Third Quarter Senior Living Revenues of $270.0 Million
Third Quarter Net Loss of $7.1 Million
Third Quarter Pro Forma Net Income of $4.1 Million, Pro Forma EBITDA of $8.3 Million and Pro Forma Net Income per Share of $0.13
Increased Occupancy at Owned and Leased Senior Living Communities by 90 Basis Points in Third Quarter Compared to Last Year
NEWTON, Mass.–(BUSINESS WIRE)–Five Star Senior Living Inc. (Nasdaq: FVE) today announced its financial results for the quarter and nine months ended September 30, 2019.
“We are pleased to announce that we remain on track to complete the restructuring of our business arrangements with Senior Housing Properties Trust on January 1, 2020,” stated Katie Potter, President and Chief Executive Officer of Five Star Senior Living Inc. “Additionally, we made significant progress on our labor initiatives during the third quarter, reducing our September turnover level to its lowest point in a year. While such initiatives may adversely impact our financial results in the short term, we believe that by remaining focused on attracting, investing in and retaining a high caliber workforce, we are continuing to reposition the company for stable, long term growth. With this in mind, our pro forma third quarter EBITDA and net income per share giving effect to the restructuring was $8.3 million and $0.13, respectively.”
Financial Results for the Quarter Ended September 30, 2019:
- Senior living revenue for the third quarter of 2019 decreased 1.0% to $270.0 million from $272.7 million for the same period in 2018, primarily due to the sale of three skilled nursing facilities, or SNFs, to a third party during the second quarter of 2019 and the sale of 15 SNFs to a third party during the third quarter of 2019, partially offset by increases in occupancy and in revenues attributable to ancillary services, such as rehabilitation and wellness services. Management fee revenue for the third quarter of 2019 increased 1.1% to $4.1 million from $4.0 million for the same period in 2018, primarily due to an increase in the number of managed communities to 77 from 75 for the same period in 2018.
- Net loss for the third quarter of 2019 was $7.1 million, or $1.41 per share, compared to a net loss of $21.6 million, or $4.34 per share, for the same period in 2018. Net loss for the third quarter of 2019 included $1.3 million, or $0.27 per share, of costs related to the April 1, 2019 transaction agreement with Senior Housing Properties Trust (Nasdaq: SNH), or the Transaction Agreement, and a loss on the sale of senior living communities of $0.7 million, or $0.15 per share. Net loss for the third quarter of 2019 decreased approximately $14.5 million compared to the same period in 2018, primarily due to a decrease in rent expense attributable to the reduction in Five Star’s minimum monthly rent payable to SNH pursuant to the Transaction Agreement. Pro forma third quarter net income giving effect to the restructuring was $4.1 million, or $0.13 per share.
- Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the third quarter of 2019 was $(5.0) million compared to $(12.4) million for the same period in 2018. EBITDA excluding certain items, or Adjusted EBITDA, for the third quarter of 2019 was $(2.9) million compared to $(12.4) million for the same period in 2018. Pro forma third quarter EBITDA giving effect to the restructuring was $8.3 million. A reconciliation of net loss determined in accordance with U.S. generally accepted accounting principles, or GAAP, to EBITDA and Adjusted EBITDA for the quarters ended September 30, 2019 and 2018 appears later in this press release.
Operating Results for the Quarter Ended September 30, 2019:
- Occupancy at owned and leased senior living communities for the third quarter of 2019 increased 90 basis points to 82.9% from 82.0% for the same period in 2018.
- Average monthly rates at owned and leased senior living communities for the third quarter of 2019 decreased 1.0% to $4,654 from $4,701 for the same period in 2018.
- The percentage of revenue derived from residents’ private resources at owned and leased senior living communities for the third quarter of 2019 was 80.2% compared to 77.8% for the same period in 2018.
Financial Results for the Nine Months Ended September 30, 2019:
- Senior living revenue for the nine months ended September 30, 2019 increased 0.4% to $821.5 million from $818.1 million for the same period in 2018, primarily due to increases in occupancy and in revenues attributable to ancillary services, such as rehabilitation and wellness services, partially offset by Five Star’s sale in 2018 of four senior living communities to SNH, which communities Five Star now manages for SNH’s account, and one SNF to a third party during the first half of 2018, as well as the sales of 18 SNFs to third parties during the second and third quarters of 2019. Management fee revenue for the nine months ended September 30, 2019 increased 5.7% to $12.1 million from $11.4 million for the same period in 2018, primarily due to an increase in the number of managed communities to 77 from 75 for the same period in 2018.
