Exhibit 99.2
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RETIREMENT CENTER COMMUNITIES - FOURTH QUARTER 2005
($'s in thousands)
RETIREMENT CENTER COMMUNITIES: TOTAL
- ----------------------------------------------------------------------------------------------------------------
Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05
------- ------- ------- ------- ------- ------- ------- -------
Resident and healthcare revenue $85,288 $85,578 $86,526 $89,787 $91,482 $93,794 $95,244 $97,594
Community operating expense 56,791 56,546 58,168 59,085 60,890 61,869 63,481 64,810
------- ------- ------- ------- ------- ------- ------- -------
Community operating
contribution 28,497 29,032 28,358 30,702 30,592 31,925 31,763 32,784
Community operating margin 33.4% 33.9% 32.8% 34.2% 33.4% 34.0% 33.3% 33.6%
Community operating contribution
excluding Amortization of
Deferred Entrance Fee Revenue 25,832 26,592 26,249 27,553 28,357 29,226 29,252 30,075
Ending Occupancy 8,374 8,424 8,436 8,482 8,585 8,567 8,635 8,655
Ending Occupancy % 94.4% 95.0% 95.1% 95.7% 94.6% 94.8% 95.3% 96.0%
Average Monthly Occupancy 8,376 8,382 8,408 8,438 8,532 8,572 8,593 8,627
Monthly Revenue per unit $ 3,394 $ 3,403 $ 3,430 $ 3,547 $ 3,574 $ 3,647 $ 3,695 $ 3,771
Year to Year % Change 8.0% 6.3% 5.0% 9.8% 5.3% 7.2% 7.7% 6.3%
Monthly Operating Contribution
per unit 1,134 1,155 1,124 1,213 1,195 1,241 1,232 1,267
Year to Year % Change 13.0% 12.4% 14.2% 16.2% 5.4% 7.5% 9.6% 4.4%
RETIREMENT CENTER COMMUNITIES: RENTAL COMMUNITIES
- ----------------------------------------------------------------------------------------------------------------
Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05
------- ------- ------- ------- ------- ------- ------- -------
Resident and healthcare revenue $55,007 $55,249 $56,306 $57,387 $58,493 $59,919 $61,386 $62,633
Community operating expense 34,326 33,983 35,422 35,932 36,739 37,259 38,768 39,374
------- ------- ------- ------- ------- ------- ------- -------
Community operating
contribution 20,681 21,266 20,884 21,455 21,754 22,660 22,618 23,259
Community operating margin 37.6% 38.5% 37.1% 37.4% 37.2% 37.8% 36.8% 37.1%
Ending Occupancy 5,576 5,595 5,581 5,623 5,586 5,597 5,648 5,690
Ending Occupancy % 95.2% 95.5% 95.2% 96.0% 95.4% 95.7% 96.5% 97.2%
Average Monthly Occupancy 5,582 5,576 5,580 5,594 5,602 5,596 5,615 5,655
Monthly Revenue per unit $ 3,285 $ 3,303 $ 3,364 $ 3,420 $ 3,480 $ 3,569 $ 3,644 $ 3,692
Year to Year % Change 7.5% 6.5% 4.5% 9.0% 5.9% 8.1% 8.3% 8.0%
Monthly Operating Contribution
per unit 1,235 1,271 1,248 1,278 1,294 1,350 1,343 1,371
Year to Year % Change 11.2% 11.8% 10.3% 7.4% 4.8% 6.2% 7.6% 7.2%
RETIREMENT CENTER COMMUNITIES: ENTRANCE FEE CCRCs
- ----------------------------------------------------------------------------------------------------------------
Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05
------- ------- ------- ------- ------- ------- ------- -------
Resident and healthcare revenue $30,281 $30,329 $30,220 $32,400 $32,989 $33,875 $33,858 $34,961
Community operating expense 22,465 22,563 22,746 23,153 24,151 24,610 24,713 25,436
------- ------- ------- ------- ------- ------- ------- -------
Community operating
