Exhibit 99.1
FOR IMMEDIATE RELEASE | Contacts: Timothy A. Bonang, Vice President, Investor Relations |
| Elisabeth H. Olmsted, Manager, Investor Relations |
| (617) 796-8245 |
Five Star Quality Care, Inc. Reports First Quarter 2013 Results
Newton, MA (April 29, 2013). Five Star Quality Care, Inc. (NYSE: FVE) today announced its financial results for the quarter ended March 31, 2013.
First Quarter 2013 Financial Highlights:
· Total revenues for the first quarter of 2013 increased 10.1% to $360.1 million from $327.2 million for the same period in the previous year.
· Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the first quarter of 2013 were $9.1 million compared to $9.0 million for the same period in the previous year. A reconciliation of income from continuing operations determined in accordance with U.S. generally accepted accounting principles, or GAAP, to EBITDA and EBITDA excluding certain items for the quarters ended March 31, 2013 and 2012 appears later in this press release.
· Income from continuing operations for the first quarter of 2013 was $2.3 million, or $0.05 per basic and diluted share, compared to $1.2 million, or $0.03 per basic and diluted share for the same period in the previous year. Income from continuing operations for the first quarter of 2013 included an income tax benefit of $1.5 million, or $0.03 per basic and diluted share, relating to a work opportunity tax credit program that expired in 2012 and which was retroactively reinstated in January 2013.
· Net income for the first quarter of 2013 was $1.9 million, or $0.04 per basic and diluted share, compared to $369,000, or $0.01 per basic and diluted share for the same period in the previous year. Net income in the 2013 period included a loss from discontinued operations of $379,000 compared to a loss from discontinued operations of $853,000 in the 2012 period.
First Quarter 2013 Operating Highlights:
· Occupancy at our owned and leased senior living communities for the first quarter of 2013 was 85.4% compared to 85.9% for the same period in the previous year.
· The average monthly rate at our owned and leased senior living communities for the first quarter of 2013 increased by 2.5% to $4,507 from $4,395 for the same period in the previous year.
· The percentage of revenues derived from residents’ private resources for the first quarter of 2013 at our owned and leased senior living communities decreased to 74.3% compared to 74.5% for the same period in the previous year.
· Our fee revenues from managed senior living communities in the first quarter of 2013 were $2.3 million compared to $1.1 million for the same period in the previous year.
Other Highlights:
· On March 15, 2013, we entered into an amendment to our $35.0 million revolving secured line of credit, or our Credit Agreement, which is available for general business purposes, including acquisitions. As a result of this amendment, the maturity date of our Credit Agreement was extended from March 18, 2013 to March 18, 2016. In addition, the interest rate payable on borrowings under our Credit Agreement was reduced from LIBOR (with a floor of 200 basis points) plus a premium of 400 basis points to LIBOR (with no floor) plus a premium of 250 basis points.
Conference Call:
Later today, April 29, 2013, at 10:00 a.m. Eastern Time, we will host a conference call to discuss the first quarter financial results. Following management’s presentation, there will be a question and answer period.
The conference call telephone number is (800) 230-1951. Participants calling from outside the United States and Canada should dial (612) 332-0342. 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 11:59 p.m. Eastern Time, May 6, 2013. To hear the replay, dial (320) 365-3844. The replay pass code is 290591.
A live audio webcast of the conference call will also be available in a listen only mode on the Company’s website at www.fivestarseniorliving.com. Participants wanting to access the webcast should visit the Company’s website about five minutes before the call. The archived webcast will be available for replay on the Company’s website for about one week after the call. The transcription, recording and retransmission in any way of the Company’s first quarter 2013 conference call is strictly prohibited without the prior written consent of the Company. The Company’s website is not incorporated as part of this press release.
About Five Star Quality Care, Inc.:
Five Star Quality Care, Inc. is a senior living and healthcare services company. As of March 31, 2013, we operated 261 senior living communities with 30,450 living units located in 31 states, including 31 communities (2,969 living units) that we own and operate, 191 communities (20,799 living units) that we lease and operate and 39 communities (6,682 living units) that we manage. These communities include independent living, assisted living, continuing care and skilled nursing communities. We also operate two rehabilitation hospitals. We are headquartered in Newton, Massachusetts.
