Company News »

Five Star Quality Care, Inc. Reports Fourth Quarter and Year End 2013 Results

Business Wire
Share on StockTwits
Published on

Five Star Quality Care, Inc. (NYSE:FVE) today announced its financial results for the quarter and year ended December 31, 2013.

Fourth Quarter 2013 Financial Results:

  • Total revenues for the fourth quarter of 2013 increased 0.9% to $325.2 million from $322.5 million for the same period in 2012. Growth in our revenues was negatively impacted in the fourth quarter of 2013 by the sequestration mandated Medicare payment rate reductions that went into effect on April 1, 2013 and a decrease in occupancy, partially offset by increases in our average monthly rates to residents who pay privately for our services.
  • Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the fourth quarter of 2013 were $5.9 million compared to $11.3 million for the same period in 2012. EBITDA for the fourth quarter of 2013 included $1.0 million of accounting costs incurred in connection with the restatement of certain of our previously issued financial statements. EBITDA excluding these and certain other items was $7.1 million and $11.4 million in the fourth quarters of 2013 and 2012, respectively. A reconciliation of (loss) income from continuing operations determined in accordance with U.S. generally accepted accounting principles, or GAAP, to EBITDA and EBITDA excluding certain items for the quarters ended December 31, 2013 and 2012 appears later in this press release.
  • Loss from continuing operations for the fourth quarter of 2013 was $3.3 million, or $0.07 per basic and diluted share, compared to income from continuing operations of $1.6 million, or $0.04 and $0.03 per share, basic and diluted, respectively, for the same period in 2012. Loss from continuing operations for the fourth quarter of 2013 included $1.0 million, or $0.02 per basic and diluted share, of general and administrative expenses incurred in connection with the restatement of certain of our previously issued financial statements. Also, for the fourth quarter of 2013, we incurred increases in our senior living wages and benefits and other senior living operating expenses primarily due to increases in our workers’ compensation and professional and general liability insurance programs, increases in operating expenses as a result of harsh weather conditions experienced during the quarter and increases in general maintenance expenses.
  • Net loss for the fourth quarter of 2013 was $5.4 million, or $0.11 per basic and diluted share, compared to net income of $1.6 million, or $0.04 and $0.03 per share, basic and diluted, respectively, for the same period in 2012. Net loss in the fourth quarter of 2013 included a loss from discontinued operations of $2.1 million. Net income in the fourth quarter of 2012 included a loss from discontinued operations of $47,000.

Fourth Quarter 2013 Operating Results:

  • Occupancy at our owned and leased senior living communities for the fourth quarter of 2013 was 85.6% compared to 86.3% for the same period in 2012.
  • The average monthly rate at our owned and leased senior living communities for the fourth quarter of 2013 increased by 0.5% to $4,417 from $4,393 for the same period in 2012.
  • The percentage of revenues derived from residents’ private resources at our owned and leased senior living communities for the fourth quarter of 2013 increased 70 basis points to 76.8% from 76.1% for the same period in 2012.

Fiscal Year Financial Results:

