Five Star Senior Living Inc. Announces Third Quarter 2018 Results

November 14, 2018

NEWTON, Mass.--(BUSINESS WIRE)-- Five Star Senior Living Inc. (Nasdaq: FVE) today announced its financial results for the quarter ended September 30, 2018.

Financial Results for the quarter ended September 30, 2018:

  • Senior living revenue for the third quarter of 2018 decreased 2.5% to $272.7 million from $279.7 million for the same period in 2017, primarily due to Five Star's sale of six senior living communities in December 2017, January 2018, February 2018 and June 2018 to Senior Housing Properties Trust (Nasdaq: SNH), which Five Star is currently managing for SNH, the sale by Five Star and SNH of one skilled nursing facility to a third party in June 2018 that was previously leased to Five Star and a decrease in occupancy, partially offset by an increase in revenues from ancillary services, such as rehabilitation and wellness services. Management fee revenue for the third quarter of 2018 increased 17.4% to $4.0 million, primarily due to an increase in the number of managed communities compared to the same period in 2017.
  • Net loss for the third quarter of 2018 was $21.6 million, or $0.43 per diluted share, compared to net loss of $6.6 million, or $0.13 per diluted share, for the same period in 2017. Net loss for the third quarter of 2017 included a $0.8 million, or $0.02 per diluted share, payment that Five Star received from its former liability insurer related to a previously disclosed litigation matter, or the litigation recovery.
  • Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the third quarter of 2018 was $(12.4) million compared to $4.1 million for the same period in 2017. EBITDA excluding certain items noted in the supplemental information provided below, or Adjusted EBITDA, was $(12.4) million and $3.3 million for the third quarters of 2018 and 2017, respectively. A reconciliation of net loss determined in accordance with U.S. generally accepted accounting principles, or GAAP, to EBITDA and Adjusted EBITDA for the quarters ended September 30, 2018 and 2017 appears later in this press release.

Operating Results for the quarter ended September 30, 2018:

  • Occupancy at owned and leased senior living communities for the third quarter of 2018 was 82.0% compared to 83.0% for the same period in 2017.
  • The average monthly rate at owned and leased senior living communities for the third quarter of 2018 increased 1.1% to $4,701 from $4,648 for the same period in 2017.
  • The percentage of revenue derived from residents’ private resources at owned and leased senior living communities for the third quarter of 2018 was 77.8% compared to 78.1% for the same period in 2017.

Financial Results for the nine months ended September 30, 2018:

  • Senior living revenue for the nine months ended September 30, 2018 decreased 2.9% to $818.1 million from $842.9 million for the same period in 2017, primarily due to Five Star's sale of six senior living communities in December 2017, January 2018, February 2018 and June 2018 to SNH, which Five Star is currently managing for SNH, the sale by Five Star and SNH of one skilled nursing facility to a third party in June 2018 that was previously leased to Five Star and a decrease in occupancy, partially offset by an increase in revenues from ancillary services, such as rehabilitation and wellness services. Management fee revenue for the nine months ended September 30, 2018 increased 8.3% to $11.4 million, primarily due to an increase in the number of managed communities compared to the same period in 2017.
  • Net loss for the nine months ended September 30, 2018 was $50.4 million, or $1.02 per diluted share, compared to net loss of $19.9 million, or $0.40 per diluted share, for the same period in 2017. Net loss for the nine months ended September 30, 2018 included a gain on sale of senior living communities of $7.1 million, or $0.14 per diluted share, primarily due to Five Star's sale of four senior living communities in January, February and June 2018 to SNH, which Five Star is currently managing for SNH. Net loss for the nine months ended September 30, 2017 included the $0.8 million, or $0.02 per diluted share, litigation recovery and a benefit for income taxes of $1.3 million, or $0.03 per diluted share, resulting primarily from Five Star's monetization of alternative minimum tax credits during the second quarter of 2017.
  • EBITDA for the nine months ended September 30, 2018 was $(22.0) million compared to $10.5 million for the same period in 2017. Adjusted EBITDA for the nine months ended September 30, 2018 was $(28.2) million compared to $10.0 million for the same period in 2017. A reconciliation of net loss determined in accordance with GAAP to EBITDA and Adjusted EBITDA for the nine months ended September 30, 2018 and 2017 appears later in this press release.

