Exhibit 99.1
FOR IMMEDIATE RELEASE
| | Contact: |
| | Timothy A. Bonang |
| | Manager of Investor Relations |
| | 617-796-8149 |
| | www.fivestarqualitycare.com |
FIVE STAR QUALITY CARE, INC. ANNOUNCES
FINANCIAL RESULTS FOR THE QUARTER
AND YEAR ENDED DECEMBER 31, 2004
Newton, MA (March 23, 2005). Five Star Quality Care, Inc. (AMEX: FVE) today announced its financial results for the quarter and year ended December 31, 2004, compared to the same periods in 2003, as follows (in thousands except per share amounts):
| | Three Months Ended
December 31, | | Year Ended
December 31, | |
| | 2004 | | 2003 | | 2004 | | 2003 | |
| | | | | | | | | |
Total revenues | | $ | 169,022 | | $ | 147,123 | | $ | 628,005 | | $ | 575,182 | |
Total expenses | | 167,353 | | 149,057 | | 624,681 | | 580,737 | |
Total other income (expense) | | (449 | ) | (311 | ) | 786 | | (935 | ) |
| | | | | | | | | |
Income (loss) from continuing operations before income taxes | | $ | 1,220 | | $ | (2,245 | ) | $ | 4,110 | | $ | (6,490 | ) |
Provision for income taxes | | (8 | ) | — | | (120 | ) | — | |
Income (loss) from continuing operations | | 1,212 | | (2,245 | ) | 3,990 | | (6,490 | ) |
| | | | | | | | | |
Loss from discontinued operations | | (147 | ) | (17 | ) | (699 | ) | (1,449 | ) |
| | | | | | | | | |
Net income (loss) | | $ | 1,065 | | $ | (2,262 | ) | $ | 3,291 | | $ | (7,939 | ) |
| | | | | | | | | |
Weighted average shares outstanding | | 9,290 | | 8,514 | | 8,716 | | 8,482 | |
| | | | | | | | | |
Basic and diluted income (loss) per share from continuing operations | | $ | 0.13 | | $ | (0.27 | ) | $ | 0.46 | | $ | (0.77 | ) |
| | | | | | | | | |
Net income (loss) per share | | $ | 0.11 | | $ | (0.27 | ) | $ | 0.38 | | $ | (0.94 | ) |
On Wednesday, March 23, 2005 at 11:00 a.m. ET, Evrett Benton, president and chief executive officer, and Bruce Mackey, chief financial officer, will host a conference call to discuss the fourth quarter and year-end 2004 results. Following the company’s remarks, there will be a short question and answer period.
The conference call telephone number is (800) 818-5264. Participants calling from outside the United States and Canada should dial (913) 981-4910. 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 March 29, 2005. To hear the replay, dial (719) 457-0820. The replay pass code is 8728471.
A live oral webcast of the conference call will also be available in a listen-only mode on the company’s web site, which is located 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.
Five Star Quality Care, Inc. is a healthcare services company which operates senior living communities. FVE owns and leases 148 communities with 16,573 separate living units located in 27 states. These communities include independent living, assisted living and skilled nursing facilities. FVE is headquartered in Newton, Massachusetts.
(end)
Supplemental Information, page 1 of 3
FIVE STAR QUALITY CARE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(amounts in thousands, except per share data)
| | Three Months
ended December 31, | | Year ended
December 31, | |
| | 2004 | | 2003 | | 2004 | | 2003 | |
Revenues: | | | | | | | | | |
Net revenues from residents | | 164,394 | | 145,353 | | 614,796 | | 573,412 | |
Pharmacy revenue | | 4,628 | | 1,770 | | 13,209 | | 1,770 | |
Total revenues | | 169,022 | | 147,123 | | 628,005 | | 575,182 | |
| | | | | | | | | |
Expenses: | | | | | | | | | |
Wages and benefits | | 86,707 | | 81,951 | | 326,314 | | 313,846 | |
Other operating expenses | | 42,894 | | 35,284 | | 159,892 | | 149,424 | |
Pharmacy expenses | | 4,333 | | 1,665 | | 12,093 | | 1,643 | |
Management fee to Sunrise Senior Living Services, Inc. | | 5,096 | | 4,373 | | 19,293 | | 17,272 | |
Rent expense | | 22,186 | | 20,162 | | 83,370 | | 77,495 | |
General and administrative | | 5,264 | | 4,584 | | 20,053 | | 17,470 | |
Depreciation and amortization | | 873 | | 1,038 | | 3,666 | | 3,587 | |
Total operating expenses | | 167,353 | | 149,057 | | 624,681 | | 580,737 | |
| | | | | | | | | |
Operating income (loss) | | 1,669 | | (1,934 | ) | 3,324 | | (5,555 | ) |
Interest and other income | | 96 | | 28 | | 1,666 | | 229 | |
Interest expense | | (545 | ) | (339 | ) | (880 | ) | (1,164 | ) |
| | | | | | | | | |
Income (loss) from continuing operations before income taxes | | 1,220 | | (2,245 | ) | 4,110 | | (6,490 | ) |
Provision for income taxes | | (8 | ) | — | | (120 | ) | — | |
