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Five Star Senior Living Inc. Announces Second Quarter 2020 Results

Second Quarter Total Management and Operating Revenues of $54.6 Million

Second Quarter Net Income of $3.0 million and Net Income Per Diluted Share of $0.10

Second Quarter Adjusted EBITDA of $7.1 million

Five Star Senior Living Inc. (Nasdaq: FVE) today announced its financial results for the quarter ended June 30, 2020.

Katherine Potter, President and Chief Executive Officer, made the following statement regarding the second quarter 2020 results:

"We are extremely proud of and encouraged by our team members’ perseverance and dedication during the quarter as the safety and well-being of our residents, clients and team members remains our number one priority. We made significant adjustments to address the unique challenges presented by the COVID-19 pandemic, while still focusing on achieving our strategic initiatives. We remain committed to adapting to these challenges and maintaining an exceptional resident experience that we believe is the key driver of our financial performance. We reported net income per share of $0.10 and adjusted EBITDA of $7.1 million in the second quarter of 2020. Our rehabilitation and wellness services division, Ageility Physical Therapy Solutions, or Ageility, continues to be a key area of growth, generating $19.3 million in revenues during the quarter representing a 5.6% increase over the prior year pro forma results, and Ageility's second quarter operating margins of 21.7% compared to prior year quarter pro forma margins of 10.1%.

Our balance sheet remains strong following the completion of our restructuring transaction with DHC at the beginning of this year, with $76.1 million of cash, $7.4 million of mortgage notes and no balance outstanding on our $65.0 million revolving credit facility as of June 30, 2020. We are well positioned to navigate the COVID-19 pandemic while focusing on the key pillars of our strategy: optimizing senior living operations, growing externally through complementary service offerings like our rehabilitation and wellness services and investing in our owned and leased communities."

Overview and Results for the Quarter Ended June 30, 2020:

  • The COVID-19 pandemic has had and continues to have a significant effect on FVE and the senior living industry as a whole. FVE's highest priority continues to be maintaining the health and well-being of its residents, clients and team members. As a result, FVE experienced an increase in direct costs to prepare for, prevent the spread of and respond to the COVID-19 pandemic, through purchasing personal protective equipment, testing supplies, disposable food supplies and professional services costs, as well as infectious disease prevention cleaning and sanitation costs in addition to increased labor costs. FVE incurs these costs for its owned and leased communities, rehabilitation and wellness services division and for its corporate operations, and those costs that relate to its managed senior living communities are incurred by Diversified Healthcare Trust, or DHC. FVE experienced a decline in occupancy and average monthly senior living revenue per available unit (RevPAR) throughout the quarter at the senior living communities it operates and manages. FVE also experienced the temporary closure of Ageility clinics for in-person services. The duration and extent of the effects of the COVID-19 pandemic remain unknown and the negative trends are expected to continue throughout the third quarter of 2020.

  • FVE has taken a number of actions to support its team members, residents and communities, including the following:

  • providing free meals to team members;

  • providing COVID-19 emergency leave to team members, including paid leave to team members if they were exposed to or tested positive for COVID-19 and offering flexible work schedules;

  • offering free COVID-19 testing to team members;

  • recognizing and rewarding team members with bonuses in addition to FVE's total rewards package;

  • promoting access to mental health services and other benefits to support team members' mental and physical well-being;

  • hosting virtual all-hands meetings to communicate FVE's policies, procedures and guidelines related to COVID-19 response and re-opening efforts and to ensure team members are supported with assistance and guidance;

  • implementing new virtual group activities for residents that allow for engagement while maintaining social distancing;

  • expanding effective communication channels to residents and communities;

  • providing devices and connectivity options for interaction with family members, virtual programming opportunities and distance learning; and

  • focusing on learning and development opportunities.