Other:

  • Five Star faces challenges that are currently negatively impacting its revenues, expenses, cash flows and results from operations, and Five Star expects these challenges to continue at least through 2019. These conditions raise substantial doubt about Five Star’s ability to continue as a going concern. Based on Five Star’s cash balance at September 30, 2018 and projected cash needs for the next 12 months, Five Star’s management believes that Five Star will need to increase its revenues, reduce its costs and/or pursue other transactions to be able to continue to fund its operating and capital requirements and meet its debt covenant obligations.
  • In November 2018, Five Star began managing for SNH a senior living community located in Colorado with 238 living units pursuant to a management agreement with SNH.

Conference Call:

At 10:00 a.m. Eastern Time this morning, President and Chief Executive Officer, Bruce Mackey, and Executive Vice President, Chief Financial Officer and Treasurer, Richard Doyle, will host a conference call to discuss Five Star's third quarter 2018 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. on Wednesday, November 21, 2018. To access the replay, dial (412) 317-0088. The replay pass code is 10123764.

A live audio webcast of the conference call will also be available in a listen-only mode on Five Star’s website, which is located at www.fivestarseniorliving.com. Participants wanting to access the webcast should visit Five Star’s website about five minutes before the call. The archived webcast will be available for replay on Five Star’s website for about one week after the call. The transcription, recording and retransmission in any way ofFive Star’sthird quarter2018conference callarestrictly prohibited without the prior written consent ofFive Star. Five Star’s website is not incorporated as part of this press release.

About Five Star Senior Living Inc.:

Five Star Senior Living Inc. is a senior living and healthcare services company. As of September 30, 2018, Five Star operated 283 senior living communities with 31,805 living units located in 32 states, including 208 communities (22,290 living units) that it owned or leased and 75 communities (9,515 living units) that it managed. These communities include independent living, assisted living, continuing care retirement communities and skilled nursing communities. Five Star is headquartered in Newton, Massachusetts.

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 FIVE STAR USES WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”, “ESTIMATE”, "WILL", “MAY” AND NEGATIVES OR DERIVATIVES OF THESE OR SIMILAR EXPRESSIONS, FIVE STAR IS MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON FIVE STAR’S 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 FIVE STAR’S FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS, INCLUDING:

  • ANY ACTIONS FIVE STAR MAY TAKE TO ADDRESS THE CURRENT SUBSTANTIAL DOUBT AS TO ITS ABILITY TO CONTINUE AS A GOING CONCERN MAY NOT BE SUCCESSFUL. FURTHER, ANY SUCH ACTIONS THAT MAY ADDRESS THAT CONCERN MAY ONLY PROVIDE RELIEF IN THE SHORT TERM AND COULD INCREASE FIVE STAR’S FUTURE COSTS AND THEREBY PREVENT OR LIMIT ITS ABILITY TO OPERATE PROFITABLY IN THE INTERMEDIATE OR LONGER TERM.
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THE INFORMATION CONTAINED IN FIVE STAR’S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER “RISK FACTORS” IN FIVE STAR’S PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE FIVE STAR’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE STATED IN OR IMPLIED BY FIVE STAR’S FORWARD LOOKING STATEMENTS. FIVE STAR’S FILINGS WITH THE SEC ARE AVAILABLE ON THE SEC’S WEBSITE AT WWW.SEC.GOV.

YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.

