Five Star Quality Care, Inc. Reports Second Quarter 2008 Results
____________________________________
Newton, MA (August 6, 2008). Five Star Quality Care, Inc. (AMEX: FVE) today announced its financial results for the quarter and six months ended June 30, 2008.
Second Quarter 2008 Financial Highlights:
| | § | Total revenues for the second quarter of 2008 increased 12.9% to $271.1 million from $240.1 million for the same period last year. |
| | § | Net income per share from continuing operations for the second quarter of 2008 was $0.13, basic and diluted, compared to $0.16 and $0.15, basic and diluted, respectively, for the same period last year. |
| | § | During the three months ended June 30, 2008, we recognized a $1.1 million loss, or $0.03 per share, basic and diluted, as a result of an unrealized loss on our holdings in auction rate securities. Without this loss, we would have reported net income per share from continuing operations, basic and diluted, in the three months ended June 30, 2008 of $0.16. We believe this adjusted net income per share from continuing operations is a meaningful disclosure that may help shareholders to better understand our results of operations for the three months ended June 30, 2008. Page 6 of the attached Supplemental Information contains a Reconciliation of Non-GAAP Financial Measures for all adjusted earnings per share amounts presented in this release. |
| | § | Net income per share from continuing operations in the three months ended June 30, 2007 included a gain from extinguishment of debt of $934,000, or $0.03 and $0.02 per share, basic and diluted, respectively. Without this gain, we would have reported net income per share from continuing operations for the second quarter of 2007 of $0.13, basic and diluted. We believe this adjusted net income per share from continuing operations is a meaningful disclosure that may help shareholders to better understand our results of operations for the three months ended June 30, 2007. |
Second Quarter 2008 Operating Highlights (senior living communities):
| | § | Senior living occupancy for the second quarter of 2008 was 88.6% compared with 90.0% for the same period a year ago. |
| | § | Senior living average daily rate for the second quarter of 2008 increased by 7.1% to $145.75, from $136.11 in the same period a year ago. |
| | § | The percentage of senior living revenue derived from residents’ private resources for the second quarter of 2008 increased to 68% from 66% for the same period a year ago. |
| | § | Wages and benefits as a percentage of senior living revenues for the second quarter of 2008 were 48.9% compared with 51.8% for the second quarter of 2007. |
| | § | For those senior living communities that we have operated continuously since April 1, 2007 (comparable communities), occupancy for the second quarter of 2008 was 88.7% compared with 90.0% in the second quarter of 2007. |
| | § | Comparable communities average daily rate for the second quarter of 2008 increased by 5.8%, to $144.09, from $136.21 in the same period a year ago. |
First Half 2008 Financial Highlights:
| | § | Total revenues for the six months ended June 30, 2008 increased 11.1% to $530.0 million from $477.2 million for the same period last year. |
| | § | Net income per share from continuing operations for the six months ended June 30, 2008 was $0.27 and $0.26, basic and diluted, respectively, compared to $0.34 and $0.32, basic and diluted, respectively, for the same period last year. |
| | § | During the six months ended June 30, 2008, we recognized a $4.4 million loss, or $0.14 and $0.11 per share, basic and diluted, respectively, as a result of an unrealized loss on our holdings in auction rate securities. Without this loss, we would have reported net income per share from continuing operations, basic and diluted, in the six months ended June 30, 2008 of $0.41 and $0.37, respectively. We believe this adjusted net income per share from continuing operations is a meaningful disclosure that may help shareholders to better understand our results of operations for the six months ended June 30, 2008. |
| | § | Net income per share from continuing operations in the six months ended June 30, 2007 included a gain from extinguishment of debt of $4.5 million, or $0.15 and $0.11 per share, basic and diluted, respectively. Without this gain, we would have reported net income per share from continuing operations for the six months ended June 30, 2007 of $0.19 and $0.21, basic and diluted, respectively. We believe this adjusted net income per share from continuing operations is a meaningful disclosure that may help shareholders to better understand our results of operations for the six months ended June 30, 2007. |
Conference Call:
On August 6, 2008 at 5:00 p.m. Eastern Standard Time, Bruce J. Mackey Jr., President and Chief Executive Officer, and Francis R. Murphy, III, Chief Financial Officer, will host a conference call to discuss the second quarter 2008 financial results. Following the company’s remarks, there will be a question and answer period.
