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Sunrise Senior Living Inc. Message Board

  • johnruberto johnruberto Apr 12, 2009 5:00 PM Flag


    Expect 2nd Quarter to look really good.

    I own stock in SRZ and my father lives in one of their facilities.
    This month we received our regular bill for last months services, 10
    day later we received a bill for next months services. They told us
    back in January that this was going to happen so as resident's
    familys we accept it and go on.

    Until I actually got the bill and looked at what was going on I hadn't
    put 2+2 together. They have been billing us after the services and
    now they are going to bill us ahead. Their open AR just doubled. Do
    the math 55,000 resident that just moved for paying behind to paying
    ahead say $3K a month (we pay $5K a month but I think we pay more than
    the average), that is $165,000,000 that they just added to their
    current assists and cash flow. This will need to be reserved,
    however, this maybe why the bank gave them the 30 day extension. By
    the end of this month they will show the higher current assist value
    and this gives the bank and SRZ a great way to get everything

    As a resident, $10K in one month is hard to swollow, but as a stock
    holder this is a great move. Our facility also told us that if we
    need to spead it out over 2-3 months they would work with us, so I
    doubt this will cause too many people to leave, I'm sure we will have
    some but "cost" is not the reason people have their family members in
    an SRZ facility. They are worth the price and this is a good business

    Watch for the refinance by the end of this month and the 2nd quarter
    to be profitable. I still hold the refi is worth $2 to stock price
    and the firt profitable quarter is worth another $2. I still see
    stock price of $4 by summer and $6 by the end of the year.

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