EXCEPT AS REQUIRED BY LAW, FIVE STAR DOES NOT INTEND TO UPDATE OR CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

   

FIVE STAR SENIOR LIVING INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

2018   2017 2018   2017
Revenues:
Senior living revenue $ 272,701 $ 279,654 $ 818,108 $ 842,938
Management fee revenue 4,009 3,414 11,408 10,531
Reimbursed costs incurred on behalf of managed communities 72,200   64,033   208,009   194,346  
Total revenues 348,910   347,101   1,037,525   1,047,815  
Operating expenses:
Senior living wages and benefits 142,035 138,255 418,917 413,196
Other senior living operating expenses 76,761 71,218 226,302 219,060
Costs incurred on behalf of managed communities 72,200 64,033 208,009 194,346
Rent expense 52,282 51,779 156,640 154,524
General and administrative expenses 18,965 17,851 57,405 56,733
Depreciation and amortization expense 9,137 9,753 26,974 29,040
Loss (gain) on sale of senior living communities 62 (7,131 )
Long lived asset impairment   142   365   528  
Total operating expenses 371,442   353,031   1,087,481   1,067,427  
 
Operating loss (22,532 ) (5,930 ) (49,956 ) (19,612 )
 
Interest, dividend and other income 192 167 577 559
Interest and other expense (466 ) (1,139 ) (1,773 ) (3,200 )
Gain on early extinguishment of debt 143 143
Unrealized gain on equity investments 133 127
Realized gain (loss) on sale of debt and equity investments, net of tax 2   70   (8 ) 351  
 
Loss before income taxes and equity in earnings of an investee (22,671 ) (6,689 ) (51,033 ) (21,759 )
Benefit (provision) for income taxes 263 55 (274 ) 1,330
Equity in earnings of an investee, net of tax 826   31   882   533  
Net loss $ (21,582 ) $ (6,603 ) $ (50,425 ) $ (19,896 )
 
Weighted average shares outstanding—basic and diluted 49,682   49,242   49,643   49,199  
 
Net loss per share—basic and diluted $ (0.43 ) $ (0.13 ) $ (1.02 ) $ (0.40 )
 
   

FIVE STAR SENIOR LIVING INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

 
September 30, December 31,
2018 2017
Assets
Current assets:
Cash and cash equivalents $ 13,128 $ 26,255
Accounts receivable, net of allowance 36,860 38,673
Due from related persons 6,062 4,774
Investments 21,175 22,524
Restricted cash 20,123 20,747
Prepaid expenses and other current assets 26,870 25,132
Assets held for sale   59,080  
Total current assets 124,218   197,185  
 
Property and equipment, net 244,748 251,504
Equity investment of an investee 9,157 8,185
Restricted cash 1,538 1,476
Restricted investments 8,753 10,758
Other long term assets 6,211   6,800  
Total assets $ 394,625   $ 475,908  
 
Liabilities and Shareholders’ Equity
Current liabilities:
Revolving credit facility $ $
Accounts payable and accrued expenses 70,419 74,734
Accrued compensation and benefits 45,057 37,893
Due to related persons 18,757 18,683
Mortgage notes payable 333 316
Accrued real estate taxes 16,430 11,801
Security deposits and current portion of continuing care contracts 3,573 4,073
Other current liabilities 39,187 36,361
Liabilities held for sale   34,781  
Total current liabilities 193,756   218,642  
 
Long term liabilities:
Mortgage notes payable 7,620 7,872
Accrued self insurance obligations 32,248 33,082
Deferred gain on sale and leaseback transaction 61,130 66,087
Other long term liabilities 4,903   5,231  
Total long term liabilities 105,901   112,272  
 
Shareholders’ equity:
Common stock, par value $.01: 75,000,000 shares authorized, 50,579,744 and 50,524,424 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively 506 505
Additional paid in capital 361,595 360,942
Accumulated deficit (268,967 ) (220,489 )
Accumulated other comprehensive income 1,834   4,036  
Total shareholders’ equity 94,968   144,994  
Total liabilities and shareholders’ equity $ 394,625   $ 475,908  
 
 

