(Nasdaq: FVE) today announced its financial results for the quarter and six months ended June 30, 2019.
"We are excited to report substantial progress during the quarter, our first profitable period since the second quarter of 2013," stated Katie Potter, President and Chief Executive Officer of Five Star Senior Living Inc. "Notably, we are very pleased that there no longer exists a substantial doubt about our continuing as a going concern. Additionally, we are pleased that we generated Adjusted EBITDA of $8.6 million this quarter and occupancy at owned and leased communities has increased, or remained flat, for the last five consecutive quarters, increasing 160 basis points this quarter compared to last year. We remain on track regarding the restructuring of our business arrangements with Senior Housing Properties Trust and we made significant strides regarding this effort during the quarter, including receiving stockholder approval to move forward with the restructuring and closing on our new $65.0 million secured revolving credit facility."
Financial Results for the quarter ended June 30, 2019:
Operating Results for the quarter ended June 30, 2019:
Financial Results for the six months ended June 30, 2019:
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.
Financing Activities:
In June 2019, Five Star entered into a new $65.0 million secured revolving credit facility, which replaced its previously existing secured revolving credit facility. At the time it entered into the new credit facility, Five Star had borrowings of approximately $51.5 million outstanding under its previous credit facility, which amount remained outstanding under the new credit facility until Five Star fully repaid that amount later in June 2019. The new credit facility matures in June 2021, and, subject to Five Star's payment of extension fees and meeting other conditions, Five Star has the option to extend the stated maturity date of the new credit facility for a one year period. Five Star is required to pay interest at an annual rate of LIBOR plus 250 basis points per annum, or at a base rate, as defined in the agreement governing the credit facility, plus 150 basis points per annum, on borrowings under the new credit facility. Other terms of the new credit facility are substantially similar to those of Five Star's previously existing credit facility.
Other:
Conference Call:
At 10:00 a.m. Eastern Time this morning, President and Chief Executive Officer, Katherine Potter, and Executive Vice President, Chief Financial Officer and Treasurer, Jeffrey Leer, will host a conference call to discuss Five Star's second 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, August 14, 2019. To access the replay, dial (412) 317-0088. The replay pass code is 10132499.
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 second 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 June 30, 2019, Five Star operated 282 senior living communities with 31,996 living units located in 33 states, including 205 communities (21,912 living units) that it owned or leased and 77 communities (10,084 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 June 30, |
|
Six Months Ended June 30, |
||||||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||||||
Senior living revenue |
|
$ |
|
274,496 |
|
|
$ |
|
270,882 |
|
|
$ |
|
551,431 |
|
|
$ |
|
545,407 |
|
Management fee revenue |
|
|
4,024 |
|
|
|
3,777 |
|
|
|
8,007 |
|
|
|
7,399 |
|
||||
Reimbursed costs incurred on behalf of managed communities |
|
|
77,219 |
|
|
|
68,439 |
|
|
|
151,824 |
|
|
