Exhibit 99.2 <TABLE> <CAPTION> AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION RETIREMENT CENTER COMMUNITIES - THIRD QUARTER 2005 ($'s in thousands) RETIREMENT CENTER COMMUNITIES: TOTAL ------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 -------- -------- -------- -------- -------- -------- -------- Resident and healthcare revenue $85,288 $85,578 $86,526 $89,787 $91,482 $93,794 $95,244 Community operating expense 56,791 56,546 58,168 59,085 60,890 61,869 63,482 ------- ------- ------- ------- ------- ------- ------- Community operating contribution 28,497 29,032 28,358 30,702 30,592 31,925 31,762 Community operating margin 33.4% 33.9% 32.8% 34.2% 33.4% 34.0% 33.3% Community operating contribution excluding Amortization of Deferred Entrance Fee Revenue 25,832 26,592 26,249 27,553 28,357 29,226 29,252 Ending Occupancy 8,374 8,424 8,436 8,482 8,585 8,567 8,635 Ending Occupancy % 94.4% 95.0% 95.1% 95.7% 94.6% 94.8% 95.3% Average Monthly Occupancy 8,376 8,382 8,408 8,438 8,532 8,572 8,593 Monthly Revenue per unit $ 3,394 $ 3,403 $ 3,430 $ 3,547 $ 3,574 $ 3,647 $ 3,695 Year to Year % Change 8.0% 6.3% 5.0% 9.8% 5.3% 7.2% 7.7% Monthly Operating Contribution per unit 1,134 1,155 1,124 1,213 1,195 1,241 1,232 Year to Year % Change 13.0% 12.4% 14.2% 16.2% 5.4% 7.5% 9.6% RETIREMENT CENTER COMMUNITIES: RENTAL COMMUNITIES -------------------------------------------------- Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 -------- -------- -------- -------- -------- -------- -------- Resident and healthcare revenue $55,007 $55,249 $56,306 $57,387 $58,493 $59,919 $61,386 Community operating expense 34,326 33,983 35,422 35,932 36,739 37,259 38,769 ------- ------- ------- ------- ------- ------- ------- Community operating contribution 20,681 21,266 20,884 21,455 21,754 22,660 22,617 Community operating margin 37.6% 38.5% 37.1% 37.4% 37.2% 37.8% 36.8% Ending Occupancy 5,576 5,595 5,581 5,623 5,586 5,597 5,648 Ending Occupancy % 95.2% 95.5% 95.2% 96.0% 95.4% 95.7% 96.5% Average Monthly Occupancy 5,582 5,576 5,580 5,594 5,602 5,596 5,615 Monthly Revenue per unit $ 3,285 $ 3,303 $ 3,364 $ 3,420 $ 3,480 $ 3,569 $ 3,644 Year to Year % Change 7.5% 6.5% 4.5% 9.0% 5.9% 8.1% 8.3% Monthly Operating Contribution per unit 1,235 1,271 1,248 1,278 1,294 1,350 1,343 Year to Year % Change 11.2% 11.8% 10.3% 7.4% 4.8% 6.2% 7.6% RETIREMENT CENTER COMMUNITIES: ENTRANCE FEE CCRCs -------------------------------------------------- Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 -------- -------- -------- -------- -------- -------- -------- Resident and healthcare revenue $30,281 $30,329 $30,220 $32,400 $32,989 $33,875 $33,858 Community operating expense 22,465 22,563 22,746 23,153 24,151 24,610 24,713 ------- ------- ------- ------- ------- ------- ------- Community operating contribution 7,816 7,766 7,474 9,247 8,838 9,265 9,145 Community operating margin 25.8% 25.6% 24.7% 28.5% 26.8% 27.4% 27.0% Ending Occupancy 2,798 2,829 2,855 2,859 2,999 2,970 2,987 Ending Occupancy % 93.0% 94.0% 94.8% 95.0% 93.3% 93.2% 93.8% Average Monthly Occupancy 2,795 2,806 2,828 2,844 2,930 2,976 2,978 Monthly Revenue per unit $ 3,612 $ 3,603 $ 3,562 $ 3,797 $ 3,753 $ 3,794 $ 3,790 Year to Year % Change 9.2% 6.1% 5.9% 11.0% 3.9% 5.3% 6.4% Monthly Operating Contribution per unit 932 923 881 1,084 1,005 1,038 1,024 Year to Year % Change 17.3% 13.0% 25.4% 45.0% 7.9% 12.5% 16.2% Net Cash Flow per unit (includes Net Resale Cash Flow) 1,326 1,503 1,442 1,217 1,397 1,551 1,007 Entrance Fee Sales: Total Entrance Fee (Independent Living) Units 2,066 2,066 2,066 2,064 2,217 2,213 