NEWTON, Mass.--(BUSINESS WIRE)--
Five Star Senior Living Inc. (Nasdaq: FVE) today announced its financial
results for the quarter and year ended December 31, 2018.
Financial Results for the quarter ended December 31, 2018:
-
Senior living revenue for the fourth quarter of 2018 decreased 1.1% to
$276.3 million from $279.2 million for the same period in
2017, primarily due to the sale of six senior living communities
between December 2017 and June 2018 to Senior Housing Properties Trust
(Nasdaq: SNH), which Five Star is currently managing for SNH, and the
sale of one skilled nursing facility, or SNF, in June 2018 to a third
party, which Five Star had previously leased from SNH. This decrease
was partially offset by increases in occupancy, average monthly rates
to residents who pay privately for services and revenues from
ancillary services, such as rehabilitation and wellness services, as
well as an estimated $0.9 million revenue reserve recorded in the
fourth quarter of 2017 in connection with the previously disclosed
2017 Medicare compliance assessment, or the Compliance Assessment, at
one of Five Star’s former SNFs. Management fee revenue for the fourth
quarter of 2018 increased 5.3% to $3.7 million, primarily due to an
increase in the number of managed communities compared to the same
period in 2017.
-
Net loss for the fourth quarter of 2018 was $23.7 million, or $0.47
per diluted share, compared to net loss of $1.0 million, or $0.02 per
diluted share, for the same period in 2017. Net loss for the fourth
quarter of 2018 included $0.8 million, or $0.02 per diluted share, of
net severance costs incurred in December 2018 related to two former
executive officers. Net loss for the fourth quarter of 2017 included a
gain on sale of senior living communities of $7.3 million, or $0.15
per diluted share, in connection with the sale of two senior living
communities in December 2017 to SNH, which Five Star is currently
managing for SNH, a benefit from income taxes of $3.2 million, or
$0.07 per diluted share, resulting primarily from Five Star’s
monetization of alternative minimum tax credits, $1.5 million, or
$0.03 per diluted share, for estimated revenue reserves, penalties and
fees related to the Compliance Assessment, and $1.6 million, or $0.03
per diluted share, related to long lived asset impairment Five Star
recorded to reduce the carrying value of one senior living community
classified as held for sale at December 31, 2017 to its estimated fair
value less costs to sell, which community was subsequently sold in
June 2018 to SNH. Five Star is currently managing this community for
SNH.
-
Earnings before interest, taxes, depreciation and amortization, or
EBITDA, for the fourth quarter of 2018 was $(13.7) million compared to
$5.8 million for the same period in 2017. EBITDA excluding certain
items, or Adjusted EBITDA, was $(12.9) million and $2.1 million for
the fourth quarters of 2018 and 2017, respectively. A reconciliation
of net loss determined in accordance with U.S. generally accepted
accounting principles, or GAAP, to EBITDA and Adjusted EBITDA for the
quarters ended December 31, 2018 and 2017 appears later in this press
release.
Operating Results for the quarter ended
December 31,
2018:
-
Occupancy at owned and leased senior living communities for the fourth
quarter of 2018 increased 30 basis points to 82.9% from 82.6% for the
same period in 2017.
-
Average monthly rates at owned and leased senior living communities
for the fourth quarter of 2018 increased 1.2% to $4,710 from $4,653
for the same period in 2017.
-
The percentage of revenue derived from residents’ private resources at
owned and leased senior living communities was 77.7% for the fourth
quarter of each of 2018 and 2017.
Financial Results for the year ended
December 31,
2018:
-
Senior living revenue for the year ended December 31, 2018 decreased
2.5% to $1.09 billion from $1.12 billion for the same period in
2017, primarily due to the sale of six senior living communities
between December 2017 and June 2018 to SNH, which Five Star is
currently managing for SNH, the sale of one SNF in June 2018 to a
third party, which Five Star had previously leased from SNH, and a
decrease in occupancy, partially offset by increases in average
monthly rates to residents who pay privately for services and revenues
from ancillary services, such as rehabilitation and wellness services,
as well as an estimated $0.9 million revenue reserve recorded in the
fourth quarter of 2017 in connection with the Compliance Assessment.
Management fee revenue for the year ended December 31, 2018 increased
7.6% to $15.1 million, primarily due to an increase in the number of
managed communities compared to the same period in 2017.
-
Net loss for the year ended December 31, 2018 was $74.1 million, or
$1.49 per diluted share, compared to net loss of $20.9 million, or
$0.42 per diluted share, for the same period in 2017. Net loss for the
year ended December 31, 2018 included a gain on sale of senior living
communities of $7.1 million, or $0.14 per diluted share, primarily due
to the sale of four senior living communities in 2018 to SNH, which
Five Star is currently managing for SNH. Net loss for the year ended
December 31, 2018 also included $0.8 million, or $0.02 per diluted
share, of net severance costs incurred in December 2018 related to two
former executive officers. Net loss for December 31, 2017 included a
gain on sale of senior living communities of $7.3 million, or $0.06
per diluted share, in connection with the sale of two senior living
communities in December 2017 to SNH, which Five Star is currently
managing for SNH, a benefit for income taxes of $4.5 million, or $0.09
per diluted share, resulting primarily from Five Star's monetization
of alternative minimum tax credits, $1.5 million, or $0.03 per diluted
share, for estimated revenue reserves, penalties and fees related to
the Compliance Assessment and $2.1 million, or $0.04 per diluted
share, primarily related to long lived asset impairment Five Star
recorded to reduce the carrying value of one senior living community
classified as held for sale at December 31, 2017 to its estimated fair
value less costs to sell, which community was subsequently sold in
June 2018 to SNH. Five Star is currently managing this community for
SNH.