|
135,809 |
|
||||
Total revenues |
|
|
355,739 |
|
|
|
343,098 |
|
|
|
711,262 |
|
|
|
688,615 |
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||||||
Senior living wages and benefits |
|
|
145,249 |
|
|
|
140,713 |
|
|
|
288,879 |
|
|
|
276,882 |
|
||||
Other senior living operating expenses |
|
|
72,576 |
|
|
|
75,764 |
|
|
|
149,344 |
|
|
|
149,541 |
|
||||
Costs incurred on behalf of managed communities |
|
|
77,219 |
|
|
|
68,439 |
|
|
|
151,824 |
|
|
|
135,809 |
|
||||
Rent expense |
|
|
33,262 |
|
|
|
52,113 |
|
|
|
87,804 |
|
|
|
104,358 |
|
||||
General and administrative expenses |
|
|
20,548 |
|
|
|
18,477 |
|
|
|
47,050 |
|
|
|
38,440 |
|
||||
Depreciation and amortization expense |
|
|
2,941 |
|
|
|
8,977 |
|
|
|
11,106 |
|
|
|
17,837 |
|
||||
Loss (gain) on sale of senior living communities |
|
|
101 |
|
|
|
(1,509 |
) |
|
|
101 |
|
|
|
(7,193 |
) |
||||
Long lived asset impairment |
|
|
112 |
|
|
|
365 |
|
|
|
3,260 |
|
|
|
365 |
|
||||
Total operating expenses |
|
|
352,008 |
|
|
|
363,339 |
|
|
|
739,368 |
|
|
|
716,039 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss) |
|
|
3,731 |
|
|
|
(20,241 |
) |
|
|
(28,106 |
) |
|
|
(27,424 |
) |
||||
|
|
|
|
|
|
|
|
|
||||||||||||
Interest, dividend and other income |
|
|
415 |
|
|
|
218 |
|
|
|
571 |
|
|
|
385 |
|
||||
Interest and other expense |
|
|
(906 |
) |
|
|
(604 |
) |
|
|
(1,812 |
) |
|
|
(1,307 |
) |
||||
Unrealized (loss) gain on equity investments |
|
|
(38 |
) |
|
|
44 |
|
|
|
328 |
|
|
|
(6 |
) |
||||
Realized gain (loss) on sale of debt and equity investments, net of tax |
|
|
144 |
|
|
|
(42 |
) |
|
|
236 |
|
|
|
(10 |
) |
||||
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in earnings of an investee |
|
|
3,346 |
|
|
|
(20,625 |
) |
|
|
(28,783 |
) |
|
|
(28,362 |
) |
||||
Benefit (provision) for income taxes |
|
|
705 |
|
|
|
(281 |
) |
|
|
(785 |
) |
|
|
(537 |
) |
||||
Equity in earnings of an investee, net of tax |
|
|
130 |
|
|
|
12 |
|
|
|
534 |
|
|
|
56 |
|
||||
Net income (loss) |
|
$ |
|
4,181 |
|
|
$ |
|
(20,894 |
) |
|
$ |
|
(29,034 |
) |
|
$ |
|
(28,843 |
) |
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average shares outstanding?basic |
|
|
50,067 |
|
|
|
49,653 |
|
|
|
50,054 |
|
|
|
49,624 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average shares outstanding?diluted |
|
|
51,422 |
|
|
|
49,653 |
|
|
|
50,054 |
|
|
|
49,624 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) per share?basic |
|
$ |
|
0.08 |
|
|
$ |
|
(0.42 |
) |
|
$ |
|
(0.58 |
) |
|
$ |
|
(0.58 |
) |
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) per share?diluted |
|
$ |
|
0.08 |
|
|
$ |
|
(0.42 |
) |
|
$ |
|
(0.58 |
) |
|
$ |
|
(0.58 |
) |
FIVE STAR SENIOR LIVING INC.
|
||||||||||
|
|
June 30, |
|
December 31, |
||||||
|
|
2019 |
|
2018 |
||||||
Assets |
|
|
|
|
||||||
Current assets: |
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
|
35,500 |
|
|
$ |
|
29,512 |
|
Accounts receivable, net of allowance |
|
|
36,619 |
|
|
|
37,758 |
|
||
Due from related persons |
|
|
3,698 |
|
|
|
7,855 |
|
||
Investments |
|
|
21,275 |
|
|
|
20,179 |
|
||
Restricted cash |
|
|
23,880 |
|
|
|
19,720 |
|
||
Prepaid expenses and other current assets |
|
|
20,844 |
|
|
|
23,029 |
|
||
Assets held for sale |
|
|
11,218 |
|
|
? |
||||
Total current assets |
|
|
153,034 |
|
|
|
138,053 |
|
||
|
|
|
|
|
||||||
Property and equipment, net |
|
|
165,382 |
|
|
|
243,873 |
|
||
Equity investment of an investee |
|
|
9,303 |
|
|
|
8,633 |
|
||
Restricted cash |
|
|
1,029 |
|
|
|
923 |
|
||
Restricted investments |
|
