EX-99.2 3 a4946031ex992.txt AMERICAN RETIREMENT EXHIBIT 99.2 Exhibit 99.2
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION RETIREMENT CENTER COMMUNITIES - SECOND QUARTER 2005 ($'s in thousands) RETIREMENT CENTER COMMUNITIES: TOTAL ------------------------------------- Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 -------- -------- -------- -------- -------- -------- Resident and healthcare revenue $85,288 $85,578 $86,526 $89,787 $91,482 $93,794 Community operating expense 56,791 56,546 58,168 59,085 60,890 61,869 ------- ------- ------- ------- ------- ------- Community operating contribution 28,497 29,032 28,358 30,702 30,592 31,925 Community operating margin 33.4% 33.9% 32.8% 34.2% 33.4% 34.0% Community operating contribution excluding Amortization of Deferred Entrance Fee Revenue 25,832 26,592 26,249 27,553 28,357 29,226 Ending Occupancy 8,374 8,424 8,436 8,482 8,585 8,567 Ending Occupancy % 94.4% 95.0% 95.1% 95.7% 94.6% 94.8% Average Monthly Occupancy 8,376 8,382 8,408 8,438 8,532 8,572 Monthly Revenue per unit $ 3,394 $ 3,403 $ 3,430 $ 3,547 $ 3,574 $ 3,647 Year to Year % Change 8.0% 6.3% 5.0% 9.8% 5.3% 7.2% Monthly Operating Contribution per unit 1,134 1,155 1,124 1,213 1,195 1,241 Year to Year % Change 13.0% 12.4% 14.2% 16.2% 5.4% 7.5% RETIREMENT CENTER COMMUNITIES: RENTAL COMMUNITIES -------------------------------------------------- Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 -------- -------- -------- -------- -------- -------- Resident and healthcare revenue $55,007 $55,249 $56,306 $57,387 $58,493 $59,919 Community operating expense 34,326 33,983 35,422 35,932 36,739 37,259 ------- ------- ------- ------- ------- ------- Community operating contribution 20,681 21,266 20,884 21,455 21,754 22,660 Community operating margin 37.6% 38.5% 37.1% 37.4% 37.2% 37.8% Ending Occupancy 5,576 5,595 5,581 5,623 5,586 5,597 Ending Occupancy % 95.2% 95.5% 95.2% 96.0% 95.4% 95.7% Average Monthly Occupancy 5,582 5,576 5,580 5,594 5,602 5,596 Monthly Revenue per unit $ 3,285 $ 3,303 $ 3,364 $ 3,420 $ 3,480 $ 3,569 Year to Year % Change 7.5% 6.5% 4.5% 9.0% 5.9% 8.1% Monthly Operating Contribution per unit 1,235 1,271 1,248 1,278 1,294 1,350 Year to Year % Change 11.2% 11.8% 10.3% 7.4% 4.8% 6.2% RETIREMENT CENTER COMMUNITIES: ENTRANCE FEE CCRCs -------------------------------------------------- Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 -------- -------- -------- -------- -------- -------- Resident and healthcare revenue $30,281 $30,329 $30,220 $32,400 $32,989 $33,875 Community operating expense 22,465 22,563 22,746 23,153 24,151 24,610 ------- ------- ------- ------- ------- ------- Community operating contribution 7,816 7,766 7,474 9,247 8,838 9,265 Community operating margin 25.8% 25.6% 24.7% 28.5% 26.8% 27.4% Ending Occupancy 2,798 2,829 2,855 2,859 2,999 2,970 Ending Occupancy % 93.0% 94.0% 94.8% 95.0% 93.3% 93.2% Average Monthly Occupancy 2,795 2,806 2,828 2,844 2,930 2,976 Monthly Revenue per unit $ 3,612 $ 3,603 $ 3,562 $ 3,797 $ 3,753 $ 3,794 Year to Year % Change 9.2% 6.1% 5.9% 11.0% 3.9% 5.3% Monthly Operating Contribution per unit 932 923 881 1,084 1,005 1,038 Year to Year % Change 17.3% 13.0% 25.4% 45.0% 7.9% 12.5% Net Cash Flow per unit (includes Net Resale Cash Flow) 1,326 1,503 1,442 1,217 1,397 1,551 Entrance Fee Sales: Total Entrance Fee (Independent Living) Units 2,066 2,066 2,066 2,064 2,217 2,213 Ending Occupancy % 95.4% 96.3% 97.1% 97.2% 95.8% 95.6% Entrance Fee Sales (in units) 69 84 79 68 70 81 Entrance Fee Sales $10,257 $11,976 $11,931 $ 9,224 $11,589 $14,271 Refunds paid on Entrance Fee Terminations 2,433 2,868 3,181 3,192 4,137 5,293 Net Resale Cash Flow 7,824 9,108 8,750 6,032 7,452 8,978