-
EBITDA for the year ended December 31, 2018 was $(35.7) million
compared to $16.3 million for the same period in 2017. Adjusted EBITDA
for the year ended December 31, 2018 was $(41.1) million compared to
$12.1 million for the same period in 2017. A reconciliation of net
loss determined in accordance with GAAP to EBITDA and Adjusted EBITDA
for the years ended December 31, 2018 and 2017 appears later in this
press release.
Other:
-
In November 2018, Five Star began managing for SNH a senior living
community located in Colorado with 239 living units pursuant to a
management agreement with SNH.
Going Concern:
-
Five Star faces challenges that are currently negatively impacting its
revenues, expenses, cash flows and results from operations, and Five
Star expects these challenges to continue at least through 2019. These
conditions raise substantial doubt about Five Star’s ability to
continue as a going concern. Based on Five Star’s cash balance at
December 31, 2018 and projected cash needs for the next 12 months,
Five Star’s management believes that Five Star will need to increase
its revenues, reduce its costs, renew or replace its existing credit
facility, reduce its operating leverage and/or pursue other
transactions to be able to continue to fund its operating and capital
requirements and meet its debt covenant obligations.
-
Five Star currently operates 260 senior living communities under lease
and management arrangements with SNH, which represents approximately
91.5% of the total communities Five Star operates. In order to address
Five Star's operating and liquidity issues, Five Star's Independent
Directors and SNH's independent trustees are currently evaluating Five
Star's arrangements with SNH. As a result, there may be changes to
Five Star's arrangements with SNH which could positively impact Five
Star's ability to continue as a going concern in the future.
Nevertheless, Five Star cannot be sure that it will reach any
agreement with SNH to change any of Five Star's arrangements with them
or that any change in Five Star's arrangements with SNH will
positively impact Five Star's ability to continue as a going concern
in the future.
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, Richard Doyle, will host a conference call to
discuss Five Star's fourth quarter and full year 2018 financial 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. on Wednesday, March 13, 2019. To access the
replay, dial (412) 317-0088. The replay pass code is 10127650.
A live audio webcast of the conference call will also be available in a
listen-only mode on Five Star’s website, which is located at 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 ofFive
Star’sfourth quarter2018conference callarestrictly prohibited without the prior written consent ofFive
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 December 31, 2018, Five Star operated 284 senior living
communities with 32,106 living units located in 32 states, including 208
communities (22,250 living units) that it owned or leased and 76
communities (9,766 living units) that it managed. These communities
include independent living, assisted living, continuing care retirement
communities and skilled nursing communities. Five Star is 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 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 AS A RESULT OF VARIOUS FACTORS, INCLUDING:
-
STATEMENTS ABOUT THE CURRENT EVALUATION BY FIVE STAR’S INDEPENDENT
DIRECTORS AND SNH'S INDEPENDENT TRUSTEES REGARDING FIVE STAR'S LEASE
AND MANAGEMENT ARRANGEMENTS WITH SNH MAY IMPLY THAT THERE WILL BE
AGREED CHANGES TO FIVE STAR'S ARRANGEMENTS WITH SNH IN THE FUTURE,
THAT FIVE STAR’S OPERATING RESULTS AND FINANCIAL CONDITION WILL
IMPROVE AS A RESULT AND THAT FIVE STAR WILL BE ABLE TO CONTINUE AS A
GOING CONCERN. FIVE STAR CANNOT BE SURE THAT IT WILL REACH ANY
AGREEMENT WITH SNH TO CHANGE ANY OF FIVE STAR'S ARRANGEMENTS WITH SNH
OR THAT ANY CHANGE IN FIVE STAR'S ARRANGEMENTS WITH SNH WILL
POSITIVELY IMPACT FIVE STAR'S ABILITY TO CONTINUE AS A GOING CONCERN
IN THE FUTURE.
-
ANY ACTIONS FIVE STAR MAY TAKE TO ADDRESS THE CURRENT SUBSTANTIAL
DOUBT AS TO ITS ABILITY TO CONTINUE AS A GOING CONCERN MAY NOT BE
SUCCESSFUL. FURTHER, ANY SUCH ACTIONS THAT MAY ADDRESS THAT CONCERN
MAY ONLY PROVIDE RELIEF IN THE SHORT TERM AND COULD INCREASE FIVE
STAR’S FUTURE COSTS AND THEREBY PREVENT OR LIMIT ITS ABILITY TO
OPERATE PROFITABLY IN THE INTERMEDIATE OR LONGER TERM.