|
6,267 |
|
|
|
8,073 |
|
||
Right of use assets |
|
|
909,267 |
|
|
? |
||||
Other long term assets |
|
|
5,739 |
|
|
|
6,069 |
|
||
Total assets |
|
$ |
|
1,250,021 |
|
|
$ |
|
405,624 |
|
|
|
|
|
|
||||||
Liabilities and Shareholders' Equity |
|
|
|
|
||||||
Current liabilities: |
|
|
|
|
||||||
Revolving credit facility |
|
$ |
|
? |
|
$ |
|
51,484 |
|
|
Accounts payable and accrued expenses |
|
|
65,961 |
|
|
|
69,667 |
|
||
Current portion of lease liabilities |
|
|
94,368 |
|
|
? |
||||
Accrued compensation and benefits |
|
|
41,810 |
|
|
|
35,421 |
|
||
Due to related persons |
|
|
18,359 |
|
|
|
18,883 |
|
||
Mortgage notes payable |
|
|
350 |
|
|
|
339 |
|
||
Accrued real estate taxes |
|
|
1,777 |
|
|
|
12,959 |
|
||
Security deposits and current portion of continuing care contracts |
|
|
766 |
|
|
|
3,468 |
|
||
Other current liabilities |
|
|
34,089 |
|
|
|
37,472 |
|
||
Liabilities held for sale |
|
|
12,615 |
|
|
? |
||||
Total current liabilities |
|
|
270,095 |
|
|
|
229,693 |
|
||
|
|
|
|
|
||||||
Long term liabilities: |
|
|
|
|
||||||
Mortgage notes payable |
|
|
7,355 |
|
|
|
7,533 |
|
||
Long term portion of lease liabilities |
|
|
829,956 |
|
|
? |
||||
Accrued self insurance obligations |
|
|
31,148 |
|
|
|
33,030 |
|
||
Deferred gain on sale and leaseback transaction |
|
? |
|
|
59,478 |
|
||||
Other long term liabilities |
|
|
1,721 |
|
|
|
4,721 |
|
||
Total long term liabilities |
|
|
870,180 |
|
|
|
104,762 |
|
||
|
|
|
|
|
||||||
Shareholders' equity: |
|
|
|
|
||||||
Common stock, par value $.01: 75,000,000 shares authorized, 50,865,892 and 50,853,452 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively |
|
|
508 |
|
|
|
508 |
|
||
Additional paid in capital |
|
|
361,777 |
|
|
|
361,555 |
|
||
Accumulated deficit |
|
|
(254,197 |
) |
|
|
(292,636 |
) |
||
Accumulated other comprehensive income |
|
|
1,658 |
|
|
|
1,742 |
|
||
Total shareholders' equity |
|
|
109,746 |
|
|
|
71,169 |
|
||
Total liabilities and shareholders' equity |
|
$ |
|
1,250,021 |
|
|
$ |
|
405,624 |
|
FIVE STAR SENIOR LIVING INC.
|
||||||||||
|
|
Six Months Ended June 30, |
||||||||
|
|
2019 |
|
2018 |
||||||
Cash flows from operating activities: |
|
|
|
|
||||||
Net loss |
|
$ |
|
(29,034 |
) |
|
$ |
|
(28,843 |
) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: |
|
|
|
|
||||||
Depreciation and amortization expense |
|
|
11,106 |
|
|
|
17,837 |
|
||
Loss (gain) on sale of senior living communities |
|
|
101 |
|
|
|
(7,193 |
) |
||
Unrealized (gain) loss on equity securities |
|
|
(328 |
) |
|
|
6 |
|
||
Realized (gain) loss on sale of debt and equity investments |
|
|
(236 |
) |
|
|
10 |
|
||
Loss on disposal of property and equipment |
|
|
86 |
|
|
|
209 |
|
||
Long lived asset impairment |
|
|
3,260 |
|
|
|
365 |
|
||
Equity in earnings of an investee, net of tax |
|
|
(534 |
) |
|
|
(56 |
) |
||
Stock based compensation |
|
|
222 |
|
|
|
491 |
|
||
Provision for losses on receivables |
|
|
2,092 |
|
|
|
2,637 |
|
||
Amortization of non-cash rent adjustments |
|
|
(472 |
) |
|
|
(3,305 |
) |
||
Other noncash expense (income) adjustments, net |
|
|
62 |
|
|
|
96 |
|
||
Changes in assets and liabilities: |
|
|
|
|
||||||
Accounts receivable |
|
|
(953 |
) |
|
|
187 |
|
||
Prepaid expenses and other assets |
|
|
3,110 |
|
|
|
4,766 |
|
||
Accounts payable and accrued expenses |
|
|
(5,123 |
) |
|
|
(11,165 |
) |
||
Accrued compensation and benefits |
|
|
6,389 |
|
|
|
2,742 |
|
||
Due from (to) related persons, net |
|
|
16,486 |
|
|
|
(1,798 |
) |
||
Other current and long term liabilities |