- Net loss for the nine months ended September 30, 2019 was $36.1 million, or $7.21 per share, compared to a net loss of $50.4 million, or $10.16 per share, for the same period in 2018. Net loss for the nine months ended September 30, 2019 included $10.1 million, or $2.02 per share, of costs related to the Transaction Agreement, $3.3 million, or $0.65 per share, of long lived impairment charges recorded by Five Star to reduce the carrying value of certain long lived assets to their estimated fair values, a $0.9 million, or $0.17 per share, loss on sale of senior living communities and $0.4 million, or $0.08 per share, of net severance costs incurred during the second quarter of 2019 related to payments owed to a former Five Star executive officer. Net loss for the nine months ended September 30, 2018 included a $7.1 million, or $1.44 per share, gain on sale of senior living communities, primarily due to Five Star’s sale of four senior living communities to SNH during the first half of 2018, which communities Five Star now manages for SNH’s account.
- EBITDA for the nine months ended September 30, 2019 was $(20.9) million compared to $(22.0) million for the same period in 2018. Adjusted EBITDA was $(6.2) million for the nine months ended September 30, 2019 and $(28.2) million for the same period in 2018. A reconciliation of net loss determined in accordance with GAAP to EBITDA and Adjusted EBITDA for the nine months ended September 30, 2019 and 2018 appears later in this press release.
- Unrestricted cash and cash equivalents were $39.4 million at September 30, 2019 compared to $29.5 million at December 31, 2018. Cash flows provided by operating activities were $12.1 million for the nine months ended September 30, 2019 compared to cash flows used in operating activities of $26.0 million for the same period in 2018. This change was primarily due to the reduction in Five Star’s monthly minimum rent payable to SNH under Five Star’s master leases with SNH pursuant to the Transaction Agreement, partially offset by transaction fees paid in connection with the Transaction Agreement.
Restructuring of Business Arrangements with SNH:
As previously disclosed, in April 2019, Five Star entered into the Transaction Agreement with SNH, pursuant to which Five Star and SNH agreed to restructure their existing business arrangements, subject to certain conditions and the receipt of various approvals.
- Effective January 1, 2020 (or January 1, 2021 if extended under the Transaction Agreement), or the Conversion Time, Five Star’s existing five master leases with SNH for SNH’s senior living communities leased to Five Star, as well as Five Star’s existing management agreements and pooling agreements with SNH for SNH’s senior living communities managed by Five Star for SNH’s account, will be terminated and replaced with new management agreements between Five Star and SNH for all of these senior living communities.
- At the Conversion Time, Five Star will issue to SNH such number of Five Star common shares as is necessary to cause SNH to own, when considered together with Five Star common shares then owned by SNH, approximately 34% of Five Star’s then outstanding common shares, and SNH will declare a pro rata distribution to the holders of its common shares of beneficial interest of the right to receive, and Five Star will issue on a pro rata basis to such holders, a number of Five Star common shares that equals approximately 51% of Five Star’s then outstanding common shares, or, together, the Share Issuances; the noted percentage ownership amounts are post-issuance, giving effect to the Share Issuances. On June 11, 2019, Five Star’s stockholders approved the Share Issuances in satisfaction of one of the conditions to the restructuring of Five Star’s business arrangements with SNH. On September 27, 2019, Five Star filed a registration statement on Form S-1 with the Securities and Exchange Commission, or SEC, to register the Five Star common shares to be issued pursuant to the Transaction Agreement. Five Star expects this registration statement to be declared effective by the SEC prior to December 31, 2019.
- At the Conversion Time, as consideration for the Share Issuances, SNH will provide to Five Star $75.0 million of additional consideration.
- As of February 1, 2019, the aggregate amount of monthly minimum rent payable to SNH by Five Star under Five Star’s master leases with SNH was reduced to $11.0 million, subject to adjustment and extension, and no additional rent is payable to SNH by Five Star from such date. The aggregate amount of monthly minimum rent payable to SNH was reduced to approximately $10.8 million as of September 30, 2019 as a result of the dispositions of certain senior living communities we leased from SNH, and remains subject to further adjustment.
- On April 1, 2019, SNH purchased from Five Star approximately $50.0 million of unencumbered fixed assets and improvements related to SNH’s senior living communities leased to and operated by Five Star, which amount was subsequently reduced to $49.2 million.
