Fourth Quarter Net Income of $16.1 Million and Net Income Per Diluted Share of $3.15
Fourth Quarter Pro Forma Net Income of $5.8 Million and Pro Forma EBITDA of $10.5 Million
NEWTON, Mass.–(BUSINESS WIRE)–Five Star Senior Living Inc. (Nasdaq: FVE) today announced its financial results for the quarter and year ended December 31, 2019.
“The completion of the transformative restructuring of our business arrangements with Diversified Healthcare Trust (formerly known as Senior Housing Properties Trust) on January 1, 2020 marks the beginning of a new era for Five Star,” stated Katie Potter, President and Chief Executive Officer of Five Star Senior Living Inc. “Additionally, we are excited to announce pro forma fourth quarter EBITDA and net income per share of $10.5 million and $0.18, respectively, giving effect to the restructuring as if it had been completed by October 1, 2019. Having successfully completed this restructuring, we believe we are well-positioned to leverage the stability our new management agreements provide to grow as an organization and increase Five Star’s shareholder value.”
Financial and Operational Highlights for the Quarter Ended December 31, 2019:
- Senior living revenue for the fourth quarter of 2019 decreased 4.6% to $263.7 million from $276.3 million for the same period in 2018, primarily due to the sale of 18 skilled nursing facilities, or SNFs, during the second and third quarters of 2019. Senior living revenue at communities we operated continuously since October 1, 2018 for the fourth quarter of 2019 increased 1.4% to $260.4 million for the fourth quarter of 2019 from $257.0 million for the same period in 2018. This increase is primarily due to the recognition of $4.2 million of deferred resident fees and deposits, or Deferred Resident Fees and Deposits, related to communities previously leased from Diversified Healthcare Trust (Nasdaq: DHC) that were recognized as revenue in December of 2019, as a result of those leases being terminated in connection with the closing of the restructuring transactions that Five Star and DHC completed on January 1, 2020, or the Restructuring Transactions.
- Net income for the fourth quarter of 2019 was $16.1 million, or $3.15 per diluted share, compared to a net loss of $23.7 million, or $4.75 per diluted share, for the same period in 2018. The increase in net income is primarily due to a decrease of $19.4 million in rent expense attributable to the reduction in Five Star’s minimum monthly rent payable to DHC pursuant to the transaction agreement, or the Transaction Agreement, that Five Star entered with DHC on April 1, 2019, or the Rent Reduction, and net benefits of $14.9 million, or $2.90 per diluted share, related to the Restructuring Transactions.
- Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the fourth quarter of 2019 was $18.8 million compared to $(13.7) million for the same period in 2018. Adjusted EBITDA, as described further below, was $4.0 million for the fourth quarter of 2019 compared to $(12.9) million for the same period in 2018. A reconciliation of net income (loss) determined in accordance with U.S. generally accepted accounting principles, or GAAP, to EBITDA and Adjusted EBITDA for the quarters ended December 31, 2019 and 2018 appears later in this press release.
- Occupancy at owned and leased senior living communities was 82.9% for the fourth quarter of both 2019 and 2018.
- The percentage of revenue derived from residents’ private resources at owned and leased senior living communities for the fourth quarter of 2019 was 84.1% compared to 77.7% for the same period in 2018.
- As of December 31, 2019, Five Star had unrestricted cash and cash equivalents of $31.7 million and $7.5 million of outstanding mortgage debt.
Restructuring of Business Arrangements with DHC:
In connection with the completion of the Restructuring Transactions, effective January 1, 2020, or the Conversion Time, the following occurred:
- Five Star’s then five existing master leases with DHC for all of DHC’s senior living communities that Five Star leased, as well as Five Star’s then existing management agreements and pooling agreements with DHC for DHC’s senior living communities that Five Star managed, were terminated and replaced, or the Conversion, with new management agreements between Five Star and DHC for all of these senior living communities and a related omnibus agreement, or collectively, the New Management Agreements.