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WARNING CONCERNING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER WE USE WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”, “ESTIMATE” OR SIMILAR EXPRESSIONS, WE ARE MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON OUR PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY THESE FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:
· RESIDENTS AND PATIENTS WHO PAY FOR OUR SERVICES WITH THEIR PRIVATE RESOURCES MAY BECOME UNABLE TO AFFORD OUR SERVICES WHICH COULD RESULT IN DECREASED OCCUPANCY AND REVENUES AT OUR SENIOR LIVING COMMUNITIES AND REHABILITATION HOSPITALS AND INCREASED RELIANCE ON GOVERNMENT AND OTHER PAYERS.
· THE AMOUNT OF AVAILABLE BORROWINGS UNDER OUR EXTENDED CREDIT AGREEMENT IS SUBJECT TO OUR HAVING QUALIFIED COLLATERAL, WHICH IS PRIMARILY BASED ON THE VALUE OF OUR ACCOUNTS RECEIVABLE SECURING OUR CREDIT AGREEMENT. ACCORDINGLY, THE AVAILABILITY OF BORROWINGS UNDER OUR CREDIT AGREEMENT AT ANY TIME MAY BE LESS THAN $35.0 MILLION.
· ACTUAL COSTS UNDER OUR CREDIT AGREEMENT WILL BE HIGHER THAN LIBOR PLUS A PREMIUM BECAUSE OF OTHER FEES AND EXPENSES ASSOCIATED WITH OUR CREDIT AGREEMENT.
THE INFORMATION CONTAINED IN OUR FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER THE CAPTION “RISK FACTORS” IN OUR PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE DIFFERENCES FROM OUR FORWARD LOOKING STATEMENTS. OUR FILINGS WITH THE SEC ARE AVAILABLE ON THE SEC’S WEBSITE AT WWW.SEC.GOV.
FOR THESE REASONS, AMONG OTHERS, INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS IN THIS PRESS RELEASE.
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Supplemental Information, page 1 of 7
FIVE STAR QUALITY CARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
| | Three months ended
March 31, | |
| | 2013 | | 2012 | |
Revenues: | | | | | |
Senior living revenue | | $ | 278,211 | | $ | 275,870 | |
Rehabilitation hospital revenue | | 27,481 | | 26,787 | |
Management fee revenue | | 2,302 | | 1,088 | |
Reimbursed costs incurred on behalf of managed communities | | 52,058 | | 23,405 | |
Total revenues | | 360,052 | | 327,150 | |
| | | | | |
Operating expenses: | | | | | |
Senior living wages and benefits | | 139,212 | | 138,374 | |
Other senior living operating expenses | | 68,960 | | 66,612 | |
Costs incurred on behalf of managed communities | | 52,058 | | 23,405 | |
Rehabilitation hospital expenses | | 24,894 | | 24,119 | |
Rent expense | | 50,877 | | 50,225 | |
General and administrative | | 15,132 | | 15,455 | |
Depreciation and amortization | | 6,514 | | 5,959 | |
Total operating expenses | | 357,647 | | 324,149 | |
| | | | | |
Operating income | | 2,405 | | 3,001 | |
| | | | | |
Interest, dividend and other income | | 197 | | 205 | |
Interest and other expense | | (1,456 | ) | (1,426 | ) |
Equity in earnings of Affiliates Insurance Company | | 76 | | 45 | |
Gain (loss) on sale of available for sale securities reclassified from other comprehensive income | | 87 | | (1 | ) |
| | | | | |
Income from continuing operations before income taxes | | 1,309 | | 1,824 | |
Benefit (provision) for income taxes | | 1,005 | | (602 | ) |
Income from continuing operations | | 2,314 | | 1,222 | |
Loss from discontinued operations | | (379 | ) | (853 | ) |
| | | | | |
Net income | | $ | 1,935 | | $ | 369 | |
| | | | | |
Weighted average shares outstanding - basic and diluted | | 48,234 | | 47,899 | |
| | | | | |
Basic and diluted income per share from: | | | | | |
Continuing operations | | $ | 0.05 | | $ | 0.03 | |
Discontinued operations | | (0.01 | ) | (0.02 | ) |
Net income per share - basic and diluted | | $ | 0.04 | | $ | 0.01 | |
Supplemental Information, page 2 of 7
FIVE STAR QUALITY CARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS DATA
(in thousands)
(unaudited)
| | March 31,
2013 | | December 31,
2012 | |