|
|
293 |
|
|
|
(302 |
) |
||
Cash provided by (used in) operating activities |
|
|
6,527 |
|
|
|
(23,316 |
) |
||
|
|
|
|
|
||||||
Cash flows from investing activities: |
|
|
|
|
||||||
Acquisition of property and equipment |
|
|
(24,427 |
) |
|
|
(23,680 |
) |
||
Purchases of investments |
|
|
(2,234 |
) |
|
|
(2,682 |
) |
||
Proceeds from sale of property and equipment |
|
|
78,920 |
|
|
|
8,529 |
|
||
Proceeds from sale of communities |
|
? |
|
|
31,853 |
|
||||
Proceeds from sale of investments |
|
|
4,446 |
|
|
|
4,981 |
|
||
Cash provided by investing activities |
|
|
56,705 |
|
|
|
19,001 |
|
||
|
|
|
|
|
||||||
Cash flows from financing activities: |
|
|
|
|
||||||
Proceeds from borrowings on revolving credit facility |
|
? |
|
|
5,000 |
|
||||
Repayments of borrowings on revolving credit facility |
|
|
(51,484 |
) |
|
|
(5,000 |
) |
||
Repayments of mortgage notes payable |
|
|
(181 |
) |
|
|
(343 |
) |
||
Payment of deferred financing fees |
|
|
(1,271 |
) |
|
? |
||||
Cash used in financing activities |
|
|
(52,936 |
) |
|
|
(343 |
) |
||
|
|
|
|
|
||||||
Change in cash and cash equivalents and restricted cash |
|
|
10,296 |
|
|
|
(4,658 |
) |
||
Cash and cash equivalents and restricted cash at beginning of period |
|
|
50,155 |
|
|
|
48,478 |
|
||
Cash and cash equivalents and restricted cash at end of period |
|
$ |
|
60,451 |
|
|
$ |
|
43,820 |
|
|
|
|
|
|
||||||
Reconciliation of cash and cash equivalents and restricted cash: |
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
|
35,500 |
|
|
$ |
|
22,137 |
|
Restricted cash |
|
|
24,909 |
|
|
|
21,683 |
|
||
Restricted cash presented in assets held for sale |
|
|
42 |
|
|
? |
||||
Cash and cash equivalents and restricted cash at end of period |
|
$ |
|
60,451 |
|
|
$ |
|
43,820 |
|
|
|
|
|
|
||||||
Supplemental cash flow information: |
|
|
|
|
||||||
Cash paid for interest |
|
$ |
|
1,565 |
|
|
$ |
|
1,002 |
|
Cash (received) paid for income taxes, net |
|
$ |
|
(1,491 |
) |
|
$ |
|
348 |
|
|
|
|
|
|
||||||
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 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 loss for each of the three and six months ended June 30, 2019 and 2018.
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||||||
Net income (loss) |
|
$ |
|
4,181 |
|
|
$ |
|
(20,894 |
) |
|
$ |
|
(29,034 |
) |
|
$ |
|
(28,843 |
) |
Add (less): |
|
|
|
|
|
|
|
|
||||||||||||
Interest and other expense |
|
|
906 |
|
|
|
604 |
|
|
|
1,812 |
|
|
|
1,307 |
|
||||
Provision for income taxes |
|
|
(705 |
) |
|
|
281 |
|
|
|
785 |
|
|
|
537 |
|
||||
Depreciation and amortization expense |
|
|
2,941 |
|
|
|
8,977 |
|
|
|
11,106 |
|
|
|
17,837 |
|
||||
Interest, dividend and other income |
|
|
(415 |
) |
|
|
(218 |
) |
|
|
(571 |
) |
|
|
(385 |
) |
||||
EBITDA |
|
|
6,908 |
|
|
|
(11,250 |
) |
|
|
(15,902 |
) |
|
|
(9,547 |
) |
||||
Add (less): |
|
|
|
|
|
|
|
|
||||||||||||
Long lived asset impairment |
|
|
112 |
|
|
|
365 |
|
|
|
3,260 |
|
|
|
365 |
|
||||
Costs related to compliance assessment |
|
? |
|
|
20 |
|
|
? |
|
|
(118 |
) |
||||||||
Employee litigation matter |
|
? |
|
|
224 |
|
|
? |
|
|
605 |
|
||||||||
Loss (gain) on sale of senior living communities |
|
|
101 |
|
|
|
(1,509 |
) |
|
|
101 |
|
|
|
(7,193 |
) |
||||
Severance, net |
|
|
393 |
|
|
? |
|
|
393 |
|
|
? |
||||||||
Transaction costs (1) |
|
|
1,133 |
|
|
? |
|
|
8,808 |
|
|
? |
||||||||
Adjusted EBITDA |
|
$ |
|
8,647 |
|
|
$ |
|
(12,150 |
) |
|
$ |
|
(3,340 |
) |
|
$ |
|
(15,888 |
|
(1) Costs incurred by Five Star related to the Transaction Agreement.