The conference call telephone number is (888) 218-8176. Participants calling from outside the United States and Canada should dial (913) 312-0640. 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 8:00 p.m. Eastern Standard Time Wednesday, August 13, 2008. To hear the replay, dial (719) 457-0820. The replay pass code is 4007398.
A live audio webcast of the conference call will also be available in a listen only mode on the company’s web site at www.fivestarqualitycare.com. Participants wanting to access the webcast should visit the company’s web site about five minutes before the call. The archived webcast will be available for replay on the company’s web site for about one week after the call.
About Five Star Quality Care, Inc.:
Five Star Quality Care, Inc. is a healthcare services company which operates healthcare and senior living communities. As of today, Five Star owns, leases or operates 194 senior living communities with over 20,800 living units located in 30 states. These communities include independent living, assisted living and skilled nursing communities. Five Star also operates six institutional pharmacies, one of which provides mail order pharmaceuticals to the general public, and two rehabilitation hospitals. Five Star is headquartered in Newton, Massachusetts.
Supplemental Information, page 1 of 6
FIVE STAR QUALITY CARE, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(in thousands, except share data)
| | | Three months ended June 30, | | | Six months ended June 30, | |
| | | 2008 | | | 2007 | | | | 2008 | | | | |
| Revenues: | | | | | | | | | | |
| Senior living revenue | | $ | 228,442 | | | $ | 200,601 | | | $ | 445,369 | | | $ | 397,664 | |
| Hospital revenue | | | 24,421 | | | | 25,219 | | | | 49,165 | | | | 51,348 | |
| Pharmacy revenue | | | 18,281 | | | | 14,318 | | | | 35,487 | | | | 28,153 | |
| Total revenues | | | 271,144 | | | | 240,138 | | | | 530,021 | | | | 477,165 | |
| | | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | | |
| Senior living wages and benefits | | | 111,795 | | | | 103,901 | | | | 220,889 | | | | 205,836 | |
| Other senior living operating expenses | | | 58,668 | | | | 48,501 | | | | 112,089 | | | | 98,412 | |
| Hospital expenses | | | 22,615 | | | | 23,373 | | | | 45,207 | | | | 46,997 | |
| Pharmacy expenses | | | 17,347 | | | | 13,524 | | | | 33,550 | | | | 27,115 | |
| Rent expense | | | 39,275 | | | | 31,963 | | | | 74,719 | | | | 64,228 | |
| General and administrative expenses | | | 11,722 | | | | 10,887 | | | | 22,855 | | | | 20,946 | |
| Depreciation and amortization | | | 3,647 | | | | 3,238 | | | | 7,282 | | | | 6,389 | |
| Total operating expenses | | | 265,069 | | | | 235,387 | | | | 516,591 | | | | 469,923 | |
| | | | | | | | | | | | | | | | | | |
| Operating income | | | 6,075 | | | | 4,751 | | | | 13,430 | | | | 7,242 | |
| Interest and other income | | | 1,302 | | | | 1,410 | | | | 3,796 | | | | 2,830 | |
| Interest expense | | | (1,600 | ) | | | (1,677 | ) | | | (3,194 | ) | | | (3,455 | ) |
| Unrealized loss on investments in trading securities | | | (1,096 | ) | | | - | | | | (4,366 | ) | | | - | |
| Gain on extinguishment of debt | | | - | | | | 934 | | | | - | | | | 4,491 | |
| | | | | | | | | | | | | | | | | | |
| Income from continuing operations before income taxes | | | 4,681 | | | | 5,418 | | | | 9,666 | | | | 11,108 | |
| Provision for income taxes | | | (444 | ) | | | (275 | ) | | | (1,010 | ) | | | (483 | ) |
| Income from continuing operations | | | 4,237 | | | | 5,143 | | | | 8,656 | | | | 10,625 | |
| Loss from discontinued operations | | | (748 | ) | | | (1,063 | ) | | | (3,550 | ) | | | (1,781 | ) |
| | | | | | | | | | | | | | | | | | |
| Net income | | $ | 3,489 | | | $ | 4,080 | | | $ | 5,106 | | | $ | 8,844 | |
| | | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding - basic | | | 31,831 | | | | 31,694 | | | | 31,825 | | | | 31,689 | |
| | | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding - diluted | | | 41,562 | | | | 41,425 | | | | 41,556 | | | | 41,420 | |
| | | | | | | | | | | | | | | | | | |
| Basic income per share from: | | | | | | | | | | | | | | | | | |