- Five Star issued 10,268,158 Five Star common shares to DHC and an aggregate of 16,118,849 Five Star common shares to DHC’s shareholders of record as of December 13, 2019, or, together, the Share Issuances.
- As consideration for the Share Issuances, DHC provided to Five Star $75.0 million of additional consideration by assuming certain of Five Star’s working capital liabilities (with DHC’s provision of such consideration to Five Star, collectively with the Conversion and the Share Issuances, being included in the definition of Restructuring Transactions in this press release).
In connection with the Transaction Agreement, Five Star entered into a credit agreement with DHC pursuant to which DHC extended to Five Star a $25.0 million line of credit, which was secured by six senior living communities Five Star owns. This line of credit matured and was terminated in connection with the completion of the Restructuring Transactions. There were no borrowings outstanding under this line of credit at the time of such termination and Five Star did not make any borrowings under this line of credit at any time.
Other:
- In February 2020, DHC entered into an agreement to sell to a third party one senior living community located in California that DHC owns and Five Star previously leased and currently manages for a sales price of approximately $2.0 million, excluding closing costs.
- In January 2020, DHC entered into an agreement to sell to a third party nine SNFs located in Colorado and Wyoming that DHC owns and Five Star previously leased and currently manages for an aggregate sales price of approximately $74.0 million, excluding closing costs.
- In December 2019, Five Star and DHC entered into an agreement to sell to a third party one senior living community located in Nebraska that DHC owns and Five Star previously leased and currently manages for a sales price of approximately $5.6 million, excluding closing costs.
- In December 2019, Five Star began managing for DHC an active adult community located in Plano, Texas with 169 living units pursuant to a management agreement with DHC.
- On September 30, 2019, Five Star effected a one-for-ten reverse stock split of its common shares, or the Reverse Stock Split. 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 the receipt of cash in lieu of fractional shares.
Conference Call:
At 1:00 p.m. Eastern Time today, 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 fourth quarter and full year 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 Monday, March 9, 2020. To access the replay, dial (412) 317-0088. The replay pass code is 10137795.
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 fourth 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 health and wellness services company. As of December 31, 2019, Five Star operated 268 senior living communities with 31,285 living units located in 32 states, including 190 communities (20,948 living units) that it owned or leased and 78 communities (10,337 living units) that it managed. Effective January 1, 2020, following the completion of the Restructuring Transactions, Five Star now manages 166 previously leased communities. Five Star’s communities include independent living, assisted living, continuing care retirement and skilled nursing communities. Additionally, Ageility Physical Therapy SolutionsTM, or Ageility, a division of Five Star, provides rehabilitation and wellness services within Five Star communities as well as to external customers. As of December 31, 2019, Five Star operated through Ageility 231 rehabilitation clinics. Five Star is headquartered in Newton, Massachusetts.