FIVE STAR SENIOR LIVING INC.
|
||||||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||||||
Senior living revenue: |
|
|
|
|
|
|
|
|
||||||||||||
Independent and assisted living community revenue (owned) |
|
$ |
|
18,593 |
|
|
$ |
|
19,331 |
|
|
$ |
|
36,869 |
|
|
$ |
|
39,049 |
|
Independent and assisted living community revenue (leased) |
|
|
109,445 |
|
|
|
107,380 |
|
|
|
217,421 |
|
|
|
214,674 |
|
||||
Continuing care retirement community revenue (leased) |
|
|
97,186 |
|
|
|
95,070 |
|
|
|
194,681 |
|
|
|
192,848 |
|
||||
Skilled nursing facility revenue (leased) |
|
|
38,169 |
|
|
|
40,365 |
|
|
|
80,952 |
|
|
|
81,449 |
|
||||
Ageility physical therapy revenue |
|
|
11,103 |
|
|
|
8,736 |
|
|
|
21,508 |
|
|
|
17,387 |
|
||||
Total senior living revenue |
|
$ |
|
274,496 |
|
|
$ |
|
270,882 |
|
|
$ |
|
551,431 |
|
|
$ |
|
545,407 |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Senior living wages and benefits: |
|
|
|
|
|
|
|
|
||||||||||||
Independent and assisted living community wages and benefits (owned) |
|
$ |
|
9,109 |
|
|
$ |
|
8,781 |
|
|
$ |
|
17,825 |
|
|
$ |
|
17,163 |
|
Independent and assisted living community wages and benefits (leased) |
|
|
51,264 |
|
|
|
47,850 |
|
|
|
100,909 |
|
|
|
94,300 |
|
||||
Continuing care retirement community wages and benefits (leased) |
|
|
51,020 |
|
|
|
50,787 |
|
|
|
101,277 |
|
|
|
100,729 |
|
||||
Skilled nursing facility wages and benefits (leased) |
|
|
27,100 |
|
|
|
27,690 |
|
|
|
55,888 |
|
|
|
54,496 |
|
||||
Ageility physical therapy wages and benefits |
|
|
7,567 |
|
|
|
5,894 |
|
|
|
14,355 |
|
|
|
11,568 |
|
||||
Insurance and other (2) |
|
|
(811 |
) |
|
|
(289 |
) |
|
|
(1,375 |
) |
|
|
(1,374 |
) |
||||
Total senior living wages and benefits |
|
$ |
|
145,249 |
|
|
$ |
|
140,713 |
|
|
$ |
|
288,879 |
|
|
$ |
|
276,882 |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other senior living operating expenses: |
|
|
|
|
|
|
|
|
||||||||||||
Independent and assisted living community other operating expenses (owned) |
|
$ |
|
5,593 |
|
|
$ |
|
5,844 |
|
|
$ |
|
11,319 |
|
|
$ |
|
11,519 |
|
Independent and assisted living community other operating expenses (leased) |
|
|
28,561 |
|
|
|
29,048 |
|
|
|
58,187 |
|
|
|
57,256 |
|
||||
Continuing care retirement community other operating expenses (leased) |
|
|
26,098 |
|
|
|
27,273 |
|
|
|
53,644 |
|
|
|
53,712 |
|
||||
Skilled nursing facility other operating expenses (leased) |
|
|
10,595 |
|
|
|
12,038 |
|
|
|
23,469 |
|
|
|
25,010 |
|
||||
Ageility physical therapy other operating expenses |
|
|
1,253 |
|
|
|
633 |
|
|
|
2,284 |
|
|
|
1,101 |
|
||||
Insurance and other (2) |
|
|
476 |
|
|
|
928 |
|
|
|
441 |
|
|
|
943 |
|
||||
Total other senior living operating expenses |
|
$ |
|
72,576 |
|
|
$ |
|
75,764 |
|
|
$ |
|
149,344 |
|
|
$ |
|
149,541 |
|
(1) Excludes data for managed communities.