NOTE: The sales proceeds at entrance fee CCRCs provide a source of financing to the community, thereby reducing the financing costs (interest or lease expense) that it would otherwise incur. As a result of the residents paying an up-front entrance fee, they pay a lower monthly service fee than they would pay at a similar rental community without entrance fees. As a result, entrance fee communities have lower operating margins (but lower non-operating financing costs) than similar rental communities.
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION FREE-STANDING ASSISTED LIVING COMMUNITIES - SECOND QUARTER 2005 ($'s in thousands) FREE-STANDING ASSISTED LIVING COMMUNITIES ----------------------------------------- Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 --------- ---------- ---------- --------- ---------- ----------- Resident and healthcare revenue $22,663 $ 23,532 $ 24,563 $25,506 $ 26,207 $ 26,847 Community operating expense 17,061 17,519 17,657 17,970 18,447 18,027 ------- -------- -------- ------- -------- --------- Community operating contribution 5,602 6,013 6,906 7,536 7,760 8,820 Community operating margin 24.7% 25.6% 28.1% 29.5% 29.6% 32.9% Ending Occupancy 2,394 2,456 2,504 2,533 2,562 2,561 Ending Occupancy % 84.3% 86.5% 88.3% 89.3% 90.1% 89.9% Average Monthly Occupancy 2,384 2,430 2,478 2,521 2,537 2,557 Monthly Revenue per unit $ 3,169 $ 3,228 $ 3,304 $ 3,372 $ 3,443 $ 3,500 Year to Year % Change 8.7% 7.5% 8.2% 9.9% 8.7% 8.4% Monthly Operating Contribution per unit 783 825 929 996 1,020 1,150 Year to Year % Change 78.5% 46.3% 39.2% 37.3% 30.2% 39.4%
NOTE: Excludes two non-consolidated joint ventures.
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION INNOVATIVE SENIOR CARE / THERAPY SECOND QUARTER 2006 ($'s in thousands) Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 ---------- ---------- -------- -------- ---------- ---------- Revenues $8,781 $9,207 $9,970 $10,902 $11,745 $12,504 Therapy clinics 81 87 93 96 107 115 Outside clinics (included in above totals) 12 17 23 25 34 41 Therapy staff Full time 248 280 338 354 369 418 Part time 201 205 232 225 208 209
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION SAME COMMUNITY RESULTS - SECOND QUARTER 2005 ($'s in thousands) INCLUDING ENTRANCE FEE COMMUNITIES: ------------------------------------ Three months ended June 30 $ % ------------------------------- 2005 2004 Change Change ------------ ------------ ----------- ------------ Resident & Healthcare revenue $ 119,442 $ 109,110 $ 10,332 9.5% Community operating expense 78,666 74,065 4,601 6.2% ------------ ------------ -------- ------------ Community operating contribution $ 40,776 $ 35,045 5,731 16.4% Community operating margin 34.1% 32.1% # Locations 59 59 Avg. Occupancy 93.8% 92.3% Avg. Occupied Units 10,974 10,812 162 1.5% Avg. Mo. Revenue/unit $ 3,628 $ 3,364 $ 264 7.9% Avg. Mo. Operating Contribution/unit 1,239 1,080 158 14.6% EXCLUDING ENTRANCE FEE COMMUNITIES: ------------------------------------ Three months ended June 30 $ % ------------------------------- 2005 2004 Change Change ------------ ------------ ----------- ------------ Resident & Healthcare revenue $ 86,766 78,781 $ 7,985 10.1% Community operating expense 55,286 51,502 3,784 7.3% ------------ ------------ -------- ------------ Community operating contribution $ 31,480 $ 27,279 4,201 15.4% Community operating margin 36.3% 34.6% # Locations 53 53 Avg. Occupancy 93.7% 92.0% Avg. Occupied Units 8,153 8,006 147 1.8% Avg. Mo. Revenue/unit $ 3,547 $ 3,280 $ 267 8.1% Avg. Mo. Operating Contribution/unit 1,287 1,136 151 13.3%
* 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.