- In connection with the Transaction Agreement, Five Star entered into a credit agreement with SNH pursuant to which SNH extended to Five Star a $25.0 million line of credit, which is secured by six senior living communities owned by Five Star. This line of credit matures at the Conversion Time, and there are currently no amounts outstanding under this line of credit.
Other:
- As previously announced, effective August 12, 2019, Margaret Wigglesworth became Five Star’s Senior Vice President and Chief Operating Officer. Ms. Wigglesworth joined Five Star with extensive management experience spanning nearly three decades, including previously held leadership roles at the International Council of Shopping Centers, Cresa and Colliers International Group Inc.
- In September 2019, Five Star and SNH sold to a third party 15 SNFs located in Iowa, Nebraska and Kansas that SNH owned and leased to Five Star, and Five Star no longer operates those facilities.
- On September 30, 2019, Five Star effected a one-for-ten reverse stock split of its common shares, or the Reverse Stock Split, as a result of which Five Star regained compliance with the listing standards of The Nasdaq Market LLC, or Nasdaq, for continued listing on Nasdaq. As required under GAAP, all impacted amounts and share information included in this press release have been retroactively adjusted for the Reverse Stock Split, as if the Reverse Stock Split occurred on the first day of the first period presented. Certain adjusted amounts may not agree with previously reported amounts due to rounding of fractional shares.
Conference Call:
At 1:00 p.m. Eastern Time this afternoon, President and Chief Executive Officer, Katherine Potter, Executive Vice President, Chief Financial Officer and Treasurer, Jeffrey Leer, and Senior Vice President and Chief Operating Officer, Margaret Wigglesworth, will host a conference call to discuss Five Star’s third quarter 2019 results.
The conference call telephone number is (877) 329-4332. Participants calling from outside the United States and Canada should dial (412) 317-5436. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 11:59 p.m. Eastern Time on Wednesday, November 13, 2019. To access the replay, dial (412) 317-0088. The replay pass code is 10134935.
A live audio webcast of the conference call will also be available in a listen-only mode on Five Star’s website, www.fivestarseniorliving.com. Participants wanting to access the webcast should visit Five Star’s website about five minutes before the call. The archived webcast will be available for replay on Five Star’s website following the call for about a week. The transcription, recording and retransmission in any way of Five Star’s third quarter 2019 conference call are strictly prohibited without the prior written consent of Five Star. Five Star’s website is not incorporated as part of this press release.
About Five Star Senior Living Inc.:
Five Star Senior Living Inc. is a senior living and healthcare services company. As of September 30, 2019, Five Star operated 267 senior living communities with 31,116 living units located in 32 states, including 190 communities (20,948 living units) that it owned or leased and 77 communities (10,168 living units) that it managed. These communities include independent living, assisted living, continuing care retirement and skilled nursing communities. Five Star is headquartered in Newton, Massachusetts.
|
FIVE STAR SENIOR LIVING INC. |
||||||||||||
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||
|
REVENUES: |
|
|
|
|
|
|
|
|
||||
|
Senior living revenue |
|
$ |
270,047 |
|
$ |
272,701 |
|
$ |
821,478 |
|
$ |
818,108 |
|
Management fee revenue |
|
4,053 |
|
4,009 |
|
12,060 |
|
11,408 |
||||
|
Reimbursed costs incurred on behalf of managed communities |
|
80,909 |
|
72,200 |