(2) 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 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.
|
||||||||||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||||||
Senior living revenue: |
|
|
|
|
|
|
|
|
||||||||||||
Independent and assisted living community revenue (owned) |
|
$ |
|
18,593 |
|
|
$ |
|
18,391 |
|
|
$ |
|
36,869 |
|
|
$ |
|
36,576 |
|
Independent and assisted living community revenue (leased) |
|
|
109,445 |
|
|
|
107,380 |
|
|
|
217,421 |
|
|
|
214,674 |
|
||||
Continuing care retirement community revenue (leased) |
|
|
97,186 |
|
|
|
95,070 |
|
|
|
194,681 |
|
|
|
192,848 |
|
||||
Skilled nursing facility revenue (leased) |
|
|
36,183 |
|
|
|
33,348 |
|
|
|
72,497 |
|
|
|
66,768 |
|
||||
Ageility physical therapy revenue |
|
|
9,703 |
|
|
|
8,536 |
|
|
|
18,112 |
|
|
|
16,801 |
|
||||
Total senior living revenue |
|
$ |
|
271,110 |
|
|
$ |
|
262,725 |
|
|
$ |
|
539,580 |
|
|
$ |
|
527,667 |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Senior living wages and benefits: |
|
|
|
|
|
|
|
|
||||||||||||
Independent and assisted living community wages and benefits (owned) |
|
$ |
|
9,109 |
|
|
$ |
|
8,375 |
|
|
$ |
|
17,825 |
|
|
$ |
|
16,260 |
|
Independent and assisted living community wages and benefits (leased) |
|
|
51,264 |
|
|
|
47,850 |
|
|
|
100,909 |
|
|
|
94,300 |
|
||||
Continuing care retirement community wages and benefits (leased) |
|
|
51,020 |
|
|
|
50,787 |
|
|
|
101,277 |
|
|
|
100,729 |
|
||||
Skilled nursing facility wages and benefits (leased) |
|
|
25,654 |
|
|
|
23,179 |
|
|
|
50,333 |
|
|
|
45,256 |
|
||||
Ageility physical therapy wages and benefits |
|
|
6,652 |
|
|
|
5,754 |
|
|
|
12,133 |
|
|
|
11,101 |
|
||||
Insurance and other (4) |
|
|
(811 |
) |
|
|
(289 |
) |
|
|
(1,375 |
) |
|
|
(1,374 |
) |
||||
Total senior living wages and benefits |
|
$ |
|
142,888 |
|
|
$ |
|
135,656 |
|
|
$ |
|
281,102 |
|
|
$ |
|
266,272 |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other senior living operating expenses: |
|
|
|
|
|
|
|
|
||||||||||||
Independent and assisted living community other operating expenses (owned) |
|
$ |
|
5,593 |
|
|
$ |
|
5,460 |
|
|
$ |
|
11,319 |
|
|
$ |
|
10,607 |
|
Independent and assisted living community other operating expenses (leased) |
|
|
28,561 |
|
|
|
29,048 |
|
|
|
58,187 |
|
|
|
57,256 |
|
||||
Continuing care retirement community other operating expenses (leased) |
|
|
26,098 |
|
|
|
27,273 |
|
|
|
53,644 |
|
|
|
53,712 |
|
||||
Skilled nursing facility other operating expenses (leased) |
|
|
9,982 |
|
|
|
9,868 |
|
|
|
21,019 |
|
|
|
20,443 |
|
||||
Ageility physical therapy other operating expenses |
|
|
1,098 |
|
|
|
(12 |
) |
|
|
1,893 |
|
|
|
998 |
|
||||
Insurance and other (4) |
|
|
476 |
|
|
|
928 |
|
|
|
441 |
|
|
|
943 |
|
||||
Total other senior living operating expenses |
|
$ |
|
71,808 |
|
|
$ |
|
72,565 |
|
|
$ |
|
146,503 |
|
|
$ |
|
143,959 |
|
(1) Excludes data for managed communities.
(2) Includes data for senior living communities that Five Star has owned or leased continuously since April 1, 2018.
