Exhibit 99.1
FOR IMMEDIATE RELEASE | Contact: |
| Evrett W. Benton, President or |
| Bruce J. Mackey Jr., Treasurer |
| (617) 796-8387 |
| www.fivestarqualitycare.com |
Five Star Quality Care, Inc. Announces Financial Results for the Quarter Ended June 30, 2004
Newton, MA (August 12, 2004). Five Star Quality Care, Inc. (AMEX: FVE) today announced its financial results for the quarter and six months ended June 30, 2004, compared to the same periods in 2003, as follows (in thousands, except per share data):
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| Three Months Ended |
| Six Months Ended |
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| 2004 |
| 2003 |
| 2004 |
| 2003 |
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Total revenues |
| $ | 153,554 |
| $ | 140,560 |
| $ | 305,045 |
| $ | 282,232 |
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Total expenses |
| 152,487 |
| 141,987 |
| 303,022 |
| 286,045 |
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Income (loss) from continuing operations |
| $ | 1,067 |
| $ | (1,427 | ) | $ | 2,023 |
| $ | (3,813 | ) |
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Income (loss) from discontinued operations |
| (124 | ) | (650 | ) | (574 | ) | (699 | ) | ||||
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Net income (loss) |
| $ | 943 |
| $ | (2,077 | ) | $ | 1,449 |
| $ | (4,512 | ) |
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Weighted average shares outstanding |
| 8,526 |
| 8,456 |
| 8,520 |
| 8,454 |
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Basic and diluted income (loss) per share from continuing operations |
| $ | 0.13 |
| $ | (0.17 | ) | $ | 0.24 |
| $ | (0.45 | ) |
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Net income (loss) per share |
| $ | 0.11 |
| $ | (0.25 | ) | $ | 0.17 |
| $ | (0.53 | ) |
Five Star Quality Care, Inc., is a healthcare services company that operates senior living communities. FVE owns and leases 101 communities with 13,967 separate 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)
Five Star Quality Care, Inc.
Condensed Consolidated Statement Of Operations
(amounts in thousands, except per share data)
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| Three months ended June 30, |
| Six months ended June 30, |
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| 2004 |
| 2003 |
| 2004 |
| 2003 |
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Revenues: |
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Net revenues from residents and patients |
| $ | 150,497 |
| $ | 140,448 |
| $ | 298,362 |
| $ | 282,004 |
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Pharmacy revenue |
| 2,851 |
| — |
| 5,019 |
| — |
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Interest and other income |
| 206 |
| 112 |
| 1,664 |
| 228 |
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Total revenues |
| 153,554 |
| 140,560 |
| 305,045 |
| 282,232 |
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Expenses: |
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Wages and benefits |
| 79,872 |
| 77,951 |
| 161,302 |
| 154,278 |
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Other operating expenses |
| 41,823 |
| 35,549 |
| 79,928 |
| 74,552 |
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Management fee to Sunrise Senior Living Services, Inc. |
| 4,557 |
| 4,232 |
| 9,191 |
| 8,519 |
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Rent to Senior Housing Properties Trust |
| 20,455 |
| 18,979 |
| 40,582 |
| 37,971 |
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General and administrative |
| 4,817 |
| 4,049 |
| 9,935 |
| 8,393 |
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Depreciation and amortization |
| 865 |
| 920 |
| 1,839 |
| 1,739 |
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Interest expense |
| 98 |
| 307 |
| 245 |
| 593 |
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Total expenses |
| 152,487 |
| 141,987 |
| 303,022 |
| 286,045 |
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Income (loss) from continuing operations before income taxes |
| 1,067 |
| (1,427 | ) | 2,023 |
| (3,813 | ) | ||||
Provision for income taxes |
| — |
| — |
| — |
| — |
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Income (loss) from continuing operations |
| 1,067 |
| (1,427 | ) | 2,023 |
| (3,813 | ) | ||||
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Loss from discontinued operations |
| (124 | ) | (650 | ) | (574 | ) | (699 | ) | ||||
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Net income (loss) |
| $ | 943 |
| $ | (2,077 | ) | $ | 1,449 |
| $ | (4,512 | ) |
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Weighted average shares outstanding |
| 8,526 |
| 8,456 |
| 8,520 |
| 8,454 |
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Basic and diluted income (loss) per share from: |
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Continuing operations |
| $ | 0.13 |
| $ | (0.17 | ) | $ | 0.24 |
| $ | (0.45 | ) |
Discontinued operations |
| (0.02 | ) | (0.08 | ) | (0.07 | ) | (0.08 | ) | ||||
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Net income (loss) per share |
| $ | 0.11 |
| $ | (0.25 | ) | $ | 0.17 |
| $ | (0.53 | ) |
Five Star Quality Care, Inc.