  • Total revenues for the year ended December 31, 2013 increased 7.4% to $1.3 billion from $1.2 billion for the year ended December 31, 2012. Growth in our revenues was negatively impacted for the year ended December 31, 2013 by the sequestration mandated Medicare payment rate reductions that went into effect on April 1, 2013 and a decrease in occupancy, partially offset by increases in our average monthly rates to residents who pay privately for our services.
  • EBITDA for the year ended December 31, 2013 was $36.8 million compared to $47.6 million for the year ended December 31, 2012. EBITDA for the year ended December 31, 2013 included $1.0 million of accounting costs incurred in connection with the restatement of certain of our previously issued financial statements. EBITDA for the year ended December 31, 2012 included a gain on settlement of our litigation with Sunrise Senior Living, Inc., or Sunrise, which increased EBITDA by $3.4 million. EBITDA excluding the restatement costs, the litigation settlement and certain other items was $38.8 million and $44.3 million for the year ended December 31, 2013 and 2012, respectively. A reconciliation of income from continuing operations determined in accordance with GAAP to EBITDA and EBITDA excluding certain items for the years ended December 31, 2013 and 2012 appears later in this press release.
  • Income from continuing operations for the year ended December 31, 2013 was $3.4 million, or $0.07 per basic and diluted share, compared to $10.6 million, or $0.23 per basic and diluted share, for the year ended December 31, 2012. Income from continuing operations for the year ended December 31, 2013 included $1.0 million, or $0.02 per basic and diluted share, of general and administrative expenses incurred in connection with the restatement of certain of our previously issued financial statements, a loss on early extinguishment of debt of $599,000, or $0.01 per basic and diluted share, and an income tax benefit of $1.5 million, or $0.03 per basic and diluted share, relating to a work opportunity tax credit program that expired in 2012 and then was retroactively reinstated in January 2013. Also, for the year ended December 31, 2013, we incurred increases in our senior living wages and benefits and other senior living operating expenses primarily due to increases in employee health insurance, increases in our workers’ compensation and professional and general liability insurance programs, increases in operating expenses as a result of harsh weather conditions experienced during the fourth quarter of 2013 and increases in general maintenance expenses. Income from continuing operations for the year ended December 31, 2012 included a gain on settlement of our litigation with Sunrise of $2.0 million (net of taxes), or $0.04 per basic and diluted share.
  • Net loss for the year ended December 31, 2013 was $2.3 million, or $0.05 per basic and diluted share, compared to net income of $22.3 million, or $0.47 and $0.46 per share, basic and diluted, respectively, for the year ended December 31, 2012. Net loss for the 2013 period included a loss from discontinued operations of $5.8 million. Net income for the 2012 period included income from discontinued operations of $11.7 million and was primarily impacted by a $23.3 million gain on sale that we recorded related to the sale of our pharmacy business, partially offset by income tax expense of $5.4 million and other losses incurred at our discontinued senior living communities and rehabilitation hospitals.

Expansion and Disposition Activities:

Since October 1, 2013, we have begun managing four communities with a combined 281 living units and we have acquired one assisted living community with 116 living units:

  • In October 2013, we began managing two senior living communities in Georgia with a combined total of 153 living units and a senior living community in Tennessee with 60 living units. In November 2013, we began managing a senior living community in Wisconsin with 68 living units. These four communities are owned by Senior Housing Properties Trust, or SNH, and leased to one of its taxable REIT subsidiaries.
  • In May 2014, we acquired an assisted living community with 116 living units located in Dothan, Alabama for approximately $19.9 million, including the assumption of approximately $13.9 million of mortgage debt and excluding closing costs. We funded this acquisition with cash on hand and borrowings under our $150.0 million revolving credit facility.

Since October 1, 2013, we and SNH have disposed of two rehabilitation hospitals, including 13 affiliated out-patient clinics, with a combined 321 beds, and three senior living communities with a combined 203 living units:

  • As of December 31, 2013, we and SNH completed the transfer of operations and sale of the real estate at two rehabilitation hospitals and 13 out-patient clinics affiliated with those rehabilitation hospitals, which were previously disclosed as held for sale and discontinued operations. We previously leased the rehabilitation hospitals from SNH and the out-patient clinics from others. As a result of this transaction, SNH received proceeds of approximately $90.0 million for the sale of the real estate associated with the rehabilitation hospitals, we retained certain net assets of approximately $9.6 million and our annual rent payable to SNH and others decreased by approximately $11.5 million. In 2013, we recorded losses of approximately $2.2 million relating to closing costs and legal fees associated with this transaction and we incurred $2.6 million of non-cash asset impairment charges to reduce the fixed assets we owned which are related to the rehabilitation hospitals to their estimated fair market values.
  • In January 2014, SNH sold an assisted living community with 48 living units that we leased from SNH that was previously disclosed as held for sale for a sales price of $2.4 million. As a result of this sale, our annual minimum rent payable to SNH decreased by $210,000 in accordance with the terms of the applicable lease.
  • In June 2014, SNH sold two skilled nursing facilities, or SNFs, with a combined total of 155 living units that we leased from SNH that were previously disclosed as held for sale for a sales price of $4.5 million. As a result of this sale, our annual minimum rent payable to SNH decreased by $450,000 in accordance with the terms of the applicable lease.

