AdCare Health Systems Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net income attributable to company of $200,017 as compared to net loss net income attributable to company of $664,449 for the third quarter ended September 30, 2008, an improvement of $864,466. Basic and diluted net income per share was $0.05 as compared to a basic and diluted net loss per share of $0.18 for the same quarter ended September 30, 2008, an improvement of $0.23 per share. Total revenue was $6,909,499 against $6,185,760 in the same period of last year. Income from operations was $498,414 against loss from operations of $286,567 in the same period of last year. Income before income taxes was $204,459 against loss before income taxes of $647,715 in the same period of last year. For the nine months ended September 30, 2009, the company reported revenues were $19,907,515 as compared to $18,194,838 for the same period in 2008, an increase of $1,712,677. Net income attributable to company was $442,932 as compared to net loss income attributable to company of $780,595 for the same period in 2008, an improvement of $1,223,527. The increase was again mostly due to better occupancy at skilled nursing centers and improved revenues at home health care division together with servicing more Medicare patients. Basic and diluted earnings per share were $0.12 against basic and diluted loss per share of $0.21 in the same period of last year. Income from operations was $1,429,701 against loss from operations of $131,766 in the same period of last year. Income before income taxes was $493,653 against loss before income taxes of $712,888 in the same period of last year. Net cash provided by operating activities was $1,561,445 against $152,407 in the same period of last year. Purchase of property plant and equipment was $343,245 against $286,689 in the same period of last year.

AdCare Health Systems, Inc reported financial results for its third quarter of 2009 with revenues of $6,909,499. The company plans to make acquisitions. David A. Tenwick, Chairman of AdCare said: "Our financial performance continues to improve with income from operations for the first nine months of 2009, increasing to $1,429,701 from a loss of $131,766 for the same period last year. In addition, we continued to improve our working capital position by $919,020, since the end of 2008 with current assets now $378,998 more than current liabilities." He added that "AdCare is now focusing on acquisition opportunities in the health care field that will expand our operations, and is confident that Chris Brogdon, recently appointed Chief Acquisition Officer, will be able to accelerate this expansion through his efforts to locate and assist in funding selective acquisitions of nursing homes and assisted living facilities."

On September 24, 2009, the Board of Directors of AdCare Health Systems Inc. decided to increase the number of Directors from six to seven and to authorize the appointment of Christopher Brogdon to serve as the seventh Director until the next annual election of Directors by shareholders of the company. Mr. Brogdon will not serve on any Board committees at this time. Mr. Brogdon has no other directorships.