[August 10, 2015] |
|
Five Star Quality Care, Inc. Reports Second Quarter 2015 Results
Five Star Quality Care, Inc. (NYSE:FVE) today announced its financial
results for the quarter and six months ended June 30, 2015.
Five Star's President and CEO, Bruce J. Mackey Jr., made the following
statement:
"Our operating results at our owned and leased independent and assisted
living communities as well at our leased continuing care retirement
communities improved year over year, primarily driven by increased
average monthly rates and our continued focus on expense controls.
Management fee revenues also increased 10.9% year over year primarily
because of the growth in the number of managed communities. However, our
overall results were adversely affected by a modest, but continuing
decline in occupancy.
"We continue executing on our business plan of growing our portfolio of
owned, leased and managed private pay senior living communities and
selling skilled nursing facilities dependent upon government
reimbursement revenue and other underperforming properties. During the
second quarter, we added 14 managed communities with 838 living units
and we recently sold two skilled nursing facilities with 51 living
units. We also currently have two private pay senior living communities
with 152 living units under agreement to purchase for our own account."
Second Quarter 2015 Financial Results:
-
Senior living revenues for the second quarter of 2015 increased 0.9%
to $277.9 million from $275.4 million for the same period in 2014.
Growth in senior living revenues was the result of increases in
average monthly rates to residents who pay privately for services,
partially offset by decreases in occupancy. Management fee revenue
from Five Star's managed communities for the second quarter of 2015
increased 10.9% to $2.7 million from $2.4 million for the same period
in 2014. Growth in management fees was primarily due to an increase in
the number of communities managed and an increase in average monthly
rates, partially offset by decreases in occupancy at same store
comparable communities.
-
Earnings from continuing operations before interest, taxes,
depreciation and amortization, or EBITDA, for the second quarter of
2015 were $5.9 million compared to $7.7 million for the same period in
2014. EBITDA, excluding certain items described below that Five Star
believes may be non-recurring, or Adjusted EBITDA, was $7.1 million
and $8.9 million for the second quarter of 2015 and 2014,
respectively. Adjusted EBITDA excluding rent, or Adjusted EBITDAR, was
$56.8 million for the second quarter of 2015 compared to $58.1 million
for the same period in 2014.
-
Loss from continuing operations for the second quarter of 2015 was
$3.4 million, or $0.07 per basic and diluted share, compared to loss
from continuing operations of $1.0 million, or $0.02 per basic and
diluted share, for the same period in 2014.
-
Net loss for the second quarter of 2015 was $3.9 million, or $0.08 per
basic and diluted share, compared to net loss of $1.9 million, or
$0.04 per basic and diluted share, for the same period in 2014. Net
loss for the second quarter of 2015 included a loss from discontinued
operations of $0.5 million; net loss for the second quarter of 2014
included a loss from discontinued operations of $0.9 million.
-
EBITDA, EBITDAR, loss from continuing operations and net loss in the
second quarter of 2015 included $1.2 million of items that Five Star
believes may not be recurring and which included compliance costs and
professional fees of $1.9 million, primarily resulting from Medicare
records billing deficiencies which Five Star discovered and
self-reported as previously disclosed and as described below, offset
by a gain of $0.7 million on early extinguishment of debt. EBITDA,
EBITDAR, loss from continuing operations and net loss in the second
quarter of 2014 included $1.1 million of accounting costs incurred in
connection with the restatement of certain previously issued financial
statements and the delayed completion of Five Star's 2013 third
quarter and 2013 annual financial reporting which Five Star believes
may not be recurring.
-
A reconciliation of loss from continuing operations determined in
accordance with U.S. generally accepted accounting principles, or
GAAP, to EBITDA, Adjusted EBITDA and Adjusted EBITDAR for the quarters
ended June 30, 2015 and 2014 appears later in this press release.
Second Quarter 2015 Operating Results (continuing operations):
-
Occupancy at owned and leased senior living communities for the second
quarter of 2015 decreased by 70 basis points ("bps") to 85.1% from
85.8% for the same period in 2014.
-
The average monthly rate at owned and leased senior living communities
for the second quarter of 2015 increased by 1.2% to $4,591 from $4,537
for the same period in 2014.
-
The percentage of revenues derived from residents' private resources
at owned and leased senior living communities for the second quarter
of 2015 increased by 50 bps to 77.6% from 77.1% for the same period in
2014.
Year to Date Financial Results:
-
Senior living revenues for the six months ended June 30, 2015
increased 1.1% to $553.1 million from $547.2 million for the same
period in 2014. Growth in senior living revenues was the result of
increases in average monthly rates to residents who pay privately for
services, partially offset by decreases in occupancy and a revenue
reserve Five Star recorded in the 2015 period, as further described
below. Management fee revenue from Five Star's managed communities for
the six months ended June 30, 2015 increased by 7.5% to $5.2 million
from $4.9 million for the same period in 2014. Growth in management
fees was primarily due to an increase in the number of communities
managed and an increase in average monthly rates, partially offset by
decreases in occupancy at same store comparable communities.
-
EBITDA for the six months ended June 30, 2015 was $10.6 million
compared to $7.7 million for the same period in 2014. Adjusted EBITDA
was $16.7 million and $11.6 million for the six months ended June 30,
2015 and 2014, respectively. Adjusted EBITDAR was $116.0 million for
the six months ended June 30, 2015 compared to $109.9 million for the
same period in 2014.
-
Loss from continuing operations for the six months ended June 30, 2015
was $8.2 million, or $0.17 per basic and diluted share, compared to
loss from continuing operations of $6.9 million, or $0.14 per basic
and diluted share, for the same period in 2014.