As of the date of this press release, we and SNH continue to market for sale seven senior living communities with a combined total of 509 living units that were previously disclosed as held for sale and discontinued operations.

Conference Call:

Tomorrow, September 18, 2014, at 8:30 a.m. Eastern Time, we will host a conference call to discuss the fourth quarter financial results. Following management’s presentation, there will be a question and answer period.

The conference call telephone number is (800) 288-8967. Participants calling from outside the United States and Canada should dial (612) 332-0107. 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, September 25, 2014. To hear the replay, dial (320) 365-3844. The replay pass code is 337177.

A live audio webcast of the conference call will also be available in a listen only mode on the Company’s website at www.fivestarseniorliving.com. Participants wanting to access the webcast should visit the Company’s website about five minutes before the call. The archived webcast will be available for replay on the Company’s website for about one week after the call. The transcription, recording and retransmission in any way of the Company’s fourth quarter 2013 conference call is strictly prohibited without the prior written consent of the Company. The Company’s website is not incorporated as part of this press release.

About Five Star Quality Care, Inc.:

Five Star Quality Care, Inc. is a senior living and healthcare services company. As of December 31, 2013, we operated 255 senior living communities (excluding those senior living communities we have classified as discontinued operations) with 30,023 living units located in 31 states, including 30 communities (2,946 living units) that we own and operate, 181 communities (20,026 living units) that we lease and operate, and 44 communities (7,051 living units) that we manage. These communities include independent living, assisted living, continuing care and skilled nursing communities. We are headquartered in Newton, Massachusetts.

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 WE USE WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”, “ESTIMATE” OR SIMILAR EXPRESSIONS, WE ARE MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON OUR 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 THESE FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:

  • THIS PRESS RELEASE STATES THAT WE AND SNH CONTINUE TO MARKET FOR SALE SEVEN SENIOR LIVING COMMUNITIES. WE AND SNH MAY NOT BE ABLE TO SELL THESE COMMUNITIES ON TERMS ACCEPTABLE TO US OR OTHERWISE, AND THE SALES OF ANY OR ALL OF THESE COMMUNITIES MAY NOT OCCUR.

THE INFORMATION CONTAINED IN OUR FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER THE CAPTION “RISK FACTORS” IN OUR PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE DIFFERENCES FROM OUR FORWARD LOOKING STATEMENTS. OUR FILINGS WITH THE SEC ARE AVAILABLE ON THE SEC’S WEBSITE AT WWW.SEC.GOV.

YOU SHOULD NOT PLACE UNDUE RELIANCE UPON OUR FORWARD LOOKING STATEMENTS.

EXCEPT AS REQUIRED BY LAW, WE DO NOT INTEND TO UPDATE OR CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

FIVE STAR QUALITY CARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

Three months ended
December 31,

Twelve months ended
December 31,

2013 2012 2013 2012
Revenues:
Senior living revenue $ 269,078 $ 269,790 $ 1,077,062 $ 1,074,333
Management fee revenue 2,361 2,150 9,234 5,817
Reimbursed costs incurred on behalf of managed

communities

53,786 50,529 210,491 127,656
Total revenues 325,225 322,469 1,296,787 1,207,806
Operating expenses:
Senior living wages and benefits 131,424 128,998 525,733 522,444
Other senior living operating expenses 67,524 67,693 265,764 261,749
Costs incurred on behalf of managed communities 53,786 50,529 210,491 127,656
Rent expense 48,785 47,733 193,820 190,184
General and administrative 17,660 16,229 63,509 61,817
Depreciation and amortization 7,331 6,284 27,022 24,480
Impairment of long-lived assets 186 186
Gain on settlement (3,365)
Total operating expenses 326,696 317,466 1,286,525 1,184,965
Operating (loss) income (1,471) 5,003 10,262 22,841
Interest dividend and other income 182 243 781 881
Interest and other expense (1,237) (1,475) (5,227) (6,268)
Acquisition related costs (62) (8) (181) (108)
(Loss) gain on early extinguishment of debt (599) 45
Loss on sale of available for sale securities