FIVE STAR SENIOR LIVING INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share data)
(unaudited)
|
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
December 31, |
|
December 31, |
||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
REVENUES: |
|
|
|
|
|
|
|
|
||||||||
|
Senior living |
|
$ |
263,705 |
|
|
$ |
276,296 |
|
|
$ |
1,085,183 |
|
|
$ |
1,094,404 |
|
|
Management fee |
|
4,109 |
|
|
3,737 |
|
|
16,169 |
|
|
15,145 |
|
||||
|
Reimbursed costs incurred on behalf of managed communities |
|
81,059 |
|
|
72,836 |
|
|
313,792 |
|
|
280,845 |
|
||||
|
Total revenues |
|
348,873 |
|
|
352,869 |
|
|
1,415,144 |
|
|
1,390,394 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
||||||||
|
Senior living wages and benefits |
|
137,666 |
|
|
144,346 |
|
|
573,593 |
|
|
563,263 |
|
||||
|
Other senior living operating expenses |
|
70,332 |
|
|
74,937 |
|
|
297,885 |
|
|
301,239 |
|
||||
|
Costs incurred on behalf of managed communities |
|
81,059 |
|
|
72,836 |
|
|
313,792 |
|
|
280,845 |
|
||||
|
Rent expense |
|
20,513 |
|
|
52,510 |
|
|
141,486 |
|
|
209,150 |
|
||||
|
General and administrative expenses |
|
20,740 |
|
|
20,784 |
|
|
87,884 |
|
|
78,189 |
|
||||
|
Depreciation and amortization expense |
|
2,716 |
|
|
8,965 |
|
|
16,640 |
|
|
35,939 |
|
||||
|
Loss (gain) on sale of senior living communities |
|
6 |
|
|
— |
|
|
856 |
|
|
(7,131) |
|
||||
|
Long-lived asset impairment |
|
4 |
|
|
96 |
|
|
3,282 |
|
|
461 |
|
||||
|
Total operating expenses |
|
333,036 |
|
|
374,474 |
|
|
1,435,418 |
|
|
1,461,955 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating income (loss) |
|
15,837 |
|
|
(21,605) |
|
|
(20,274) |
|
|
(71,561) |
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest, dividend and other income |
|
379 |
|
|
241 |
|
|
1,364 |
|
|
818 |
|
||||
|
Interest and other expense |
|
(419) |
|
|
(1,245) |
|
|
(2,615) |
|
|
(3,018) |
|
||||
|
Unrealized gain (loss) on equity investments |
|
306 |
|
|
(817) |
|
|
782 |
|
|
(690) |
|
||||
|
Realized gain on sale of debt and equity investments, net of tax |
|
2 |
|
|
107 |
|
|
229 |
|
|
99 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income (loss) before income taxes and equity in earnings of an investee |
|
16,105 |
|
|
(23,319) |
|
|
(20,514) |
|
|
(74,352) |
|
||||
|
Benefit (provision) for income taxes |
|
42 |
|
|
27 |
|
|
(56) |
|
|
(247) |
|
||||
|
Equity (loss) in earnings of an investee, net of tax |
|
(42) |
|
|
(366) |
|
|
575 |
|
|
516 |
|
||||
|
Net income (loss) |
|
$ |
16,105 |
|
|
$ |
(23,658) |
|
|
$ |
(19,995) |
|
|
$ |
(74,083) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average shares outstanding—basic |
|
5,002 |
|
|
4,982 |
|
|
5,006 |
|
|
4,969 |
|
||||
|
Weighted average shares outstanding—diluted |
|
5,119 |
|
|
4,982 |
|
|
5,006 |
|
|
4,969 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) per share—basic |
|
$ |
3.22 |
|
|
$ |
(4.75) |
|
|
$ |
(3.99) |
|
|
$ |
(14.91) |
|
|
Net income (loss) per share—diluted |
|
$ |
3.15 |
|
|
$ |
(4.75) |
|
|
$ |
(3.99) |
|
|
$ |
(14.91) |
|
FIVE STAR SENIOR LIVING INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share data)
