Exhibit 99.1
FOR IMMEDIATE RELEASE |
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| 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 September 30, 2003 |
Newton, MA (November 12, 2003). Five Star Quality Care, Inc. (AMEX: FVE) today announced its financial results for the periods ended September 30, 2003, compared to the same periods in 2002, as follows
(dollars in thousands, except per share amounts):
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| Three Months Ended |
| Nine Months Ended |
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| 2003 |
| 2002 |
| 2003 |
| 2002 |
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Total Revenues |
| $ | 147,304 |
| $ | 132,344 |
| $ | 432,160 |
| $ | 380,886 |
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Total Expenses |
| 148,353 |
| 134,025 |
| 437,451 |
| 392,022 |
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Loss from Continuing Operations |
| $ | (1,049 | ) | $ | (1,681 | ) | $ | (5,291 | ) | $ | (11,136 | ) |
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Loss from Discontinued Operations |
| (117 | ) | (825 | ) | (386 | ) | (2,070 | ) | ||||
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Net Loss |
| $ | (1,166 | ) | $ | (2,506 | ) | $ | (5,677 | ) | $ | (13,206 | ) |
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Average Shares Outstanding |
| 8,505 |
| 8,453 |
| 8,471 |
| 7,254 |
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Net Loss per Share from Continuing Operations |
| $ | (0.12 | ) | $ | (0.20 | ) | $ | (0.62 | ) | $ | (1.54 | ) |
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Net Loss per Share |
| $ | (0.14 | ) | $ | (0.30 | ) | $ | (0.67 | ) | $ | (1.83 | ) |
Five Star Quality Care, Inc. is an operator of senior living communities. FVE owns and leases 106 communities with 14,081 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
(unaudited)
(dollars in thousands, except per share data)
Three Months ended | Nine Months Ended | ||||||||||||
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| 2003 |
| 2002 |
| 2003 |
| 2002 |
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Revenues: |
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Net revenues from residents |
| $ | 147,240 |
| $ | 132,296 |
| $ | 431,959 |
| $ | 380,656 |
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Interest and other income |
| 64 |
| 48 |
| 201 |
| 230 |
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Total revenues |
| 147,304 |
| 132,344 |
| 432,160 |
| 380,886 |
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Expenses: |
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Wages and benefits |
| 78,591 |
| 69,015 |
| 234,657 |
| 193,445 |
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Other operating expenses |
| 40,357 |
| 36,233 |
| 115,763 |
| 112,540 |
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Management fee to Sunrise Senior Living, Inc. |
| 4,398 |
| 4,943 |
| 12,990 |
| 12,354 |
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Rent to Senior Housing Properties Trust |
| 19,359 |
| 19,687 |
| 57,403 |
| 56,596 |
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General and administrative |
| 4,560 |
| 3,620 |
| 13,131 |
| 11,248 |
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Depreciation and amortization |
| 857 |
| 517 |
| 2,683 |
| 1,240 |
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Impairment of assets |
| — |
| — |
| — |
| 1,648 |
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Restructuring costs |
| — |
| 10 |
| — |
| 122 |
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Interest expense |
| 231 |
| — |
| 824 |
| — |
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Spin off and merger expense, non recurring |
| — |
| — |
| — |
| 2,829 |
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Total expenses |
| 148,353 |
| 134,025 |
| 437,451 |
| 392,022 |
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Loss from continuing operations before income taxes |
| (1,049 | ) | (1,681 | ) | (5,291 | ) | (11,136 | ) | ||||
Provision for income taxes |
| — |
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| — |
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Loss from continuing operations |
| (1,049 | ) | (1,681 | ) | (5,291 | ) | (11,136 | ) | ||||
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Loss from discontinued operations |
| (117 | ) | (825 | ) | (386 | ) | (2,070 | ) | ||||
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Net loss |
| $ | (1,166 | ) | $ | (2,506 | ) | $ | (5,677 | ) | $ | (13,206 | ) |
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Weighted average shares outstanding |
| 8,505 |
| 8,453 |
| 8,471 |
| 7,254 |
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Basic and diluted loss per share from: |
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Continuing operations |
| $ | (0.12 | ) | $ | (0.20 | ) | $ | (0.62 | ) | $ | (1.54 | ) |
Discontinued operations |
| (0.02 | ) | (0.10 | ) | (0.05 | ) | (0.29 | ) | ||||
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Net loss per share |
| $ | (0.14 | ) | $ | (0.30 | ) | $ | (0.67 | ) | $ | (1.83 | ) |
1
Supplemental information, page 2 of 3
Five Star Quality Care, Inc.
Condensed Consolidated Balance Sheet Data
(dollars in thousands)
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| September 30, |
| December 31, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
| $ | 11,359 |
| $ | 10,270 |
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Accounts receivable, net |
| 29,338 |
| 33,877 |
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Prepaid expenses and other current assets |
| 21,451 |
| 9,434 |
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Total current assets |
| 62,148 |
| 53,581 |
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Property and equipment, net |
| 56,562 |
| 70,329 |
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Other long term assets |
| 25,100 |
| 9,287 |
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Total assets |
| $ | 143,810 |
| $ | 133,197 |
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Liabilities and Shareholders’ Equity |
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Current liabilities |
| $ | 57,315 | (1) | $ | 34,445 |
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Mortgage notes payable (long term) |
| 6,457 |
| 15,982 |
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Other long term liabilities (2) |
| 14,971 |
| 17,723 |
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Shareholders’ equity: 8,513,633 and 8,452,633 common shares outstanding |
| 65,067 |
| 65,047 |
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Total liabilities and shareholders’ equity |
| $ | 143,810 |
| $ | 133,197 |
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(1) Includes mortgage notes payable of $9,376 for which cash has been placed with the lender’s agent pending prepayment of the mortgage in December 2003.