2,214 Ending Occupancy % 95.4% 96.3% 97.1% 97.2% 95.8% 95.6% 95.7% Entrance Fee Sales (in units) 69 84 79 68 70 81 61 Entrance Fee Sales $10,257 $11,976 $11,931 $ 9,224 $11,589 $14,271 $ 9,563 Refunds paid on Entrance Fee Terminations 2,433 2,868 3,181 3,192 4,137 5,293 5,437 Net Resale Cash Flow 7,824 9,108 8,750 6,032 7,452 8,978 4,126 </TABLE> NOTE: The sales proceeds at entrance fee CCRCs provide a source of financing to the community, thereby reducing the financing costs (interest or lease expense) that it would otherwise incur. As a result of the residents paying an up-front entrance fee, they pay a lower monthly service fee than they would pay at a similar rental community without entrance fees. As a result, entrance fee communities have lower operating margins (but lower non-operating financing costs) than similar rental communities. <PAGE> <TABLE> <CAPTION> AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION FREE-STANDING ASSISTED LIVING COMMUNITIES - THIRD QUARTER 2005 ($'s in thousands) FREE-STANDING ASSISTED LIVING COMMUNITIES ----------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 -------- -------- --------- --------- -------- -------- ---------- Resident and healthcare revenue $22,663 $23,532 $24,563 $25,506 $26,207 $26,847 $28,195 Community operating expense 17,061 17,519 17,657 17,970 18,447 18,027 19,474 ------- ------- ------- ------- ------- ------- ------- Community operating contribution 5,602 6,013 6,906 7,536 7,760 8,820 8,721 Community operating margin 24.7% 25.6% 28.1% 29.5% 29.6% 32.9% 30.9% Ending Occupancy 2,394 2,456 2,504 2,533 2,562 2,561 2,630 Ending Occupancy % 84.3% 86.5% 88.3% 89.3% 90.1% 89.9% 90.8% Average Monthly Occupancy 2,384 2,430 2,478 2,521 2,537 2,557 2,592 Monthly Revenue per unit $ 3,169 $ 3,228 $ 3,304 $ 3,372 $ 3,443 $ 3,500 $ 3,626 Year to Year % Change 8.7% 7.5% 8.2% 9.9% 8.7% 8.4% 9.7% Monthly Operating Contribution per unit 783 825 929 996 1,020 1,150 1,122 Year to Year % Change 78.5% 46.3% 39.2% 37.3% 30.2% 39.4% 20.8% </TABLE> NOTE: Excludes two non-consolidated joint ventures from Q1 04 to Q2 05; Excludes one non-consolidated joint venture during Q3 05 <PAGE> <TABLE> <CAPTION> AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION INNOVATIVE SENIOR CARE / THERAPY SECOND QUARTER 2006 ($'s in thousands) Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 -------- ------- ---------- -------- -------- -------- -------- <S> <C> <C> <C> <C> <C> <C> <C> Revenues $8,781 $9,207 $9,970 $10,902 $11,745 $12,504 $13,472 Therapy clinics 81 87 93 96 107 115 124 Outside clinics (included in above totals) 12 17 23 25 34 41 50 Therapy staff Full time 248 280 338 354 369 418 508 Part time 201 205 232 225 208 209 205 </TABLE> <PAGE> <TABLE> <CAPTION> AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION SAME COMMUNITY RESULTS - THIRD QUARTER 2005 ($'s in thousands) INCLUDING ENTRANCE FEE COMMUNITIES: ----------------------------------- Three months ended September 30 $ % -------------------------------- 2005 2004 Change Change -------------- -------------- ------- ----------- <S> <C> <C> <C> <C> Resident & Healthcare revenue $ 121,672 $ 111,090 $10,582 9.5% Community operating expense 81,340 75,825 5,515 7.3% -------------- -------------- ------- ----------- Community operating contribution $ 40,332 $ 35,265 5,067 14.4% Community operating margin 33.1% 31.7% # Locations 59 59 Avg. Occupancy 94.1% 93.0% Avg. Occupied Units 10,998 10,886 112 1.0% Avg. Mo. Revenue/unit $ 3,688 $ 3,402 $ 286 8.4% Avg. Mo. Operating Contribution/unit 1,222 1,080 143 13.2% EXCLUDING ENTRANCE FEE