EX-99.1 3 g81024aexv99w1.txt SUPPLEMENTAL INFORMATION AMERICAN RETIREMENT CORPORATION (ACR) - Q4 2002 DATA SHEET - PAGE 1 OF 2 ------------------------------------------------------------------------------- REVENUE COMPOSITION -------------------------------------------------------------------------------
% of Res. % of Total (in thousands) $ Fees Rev ------- -------- ---------- Retirement Centers Independent living $30,841 36.3% 35.5% Assisted living 10,356 12.2% 11.9% Skilled Nursing 9,605 11.3% 11.1% Therapy Revenue 4,923 5.8% 5.7% Ancillary Services 9,014 10.6% 10.4% Net Entry Fee Income 1,732 2.0% 2.0% ------- ----- ----- 66,471 78.3% 76.5% Freestanding Assisted Living 18,438 21.7% 21.2% ------- ----- ----- Total Resident Fees 84,909 100.0% 97.7% Management Fees 842 1.0% Reimbursable Expenses 1,161 1.3% ------- ----- 2,003 2.3% TOTAL REVENUES $86,912 100.0%
------------------------------------------------------------------------------- SAME COMMUNITY RESULTS* -------------------------------------------------------------------------------
INCLUDING ENTRY FEE COMMUNITIES ** EXCLUDING ENTRY FEE COMMUNITIES -------------------------------------- -------------------------------------- (in thousands) Q4 02 Q4 01 % change Q4 02 Q4 01 % change ------- ------- -------- ------- ------ --------- Resident & HC Revenue $73,302 $67,446 8.7% $58,068 52,721 10.1% Operating Expenses 52,290 47,194 10.8% 40,685 37,368 8.9% ------- ------- ------- ------- Community NOI $21,012 $20,252 3.8% $17,383 $15,353 13.2% NOI Margin 28.7% 30.0% 29.9% 29.1% Q4 02 Q4 01 % change Q4 02 Q4 01 % change ------- ------- -------- ------- ------ --------- # Locations 43 43 39 39 Avg. Occupancy 92% 89% 92% 88% Avg. Occupied Units 8,183 7,827 4.5% 6,581 6,242 5.4% Avg. Mo. Revenue/unit 2,986 2,872 4.0% 2,941 2,815 4.5%
* 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. One community that is currently held for sale and one community that had been temporarily closed as a result of storm damage have been excluded from the comparative data. ** includes approximately $846K increase in entry fee amortization due to actuarial estimate change in Q4 01. ------------------------------------------------------------------------------- REVENUE COMPOSITION BY SOURCE ------------------------------------------------------------------------------- (in thousands)
Q4 02 % ------- ----- Private Pay $77,444 89.1% Medicare 7,772 8.9% Medicaid 1,696 2.0% ------- ----- TOTAL $86,912 100.0%
------------------------------------------------------------------------------- FREESTANDING AL SUMMARY** -------------------------------------------------------------------------------
(in thousands) Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 Q2 02 Q3 02 Q4 02 * -------- -------- -------- ------- ------- ------- ------- ------- Revenue $ 10,206 $ 11,877 $ 13,001 $14,051 $15,214 $16,344 $17,927 $18,437 NOI (1,928) (779) (392) 239 445 1,123 1,852 2,570 NOI Margin 1.7% 2.9% 6.9% 10.3% 13.9% Ending Occupancy 1,407 1,575 1,694 1,794 1,915 2,081 2,250 2,221 Ending Occupancy % 51% 56% 60% 64% 68% 74% 79% 81% Average Monthly Occupancy 1,264 1,470 1,621 1,730 1,819 1,953 2,145 2,206 Monthly Revenue per unit 2,691 2,693 2,673 2,707 2,788 2,790 2,786 2,786
* Q4 02 does not include results from one Freestanding AL that is held for sale ** Consolidated and nonconsolidated excluding 2 minority-owned Joint Ventures; Greenwood Village results have been removed from each quarter in this summary ------------------------------------------------------------------------------- CONSOLIDATED COMMUNITY DATA** -------------------------------------------------------------------------------
Q4 2002 ---------------------- Average Average Capacity Occupancy -------- --------- Independent living 5,389 95.1% Assisted living 3,249 85.2% Alzheimer's 769 83.1% Skilled Nursing 1,221 88.6% ------ ---- Total 10,628 90.5%
** Excludes Freedom Square ------------------------------------------------------------------------------- FREESTANDING AL OCCUPANCY LEVELS** -------------------------------------------------------------------------------
Number of Occupancy Level Locations --------------- --------- 90% - 100% 10 80% - 89% 10 70% - 79% 5 Under 70% 8 -- 33
** Greenwood Village was reclassified as a Retirement Center in Q4 02 [AMERICAN RETIREMENT CORPORATION LOGO] AMERICAN RETIREMENT CORPORATION (ACR) - Q4 2002 DATA SHEET - PAGE 2 OF 2 ------------------------------------------------------------------------------- LOCATION/UNIT CAPACITY BY COMMUNITY TYPE -------------------------------------------------------------------------------
Retirement Center Freestanding AL Total ------------------------------------------- ---------------------- ----------------------- Rental Entry Fee -------------------- ------------------- Locations Capacity Locations Capacity Locations Capacity Locations Capacity --------- -------- --------- -------- --------- -------- --------- -------- Owned-100% * 7 1,699 4 1,721 10 966 21 4,386 Owned-JV 0 0 0 0 3 256 3 256 Leased ** 14 3,826 1 554 20 1,775 35 6,155 Freedom Square 0 0 1 730 0 0 1 730 Managed with Purchase Rights 2 532 0 0 0 0 2 532 Managed-other 1 324 2 506 0 0 3 830 -- ----- - ----- -- ----- -- ------ TOTAL 24 6,381 8 3,511 33 2,997 65 12,889