Assets | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 15,156 | | $ | 24,638 | |
Accounts receivable, net of allowance | | 56,547 | | 53,134 | |
Due from related persons | | 5,581 | | 6,881 | |
Investments in available for sale securities | | 17,602 | | 12,920 | |
Restricted cash | | 11,502 | | 6,548 | |
Prepaid expenses and other current assets | | 21,156 | | 29,644 | |
Assets of discontinued operations | | 12,634 | | 10,430 | |
Total current assets | | 140,178 | | 144,195 | |
| | | | | |
Property and equipment, net | | 333,773 | | 335,612 | |
Restricted cash | | 9,378 | | 12,166 | |
Restricted investments in available for sale securities | | 8,472 | | 10,580 | |
Goodwill, equity investment and other long term assets | | 76,852 | | 75,684 | |
Total assets | | $ | 568,653 | | $ | 578,237 | |
| | | | | |
Liabilities and Shareholders’ Equity | | | | | |
Current liabilities: | | | | | |
Convertible senior notes | | $ | 24,872 | | $ | 24,872 | |
Other current liabilities | | 158,134 | | 165,969 | |
Total current liabilities | | 183,006 | | 190,841 | |
| | | | | |
Mortgage notes payable | | 37,337 | | 37,621 | |
Other long term liabilities | | 39,359 | | 42,970 | |
Shareholders’ equity | | 308,951 | | 306,805 | |
Total liabilities and shareholders’ equity | | $ | 568,653 | | $ | 578,237 | |
Supplemental Information, page 3 of 7
FIVE STAR QUALITY CARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| | Three months ended March 31, | |
| | 2013 | | 2012 | |
| | | | | |
Cash flows from operating activities: | | | | | |
Net income | | $ | 1,935 | | $ | 369 | |
Adjustments to reconcile net income to cash provided by operating activities: | | | | | |
Depreciation and amortization | | 6,514 | | 5,959 | |
Loss from discontinued operations | | 379 | | 853 | |
(Gain) loss on sale of available for sale securities | | (87 | ) | 1 | |
Equity in earnings of Affiliates Insurance Company | | (76 | ) | (45 | ) |
Stock-based compensation | | 205 | | 217 | |
Provision for losses on receivables | | 1,772 | | 1,161 | |
Changes in assets and liabilities: | | | | | |
Accounts receivable | | (5,185 | ) | (1,551 | ) |
Prepaid expenses and other assets | | 7,102 | | (355 | ) |
Accounts payable and accrued expenses | | (14,018 | ) | 1,356 | |
Accrued compensation and benefits | | 3,705 | | 4,788 | |
Due from (to) related persons, net | | 1,114 | | (5,192 | ) |
Other current and long term liabilities | | (1,349 | ) | (169 | ) |
Cash provided by operating activities | | 2,011 | | 7,392 | |
| | | | | |
Net cash (used in) provided by discontinued operations | | (2,161 | ) | 107 | |
| | | | | |
Cash flows from investing activities: | | | | | |
Payments from restricted cash and investment accounts, net | | (2,166 | ) | (3,136 | ) |
Acquisition of property and equipment | | (12,560 | ) | (12,896 | ) |
Purchase of available for sale securities | | (4,882 | ) | — | |
Proceeds from disposition of property and equipment held for sale | | 8,171 | | 6,318 | |
Proceeds from sale of available for sale securities | | 2,409 | | 772 | |
Cash used in investing activities | | (9,028 | ) | (8,942 | ) |
| | | | | |
Cash flows from financing activities: | | | | | |
Proceeds from borrowings on credit facilities | | 20,000 | | — | |
Repayments of borrowings on credit facilities | | (20,000 | ) | — | |
Repayments of mortgage notes payable | | (304 | ) | (286 | ) |
Cash used in financing activities | | (304 | ) | (286 | ) |
| | | | | |
Change in cash and cash equivalents during the period | | (9,482 | ) | (1,729 | ) |
Cash and cash equivalents at beginning of period | | 24,638 | | 28,374 | |
Cash and cash equivalents at end of period | | $ | 15,156 | | $ | 26,645 | |
| | | | | |
Supplemental cash flow information: | | | | | |
Cash paid for interest | | $ | 709 | | $ | 1,002 | |
Cash paid for income taxes | | $ | 296 | | $ | 122 | |
Supplemental Information, page 4 of 7
FIVE STAR QUALITY CARE, INC.