(3) Includes data for senior living communities that Five Star has owned or leased continuously since January 1, 2018.
(4) 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 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.
|
|||||||||||||||||||||||||
|
|
Three Months Ended |
|||||||||||||||||||||||
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|||||||||||||||
|
|
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|||||||||||||||
Independent and assisted living communities (owned):(1) |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
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(2) |
|
|
81.4 |
% |
|
|
81.5 |
% |
|
|
82.3 |
% |
|
|
81.5 |
% |
|
|
81.1 |
% |
|||||
Avg. monthly rate(3) |
|
$ |
|
3,554 |
|
$ |
|
3,527 |
|
$ |
|
3,458 |
|
$ |
|
3,442 |
|
$ |
|
3,392 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
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 |
|
|
10,520 |
|
|
10,520 |
|
|
10,519 |
||||||||||
Occupancy(2) |
|
|
84.3 |
% |
|
|
83.8 |
% |
|
|
84.2 |
% |
|
|
83.7 |
% |
|
|
83.6 |
% |
|||||
Avg. monthly rate(3) |
|
$ |
|
4,065 |
|
$ |
|
4,077 |
|
$ |
|
3,991 |
|
$ |
|
3,991 |
|
$ |
|
4,024 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Continuing care retirement communities (leased): |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Number of communities (end of period) |
|
|
31 |
|
|
31 |
|
|
31 |
|
|
31 |
|
|
31 |
||||||||||
Number of units (end of period)(4) |
|
|
7,070 |
|
|
7,070 |
|
|
7,117 |
|
|
7,157 |
|
|
7,158 |
||||||||||
Occupancy(2) |
|
|
83.7 |
% |
|
|
83.7 |
% |
|
|
82.9 |
% |
|
|
81.3 |
% |
|
|
80.6 |
% |
|||||
Avg. monthly rate(3) |
|
$ |
|
5,415 |
|
$ |
|
5,484 |
|
$ |
|
5,383 |
|
$ |
|
5,427 |
|
$ |
|
5,433 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Skilled nursing facilities (leased): |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Number of communities (end of period) |
|
|
26 |
|
|
29 |
|
|
29 |
|
|
29 |
|
|
29 |
||||||||||
Number of units (end of period)(5) |
|
|
2,228 |
|
|
2,506 |
|
|
2,505 |
|
|
2,505 |
|
|
2,505 |
||||||||||
Occupancy(2) |
|
|
77.1 |
% |
|
|
78.4 |
% |
|
|
77.9 |
% |
|
|
76.9 |
% |
|
|
74.7 |
% |
|||||
Avg. monthly rate(3) |
|
$ |
|
7,037 |
|
$ |
|
7,258 |
|
$ |
|
7,049 |
|
$ |
|
6,874 |
|
$ |
|
6,926 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total senior living communities (owned and leased): |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Number of communities (end of period) |
|
|
205 |
|
|
208 |
|
|
208 |
|
|
208 |
|
|
208 |
||||||||||
Number of units (end of period) |
|
|
21,912 |
|
|
22,190 |
|
|
22,250 |
|
|
22,290 |
|
|
22,290 |
||||||||||
Occupancy(2) |
|
|
83.0 |
% |
|
|
82.9 |
% |
|
|
82.9 |
% |
|
|
82.0 |
% |
|
|
81.4 |
% |
|||||
Avg. monthly rate(3) |
|
$ |
|
4,745 |
|
$ |
|
4,818 |
|
$ |
|
4,710 |
|
$ |
|
4,701 |
|
$ |
|
4,709 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Managed communities:(1) |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Number of communities (end of period) |
|
|
77 |
|
|
76 |
|
|
76 |
|
|
75 |
|
|
75 |
||||||||||
Number of units (end of period)(6) |
|
|
10,084 |
|
|
9,766 |
|
|
9,766 |
|
|
9,515 |
|
|
9,510 |
||||||||||
Occupancy(2) |
|
|
85.4 |
% |
|
|
86.3 |
% |
|
|
86.5 |
% |
|
|
86.7 |
% |
|
|
86.1 |
% |
|||||
Avg. monthly rate(3) |
|
$ |
|
4,171 |
|
$ |
|
4,275 |
|
$ |
|
4,149 |
|
$ |
|
4,164 |
|
$ |
|
4,242 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Other ancillary services: |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Number of ageility physical therapy inpatient clinics (end of period) |
|
|
45 |
|
|
46 |
|
|
47 |
|
|
47 |
|
|
47 |
||||||||||
Number of ageility physical therapy outpatient clinics (end of period) |
|
|
142 |
|
|
137 |
|
|
128 |
|
|
120 |
|
|
111 |
||||||||||
Number of home health communities served (end of period) |
|
|
10 |
|
|
12 |
|
|
10 |
|
|
12 |
|
|
12 |
||||||||||
(1) Occupancy and average monthly rate for the three months ended June 30, 2018 include data for the senior living communities that were sold to SNH during that period as owned until the time of sale and as managed from the time of sale through the end of such period.