THE INFORMATION CONTAINED IN FIVE STAR’S FILINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION, OR 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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|
|
|
|
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FIVE STAR SENIOR LIVING INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per share data)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2018
|
|
|
|
2017
|
|
|
|
2018
|
|
|
|
2017
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior living revenue
|
|
|
|
$
|
276,296
|
|
|
|
$
|
279,238
|
|
|
|
$
|
1,094,404
|
|
|
|
$
|
1,122,176
|
|
|
Management fee revenue
|
|
|
|
3,737
|
|
|
|
3,549
|
|
|
|
15,145
|
|
|
|
14,080
|
|
|
Reimbursed costs incurred on behalf of managed communities
|
|
|
|
72,836
|
|
|
|
65,504
|
|
|
|
280,845
|
|
|
|
259,850
|
|
|
Total revenues
|
|
|
|
352,869
|
|
|
|
348,291
|
|
|
|
1,390,394
|
|
|
|
1,396,106
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior living wages and benefits
|
|
|
|
144,346
|
|
|
|
137,900
|
|
|
|
563,263
|
|
|
|
551,096
|
|
|
Other senior living operating expenses
|
|
|
|
74,937
|
|
|
|
74,365
|
|
|
|
301,239
|
|
|
|
293,425
|
|
|
Costs incurred on behalf of managed communities
|
|
|
|
72,836
|
|
|
|
65,504
|
|
|
|
280,845
|
|
|
|
259,850
|
|
|
Rent expense
|
|
|
|
52,510
|
|
|
|
52,007
|
|
|
|
209,150
|
|
|
|
206,531
|
|
|
General and administrative expenses
|
|
|
|
20,784
|
|
|
|
18,479
|
|
|
|
78,189
|
|
|
|
75,212
|
|
|
Depreciation and amortization expense
|
|
|
|
8,965
|
|
|
|
9,152
|
|
|
|
35,939
|
|
|
|
38,192
|
|
|
Gain on sale of senior living communities
|
|
|
|
—
|
|
|
|
(7,258
|
)
|
|
|
(7131
|
)
|
|
|
(7,258
|
)
|
|
Long lived asset impairment
|
|
|
|
96
|
|
|
|
1,584
|
|
|
|
461
|
|
|
|
2,112
|
|
|
Total operating expenses
|
|
|
|
374,474
|
|
|
|
351,733
|
|
|
|
1,461,955
|
|
|
|
1,419,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
|
(21,605
|
)
|
|
|
(3,442
|
)
|
|
|
(71,561
|
)
|
|
|
(23,054
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest, dividend and other income
|
|
|
|
241
|
|
|
|
206
|
|
|
|
818
|
|
|
|
765
|
|
|
Interest and other expense
|
|
|
|
(1,245
|
)
|
|
|
(1,108
|
)
|
|
|
(3,018
|
)
|
|
|
(4,308
|
)
|
|
Gain on early extinguishment of debt
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
143
|
|
|
Unrealized loss on equity investments
|
|
|
|
(817
|
)
|
|
|
—
|
|
|
|
(690
|
)
|
|
|
—
|
|
|
Realized gain on sale of debt and equity investments, net of tax
|
|
|
|
107
|
|
|
|
57
|
|
|
|
99
|
|
|
|
408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes and equity in earnings of an investee
|
|
|
|
(23,319
|
)
|
|
|
(4,287
|
)
|
|
|
(74,352
|
)
|
|
|
(26,046
|
)
|
|
Benefit (provision) for income taxes
|
|
|
|
27
|
|
|
|
3,206
|
|
|
|
(247
|
)
|
|
|
4,536
|
|
|
Equity in earnings of an investee, net of tax
|
|
|
|
(366
|
)
|
|
|
75
|
|
|
|
516
|
|
|
|
608
|
|
|
Net loss
|
|
|
|
$
|
(23,658
|
)
|
|
|
$
|
(1,006
|
)
|
|
|
$
|
(74,083
|
)
|
|
|
$
|
(20,902
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding—basic and diluted
|
|
|
|
49,818
|
|
|
|
49,215
|
|
|
|
49,687
|
|
|
|
49,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share—basic and diluted
|
|
|
|
$
|
(0.47
|
)
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
(1.49
|
)
|
|
|
$
|
(0.42
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE STAR SENIOR LIVING INC.
CONSOLIDATED BALANCE SHEETS
(in
thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
29,512
|
|
|
|
$
|
26,255
|
|
|
Accounts receivable, net of allowance
|
|
|
|
37,758
|
|
|
|
38,673
|
|
|
Due from related persons
|
|
|
|
7,855
|
|
|
|
4,774
|
|
|
Investments
|
|
|
|
20,179
|
|
|
|
22,524
|
|
|
Restricted cash
|
|
|
|
19,720
|
|
|
|
20,747
|
|
|
Prepaid expenses and other current assets
|
|
|
|
23,029
|
|
|
|
25,132
|
|
|
Assets held for sale
|
|
|
|
—
|
|
|
|
59,080
|
|
|
Total current assets
|
|
|
|
138,053
|
|
|
|
197,185
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
243,873
|
|
|
|
251,504
|
|
|
Equity investment of an investee
|
|
|
|