  • FVE has taken a number of actions to mitigate the effects of the COVID-19 pandemic, including the following:

  • restricting access to senior living communities to essential visitors and team members, and only reopening communities when it is determined safe to do so in accordance with applicable federal, state and local regulations and guidelines, and FVE internal criteria;

  • temporarily closing Ageility clinics for in-person services and only easing restrictions when it is determined safe to do so and in accordance with federal, state and local regulations;

  • enhancing infectious disease prevention and control policies, procedures and protocols;

  • providing additional and enhanced training to team members at all levels of the organization;

  • working with vendors to provide adequate supplies and personal protective equipment to senior living communities and Ageility clinics;

  • deferring the payment of $8.8 million of payroll taxes as permitted by the CARES Act, of which $1.7 million will not be reimbursable from DHC; and

  • effectively transitioning to virtual sales and marketing activities and thoughtfully proceeding with resident move-ins, when appropriate.

  • Combined senior living revenues and management fees for communities FVE leased from DHC prior to January 1, 2020, and since that date manages on behalf of DHC, for the quarter ended June 30, 2020 decreased to $35.3 million from $267.0 million for the same period in 2019, primarily due to the conversion of the formerly leased senior living communities to managed communities as a result of the Restructuring Transactions, as described in the Selected Pro Forma Condensed Consolidated Financial Information and Other Data in the Supplemental Information of this press release. Additionally, the decline in revenues as compared to the same period of the prior year are impacted by the sales of 15 communities in the third quarter of 2019 that FVE previously leased from DHC. Senior living revenues at communities FVE leased or owned continuously since April 1, 2019 was $19.5 million, which represents a $1.3 million or 6.0% decrease from the same period in 2019, primarily due to decreases in occupancy as a result of the COVID-19 pandemic. Revenues decreased $3.5 million compared to the June 30, 2019 pro forma results, which consider the financial results as if the Restructuring Transactions had closed on January 1, 2019, and is primarily attributable a decline in occupancy and RevPAR due to the COVID-19 pandemic.

  • Rehabilitation and wellness services revenues for the second quarter of 2020 increased to $19.3 million from $11.5 million for the same period in 2019, primarily due to the impact of $6.7 million of inpatient clinic revenue at communities FVE previously leased from DHC during the second quarter of 2019, which was previously eliminated in consolidation accounting prior to the Restructuring Transactions, as well as the opening of 64 net new outpatient clinics. These increases were partially offset by revenue declines resulting from the reduction of in-person visits as a result of the COVID-19 pandemic. Revenues increased $1.0 million compared to the June 30, 2019 pro forma results, which consider the financial results as if the Restructuring Transactions had closed on January 1, 2019, and is primarily attributable to opening 64 net new clinics since July 1, 2019 offset by a decline in revenue as a result of the reduction of in-person visits due to the COVID-19 pandemic.

  • The U.S. Department of Health and Human Services, or HHS, through the CARES Act Provider Relief Fund, distributed funds to healthcare providers to offset lost revenue and increased healthcare related costs associated with COVID-19. FVE received general distribution payments under the CARES Act related to rehabilitation and wellness services totaling $1.7 million and recognized $1.5 million in other operating income associated with these funds.

  • Net income for the second quarter of 2020 was $3.0 million, or $0.10 per diluted share, compared to net income of $5.0 million, or $0.16 per diluted share, for the June 30, 2019 pro forma results.

  • Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the second quarter of 2020 was $5.0 million compared to $9.3 million for the June 30, 2019 pro forma results. Adjusted EBITDA, as described further below, was $7.1 million for the second quarter of 2020 compared to $9.8 million for the June 30, 2019 pro forma results. EBITDA and Adjusted EBITDA are non-GAAP financial measures. Reconciliations of net income determined in accordance with GAAP to EBITDA and Adjusted EBITDA for the quarters ended June 30, 2020 and 2019 are presented later in this press release.

  • As of June 30, 2020, FVE had unrestricted cash and cash equivalents of $76.1 million, including $4.7 million of targeted skilled nursing facility (SNF) distribution funds under the CARES Act primarily related to SNFs that FVE previously leased from DHC during 2018 and 2019 for which FVE is evaluating its eligibility to retain those funds. In the event FVE determines it is are not eligible to retain the funds received, FVE will remit the funds to HHS by August 20, 2020. In addition, FVE had no amounts outstanding on its revolving credit facility and $7.4 million outstanding on a mortgage note.

Conference Call Information:

At 1:00 p.m. Eastern Time this afternoon, President and Chief Executive Officer, Katherine Potter, Executive Vice President, Chief Financial Officer and Treasurer, Jeffrey Leer, and Senior Vice President and Chief Operating Officer, Margaret Wigglesworth, will host a conference call to discuss FVE's second quarter 2020 results.