contribution 7,816 7,766 7,474 9,247 8,838 9,265 9,145 9,525
Community operating margin 25.8% 25.6% 24.7% 28.5% 26.8% 27.4% 27.0% 27.2%
Ending Occupancy 2,798 2,829 2,855 2,859 2,999 2,970 2,987 2,965
Ending Occupancy % 93.0% 94.0% 94.8% 95.0% 93.3% 93.2% 93.8% 94.5%
Average Monthly Occupancy 2,795 2,806 2,828 2,844 2,930 2,976 2,978 2,972
Monthly Revenue per unit $ 3,612 $ 3,603 $ 3,562 $ 3,797 $ 3,753 $ 3,794 $ 3,790 $ 3,921
Year to Year % Change 9.2% 6.1% 5.9% 11.0% 3.9% 5.3% 6.4% 3.3%
Monthly Operating Contribution
per unit 932 923 881 1,084 1,005 1,038 1,024 1,068
Year to Year % Change 17.3% 13.0% 25.4% 45.0% 7.9% 12.5% 16.2% -1.4%
Net Cash Flow per unit
(includes Net Resale Cash
Flow) 1,326 1,503 1,442 1,217 1,397 1,551 1,007 1,695
Entrance Fee Sales:
Total Entrance Fee (Independent
Living) Units 2,066 2,066 2,066 2,064 2,217 2,213 2,214 2,214
Ending Occupancy % 95.4% 96.3% 97.1% 97.2% 95.8% 95.6% 95.7% 96.3%
Entrance Fee Sales (in units) 69 84 79 68 70 81 61 80
Entrance Fee Sales $10,257 $11,976 $11,931 $ 9,224 $11,589 $14,271 $ 9,563 $14,680
Refunds paid on Entrance Fee
Terminations 2,433 2,868 3,181 3,192 4,137 5,293 5,437 4,484
Net Resale Cash Flow 7,824 9,108 8,750 6,032 7,452 8,978 4,126 10,196
NOTE: The sales proceeds at entrance fee CCRCs provide a source of financing to
the community, thereby reducing the financing costs (interest or lease expense)
that it would otherwise incur. As a result of the residents paying an up-front
entrance fee, they pay a lower monthly service fee than they would pay at a
similar rental community without entrance fees. As a result, entrance fee
communities have lower operating margins (but lower non-operating financing
costs) than similar rental communities.
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
FREE-STANDING ASSISTED LIVING COMMUNITIES - FOURTH QUARTER 2005
($'s in thousands)
FREE-STANDING ASSISTED LIVING COMMUNITIES
- ----------------------------------------------------------------------------------------------------------------------
Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05
------- ------- ------- ------- ------- ------- ------- -------
Resident and healthcare revenue $22,663 $23,532 $24,563 $25,506 $26,207 $26,847 $28,195 $29,020
Community operating expense 17,061 17,519 17,657 17,970 18,447 18,027 19,475 19,505
------- ------- ------- ------- ------- ------- ------- -------
Community operating contribution 5,602 6,013 6,906 7,536 7,760 8,820 8,720 9,515
Community operating margin 24.7% 25.6% 28.1% 29.5% 29.6% 32.9% 30.9% 32.8%
Ending Occupancy 2,394 2,456 2,504 2,533 2,562 2,561 2,630 2,643
Ending Occupancy % 84.3% 86.5% 88.3% 89.3% 90.1% 89.9% 90.8% 91.2%
Average Monthly Occupancy 2,384 2,430 2,478 2,521 2,537 2,557 2,592 2,630
Monthly Revenue per unit $ 3,169 $ 3,228 $ 3,304 $ 3,372 $ 3,443 $ 3,500 $ 3,626 $ 3,678
Year to Year % Change 8.7% 7.5% 8.2% 9.9% 8.7% 8.4% 9.7% 9.1%
Monthly Operating Contribution
per unit 783 825 929 996 1,020 1,150 1,121 1,206
Year to Year % Change 78.5% 46.3% 39.2% 37.3% 30.2% 39.4% 20.7% 21.0%
NOTE: Excludes two non-consolidated joint ventures from Q1 04 to Q2 05; one
non-consolidated joint venture during Q3 05 and nine non-consolidated joint
ventures during Q4 2005.
