Exhibit 99.1
FIVE STAR QUALITY CARE, INC.
FOR IMMEDIATE RELEASE | Contact:
Evrett W. Benton, President,
Bruce J. Mackey Jr., Treasurer or
Timothy A. Bonang, Manager of
Investor Relations
(617) 796-8387
www.fivestarqualitycare.com |
Five Star Quality Care, Inc. Announces Financial Results for the Quarter Ended September 30, 2004
Newton, MA (November 15, 2004). Five Star Quality Care, Inc. (AMEX: FVE) today announced its financial results for the quarter and nine months ended September 30, 2004, compared to the same periods in 2003, as follows (in thousands, except per share data):
| | Three Months Ended
September 30, | | Nine Months Ended
September 30, | |
| | 2004 | | 2003 | | 2004 | | 2003 | |
| | | | | | | | | |
Total revenues | | $ | 155,508 | | $ | 146,029 | | $ | 460,553 | | $ | 428,261 | |
Total expenses | | 154,527 | | 146,762 | | 457,548 | | 432,507 | |
| | | | | | | | | |
Income (loss) from continuing operations | | 981 | | (733 | ) | 3,005 | | (4,246 | ) |
| | | | | | | | | |
Provision for income taxes | | (112 | ) | — | | (112 | ) | — | |
| | | | | | | | | |
Income (loss) from discontinued operations | | 22 | | (433 | ) | (553 | ) | (1,431 | ) |
| | | | | | | | | |
Net income (loss) | | $ | 891 | | $ | (1,166 | ) | $ | 2,340 | | $ | (5,677 | ) |
| | | | | | | | | |
Weighted average shares outstanding | | 8,535 | | 8,505 | | 8,523 | | 8,471 | |
| | | | | | | | | |
Basic and diluted income (loss) per share from continuing operations | | $ | 0.10 | | $ | (0.09 | ) | $ | 0.34 | | $ | (0.50 | ) |
| | | | | | | | | |
Net income (loss) per share | | $ | 0.10 | | $ | (0.14 | ) | $ | 0.27 | | $ | (0.67 | ) |
Five Star Quality Care, Inc., is a healthcare services company that operates senior living communities. FVE owns and leases 101 communities with 13,967 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.
Consolidated Statement Of Operations
(amounts in thousands, except per share data)
| | Three months ended
September 30, | | Nine months ended
September 30, | |
| | 2004 | | 2003 | | 2004 | | 2003 | |
| | | | | | | | | |
Revenues: | | | | | | | | | |
Net revenues from residents and patients | | $ | 151,685 | | $ | 145,867 | | $ | 450,047 | | $ | 427,871 | |
Pharmacy revenue | | 3,563 | | 76 | | 8,582 | | 76 | |
Interest and other income | | 260 | | 86 | | 1,924 | | 314 | |
Total revenues | | 155,508 | | 146,029 | | 460,553 | | 428,261 | |
| | | | | | | | | |
Expenses: | | | | | | | | | |
Wages and benefits | | 80,140 | | 77,766 | | 241,342 | | 232,044 | |
Other operating expenses | | 42,933 | | 39,717 | | 122,961 | | 113,969 | |
Management fee to Sunrise Senior Living Services, Inc. | | 4,973 | | 4,381 | | 14,164 | | 12,900 | |
Rent to Senior Housing Properties Trust | | 20,589 | | 19,363 | | 61,170 | | 57,334 | |
General and administrative | | 4,854 | | 4,494 | | 14,789 | | 12,887 | |
Depreciation and amortization | | 947 | | 810 | | 2,786 | | 2,549 | |
Interest expense | | 91 | | 231 | | 336 | | 824 | |
Total expenses | | 154,527 | | 146,762 | | 457,548 | | 432,507 | |
| | | | | | | | | |
Income (loss) from continuing operations before income taxes | | 981 | | (733 | ) | 3,005 | | (4,246 | ) |
Provision for income taxes | | (112 | ) | — | | (112 | ) | — | |
| | | | | | | | | |
Income (loss) from continuing operations | | 869 | | (733 | ) | 2,893 | | (4,246 | ) |
| | | | | | | | | |
Income (loss) from discontinued operations | | 22 | | (433 | ) | (553 | ) | (1,431 | ) |
| | | | | | | | | |
Net income (loss) | | $ | 891 | | $ | (1,166 | ) | $ | 2,340 | | $ | (5,677 | ) |
| | | | | | | | | |
Weighted average shares outstanding | | 8,535 | | 8,505 | | 8,523 | | 8,471 | |
| | | | | | | | | |
Basic and diluted income (loss) per share from: | | | | | | | | | |
Continuing operations | | $ | 0.10 | | $ | (0.09 | ) | $ | 0.34 | | $ | (0.50 | ) |
Discontinued operations | | — | | (0.05 | ) | (0.07 | ) | (0.17 | ) |
| | | | | | | | | |
Net income (loss) per share | | $ | 0.10 | | $ | (0.14 | ) | $ | 0.27 | | $ | (0.67 | ) |
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Five Star Quality Care, Inc.