-
Net loss for the six months ended June 30, 2015 was $9.2 million, or
$0.19 per basic and diluted share, compared to net loss of $8.7
million, or $0.18 per basic and diluted share, for the same period in
2014. Net loss for the six months ended June 30, 2015 included a loss
from discontinued operations of $1.0 million; net loss for the six
months ended June 30, 2014 included a loss from discontinued
operations of $1.8 million.
-
EBITDA, EBITDAR, loss from continuing operations and net loss in the
six months ended June 30, 2015 included $6.1 million of items that
Five Star believes may not be recurring and which included a revenue
reserve of $2.4 million and estimated penalties, compliance costs and
professional fees of $4.4 million, primarily resulting from Medicare
records billing deficiencies which Five Star discovered and
self-reported as previously disclosed and as described below, offset
by a gain of $0.7 million on early extinguishment of debt. EBITDA,
EBITDAR, loss from continuing operations and net loss in the six
months ended June 30, 2014 included $4.1 million of accounting costs
incurred in connection with the restatement of certain previously
issued financial statements and the delayed completion of Five Star's
2013 third quarter and 2013 annual financial reporting which Five Star
believes may not be recurring.
-
A reconciliation of loss from continuing operations determined in
accordance with GAAP to EBITDA, Adjusted EBITDA and Adjusted EBITDAR
for the six months ended June 30, 2015 and 2014 appears later in this
press release.
Expansion and Disposition Activities:
Since April 1, 2015, Five Star began managing 15 senior living
communities with a combined 878 living units for Senior Housing
Properties Trust, or SNH:
-
In May 2015, Five Star began managing 14 assisted living communities
in four states with a combined 838 living units which were acquired by
SNH at that time.
-
Also in May 2015, Five Star began managing a newly constructed senior
living community with 40 private pay independent living units located
in Georgia, which is located adjacent to another community that Five
Star manages for SNH. Five Star now manages these communities as a
single integrated community under the same management agreement.
In March 2015, Five Star entered an agreement to acquire two private pay
independent living communities with a combined total of 152 living units
located in Tennessee for $26.0 million, including the assumption of
approximately $17.0 million of mortgage debt and excluding closing
costs. Five Star currently expects this acquisition to close by year end
2015 and to fund this acquisition with cash on hand and borrowings under
its revolving credit facility.
In July and August 2015, Five Star and SNH sold two skilled nursing
facilities, or SNFs, which are included in discontinued operations, with
a combined total of 51 living units for approximately $1.0 million. As a
result of these sales, Five Star's annual minimum rent payable to SNH
decreased by $0.1 million in accordance with the terms of the applicable
leases.
As of the date of this press release, Five Star is continuing to market
for sale one community it owns with 32 living units and Five Star and
SNH are continuing to jointly market for sale one community that Five
Star leases from SNH with 116 living units, both of which are reported
as held for sale and discontinued operations in Five Star's financial
statements.
Financing Activities:
In April 2015, Five Star exercised the first of two one year options to
extend the maturity date of its $150.0 million revolving credit
facility, extending the maturity date of the facility to April 13, 2016.
In June 2015, Five Star prepaid a 8.99% mortgage note that had a
principal balance of approximately $4.9 million. In connection with this
repayment, Five Star recorded a gain of approximately $0.7 million on
early extinguishment of debt, net of unamortized premiums and a 1%
prepayment penalty, in the second quarter of 2015.
Compliance Update:
As previously disclosed, as a result of Five Star's compliance program
to review medical records related to its Medicare billing practices,
during 2014 Five Star discovered potentially inadequate documentation
and other issues at one of its leased SNFs. This compliance review was
not initiated in response to any specific complaint or allegation, but
was a review of the type that Five Star periodically undertakes to test
its own compliance with applicable Medicare billing rules. As a result
of these discoveries, in February 2015, Five Star made a voluntary
disclosure of deficiencies to the United States Department of Health and
Human Services Office of the Inspector General, or the OIG, pursuant to
the OIG's Provider Self-Disclosure Protocol. Five Star completed its
investigation and assessment of these matters and submitted a final
supplemental disclosure to the OIG in May 2015. At December 31, 2014,
Five Star had accrued a revenue reserve of $4.3 million for historical
Medicare repayments Five Star expects to repay as a result of these
deficiencies. For the quarter ended March 31, 2015, this revenue reserve
was increased by $2.4 million so it now totals $6.7 million. In
addition, Five Star has recorded expense for additional costs Five Star
incurred or expects to incur, including OIG imposed penalties, as a
result of this matter totaling $3.6 million for the year ending December
31, 2014, and $1.9 million and $4.2 million for the three and six months
ending June 30, 2015, respectively, of which $5.1 million remains
accrued and not paid at June 30, 2015. As part of the OIG's
Self-Disclosure Protocol, Five Star expects that the OIG will review and
evaluate Five Star's investigation and assessment of these deficiencies
and that review could result in further investigation and a possible
increase in Five Star's liabilities.