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
INNOVATIVE SENIOR CARE / THERAPY
FOURTH QUARTER 2005
($'s in thousands)
Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05
---------- ---------- --------- --------- --------- --------- --------- -----------
Revenues $8,781 $9,207 $9,970 $10,902 $11,745 $12,504 $13,472 $14,452
Therapy clinics 81 87 93 96 107 115 124 127
Outside clinics
(included in above totals) 12 17 23 25 34 41 50 52
Therapy staff
Full time 248 280 338 354 369 432 493 521
Part time 201 205 232 225 208 194 196 187
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
SAME COMMUNITY RESULTS - FOURTH QUARTER 2005
($'s in thousands)
INCLUDING ENTRANCE FEE COMMUNITIES:
- ------------------------------------
Three months ended December 31
-------------------------------- $ %
2005 2004 Change Change
-------- -------- --------- ---------
Resident & Healthcare revenue $124,731 $115,292 $ 9,439 8.2%
Community operating expense 82,740 77,056 5,684 7.4%
-------- -------- --------- ---------
Community operating contribution $ 41,991 $ 38,236 3,755 9.8%
Community operating margin 33.7% 33.2%
# Locations 59 59
Avg. Occupancy 94.6% 93.6%
Avg. Occupied Units 11,056 10,958 98 0.9%
Avg. Mo. Revenue/unit $ 3,761 $ 3,507 $ 253 7.2%
Avg. Mo. Operating Contribution/unit 1,266 1,163 103 8.8%
EXCLUDING ENTRANCE FEE COMMUNITIES:
- ------------------------------------
Three months ended December 31
-------------------------------- $ %
2005 2004 Change Change
-------- -------- --------- ---------
Resident & Healthcare revenue $ 91,122 82,893 $ 8,229 9.9%
Community operating expense 58,598 53,905 4,693 8.7%
-------- -------- --------- ---------
Community operating contribution $ 32,524 $ 28,988 3,536 12.2%
Community operating margin 35.7% 35.0%
# Locations 53 53
Avg. Occupancy 94.4% 93.3%
Avg. Occupied Units 8,239 8,115 124 1.5%
Avg. Mo. Revenue/unit $ 3,687 $ 3,405 $ 282 8.3%
Avg. Mo. Operating Contribution/unit 1,316 1,191 125 10.5%
* 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.
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
REVENUE - FOURTH QUARTER 2005
($'s in thousands)
Three months ended Three months ended
December 31, December 31,
------------------ ------------------
2005 % 2004 %
-------- -------- -------- --------
COMPOSITION
- -----------
Revenues:
Retirement Centers
Independent living $ 40,284 31.0% $ 37,160 32.0%
Assisted living 15,252 11.8% 14,703 12.6%
Skilled Nursing 20,959 16.2% 19,760 17.0%
Ancillary services, including Innovative
Senior Care (therapy and wellness programs) 18,390 14.2% 15,015 12.9%
Amortization of Deferred Entrance Fee Revenue 2,709 2.0% 3,149 2.7%
-------- -------- -------- --------
97,594 75.3% 89,787 77.2%
Free-Standing Assisted Living
Assisted living 25,324 19.5% 22,766 19.6%
Ancillary services, including Innovative
Senior Care (therapy and wellness programs) 3,696 2.9% 2,740 2.4%
-------- -------- -------- --------
29,020 22.4% 25,506 22.0%
Total Resident and Healthcare Revenue 126,614 97.7% 115,293 99.2%
Management and Contract Services 1,848 1.5% 443 0.4%
Reimbursed Expenses 1,099 0.8% 532 0.4%
-------- -------- -------- --------
2,947 2.3% 975 0.8%
-------- -------- -------- --------
Total Revenues $129,561 100.0% $116,268 100.0%
BY PAYOR
- --------
Private Pay $107,476 83.0% $ 98,189 84.5%
Medicare 19,610 15.1% 15,244 13.1%
Medicaid 2,475 1.9% 2,835 2.4%
-------- -------- -------- ----------
Total $129,561 100.0% $116,268 100.0%
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
OTHER STATISTICS - FOURTH QUARTER 2005
UNIT CAPACITY BY COMMUNITY TYPE
- -------------------------------
At December 31, 2005
-----------------------
Locations Capacity
---------- ----------
Rental Retirement Centers:
Owned-100% 3 445
Leased 19 5,429
Managed - other 3 679
---------- ----------
25 6,553
Entrance Fee Retirement Centers:
Owned-100% 3 919
Owned- 90% - -
Leased 3 1,479
Managed-Freedom Square 1 739
Managed-other 3 737
---------- ----------
10 3,874
Free-Standing AL's:
Owned-100% 11 975
Owned-Joint Venture 9 947
Leased 20 1,831
Leased-Joint Venture 1 91
---------- ----------
41 3,844
All Communities:
Owned-100% 17 2,339
Owned- 90% - -
Owned-Joint Venture 9 947
Leased 42 8,739
Leased-Joint Venture 1 91
Managed-Freedom Square 1 739
Managed-other 6 1,416
---------- ----------
76 14,271
Note: Leased communities include both operating and capital leases. The nine
Owned-Joint Ventures are managed and are not consolidated. Freedom Square is
consolidated due to the variable interest entity rules set forth in FIN 46.