Five Star Senior Living Inc. Announces Second Quarter 2021 Results
Owned and Leased Communities Sequential Spot Occupancy Growth of
Executed on Strategic Plan by Closing 1,473 Skilled Nursing Facility Units During the Second Quarter
Agreements in Place to Transition Management of 76 Senior Living Communities with Approximately 5,200 Living Units to New Operators Throughout Remainder of 2021
Reported
"During the second quarter, Five Star executed on our Strategic Plan to transform our business to better address the changing needs and preferences of a growing and aging adult population and position Five Star for long term growth. This quarter we closed 1,473 skilled nursing facility units and a corresponding 27 Ageility inpatient clinics. While all the Ageility inpatient clinics will be closed as part of the Strategic Plan, we remain focused on expanding Ageility’s reach and, during the quarter, we opened three net new Ageility outpatient clinics. As of
Resident vaccination levels have increased throughout our senior living portfolio, while confirmed resident COVID-19 cases have declined to pandemic lows. We remain on target to vaccinate all community team members by
Second Quarter Highlights:
- Net loss for the second quarter of 2021 was
$12.3 million , or$0.39 per share, which included$15.4 million of expenses related to our restructuring, partially offset by$11.5 million to be reimbursed by Diversified Healthcare Trust, or DHC, related to the new strategic plan announced by FVE onApril 9, 2021 , or the Strategic Plan, compared to net income of$3.0 million , or$0.10 per share, for the second quarter of 2020. - Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the second quarter of 2021 was
$(8.8) million compared to$5.0 million for the second quarter of 2020. Adjusted EBITDA, as described further below, was$(4.5) million for the second quarter of 2021 compared to$7.1 million for the second quarter of 2020. EBITDA and Adjusted EBITDA are non-GAAP financial measures. Reconciliations of net loss determined in accordance with GAAP to EBITDA and Adjusted EBITDA for the second quarter of 2021 and 2020 are presented later in this press release.
The following tables present data on the senior living communities that FVE owns, leases and manages as well as our Ageility rehabilitation clinics, and our comparable community data.
|
|
As of and for the Three Months Ended |
||||||||||
|
|
|
|
|
|
|
||||||
Senior Living Segment: |
|
|
|
|
|
|
||||||
Spot Occupancy |
|
|
|
|
|
|
||||||
Owned and Leased |
|
69.7 |
% |
|
68.2 |
% |
|
76.3 |
% |
|||
Managed |
|
71.3 |
% |
|
70.2 |
% |
|
77.5 |
% |
|||
|
|
|
|
|
|
|
||||||
Comparable Communities (1) |
|
|
|
|
|
|
||||||
Spot Occupancy |
|
|
|
|
|
|
||||||
Owned and Leased |
|
69.7 |
% |
|
68.6 |
% |
|
76.6 |
% |
|||
Managed |
|
73.3 |
% |
|
73.2 |
% |
|
81.1 |
% |
|||
Operating Margin (2) (3) |
|
|
|
|
|
|
||||||
Owned and Leased |
|
(16.2 |
)% |
|
(13.3 |
)% |
|
(1.2 |
)% |
|||
Managed |
|
10.1 |
% |
|
8.9 |
% |
|
19.8 |
% |
|||
|
|
|
|
|
|
|
||||||
|
|
As of and for the Three Months Ended |
||||||||||
|
|
|
|
|
|
|
||||||
Ageility: |
|
|
|
|
|
|
||||||
Number of Clinics |
|
|
|
|
|
|
||||||
Inpatient (3) |
|
10 |
|
|
37 |
|
|
40 |
|
|||
Outpatient |
|
218 |
|
|
215 |
|
|
206 |
|
|||
Number of Visits (in thousands) |
|
|
|
|
|
|
||||||
Inpatient (3) |
|
36 |
|
|
72 |
|
|
84 |
|
|||
Outpatient |
|
156 |
|
|
149 |
|
|
139 |
|
|||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
Average revenue per clinic |
|
$ |
71 |
|
|
$ |
68 |
|
|
$ |
66 |
|
Operating margin (3) |
|
12.3 |
% |
|
14.4 |
% |
|
12.1 |
% |
_______________________________________
(1) |
|
Comparable communities provides data for 23 owned and leased senior living communities and 120 managed senior living communities that FVE continuously owned, leased or managed since |
(2) |
|
Operating margin is defined as operating revenue less operating expenses incurred by the business unit divided by operating revenue. It is exclusive of Provider Relief Funds from the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, and other governmental grants recognized as other income. It is inclusive of approximately 1,500 SNF units, which have been or are expected to be closed and repositioned, in 27 CCRCs that FVE will continue to manage. In addition, it excludes Restructuring Expenses for the three months ended |
(3) |
|
All Ageility inpatient clinics will be closed as part of the Strategic Plan. During the three months ended |
(4) |
|
Comparable clinics includes financial data for 195 Ageility outpatient clinics that FVE continuously owned and operated since |
Strategic Plan
On
- Reposition the senior living management service offering to focus on larger independent living, assisted living and memory care communities, as well as stand-alone independent living and active adult communities; and exit skilled nursing,
- Evolve through the enhanced scalable shared service center to support operations and growth, the development and delivery of differentiated, customer focused resident experiences,
- Diversify with a focus on revenue diversification opportunities, including growing Ageility rehabilitation services and expanding ancillary services to provide choice based, financially flexible, resident experience and reach customers outside of FVE's senior living communities.