Loss Contingency:
In the ordinary course of Five Star's business, Five Star is
periodically subject to claims by residents of its senior living
communities alleging improper care and services. Five Star maintains
insurance for such claims subject to a self-insured retention. In May
2015, in a case brought in the Superior Court of Maricopa County,
Arizona, jury verdicts were awarded against Five Star on such a claim
for $2.5 million of compensatory damages plus approximately $16.7
million of punitive damages. The self insured retention applicable to
the policy covering this claim is $0.5 million. If the compensatory part
of this jury verdict is sustained, Five Star expects that the full
compensatory award will be payable by Five Star's insurer. Although it
is investigating the issue, Five Star believes that it may have a basis
to recover from its insurer some or all of the punitive damages awarded
by the jury verdict. Five Star also believes that it is more likely than
not that these jury verdicts, including the punitive damages award, will
be set aside. Because Five Star has determined that losses beyond costs
already incurred in defending the lawsuit are not probable and Five Star
is unable to reasonably estimate its potential liability for this
matter, Five Star has not recorded a reserve for this matter. Although
Five Star cannot predict the ultimate outcome of this claim, Five Star
believes the jury's verdicts were wrong and the result of significant
trial error. Five Star intends to vigorously pursue its position in post
trial motions and, if those motions are unsuccessful, on appeal.
Conference Call:
Later this morning, August 10, 2015, at 8:30 a.m. Eastern Time, Five
Star will host a conference call to discuss its second quarter 2015
results. Following management's presentation, there will be a question
and answer period.
The conference call telephone number is (877) 329-4332. Participants
calling from outside the United States and Canada should dial (412)
317-5436. No pass code is necessary to access the call from either
number. Participants should dial in about 15 minutes prior to the
scheduled start of the call. A replay of the conference call will be
available through 11:59 p.m. Eastern Time on Monday, August 17, 2015. To
hear the replay, dial (412) 317-0088. The replay pass code is 10070303.
A live audio webcast of the conference call will also be available in a
listen only mode on Five Star's website 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 for about one week after the
call. The transcription, recording and retransmission in any way of
Five Star's second quarter 2015 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 Quality Care, Inc.:
Five Star Quality Care, Inc. is a senior living and healthcare services
company. As of June 30, 2015, Five Star operated 272 senior living
communities (excluding those senior living communities it has classified
as discontinued operations) with 31,267 living units located in 32
states, including 212 communities (23,099 living units) that it owns or
leases and 60 communities (8,168 living units) that it manages. These
communities include independent living, assisted living, continuing care
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" OR SIMILAR EXPRESSIONS, IT 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 THESE FORWARD LOOKING
STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:
-
THIS PRESS RELEASE STATES THAT FIVE STAR HAS AGREED TO ACQUIRE TWO
INDEPENDENT LIVING COMMUNITIES FOR $26.0 MILLION, INCLUDING THE
ASSUMPTION OF APPROXIMATELY $17.0 MILLION OF MORTGAGE DEBT AND
EXCLUDING CLOSING COSTS, AND THAT THIS ACQUISITION IS EXPECTED TO
CLOSE BY YEAR END 2015. THIS TRANSACTION IS SUBJECT TO CLOSING
CONDITIONS. THESE CONDITIONS MAY NOT BE SATISFIED AND THIS ACQUISITION
MAY NOT OCCUR, MAY BE DELAYED OR THE PRICE AND TERMS MAY CHANGE.
-
THIS PRESS RELEASE STATES THAT FIVE STAR IS CONTINUING TO MARKET FOR
SALE ONE COMMUNITY IT OWNS AND FIVE STAR AND SNH ARE CONTINUING TO
JOINTLY MARKET FOR SALE ONE COMMUNITY THAT FIVE STAR LEASES FROM SNH.
FIVE STAR AND SNH MAY NOT BE ABLE TO SELL THESE COMMUNITIES ON
ACCEPTABLE TERMS OR OTHERWISE, AND THE SALES OF THESE COMMUNITIES MAY
NOT OCCUR.
-
IN FEBRUARY 2015, FIVE STAR MADE A VOLUNTARY DISCLOSURE OF CERTAIN
DOCUMENTATION DEFICIENCIES RELATED TO MEDICARE RECORDS AND OTHER
MATTERS TO THE OIG. FIVE STAR COMPLETED ITS INVESTIGATION AND
ASSESSMENT OF THESE MATTERS AND SUBMITTED A FINAL SUPPLEMENTAL
DISCLOSURE TO THE OIG IN MAY 2015. ALTHOUGH FIVE STAR HAS ACCRUED A
REVENUE RESERVE FOR REPAYMENT OF HISTORICAL MEDICARE REVENUES FIVE
STAR EXPECTS TO REPAY AND HAS ACCRUED A RESERVE FOR ASSOCIATED
ADDITIONAL COSTS FIVE STAR INCURRED OR EXPECTS TO INCUR, INCLUDING OIG
IMPOSED PENALTIES, THERE CAN BE NO ASSURANCE THAT FIVE STAR'S RESERVES
WILL BE ADEQUATE TO COVER THE REPAYMENT OBLIGATIONS IT IS FINALLY
DETERMINED TO OWE OR ASSOCIATED ADDITIONAL COSTS. ALSO, ADDITIONAL
DEFICIENCIES MAY BE DISCOVERED THAT COULD INCREASE FIVE STAR'S
LIABILITY TO THE OIG AND THE ASSOCIATED COSTS.