The conference call telephone number is (877) 329-4332. Participants calling from outside the United States and Canada should dial (412) 317-5436. 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 on Thursday, August 13, 2020. To hear the replay, dial (412) 317-0088. The replay pass code is 10145299.

A live audio webcast of the conference call will also be available in a listen-only mode on FVE’s website, www.fivestarseniorliving.com. Participants wanting to access the webcast should visit FVE’s website about five minutes before the call. The archived webcast will be available for replay on FVE’s website following the call for about a week. The transcription, recording and retransmission in any way of FVE's second quarter 2020 conference call are strictly prohibited without the prior written consent of FVE. FVE’s website is not incorporated as part of this press release.

About Five Star Senior Living Inc.:

FVE is a senior living and rehabilitation and wellness services company. As of June 30, 2020, FVE operated 265 senior living communities (30,660 living units) located in 32 states, including 241 communities (28,348 living units) that it managed and 24 communities (2,312 living units) that it owned or leased. FVE operates communities that include independent living, assisted living, continuing care retirement and skilled nursing communities. Additionally, FVE's rehabilitation and wellness services segment includes Ageility Physical Therapy SolutionsTM, or Ageility, a division of FVE, which provides rehabilitation and wellness services within FVE communities as well as to external customers. As of June 30, 2020, Ageility operated 206 outpatient rehabilitation clinics and 40 inpatient rehabilitation clinics. FVE is headquartered in Newton, Massachusetts.

Five Star Senior Living Inc.

Condensed Consolidated Statements of Operations

(amounts in thousands, except per share amounts)

(unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2020

 

2019

 

2020

 

2019

REVENUES

 

 

 

 

 

 

 

 

Senior living

 

$

19,590

 

 

$

263,008

 

 

$

40,587

 

 

$

529,171

 

Management fees

 

15,705

 

 

4,024

 

 

32,756

 

 

8,007

 

Rehabilitation and wellness services

 

19,268

 

 

11,488

 

 

40,652

 

 

22,260

 

Total management and operating revenues

 

54,563

 

 

278,520

 

 

113,995

 

 

559,438

 

Reimbursed community-level costs incurred on behalf of managed communities

 

224,104

 

 

77,219

 

 

456,120

 

 

151,824

 

Other reimbursed expenses

 

6,417

 

 

 

 

12,414

 

 

 

Total revenues

 

285,084

 

 

355,739

 

 

582,529

 

 

711,262

 

Other operating income

 

1,499

 

 

 

 

1,499

 

 

 

Total revenues and other operating income

 

286,583

 

 

355,739

 

 

584,028

 

 

711,262

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

Senior living wages and benefits

 

9,705

 

 

137,259

 

 

19,505

 

 

273,637

 

Other senior living operating expenses

 

8,331

 

 

71,301

 

 

11,573

 

 

146,967

 

Rehabilitation and wellness services expenses

 

15,451

 

 

9,265

 

 

32,471

 

 

17,619

 

Community-level costs incurred on behalf of managed communities

 

224,104

 

 

77,219

 

 

456,120

 

 

151,824

 

General and administrative

 

23,567

 

 

20,548

 

 

46,432

 

 

47,050

 

Rent

 

1,378

 

 

33,262

 

 

2,555

 

 

87,804

 

Depreciation and amortization

 

2,703

 

 

2,941

 

 

5,404

 

 

11,106

 

Loss on sale of senior living communities

 

 

 

101

 

 

 

 

101

 

Long-lived asset impairment

 

 

 

112

 

 

 

 

3,260

 

Total operating expenses

 

285,239

 

 

352,008

 

 

574,060

 

 

739,368

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

1,344

 

 

3,731

 

 

9,968

 

 

(28,106)

 

 

 

 

 

 

 

 

 

 

Interest, dividend and other income

 

182

 

 

415

 

 

521

 

 

571

 

Interest and other expense

 

(409)

 

 

(906)

 

 

(791)

 

 

(1,812)

 

Unrealized gain (loss) on equity investments

 

867

 

 