reclassified from other comprehensive income

(11) (81) (5) (19)
(Loss) income from continuing operations before

income taxes and equity in earnings of an investee

(2,599) 3,682 5,031 17,372
Provision for income taxes (840) (2,139) (1,916) (7,098)
Equity in earnings of an investee 115 80 334 316
(Loss) income from continuing operations (3,324) 1,623 3,449 10,590
(Loss) income from discontinued operations (2,106) (47) (5,789) 11,717
Net (loss) income $ (5,430) $ 1,576 $ (2,340) $ 22,307
Weighted average shares outstanding – basic 48,350 48,066 48,277 47,952
Weighted average shares outstanding – diluted 48,350 49,979 49,263 50,134
Basic (loss) income per share from:
Continuing operations $ (0.07) $ 0.04 $ 0.07 $ 0.23
Discontinued operations (0.04) (0.12) 0.24
Net (loss) income per share – basic $ (0.11) $ 0.04 $ (0.05) $ 0.47
Diluted (loss) income per share from:
Continuing operations $ (0.07) $ 0.03 $ 0.07 $ 0.23
Discontinued operations (0.04) (0.12) 0.23
Net (loss) income per share – diluted $ (0.11) $ 0.03 $ (0.05) $ 0.46

These financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on September 17, 2014, including the audited financial statements and notes thereto which include descriptions of certain revisions to the 2011 and 2012 financial statements that we determined were not material.

FIVE STAR QUALITY CARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS DATA
(in thousands)
(unaudited)

December 31,
2013

December 31,
2012

Assets
Current assets:
Cash and cash equivalents $ 23,628 $ 24,638
Accounts receivable, net of allowance 36,940 39,205
Due from related persons 11,659 7,957
Investments in available for sale securities 19,150 12,920
Restricted cash 9,003 6,548
Prepaid expenses and other current assets 33,799 38,318
Assets of discontinued operations 16,705 30,100
Total current assets 150,884 159,686
Property and equipment, net 340,276 337,494
Restricted cash 9,795 12,166
Restricted investments in available for sale securities 11,905 10,580
Goodwill, equity investment and other long term assets 77,323 75,065
Total assets $ 590,183 $ 594,991
Liabilities and Shareholders’ Equity
Current liabilities:
Revolving credit facility, secured, principally by real estate $ 35,000 $
Current portion of convertible senior notes 24,872
Other current liabilities 163,528 178,078
Total current liabilities 198,528 202,950
Mortgage notes payable 36,461 37,621
Other long term liabilities 44,816 43,067
Shareholders’ equity 310,378 311,353
Total liabilities and shareholders’ equity $ 590,183 $ 594,991

These financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on September 17, 2014, including the audited financial statements and notes thereto which include descriptions of certain revisions to the 2011 and 2012 financial statements that we determined were not material.

FIVE STAR QUALITY CARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three months ended December 31, Twelve months ended December 31,
2013 2012 2013 2012
Cash flows from operating activities:
Net (loss) income $ (5,430) $ 1,576 $ (2,340) $ 22,307
Adjustments to reconcile net (loss) income to cash provided by operating activities:
Depreciation and amortization 7,274 6,284 28,109 24,480
Loss (gain) on early extinguishment of debt 599 (45)
Loss (income) from discontinued operations 3,209 570 9,327 (17,158)
Loss on sale of available for sale securities 11 81 5 19
Impairment of long-lived assets 186 186
Equity in earnings of an investee (115) (80) (334) (316)
Stock-based compensation 618 662 1,410 1,445
Deferred income taxes (506) 1,356 (2,793) 10,560
Provision for losses on receivables 1,998 1,488 6,412 4,446
Changes in assets and liabilities:
Accounts receivable (712) 696 (4,147) (2,431)
Prepaid expenses and other assets (2,113) (3,885) 2,334 (11,357)
Accounts payable and accrued expenses 1,391 15,378 (2,565) 18,623
Accrued compensation and benefits (8,082) (5,866) (3,414) 1,403
Due (from) to related persons, net (1,283) (488) (1,074) (6,773)
Other current and long term liabilities 942 (2,452) 4,062 2,305
Cash (used in) provided by operating activities (2,612) 15,320 35,777 47,508
Cash flows from investing activities:
Payments to restricted cash and investment accounts, net (1,701) (3,548) (84) (9,784)
Acquisition of property and equipment (16,466) (15,284) (53,766) (51,805)
Purchase of available for sale securities (559) (13,974) (5,076)
Proceeds from sales of improvements to SNH 4,707 9,929 24,641 24,818
Proceeds from sale of available for sale securities 360 3,235 6,285 4,163
Cash used in investing activities (13,659) (5,668) (36,898) (37,684)
Cash flows from financing activities:
Proceeds from borrowings on credit facilities 25,000 15,000 85,000 62,500
Repayments of borrowings on credit facilities (15,000) (50,000) (62,500)
Repayments of borrowing on the bridge loan from