-
THIS PRESS RELEASE STATES THAT FIVE STAR BELIEVES THE JURY'S VERDICTS
AWARDED IN THE ARIZONA CASE AGAINST IT WERE WRONG AND THE RESULT OF
SIGNIFICANT TRIAL ERROR AND THAT FIVE STAR INTENDS TO VIGOROUSLY
PURSUE ITS POSITION IN POST TRIAL MOTIONS AND, IF THOSE MOTIONS ARE
UNSUCCESSFUL, ON APPEAL. THIS PRESS RELEASE ALSO STATES THAT BECAUSE
FIVE STAR HAS DETERMINED THAT LOSSES BEYOND COSTS ALREADY INCURRED IN
DEFENDING THE LAWSUIT ARE NOT PROBABLE AND FIVE STAR IS UNABLE TO
REASONABLY ESTIMATE ITS POTENTIAL LIABILITY FOR THIS MATTER, FIVE STAR
HAS NOT RECORDED A RESERVE FOR THIS MATTER. THESE STATEMENTS MAY IMPLY
THAT FIVE STAR WILL BE SUCCESSFUL IN THE ARIZONA CASE AND WILL NOT
HAVE TO PAY ANY AMOUNTS IN CONNECTION WITH THE JURY VERDICTS IN
ADDITION TO COSTS ALREADY INCURRED IN DEFENDING THE LAWSUIT. HOWEVER,
LITIGATION CAN BE UNPREDICTABLE AND OFTEN HAS UNANTICIPATED RESULTS.
THERE CAN BE NO ASSURANCE THAT FIVE STAR WILL BE SUCCESSFUL IN ITS
EFFORTS TO OVERTURN THE JURY VERDICTS AND FIVE STAR MAY HAVE TO FUND
SIGNIFICANT AMOUNTS TO SATISFY THESE JURY VERDICTS.
-
THIS PRESS RELEASE STATES THAT FIVE STAR BELIEVES THAT IT MAY HAVE A
BASIS TO RECOVER FROM ITS INSURER SOME OR ALL OF THE PUNITIVE DAMAGES
AWARDED IN THE ARIZONA CASE. FIVE STAR IS CURRENTLY INVESTIGATING
WHETHER ITS INSURER MAY BE RESPONSIBLE UNDER THE TERMS OF FIVE STAR'S
INSURANCE OR OTHERWISE UNDER APPLICABLE LAW TO PAY SOME OR ALL OF ANY
PUNITIVE DAMAGES AWARD THAT MAY BE SUSTAINED. FIVE STAR'S INSURER HAS
DENIED ANY RESPONSIBILITY FOR THE PUNITIVE DAMAGES AWARD AND THERE CAN
BE NO ASSURANCE THAT FIVE STAR WILL HAVE INSURANCE COVERAGE IN THE
EVENT THE PUNITIVE DAMAGES AWARD IS NOT SET ASIDE OR REVERSED ON
APPEAL.
THE INFORMATION CONTAINED IN FIVE STAR'S FILINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION, OR THE SEC, INCLUDING UNDER THE CAPTION "RISK
FACTORS" IN FIVE STAR'S PERIODIC REPORTS, OR INCORPORATED THEREIN,
IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE DIFFERENCES FROM
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.
|
FIVE STAR QUALITY CARE, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (in thousands, except per share
data) (unaudited)
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior living revenue
|
|
$
|
277,935
|
|
$
|
275,388
|
|
$
|
553,108
|
|
$
|
547,169
|
Management fee revenue
|
|
|
2,699
|
|
|
2,433
|
|
|
5,222
|
|
|
4,858
|
Reimbursed costs incurred on behalf of managed communities
|
|
|
61,635
|
|
|
54,978
|
|
|
117,912
|
|
|
109,183
|
Total revenues
|
|
|
342,269
|
|
|
332,799
|
|
|
676,242
|
|
|
661,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior living wages and benefits
|
|
|
136,351
|
|
|
134,179
|
|
|
269,604
|
|
|
266,962
|
Other senior living operating expenses
|
|
|
71,245
|
|
|
70,334
|
|
|
143,470
|
|
|
143,151
|
Costs incurred on behalf of managed communities
|
|
|
61,635
|
|
|
54,978
|
|
|
117,912
|
|
|
109,183
|
Rent expense
|
|
|
49,657
|
|
|
49,203
|
|
|
99,285
|
|
|
98,277
|
General and administrative
|
|
|
18,181
|
|
|
16,574
|
|
|
36,163
|
|
|
36,322
|
Depreciation and amortization
|
|
|
8,123
|
|
|
7,975
|
|
|
16,218
|
|
|
15,251
|
Total operating expenses
|
|
|
345,192
|
|
|
333,243
|
|
|
682,652
|
|
|
669,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(2,923)
|
|
|
(444)
|
|
|
(6,410)
|
|
|
(7,936)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest, dividend and other income
|
|
|
243
|
|
|
213
|
|
|
463
|
|
|
409
|
Interest and other expense
|
|
|
(1,137)
|
|
|
(1,261)
|
|
|
(2,491)
|
|
|
(2,479)
|
Gain on early extinguishment of debt
|
|
|
692
|
|
|
-
|
|
|
692
|
|
|
-
|
Gain on sale of available for sale securities reclassified from
other comprehensive (loss) income
|
|
|
18
|
|
|
13
|
|
|
38
|
|
|
326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations before income taxes and equity in
earnings of an investee
|
|
|
(3,107)
|
|
|
(1,479)
|
|
|
(7,708)
|
|
|
(9,680)
|
(Provision for) benefit from income taxes
|
|
|
(280)
|
|
|
364
|
|
|
(584)
|
|
|
2,795
|
Equity in earnings of an investee
|
|
|
23
|
|
|
118
|
|
|
95
|
|
|
21
|
Loss from continuing operations
|
|
|
(3,364)
|
|
|
(997)
|
|
|
(8,197)
|
|
|
(6,864)
|
Loss from discontinued operations
|
|
|
(546)
|
|
|
(894)
|
|
|
(1,015)
|
|
|
(1,786)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(3,910)
|
|
$
|
(1,891)
|
|
$
|
(9,212)
|
|
$
|