(38)

 

 

(595)

 

 

328

 

Realized gain on sale of debt and equity investments

 

116

 

 

144

 

 

95

 

 

236

 

Loss on termination of leases

 

 

 

 

 

(22,899)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes and equity in earnings of an investee

 

2,100

 

 

3,346

 

 

(13,701)

 

 

(28,783)

 

Benefit (provision) for income taxes

 

902

 

 

705

 

 

(506)

 

 

(785)

 

Equity in earnings of an investee

 

 

 

130

 

 

 

 

534

 

Net income (loss)

 

$

3,002

 

 

$

4,181

 

 

$

(14,207)

 

 

$

(29,034)

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding—basic

 

31,460

 

 

5,007

 

 

31,454

 

 

5,005

 

Weighted average shares outstanding—diluted

 

31,582

 

 

5,142

 

 

31,454

 

 

5,005

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share—basic

 

$

0.10

 

 

$

0.84

 

 

$

(0.45)

 

 

$

(5.80)

 

Net income (loss) per share—diluted

 

$

0.10

 

 

$

0.81

 

 

$

(0.45)

 

 

$

(5.80)

 

Five Star Senior Living Inc.

Reconciliation of Non-GAAP Financial Measures

(dollars in thousands)

(unaudited)

Non-GAAP financial measures are financial measures that are not determined in accordance with GAAP. FVE believes the non-GAAP financial measures presented in the table below are meaningful supplemental disclosures because they may help investors better understand changes in FVE’s operating results and its ability to pay rent or service debt, make capital expenditures and expand its business. These non-GAAP financial measures may also help investors make comparisons between FVE and other companies on both a GAAP and non-GAAP basis. FVE believes that EBITDA and Adjusted EBITDA are meaningful financial measures that may help investors better understand its financial performance, including by allowing investors to compare FVE's performance between periods and to the performance of other companies. FVE management uses EBITDA and Adjusted EBITDA to evaluate FVE’s financial performance and compare FVE’s performance over time and to the performance of other companies. FVE calculates EBITDA and Adjusted EBITDA as shown below. These measures should not be considered as alternatives to net income (loss) or operating income (loss), as indicators of FVE’s operating performance or as measures of FVE’s liquidity. Also, EBITDA and Adjusted EBITDA as presented may not be comparable to similarly titled amounts calculated by other companies.

FVE believes that net income (loss) is the most directly comparable financial measure, determined according to GAAP, to FVE’s presentation of EBITDA and Adjusted EBITDA. The following table presents the reconciliation of these non-GAAP financial measures to net income (loss) for each of the three and six months ended June 30, 2020 and 2019.

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2020

 

2019

 

2020

 

2019

Net income (loss)

 

$

3,002

 

 

$

4,181

 

 

$

(14,207)

 

 

$

(29,034)

 

Add (less):

 

 

 

 

 

 

 

 

Interest and other expense

 

409

 

 

906

 

 

791

 

 

1,812

 

Interest, dividend and other income

 

(182)

 

 

(415)

 

 

(521)

 

 

(571)

 

(Benefit) provision for income taxes

 

(902)

 

 

(705)

 

 

506

 

 

785

 

Depreciation and amortization

 

2,703

 

 

2,941

 

 

5,404

 

 

11,106

 

EBITDA

 

5,030

 

 

6,908

 

 

(8,027)

 

 

(15,902)

 

Add (less):

 

 

 

 

 

 

 

 

Long-lived asset impairment

 

 

 

112

 

 

 

 

3,260

 

Loss on sale of senior living communities

 

 

 

101

 

 

 

 

101

 

Severance (1)

 

282

 

 

393

 

 

282

 

 

393

 

Litigation settlement (2)

 

2,473

 

 

 

 

2,473

 

 

 

Unrealized (gain) loss on equity investments

 

(867)

 

 

38

 

 

595

 

 

(328)

 

Loss on termination of leases (3)

 

 

 

 

 

22,899

 

 

 

Transaction costs (4)

 

175

 

 

1,133

 

 

1,270

 

 

8,808

 

Adjusted EBITDA

 

$

7,093

 

 

$

8,685

 

 

$

19,492

 

 

$

(3,668)

 

 

 

 

 

 

 

 

 

 

(1) Costs incurred for the three months ended June 30, 2020 represent those related to a reduction in workforce.