| Continuing operations | | $ | 0.13 | | | $ | 0.16 | | | $ | 0.27 | | | $ | 0.34 | |
| Discontinued operations | | | (0.02 | ) | | | (0.03 | ) | | | (0.11 | ) | | | (0.06 | ) |
| Net income per share | | $ | 0.11 | | | $ | 0.13 | | | $ | 0.16 | | | $ | 0.28 | |
| | | | | | | | | | | | | | | | | | |
| Diluted income per share from: | | | | | | | | | | | | | | | | | |
| Continuing operations | | $ | 0.13 | | | $ | 0.15 | | | $ | 0.26 | | | $ | 0.32 | |
| Discontinued operations | | | (0.02 | ) | | | (0.02 | ) | | | (0.09 | ) | | | (0.04 | ) |
| Net income per share | | $ | 0.11 | | | $ | 0.13 | | | $ | 0.17 | | | $ | 0.28 | |
| | | | | | | | | | | | | | | | | | |
EBITDA(1): | | | | | | | | | | | | | | | | | |
| Income from continuing operations: | | $ | 4,237 | | | $ | 5,143 | | | $ | 8,656 | | | $ | 10,625 | |
| Add: income taxes | | | 444 | | | | 275 | | | | 1,010 | | | | 483 | |
| Add: depreciation and amortization | | | 3,647 | | | | 3,238 | | | | 7,282 | | | | 6,389 | |
| Add: interest expense | | | 1,600 | | | | 1,677 | | | | 3,194 | | | | 3,455 | |
| Less: interest and other income | | | (1,302 | ) | | | (1,410 | ) | | | (3,796 | ) | | | (2,830 | ) |
| EBITDA | | $ | 8,626 | | | $ | 8,923 | | | $ | 16,346 | | | $ | 18,122 | |
| (1) | We consider earnings before interest, taxes, depreciation and amortization, or EBITDA, to be a meaningful measure of our operating performance because it is useful in measuring our ability to service debt, fund capital expenditures and expand our business. We believe that EBITDA is a meaningful disclosure that may help shareholders to better understand our financial performance, including comparing our performance to similar numbers reported by other companies, however, EBITDA as presented may not always be comparable to amounts calculated by other companies. This information should not be considered as an alternative to net income, income from continuing operations, operating income, cash flow from operations, or any other operating performance or liquidity measure established by generally accepted accounting principles (GAAP) in the United States. We have not made any adjustments to reported EBITDA for the three and six months ended June 30, 2008 and 2007, respectively, relating to the unrealized loss on investments in trading securities or the gain on extinguishment of debt shown in the reconciliations discussed on page 6 of the supplemental information in this earnings release. |
Supplemental Information, page 2 of 6
FIVE STAR QUALITY CARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(in thousands, except share data)
| | | | |
| | | June 30, | | | December 31, | |
| | | 2008 | | | 2007 | |
| Assets | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 45,884 | | | $ | 30,999 | |
| Accounts receivable, net of reserve | | | 60,998 | | | | 58,803 | |
| Prepaid expenses and other current assets | | | 21,641 | | | | 23,782 | |
| Investment securities: | | | | | | | | |
| Investments in trading securities | | | - | | | | 61,800 | |
| Investments in available for sale securities | | | 6,892 | | | | 7,455 | |
| Assets of discontinued operations | | | 2,040 | | | | 3,178 | |
| Total current assets | | | 137,455 | | | | 186,017 | |
| | | | | | | | | |
| Long term assets: | | | | | | | | |
| Property and equipment, net | | | 132,444 | | | | 131,705 | |
| Investments in trading securities | | | 70,484 | | | | - | |
| Other long term assets | | | 40,462 | | | | 42,732 | |
| Total assets | | $ | 380,845 | | | $ | 360,454 | |
| | | | | | | | | |
| Liabilities and Shareholders’ Equity | | | | | | | | |
| Current liabilities | | $ | 116,315 | | | $ | 104,063 | |
| Long term liabilities | | | 30,774 | | | | 27,259 | |
| Mortgage notes payable, long term | | | 15,706 | | | | 15,810 | |
| Convertible senior notes | | | 126,500 | | | | 126,500 | |
Shareholders’ equity (31,844,394 and 31,818,144 shares issued and outstanding at June 30, 2008 and December 31, 2007) | | | 91,550 | | | | 86,822 | |
| Total liabilities and shareholders’ equity | | $ | 380,845 | | | $ | 360,454 | |
Supplemental Information, page 3 of 6
FIVE STAR QUALITY CARE, INC.