(8,650)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding-basic and diluted
|
|
|
48,399
|
|
|
48,013
|
|
|
48,382
|
|
|
48,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per share from:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
(0.07)
|
|
$
|
(0.02)
|
|
$
|
(0.17)
|
|
$
|
(0.14)
|
Discontinued operations
|
|
|
(0.01)
|
|
|
(0.02)
|
|
|
(0.02)
|
|
|
(0.04)
|
Net loss per share-basic and diluted
|
|
$
|
(0.08)
|
|
$
|
(0.04)
|
|
$
|
(0.19)
|
|
$
|
(0.18)
|
|
|
FIVE STAR QUALITY CARE, INC. CONDENSED CONSOLIDATED BALANCE
SHEETS DATA (in thousands) (unaudited)
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2015
|
|
2014
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
22,016
|
|
$
|
20,988
|
Accounts receivable, net of allowance
|
|
|
38,499
|
|
|
38,814
|
Due from related persons
|
|
|
11,569
|
|
|
12,641
|
Investments in available for sale securities
|
|
|
25,352
|
|
|
23,436
|
Restricted cash
|
|
|
4,468
|
|
|
2,945
|
Prepaid and other current assets
|
|
|
20,705
|
|
|
21,494
|
Assets of discontinued operations
|
|
|
1,840
|
|
|
1,463
|
Total current assets
|
|
|
124,449
|
|
|
121,781
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
357,118
|
|
|
357,186
|
Restricted cash
|
|
|
3,477
|
|
|
2,170
|
Restricted investments in available for sale securities
|
|
|
15,222
|
|
|
19,835
|
Goodwill, equity investment and other long term assets
|
|
|
35,188
|
|
|
34,001
|
Total assets
|
|
$
|
535,454
|
|
$
|
534,973
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Revolving credit facilities
|
|
$
|
35,000
|
|
$
|
35,000
|
Other current liabilities
|
|
|
199,724
|
|
|
180,392
|
Total current liabilities
|
|
|
234,724
|
|
|
215,392
|
|
|
|
|
|
|
|
Mortgage notes payable
|
|
|
43,281
|
|
|
49,373
|
Other long term liabilities
|
|
|
39,274
|
|
|
43,426
|
Shareholders' equity
|
|
|
218,175
|
|
|
226,782
|
Total liabilities and shareholders' equity
|
|
$
|
535,454
|
|
$
|
534,973
|
|
|
FIVE STAR QUALITY CARE, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
|
|
|
|
Six Months Ended June 30,
|
|
|
2015
|
|
2014
|
Cash flows from operating activities:
|
|
|
|
|
|
Net loss
|
|
(9,212)
|
|
$
|
(8,650)
|
Adjustments to reconcile net loss to cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
16,496
|
|
|
15,774
|
Gain on early extinguishment of debt
|
|
(742)
|
|
|
-
|
Loss from discontinued operations before income tax
|
|
1,015
|
|
|
2,757
|
Gain on sale of available for sale securities
|
|
(38)
|
|
|
(326)
|
Loss on disposal of property and equipment
|
|
56
|
|
|
-
|
Equity in earnings of an investee
|
|
(95)
|
|
|
(21)
|
Stock-based compensation
|
|
788
|
|
|
559
|
Deferred income taxes
|
|
-
|
|
|
(4,756)
|
Provision for losses on receivables
|
|
2,880
|
|
|
2,607
|
Changes in assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
(2,565)
|
|
|
(4,255)
|
Prepaid expenses and other assets
|
|
(627)
|
|
|
1,832
|
Accounts payable and accrued expenses
|
|
4,081
|
|
|
15,096
|
Accrued compensation and benefits
|
|
10,115
|
|
|
8,096
|
Due to related persons, net
|
|
448
|
|
|
2,742
|
Other current and long term liabilities
|
|
1,358
|
|
|
3,569
|
Cash provided by operating activities
|
|
23,958
|
|
|
35,024
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
(Increase) decrease in restricted cash and investment accounts, net
|
|
(2,830)
|
|
|
7,900
|
Acquisition of property and equipment
|
|
(25,175)
|
|
|
(28,906)
|
Acquisition of senior living communities, net of liabilities assumed
|
|
-
|
|
|
(5,926)
|
Purchases of available for sale securities
|
|
(298)
|
|
|
(13,585)
|
Investment in Affiliates Insurance Company
|
|
-
|
|
|
(825)
|
Proceeds from sale of property and equipment to Senior Housing
Properties Trust
|
|
8,902
|
|
|
17,423
|
Proceeds from sale of available for sale securities
|
|
2,817
|
|
|
8,225
|
Cash used in investing activities
|
|
(16,584)
|
|
|
(15,694)
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Proceeds from borrowings on credit facilities
|
|
5,000
|
|
|
5,000
|
Repayments of borrowings on credit facilities
|
|
(5,000)
|
|
|
(20,000)
|
Repayments of mortgage notes payable
|
|
(5,498)
|
|
|
(621)
|
Payment of deferred financing fees
|
|
(300)
|
|
|
-
|
Cash used in financing activities
|
|
(5,798)
|
|
|
(15,621)
|
|
|
|
|
|
|
Cash flows from discontinued operations:
|
|
|
|
|
|
Net cash (used in) provided by operating activities
|
|
(536)
|
|
|
7,748
|
Net cash used in investing activities