During the three months ended
- Amended its management arrangements with DHC on
June 9, 2021 . - Closed as of
June 30, 2021 , 1,473 of the approximately 1,500 SNF living units planned for closure in 26 of the 27 CCRCs and is in the process of repositioning these SNF living units. - Closed as of
June 30, 2021 , 27 of the planned 37 Ageility inpatient rehabilitation clinics. - In
July 2021 , DHC entered into agreements to transition the management of 76 of the 108 transitioning senior living communities (approximately 5,200 living units) to new operators in 2021.
In connection with the implementation of our Strategic Plan, FVE expects to incur restructuring expenses of up to
Presented below is a summary of the units FVE operated (owned, leased and managed) as of
|
|
As of |
|
Retained |
|
|
Units (1) |
|
Units (2)(3) |
Independent living |
|
10,979 |
|
10,421 |
Assisted living |
|
12,023 |
|
7,854 |
Memory care |
|
3,247 |
|
1,874 |
Skilled nursing |
|
1,484 |
|
— |
Total |
|
27,733 |
|
20,149 |
_______________________________________
(1) |
|
The units operated as of |
(2) |
|
Includes 2,099 owned, 152 leased, and 17,898 managed units. |
(3) |
|
Excludes one community leased by FVE with 51 living units, which has been out of service due to a fire on |
Presented below is a summary of the communities, units, average occupancy, spot occupancy, revenues and management fees for the communities FVE manages for DHC as of and for the three months ended
|
|
As of and for the Three Months Ended |
||||||||||||||||
|
|
Communities |
|
Units |
|
Average Occupancy |
|
Spot Occupancy |
|
Community Revenues (1) |
|
Management Fees (2) |
||||||
Independent and assisted living communities (4) |
|
209 |
|
22,980 |
|
70.0 |
% |
|
71.9 |
% |
|
$ |
149,998 |
|
|
$ |
8,011 |
|
Continuing care retirement communities (4) |
|
10 |
|
1,547 |
|
69.1 |
% |
|
66.3 |
% |
|
77,637 |
|
|
4,097 |
|
||
Skilled nursing facilities |
|
9 |
|
955 |
|
65.2 |
% |
|
66.2 |
% |
|
16,312 |
|
|
819 |
|
||
Total |
|
228 |
|
25,482 |
|
69.5 |
% |
|
71.3 |
% |
|
$ |
243,947 |
|
|
$ |
12,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Retained |
||||||||||||||||
|
|
Communities |
|
Units |
|
Average Occupancy |
|
Spot Occupancy |
|
Community Revenues (1) |
|
Management Fees (3) |
||||||
Independent and assisted living communities (4) |
|
120 |
|
17,898 |
|
72.9 |
% |
|
73.3 |
% |
|
$ |
159,014 |
|
|
$ |
8,552 |
|
Continuing care retirement communities |
|
— |
|
— |
|
— |
% |
|
— |
% |
|
— |
|
|
— |
|
||
Skilled nursing facilities |
|
— |
|
— |
|
— |
% |
|
— |
% |
|
— |
|
|
— |
|
||
Total |
|
120 |
|
17,898 |
|
72.9 |
% |
|
73.3 |
% |
|
$ |
159,014 |
|
|
$ |
8,552 |
|
_______________________________________
(1) |
|
Represents the revenues of the senior living communities FVE manages on behalf of DHC. Managed senior living communities' revenues do not represent FVE's revenues and are included to provide supplemental information regarding the operating results and financial condition of the communities from which FVE earns management fees. |
(2) |
|
The 1,473 SNF units in 26 CCRCs that were closed in the three months ended |
(3) |
|
Excludes management fee revenue of |
(4) |
|
During the three months ended |
Following the implementation of the Strategic Plan, FVE will continue to manage 120 senior living communities for DHC, representing 17,898 living units and approximately 65% of FVE's management fee revenues for the three months ended
The 120 senior living communities that FVE will continue to manage for DHC after the Transition outperformed the total DHC managed portfolio (exclusive of the closed and pending closing and repositioning of approximately 1,500 SNF units in 27 of the CCRCs) for the three months ended
In addition to the Transition of 108 managed communities owned by DHC, the landlord of our four leased senior living communities with approximately 200 living units is currently marketing these properties for sale and FVE is unlikely to operate those communities long-term. One of these leased communities with 51 living units has been out of service due to a fire on
Presented below is a summary of FVE's Ageility rehabilitation clinics as of
|
|
As of and for the |
|
Retained |
||||||||||||||||||||||
|