FIVE STAR SENIOR LIVING INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

 
Nine Months Ended September 30,
2018   2017
Cash flows from operating activities:
Net loss $ (50,425 ) $ (19,896 )
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization expense 26,974 29,040
Gain on early extinguishment of debt (166 )
Gain on sale of senior living communities (7,131 )
Unrealized gain on equity investments (127 )
Realized loss (gain) on sale of debt and equity investments 8 (351 )
Loss on disposal of property and equipment 263 202
Long lived asset impairment 365 528
Equity in earnings of an investee, net of tax (882 ) (533 )
Stock based compensation 654 784
Provision for losses on receivables 3,694 3,632
Amortization of deferred gain on sale and leaseback transaction (4,957 ) (4,956 )
Other noncash expense (income) adjustments, net 279 325
Changes in assets and liabilities:
Accounts receivable (1,881 ) (2,797 )
Prepaid expenses and other assets (1,715 ) (8,853 )
Accounts payable and accrued expenses (2,491 ) 3,821
Accrued compensation and benefits 7,164 8,613
Due from related persons, net (1,670 ) 9,131
Other current and long term liabilities 5,879   6,642  
Cash (used in) provided by operating activities (25,999 ) 25,166  
 
Cash flows from investing activities:
Acquisition of property and equipment (36,941 ) (55,049 )
Purchases of investments (3,239 ) (10,895 )
Proceeds from sale of property and equipment 14,749 30,698
Proceeds from sale of land 750
Proceeds from sale of communities 31,819
Proceeds from sale of investments 6,349   15,681  
Cash provided by (used in) investing activities 12,737   (18,815 )
 
Cash flows from financing activities:
Proceeds from borrowings on revolving credit facility 25,000 40,000
Repayments of borrowings on revolving credit facility (25,000 ) (35,000 )
Repayments of mortgage notes payable (427 ) (14,111 )
Prepayment fees on early extinguishment of debt (132 )
Payment of deferred financing fees   (1,889 )
Cash used in financing activities (427 ) (11,132 )
 
Cash flows from discontinued operations:
Net cash provided by operating activities   1,003  
Net cash flows provided by discontinued operations   1,003  
 
Change in cash and cash equivalents and restricted cash (13,689 ) (3,778 )
Cash and cash equivalents and restricted cash at beginning of period 48,478   33,576  
Cash and cash equivalents and restricted cash at end of period $ 34,789   $ 29,798  
 
Reconciliation of cash and cash equivalents and restricted cash
Cash and cash equivalents $ 13,128 $ 8,706
Restricted cash 21,661   21,092  
Cash and cash equivalents and restricted cash at end of period $ 34,789   $ 29,798  
 
Supplemental cash flow information:
Cash paid for interest $ 1,195 $ 2,913
Cash paid for income taxes, net $ 338 $ 275
 
Non-cash activities:
Real estate sale $ 33,364 $
Mortgage notes assumed by purchaser in real estate sale $ 33,364 $
 
   

FIVE STAR SENIOR LIVING INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands)
(unaudited)

 

Non-GAAP financial measures are financial measures that are not determined in accordance with GAAP. Five Star believes the non-GAAP financial measures presented in the table below are meaningful supplemental disclosures because they may help investors gain a better understanding of changes in Five Star’s operating results and its ability to pay rent or service debt, make capital expenditures and expand its business. These non-GAAP financial measures also may help investors make comparisons between Five Star and other companies on both a GAAP and a non-GAAP basis. Five Star 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 Five Star’s performance between periods and to the performance of other companies. EBITDA and Adjusted EBITDA are used by management to evaluate Five Star’s financial performance and compare Five Star’s performance over time and to the performance of other companies. Five Star 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 Five Star’s operating performance or as measures of Five Star’s liquidity. Also, EBITDA and Adjusted EBITDA as presented may not be comparable to similarly titled amounts calculated by other companies.


Five Star believes that net income (loss) is the most directly comparable financial measure, determined according to GAAP, to Five Star’s presentation of EBITDA and Adjusted EBITDA. The following table presents the reconciliation of these non-GAAP financial measures to net loss for the three and nine months ended September 30, 2018 and 2017.

