EXHIBIT 99.1
| FOR IMMEDIATE RELEASE | Contact: Evrett Benton, President or Bruce Mackey, Treasurer (617) 796-8387 www.fivestarqualitycare.com |
Five Star Quality Care, Inc. Announces Financial Results For The Quarter
And Year Ended December 31, 2003
Newton, MA (March 26, 2004): Five Star Quality Care, Inc. (AMEX: FVE) today announced its financial results for the quarter and year ended December 31, 2003, compared to the same periods in 2002, as follows (in thousands except per share amounts):
| Three Months Ended December 31, | Year Ended December 31, | |||
|---|---|---|---|---|
| 2003 | 2002 | 2003 | 2002 | |
| Total revenues | $ 146,403 | $ 138,450 | $ 576,215 | $ 519,403 |
| Total expenses | 148,803 | 139,174 | 583,782 | 529,662 |
| Loss from continuing operations | $ (2,400) | $ (724) | $ (7,567) | $(10,259) |
| Income (loss) from discontinued operations | 138 | 755 | (372) | (2,915) |
| Net income (loss) | $ (2,262) | $ 31 | $ (7,939) | $(13,174) |
| Weighted average shares outstanding | 8,514 | 7,556 | 8,482 | 7,556 |
| Basic and diluted loss per share | ||||
| from continuing operations | $ (0.28) | $ (0.10) | $ (0.89) | $ (1.36) |
| Net income (loss) per share | $ (0.27) | $ 0.00 | $ (0.94) | $ (1.74) |
Five Star Quality Care, Inc., is a healthcare services company which operates senior living communities. FVE owns and leases 101 communities with 14,035 separate living units located in 25 states. These communities include independent living, assisted living and skilled nursing facilities. FVE is headquartered in Newton, Massachusetts.
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Supplemental Information, page 1 of 3
FIVE STAR QUALITY CARE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(amounts in thousands, except per share data)
| 3 Months ended December 31, | Year ended December 31, | |||
|---|---|---|---|---|
| 2003 | 2002 | 2003 | 2002 | |
| Revenues: | ||||
| Net revenues from residents | $ 146,375 | $ 138,349 | $ 575,986 | $ 519,106 |
| Interest and other income | 28 | 101 | 229 | 297 |
| Total revenues | 146,403 | 138,450 | 576,215 | 519,403 |
| Expenses: | ||||
| Wages and benefits | 82,558 | 73,003 | 315,615 | 274,248 |
| Other operating expenses | 35,718 | 38,216 | 151,013 | 143,053 |
| Management fee to Sunrise Senior Living Services, Inc. | 4,401 | 4,289 | 17,391 | 16,643 |
| Rent to Senior Housing Properties Trust | 20,137 | 18,706 | 77,266 | 75,210 |
| General and administrative | 4,613 | 4,167 | 17,745 | 15,415 |
| Depreciation and amortization | 1,037 | 595 | 3,588 | 1,794 |
| Interest expense | 339 | 198 | 1,164 | 198 |
| Impairment of assets | -- | -- | -- | 150 |
| Restructuring costs | -- | -- | -- | 122 |
| Spin off and merger expense, non recurring | -- | -- | -- | 2,829 |
| Total expenses | 148,803 | 139,174 | 583,782 | 529,662 |
| Loss from continuing operations | (2,400) | (724) | (7,567) | (10,259) |
| Income (loss) from discontinued operations | 138 | 755 | (372) | (2,915) |
| Net income (loss) | $ (2,262) | $ 31 | $ (7,939) | $(13,174) |
| Weighted average shares outstanding | 8,514 | 7,556 | 8,482 | 7,556 |
| Basic and diluted income (loss) per share from: | ||||
| Continuing operations | $ (0.28) | $ (0.10) | $ (0.89) | $ (1.36) |
| Discontinued operations | 0.01 | 0.10 | (0.05) | (0.38) |