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION REVENUE - SECOND QUARTER 2005 ($'s in thousands) Three months ended June 30, Three months ended June 30, -------------------------------------------------------------- 2005 % 2004 % ---------- ---------- ---------- ---------- COMPOSITION ----------- Revenues: Retirement Centers Independent living $ 39,029 32.0% $ 36,171 32.8% Assisted living 15,150 12.4% 14,337 13.0% Skilled Nursing 20,392 16.8% 19,071 17.3% Ancillary services, including Innovative Senior Care (therapy and wellness programs) 16,524 13.6% 13,559 12.3% Amortization of Deferred Entrance Fee Revenue 2,699 2.2% 2,440 2.3% ---------- ---------- ---------- ---------- 93,794 77.0% 85,578 77.7% Free-Standing Assisted Living Assisted living 23,658 19.4% 21,152 19.2% Ancillary services, including Innovative Senior Care (therapy and wellness programs) 3,189 2.7% 2,380 2.2% ---------- ---------- ---------- ---------- 26,847 22.1% 23,532 21.4% Total Resident and Healthcare Revenue 120,641 99.1% 109,110 99.1% Management and Contract Services 516 0.5% 515 0.5% Reimbursed Expenses 542 0.4% 524 0.4% ---------- ---------- ---------- ---------- 1,058 0.9% 1,039 0.9% ---------- ---------- ---------- ---------- Total Revenues $ 121,699 100.0% $ 110,149 100.0% BY PAYOR -------- Private Pay $ 101,852 83.7% $ 93,907 85.3% Medicare 17,532 14.4% 13,487 12.2% Medicaid 2,315 1.9% 2,755 2.5% ---------- ---------- ---------- ---------- Total $ 121,699 100.0% $ 110,149 100.0%
AMERICAN RETIREMENT CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION OTHER STATISTICS - SECOND QUARTER 2005 UNIT CAPACITY BY COMMUNITY TYPE ------------------------------- At June 30, 2005 --------------------- Locations Capacity --------- ---------- Rental Retirement Centers: Owned-100% 2 272 Leased 20 5,579 Managed - other 3 682 --------- ---------- 25 6,533 Entrance Fee Retirement Centers: Owned-100% 3 918 Owned- 90% - - Leased 3 1,529 Managed-Freedom Square 1 739 Managed-other 2 506 --------- ---------- 9 3,692 Free-Standing AL's: Owned-100% 10 898 Owned-Joint Venture 2 163 Leased 20 1,859 Leased-Joint Venture 1 92 --------- ---------- 33 3,012 All Communities: Owned-100% 15 2,088 Owned- 90% - - Owned-Joint Venture 2 163 Leased 43 8,967 Leased-Joint Venture 1 92 Managed-Freedom Square 1 739 Managed-other 5 1,188 --------- ---------- 67 13,237 Note: Leased communities include both operating and capital leases. The two Owned-Joint Ventures are managed and are not consolidated. Freedom Square is consolidated due to the variable interest entity rules set forth in FIN 46.