(unaudited)
|
|
|
December 31, |
||||||
|
|
|
2019 |
|
2018 |
||||
|
ASSETS |
|
|
|
|
||||
|
Current assets: |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
31,740 |
|
|
$ |
29,512 |
|
|
Accounts receivable, net of allowance |
|
34,190 |
|
|
37,758 |
|
||
|
Due from related persons |
|
5,533 |
|
|
7,855 |
|
||
|
Investments in available for sale securities |
|
21,070 |
|
|
20,179 |
|
||
|
Restricted cash |
|
23,995 |
|
|
20,823 |
|
||
|
Prepaid expenses and other current assets |
|
17,286 |
|
|
21,926 |
|
||
|
Assets held for sale |
|
9,554 |
|
|
— |
|
||
|
Total current assets |
|
143,368 |
|
|
138,053 |
|
||
|
|
|
|
|
|
||||
|
Property and equipment, net |
|
167,247 |
|
|
243,873 |
|
||
|
Equity investment of an investee |
|
298 |
|
|
8,633 |
|
||
|
Restricted cash |
|
1,244 |
|
|
923 |
|
||
|
Restricted investments in available for sale securities |
|
7,105 |
|
|
8,073 |
|
||
|
Right of use assets |
|
20,855 |
|
|
— |
|
||
|
Other long-term assets |
|
5,676 |
|
|
6,069 |
|
||
|
Total assets |
|
$ |
345,793 |
|
|
$ |
405,624 |
|
|
|
|
|
|
|
||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||||
|
Current liabilities: |
|
|
|
|
||||
|
Revolving credit facilities |
|
$ |
— |
|
|
$ |
51,484 |
|
|
Accounts payable and accrued expenses |
|
82,447 |
|
|
69,667 |
|
||
|
Current portion of lease liabilities |
|
2,872 |
|
|
— |
|
||
|
Accrued compensation and benefits |
|
35,629 |
|
|
35,421 |
|
||
|
Due to related persons |
|
2,247 |
|
|
18,883 |
|
||
|
Mortgage notes payable |
|
362 |
|
|
339 |
|
||
|
Accrued real estate taxes |
|
1,676 |
|
|
12,959 |
|
||
|
Security deposits and current portion of continuing care contracts |
|
434 |
|
|
3,468 |
|
||
|
Other current liabilities |
|
26,089 |
|
|
37,472 |
|
||
|
Liabilities held for sale |
|
12,544 |
|
|
— |
|
||
|
Total current liabilities |
|
164,300 |
|
|
229,693 |
|
||
|
|
|
|
|
|
||||
|
Long-term liabilities: |
|
|
|
|
||||
|
Mortgage notes payable |
|
7,171 |
|
|
7,533 |
|
||
|
Long-term portion of lease liabilities |
|
19,671 |
|
|
— |
|
||
|
Accrued self-insurance obligations |
|
33,872 |
|
|
33,030 |
|
||
|
Deferred gain on sale and leaseback transaction |
|
— |
|
|
59,478 |
|
||
|
Other long-term liabilities |
|
798 |
|
|
4,721 |
|
||
|
Total long-term liabilities |
|
61,512 |
|
|
104,762 |
|
||
|
|
|
|
|
|
||||
|
Shareholders’ equity: |
|
|
|
|
||||
|
Common stock, par value $.01: 75,000,000 shares authorized, 5,154,892 and 5,085,345 shares issued and outstanding at |
|
52 |
|
|
51 |
|
||
|
Additional paid in capital |
|
362,450 |
|
|
362,012 |
|
||
|
Accumulated deficit |
|
(245,184) |
|
|
(292,636) |
|
||
|
Accumulated other comprehensive income |
|
2,663 |
|
|
1,742 |
|
||
|
Total shareholders’ equity |
|
119,981 |
|
|
71,169 |
|
||
|
Total liabilities and shareholders’ equity |
|
$ |
345,793 |
|
|
$ |
405,624 |
|
FIVE STAR SENIOR LIVING INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(dollars 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 income (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 these non-GAAP financial measures to net income (loss) for the three months and years ended December 31, 2019 and 2018.