|
|
(12)
|
|
|
-
|
Net cash flows (used in) provided by discontinued operations
|
|
(548)
|
|
|
7,748
|
|
|
|
|
|
|
Change in cash and cash equivalents
|
|
1,028
|
|
|
11,457
|
Cash and cash equivalents at beginning of period
|
|
20,988
|
|
|
23,628
|
Cash and cash equivalents at end of period
|
|
22,016
|
|
$
|
35,085
|
|
|
|
|
|
|
Supplemental cash flow information:
|
|
|
|
|
|
Cash paid for interest
|
|
2,088
|
|
$
|
1,599
|
Cash paid for income taxes, net
|
|
750
|
|
$
|
749
|
|
|
|
|
|
|
Non-cash activities:
|
|
|
|
|
|
Issuance of common stock
|
|
206
|
|
$
|
-
|
Real estate acquisition
|
|
-
|
|
$
|
(15,518)
|
Assumption of mortgage note payable
|
|
-
|
|
$
|
15,518
|
|
|
|
|
|
|
FIVE STAR QUALITY CARE, INC. SENIOR LIVING COMMUNITY
FINANCIAL DATA(1) (in thousands)
|
|
|
|
Three months ended June 30, (2)
|
|
|
|
Six months ended June 30, (2)
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
Senior living revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent and assisted living community revenue (owned)
|
|
$
|
29,531
|
|
|
$
|
28,294
|
|
|
|
$
|
59,055
|
|
|
$
|
55,555
|
Independent and assisted living community revenue (leased)
|
|
|
100,859
|
|
|
|
99,642
|
|
|
|
|
200,969
|
|
|
|
197,797
|
Continuing care retirement community revenue (leased)
|
|
|
99,581
|
|
|
|
99,468
|
|
|
|
|
199,837
|
|
|
|
198,699
|
Skilled nursing facility revenue (leased)
|
|
|
43,916
|
|
|
|
44,563
|
|
|
|
|
85,222
|
(3)
|
|
|
88,575
|
Other(4)
|
|
|
4,048
|
|
|
|
3,421
|
|
|
|
|
8,025
|
|
|
|
6,543
|
Total senior living revenue (owned and leased)
|
|
$
|
277,935
|
|
|
$
|
275,388
|
|
|
|
$
|
553,108
|
|
|
$
|
547,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior living wages and benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent and assisted living community wages and benefits (owned)
|
|
$
|
12,299
|
|
|
$
|
11,909
|
|
|
|
$
|
24,314
|
|
|
$
|
23,532
|
Independent and assisted living community wages and benefits (leased)
|
|
|
43,421
|
|
|
|
42,407
|
|
|
|
|
85,266
|
|
|
|
84,300
|
Continuing care retirement community wages and benefits (leased)
|
|
|
50,168
|
|
|
|
50,282
|
|
|
|
|
99,891
|
|
|
|
99,497
|
Skilled nursing facility wages and benefits (leased)
|
|
|
27,938
|
|
|
|
27,554
|
|
|
|
|
55,657
|
|
|
|
55,147
|
Other(4)
|
|
|
2,525
|
|
|
|
2,027
|
|
|
|
|
4,476
|
|
|
|
4,486
|
Total senior living wages and benefits (owned and leased)
|
|
$
|
136,351
|
|
|
$
|
134,179
|
|
|
|
$
|
269,604
|
|
|
$
|
266,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior living other operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent and assisted living community other operating expenses
(owned)
|
|
$
|
7,351
|
|
|
$
|
6,730
|
|
|
|
$
|
14,532
|
|
|
$
|
13,683
|
Independent and assisted living community other operating expenses
(leased)
|
|
|
24,741
|
|
|
|
24,627
|
|
|
|
|
49,583
|
|
|
|
49,959
|
Continuing care retirement community other operating expenses
(leased)
|
|
|
25,621
|
|
|
|
25,907
|
|
|
|
|
51,216
|
|
|
|
53,098
|
Skilled nursing facility other operating expenses (leased)
|
|
|
13,167
|
(5)
|
|
|
12,232
|
|
|
|
|
27,140
|
(5)
|
|
|
24,585
|
Other(4)
|
|
|
365
|
|
|
|
838
|
|
|
|
|
999
|
|
|
|
1,826
|
Total senior living operating expenses (owned and leased)
|
|
$
|
71,245
|
|
|
$
|
70,334
|
|
|
|
$
|
143,470
|
|
|
$
|
143,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________________
|
(1)
|
|
Excludes data for managed communities and discontinued operations.
|
(2)
|
|
The number of owned and leased communities between April 1, 2014 and
June 30, 2015 increased by only one due to the acquisition of an
assisted living community during the second quarter of 2014;
therefore this press release does not present same store results.
|
(3)
|
|
SNF revenue for the six months ended June 30, 2015 is net of a $2.4
million reserve for estimated Medicare payments Five Star expects to
repay.
|
(4)
|
|
Other senior living revenue and expenses relate primarily to
rehabilitation and other specialty service revenues and expenses
provided at the residential communities owned and leased by Five
Star.
|
(5)
|
|
SNF other senior living operating expenses for the three and six
months ended June 30, 2015 includes $1.3 million and $3.6 million,
respectively, of estimated penalties, compliance costs and
professional fees related to the Medicare payments Five Star expects
to repay.