SENIOR LIVING COMMUNITY FINANCIAL DATA(1)
(dollars in thousands, except average monthly rate)
| | Three months ended
March 31,(2) | |
| | 2013 | | 2012 | |
Senior living communities: | | | | | |
Number of communities (end of period) | | 222 | | 222 | |
Number of units (end of period) | | 23,768 | | 23,768 | |
Occupancy | | 85.4 | % | 85.9 | % |
Avg. monthly rate(3) | | $ | 4,507 | | $ | 4,395 | |
| | | | | |
Senior living revenue: | | | | | |
Independent and assisted living community revenue | | $ | 124,099 | | $ | 122,470 | |
Continuing care retirement community revenue | | 97,435 | | 97,433 | |
Skilled nursing facility revenue | | 53,302 | | 52,759 | |
Other (4) | | 3,375 | | 3,208 | |
| | | | | |
Total senior living revenue | | $ | 278,211 | | $ | 275,870 | |
| | | | | |
Senior living wages and benefits: | | | | | |
Independent and assisted living community wages and benefits | | $ | 54,413 | | $ | 54,101 | |
Continuing care retirement community wages and benefits | | 48,977 | | 48,518 | |
Skilled nursing facility wages and benefits | | 34,711 | | 34,462 | |
Other (4) | | 1,111 | | 1,293 | |
| | | | | |
Total senior living wages and benefits | | $ | 139,212 | | $ | 138,374 | |
| | | | | |
Senior living other operating expenses: | | | | | |
Independent and assisted living community other operating expenses | | $ | 29,831 | | $ | 29,722 | |
Continuing care retirement community other operating expenses | | 25,093 | | 23,868 | |
Skilled nursing facility other operating expenses | | 13,549 | | 12,474 | |
Other (4) | | 487 | | 548 | |
| | | | | |
Total senior living other operating expenses | | $ | 68,960 | | $ | 66,612 | |
(1) Excludes data for managed communities, rehabilitation hospitals and discontinued senior living operations.
(2) The number of communities operated continuously from January 1, 2012, through March 31, 2013, did not change; as such, there is no separate comparable senior living community financial data.
(3) Average monthly rate is calculated by taking the average daily rate, which is defined as total operating revenue divided by occupied units, during the period and multiplying it by 30 days.
(4) Other senior living relates primarily to rehabilitation and other specialty service revenues and expenses provided at our residential facilities and does not include revenue and expenses from our rehabilitation hospital operations.
Supplemental Information, page 5 of 7
FIVE STAR QUALITY CARE, INC.