|
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
December 31, |
|
December 31, |
||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
Net income (loss) |
|
$ |
16,105 |
|
|
$ |
(23,658) |
|
|
$ |
(19,995) |
|
|
$ |
(74,083) |
|
|
Add (less): |
|
|
|
|
|
|
|
|
||||||||
|
Interest and other expense |
|
419 |
|
|
1,245 |
|
|
2,615 |
|
|
3,018 |
|
||||
|
Interest, dividend and other income |
|
(379) |
|
|
(241) |
|
|
(1,364) |
|
|
(818) |
|
||||
|
(Benefit) provision for income taxes |
|
(42) |
|
|
(27) |
|
|
56 |
|
|
247 |
|
||||
|
Depreciation and amortization expense |
|
2,716 |
|
|
8,965 |
|
|
16,640 |
|
|
35,939 |
|
||||
|
EBITDA |
|
18,819 |
|
|
(13,716) |
|
|
(2,048) |
|
|
(35,697) |
|
||||
|
Add (less): |
|
|
|
|
|
|
|
|
||||||||
|
Long lived asset impairment |
|
4 |
|
|
96 |
|
|
3,282 |
|
|
461 |
|
||||
|
Costs related to compliance assessment |
|
— |
|
|
— |
|
|
— |
|
|
(106) |
|
||||
|
Severance, net |
|
— |
|
|
756 |
|
|
393 |
|
|
756 |
|
||||
|
Employee litigation matter |
|
— |
|
|
— |
|
|
— |
|
|
605 |
|
||||
|
Lease inducement (1) |
|
(12,423) |
|
|
— |
|
|
(12,423) |
|
|
— |
|
||||
|
Deferred Resident Fees and Deposits (2) |
|
(4,242) |
|
|
— |
|
|
(4,242) |
|
|
— |
|
||||
|
Transaction costs (3) |
|
1,814 |
|
|
— |
|
|
11,952 |
|
|
— |
|
||||
|
Loss (gain) on sale of senior living communities |
|
6 |
|
|
— |
|
|
856 |
|
|
(7,131) |
|
||||
|
Adjusted EBITDA |
|
$ |
3,978 |
|
|
$ |
(12,864) |
|
|
$ |
(2,230) |
|
|
$ |
(41,112) |
|
- Lease inducement related to the Rent Reduction recognized for the applicable period in 2019 as a result of the completion of the Restructuring Transactions.
- Deferred Resident Fees and Deposits related to senior living communities Five Star previously leased from, and now manages for the account of, DHC, as a result of the completion of the Restructuring Transactions.
- Non-recurring costs incurred by Five Star in connection with the Restructuring Transactions.
FIVE STAR SENIOR LIVING INC.
SENIOR LIVING COMMUNITY FINANCIAL DATA(1)
(dollars in thousands)
(unaudited)
|
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
December 31, |
|
December 31, |
||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
Senior living revenue: |
|
|
|
|
|
|
|
|
||||||||
|
Independent and assisted living community revenue (owned) |
|
$ |
18,044 |
|
|
$ |
18,456 |
|
|
$ |
73,238 |
|
|
$ |
76,040 |
|
|
Independent and assisted living community revenue (leased) |
|
110,350 |
|
|
108,669 |
|
|
436,978 |
|
|
431,461 |
|
||||
|
Continuing care retirement community revenue (leased) |
|
99,069 |
|
|
97,473 |
|
|
389,496 |
|
|
387,184 |
|
||||
|
Skilled nursing facility revenue (leased) |
|
22,597 |
|
|
42,229 |
|
|
138,202 |
|
|
164,290 |
|
||||
|
Ageility physical therapy revenue |
|
13,645 |
|
|
9,469 |
|
|
47,269 |
|
|
35,429 |
|
||||
|
Total senior living revenue |
|
$ |
263,705 |
|
|
$ |
276,296 |
|
|
$ |
1,085,183 |
|
|
$ |
1,094,404 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Senior living wages and benefits: |
|
|
|
|
|
|
|
|
||||||||
|
Independent and assisted living community wages and benefits (owned) |
|
$ |
9,567 |
|
|
$ |
8,722 |
|
|
$ |
36,954 |
|
|
$ |
34,504 |
|
|
Independent and assisted living community wages and benefits (leased) |