|
232,733 |
|
208,009 |
||||
|
Total Revenues |
|
355,009 |
|
348,910 |
|
1,066,271 |
|
1,037,525 |
||||
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
||||
|
Senior living wages and benefits |
|
147,048 |
|
142,035 |
|
435,927 |
|
418,917 |
||||
|
Other senior living operating expenses |
|
78,209 |
|
76,761 |
|
227,553 |
|
226,302 |
||||
|
Costs incurred on behalf of managed communities |
|
80,909 |
|
72,200 |
|
232,733 |
|
208,009 |
||||
|
Rent expense |
|
33,169 |
|
52,282 |
|
120,973 |
|
156,640 |
||||
|
General and administrative expenses |
|
20,094 |
|
18,965 |
|
67,144 |
|
57,405 |
||||
|
Depreciation and amortization expense |
|
2,818 |
|
9,137 |
|
13,924 |
|
26,974 |
||||
|
Loss (gain) on sale of senior living communities |
|
749 |
|
62 |
|
850 |
|
(7,131) |
||||
|
Long lived asset impairment |
|
18 |
|
— |
|
3,278 |
|
365 |
||||
|
Total operating expenses |
|
363,014 |
|
371,442 |
|
1,102,382 |
|
1,087,481 |
||||
|
|
|
|
|
|
|
|
|
|
||||
|
Operating loss |
|
(8,005) |
|
(22,532) |
|
(36,111) |
|
(49,956) |
||||
|
|
|
|
|
|
|
|
|
|
||||
|
Interest, dividend and other income |
|
414 |
|
192 |
|
985 |
|
577 |
||||
|
Interest and other expense |
|
(384) |
|
(466) |
|
(2,196) |
|
(1,773) |
||||
|
Unrealized gain on equity investments |
|
148 |
|
133 |
|
476 |
|
127 |
||||
|
Realized (loss) gain on sale of debt and equity investments, net of tax |
|
(9) |
|
2 |
|
227 |
|
(8) |
||||
|
|
|
|
|
|
|
|
|
|
||||
|
Loss before income taxes and equity in earnings of an investee |
|
(7,836) |
|
(22,671) |
|
(36,619) |
|
(51,033) |
||||
|
Benefit (provision) for income taxes |
|
687 |
|
263 |
|
(98) |
|
(274) |
||||
|
Equity in earnings of an investee, net of tax |
|
83 |
|
826 |
|
617 |
|
882 |
||||
|
Net loss |
|
$ |
(7,066) |
|
$ |
(21,582) |
|
$ |
(36,100) |
|
$ |
(50,425) |
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted average shares outstanding (basic and diluted) |
|
5,012 |
|
4,968 |
|
5,007 |
|
4,964 |
||||
|
|
|
|
|
|
|
|
|
|
||||
|
Net loss per share (basic and diluted) |
|
$ |
(1.41) |
|
$ |
(4.34) |
|
$ |
(7.21) |
|
$ |
(10.16) |
|
FIVE STAR SENIOR LIVING INC. |
||||||
|
|
|
September 30, |
|
December 31, |
||
|
|
|
2019 |
|
2018 |
||
|
ASSETS |
|
|
|
|
||
|
Current assets: |
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
39,423 |
|
$ |
29,512 |
|
Accounts receivable, net of allowance |
|
36,084 |
|
37,758 |
||
|
Due from related persons |
|
6,406 |
|
7,855 |
||
|
Investments |
|
21,360 |
|
20,179 |
||
|
Restricted cash |
|
23,047 |
|
19,720 |
||
|
Prepaid expenses and other current assets |
|
25,050 |
|
23,029 |
||
|
Assets held for sale |
|
13,416 |
|
— |
||
|
Total current assets |
|
164,786 |
|
138,053 |
||
|
|
|
|
|
|
||
|
Property and equipment, net |
|
164,736 |
|
243,873 |
||
|
Equity investment of an investee |
|
9,340 |
|
8,633 |
||
|
Restricted cash |
|
1,478 |
|
923 |
||
|
Restricted investments |
|
6,556 |
|
8,073 |
||
|
Right of use assets |
|
878,673 |
|
— |
||
|
Other long term assets |
|
6,196 |
|
6,069 |
||
|
Total assets |
|
$ |
1,231,765 |
|
$ |
405,624 |
|
|
|
|
|
|
||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
||
|
Revolving credit facility |
|
$ |
— |
|
$ |
51,484 |
|
Accounts payable and accrued expenses |
|
76,816 |
|
69,667 |
||
|
Current portion of lease liabilities |
|
94,432 |
|
— |
||
|
Accrued compensation and benefits |
|
44,626 |
|
35,421 |
||
|
Due to related persons |
|
19,344 |
|
18,883 |
||
|
Mortgage notes payable |
|
356 |
|
339 |
||
|
Accrued real estate taxes |
|
2,271 |
|
12,959 |
||
|
Security deposits and current portion of continuing care contracts |
|
691 |
|
3,468 |
||
|
Other current liabilities |
|
33,842 |
|
37,472 |
||
|
Liabilities held for sale |
|
16,053 |
|
— |
||
|
Total current liabilities |
|
288,431 |
|
229,693 |
||
|
|
|
|
|
|
||
|
Long term liabilities: |