Income (loss) from continuing operations | | 1,212 | | (2,245 | ) | 3,990 | | (6,490 | ) |
| | | | | | | | | |
Loss from discontinued operations | | (147 | ) | (17 | ) | (699 | ) | (1,449 | ) |
| | | | | | | | | |
Net income (loss) | | $ | 1,065 | | $ | (2,262 | ) | $ | 3,291 | | $ | (7,939 | ) |
| | | | | | | | | |
Weighted average shares outstanding | | 9,290 | | 8,514 | | 8,716 | | 8,482 | |
| | | | | | | | | |
Basic and diluted income (loss) per share from: | | | | | | | | | |
Continuing operations | | $ | 0.13 | | $ | (0.27 | ) | $ | 0.46 | | $ | (0.77 | ) |
Discontinued operations | | (0.02 | ) | — | | (0.08 | ) | (0.17 | ) |
| | | | | | | | | |
Net income (loss) per share | | $ | 0.11 | | $ | (0.27 | ) | $ | 0.38 | | $ | (0.94 | ) |
Supplemental Information, page 2 of 3
Condensed Balance Sheet Data | | | |
(amounts in thousands, except share data) | | December 31, | |
| | 2004 | | 2003 | |
Assets | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 26,194 | | $ | 17,611 | |
Accounts receivable, net of reserve | | 36,742 | | 30,581 | |
Prepaid expenses and other current assets | | 13,107 | | 7,261 | |
Total current assets | | 76,043 | | 55,453 | |
| | | | | |
Property and equipment, net | | 95,189 | | 55,484 | |
Other long term assets | | 51,753 | | 36,433 | |
Total assets | | $ | 222,985 | | $ | 147,370 | |
| | | | | |
Liabilities and Shareholders’ Equity | | | | | |
Current liabilities | | $ | 59,121 | | $ | 58,145 | |
Long term liabilities | | 25,842 | | 18,417 | |
Mortgages payable, long term | | 42,118 | | 6,381 | |
Shareholders’ equity: 12,096,634 and 8,513,634 shares issued and outstanding at Dec. 31, 2004 and 2003, respectively | | 95,904 | | 64,427 | |
Total liabilities and shareholders’ equity | | $ | 222,985 | | $ | 147,370 | |
Supplemental Information, page 3 of 3
As Reported (includes information from the dates operations by FVE commenced):
| | Three months ended 12/31 | | Year ended 12/31 | |
| | 2004 | | 2003 | | Change | | 2004 | | 2003 | | Change | |
| | | | | | | | | | | | | |
Net revenues from residents (in 000s) | | $ | 164,394 | | $ | 145,353 | | +13 | % | $ | 614,796 | | $ | 573,412 | | +7 | % |
Facility expenses (in 000s) | | $ | 129,601 | | $ | 117,235 | | +8 | % | $ | 486,206 | | $ | 463,270 | | +5 | % |
Total expenses (in 000s) | | $ | 167,353 | | $ | 149,057 | | +12 | % | $ | 624,681 | | $ | 580,737 | | +8 | % |
No. of communities (end of period) | | 148 | | 100 | | +48 | | 148 | | 100 | | +48 | |
No. of living units (end of period) | | 16,573 | | 13,924 | | +2,649 | | 16,573 | | 13,924 | | +2,649 | |
Occupancy | | 89 | % | 90 | % | -1 | % | 89 | % | 89 | % | — | |
Average daily rate | | $ | 121 | | $ | 127 | | -9 | % | $ | 114 | | $ | 127 | | -11 | % |
Revenue per day per available unit | | $ | 108 | | $ | 114 | | -9 | % | $ | 101 | | $ | 113 | | -10 | % |
Percent of revenues from Medicare | | 15 | % | 14 | % | +1 | % | 16 | % | 14 | % | +2 | % |
Percent of revenues from Medicaid | | 24 | % | 26 | % | -2 | % | 25 | % | 26 | % | -1 | % |
Percent of revenues from private and other sources | | 61 | % | 60 | % | +1 | % | 59 | % | 60 | % | -1 | % |
| |
| |
Comparable Communities (communities FVE operated continuously since 10/1/03 and 1/1/03, respectively): | |
| |
| | Three months ended 12/31 | | Year ended 12/31 | |
| | 2004 | | 2003 | | Change | | 2004 | | 2003 | | Change | |
| | | | | | | | | | | | | |
Net revenues from residents (in 000s) | | $ | 153,540 | | $ | 145,353 | | +6 | % | $ | 598,184 | | $ | 571,105 | | +5 | % |
Facility expenses (in 000s) | | $ | 121,303 | | $ | 117,235 | | +4 | % | $ | 473,143 | | $ | 461,391 | | +3 | % |
No. of communities (end of period) | | 100 | | 100 | | — | | 97 | | 97 | | — | |
No. of living units (end of period) | | 13,924 | | 13,924 | | — | | 13,689 | | 13,689 | | — | |
Occupancy | | 90 | % | 89 | % | +1 | % | 90 | % | 89 | % | +1 | % |
Average daily rate | | $ | 120 | | $ | 118 | | +2 | % | $ | 133 | | $ | 129 | | +3 | % |
Revenue per day per available unit | | $ | 108 | | $ | 105 | | +3 | % | $ | 119 | | $ | 114 | | +3 | % |
Percent of revenues from Medicare | | 15 | % | 15 | % | — | | 17 | % | 14 | % | +3 | % |
Percent of revenues from Medicaid | | 25 | % | 26 | % | -1 | % | 25 | % | 26 | % | -1 | % |
Percent of revenues from private and other sources | | 60 | % | 59 | % | +1 | % | 58 | % | 60 | % | -2 | % |
| | | | | | | | | | | | | |