|
53,523 |
|
|
50,591 |
|
|
207,552 |
|
|
194,652 |
|
||||
|
Continuing care retirement community wages and benefits (leased) |
|
50,654 |
|
|
51,054 |
|
|
203,962 |
|
|
202,556 |
|
||||
|
Skilled nursing facility wages and benefits (leased) |
|
15,580 |
|
|
28,485 |
|
|
95,747 |
|
|
110,113 |
|
||||
|
Ageility physical therapy wages and benefits |
|
9,849 |
|
|
6,654 |
|
|
32,912 |
|
|
24,243 |
|
||||
|
Insurance and other (2) |
|
(1,507) |
|
|
(1,160) |
|
|
(3,534) |
|
|
(2,805) |
|
||||
|
Total senior living wages and benefits |
|
$ |
137,666 |
|
|
$ |
144,346 |
|
|
$ |
573,593 |
|
|
$ |
563,263 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other senior living operating expenses: |
|
|
|
|
|
|
|
|
||||||||
|
Independent and assisted living community other operating expenses (owned) |
|
$ |
5,549 |
|
|
$ |
5,447 |
|
|
$ |
22,652 |
|
|
$ |
22,450 |
|
|
Independent and assisted living community other operating expenses (leased) |
|
30,210 |
|
|
29,722 |
|
|
119,642 |
|
|
115,904 |
|
||||
|
Continuing care retirement community other operating expenses (leased) |
|
27,336 |
|
|
27,225 |
|
|
109,997 |
|
|
108,931 |
|
||||
|
Skilled nursing facility other operating expenses (leased) |
|
6,221 |
|
|
11,209 |
|
|
40,181 |
|
|
48,065 |
|
||||
|
Ageility physical therapy other operating expenses |
|
1,544 |
|
|
938 |
|
|
5,080 |
|
|
2,848 |
|
||||
|
Insurance and other (2) |
|
(528) |
|
|
396 |
|
|
333 |
|
|
3,041 |
|
||||
|
Total other senior living operating expenses |
|
$ |
70,332 |
|
|
$ |
74,937 |
|
|
$ |
297,885 |
|
|
$ |
301,239 |
|
- Excludes data for managed communities.
- Insurance and other expenses primarily relate to Five Star’s captive insurance company subsidiary, which mainly participates in Five Star’s workers’ compensation and professional and general liability as well as certain auto insurance programs. Credit balances in senior living wages and benefits for insurance and other represent premiums earned by Five Star’s captive insurance company subsidiary in excess of expenses recorded during the applicable period.
FIVE STAR SENIOR LIVING INC.
COMPARABLE SENIOR LIVING COMMUNITY FINANCIAL DATA(1)
(dollars in thousands)
(unaudited)
|
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
December 31, (2) |
|
December 31, (3) |
||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
Senior living revenue: |
|
|
|
|
|
|
|
|
||||||||
|
Independent and assisted living community revenue (owned) |
|
$ |
18,044 |
|
|
$ |
18,456 |
|
|
$ |
73,238 |
|
|
$ |
73,564 |
|
|
Independent and assisted living community revenue (leased) |
|
110,350 |
|
|
108,669 |
|
|
436,978 |
|
|
431,461 |
|
||||
|
Continuing care retirement community revenue (leased) |
|
99,069 |
|
|
97,473 |
|
|
389,496 |
|
|
387,184 |
|
||||
|
Skilled nursing facility revenue (leased) |
|
22,616 |
|
|
22,951 |
|
|
91,320 |
|
|
85,586 |
|
||||
|
Ageility physical therapy revenue |
|
10,360 |
|
|
9,406 |
|
|
35,333 |
|
|
33,231 |
|
||||
|
Total senior living revenue |
|
$ |
260,439 |
|
|
$ |
256,955 |
|
|
$ |
1,026,365 |
|
|
$ |
1,011,026 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Senior living wages and benefits: |
|
|
|
|
|
|
|
|
||||||||
|
Independent and assisted living community wages and benefits (owned) |