|
|
|
|
||
|
Mortgage notes payable |
|
7,263 |
|
7,533 |
||
|
Long term portion of lease liabilities |
|
798,826 |
|
— |
||
|
Accrued self-insurance obligations |
|
31,929 |
|
33,030 |
||
|
Deferred gain on sale and leaseback transaction |
|
— |
|
59,478 |
||
|
Other long term liabilities |
|
1,518 |
|
4,721 |
||
|
Total long term liabilities |
|
839,536 |
|
104,762 |
||
|
|
|
|
|
|
||
|
Shareholders’ equity: |
|
|
|
|
||
|
Common stock, par value $.01: 75,000,000 shares authorized, 5,082,334 and 5,085,345 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively |
|
51 |
|
51 |
||
|
Additional paid in capital |
|
362,314 |
|
362,012 |
||
|
Accumulated deficit |
|
(261,263) |
|
(292,636) |
||
|
Accumulated other comprehensive income |
|
2,696 |
|
1,742 |
||
|
Total shareholders’ equity |
|
103,798 |
|
71,169 |
||
|
Total liabilities and shareholders’ equity |
|
$ |
1,231,765 |
|
$ |
405,624 |
|
FIVE STAR SENIOR LIVING INC. |
||||||
|
|
|
Nine Months Ended September 30, |
||||
|
|
|
2019 |
|
2018 |
||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||
|
Net loss |
|
$ |
(36,100) |
|
$ |
(50,425) |
|
Adjustments to reconcile net loss to cash provided by (used in) operating activities: |
|
|
|
|
||
|
Depreciation and amortization expense |
|
13,924 |
|
26,974 |
||
|
Loss (gain) on sale of senior living communities |
|
850 |
|
(7,131) |
||
|
Unrealized gain on equity securities |
|
(476) |
|
(127) |
||
|
Realized (gain) loss on sale of debt and equity investments |
|
(227) |
|
8 |
||
|
Loss on disposal of property and equipment |
|
86 |
|
263 |
||
|
Long lived asset impairment |
|
3,278 |
|
365 |
||
|
Equity in earnings of an investee, net of tax |
|
(617) |
|
(882) |
||
|
Stock based compensation |
|
302 |
|
654 |
||
|
Provision for losses on receivables |
|
3,232 |
|
3,694 |
||
|
Amortization of non-cash rent adjustments |
|
(944) |
|
(4,957) |
||
|
Other noncash expense (income) adjustments, net |
|
120 |
|
279 |
||
|
Changes in assets and liabilities: |
|
|
|
|
||
|
Accounts receivable |
|
(1,558) |
|
(1,881) |
||
|
Prepaid expenses and other assets |
|
(4,939) |
|
(1,715) |
||
|
Accounts payable and accrued expenses |
|
5,365 |
|
(2,491) |
||
|
Accrued compensation and benefits |
|
9,205 |
|
7,164 |
||
|
Due from (to) related persons, net |
|
15,976 |
|
(1,670) |
||
|
Other current and long term liabilities |
|
4,600 |
|
5,879 |
||
|
Cash provided by (used in) operating activities |
|
12,077 |
|
(25,999) |
||
|
|
|
|
|
|
||
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||
|
Acquisition of property and equipment |
|
(37,433) |
|
(36,941) |
||
|
Purchases of investments |
|
(2,897) |
|
(3,239) |
||
|
Proceeds from sale of property and equipment |
|
90,822 |
|
14,749 |
||
|
(Settlement of liabilities) proceeds from sale of communities |
|
(749) |
|
31,819 |
||
|
Proceeds from sale of investments |
|
5,042 |
|
6,349 |
||
|
Cash provided by investing activities |
|
54,785 |
|
12,737 |
||
|
|
|
|
|
|
||
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||
|
Proceeds from borrowings on revolving credit facility |
|
5,000 |
|
25,000 |
||
|
Repayments of borrowings on revolving credit facility |
|
(56,484) |
|
(25,000) |
||
|
Repayments of mortgage notes payable |
|
(272) |
|
(427) |
||
|
Payment of deferred financing fees |
|
(1,271) |
|
— |
||
|
Cash used in financing activities |
|
(53,027) |
|
(427) |
||
|
|
|
|
|
|
||
|
Change in cash, cash equivalents and restricted cash |
|
13,835 |
|
(13,689) |
||
|
Cash, cash equivalents and restricted cash at beginning of period |
|
50,155 |
|
48,478 |
||
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
63,990 |
|
$ |
34,789 |
|
|
|
|
|
|
||
|
Reconciliation of cash, cash equivalents and restricted cash: |
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
39,423 |
|
$ |
13,128 |
|
Restricted cash |