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

2018   2017 2018   2017
Net loss $ (21,582 ) $ (6,603 ) $ (50,425 ) $ (19,896 )
Add (less):
Interest and other expense 466 1,139 1,773 3,200
(Benefit) provision for income taxes (263 ) (55 ) 274 (1,330 )
Depreciation and amortization expense 9,137 9,753 26,974 29,040
Interest, dividend and other income (192 ) (167 ) (577 ) (559 )
EBITDA (12,434 ) 4,067   (21,981 ) 10,455  
Add (less):
Long lived asset impairment 142 365 528
Costs related to compliance assessment 12 (106 )
Employee litigation matter 605
Litigation recovery (800 ) (800 )
Loss (gain) on sale of senior living communities 62 (7,131 )
Gain on early extinguishment of debt   (143 )   (143 )
Adjusted EBITDA $ (12,360 ) $ 3,266   $ (28,248 ) $ 10,040  
 
   

FIVE STAR SENIOR LIVING INC.
SENIOR LIVING COMMUNITY FINANCIAL DATA(1)
(in thousands)
(unaudited)

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

2018   2017 2018   2017
Senior living revenue:
Independent and assisted living community revenue (owned) $ 18,534 $ 23,870 $ 57,584 $ 71,445
Independent and assisted living community revenue (leased) 108,118 109,028 322,792 325,780
Continuing care retirement community revenue (leased) 96,864 96,842 289,711 293,733
Skilled nursing facility revenue (leased) 40,612 42,319 122,061 129,328
Ageility physical therapy revenue 8,573   7,595   25,960   22,652  
Total senior living revenue $ 272,701   $ 279,654   $ 818,108   $ 842,938  
 
Senior living wages and benefits:
Independent and assisted living community wages and benefits (owned) $ 8,618 $ 9,992 $ 25,782 $ 29,691
Independent and assisted living community wages and benefits (leased) 49,760 46,902 144,060 139,643
Continuing care retirement community wages and benefits (leased) 50,774 49,754 151,502 149,593
Skilled nursing facility wages and benefits (leased) 27,132 26,889 81,628 82,329
Ageility physical therapy wages and benefits 6,021 5,139 17,589 15,253
Insurance and other (2) (270 ) (421 ) (1,644 ) (3,313 )
Total senior living wages and benefits $ 142,035   $ 138,255   $ 418,917   $ 413,196  
 
Other senior living operating expenses:
Independent and assisted living community other operating expenses (owned) $ 5,483 $ 6,089 $ 17,003 $ 18,844
Independent and assisted living community other operating expenses (leased) 28,926 26,161 86,182 80,945
Continuing care retirement community other operating expenses (leased) 27,994 24,828 81,705 77,404
Skilled nursing facility other operating expenses (leased) 11,845 10,490 36,855 35,008
Ageility physical therapy other operating expenses 809 484 1,906 1,426
Insurance and other (2) 1,704   3,166   2,651   5,433  
Total other senior living operating expenses $ 76,761   $ 71,218   $ 226,302   $ 219,060  
 
(1)   Excludes data for managed communities.
(2) Insurance and other expenses primarily relate to Five Star's captive insurance company subsidiary, which mainly participates in Five Star's workers' compensation and professional and general liability insurance programs. Credit balances in senior living wages and benefits represent premiums earned by Five Star's captive insurance company subsidiary in excess of expenses recorded in the applicable period.
 
