FOR IMMEDIATE RELEASE
| Contact: Evrett W. Benton,
President or Bruce J. Mackey Jr.,
Treasurer at 617-796-8387
www.fivestarqualitycare.com |
Five Star Quality Care, Inc. Announces Financial Results for the Quarter Ended March 31, 2004
Newton, MA (May 10, 2004). Five Star Quality Care, Inc. (AMEX: FVE) today announced its financial results for the quarter ended March 31, 2004, compared to the same period 2003, as follows
(dollars in thousands, except per share amounts):
| Three Months Ended
March 31,
|
| 2004 | 2003 |
|
| Total Revenues | | $151,491 | | $141,672 | |
| Total Expenses | | 150,533 | | 143,579 | |
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| |
| |
| Income (loss) from Continuing Operations | | 958 | | (1,907 | ) |
| Loss from Discontinued Operations | | (451 | ) | (348 | ) |
|
| |
| |
| Net Income (loss) | | $507 | | $(2,255 | ) |
|
| |
| |
|
| Average Shares Outstanding | | 8,514 | | 8,452 | |
|
| |
| |
|
Net Income (loss) per Share from
Continuing Operations | | $0.11 | | $(0.23 | ) |
| Net Income (loss) per Share | | $0.06 | | $(0.27 | ) |
Five Star Quality Care, Inc. is an operator of senior living communities. FVE owns and leases 100 communities with 13,832 living units located in 25 states. These communities include independent and assisted living communities and skilled nursing facilities. FVE is headquartered in Newton, Massachusetts.
(end)
Supplemental information, page 1 of 3
Five Star Quality Care, Inc.
Condensed Consolidated Statement Of Operations
(amounts in thousands, except per share data)
| Quarter Ended March 31, 2004
|
| 2004 | 2003 |
Revenues:
Net revenues from residents | | $147,974 | | $141,597 | |
| Pharmacy revenue | | 2,167 | | -- | |
| Interest and other income(1) | | 1,350 | | 75 | |
|
| |
| |
| Total revenues | | 151,491 | | 141,672 | |
|
Expenses:
Wages and benefits | | 81,426 | | 77,574 | |
| Other operating expenses | | 38,110 | | 37,296 | |
| Management fee to Sunrise Senior Living Services, Inc. | | 4,633 | | 4,306 | |
| Rent to Senior Housing Properties Trust | | 20,127 | | 18,955 | |
| General and administrative | | 5,118 | | 4,343 | |
| Depreciation and amortization | | 973 | | 819 | |
| Interest expense | | 146 | | 175 | |
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| |
| |
| Total expenses | | 150,533 | | 143,579 | |
|
| |
| |
|
| Income (loss) from continuing operations before income taxes | | 958 | | (1,907 | ) |
|
| Provision for income taxes | | -- | | -- | |
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| |
| |
|
| Income (loss) from continuing operations | | 958 | | (1,907 | ) |
|
| Loss from discontinued operations | | (451 | ) | (348 | ) |
|
| |
| |
|
| Net income (loss) | | $507 | | $(2,255 | ) |
|
| |
| |
|
| Weighted average shares outstanding | | 8,514 | | 8,452 | |
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| |
|
Income (loss) per share from:
Continuing operations | | $0.11 | | $(0.23 | ) |
| Discontinued operations | | (0.05 | ) | (0.04 | ) |
|
| |
| |
| Net income (loss) per share | | $0.06 | | $(0.27 | ) |
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| |
| (1) | | On January 7, 2004, FVE and Senior Housing Properties Trust, or Senior Housing settled then pending litigation with Marriott International Inc., or Marriott, and Marriott Senior Living Services, Inc., or MSLS. Under the terms of the settlement FVE and Senior Housing, and Marriott and MSLS, agreed to dismiss all claims and counterclaims asserted in the litigation. Also under the terms of the settlement, Marriott paid to FVE and Senior Housing $1,250 each. This settlement is included in other income for the quarter ended March 31, 2004. |
Supplemental information, page 2 of 3
Five Star Quality Care, Inc.
Condensed Consolidated Balance Sheet Data
(in thousands, except per share data)
| March 31, 2004
| | Decemer 31, 2003
|
Assets
Current assets:
Cash and cash equivalents | $21,969 | | $21,236 |
| Accounts receivable, net of reserve | 31,613 | | 30,581 |
| Prepaid expenses and other current assets | 12,135 | | 7,871 |
|
| |
|
| Total current assets | 65,717 | | 59,688 |
|
| Property and equipment, net | 31,717 | | 55,484 |
| Other long term assets | 35,793 | | 32,198 |
|
| |
|
| Total assets | $133,227 | | $147,370 |
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Liabilities and Shareholders' Equity
Current liabilities | $49,488 | | $58,145 |
| Long term liabilities(2) | 18,798 | | 18,417 |
| Mortgage payable (long term) | -- | | 6,381 |
| Shareholders' equity: 8,514,634 common shares outstanding as of March 31, 2004 | 64,941 | | 64,427 |
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| |
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| Total liabilities and shareholders' equity | $133,227 | | $147,370 |
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| (2) | | Long term liabilities principally include obligations to residents for deposits and prepaid services at the communities which are managed for FVE 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
Five Star Quality Care, Inc.
As Reported (includes information from the dates operations by FVE commenced):
| Three months ended March 31
|
| 2004 | 2003 | % Change |
|
| Revenues from residents (in 000s) | $147,974 | $141,597 | +5% |
| Facility expenses (in 000s) | $119,536 | $114,870 | +4% |
| Total expenses (in 000s) | $150,533 | $143,579 | +5% |
| No. of facilities (end of period) | 100 | 97 | +3 |
| No. of living units (end of period) | 13,832 | 13,689 | +1% |
| Occupancy | 88% | 90% | -2% |
| Average daily rate | $135 | $128 | +5% |
| Revenue per day per available unit | $119 | $114 | +4% |
| Percent of revenue from Medicare / Medicaid | 40% | 40% | -- |
| Percent of revenues from private / other resources | 60% | 60% | -- |
"Same Store" Facilities (facilities FVE operated continuously since 1/1/03):
| Three months ended March 31
|
| 2004 | 2003 | % Change |
|
| Revenues from residents (in 000s) | $147,056 | $141,597 | +4% |
| Facility expenses (in 000s) | $116,743 | $114,870 | +2% |
| No. of facilities (end of period) | 97 | 97 | -- |
| No. of living units (end of period) | 13,689 | 13,689 | -- |
| Occupancy | 88% | 90% | -2% |
| Average daily rate | $134 | $128 | +5% |
| Revenue per day per available unit | $118 | $114 | +4% |
| Percent of revenues from Medicare / Medicaid | 40% | 40% | -- |
| Percent of revenues from private / other resources | 60% | 60% | -- |