|
24,525 |
|
21,661 |
||
|
Restricted cash presented in assets held for sale |
|
42 |
|
— |
||
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
63,990 |
|
$ |
34,789 |
|
|
|
|
|
|
||
|
SUPPLEMENTAL CASH FLOW INFORMATION: |
|
|
|
|
||
|
Cash paid for interest |
|
$ |
1,691 |
|
$ |
1,195 |
|
Cash (received) paid for income taxes, net |
|
$ |
(1,366) |
|
$ |
338 |
|
|
|
|
|
|
||
|
NON-CASH ACTIVITIES: |
|
|
|
|
||
|
Initial recognition of right of use assets |
|
$ |
1,478,958 |
|
$ |
— |
|
Initial recognition of lease liabilities |
|
$ |
1,478,958 |
|
$ |
— |
|
Real estate sale |
|
$ |
— |
|
$ |
33,364 |
|
Mortgage notes assumed by purchaser in real estate sale |
|
$ |
— |
|
$ |
33,364 |
FIVE STAR SENIOR LIVING INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands)
(unaudited)
Non-GAAP financial measures are financial measures that are not determined in accordance with GAAP. Five Star believes the non-GAAP financial measures presented in the table below are meaningful supplemental disclosures because they may help investors gain a better understanding of changes in Five Star’s operating results and its ability to pay rent or service debt, make capital expenditures and expand its business. These non-GAAP financial measures also may help investors make comparisons between Five Star and other companies on both a GAAP and a non-GAAP basis. Five Star believes that EBITDA and Adjusted EBITDA are meaningful financial measures that may help investors better understand its financial performance, including by allowing investors to compare Five Star’s performance between periods and to the performance of other companies. EBITDA and Adjusted EBITDA are used by management to evaluate Five Star’s financial performance and compare Five Star’s performance over time and to the performance of other companies. Five Star calculates EBITDA and Adjusted EBITDA as shown below. These measures should not be considered as alternatives to net income (loss) or operating income (loss), as indicators of Five Star’s operating performance or as measures of Five Star’s liquidity. Also, EBITDA and Adjusted EBITDA as presented may not be comparable to similarly titled amounts calculated by other companies.
Five Star believes that net loss is the most directly comparable financial measure, determined according to GAAP, to Five Star’s presentation of EBITDA and Adjusted EBITDA. The following table presents the reconciliation of net loss to these non-GAAP financial measures for each of the three and nine months ended September 30, 2019 and 2018.
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||
|
Net loss |
|
$ |
(7,066) |
|
$ |
(21,582) |
|
$ |
(36,100) |
|
$ |
(50,425) |
|
Add (less): |
|
|
|
|
|
|
|
|
||||
|
Interest and other expense |
|
384 |
|
466 |
|
2,196 |
|
1,773 |
||||
|
Interest, dividend and other income |
|
(414) |
|
(192) |
|
(985) |
|
(577) |
||||
|
(Benefit) provision for income taxes |
|
(687) |
|
(263) |
|
98 |
|
274 |
||||
|
Depreciation and amortization expense |
|
2,818 |
|
9,137 |
|
13,924 |
|
26,974 |
||||
|
EBITDA |
|
(4,965) |
|
(12,434) |
|
(20,867) |
|
(21,981) |
||||
|
Add (less): |
|
|
|
|
|
|
|
|
||||
|
Long lived asset impairment |
|
18 |
|
— |
|
3,278 |
|
365 |
||||
|
Costs related to compliance assessment |
|
— |
|
12 |
|
— |
|
(106) |
||||
|
Employee litigation matter |
|
— |
|
— |
|
— |
|
605 |
||||
|
Loss (gain) on sale of senior living communities |
|
749 |
|
62 |
|
850 |
|
(7,131) |
||||
|
Severance, net |
|
— |
|
— |
|
393 |
|
— |
||||
|
Transaction costs (1) |
|
1,330 |
|
— |
|
10,138 |
|
— |
||||
|
Adjusted EBITDA |
|
$ |
(2,868) |
|
$ |
(12,360) |
|
$ |
(6,208) |
|
$ |
(28,248) |
- Costs incurred by Five Star related to the Transaction Agreement.
SELECTED PRO FORMA CON
Contacts
Michael Kodesch, Director, Investor Relations
(617) 796-8245