(2) Long term liabilities principally include obligations to residents at FVE communities operated by Sunrise Senior Living, Inc. who have prepaid with deposits. These prepayments are amortized into revenues over the periods in which the service obligations are expected to be satisfied.
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Supplemental information, page 3 of 3
Five Star Quality Care, Inc.
As Reported (includes facilities from the date operations by Five Star commenced):
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| Three Months Ended 9/30 |
| Nine Months Ended 9/30 |
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| 2003 |
| 2002 |
| % Change |
| 2003 |
| 2002 |
| % Change |
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Revenues from residents (in 000s) |
| $ | 147,240 |
| $ | 132,296 |
| +11 | % | $ | 431,959 |
| $ | 380,656 |
| +14 | % |
Facility expenses (in 000s) |
| $ | 118,948 |
| $ | 105,248 |
| +13 | % | $ | 350,420 |
| $ | 305,985 |
| +15 | % |
Total expenses (in 000s) |
| $ | 148,353 |
| $ | 134,025 |
| +11 | % | $ | 437,451 |
| $ | 392,022 |
| +12 | % |
No. of facilities (end of period) |
| 106 |
| 89 |
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| 106 |
| 89 |
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No. of living units (end of period) |
| 14,081 |
| 12,978 |
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| 14,081 |
| 12,978 |
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Occupancy |
| 89 | % | 89 | % | — |
| 88 | % | 89 | % | -1 | % pt | ||||
Average daily rate |
| $ | 128 |
| $ | 125 |
| +2 | % | $ | 127 |
| $ | 120 |
| +6 | % |
Revenue per day per living unit |
| $ | 114 |
| $ | 111 |
| +3 | % | $ | 112 |
| $ | 107 |
| +5 | % |
Percent of revenues from |
| 41 | % | 42 | % | -1 | % pt | 40 | % | 42 | % | -2 | % pts | ||||
Percent of revenues from |
| 59 | % | 58 | % | +1 | % pt | 60 | % | 58 | % | +2 | % pts |
“Same Store” Facilities (facilities Five Star operated continuously since July 1, 2002, and January 1, 2002, respectively):
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| Three Months Ended 9/30 |
| Nine Months Ended 9/30 |
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| 2003 |
| 2002 |
| % Change |
| 2003 |
| 2002 |
| % Change |
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Revenues from residents (in 000s) |
| $ | 138,594 |
| $ | 126,799 |
| +9 | % | $ | 175,725 |
| $ | 168,727 |
| +4 | % |
Facility expenses (in 000s) |
| $ | 111,963 |
| $ | 111,441 |
| +1 | % | $ | 161,247 |
| $ | 156,862 |
| +3 | % |
No. of facilities (end of period) |
| 89 |
| 89 |
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| 53 |
| 53 |
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No. of living units (end of period) |
| 12,978 |
| 12,978 |
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| 4,794 |
| 4,794 |
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Occupancy |
| 89 | % | 89 | % | — |
| 91 | % | 91 | % | — |
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Average daily rate |
| $ | 131 |
| $ | 120 |
| +9 | % | $ | 147 |
| $ | 142 |
| +4 | % |
Revenue per day per living unit |
| $ | 116 |
| $ | 106 |
| +9 | % | $ | 135 |
| $ | 129 |
| +5 | % |
Percent of revenues from |
| 44 | % | 43 | % | +1 | % pt | 80 | % | 79 | % | 1 | % pt | ||||
Percent of revenues from |
| 56 | % | 57 | % | -1 | % pt | 20 | % | 21 | % | -1 | % pt |
Total Portfolio at 9/30/03 (includes data for periods prior to Five Star operation of acquired facilities*):
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| Three Months Ended 9/30 |
| Nine Months Ended 9/30 |
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| 2003 |
| 2002 |
| % Change |
| 2003 |
| 2002 |
| % Change |
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Revenues from residents (in 000s) |
| $ | 147,240 |
| $ | 142,320 |
| +3 | % | $ | 433,590 |
| $ | 415,831 |
| +4 | % |
Facility expenses (in 000s) |
| $ | 118,978 |
| $ | 115,404 |
| +3 | % | $ | 351,334 |
| $ | 333,947 |
| +5 | % |
No. of facilities (end of period) |
| 106 |
| 106 |
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| 106 |
| 106 |
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No. of living units (end of period) |
| 14,081 |
| 14,081 |
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| 14,081 |
| 14,081 |
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Occupancy |
| 89 | % | 91 | % | -2 | % pts | 89 | % | 91 | % | -2 | % pts | ||||
Average daily rate |
| $ | 128 |
| $ | 124 |
| +3 | % | $ | 127 |
| $ | 123 |
| +3 | % |
Revenue per day per living unit |
| $ | 114 |
| $ | 110 |
| +4 | % | $ | 113 |
| $ | 108 |
| +5 | % |
Percent of revenues from |
| 41 | % | 39 | % | +2 | % pts | 40 | % | 38 | % | +2 | % pts | ||||
Percent of revenues from |
| 59 | % | 61 | % | -2 | % pts | 60 | % | 62 | % | -2 | % pts |
* Based on data provided to us from prior owners.
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