   

FIVE STAR SENIOR LIVING INC.
COMPARABLE SENIOR LIVING COMMUNITY FINANCIAL DATA(1)
(in thousands)
(unaudited)

 

Three Months Ended
September 30, (2)

Nine Months Ended
September 30, (3)

2018   2017 2018   2017
Senior living revenue:
Independent and assisted living community revenue (owned) $ 18,532 $ 18,477 $ 55,108 $ 55,436
Independent and assisted living community revenue (leased) 108,118 109,028 322,792 325,780
Continuing care retirement community revenue (leased) 96,864 96,842 289,711 293,733
Skilled nursing facility revenue (leased) 40,618 40,508 118,998 123,569
Ageility physical therapy revenue 7,289   7,523   20,989   21,866  
Total senior living revenue $ 271,421   $ 272,378   $ 807,598   $ 820,384  
 
Senior living wages and benefits:
Independent and assisted living community wages and benefits (owned) $ 8,622 $ 8,145 $ 24,882 $ 24,226
Independent and assisted living community wages and benefits (leased) 49,760 46,902 144,060 139,643
Continuing care retirement community wages and benefits (leased) 50,774 49,754 151,502 149,593
Skilled nursing facility wages and benefits (leased) 27,136 25,700 79,580 78,562
Ageility physical therapy wages and benefits 5,103 5,066 14,273 14,715
Insurance and other (4) (270 ) (421 ) (1,644 ) (3,313 )
Total senior living wages and benefits $ 141,125   $ 135,146   $ 412,653   $ 403,426  
 
Other senior living operating expenses:
Independent and assisted living community other operating expenses (owned) $ 5,461 $ 4,748 $ 16,068 $ 14,851
Independent and assisted living community other operating expenses (leased) 28,926 26,161 86,182 80,945
Continuing care retirement community other operating expenses (leased) 27,994 24,828 81,705 77,404
Skilled nursing facility other operating expenses (leased) 11,822 9,618 35,728 32,933
Ageility physical therapy other operating expenses 678 471 1,558 1,302
Insurance and other (4) 1,704   3,166   2,651   5,433  
Total other senior living operating expenses $ 76,585   $ 68,992   $ 223,892   $ 212,868  
 
(1)   Excludes data for managed communities.
(2) Includes data for senior living communities that Five Star has owned or leased continuously since July 1, 2017.
(3) Includes data for senior living communities that Five Star has owned or leased continuously since January 1, 2017.
(4) Insurance and other expenses primarily relate to Five Star's captive insurance company subsidiary, which mainly participates in Five Star's workers' compensation and professional and general liability insurance programs. Credit balances in senior living wages and benefits represent premiums earned by Five Star's captive insurance company subsidiary in excess of expenses recorded in the applicable period.
 
 

FIVE STAR SENIOR LIVING INC.
SENIOR LIVING OTHER OPERATING DATA
(unaudited)

 
Three Months Ended
September 30,   June 30,   March 31,   December 31,   September 30,
2018 2018 2018 2017 2017
Independent and assisted living communities (owned): (1)
Number of communities (end of period) 20 20 22 24 26
Number of units (end of period) 2,108 2,108 2,259 2,474 2,703
Occupancy(2) 81.5 % 81.1 % 80.7 % 82.7 % 82.9 %
Avg. monthly rate(3) $ 3,442 $ 3,392 $ 3,464 $ 3,408 $ 3,410
 
Independent and assisted living communities (leased):
Number of communities (end of period) 128 128 128 128 128
Number of units (end of period) 10,520 10,519 10,510 10,507 10,537
Occupancy(2) 83.7 % 83.6 % 83.4 % 84.4 % 84.6 %
Avg. monthly rate(3) $ 3,991 $ 4,024 $ 4,070 $ 3,978 $ 3,981
 
Continuing care retirement communities (leased):
Number of communities (end of period) 31 31 31 31 31
Number of units (end of period)(4) 7,157 7,158 7,158 7,159 7,163
Occupancy(2) 81.3 % 80.6 % 81.5 % 81.8 % 81.6 %
Avg. monthly rate(3) $ 5,427 $ 5,433 $ 5,584 $ 5,433 $ 5,400
 
Skilled nursing facilities (leased):
Number of communities (end of period) 29 29 30 30 30
Number of units (end of period)(5) 2,505 2,505 2,602 2,602 2,602
Occupancy(2) 76.9 % 74.7 % 75.7 % 77.8 % 80.1 %
Avg. monthly rate(3) $ 6,874 $ 6,926 $ 6,951 $ 6,721 $ 6,725
                     