(2) Represents costs incurred related to the settlement of a lawsuit and is included in other senior living operating expenses in our condensed consolidated statements of operations. The agreed upon settlement remains subject to a final definitive settlement agreement and to court and regulatory approvals.

(3) Represents the excess of the fair value of the Share Issuances of $97,899 compared to the consideration of $75,000 paid by DHC, as described in the Selected Pro Forma Condensed Consolidated Financial Information and Other Data in the Supplemental Information of this press release.

(4) Includes costs incurred related to the Restructuring Transactions as described in the Selected Pro Forma Condensed Consolidated Financial Information and Other Data in the Supplemental Information of this press release.

Five Star Senior Living Inc.

Condensed Consolidated Balance Sheets

(dollars in thousands, except per share amounts)

(unaudited)

 

 

June 30,

 

December 31,

 

 

2020

 

2019

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

76,114

 

 

$

31,740

 

Restricted cash and cash equivalents

 

23,858

 

 

23,995

 

Accounts receivable, net of allowance

 

9,387

 

 

34,190

 

Due from related person

 

73,466

 

 

5,533

 

Debt and equity investments

 

21,739

 

 

21,070

 

Prepaid expenses and other current assets

 

19,118

 

 

17,286

 

Assets held for sale

 

 

 

9,554

 

Total current assets

 

223,682

 

 

143,368

 

 

 

 

 

 

Property and equipment, net

 

162,037

 

 

167,247

 

Equity investment of an investee

 

11

 

 

298

 

Restricted cash and cash equivalents

 

781

 

 

1,244

 

Restricted debt and equity investments

 

6,887

 

 

7,105

 

Right of use assets

 

19,459

 

 

20,855

 

Other long-term assets

 

4,254

 

 

5,676

 

Total assets

 

$

417,111

 

 

$

345,793

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

15,567

 

 

$

30,440

 

Accrued expenses and other current liabilities

 

49,525

 

 

55,981

 

Accrued compensation and benefits

 

48,287

 

 

35,629

 

Accrued self-insurance obligations

 

27,755

 

 

23,791

 

Lease liabilities

 

2,977

 

 

2,872

 

Due to related persons

 

592

 

 

2,247

 

Mortgage note payable

 

375

 

 

362

 

Security deposits and current portion of continuing care contracts

 

409

 

 

434

 

Liabilities held for sale

 

 

 

12,544

 

Total current liabilities

 

145,487

 

 

164,300

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

Accrued self-insurance obligations

 

33,381

 

 

33,872

 

Lease liabilities

 

18,161

 

 

19,671

 

Mortgage note payable

 

6,980

 

 

7,171

 

Other long-term liabilities

 

8,996

 

 

798

 

Total long-term liabilities

 

67,518

 

 

61,512

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

Common stock, par value $0.01

 

316

 

 

52

 

Additional paid-in-capital

 

459,801

 

 

362,450

 

Accumulated deficit

 

(257,697)

 

 

(245,184)

 

Accumulated other comprehensive income

 

1,686

 

 

2,663

 

Total shareholders’ equity

 

204,106

 

 

119,981

 

Total liabilities and shareholders' equity

 

$

417,111

 

 

$

345,793

 

Five Star Senior Living Inc.

Supplemental Financial Data

(dollars in thousands)

(unaudited)

Management and Operating Revenues by Product Type

 

Three Months Ended June 30, 2020

Management and Operating Revenues by Product Type:

Senior living

 

Management fees

 

Rehabilitation and wellness services

 

Total revenues

Independent and assisted living community revenues

$

19,590

 

 

$

9,086

 

 

$

 

 

$

28,676

 

Continuing care retirement community revenues

 

 

5,487

 

 

 

 

5,487

 

Skilled nursing facility revenues

 

 

1,132

 

 

 

 

1,132

 

Rehabilitation and wellness services revenues

 

 

 

 

19,268

 

 

19,268

 

Total management and operating revenues

$

19,590

 

 

$

15,705

 

 

$

19,268

 

 

$

54,563

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2019

Management and Operating Revenues by Product Type:

Senior living

 

Management fees

 

Rehabilitation and wellness services

 

Total revenues

Independent and assisted living community revenues

$

127,653

 

 

$

3,178

 

 

$

 

 

$

130,831

 

Continuing care retirement community revenues

97,186

 

 

846

 

 

 

 

98,032

 

Skilled nursing facility revenues

38,169

 

 

 

 

 

 

38,169

 

Rehabilitation and wellness services revenues

 

 

 

 

11,488

 

 

11,488

 

Total management and operating revenues

$

263,008

 

 

$

4,024

 

 

$

11,488

 

 

$

278,520

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2020

Management and Operating Revenues by Product Type:

Senior living

 

Management fees

 

Rehabilitation and wellness services

 

Total revenues

Independent and assisted living community revenues

$

40,587

 

 

$

18,649

 

 

$

 

 

$

59,236

 

Continuing care retirement community revenues

 

 

11,824

 

 

 

 

11,824

 

Skilled nursing facility revenues

 

 

2,283

 

 

 

 

2,283

 

Rehabilitation and wellness services revenues

 

 

 

 

40,652

 

 

40,652

 

Total management and operating revenues

$

40,587

 

 

$

32,756

 

 

$

40,652

 

 

$

113,995

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2019

Management and Operating Revenues by Product Type:

Senior living

 

Management fees

 

Rehabilitation and wellness services

 

Total revenues

Independent and assisted living community revenues

$

253,538

 

 

$

6,277

 

 

$

 

 

$

259,815

 

Continuing care retirement community revenues

194,681

 

 

1,730

 

 

 

 

196,411

 

Skilled nursing facility revenues

80,952

 

 

 

 

 

 

80,952

 

Rehabilitation and wellness services revenues

 

 

 

 

22,260

 

 

22,260

 

Total management and operating revenues

$

529,171

 

 

$

8,007

 

 

$

22,260

 

 

$

559,438

 

Five Star Senior Living Inc.

Supplemental Financial Data

(dollars in thousands)

(unaudited)

Comparable Management and Operating Revenues by Product Type (1)

 

Three Months Ended June 30, 2020

Management and Operating Revenues by Product Type:

Senior living

 

Management fees

 

Rehabilitation and wellness services

 

Total revenues

Independent and assisted living community revenues

$

19,516

 

 

$

3,932

 

 

$

 

 

$

23,448

 

Continuing care retirement community revenues

 

 

1,101

 

 

 

 

1,101

 

Rehabilitation and wellness services revenues

 

 

 

 

15,690

 

 

15,690

 

Total management and operating revenues

$

19,516

 

 

$

5,033

 

 

$

15,690

 

 

$

40,239

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2019

Management and Operating Revenues by Product Type:

Senior living

 

Management fees

 

Rehabilitation and wellness services

 

Total revenues

Independent and assisted living community revenues

$

20,766

 

 

$

3,113

 

 

$

 

 

$

23,879

 

Continuing care retirement community revenues

 

 

732

 

 

 

 

732

 

Rehabilitation and wellness services revenues

 

 

 

 

11,099

 

 

11,099

 

Total management and operating revenues

$

20,766

 

 

$

3,845

 

 

$

11,099

 

 

$

35,710

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2020

Management and Operating Revenues by Product Type:

Senior living

 

Management fees

 

Rehabilitation and wellness services

 

Total revenues

Independent and assisted living community revenues

$

39,847

 

 

$

7,823

 

 

$

 

 

$

47,670

 

Continuing care retirement community revenues

 

 

2,342

 

 

 

 

2,342

 

Rehabilitation and wellness services revenues

 

 

 

 

32,051

 

 

32,051

 

Total management and operating revenues

$

39,847

 

 

$

10,165

 

 

$

32,051

 

 

$

82,063

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2019

Management and Operating Revenues by Product Type:

Senior living

 

Management fees

 

Rehabilitation and wellness services

 

Total revenues

Independent and assisted living community revenues

$

41,245

 

 

$

6,028

 

 

$

 

 

$

47,273

 

Continuing care retirement community revenues

 

 

1,486

 

 

 

 

1,486

 

Rehabilitation and wellness services revenues

 

 

 

 

20,895

 

 

20,895

 

Total management and operating revenues

$

41,245

 

 

$

7,514

 

 

$

20,895

 

 

$

69,654

 

(1) The tables for the three months ended June 30, 2020 and 2019 include data for senior living communities and rehabilitation and wellness services clinics that FVE has continuously owned, continuously leased or continuously managed since April 1, 2019. The tables for the six months ended June 30, 2020 and 2019 include data for senior living communities and rehabilitation and wellness services clinics that FVE has continuously owned, continuously leased or continuously managed since January 1, 2019.