8,633
|
|
|
|
8,185
|
|
|
Restricted cash
|
|
|
|
923
|
|
|
|
1,476
|
|
|
Restricted investments
|
|
|
|
8,073
|
|
|
|
10,758
|
|
|
Other long term assets
|
|
|
|
6,069
|
|
|
|
6,800
|
|
|
Total assets
|
|
|
|
$
|
405,624
|
|
|
|
$
|
475,908
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Revolving credit facility
|
|
|
|
$
|
51,484
|
|
|
|
$
|
—
|
|
|
Accounts payable and accrued expenses
|
|
|
|
69,667
|
|
|
|
74,734
|
|
|
Accrued compensation and benefits
|
|
|
|
35,421
|
|
|
|
37,893
|
|
|
Due to related persons
|
|
|
|
18,883
|
|
|
|
18,683
|
|
|
Mortgage notes payable
|
|
|
|
339
|
|
|
|
316
|
|
|
Accrued real estate taxes
|
|
|
|
12,959
|
|
|
|
11,801
|
|
|
Security deposits and current portion of continuing care contracts
|
|
|
|
3,468
|
|
|
|
4,073
|
|
|
Other current liabilities
|
|
|
|
37,472
|
|
|
|
36,361
|
|
|
Liabilities held for sale
|
|
|
|
—
|
|
|
|
34,781
|
|
|
Total current liabilities
|
|
|
|
229,693
|
|
|
|
218,642
|
|
|
|
|
|
|
|
|
|
|
Long term liabilities:
|
|
|
|
|
|
|
|
|
Mortgage notes payable
|
|
|
|
7,533
|
|
|
|
7,872
|
|
|
Accrued self insurance obligations
|
|
|
|
33,030
|
|
|
|
33,082
|
|
|
Deferred gain on sale and leaseback transaction
|
|
|
|
59,478
|
|
|
|
66,087
|
|
|
Other long term liabilities
|
|
|
|
4,721
|
|
|
|
5,231
|
|
|
Total long term liabilities
|
|
|
|
104,762
|
|
|
|
112,272
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
Common stock, par value $.01: 75,000,000 shares authorized,
50,852,052 and 50,524,424 shares issued and outstanding at
December 31, 2018 and 2017, respectively
|
|
|
|
508
|
|
|
|
505
|
|
|
Additional paid in capital
|
|
|
|
361,555
|
|
|
|
360,942
|
|
|
Accumulated deficit
|
|
|
|
(292,636
|
)
|
|
|
(220,489
|
)
|
|
Accumulated other comprehensive income
|
|
|
|
1,742
|
|
|
|
4,036
|
|
|
Total shareholders’ equity
|
|
|
|
71,169
|
|
|
|
144,994
|
|
|
Total liabilities and shareholders’ equity
|
|
|
|
$
|
405,624
|
|
|
|
$
|
475,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE STAR SENIOR LIVING INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
2018
|
|
|
|
2017
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
$
|
(74,083
|
)
|
|
|
$
|
(20,902
|
)
|
|
Adjustments to reconcile net loss to cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense
|
|
|
|
35,939
|
|
|
|
38,192
|
|
|
Gain on sale of senior living communities
|
|
|
|
(7,131
|
)
|
|
|
(7,258
|
)
|
|
Gain on early extinguishment of debt
|
|
|
|
—
|
|
|
|
(166
|
)
|
|
Unrealized loss on equity investments
|
|
|
|
690
|
|
|
|
—
|
|
|
Realized gain on sale of debt and equity investments
|
|
|
|
(99
|
)
|
|
|
(408
|
)
|
|
Loss on disposal of property and equipment
|
|
|
|
16
|
|
|
|
277
|
|
|
Long lived asset impairment
|
|
|
|
461
|
|
|
|
2,112
|
|
|
Equity in earnings of an investee, net of tax
|
|
|
|
(516
|
)
|
|
|
(608
|
)
|
|
Stock based compensation
|
|
|
|
616
|
|
|
|
1,094
|
|
|
Provision for losses on receivables
|
|
|
|
4,904
|
|
|
|
4,697
|
|
|
Amortization of deferred gain on sale and leaseback transaction
|
|
|
|
(6,609
|
)
|
|
|
(6,608
|
)
|
|
Other noncash expense adjustments, net
|
|
|
|
1,192
|
|
|
|
703
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(3,989
|
)
|
|
|
(5,046
|
)
|
|
Prepaid expenses and other assets
|
|
|
|
1,535
|
|
|
|
(10,650
|
)
|
|
Accounts payable and accrued expenses
|
|
|
|
(4,211
|
)
|
|
|
6,306
|
|
|
Accrued compensation and benefits
|
|
|
|
(2,472
|
)
|
|
|
1,954
|
|
|
Due (from) to related persons, net
|
|
|
|
(1,683
|
)
|
|
|
11,439
|
|
|
Other current and long term liabilities
|
|
|
|
1,217
|
|
|
|
1,120
|
|
|
Cash (used in) provided by operating activities
|
|
|
|
(54,223
|
)
|
|
|
16,248
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Acquisition of property and equipment
|
|
|
|
(48,980
|
)
|
|
|
(71,095
|
)
|
|
Purchases of investments
|
|
|
|
(5,297
|
)
|
|
|
(14,409
|
)
|
|
Proceeds from sale of property and equipment
|
|
|
|
17,956
|
|
|
|
39,800
|
|
|
Proceeds from sale of land
|
|
|
|
—
|
|
|
|
750
|
|
|
Proceeds from sale of communities
|
|
|
|
31,819