SENIOR LIVING COMMUNITY OPERATING DATA(1)
(dollars in thousands, except average daily rate)
| | | Three months ended June 30, | | | Six months ended June 30, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| | | | | | | | | | | | | |
| Number of communities (end of period) | | | 182 | | | | 161 | | | | 182 | | | | 161 | |
| Number of living units (end of period) | | | 19,814 | | | | 18,007 | | | | 19,814 | | | | 18,007 | |
| | | | | | | | | | | | | | | | | |
| Occupancy | | | 88.6 | % | | | 90.0 | % | | | 89.2 | % | | | 90.1 | % |
| Average daily rate (ADR) | | $ | 145.75 | | | $ | 136.11 | | | $ | 143.23 | | | $ | 135.80 | |
| ADR % growth | | | 7.1 | % | | | 2.6 | % | | | 5.5 | % | | | 2.5 | % |
| | | | | | | | | | | | | | | | | |
| Percent breakdown of net senior living revenues: | | | | | | | | | | | | | | | | |
| Medicare | | | 15 | % | | | 16 | % | | | 16 | % | | | 16 | % |
| Medicaid | | | 17 | % | | | 18 | % | | | 17 | % | | | 18 | % |
| Private | | | 68 | % | | | 66 | % | | | 67 | % | | | 66 | % |
| Total | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % |
| | | | | | | | | | | | | | | | | |
| Net senior living revenues | | $ | 228,442 | | | $ | 200,601 | | | $ | 445,369 | | | $ | 397,664 | |
| Net senior living revenues % growth | | | 13.9 | % | | | 9.8 | % | | | 12.0 | % | | | 9.4 | % |
| | | | | | | | | | | | | | | | | |
Community expenses (2) | | $ | 170,463 | | | $ | 152,402 | | | $ | 332,978 | | | $ | 304,248 | |
Community expenses (2) as a % of net senior living revenues | | | 74.6 | % | | | 76.0 | % | | | 74.8 | % | | | 76.5 | % |
Community expenses (2) % growth | | | 11.9 | % | | | 8.6 | % | | | 9.4 | % | | | 8.8 | % |
(1) | | Excludes data for pharmacy and hospital operations and senior living discontinued operations (except for the number of communities and living units). |
| | Community expenses equal senior living wages and benefits and other senior living operating expenses as shown on our consolidated statement of income. |
Supplemental Information, page 4 of 6
FIVE STAR QUALITY CARE, INC.
COMPARABLE SENIOR LIVING COMMUNITY OPERATING DATA (1)
(dollars in thousands, except average daily rate)
| | | Three months ended June 30, (2) | | | Six months ended June 30, (3) | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| | | | | | | | | | | | | |
| Number of communities (end of period) | | | 162 | | | | 162 | | | | 162 | | | | 162 | |
| Number of living units (end of period) | | | 18,016 | | | | 18,016 | | | | 18,016 | | | | 18,016 | |
| | | | | | | | | | | | | | | | | |
| Occupancy | | | 88.7 | % | | | 90.0 | % | | | 89.2 | % | | | 90.1 | % |
| Average daily rate (ADR) | | $ | 144.09 | | | $ | 136.21 | | | $ | 143.83 | | | $ | 135.85 | |
| ADR % growth | | | 5.8 | % | | | n/a | | | | 5.9 | % | | | n/a | |
| | | | | | | | | | | | | | | | | |
| Percent breakdown of net senior living revenues: | | | | | | | | | | | | | | | | |
| Medicare | | | 16 | % | | | 16 | % | | | 16 | % | | | 16 | % |
| Medicaid | | | 18 | % | | | 18 | % | | | 18 | % | | | 18 | % |
| Private | | | 66 | % | | | 66 | % | | | 66 | % | | | 66 | % |
| Total | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % |
| | | | | | | | | | | | | | | | | |
| Senior living revenues | | $ | 207,586 | | | $ | 200,329 | | | $ | 416,690 | | | $ | 397,392 | |
| Senior living revenues % growth | | | 3.6 | % | | | n/a | | | | 4.9 | % | | | n/a | |
| | | | | | | | | | | | | | | | | |
Community expenses (4) | | $ | 155,451 | | | $ | 152,207 | | | $ | 311,522 | | | $ | 304,053 | |
Community expenses (4) as a % of net senior living revenues | | | 74.9 | % | | | 76.0 | % | | | 74.8 | % | | | 76.5 | % |
Community expenses (4) % growth | | | 2.1 | % | | | n/a | | | | 2.5 | % | | | n/a | |
| | (1) | Excludes data for pharmacy and hospital operations and senior living discontinued operations (except for the number of communities and living units). |
| | (2) | Communities that we operated continuously since April 1, 2007. |
| | (3) | Communities that we operated continuously since January 1, 2007. |
| | (4) | Community expenses equal senior living wages and benefits and other senior living operating expenses as shown on our consolidated statement of income. |
Supplemental Information, page 5 of 6
FIVE STAR QUALITY CARE, INC.
