183		)	—			(32,128		)	(35,516		)
Cash flows from financing activities:
Borrowings under senior secured revolving credit facility	—			35,000			—			—			—			35,000
Payments on the mortgage notes payable	—			—			(50		)	(1,301		)	—			(1,351		)
Payments of deferred financing costs	—			(139		)	—			—			—			(139		)
Dividends paid on common stock	(8,996		)	—			—			—			—			(8,996		)
Distribution to Parent	—			(8,996		)	—			—			8,996			—
Intercompany financing	—			(149		)	(21,568		)	(1,415		)	23,132			—
Net cash (used in) provided by financing activities	(8,996		)	25,716			(21,618		)	(2,716		)	32,128			24,514
Net increase in cash and cash equivalents	—			4,584			—			—			—			4,584
Cash and cash equivalents beginning of period	—			25,320			—			—			—			25,320
Cash and cash equivalents end of period of period	$	—		$	29,904		$	—		$	—		$	—		$	29,904

CONDENSED CONSOLIDATING AND COMBINING STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2014

(in thousands)



	Parent Guarantor		Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Elimination			Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	—	$	(1,492	)	$	15,394		$	1,563		$	(7,912	)	$	7,553
Cash flows from investing activities:
Purchases of equipment, furniture, and fixtures	—		—			(14,648		)	(4,361		)	—			(19,009		)
Intercompany financing	—		(165,728		)	—			—			165,728			—
Net cash (used in) provided by investing activities	—		(165,728		)	(14,648		)	(4,361		)	165,728			(19,009		)
Cash flows from financing activities:
Proceeds from the issuance of senior unsecured notes payable	—		260,000			—			—			—			260,000
Proceeds from the senior secured revolving credit facility	—		—			10,000			—			—			10,000
Proceeds from the issuance of mortgage notes payable	—		—			—			50,676			—			50,676
Payments on the senior secured revolving credit facility	—		—			(88,701		)	—			—			(88,701		)
Payments on the mortgage notes payable	—		—			(66,856		)	—			—			(66,856		)
Payments on the senior secured term loan	—		—			(65,624		)	—			—			(65,624		)
Payments of deferred financing costs	—		(12,435		)	—			(510		)	—			(12,945		)
Net contribution from Ensign	—		—			52,385			(48,029		)	—			4,356
Distributions to Issuers	—		—			(7,912		)	—			7,912			—
Intercompany financing	—		—			165,067			661			(165,728		)	—
Net cash provided by (used in) financing activities	—		247,565			(1,641		)	2,798			(157,816		)	90,906
Net increase (decrease) in cash and cash equivalents	—		80,345			(895		)	—			—			79,450
Cash and cash equivalents beginning of period	—		—			895			—			—			895
Cash and cash equivalents end of period of period	$	—	$	80,345		$	—		$	—		$	—		$	80,345