|
|
|
|
39,076
|
|
|
Proceeds from sale of investments
|
|
|
|
9,438
|
|
|
|
22,382
|
|
|
Cash provided by investing activities
|
|
|
|
4,936
|
|
|
|
16,504
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from borrowings on revolving credit facility
|
|
|
|
76,484
|
|
|
|
65,000
|
|
|
Repayments of borrowings on revolving credit facility
|
|
|
|
(25,000
|
)
|
|
|
(65,000
|
)
|
|
Repayments of mortgage notes payable
|
|
|
|
(509
|
)
|
|
|
(16,766
|
)
|
|
Prepayment fees on early extinguishment of debt
|
|
|
|
—
|
|
|
|
(132
|
)
|
|
Payment of deferred financing fees
|
|
|
|
—
|
|
|
|
(1,889
|
)
|
|
Payment of employee tax obligations on withheld shares
|
|
|
|
(11
|
)
|
|
|
(66
|
)
|
|
Cash provided by (used in) financing activities
|
|
|
|
50,964
|
|
|
|
(18,853
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from discontinued operations:
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
—
|
|
|
|
1,003
|
|
|
Net cash flows provided by discontinued operations
|
|
|
|
—
|
|
|
|
1,003
|
|
|
|
|
|
|
|
|
|
|
Change in cash and cash equivalents and restricted cash
|
|
|
|
1,677
|
|
|
|
14,902
|
|
|
Cash and cash equivalents and restricted cash at beginning of period
|
|
|
|
48,478
|
|
|
|
33,576
|
|
|
Cash and cash equivalents and restricted cash at end of period
|
|
|
|
$
|
50,155
|
|
|
|
$
|
48,478
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash and cash equivalents and restricted cash
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
29,512
|
|
|
|
$
|
26,255
|
|
|
Restricted cash
|
|
|
|
20,643
|
|
|
|
22,223
|
|
|
Cash and cash equivalents and restricted cash at end of period
|
|
|
|
$
|
50,155
|
|
|
|
$
|
48,478
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
|
|
$
|
1,577
|
|
|
|
$
|
3,932
|
|
|
Cash paid (received) for income taxes, net
|
|
|
|
$
|
311
|
|
|
|
$
|
(1,399
|
)
|
|
|
|
|
|
|
|
|
|
Non-cash activities:
|
|
|
|
|
|
|
|
|
Real estate sales
|
|
|
|
$
|
33,364
|
|
|
|
$
|
—
|
|
|
Mortgage notes assumed by purchaser in real estate sales
|
|
|
|
$
|
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 the three months and years ended December
31, 2018 and 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Net loss
|
|
|
|
$
|
(23,658
|
)
|
|
|
$
|
(1,006
|
)
|
|
|
$
|
(74,083
|
)
|
|
|
$
|
(20,902
|
)
|
|
Add (less):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other expense
|
|
|
|
1,245
|
|
|
|
1,108
|
|
|
|
3,018
|
|
|
|
4,308
|
|
|
(Benefit) provision for income taxes (1) |
|
|
|
(27
|
)
|
|
|
(3,206
|
)
|
|
|
247
|
|
|
|
(4,536
|
)
|
|
Depreciation and amortization expense
|
|
|
|
8,965
|
|
|
|
9,152
|
|
|
|
35,939
|
|
|
|
38,192
|
|
|
Interest, dividend and other income
|
|
|
|
(241
|
)
|
|
|
(206
|
)
|
|
|
(818
|
)
|
|
|
(765
|
)
|
|
EBITDA
|
|
|
|
(13,716
|
)
|
|
|
5,842
|
|
|
|
(35,697
|
)
|
|
|
16,297
|
|
|
Add (less):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long lived asset impairment
|
|
|
|
96
|
|
|
|
1,584
|
|
|
|
461
|
|
|
|
2,112
|
|
|
Costs related to compliance assessment
|
|
|
|
—
|
|
|
|
1,546
|
|
|
|
(106
|
)
|
|
|
1,546
|
|
|
Severance, net (2) |
|
|
|
756
|
|
|
|
—
|
|
|
|
756
|
|
|
|
—
|
|
|
Employee litigation matter
|
|
|
|
—
|
|
|
|
345
|
|
|
|
605
|
|
|
|
345
|
|
|
Litigation recovery
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(800
|
)
|
|
Gain on sale of senior living communities
|
|
|
|
—
|
|
|
|
(7,258
|
)
|
|
|
(7,131
|
)
|
|
|
(7,258
|
)
|
|
Gain on early extinguishment of debt
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(143
|
)
|
|
Adjusted EBITDA
|
|
|
|
$
|
(12,864
|
)
|
|
|
$
|
2,059
|
|
|
|
$
|
(41,112
|
)
|
|
|
$
|
12,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
2017 data includes Five Star's monetization of alternative minimum
tax credits.
|
|
(2)
|
|
Represents an aggregate $1.7 million of severance costs related to
two former executive officers, net of $0.9 million of previously
accrued compensation and benefits expense related to these former
employees.
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE STAR SENIOR LIVING INC.