* One Freestanding AL that is held for sale is included in this summary ** Greenwood Village was reclassified as a Retirement Center in Q4 2002 ------------------------------------------------------------------------------- G&A AS A PERCENTAGE OF COMMUNITY REVENUE -------------------------------------------------------------------------------
(in millions) Q4 02 Q4 01 -------- -------- G&A (A) $ 5,659 $11,135 G&A excl Self-insured medical & Medicare-related items (B) 6,091 8,635 Consolidated Community Revenue $ 84,909 $67,023 Managed Community Revenue 20,618 27,940 -------- ------- Total Community Revenue $105,527 $94,963 PERCENTAGE OF COMMUNITY REVENUE (A) 5.4% 11.7% (B) 5.8% 9.1%
------------------------------------------------------------------------------- ENTRY FEE COMMUNITIES -------------------------------------------------------------------------------
Q4 2002 Resale EF Unit Valuation Entry Fee Units Cashflow Summary (in $000s) (in $000s) (1) -------------------------------- ------------------------------ ------------------------ Net Sales Total Available # of Gross after Available Total Unit (in thousands) Units Occupancy % Units Sales Sales Refunds Units Value (2) ----- ----------- --------- ----- ----- --------- --------- ---------- Owned 1,356 95.1% 66 49 6,192 3,327 9,096 218,361 Leased & Freedom Square 711 89.5% 75 36 3,581 2,888 13,459 110,648 ----- ---- --- -- ----- ----- ------ ------- Total 2,067 93.2% 141 85 9,773 6,215 22,555 329,009
(1) Based on current sale prices (2) Total Unit Value includes all units-sold and unsold ------------------------------------------------------------------------------- COST OF DEBT FINANCING -------------------------------------------------------------------------------
Balance 12/31/2002 ($ in Weighted thousands) % Avg Rate ---------- ----- --------- Fixed Rate 291,784 54.0% 7.91% Floating Rate 133,146 24.6% 6.10% HCPI 115,721 21.4% 19.50% ------- ----- ----- Total 540,651 100.0% 9.94%
------------------------------------------------------------------------------- ARC COMMUNITY VALUATION (BASED UPON REPLACEMENT COST) -------------------------------------------------------------------------------
(in $000s) Retirement Centers Freestanding AL ------------------------------------------ ----------------------------- Freedom Community Owned Leased* Square** Total Owned*** Leased* Total Total ------- ------- -------- --------- -------- ------- ------- --------- (1) Estimated Asset Value 497,737 436,952 84,985 1,019,674 129,550 206,500 336,050 1,355,724 Debt Summary (2) Debt 301,618 70,496 17,454 389,568 67,369 70,901 138,270 527,838 EF Liabilities 47,033 12,576 10,345 69,954 -- -- -- 69,954 (3) Capitalized Leases -- 224,989 24,720 249,709 -- 97,549 97,549 347,258 ------- ------- ------- --------- ------- ------- ------- --------- Subtotal 348,651 308,061 52,519 709,231 67,369 168,450 235,819 945,050 Series B Notes 15,956 --------- Total Debt 961,006 Estimated Net Asset Value 149,086 128,891 32,466 310,443 62,181 38,050 100,231 394,718 Number of Units 3,420 4,380 730 8,530 1,057 1,775 2,832 11,362 Square Footage in 000s 4,400 4,288 652 9,340 849 1,370 2,219 11,559 Asset Value per Unit 145,537 99,761 116,418 119,540 122,564 116,338 118,662 119,321 Asset Value per Sq Ft 113 102 130 109 153 151 151 117 Net Asset Value per Unit 43,592 29,427 44,474 36,394 58,828 21,437 35,392 34,740 Net Asset Value per Sq Ft 34 30 50 33 73 28 45 34
* Greenwood Village has been reclassified from Freestanding AL to a Retirement Center ** nonconsolidated managed community *** excludes 2 minority-owned JVs (1) Estimated Asset Value for Retirement Centers is based upon cost approach valuations contained in third party appraisals, obtained between July 1998 and August 2002, before depreciation. Estimated Asset Value for Freestanding AL's, most of which were developed in the last four years, is based upon actual development cost. Management believes that the actual per unit replacement cost of the Retirement Centers is significantly greater than the actual development costs of the Freestanding AL's. (2) Debt does not include $2.401 million of debt on various land tracts held for sale and $11.910 million of guaranteed debt related to land tracts sold by the company in Q4 2002. Debt related to Leased communities is due to the Capital Lease treatment that requires a debt amount to be reported for each community that falls under the Capital Lease guidelines. (3) Capitalized Lease amount is based upon current GAAP operating lease expense multiplied by 8X. For Freedom Square, it is the owner's distribution multiplied by 8X. [AMERICAN RETIREMENT CORPORATION LOGO] The information included herein may be deemed to constitute forward-looking information made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking information may be affected by certain risks and uncertainties, including those described in American Retirement Corporation's filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking information included herein, American Retirement Corporation's actual results could differ materially from such forward-looking information. American Retirement Corporation does not undertake any obligation to publicly release any revisions to any forward-looking information contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.