Condensed Consolidated Balance Sheet Data
(in thousands, except per share data)
|
| June 30, |
| December 31, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
| $ | 28,879 |
| $ | 17,611 |
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Accounts receivable, net of reserve |
| 32,590 |
| 30,581 |
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Prepaid expenses and other current assets |
| 6,925 |
| 7,871 |
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Total current assets |
| 68,394 |
| 56,063 |
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Property and equipment, net |
| 40,526 |
| 55,484 |
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Other long term assets |
| 37,017 |
| 35,823 |
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Total assets |
| $ | 145,937 |
| $ | 147,370 |
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Liabilities and Shareholders’ Equity |
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Current liabilities |
| $ | 51,141 |
| $ | 58,145 |
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Long term liabilities (1) |
| 23,904 |
| 18,417 |
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Mortgage note payable (long term) |
| 4,959 |
| 6,381 |
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Shareholders’ equity: 8,534,634 common shares outstanding as of June 30, 2004 |
| 65,933 |
| 64,427 |
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Total liabilities and shareholders’ equity |
| $ | 145,937 |
| $ | 147,370 |
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(1) Long term liabilities principally include obligations to residents for deposits and prepaid services at the communities that 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.
As Reported (includes information from the dates operations by FVE commenced):
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| Three Months ended 6/30 |
| Six months ended 6/30 |
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| 2004 |
| 2003 |
| Change |
| 2004 |
| 2003 |
| Change |
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Revenues from residents (in 000s) |
| $ | 150,497 |
| $ | 140,448 |
| 7 | % | $ | 298,362 |
| $ | 282,004 |
| 6 | % | ||
Community expenses (in 000s) |
| $ | 121,695 |
| $ | 113,500 |
| 7 | % | $ | 241,230 |
| $ | 228,830 |
| 5 | % | ||
Total expenses (in 000s) |
| $ | 152,487 |
| $ | 141,987 |
| 7 | % | $ | 303,022 |
| $ | 286,045 |
| 6 | % | ||
No. of facilities (end of period) |
| 101 |
| 100 |
| +1 |
| 101 |
| 100 |
| +1 |
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No. of living units (end of period) |
| 13,967 |
| 13,862 |
| +105 |
| 13,967 |
| 13,862 |
| +105 |
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Occupancy |
| 89 | % | 89 | % | — |
| 89 | % | 89 | % | — |
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Average daily rate |
| $ | 132 |
| $ | 124 |
| 6 | % | $ | 132 |
| $ | 126 |
| 5 | % | ||
Revenue per day per available unit |
| $ | 117 |
| $ | 110 |
| 6 | % | $ | 117 |
| $ | 112 |
| 5 | % | ||
Percent of revenues from Medicare and Medicaid |
| 43 | % | 42 | % | +1 | % | 43 | % | 43 | % | — |
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Percent of revenues from Private and Other |
| 57 | % | 58 | % | -1 | % | 57 | % | 57 | % | — |
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“Same Store” Communities (communities that we operated continuously since April 1, 2003 and January 1, 2003, respectively):
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| Three Months ended 6/30 |
| Six months ended 6/30 |
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| 2004 |
| 2003 |
| Change |
| 2004 |
| 2003 |
| Change |
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Revenues from residents (in 000s) |
| $ | 148,730 |
| $ | 140,125 |
| 6 | % | $ | 295,576 |
| $ | 281,682 |
| 5 | % | ||
Community expenses (in 000s) |
| $ | 118,184 |
| $ | 113,248 |
| 4 | % | $ | 234,992 |
| $ | 228,578 |
| 3 | % | ||
No. of facilities (end of period) |
| 97 |
| 97 |
| — |
| 97 |
| 97 |
| — |
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No. of living units (end of period) |
| 13,719 |
| 13,719 |
| — |
| 13,719 |
| 13,719 |
| — |
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Occupancy |
| 89 | % | 89 | % | — |
| 89 | % | 90 | % | -1 | % | ||||||
Average daily rate |
| $ | 132 |
| $ | 125 |
| 6 | % | $ | 133 |
| $ | 127 |
| 5 | % | ||
Revenue per day per available unit |
| $ | 118 |
| $ | 111 |
| 6 | % | $ | 118 |
| $ | 113 |
| 4 | % | ||
Percent of revenues from Medicare and Medicaid |
| 43 | % | 42 | % | +1 | % | 43 | % | 43 | % | — |
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Percent of revenues from Private and Other |
| 57 | % | 58 | % | -1 | % | 57 | % | 57 | % | — |
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