|
|
|
|
|
FIVE STAR QUALITY CARE, INC. PERCENT BREAKDOWN OF SENIOR
LIVING COMMUNITY REVENUES(1)
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Independent and assisted living communities (owned):
|
|
|
|
|
|
|
|
|
|
|
|
|
Private and other sources
|
|
|
99.5%
|
|
|
99.2%
|
|
|
99.5%
|
|
|
99.2%
|
Medicaid
|
|
|
0.5%
|
|
|
0.8%
|
|
|
0.5%
|
|
|
0.8%
|
Total
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent and assisted living communities (leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
Private and other sources
|
|
|
98.9%
|
|
|
99.2%
|
|
|
99.0%
|
|
|
99.1%
|
Medicaid
|
|
|
1.1%
|
|
|
0.8%
|
|
|
1.0%
|
|
|
0.9%
|
Total
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing care retirement communities (leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
Private and other sources
|
|
|
72.6%
|
|
|
72.1%
|
|
|
72.4%
|
|
|
72.0%
|
Medicare
|
|
|
20.7%
|
|
|
22.0%
|
|
|
21.0%
|
|
|
22.1%
|
Medicaid
|
|
|
6.7%
|
|
|
5.9%
|
|
|
6.6%
|
|
|
5.9%
|
Total
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Skilled nursing facilities (leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
Private and other sources
|
|
|
25.7%
|
|
|
25.4%
|
|
|
25.7%
|
|
|
25.0%
|
Medicare
|
|
|
23.5%
|
|
|
25.2%
|
|
|
24.4%
|
|
|
25.1%
|
Medicaid
|
|
|
50.8%
|
|
|
49.4%
|
|
|
49.9%
|
|
|
49.9%
|
Total
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total senior living communities (owned and leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
Private and other sources
|
|
|
77.6%
|
|
|
77.1%
|
|
|
77.4%
|
|
|
76.9%
|
Medicare
|
|
|
11.3%
|
|
|
12.2%
|
|
|
11.7%
|
|
|
12.3%
|
Medicaid
|
|
|
11.1%
|
|
|
10.7%
|
|
|
10.9%
|
|
|
10.8%
|
Total
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________________
|
(1)
|
|
Excludes data for managed communities and discontinued operations.
|
|
|
|
|
FIVE STAR QUALITY CARE, INC. SENIOR LIVING OTHER OPERATING
DATA(1)
|
|
|
|
Three months ended
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
Independent and assisted living communities (owned):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of communities (end of period)
|
|
|
|
31
|
|
|
|
|
31
|
|
|
|
|
31
|
|
|
|
|
31
|
|
|
|
|
31
|
|
Number of units (end of period)
|
|
|
|
3,064
|
|
|
|
|
3,064
|
|
|
|
|
3,061
|
|
|
|
|
3,061
|
|
|
|
|
3,061
|
|
Occupancy
|
|
|
|
87.1
|
%
|
|
|
|
87.9
|
%
|
|
|
|
88.7
|
%
|
|
|
|
88.2
|
%
|
|
|
|
87.6
|
%
|
Avg. monthly rate(2)
|
|
|
$
|
3,602
|
|
|
|
$
|
3,594
|
|
|
|
$
|
3,492
|
|
|
|
$
|
3,472
|
|
|
|
$
|
3,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent and assisted living communities (leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of communities (end of period)
|
|
|
|
119
|
|
|
|
|
119
|
|
|
|
|
119
|
|
|
|
|
119
|
|
|
|
|
119
|
|
Number of units (end of period)(3)
|
|
|
|
9,909
|
|
|
|
|
9,909
|
|
|
|
|
9,896
|
|
|
|
|
9,858
|
|
|
|
|
9,858
|
|
Occupancy(3)
|
|
|
|
87.7
|
%
|
|
|
|
88.0
|
%
|
|
|
|
89.3
|
%
|
|
|
|
89.5
|
%
|
|
|
|
88.9
|
%
|
Avg. monthly rate(2)
|
|
|
$
|
3,819
|
|
|
|
$
|
3,820
|
|
|
|
$
|
3,734
|
|
|
|
$
|
3,723
|
|
|
|
$
|
3,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CCRC communities (leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of communities (end of period)
|
|
|
|
31
|
|
|
|
|
31
|
|
|
|
|
31
|
|
|
|
|
31
|
|
|
|
|
31
|
|
Number of units (end of period)(4)
|
|
|
|
7,319
|
|
|
|
|
7,319
|
|
|
|
|
7,322
|
|
|
|
|
7,322
|
|
|
|
|
7,322
|
|
Occupancy
|
|
|
|
83.3
|
%
|
|
|
|
83.8
|
%
|
|
|
|
83.6
|
%
|
|
|
|
83.2
|
%
|
|
|
|
83.3
|
%
|
Avg. monthly rate(2)
|
|
|
$
|
5,384
|
|
|
|
$
|
5,450
|
|
|
|
$
|
5,317
|
|
|
|
$
|
5,304
|
|
|
|
$
|
5,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Skilled nursing facilities (leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of communities (end of period)
|
|
|
|
31
|
|
|
|
|
31
|
|
|
|
|
31
|
|
|
|
|
31
|
|
|
|
|
31
|
|
Number of units (end of period)(5)
|
|
|
|
2,807
|
|
|
|
|
2,807
|
|
|
|
|
2,822
|
|
|
|
|
2,822
|
|
|
|
|
2,822
|
|
Occupancy
|
|
|
|
78.4
|
%
|
|
|
|
78.6
|
%
|
|
|
|
79.3
|
%
|
|
|
|
79.3
|
%
|
|
|
|
79.7
|
%
|
Avg. monthly rate(2)
|
|
|
$
|
6,652
|
|
|
|
$
|
6,752
|
|
|
|
$
|
6,535
|
|
|
|
$
|
6,543
|
|
|
|
$
|
6,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total senior living communities (owned and leased):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of communities (end of period)
|
|
|
|
212
|
|
|
|
|
212
|
|
|
|
|
212
|
|
|
|
|
212
|
|
|
|
|
212
|
|
Number of units (end of period)(3)
|
|
|
|
23,099
|
|
|
|
|
23,099
|
|
|
|
|
23,101
|
|
|
|
|
23,063
|
|
|
|
|
23,063
|
|
Occupancy(3)
|
|
|
|
85.1
|
%
|
|
|
|
85.5
|
%
|
|
|
|
86.2
|
%
|
|
|
|
86.1
|
%
|
|
|
|
85.8
|
%
|
Avg. monthly rate(2)
|
|
|
$
|
4,591
|
|
|
|
$
|
4,623
|
|
|
|
$
|