Total senior living communities (owned and leased):
Number of communities (end of period) 208 208 211 213 215
Number of units (end of period) 22,290 22,290 22,529 22,742 23,005
Occupancy(2) 82.0 % 81.4 % 81.7 % 82.6 % 83.0 %
Avg. monthly rate(3)   $ 4,701     $ 4,709     $ 4,796     $ 4,653     $ 4,648  
 
Managed communities: (1)
Number of communities (end of period) 75 75 72 70 68
Number of units (end of period)(6) 9,515 9,510 9,258 9,043 8,807
Occupancy(2) 86.7 % 86.1 % 86.0 % 86.0 % 85.8 %
Avg. monthly rate(3) $ 4,164 $ 4,242 $ 4,301 $ 4,254 $ 4,243
 
Other ancillary services:
Number of ageility physical therapy inpatient clinics (end of period) 47 47 47 47 47
Number of ageility physical therapy outpatient clinics (end of period) 120 111 108 92 88
Number of home health communities served (end of period) 12 12 12 15 15
 
(1)   Occupancy and average monthly rate for the three months ended December 31, 2017, March 31, 2018 and June 30, 2018 include data for the senior living communities that were sold to SNH during such periods as owned until the time of sale and as managed from the time of sale through the end of such periods.
(2) Includes living units categorized as in service. As a result, the number of living units may change from period to period for reasons other than the acquisition or disposition of senior living communities.
(3) Average monthly rate is calculated by taking the average daily rate, which is defined as total operating revenues for senior living services divided by occupied units during the period, and multiplying it by 30 days.
(4) Includes 1,916 skilled nursing units in communities where assisted living and independent living services are the predominant services provided.
(5) Includes 76 assisted living and independent living units in communities where skilled nursing services are the predominant services provided.
(6) Includes 427 skilled nursing units in communities where assisted living and independent living services are the predominant services provided.
 
   

FIVE STAR SENIOR LIVING INC.
PERCENT BREAKDOWN OF SENIOR LIVING COMMUNITY REVENUE(1)
(unaudited)

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

2018   2017 2018   2017
Independent and assisted living communities (owned):
Private and other sources 98.4 % 99.0 % 98.7 % 98.9 %
Medicaid 1.6 % 1.0 % 1.3 % 1.1 %
Total 100.0 % 100.0 % 100.0 % 100.0 %
 
Independent and assisted living communities (leased):
Private and other sources 98.9 % 98.9 % 98.9 % 99.0 %
Medicaid 1.1 % 1.1 % 1.1 % 1.0 %
Total 100.0 % 100.0 % 100.0 % 100.0 %
 
Continuing care retirement communities (leased):
Private and other sources 74.3 % 74.7 % 74.0 % 73.9 %
Medicare 17.7 % 17.9 % 18.3 % 19.1 %
Medicaid 8.0 % 7.4 % 7.7 % 7.0 %
Total 100.0 % 100.0 % 100.0 % 100.0 %
 
Skilled nursing facilities (leased):
Private and other sources 21.0 % 22.0 % 20.7 % 22.6 %
Medicare 17.1 % 17.7 % 18.5 % 21.0 %
Medicaid 61.9 % 60.3 % 60.8 % 56.4 %
Total 100.0 % 100.0 % 100.0 % 100.0 %
 
Total senior living communities (owned and leased):
Private and other sources 77.8 % 78.1 % 77.7 % 77.8 %
Medicare 9.1 % 9.2 % 9.6 % 10.2 %
Medicaid 13.1 % 12.7 % 12.7 % 12.0 %
Total 100.0 % 100.0 % 100.0 % 100.0 %
 
(1)   Excludes data for managed communities.

Contact: Brad Shepherd, Director, Investor Relations
(617) 796-8245

Source: Five Star Senior Living Inc.

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