| Net income (loss) per share | $ (0.27) | $ 0.00 | $ (0.94) | $ (1.74) |
Supplemental Information, page 2 of 3
| Condensed Balance Sheet Data (amounts in thousands, except share data) | ||
|---|---|---|
| December 31, | ||
| 2003 | 2002 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 21,236 | $ 10,270 |
| Accounts receivable, net of reserve | 30,581 | 33,877 |
| Prepaid expenses and other current assets | 7,871 | 4,162 |
| Total current assets | 59,688 | 48,309 |
| Property and equipment, net | 55,484 | 70,329 |
| Other long term assets | 32,198 | 14,559 |
| Total assets | $147,370 | $133,197 |
| Liabilities and Shareholders' Equity | ||
| Current liabilities | $ 58,145 | $ 34,445 |
| Long term liabilities(1) | 18,417 | 17,723 |
| Mortgage payable, long term | 6,381 | 15,982 |
| Shareholders' equity: 8,513,634 and 8,452,634 | ||
| Shares issued and outstanding at Dec 31, 2003 and 2002 respectively | 64,427 | 65,047 |
| Total liabilities and shareholders' equity | $147,370 | $133,197 |
| (1) | Long term liabilities principally include obligations to residents for deposits and prepaid services at the communities which are managed for us by Sunrise Senior Living Services, Inc. The non-refundable amounts of these prepayments are amortized into revenues over the period during which the service obligations are expected to be satisfied. |
Supplemental Information, page 3 of 3
| Three months ended 12/31 | Year ended 12/31 | |||||
|---|---|---|---|---|---|---|
| 2003 | 2002 | % Change | 2003 | 2002 | % Change | |
| Revenues from residents (in 000s) | $146,375 | $138,349 | +6% | $575,986 | $519,106 | +11% |
| Facility expenses (in 000s) | $118,276 | $111,219 | +6% | $466,628 | $417,301 | +12% |
| Total expenses (in 000s) | $148,803 | $139,174 | +7% | $583,782 | $529,662 | +10% |
| No. of communities (end of period) | 101 | 105 | -4 | 101 | 105 | -4 |
| No. of living units (end of period) | 14,035 | 13,962 | +73 | 14,035 | 13,962 | +73 |
| Occupancy | 89% | 90% | -1% pt | 88% | 89% | -1% pt |
| Average daily rate | $ 127 | $ 120 | +6% | $ 126 | $ 114 | +11% |
| Revenue per day per | ||||||
| available unit | $ 113 | $ 108 | +5% | $ 112 | $ 102 | +10% |
| Percent of revenues from | ||||||
| Medicare and Medicaid | 40% | 42% | -2% pts | 39% | 39% | -- |
| Percent of revenues from | ||||||
| private and other sources | 60% | 58% | +2% pts | 61% | 61% | -- |
| Three months ended 12/31 | Year ended 12/31 | |||||
|---|---|---|---|---|---|---|
| 2003 | 2002 | % Change | 2003 | 2002 | % Change | |
| Revenues from residents (in 000s) | $137,556 | $133,330 | +3% | $236,667 | $227,446 | +4% |
| Facility expenses (in 000s) | $111,521 | $107,284 | +4% | $215,793 | $210,645 | +2% |
| No. of communities (end of period) | 89 | 89 | -- | 53 | 53 | -- |
| No. of living units (end of period) | 13,145 | 13,145 | -- | 4,868 | 4,868 | -- |
| Occupancy | 88% | 88% | -- | 90% | 89% | +1% pt |
| Average daily rate | $ 129 | $ 125 | +3% | $ 148 | $ 144 | +3% |
| Revenue per day per | ||||||
| available unit | $ 113 | $ 110 | +3% | $ 133 | $ 128 | +4% |
| Percent of revenues from | ||||||
| Medicare and Medicaid | 80% | 79% | +1% pt | 79% | 78% | +1% pt |
| Percent of revenues from | ||||||
| private and other sources | 20% | 21% | -1% pt | 21% | 22% | -1% pt |