OTHER OPERATING DATA (1)
(dollars in thousands, except average daily rate)
| | | Three months ended June 30, | | | Six months ended June 30, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
Number of communities (2) (end of period): | | | | | | | | | | | | |
| Assisted and independent living communities, owned | | | 13 | | | | 13 | | | | 13 | | | | 13 | |
| Assisted and independent living communities, leased | | | 120 | | | | 99 | | | | 120 | | | | 99 | |
| Total number of assisted and independent living communities | | | 133 | | | | 112 | | | | 133 | | | | 112 | |
| | | | | | | | | | | | | | | | | |
| Skilled nursing communities, owned | | | 2 | | | | 2 | | | | 2 | | | | 2 | |
| Skilled nursing communities, leased | | | 47 | | | | 47 | | | | 47 | | | | 47 | |
| Total number of skilled nursing communities | | | 49 | | | | 49 | | | | 49 | | | | 49 | |
| | | | | | | | | | | | | | | | | |
| Total number of communities | | | 182 | | | | 161 | | | | 182 | | | | 161 | |
| | | | | | | | | | | | | | | | | |
| Number of living units (end of period): | | | | | | | | | | | | | | | | |
| Assisted and independent living communities, owned | | | 1,061 | | | | 1,070 | | | | 1,061 | | | | 1,070 | |
Assisted and independent living communities, leased (3) | | | 14,344 | | | | 12,527 | | | | 14,344 | | | | 12,527 | |
| Total number of assisted and independent living units | | | 15,405 | | | | 13,597 | | | | 15,405 | | | | 13,597 | |
| | | | | | | | | | | | | | | | | |
| Skilled nursing communities, owned | | | 271 | | | | 273 | | | | 271 | | | | 273 | |
Skilled nursing communities, leased (4) | | | 4,138 | | | | 4,137 | | | | 4,138 | | | | 4,137 | |
| Total number of skilled nursing units | | | 4,409 | | | | 4,410 | | | | 4,409 | | | | 4,410 | |
| | | | | | | | | | | | | | | | | |
| Total number of living units | | | 19,814 | | | | 18,007 | | | | 19,814 | | | | 18,007 | |
| | | | | | | | | | | | | | | | | |
| Rehabilitation hospital units | | | 321 | | | | 321 | | | | 321 | | | | 321 | |
| | | | | | | | | | | | | | | | | |
| Senior living revenues: | | | | | | | | | | | | | | | | |
| Assisted and independent living communities | | $ | 160,836 | | | $ | 136,491 | | | $ | 310,158 | | | $ | 270,640 | |
| Skilled nursing communities | | | 66,037 | | | | 63,014 | | | | 131,633 | | | | 124,502 | |
Other (5) | | | 1,569 | | | | 1,096 | | | | 3,578 | | | | 2,522 | |
| Total senior living revenues | | $ | 228,442 | | | $ | 200,601 | | | $ | 445,369 | | | $ | 397,664 | |
| | | | | | | | | | | | | | | | | |
| Assisted and independent living communities occupancy | | | 89.1 | % | | | 90.9 | % | | | 89.9 | % | | | 90.9 | % |
| Assisted and independent living communities ADR | | $ | 131.92 | | | $ | 121.55 | | | $ | 128.61 | | | $ | 121.52 | |
| Assisted and independent living communities ADR % growth | | | 8.5 | % | | | 1.3 | % | | | 5.8 | % | | | 1.6 | % |
| | | | | | | | | | | | | | | | | |
| Skilled nursing communities occupancy | | | 86.8 | % | | | 87.4 | % | | | 87.0 | % | | | 87.6 | % |
| Skilled nursing communities ADR | | $ | 189.70 | | | $ | 179.59 | | | $ | 188.64 | | | $ | 178.13 | |
| Skilled nursing communities ADR % growth | | | 5.6 | % | | | 6.7 | % | | | 5.9 | % | | | 5.8 | % |
| | | | | | | | | | | | | | | | | |
| Rehabilitation hospital occupancy | | | 61.9 | % | | | 62.8 | % | | | 63.8 | % | | | 64.0 | % |
