EX-99.1 2 a05-5582_1ex99d1.htm EX-99.1

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

 

Contact:

 

 

Timothy A. Bonang

 

 

Manager of Investor Relations

 

 

617-796-8149

 

 

www.fivestarqualitycare.com

 

FIVE STAR QUALITY CARE, INC. ANNOUNCES

FINANCIAL RESULTS FOR THE QUARTER

AND YEAR ENDED DECEMBER 31, 2004

 

                Newton, MA (March 23, 2005).  Five Star Quality Care, Inc. (AMEX: FVE) today announced its financial results for the quarter and year ended December 31, 2004, compared to the same periods in 2003, as follows (in thousands except per share amounts):

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

 

2004

 

2003

 

2004

 

2003

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

169,022

 

$

147,123

 

$

628,005

 

$

575,182

 

Total expenses

 

167,353

 

149,057

 

624,681

 

580,737

 

Total other income (expense)

 

(449

)

(311

)

786

 

(935

)

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

$

1,220

 

$

(2,245

)

$

4,110

 

$

(6,490

)

Provision for income taxes

 

(8

)

—

 

(120

)

—

 

Income (loss) from continuing operations

 

1,212

 

(2,245

)

3,990

 

(6,490

)

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations

 

(147

)

(17

)

(699

)

(1,449

)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1,065

 

$

(2,262

)

$

3,291

 

$

(7,939

)

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

9,290

 

8,514

 

8,716

 

8,482

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted income (loss) per share from continuing operations

 

$

0.13

 

$

(0.27

)

$

0.46

 

$

(0.77

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share

 

$

0.11

 

$

(0.27

)

$

0.38

 

$

(0.94

)

 

On Wednesday, March 23, 2005 at 11:00 a.m. ET, Evrett Benton, president and chief executive officer, and Bruce Mackey, chief financial officer, will host a conference call to discuss the fourth quarter and year-end 2004 results.  Following the company’s remarks, there will be a short question and answer period.

 

The conference call telephone number is (800) 818-5264.  Participants calling from outside the United States and Canada should dial (913) 981-4910.  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 March 29, 2005.  To hear the replay, dial (719) 457-0820. The replay pass code is 8728471.

 

A live oral webcast of the conference call will also be available in a listen-only mode on the company’s web site, which is located at www.fivestarqualitycare.com.  Participants wanting to access the webcast should visit the company’s web site about five minutes before the call.  The archived webcast will be available for replay on the company’s web site for about one week after the call.

 

Five Star Quality Care, Inc. is a healthcare services company which operates senior living communities.  FVE owns and leases 148 communities with 16,573 separate living units located in 27 states.  These communities include independent living, assisted living and skilled nursing facilities.  FVE is headquartered in Newton, Massachusetts.

 

 

(end)

 


Supplemental Information, page 1 of 3

 

FIVE STAR QUALITY CARE, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(amounts in thousands, except per share data)

 

 

 

Three Months
ended December 31,

 

Year ended
December 31,

 

 

 

2004

 

2003

 

2004

 

2003

 

Revenues:

 

 

 

 

 

 

 

 

 

Net revenues from residents

 

164,394

 

145,353

 

614,796

 

573,412

 

Pharmacy revenue

 

4,628

 

1,770

 

13,209

 

1,770

 

Total revenues

 

169,022

 

147,123

 

628,005

 

575,182

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Wages and benefits

 

86,707

 

81,951

 

326,314

 

313,846

 

Other operating expenses

 

42,894

 

35,284

 

159,892

 

149,424

 

Pharmacy expenses

 

4,333

 

1,665

 

12,093

 

1,643

 

Management fee to Sunrise Senior Living Services, Inc.

 

5,096

 

4,373

 

19,293

 

17,272

 

Rent expense

 

22,186

 

20,162

 

83,370

 

77,495

 

General and administrative

 

5,264

 

4,584

 

20,053

 

17,470

 

Depreciation and amortization

 

873

 

1,038

 

3,666

 

3,587

 

Total operating expenses

 

167,353

 

149,057

 

624,681

 

580,737

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

1,669

 

(1,934

)

3,324

 

(5,555

)

Interest and other income

 

96

 

28

 

1,666

 

229

 

Interest expense

 

(545

)

(339

)

(880

)

(1,164

)

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

1,220

 

(2,245

)

4,110

 

(6,490

)

Provision for income taxes

 

(8

)

—

 

(120

)

—

 

Income (loss) from continuing operations

 

1,212

 

(2,245

)