Five Star Senior Living Inc.

Senior Living Segment Data

(dollars in thousands, except per unit amounts)

(unaudited)

 

 

 

Three Months Ended

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

 

2020

 

2020

 

2019

 

2019

 

2019

 

 

 

 

 

 

 

 

 

 

 

Owned and Leased Communities

 

 

 

 

 

 

 

 

 

 

Independent and assisted living communities:

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

19,590

 

 

$

20,997

 

 

$

249,726

 

 

$

257,601

 

 

$

263,008

 

Operating expenses

 

20,165

 

 

17,470

 

 

220,389

 

 

250,841

 

 

244,404

 

Operating income

 

(575)

 

 

3,527

 

 

29,337

 

 

6,760

 

 

18,604

 

Operating margin

 

(2.9)

%

 

16.8

%

 

11.7

%

 

2.6

%

 

7.1

%

Number of communities (end of period)

 

24

 

 

24

 

 

190

 

 

190

 

 

205

 

Number of living units (end of period) (1)

 

2,312

 

 

2,312

 

 

20,948

 

 

20,948

 

 

21,912

 

Occupancy

 

78.3

%

 

81.3

%

 

82.9

%

 

82.9

%

 

83.0

%

RevPAR (2)

 

$

2,813

 

 

$

2,938

 

 

$

3,974

 

 

$

3,943

 

 

$

3,984

 

 

 

 

 

 

 

 

 

 

 

 

Managed Communities (3)

 

 

 

 

 

 

 

 

 

 

Independent and assisted living communities:

 

 

 

 

 

 

 

 

 

 

Management fees

 

$

9,086

 

 

$

9,563

 

 

$

3,221

 

 

$

3,207

 

 

$

3,178

 

Community-level revenues

 

174,648

 

 

184,455

 

 

81,188

 

 

81,380

 

 

81,926

 

Community-level expenses

 

139,175

 

 

143,105

 

 

65,899

 

 

64,491

 

 

61,006

 

Community operating income

 

35,473

 

 

41,350

 

 

15,289

 

 

16,889

 

 

20,920

 

Community operating margin

 

20.3

%

 

22.4

%

 

18.8

%

 

20.8

%

 

25.5

%

Number of communities (end of period)

 

191

 

(4)

193

 

(4)

69

 

 

68

 

 

68

 

Number of living units (end of period) (1)

 

18,148

 

(4)

18,395

 

(4)

8,106

 

 

7,937

 

 

7,853

 

Occupancy

 

79.1

%

 

82.9

%

 

84.0

%

 

85.3

%

 

85.9

%

RevPAR (2)

 

$

3,208

 

 

$

3,360

 

 

$

3,401

 

 

$

3,448

 

 

$

3,477

 

 

 

 

 

 

 

 

 

 

 

 

Continuing care retirement communities:

 

 

 

 

 

 

 

 

 

 

Management fees

 

$

5,487

 

 

$

6,337

 

 

$

888

 

 

$

846

 

 

$

846

 

Community-level revenues

 

110,729

 

 

123,498

 

 

27,502

 

 

26,436

 

 

26,980

 

Community-level expenses

 

99,071

 

 

103,946

 

 

24,998

 

 

25,002

 

 

24,379

 

Community operating income

 

11,658

 

 

19,552

 

 

2,504

 

 

1,434

 

 

2,601

 

Community operating margin

 

10.5

%

 

15.8

%

 

9.1

%

 

5.4

%

 

9.6

%

Number of communities (end of period)

 

39

 

 

40

 

 

9

 

 

9

 

 

9

 

Number of living units (end of period) (1)(5)

 

8,936

 

 

9,301