COMMUNITIES: ----------------------------------- Three months ended September 30 $ % -------------------------------- 2005 2004 Change Change ------------- ------------- ------- ----------- Resident & Healthcare revenue $ 89,067 80,870 $ 8,197 10.1% Community operating expense 57,966 53,079 4,887 9.2% ------------- ------------- ------- ----------- Community operating contribution $ 31,101 $ 27,791 3,310 11.9% Community operating margin 34.9% 34.4% # Locations 53 53 Avg. Occupancy 93.8% 92.7% Avg. Occupied Units 8,172 8,058 114 1.4% Avg. Mo. Revenue/unit $ 3,633 $ 3,345 $ 288 8.6% Avg. Mo. Operating Contribution/unit 1,269 1,150 119 10.3% </TABLE> * This table sets forth certain selected financial and operating data on a Same Community basis. "Same Community basis" refers to communities that were owned and/or leased by the company throughout each of the periods being compared. <PAGE> <TABLE> <CAPTION> AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION REVENUE - THIRD QUARTER 2005 ($'s in thousands) Three months ended Three months ended September 30, September 30, --------------------------------------- 2005 % 2004 % -------- -------- -------- ---------- <S> <C> <C> <C> <C> COMPOSITION - ----------- Revenues: Retirement Centers Independent living $ 39,640 31.7% $ 36,623 32.7% Assisted living 15,450 12.4% 14,449 12.9% Skilled Nursing 20,314 16.3% 19,263 17.2% Ancillary services, including Innovative Senior Care (therapy and wellness programs) 17,330 13.9% 14,082 12.6% Amortization of Deferred Entrance Fee Revenue 2,510 2.0% 2,109 1.9% -------- ---- -------- ---- 95,244 76.3% 86,526 77.2% Free-Standing Assisted Living Assisted living 25,062 20.1% 21,839 19.5% Ancillary services, including Innovative Senior Care (therapy and wellness programs) 3,133 2.6% 2,724 2.4% -------- ---- -------- ---- 28,195 22.6% 24,563 21.9% Total Resident and Healthcare Revenue 123,439 98.9% 111,089 99.1% Management and Contract Services 664 0.6% 500 0.4% Reimbursed Expenses 646 0.5% 460 0.4% -------- ---- -------- ---- 1,310 1.1% 960 0.9% -------- ---- -------- ---- Total Revenues $124,749 100.0% $112,049 100.0% BY PAYOR - -------- Private Pay $104,024 83.4% $ 95,515 85.2% Medicare 18,386 14.7% 13,946 12.4% Medicaid 2,340 1.9% 2,588 2.4% -------- -------- -------- ---------- Total $124,749 100.0% $112,049 100.0% </TABLE> <PAGE> AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION OTHER STATISTICS - THIRD QUARTER 2005 UNIT CAPACITY BY COMMUNITY TYPE - ----------------------------------- At September 30, 2005 -------------------- Locations Capacity ---------- --------- Rental Retirement Centers: Owned-100% 3 445 Leased 19 5,431 Managed - other 3 683 ---------- --------- 25 6,559 Entrance Fee Retirement Centers: Owned-100% 3 919 Owned- 90% - - Leased 3 1,525 Managed-Freedom Square 1 739 Managed-other 3 740 ---------- --------- 10 3,923 Free-Standing AL's: Owned-100% 11 976 Owned-Joint Venture 1 116 Leased 20 1,828 Leased-Joint Venture 1 91 ---------- --------- 33 3,011 All Communities: Owned-100% 17 2,340 Owned- 90% - - Owned-Joint Venture 1 116 Leased 42 8,784 Leased-Joint Venture 1 91 Managed-Freedom Square 1 739 Managed-other 6 1,423 ---------- --------- 68 13,493 Note: Leased communities include both operating and capital leases. The one Owned-Joint Ventures is managed and is not consolidated. Freedom Square is consolidated due to the variable interest entity rules set forth in FIN 46.
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8-K Filing
American Retirement Inactive 8-KResults of Operations and Financial Condition
Filed: 3 Nov 05, 12:00am