SENIOR LIVING COMMUNITY
FINANCIAL DATA(1)
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Senior living revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent and assisted living community revenue (owned)
|
|
|
|
$
|
18,456
|
|
|
|
$
|
23,703
|
|
|
|
$
|
76,040
|
|
|
|
$
|
95,148
|
|
|
Independent and assisted living community revenue (leased)
|
|
|
|
108,669
|
|
|
|
108,330
|
|
|
|
431,461
|
|
|
|
434,111
|
|
|
Continuing care retirement community revenue (leased)
|
|
|
|
97,473
|
|
|
|
97,631
|
|
|
|
387,184
|
|
|
|
391,364
|
|
|
Skilled nursing facility revenue (leased) (2) |
|
|
|
42,229
|
|
|
|
41,389
|
|
|
|
164,290
|
|
|
|
170,717
|
|
|
Ageility physical therapy revenue
|
|
|
|
9,469
|
|
|
|
8,185
|
|
|
|
35,429
|
|
|
|
30,836
|
|
|
Total senior living revenue
|
|
|
|
$
|
276,296
|
|
|
|
$
|
279,238
|
|
|
|
$
|
1,094,404
|
|
|
|
$
|
1,122,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior living wages and benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent and assisted living community wages and benefits (owned)
|
|
|
|
$
|
8,722
|
|
|
|
$
|
9,973
|
|
|
|
$
|
34,504
|
|
|
|
$
|
39,664
|
|
|
Independent and assisted living community wages and benefits (leased)
|
|
|
|
50,591
|
|
|
|
46,790
|
|
|
|
194,652
|
|
|
|
186,434
|
|
|
Continuing care retirement community wages and benefits (leased)
|
|
|
|
51,054
|
|
|
|
49,547
|
|
|
|
202,556
|
|
|
|
199,141
|
|
|
Skilled nursing facility wages and benefits (leased)
|
|
|
|
28,485
|
|
|
|
27,236
|
|
|
|
110,113
|
|
|
|
108,053
|
|
|
Ageility physical therapy wages and benefits
|
|
|
|
6,654
|
|
|
|
5,719
|
|
|
|
24,243
|
|
|
|
20,972
|
|
|
Insurance and other (3) |
|
|
|
(1,160
|
)
|
|
|
(1,365
|
)
|
|
|
(2,805
|
)
|
|
|
(3,168
|
)
|
|
Total senior living wages and benefits
|
|
|
|
$
|
144,346
|
|
|
|
$
|
137,900
|
|
|
|
$
|
563,263
|
|
|
|
$
|
551,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other senior living operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent and assisted living community other operating expenses
(owned)
|
|
|
|
$
|
5,447
|
|
|
|
$
|
6,500
|
|
|
|
$
|
22,450
|
|
|
|
$
|
25,344
|
|
|
Independent and assisted living community other operating expenses
(leased)
|
|
|
|
29,722
|
|
|
|
27,732
|
|
|
|
115,904
|
|
|
|
108,676
|
|
|
Continuing care retirement community other operating expenses
(leased)
|
|
|
|
27,225
|
|
|
|
25,591
|
|
|
|
108,931
|
|
|
|
102,994
|
|
|
Skilled nursing facility other operating expenses (leased) (4) |
|
|
|
11,209
|
|
|
|
11,744
|
|
|
|
48,065
|
|
|
|
46,752
|
|
|
Ageility physical therapy other operating expenses
|
|
|
|
938
|
|
|
|
622
|
|
|
|
2,848
|
|
|
|
2,048
|
|
|
Insurance and other (3) |
|
|
|
396
|
|
|
|
2,176
|
|
|
|
3,041
|
|
|
|
7,611
|
|
|
Total other senior living operating expenses
|
|
|
|
$
|
74,937
|
|
|
|
$
|
74,365
|
|
|
|
$
|
301,239
|
|
|
|
$
|
293,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Excludes data for managed communities.
|
|
(2)
|
|
Skilled nursing facility revenue (leased) for the year ended
December 31, 2018 includes a $0.1 million reversal of estimated
revenue reserves related to the Compliance Assessment. Skilled
nursing facility revenue (leased) for the three months and year
ended December 31, 2017 includes an estimated $0.9 million revenue
reserve related to the Compliance Assessment.
|
|
(3)
|
|
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 in the applicable period.
|
|
(4)
|
|
Skilled nursing facility other operating expenses (leased) for the
three months and year ended December 31, 2017 includes $0.7 million
expense for estimated penalties, compliance costs and professional
fees related to the Compliance Assessment.
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE STAR SENIOR LIVING INC.
COMPARABLE SENIOR LIVING
COMMUNITY FINANCIAL DATA(1)
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
|
December 31,
(2)
|
|
|
December 31,
(3)
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Senior living revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent and assisted living community revenue (owned)
|
|
|
|
$
|
18,456
|
|
|
|
$
|
18,525
|
|
|
|
$
|
73,563
|
|
|
|
$
|
73,961
|
|
|
Independent and assisted living community revenue (leased)
|
|
|
|
108,669
|
|
|
|
108,330
|
|
|
|
431,461
|
|
|
|
434,111
|
|
|
Continuing care retirement community revenue (leased)
|
|
|
|
97,473
|
|
|
|
97,631
|
|
|
|
387,184
|
|
|
|
391,364
|
|
|
Skilled nursing facility revenue (leased)(4) |
|
|
|
42,228
|
|
|
|
39,632
|
|
|
|
161,227
|
|
|
|
163,200
|
|
|
Ageility physical therapy revenue
|
|
|
|
7,631
|
|
|
|
8,100
|
|
|
|
28,027
|
|
|
|
29,250
|
|
|
Total senior living revenue
|
|
|
|
$
|
274,457
|
|
|
|
$
|
272,218
|
|
|
|
$
|
1,081,462
|
|
|
|
$
|
1,091,886