Senior Housing Properties Trust

(38,000)
Purchase and retirement of convertible senior notes (24,872) (12,038)
Repayments of mortgage notes payable (280) (263) (1,093) (1,028)
Cash provided by (used in) financing activities 24,720 (263) 9,035 (51,066)
Cash flows from discontinued operations:
Net cash (used in) provided by discontinued operations (3,361) 298 (7,000) 1,763
Net cash (used in) provided by investing activities (1,040) 692 5,610 35,885
Net cash used in financing activities (36) (7,534) (142)
Net cash flows (used in) provided by discontinued operations (4,401) 954 (8,924) 37,506
Change in cash and cash equivalents during the period 4,048 10,343 (1,010) (3,736)
Cash and cash equivalents at beginning of period 19,580 14,295 24,638 28,374
Cash and cash equivalents at end of period $ 23,628 $ 24,638 $ 23,628 $ 24,638
Supplemental cash flow information:
Cash paid for interest $ 705 $ 1,210 $ 3,361 $ 4,921
Cash paid for income taxes $ 110 $ 580 $ 1,884 $ 2,132

These financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on September 17, 2014, including the audited financial statements and notes thereto which include descriptions of certain revisions to the 2011 and 2012 financial statements that we determined were not material.

FIVE STAR QUALITY CARE, INC.
SENIOR LIVING COMMUNITY FINANCIAL DATA(1)
(dollars in thousands, except average monthly rate)
Three months ended Twelve months ended
December 31,(2) December 31,(2)
2013 2012 2013 2012
Senior living communities:
Number of communities (end of period) 211 211 211 211
Number of units (end of period)(3) 22,972 22,972 22,972 22,972
Occupancy 85.6% 86.3% 85.8% 86.2%
Avg. monthly rate(4) $ 4,417 $ 4,393 $ 4,437 $ 4,382
Senior living revenue:
Independent and assisted living community revenue $ 125,325 $ 123,889 $ 497,742 $ 490,710
Continuing care retirement community revenue 96,844 97,789 388,285 389,024
Skilled nursing facility revenue 44,170 44,408 178,667 181,010
Other(5) 2,739 3,704 12,368 13,589
Total senior living revenue $ 269,078 $ 269,790 $ 1,077,062 $ 1,074,333
Senior living wages and benefits:
Independent and assisted living community wages and benefits $ 53,259 $ 51,960 $ 212,884 $ 211,035
Continuing care retirement community wages and benefits 47,990 47,539 192,829 191,648
Skilled nursing facility wages and benefits 28,647 28,104 113,665 113,600
Other(5) 1,528 1,395 6,355 6,161
Total senior living wages and benefits $ 131,424 $ 128,998 $ 525,733 $ 522,444
Senior living other operating expenses:
Independent and assisted living community other operating expenses $ 34,422 $ 30,401 $ 124,506 $ 118,036
Continuing care retirement community other operating expenses 24,971 25,736 99,713 96,837
Skilled nursing facility other operating expenses 7,845 11,546 41,314 43,933
Other(5) 286 10 231 2,943
Total senior living other operating expenses $ 67,524 $ 67,693 $ 265,764 $ 261,749

This supplemental data should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on September 17, 2014, including the audited financial statements and notes thereto which include descriptions of certain revisions to the 2011 and 2012 financial statements that we determined were not material.