PERCENT BREAKDOWN OF SENIOR LIVING COMMUNITY REVENUES(1)
| | Three months ended | |
| | March 31, | |
| | 2013 | | 2012 | |
Independent and assisted living communities: | | | | | |
Private and other sources | | 99.1 | % | 99.0 | % |
Medicaid | | 0.9 | % | 1.0 | % |
Total | | 100 | % | 100 | % |
| | | | | |
Continuing care retirement communities: | | | | | |
Private and other sources | | 70.0 | % | 70.7 | % |
Medicare | | 23.5 | % | 22.7 | % |
Medicaid | | 6.5 | % | 6.6 | % |
Total | | 100 | % | 100 | % |
| | | | | |
Skilled nursing facilities: | | | | | |
Private and other sources | | 25.1 | % | 25.2 | % |
Medicare | | 25.7 | % | 25.1 | % |
Medicaid | | 49.2 | % | 49.7 | % |
Total | | 100 | % | 100 | % |
| | | | | |
Total senior living communities: | | | | | |
Private and other sources | | 74.3 | % | 74.5 | % |
Medicare | | 13.4 | % | 13.0 | % |
Medicaid | | 12.3 | % | 12.5 | % |
Total | | 100 | % | 100 | % |
(1) Excludes data for managed communities, rehabilitation hospitals and discontinued senior living operations.
Supplemental Information, page 6 of 7
FIVE STAR QUALITY CARE, INC.
SENIOR LIVING OTHER OPERATING DATA(1)
(dollars in thousands, except average monthly rate)
| | Three months ended | |
| | March 31, | | December 31, | | September 30, | | June 30, | | March 31, | |
| | 2013 | | 2012 | | 2012 | | 2012 | | 2012 | |
Independent and assisted living communities (owned): | | | | | | | | | | | |
Number of communities (end of period) | | 31 | | 31 | | 31 | | 31 | | 31 | |
Number of units (end of period) | | 2,969 | | 2,969 | | 2,969 | | 2,969 | | 2,969 | |
Occupancy | | 87.4 | % | 88.2 | % | 86.7 | % | 85.7 | % | 85.4 | % |
Avg. monthly rate(2) | | $ | 3,368 | | $ | 3,287 | | $ | 3,300 | | $ | 3,327 | | $ | 3,293 | |
| | | | | | | | | | | |
Independent and assisted living communities (leased): | | | | | | | | | | | |
Number of communities (end of period) | | 122 | | 122 | | 122 | | 122 | | 122 | |
Number of units (end of period) | | 10,046 | | 10,046 | | 10,046 | | 10,046 | | 10,046 | |
Occupancy | | 88.1 | % | 88.6 | % | 88.3 | % | 88.2 | % | 88.4 | % |
Avg. monthly rate(2) | | $ | 3,656 | | $ | 3,584 | | $ | 3,580 | | $ | 3,597 | | $ | 3,580 | |
| | | | | | | | | | | |
Continuing care retirement communities (leased): | | | | | | | | | | | |
Number of communities (end of period) | | 31 | | 31 | | 31 | | 31 | | 31 | |
Number of units (end of period)(3) | | 7,330 | | 7,330 | | 7,330 | | 7,330 | | 7,330 | |
Occupancy | | 83.9 | % | 83.5 | % | 84.1 | % | 84.0 | % | 84.8 | % |
Avg. monthly rate(2) | | $ | 5,280 | | $ | 5,204 | | $ | 5,117 | | $ | 5,185 | | $ | 5,166 | |
| | | | | | | | | | | |
Skilled nursing facilities (leased): | | | | | | | | | | | |
Number of communities (end of period) | | 38 | | 38 | | 38 | | 38 | | 38 | |
Number of units (end of period)(4) | | 3,423 | | 3,423 | | 3,423 | | 3,423 | | 3,423 | |
Occupancy | | 79.0 | % | 79.8 | % | 80.2 | % | 80.9 | % | 81.6 | % |
Avg. monthly rate(2) | | $ | 6,628 | | $ | 6,453 | | $ | 6,221 | | $ | 6,474 | | $ | 6,265 | |
| | | | | | | | | | | |
Total senior living communities (owned and leased): | | | | | | | | | | | |
Number of communities (end of period) | | 222 | | 222 | | 222 | | 222 | | 222 | |
Number of units (end of period) | | 23,768 | | 23,768 | | 23,768 | | 23,768 | | 23,768 | |
Occupancy | | 85.4 | % | 85.7 | % | 85.7 | % | 85.5 | % | 85.9 | % |
Avg. monthly rate(2) | | $ | 4,507 | | $ | 4,418 | | $ | 4,367 | | $ | 4,437 | | $ | 4,395 | |
| | | | | | | | | | | |
Managed communities: | | | | | | | | | | | |
Number of communities (end of period) | | 39 | | 39 | | 30 | | 25 | | 25 | |
Number of units (end of period)(5) | | 6,682 | | 6,682 | | 4,498 | | 3,736 | | 3,736 | |