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior living wages and benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent and assisted living community wages and benefits (owned)
|
|
|
|
$
|
8,729
|
|
|
|
$
|
8,131
|
|
|
|
$
|
33,611
|
|
|
|
$
|
32,357
|
|
|
Independent and assisted living community wages and benefits (leased)
|
|
|
|
50,591
|
|
|
|
46,790
|
|
|
|
194,652
|
|
|
|
186,434
|
|
|
Continuing care retirement community wages and benefits (leased)
|
|
|
|
51,054
|
|
|
|
49,547
|
|
|
|
202,556
|
|
|
|
199,141
|
|
|
Skilled nursing facility wages and benefits (leased)
|
|
|
|
28,485
|
|
|
|
26,112
|
|
|
|
108,065
|
|
|
|
103,160
|
|
|
Ageility physical therapy wages and benefits
|
|
|
|
5,357
|
|
|
|
5,645
|
|
|
|
19,218
|
|
|
|
19,865
|
|
|
Insurance and other (5) |
|
|
|
(1,160
|
)
|
|
|
(1,365
|
)
|
|
|
(2,805
|
)
|
|
|
(3,168
|
)
|
|
Total senior living wages and benefits
|
|
|
|
$
|
143,056
|
|
|
|
$
|
134,860
|
|
|
|
$
|
555,297
|
|
|
|
$
|
537,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other senior living operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent and assisted living community other operating expenses
(owned)
|
|
|
|
$
|
5,480
|
|
|
|
$
|
5,147
|
|
|
|
$
|
21,548
|
|
|
|
$
|
19,998
|
|
|
Independent and assisted living community other operating expenses
(leased)
|
|
|
|
29,722
|
|
|
|
27,732
|
|
|
|
115,904
|
|
|
|
108,676
|
|
|
Continuing care retirement community other operating expenses
(leased)
|
|
|
|
27,225
|
|
|
|
25,591
|
|
|
|
108,931
|
|
|
|
102,994
|
|
|
Skilled nursing facility other operating expenses (leased) (6) |
|
|
|
11,173
|
|
|
|
11,180
|
|
|
|
46,901
|
|
|
|
44,112
|
|
|
Ageility physical therapy other operating expenses
|
|
|
|
764
|
|
|
|
563
|
|
|
|
2,296
|
|
|
|
1,827
|
|
|
Insurance and other (5) |
|
|
|
396
|
|
|
|
2,176
|
|
|
|
3,041
|
|
|
|
7,611
|
|
|
Total other senior living operating expenses
|
|
|
|
$
|
74,760
|
|
|
|
$
|
72,389
|
|
|
|
$
|
298,621
|
|
|
|
$
|
285,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Excludes data for managed communities.
|
|
(2)
|
|
Includes data for senior living communities that Five Star has owned
or leased continuously since October 1, 2017.
|
|
(3)
|
|
Includes data for senior living communities that Five Star has owned
or leased continuously since January 1, 2017.
|
|
(4)
|
|
Skilled nursing facility revenue (leased) for the year ended
December 31, 2018 includes a $0.1 million reversal of estimated
revenue reserves related to the Compliance Assessment. Skilled
nursing facility revenue (leased) for the three months and year
ended December 31, 2017 includes an estimated $0.9 million revenue
reserve related to the Compliance Assessment.
|
|
(5)
|
|
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 in the applicable period.
|
|
(6)
|
|
Skilled nursing facility other operating expenses (leased) for the
three months and year ended December 31, 2017 includes $0.7 million
expense for estimated penalties, compliance costs and professional
fees related to the Compliance Assessment.
|
|
|
|
|
|
|
|
|
FIVE STAR SENIOR LIVING INC.
SENIOR LIVING OTHER OPERATING
DATA
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
Independent and assisted living communities (owned):
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of communities (end of period)
|
|
|
20
|
|
|
20
|
|
|
20
|
|
|
22
|
|
|
24
|
|
|
Number of units (end of period)
|
|
|
2,108
|
|
|
2,108
|
|
|
2,108
|
|
|
2,259
|
|
|
2,474
|
|
|
Occupancy(2) |
|
|
82.3
|
%
|
|
81.5
|
%
|
|
81.1
|
%
|
|
80.7
|
%
|
|
82.7
|
%
|
|
Avg. monthly rate(3) |
|
|
$
|
3,458
|
|
|
$
|
3,442
|
|
|
$
|
3,392
|
|
|
$
|
3,464
|
|
|
$
|
3,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent and assisted living communities (leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of communities (end of period)
|
|
|
128
|
|
|
128
|
|
|
128
|
|
|
128
|
|
|
128
|
|
|
Number of units (end of period)
|
|
|
10,520
|
|
|
10,520
|
|
|
10,519
|
|
|
10,510
|
|
|
10,507
|
|
|
Occupancy(2) |
|
|
84.2
|
%
|
|
83.7
|
%
|
|
83.6
|
%
|
|
83.4
|
%
|
|
84.4
|
%
|
|
Avg. monthly rate(3) |
|
|
$
|
3,991
|
|
|
$
|
3,991
|
|
|
$
|
4,024
|
|
|
$
|
4,070
|
|
|
$
|
3,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing care retirement communities (leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of communities (end of period)
|
|
|
31
|
|
|
31
|
|
|
31
|
|
|
31
|
|
|
31
|
|
|
Number of units (end of period)(4) |
|
|
7,117
|
|
|
7,157
|
|
|
7,158
|
|
|
7,158
|
|
|
7,159
|
|
|
Occupancy(2) |
|
|
82.9
|
%
|
|
81.3
|
%
|
|
80.6
|
%
|
|
81.5
|
%
|
|
81.8
|
%
|
|
Avg. monthly rate(3) |
|
|
$
|
5,383
|
|
|
$
|
5,427
|
|
|
$
|
5,433
|
|
|
$
|
5,584
|
|
|
$
|