(2) Includes living units categorized as in service. As a result, the number of living units may vary from period to period for reasons other than the acquisition or sale of senior living communities.|
(3) Average monthly rate is calculated by taking the average daily rate, which is defined as total operating revenues for senior living services divided by occupied units during the period, and multiplying it by 30 days.
(4) Includes 1,813 skilled nursing units in communities where assisted living and independent living services are the predominant services provided.
(5) Includes 76 assisted living and independent living units in communities where skilled nursing services are the predominant services provided.
(6) Includes 427 skilled nursing units in communities where assisted living and independent living services are the predominant services provided.
FIVE STAR SENIOR LIVING INC.
|
||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||
Independent and assisted living communities (owned): |
|
|
|
|
|
|
|
|
||||
Private and other sources |
|
98.2 |
% |
|
98.8 |
% |
|
98.5 |
% |
|
98.8 |
% |
Medicaid |
|
1.8 |
% |
|
1.2 |
% |
|
1.5 |
% |
|
1.2 |
% |
Total |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
||||
Independent and assisted living communities (leased): |
|
|
|
|
|
|
|
|
||||
Private and other sources |
|
98.8 |
% |
|
98.9 |
% |
|
98.8 |
% |
|
99.0 |
% |
Medicaid |
|
1.2 |
% |
|
1.1 |
% |
|
1.2 |
% |
|
1.0 |
% |
Total |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
||||
Continuing care retirement communities (leased): |
|
|
|
|
|
|
|
|
||||
Private and other sources |
|
75.2 |
% |
|
74.9 |
% |
|
75.0 |
% |
|
73.9 |
% |
Medicare |
|
16.8 |
% |
|
17.5 |
% |
|
17.0 |
% |
|
18.5 |
% |
Medicaid |
|
8.0 |
% |
|
7.6 |
% |
|
8.0 |
% |
|
7.6 |
% |
Total |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
||||
Skilled nursing facilities (leased): |
|
|
|
|
|
|
|
|
||||
Private and other sources |
|
23.7 |
% |
|
20.0 |
% |
|
22.7 |
% |
|
20.5 |
% |
Medicare |
|
17.2 |
% |
|
19.0 |
% |
|
17.6 |
% |
|
19.3 |
% |
Medicaid |
|
59.1 |
% |
|
61.0 |
% |
|
59.7 |
% |
|
60.2 |
% |
Total |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
||||
Total senior living communities (owned and leased): |
|
|
|
|
|
|
|
|
||||
Private and other sources |
|
79.1 |
% |
|
78.0 |
% |
|
78.4 |
% |
|
77.6 |
% |
Medicare |
|
8.7 |
% |
|
9.3 |
% |
|
8.9 |
% |
|
9.8 |
% |
Medicaid |
|
12.2 |
% |
|
12.7 |
% |
|
12.7 |
% |
|
12.6 |
% |
Total |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
(1) Excludes data for managed communities.
Warning Concerning Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever Five Star uses words such as "believe", "expect", "anticipate", "intend", "plan", "estimate", "will", "may" and negatives or derivatives of these or similar expressions, Five Star is making forward-looking statements. These forward-looking statements are based upon Five Star's present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by Five Star's forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond Five Star's control. For example:
The information contained in Five Star's filings with the SEC, including under "Risk Factors" in Five Star's periodic reports, or incorporated therein, identifies other important factors that could cause Five Star's actual results to differ materially from those stated in or implied by Five Star's forward-looking statements. Five Star's filings with the SEC are available on the SEC's website at www.sec.gov.
You should not place undue reliance upon forward-looking statements.
Except as required by law, Five Star does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
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