3,990

 

(6,490

)

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations

 

(147

)

(17

)

(699

)

(1,449

)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1,065

 

$

(2,262

)

$

3,291

 

$

(7,939

)

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

9,290

 

8,514

 

8,716

 

8,482

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted income (loss) per share from:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.13

 

$

(0.27

)

$

0.46

 

$

(0.77

)

Discontinued operations

 

(0.02

)

—

 

(0.08

)

(0.17

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share

 

$

0.11

 

$

(0.27

)

$

0.38

 

$

(0.94

)

 


Supplemental Information, page 2 of 3

 

Condensed Balance Sheet Data

 

 

 

(amounts in thousands, except share data)

 

December 31,

 

 

 

2004

 

2003

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

26,194

 

$

17,611

 

Accounts receivable, net of reserve

 

36,742

 

30,581

 

Prepaid expenses and other current assets

 

13,107

 

7,261

 

Total current assets

 

76,043

 

55,453

 

 

 

 

 

 

 

Property and equipment, net

 

95,189

 

55,484

 

Other long term assets

 

51,753

 

36,433

 

Total assets

 

$

222,985

 

$

147,370

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current liabilities

 

$

59,121

 

$

58,145

 

Long term liabilities

 

25,842

 

18,417

 

Mortgages payable, long term

 

42,118

 

6,381

 

Shareholders’ equity: 12,096,634 and 8,513,634 shares issued and outstanding at Dec. 31, 2004 and 2003, respectively

 

95,904

 

64,427

 

Total liabilities and shareholders’ equity

 

$

222,985

 

$

147,370

 

 


Supplemental Information, page 3 of 3

 

As Reported (includes information from the dates operations by FVE commenced):

 

 

Three months ended 12/31

 

Year ended 12/31

 

 

 

2004

 

2003

 

Change

 

2004

 

2003

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues from residents (in 000s)

 

$

164,394

 

$

145,353

 

+13

%

$

614,796

 

$

573,412

 

+7

%

Facility expenses (in 000s)

 

$

129,601

 

$

117,235

 

+8

%

$

486,206

 

$

463,270

 

+5

%

Total expenses (in 000s)

 

$

167,353

 

$

149,057

 

+12

%

$

624,681

 

$

580,737

 

+8

%

No. of communities (end of period)

 

148

 

100

 

+48

 

148

 

100

 

+48

 

No. of living units (end of period)

 

16,573

 

13,924

 

+2,649

 

16,573

 

13,924

 

+2,649

 

Occupancy

 

89

%

90

%

-1

%

89

%

89

%

—

 

Average daily rate

 

$

121

 

$

127

 

-9

%

$

114

 

$

127

 

-11

%

Revenue per day per available unit

 

$

108

 

$

114

 

-9

%

$

101

 

$

113

 

-10

%

Percent of revenues from Medicare

 

15

%

14

%

+1

%

16

%

14

%

+2

%

Percent of revenues from Medicaid

 

24

%

26

%

-2

%

25

%

26

%

-1

%

Percent of revenues from private and other sources

 

61

%

60

%

+1

%

59

%

60

%

-1

%

 

 

 

 

 

Comparable Communities (communities FVE operated continuously since 10/1/03 and 1/1/03, respectively):

 

 

 

 

 

Three months ended 12/31

 

Year ended 12/31

 

 

 

2004

 

2003

 

Change

 

2004

 

2003

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues from residents (in 000s)

 

$

153,540

 

$

145,353

 

+6

%

$

598,184

 

$

571,105

 

+5

%

Facility expenses (in 000s)

 

$

121,303

 

$

117,235

 

+4

%

$

473,143

 

$

461,391

 

+3

%

No. of communities (end of period)

 

100

 

100

 

—

 

97

 

97

 

—

 

No. of living units (end of period)

 

13,924

 

13,924

 

—

 

13,689

 

13,689

 

—

 

Occupancy

 

90

%

89

%

+1

%

90

%

89

%

+1

%

Average daily rate

 

$

120

 

$

118

 

+2

%

$

133

 

$

129

 

+3

%

Revenue per day per available unit

 

$

108

 

$

105

 

+3

%

$

119

 

$

114

 

+3

%

Percent of revenues from Medicare

 

15

%

15

%

—

 

17

%

14

%

+3

%

Percent of revenues from Medicaid

 

25

%

26

%

-1

%

25

%

26

%

-1

%

Percent of revenues from private and other sources

 

60

%

59

%

+1

%

58

%

60

%

-2

%