5,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Skilled nursing facilities (leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of communities (end of period)
|
|
|
29
|
|
|
29
|
|
|
29
|
|
|
30
|
|
|
30
|
|
|
Number of units (end of period)(5) |
|
|
2,505
|
|
|
2,505
|
|
|
2,505
|
|
|
2,602
|
|
|
2,602
|
|
|
Occupancy(2) |
|
|
77.9
|
%
|
|
76.9
|
%
|
|
74.7
|
%
|
|
75.7
|
%
|
|
77.8
|
%
|
|
Avg. monthly rate(3) |
|
|
$
|
7,049
|
|
|
$
|
6,874
|
|
|
$
|
6,926
|
|
|
$
|
6,951
|
|
|
$
|
6,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total senior living communities (owned and leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of communities (end of period)
|
|
|
208
|
|
|
208
|
|
|
208
|
|
|
211
|
|
|
213
|
|
|
Number of units (end of period)
|
|
|
22,250
|
|
|
22,290
|
|
|
22,290
|
|
|
22,529
|
|
|
22,742
|
|
|
Occupancy(2) |
|
|
82.9
|
%
|
|
82.0
|
%
|
|
81.4
|
%
|
|
81.7
|
%
|
|
82.6
|
%
|
|
Avg. monthly rate(3) |
|
|
$
|
4,710
|
|
|
$
|
4,701
|
|
|
$
|
4,709
|
|
|
$
|
4,796
|
|
|
$
|
4,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed communities:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of communities (end of period)
|
|
|
76
|
|
|
75
|
|
|
75
|
|
|
72
|
|
|
70
|
|
|
Number of units (end of period)(6) |
|
|
9,766
|
|
|
9,515
|
|
|
9,510
|
|
|
9,258
|
|
|
9,043
|
|
|
Occupancy(2) |
|
|
86.5
|
%
|
|
86.7
|
%
|
|
86.1
|
%
|
|
86.0
|
%
|
|
86.0
|
%
|
|
Avg. monthly rate(3) |
|
|
$
|
4,149
|
|
|
$
|
4,164
|
|
|
$
|
4,242
|
|
|
$
|
4,301
|
|
|
$
|
4,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other ancillary services:
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of ageility physical therapy inpatient clinics (end of period)
|
|
|
47
|
|
|
47
|
|
|
47
|
|
|
47
|
|
|
47
|
|
|
Number of ageility physical therapy outpatient clinics (end of
period)
|
|
|
128
|
|
|
120
|
|
|
111
|
|
|
108
|
|
|
92
|
|
|
Number of home health communities served (end of period)
|
|
|
10
|
|
|
12
|
|
|
12
|
|
|
12
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Occupancy and average monthly rate for the three months ended
December 31, 2017, March 31, 2018 and June 30, 2018 include data for
the senior living communities that were sold to SNH during those
periods as owned until the time of sale and as managed from the time
of sale through the end of such periods.
|
|
(2)
|
|
Includes living units categorized as in service. As a result, the
number of living units may change from period to period for reasons
other than the acquisition or disposition 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 1,916 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.
PERCENT BREAKDOWN OF SENIOR
LIVING COMMUNITY REVENUE(1)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Independent and assisted living communities (owned):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private and other sources
|
|
|
|
98.7
|
%
|
|
|
99.2
|
%
|
|
|
98.7
|
%
|
|
|
99.0
|
%
|
|
Medicaid
|
|
|
|
1.3
|
%
|
|
|
0.8
|
%
|
|
|
1.3
|
%
|
|
|
1.0
|
%
|
|
Total
|
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent and assisted living communities (leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private and other sources
|
|
|
|
98.8
|
%
|
|
|
98.9
|
%
|
|
|
98.9
|
%
|
|
|
99.0
|
%
|
|
Medicaid
|
|
|
|
1.2
|
%
|
|
|
1.1
|
%
|
|
|
1.1
|
%
|
|
|
1.0
|
%
|
|
Total
|
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing care retirement communities (leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private and other sources
|
|
|
|
74.3
|
%
|
|
|
74.1
|
%
|
|
|
74.1
|
%
|
|
|
73.9
|
%
|
|
Medicare
|
|
|
|
17.5
|
%
|
|
|
18.4
|
%
|
|
|
18.1
|
%
|
|
|
19.0
|
%
|
|
Medicaid
|
|
|
|
8.2
|
%
|
|
|
7.5
|
%
|
|
|
7.8
|
%
|
|
|
7.1
|
%
|
|
Total
|
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Skilled nursing facilities (leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private and other sources
|
|
|
|
22.0
|
%
|
|
|
19.1
|
%
|
|
|
21.0
|
%
|
|
|
21.7
|
%
|
|
Medicare
|
|
|
|
17.1
|
%
|
|
|
18.9
|
%
|
|
|
18.2
|
%
|
|
|
20.5
|
%
|
|
Medicaid
|
|
|
|
60.9
|
%
|
|
|
62.0
|
%
|
|
|
60.8
|
%
|
|
|
57.8
|
%
|
|
Total
|
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total senior living communities (owned and leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private and other sources
|
|
|
|
77.7
|
%
|
|
|
77.7
|
%
|
|
|
77.7
|
%
|
|
|
77.8
|
%
|
|
Medicare
|
|
|
|
9.1
|
%
|
|
|
9.5
|
%
|
|
|
9.4
|
%
|
|
|
10.0
|
%
|
|
Medicaid
|
|
|
|
13.2
|
%
|
|
|
12.8
|
%
|
|
|
12.9
|
%
|
|
|
12.2
|
%
|
|
Total
|
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Excludes data for managed communities.
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190306005191/en/
Brad Shepherd, Director, Investor Relations
(617) 796-8245
Source: Five Star Senior Living Inc.