|
$ |
9,567 |
|
|
$ |
8,729 |
|
|
$ |
36,954 |
|
|
$ |
33,611 |
|
|
Independent and assisted living community wages and benefits (leased) |
|
53,523 |
|
|
50,591 |
|
|
207,552 |
|
|
194,652 |
|
||||
|
Continuing care retirement community wages and benefits (leased) |
|
50,654 |
|
|
51,054 |
|
|
203,962 |
|
|
202,556 |
|
||||
|
Skilled nursing facility wages and benefits (leased) |
|
15,419 |
|
|
15,054 |
|
|
62,411 |
|
|
56,200 |
|
||||
|
Ageility physical therapy wages and benefits |
|
7,415 |
|
|
6,585 |
|
|
24,504 |
|
|
22,525 |
|
||||
|
Insurance and other (4) |
|
(1,507) |
|
|
(1,160) |
|
|
(3,534) |
|
|
(2,805) |
|
||||
|
Total senior living wages and benefits |
|
$ |
135,071 |
|
|
$ |
130,853 |
|
|
$ |
531,849 |
|
|
$ |
506,739 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other senior living operating expenses: |
|
|
|
|
|
|
|
|
||||||||
|
Independent and assisted living community other operating expenses (owned) |
|
$ |
5,549 |
|
|
$ |
5,479 |
|
|
$ |
22,648 |
|
|
$ |
21,548 |
|
|
Independent and assisted living community other operating expenses (leased) |
|
30,210 |
|
|
29,722 |
|
|
119,642 |
|
|
115,904 |
|
||||
|
Continuing care retirement community other operating expenses (leased) |
|
27,336 |
|
|
27,225 |
|
|
109,997 |
|
|
108,931 |
|
||||
|
Skilled nursing facility other operating expenses (leased) |
|
6,140 |
|
|
5,715 |
|
|
25,129 |
|
|
24,854 |
|
||||
|
Ageility physical therapy other operating expenses |
|
1,187 |
|
|
917 |
|
|
3,692 |
|
|
2,503 |
|
||||
|
Insurance and other (4) |
|
(528) |
|
|
396 |
|
|
333 |
|
|
3,041 |
|
||||
|
Total other senior living operating expenses |
|
$ |
69,894 |
|
|
$ |
69,454 |
|
|
$ |
281,441 |
|
|
$ |
276,781 |
|
- Excludes data for managed communities.
- Includes data for senior living communities that Five Star has owned or leased continuously since October 1, 2018.
- Includes data for senior living communities that Five Star has owned or leased continuously since January 1, 2018.
- Insurance and other expenses primarily relate to Five Star’s captive insurance company subsidiary, which mainly participates in Five Star’s workers’ compensation and professional and general liability insurance as well as certain auto programs. Credit balances in senior living wages and benefits for insurance and other represent premiums earned by Five Star’s captive insurance company subsidiary in excess of expenses recorded during the applicable period.
FIVE STAR SENIOR LIVING INC.
SENIOR LIVING OTHER OPERATING DATA
(unaudited)
|
|
|
Three Months Ended |
||||||||||||||||||
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
||||||||||
|
|
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
||||||||||
|
Independent and assisted living communities (owned): |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Number of communities (end of period) |
|
20 |
|
|
20 |
|
|
20 |
|
|
20 |
|
|
20 |
|
|||||
|
Number of units (end of period) |
|
2,108 |
|
|
2,108 |
|
|
2,108 |
|
|
2,108 |
|
|
2,108 |
|
|||||
|
Occupancy(1) |
|
81.0 |
% |
|
81.5 |
% |
|
81.4 |
% |
|
81.5 |
% |
|
82.3 |
% |
|||||
|
Avg. monthly rate(2) |
|
$ |
3,431 |
|
|
$ |
3,464 |
|
|
$ |
3,554 |
|
|
$ |
3,527 |
|
|
$ |