(1)

Excludes data for managed communities and discontinued senior living operations.

(2)

The number of communities operated between January 1, 2012 and December 31, 2013 did not change; as a result, there is no separate same property comparable senior living community financial data presented.

(3)

Excludes 48 units of one senior living community that has been temporarily closed for renovations.

(4)

Average monthly rate is calculated by taking the average daily rate, which is defined as total operating revenue divided by occupied units, during the period and multiplying it by 30 days.

(5)

Other senior living relates primarily to rehabilitation and other specialty service revenues and expenses provided at our residential facilities.
FIVE STAR QUALITY CARE, INC.
PERCENT BREAKDOWN OF SENIOR LIVING COMMUNITY REVENUES(1)
Three months ended Twelve months ended
December 31, December 31,
2013 2012 2013 2012
Independent and assisted living communities:
Private and other sources 99.2% 98.9% 99.1% 98.9%
Medicaid 0.8% 1.1% 0.9% 1.1%
Total 100.0% 100.0% 100.0% 100.0%
Continuing care retirement communities:
Private and other sources 72.2% 70.4% 71.6% 70.7%
Medicare 21.9% 22.7% 22.2% 22.6%
Medicaid 5.9% 6.9% 6.2% 6.7%
Total 100.0% 100.0% 100.0% 100.0%
Skilled nursing facilities:
Private and other sources 25.0% 27.0% 25.6% 26.8%
Medicare 24.3% 24.4% 25.7% 25.4%
Medicaid 50.7% 48.6% 48.7% 47.8%
Total 100.0% 100.0% 100.0% 100.0%
Total senior living communities:
Private and other sources 76.8% 76.1% 76.6% 76.1%
Medicare 12.1% 12.5% 12.5% 12.7%
Medicaid 11.1% 11.4% 10.9% 11.2%
Total 100.0% 100.0% 100.0% 100.0%
(1)Excludes data for managed communities and discontinued senior living operations.
FIVE STAR QUALITY CARE, INC.
SENIOR LIVING OTHER OPERATING DATA(1)
(dollars in thousands, except average monthly rate)
Three months ended

December 31,

September 30, June 30, March 31, December 31,
2013 2013 2013 2013 2012
Independent and assisted living communities (owned):
Number of communities (end of period) 30 30 30 30 30
Number of units (end of period) 2,946 2,946 2,946 2,946 2,946
Occupancy 87.5% 88.2% 87.6% 87.5% 87.8%
Avg. monthly rate(2) $ 3,385 $ 3,370 $ 3,377 $ 3,374 $ 3,293
Independent and assisted living communities (leased):
Number of communities (end of period) 119 119 119 119 119
Number of units (end of period)(3) 9,858 9,858 9,858 9,858 9,858
Occupancy 88.7% 88.9% 88.1% 88.6% 89.2%
Avg. monthly rate(2) $ 3,645 $ 3,641 $ 3,676 $ 3,674 $ 3,606
CCRC communities (leased):
Number of communities (end of period) 31 31 31 31 31
Number of units (end of period)(4) 7,346 7,346 7,346 7,346 7,346
Occupancy 82.6% 82.9% 83.3% 83.7% 83.4%
Avg. monthly rate(2) $ 5,204 $ 5,203 $ 5,227 $ 5,276 $ 5,204
Skilled nursing facilities (leased):
Number of communities (end of period) 31 31 31 31 31
Number of units (end of period)(5) 2,822 2,822 2,822 2,822 2,822
Occupancy 80.9% 80.8% 80.7% 81.5% 82.2%
Avg. monthly rate(2) $ 6,448 $ 6,409 $ 6,496 $ 6,644 $ 6,460
Total senior living communities (owned and leased):
Number of communities (end of period) 211 211 211 211 211
Number of units (end of period)(3) 22,972 22,972 22,972 22,972 22,972
Occupancy 85.6% 85.9% 85.6% 86.0% 86.3%
Avg. monthly rate(2) $ 4,417 $ 4,407 $ 4,446 $ 4,479 $ 4,393
Managed communities:
Number of communities (end of period) 44 40 39 39 39
Number of units (end of period)(6) 7,051 6,771 6,678 6,678 6,678
Occupancy 87.9% 87.6% 87.4% 87.2% 87.7%
Avg. monthly rate(2) $ 4,093 $ 4,140 $ 4,215 $ 4,296 $ 4,144
Other ancillary services:
Rehabilitation and wellness inpatient clinics (end of period) 50 50 51 53 50
Rehabilitation and wellness outpatient clinics (end of period) 50 51 51 49 49
Home health communities served (end of period) 6 6 6 6 6