(1) | Excludes data for pharmacy operations and senior living discontinued operations (except for the number of communities and living units). |
| (2) | Communities are categorized by the type of living units which constitute a majority (or plurality) of the total living units at the community. |
| (3) | Includes 1,867 and 1,654 skilled nursing units in communities where assisted living and independent living services are the predominant services provided for the three and six months ended June 30, 2008 and 2007, respectively. |
| (4) | Includes 66 and 95 assisted living and independent living units in communities where skilled nursing services are the predominant services provided for the three and six months ended June 30, 2008 and 2007, respectively. |
| (5) | Other senior living revenues relates primarily to rehabilitation and other specialty service revenues provided at residential facilities and does not include revenues from pharmacy or hospital operations. |
Supplemental Information, page 6 of 6
FIVE STAR QUALITY CARE, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
Reconciliation of Income from Continuing Operations to Income from Continuing Operations Excluding the Unrealized Loss on Investments in Trading Securities for the three and six months ended June 30, 2008:
| | | For the three months ended | | | For the six months ended | |
| | | June 30, 2008 | | | June 30, 2008 | |
| | | | Amount | | | | Per Share Basic | | | | Per Share Diluted | | | | Amount | | | | Per Share Basic | | | | Per Share Diluted | |
| Income from continuing operations | | $ | 4,237 | | | $ | 0.13 | | | $ | 0.13 | | | $ | 8,656 | | | $ | 0.27 | | | $ | 0.26 | |
| Add: Unrealized loss on investments in trading securities | | | 1,096 | | | | 0.03 | | | | 0.03 | | | | 4,366 | | | | 0.14 | | | | 0.11 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations excluding the unrealized loss on investments in trading securities(1) | | $ | 5,333 | | | $ | 0.16 | | | $ | 0.16 | | | $ | 13,022 | | | $ | 0.41 | | | $ | 0.37 | |
______________________________________________________________________________________
Reconciliation of Income from Continuing Operations to Income from Continuing Operations Excluding Gain on Extinguishment of Debt for the three and six months ended June 30, 2007:
| | | For the three months ended | | | For the six months ended | |
| | | June 30, 2007 | | | June 30, 2007 | |
| | | | Amount | | | | Per Share Basic | | | | Per Share Diluted | | | | Amount | | | | Per Share Basic | | | | Per Share Diluted | |
| Income from continuing operations | | $ | 5,143 | | | $ | 0.16 | | | $ | 0.15 | | | $ | 10,625 | | | $ | 0.34 | | | $ | 0.32 | |
| Less: Gain on extinguishment of debt | | | (934 | ) | | | (0.03 | ) | | | (0.02 | ) | | | (4,491 | ) | | | (0.15 | ) | | | (0.11 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations excluding gain on extinguishment of debt (1) | | $ | 4,209 | | | $ | 0.13 | | | $ | 0.13 | | | $ | 6,134 | | | $ | 0.19 | | | $ | 0.21 | |
| (1) | We believe this adjusted amount is a meaningful disclosure that may help shareholders to better understand our results of operations for the three and six months ended June 30, 2008 and 2007. This information should not be considered as an alternative to income from continuing operations or income from continuing operations per share or any other operating or performance measure established by GAAP. |