4,503
|
|
|
|
$
|
4,492
|
|
|
|
$
|
4,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed communities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of communities (end of period)
|
|
|
|
60
|
|
|
|
|
46
|
|
|
|
|
46
|
|
|
|
|
44
|
|
|
|
|
44
|
|
Number of units (end of period)(6)
|
|
|
|
8,168
|
|
|
|
|
7,290
|
|
|
|
|
7,278
|
|
|
|
|
7,051
|
|
|
|
|
7,051
|
|
Occupancy
|
|
|
|
88.1
|
%
|
|
|
|
88.0
|
%
|
|
|
|
88.4
|
%
|
|
|
|
88.2
|
%
|
|
|
|
88.5
|
%
|
Avg. monthly rate(2)
|
|
|
$
|
4,215
|
|
|
|
$
|
4,300
|
|
|
|
$
|
4,162
|
|
|
|
$
|
4,152
|
|
|
|
$
|
4,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other ancillary services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rehabilitation and wellness inpatient clinics (end of period)
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
48
|
|
Rehabilitation and wellness outpatient clinics (end of period)
|
|
|
|
60
|
|
|
|
|
58
|
|
|
|
|
56
|
|
|
|
|
55
|
|
|
|
|
54
|
|
Home health communities served (end of period)
|
|
|
|
15
|
|
|
|
|
13
|
|
|
|
|
13
|
|
|
|
|
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 revenues divided by occupied
units during the period, and multiplying it by 30 days.
|
(3)
|
|
The number of units for the quarters ended September 30, 2014 and
June 30, 2014 excludes 38 living units in one senior living
community that was temporarily closed for a major renovation during
those time periods.
|
(4)
|
|
Includes 1,973 skilled nursing units in communities where assisted
living and independent living services are the predominant services
provided.
|
(5)
|
|
Includes 68 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)
|
|
Non-GAAP financial measures are financial measures that are not
determined in accordance with U.S. generally accepted accounting
principles, or GAAP. Five Star considers these Non-GAAP financial
measures to be meaningful disclosures because it believes that the
presentation of these Non-GAAP financial measures may help investors to
gain a better understanding of changes in its operating results, and may
also help investors who wish to make comparisons between Five Star and
other companies on both a GAAP and a non-GAAP basis. These Non-GAAP
financial measures are used by management to evaluate Five Star's
financial performance and for comparing Five Star's performance over
time and to the performance of its 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 (loss) from continuing operations, net
income (loss), cash flows from operating activities or any other
financial operating or performance or liquidity measure established by
GAAP. The following table presents the reconciliation of these Non-GAAP
financial measures to loss from continuing operations, the most directly
comparable financial measure under GAAP reported in Five Star's
condensed consolidated financial statements, for the three and six
months ended June 30, 2015 and 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Loss from continuing operations
|
|
$
|
(3,364)
|
|
$
|
(997)
|
|
$
|
(8,197)
|
|
$
|
(6,864)
|
Add: interest and other expense
|
|
|
1,137
|
|
|
1,261
|
|
|
2,491
|
|
|
2,479
|
Add: income tax expense (benefit)
|
|
|
280
|
|
|
(364)
|
|
|
584
|
|
|
(2,795)
|
Add: depreciation and amortization
|
|
|
8,123
|
|
|
7,975
|
|
|
16,218
|
|
|
15,251
|
Less: interest, dividend and other income
|
|
|
(243)
|
|
|
(213)
|
|
|
(463)
|
|
|
(409)
|
EBITDA
|
|
|
5,933
|
|
|
7,662
|
|
|
10,633
|
|
|
7,662
|
Add (less):
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs related to compliance assessment
|
|
|
1,856
|
(1)
|
|
-
|
|
|
6,561
|
(2)
|
|
-
|
Financial accounting restatement and remediation costs
|
|
|
18
|
|
|
1,113
|
|
|
228
|
|
|
4,143
|
Acquisition related costs
|
|
|
-
|
|
|
138
|
|
|
41
|
|
|
157
|
Gain on sale of investments in available for sale securities
|
|
|
(18)
|
|
|
(13)
|
|
|
(38)
|
|
|
(326)
|
Gain on early extinguishment of debt
|
|
|
(692)
|
|
|
-
|
|
|
(692)
|
|
|
-
|
Adjusted EBITDA
|
|
|
7,097
|
|
|
8,900
|
|
|
16,733
|
|
|
11,636
|
Add: Rent expense
|
|
|
49,657
|
|
|
49,203
|
|
|
99,285
|
|
|
98,277
|
Adjusted EBITDAR
|
|
$
|
56,754
|
|
$
|
58,103
|
|
$
|
116,018
|
|
$
|
109,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________________
|
(1)
|
|
Includes compliance costs and professional fees related to estimated
Medicare payments Five Star expects to repay.
|
(2)
|
|
Includes $2.4 million of reserve for the estimated Medicare payments
Five Star expects to repay and $4.2 million for estimated penalties,
compliance costs and professional fees related to these Medicare
repayments.
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150810005395/en/
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