(1)

Excludes data for discontinued operations.

(2)

Average monthly rate is calculated by taking the average daily rate, which is defined as total operating revenue divided by occupied units, during the period and multiplying it by 30 days.

(3)

Excludes 48 units of one senior living community that has been temporarily closed for renovations.

(4)

Includes 2,031 skilled nursing units in communities where assisted living and independent living services are the predominant services provided.

(5)

Includes 69 assisted living and independent living units in communities where skilled nursing services are the predominant services provided.

(6)

Includes 472 skilled nursing units in communities where assisted living and independent living services are the predominant services provided.
FIVE STAR QUALITY CARE, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands)
Earnings before interest, taxes, depreciation and amortization, or EBITDA, and EBITDA excluding certain items, and EBITDA excluding certain items plus rent expense (EBITDAR excluding certain items), or collectively, Non-GAAP financial measures, are not financial measures determined according to U.S. generally accepted accounting principles, or GAAP. We consider these Non-GAAP financial measures to be meaningful disclosures because we believe that the presentation of these Non-GAAP financial measures may help investors to gain a better understanding of changes in our operating results, and may also help investors who wish to make comparisons between us and other companies on both a GAAP and a non-GAAP basis. These Non-GAAP financial measures are used by management to evaluate our financial performance and for comparing our performance over time and to the performance of our competitors. These Non-GAAP financial measures as presented may not, however, be comparable to amounts calculated by other companies. This information should not be considered as an alternative to income from continuing operations, net income, cash flows from operating activities or any other financial operating or performance or liquidity measure established by GAAP. The following table includes the reconciliation of these Non-GAAP financial measures to income from continuing operations, the most directly comparable financial measure under GAAP reported in our consolidated financial statements, for the three and twelve months ended December 31, 2013 and 2012.
For the three months For the twelve months
ended December 31, ended December 31,
2013 2012 2013 2012
(Loss) income from continuing operations $ (3,324) $ 1,623 $ 3,449 $ 10,590
Add: interest and other expense 1,237 1,475 5,227 6,268
Add: income tax expense 840 2,139 1,916 7,098
Add: depreciation and amortization 7,331 6,284 27,022 24,480
Less: interest, dividend and other income (182) (243) (781) (881)
EBITDA 5,902 11,278 36,833 47,555
Add (less):
Financial accounting restatement costs 971 971
Acquisition related costs 62 8 181 108
Loss on sale of investments in available for sale

securities

11 81 5 19
Impairment of long-lived assets 186 186
Gain on litigation settlement (3,365)
Loss (gain) on early extinguishment of debt 599 (45)
EBITDA excluding certain items 7,132 11,367 38,775 44,272
Add:
Rent expense 48,785 47,733 193,820 190,184
EBITDAR excluding certain items $ 55,917 $ 59,100 $ 232,595 $ 234,456

These financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on September 17, 2014, including the audited financial statements and notes thereto which include descriptions of certain revisions to the 2011 and 2012 financial statements that we determined were not material.

Share on StockTwits

What others are reading on Finances

Sorry. No data so far.


Iron FX 1.11156/1.11128 2.8
XM Markets 1.09948/1.09928 2
FxPro 1.10184/1.10171 1.3
FXCM 1.13943/1.13912 3.1