Condensed Consolidated Balance Sheet Data
(in thousands, except per share data)
| | September 30,
2004 | | December 31,
2003 | |
Assets | | | | | |
| | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 18,612 | | $ | 17,611 | |
Accounts receivable, net of allowance | | 35,572 | | 30,581 | |
Prepaid expenses and other current assets | | 9,855 | | 7,871 | |
Total current assets | | 64,039 | | 56,063 | |
| | | | | |
Property and equipment, net | | 43,311 | | 55,484 | |
Other long term assets | | 39,867 | | 35,823 | |
Total assets | | $ | 147,217 | | $ | 147,370 | |
| | | | | |
Liabilities and Shareholders’ Equity | | | | | |
| | | | | |
Current liabilities | | $ | 50,243 | | $ | 58,145 | |
Long term liabilities (1) | | 25,157 | | 18,417 | |
Mortgage note payable (long term) | | 4,947 | | 6,381 | |
Shareholders’ equity: 8,538,634 common shares outstanding as of September 30, 2004 | | 66,870 | | 64,427 | |
Total liabilities and shareholders’ equity | | $ | 147,217 | | $ | 147,370 | |
(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 periods during which the service obligations are expected to be satisfied.
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As Reported (includes information from the dates operations by FVE commenced):
| | Three Months ended September 30, | | Nine months ended September 30, | |
| | 2004 | | 2003 | | Change | | 2004 | | 2003 | | Change | |
| | | | | | | | | | | | | |
Revenues from residents (in 000s) | | $ | 151,685 | | $ | 145,867 | | 4 | % | $ | 450,047 | | $ | 427,871 | | 5 | % |
Community expenses (in 000s) | | $ | 123,073 | | $ | 117,483 | | 5 | % | $ | 364,303 | | $ | 346,013 | | 5 | % |
Total expenses (in 000s) | | $ | 154,527 | | $ | 146,762 | | 5 | % | $ | 457,548 | | $ | 432,507 | | 6 | % |
No. of communities (end of period) | | 101 | | 100 | | +1 | | 101 | | 100 | | +1 | |
No. of living units (end of period) | | 13,967 | | 13,862 | | +105 | | 13,967 | | 13,862 | | +105 | |
Occupancy | | 90 | % | 89 | % | +1 | % | 89 | % | 89 | % | — | |
Average daily rate | | $ | 131 | | $ | 129 | | 2 | % | $ | 132 | | $ | 127 | | 4 | % |
Revenue per day per available unit | | $ | 118 | | $ | 114 | | 4 | % | $ | 118 | | $ | 113 | | 4 | % |
Percent of revenues from Medicare and Medicaid | | 43 | % | 41 | % | +2 | % | 43 | % | 40 | % | +3 | % |
Percent of revenues from Private and Other | | 57 | % | 59 | % | -2 | % | 57 | % | 60 | % | -3 | % |
“Same Store” Communities (communities that we operated continuously since July 1, 2003 and January 1, 2003, respectively):
| | Three Months ended September 30, | | Nine months ended September 30, | |
| | 2004 | | 2003 | | Change | | 2004 | | 2003 | | Change | |
| | | | | | | | | | | | | |
Revenue from residents (in 000s) | | $ | 150,679 | | $ | 145,867 | | 3 | % | $ | 445,132 | | $ | 426,610 | | 4 | % |
Community expenses (in 000s) | | $ | 121,387 | | $ | 117,421 | | 3 | % | $ | 358,430 | | $ | 344,895 | | 4 | % |
No. of communities (end of period) | | 100 | | 100 | | — | | 97 | | 97 | | — | |
No. of living units (end of period) | | 13,862 | | 13,862 | | — | | 13,719 | | 13,719 | | — | |
Occupancy | | 89 | % | 89 | % | — | | 89 | % | 90 | % | -1 | % |
Average daily rate | | $ | 132 | | $ | 129 | | 2 | % | $ | 133 | | $ | 127 | | 5 | % |
Revenue per day per available unit | | $ | 118 | | $ | 114 | | 4 | % | $ | 119 | | $ | 114 | | 4 | % |
Percent of revenues from Medicare and Medicaid | | 43 | % | 44 | % | -1 | % | 43 | % | 41 | % | +2 | % |
Percent of revenues from Private and Other | | 57 | % | 56 | % | +1 | % | 57 | % | 59 | % | -2 | % |
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