Occupancy | | 87.1 | % | 87.5 | % | 87.4 | % | 87.6 | % | 87.3 | % |
Avg. monthly rate(2) | | $ | 4,296 | | $ | 4,144 | | $ | 3,962 | | $ | 4,000 | | $ | 3,960 | |
| | | | | | | | | | | |
Rehabilitation hospitals (leased): | | | | | | | | | | | |
Number of hospitals (end of period) | | 2 | | 2 | | 2 | | 2 | | 2 | |
Number of units (end of period) | | 321 | | 321 | | 321 | | 321 | | 321 | |
Occupancy | | 63.7 | % | 60.2 | % | 60.7 | % | 59.8 | % | 60.4 | % |
| | | | | | | | | | | |
Other ancillary services: | | | | | | | | | | | |
Rehabilitation and wellness inpatient clinics (end of period) | | 53 | | 50 | | 50 | | 48 | | 47 | |
Rehabilitation and wellness outpatient clinics (end of period) | | 49 | | 49 | | 46 | | 44 | | 41 | |
Home health communities served (end of period) | | 6 | | 6 | | 6 | | 6 | | 6 | |
(1) Excludes data for discontinued operations.
(2) Average monthly rate is calculated by taking the average daily rate, which is defined as total operating revenue divided by occupied units, during the period and multiplying it by 30 days.
(3) Includes 2,014 skilled nursing units in communities where assisted living and independent living services are the predominant services provided.
(4) Includes 87 assisted living and independent living units in communities where skilled nursing services are the predominant services provided.
(5) Includes 472 skilled nursing units in communities where assisted living and independent living services are the predominant services provided.
Supplemental Information, page 7 of 7
FIVE STAR QUALITY CARE, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands)
Earnings before interest, taxes, depreciation and amortization, or EBITDA, and EBITDA excluding certain items, or collectively, Non-GAAP Financial Measures, are not financial measures determined according to U.S. generally accepted accounting principles, or GAAP. We consider these Non-GAAP Financial Measures to be meaningful disclosures because we believe that the presentation of these Non-GAAP Financial Measures may help investors to gain a better understanding of changes in our operating results, and may also help investors who wish to make comparisons between us and other companies on both a GAAP and a non-GAAP basis. These Non-GAAP Financial Measures are used by management to evaluate our financial performance and for comparing our performance over time and to the performance of our competitors. These Non-GAAP Financial Measures as presented may not, however, be comparable to amounts calculated by other companies. This information should not be considered as an alternative to income from continuing operations, net income, cash flows from operating activities or any other financial operating or performance or liquidity measure established by GAAP. The following table includes the reconciliation of these Non-GAAP Financial Measures to income from continuing operations, the most directly comparable financial measure under GAAP reported in our condensed consolidated financial statements, for the three months ended March 31, 2013 and 2012.
| | For the three months | |
| | ended March 31, | |
| | 2013 | | 2012 | |
Income from continuing operations | | $ | 2,314 | | $ | 1,222 | |
Add: interest and other expense | | 1,456 | | 1,426 | |
Add: income tax expense | | 463 | | 602 | |
Add: depreciation and amortization | | 6,514 | | 5,959 | |
Less: interest, dividend and other income | | (197 | ) | (205 | ) |
Less: income tax benefit | | (1,468 | ) | — | |
EBITDA | | 9,082 | | 9,004 | |
Add: loss on sale of investments in available for sale securities | | — | | 1 | |
Less: gain on sale of investments in available for sale securities | | (87 | ) | — | |
EBITDA excluding certain items | | $ | 8,995 | | $ | 9,005 | |