3,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Independent and assisted living communities (leased): |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Number of communities (end of period) |
|
128 |
|
|
128 |
|
|
128 |
|
|
128 |
|
|
128 |
|
|||||
|
Number of units (end of period) |
|
10,506 |
|
|
10,506 |
|
|
10,506 |
|
|
10,506 |
|
|
10,520 |
|
|||||
|
Occupancy(1) |
|
83.9 |
% |
|
84.2 |
% |
|
84.3 |
% |
|
83.8 |
% |
|
84.2 |
% |
|||||
|
Avg. monthly rate(2)(6) |
|
$ |
4,004 |
|
|
$ |
4,014 |
|
|
$ |
4,065 |
|
|
$ |
4,077 |
|
|
$ |
3,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Continuing care retirement communities (leased): |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Number of communities (end of period) |
|
31 |
|
|
31 |
|
|
31 |
|
|
31 |
|
|
31 |
|
|||||
|
Number of units (end of period)(3) |
|
7,070 |
|
|
7,070 |
|
|
7,070 |
|
|
7,070 |
|
|
7,117 |
|
|||||
|
Occupancy(1) |
|
83.5 |
% |
|
83.4 |
% |
|
83.7 |
% |
|
83.7 |
% |
|
82.9 |
% |
|||||
|
Avg. monthly rate(2)(7) |
|
$ |
5,341 |
|
|
$ |
5,294 |
|
|
$ |
5,415 |
|
|
$ |
5,484 |
|
|
$ |
5,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Skilled nursing facilities (leased): |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Number of communities (end of period) |
|
11 |
|
|
11 |
|
|
26 |
|
|
29 |
|
|
29 |
|
|||||
|
Number of units (end of period)(4) |
|
1,264 |
|
|
1,264 |
|
|
2,228 |
|
|
2,506 |
|
|
2,505 |
|
|||||
|
Occupancy(1) |
|
73.7 |
% |
|
75.7 |
% |
|
77.1 |
% |
|
78.4 |
% |
|
77.9 |
% |
|||||
|
Avg. monthly rate(2) |
|
$ |
7,904 |
|
|
$ |
7,136 |
|
|
$ |
7,037 |
|
|
$ |
7,258 |
|
|
$ |
7,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total senior living communities (owned and leased): |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Number of communities (end of period) |
|
190 |
|
|
190 |
|
|
205 |
|
|
208 |
|
|
208 |
|
|||||
|
Number of units (end of period) |
|
20,948 |
|
|
20,948 |
|
|
21,912 |
|
|
22,190 |
|
|
22,250 |
|
|||||
|
Occupancy(1) |
|
82.9 |
% |
|
82.9 |
% |
|
83.0 |
% |
|
82.9 |
% |
|
82.9 |
% |
|||||
|
Avg. monthly rate(2)(6)(7) |
|
$ |
4,611 |
|
|
$ |
4,654 |
|
|
$ |
4,745 |
|
|
$ |
4,818 |
|
|
$ |
4,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Managed communities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Number of communities (end of period) |
|
78 |
|
|
77 |
|
|
77 |
|
|
76 |
|
|
76 |
|
|||||
|
Number of units (end of period)(5) |
|
10,337 |
|
|
10,168 |
|
|
10,084 |
|
|
9,766 |
|
|
9,766 |
|
|||||
|
Occupancy(1) |
|
83.9 |
% |
|
84.7 |
% |
|
85.4 |
% |
|
86.3 |
% |
|
86.5 |
% |
|||||
|
Avg. monthly rate(2) |
|
$ |
4,156 |
|
|
$ |
4,110 |
|
|
$ |
4,171 |
|
|
$ |
4,275 |
|
|
$ |
4,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Other ancillary services: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Number of Ageility physical therapy inpatient clinics (end of period) |
|
41 |
|
|
41 |
|
|
45 |
|
|
46 |
|
|
47 |
|
|||||
|
Number of Ageility physical therapy outpatient clinics (end of period) |
|
190 |
|
|
171 |
|
|
142 |
|
|
137 |
|
|
128 |
|
|||||
|
Number of home health communities served (end of period) |
|
— |
|
|
3 |
|
|
10 |
|
|
12 |
|
|
10 |
|
|||||
Contacts
Michael Kodesch, Director, Investor Relations
617) 796-8245