Number of Clinics |
|
Total Revenue (3) |
|
Average Revenue per Clinic |
|
Adjusted EBITDA Margin |
|
Number of Clinics |
|
Total Revenue (1)(3) |
|
Average Revenue per Clinic |
|
Adjusted EBITDA Margin |
|||||||||||
|
|
10 |
|
$ |
2,630 |
|
|
$ |
n/m |
|
|
4.8 |
% |
|
— |
|
$ |
— |
|
|
$ |
— |
|
|
— |
% |
|
|
91 |
|
8,354 |
|
|
92 |
|
|
13.3 |
% |
|
91 |
|
8,354 |
|
|
92 |
|
|
13.3 |
% |
||||
|
|
44 |
|
1,919 |
|
|
44 |
|
|
17.1 |
% |
|
44 |
|
1,919 |
|
|
44 |
|
|
17.1 |
% |
||||
|
|
145 |
|
12,903 |
|
|
89 |
|
|
12.1 |
% |
|
135 |
|
10,273 |
|
|
76 |
|
|
14.0 |
% |
||||
|
|
83 |
|
4,242 |
|
|
51 |
|
|
8.5 |
% |
|
83 |
|
4,242 |
|
|
51 |
|
|
8.5 |
% |
||||
|
|
228 |
|
$ |
17,145 |
|
|
$ |
75 |
|
|
11.2 |
% |
|
218 |
|
$ |
14,515 |
|
|
$ |
67 |
|
|
12.4 |
% |
_______________________________________
n/m - not meaningful, as the revenues represent revenue earned from 37 inpatient clinics but at |
||
(1) |
|
Excludes revenue of |
(2) |
|
As part of the Transition, FVE expects 108 senior living communities managed on behalf of DHC to be transitioned to new operators. These communities have 44 Ageility outpatient rehabilitation clinics, which, due to the transfer to a new operator, may be subject to closure by the new operator. |
(3) |
|
Total Ageility revenue excludes home health care services, which are a part of the rehabilitation and wellness services segment. |
(4) |
|
Other communities includes outpatient clinics at non-FVE operated or managed communities and 16 outpatient clinics at communities FVE owns. |
FVE expects the rehabilitation and wellness services segment to grow and diversify through our expanded emphasis on fitness and home health care services. Fitness offerings started as an extension of FVE's rehabilitation product and, while representing only 4.7% of segment revenues for the three months ended
FVE currently expects to continue to evolve and diversify through growth of our ancillary rehabilitation and wellness service offerings, including rehabilitation and wellness services, by opening new clinics and expanding our fitness and other home-based service offerings within and outside of its senior living communities. Since
Conference Call Information:
At
The conference call telephone number is (877) 329-4332. Participants calling from outside
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 ended
About
FVE is a provider of senior living management and rehabilitation and wellness services to over 23,000 older adults. Five Star is the fifth largest senior living operator in
|
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
REVENUES |
|
|
|
|
|
|
|
|
||||||||
Rehabilitation and wellness services |
|
$ |
17,453 |
|
|
$ |
19,268 |
|
|
$ |
37,006 |
|
|
$ |
40,652 |
|
Senior living |
|
16,378 |
|
|
19,590 |
|
|
33,435 |
|
|
40,587 |
|
||||
Management fees |
|
12,927 |
|
|
15,705 |
|
|
26,777 |
|
|
32,756 |
|
||||
Total management and operating revenues |
|
46,758 |
|
|
54,563 |
|
|
97,218 |
|
|
113,995 |
|
||||
Reimbursed community-level costs incurred on behalf of managed communities |
|
195,271 |
|
|
224,104 |
|
|
408,431 |
|
|
456,120 |
|
||||
Other reimbursed expenses |
|
16,592 |
|
|
6,417 |
|
|
22,072 |
|
|
12,414 |
|
||||
Total revenues |
|
258,621 |
|
|
285,084 |
|
|
527,721 |
|
|
582,529 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other operating income |
|
2 |
|
|
1,499 |
|
|
7,795 |
|
|
1,499 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
||||||||
Rehabilitation and wellness services expenses |
|
15,668 |
|
|
16,144 |
|
|
31,878 |
|
|
33,645 |
|
||||
Senior living wages and benefits |
|
9,896 |
|
|
9,705 |
|
|
21,909 |
|
|
19,505 |
|
||||
Other senior living operating expenses |
|
8,968 |
|
|
9,016 |
|
|
15,234 |
|
|
12,954 |
|
||||
Community-level costs incurred on behalf of managed communities |
|
195,271 |
|
|
224,104 |
|
|
408,431 |
|
|
456,120 |
|
||||
General and administrative |
|
22,748 |
|
|
23,392 |
|
|
45,139 |
|
|
45,162 |
|
||||
Restructuring expenses |
|
15,389 |
|
|
175 |
|
|
15,639 |
|
|
1,270 |
|
||||
Depreciation and amortization |
|
2,989 |
|
|
2,703 |
|
|
5,929 |
|
|
5,404 |
|
||||
Total operating expenses |
|
270,929 |
|
|
285,239 |
|
|
544,159 |
|
|
574,060 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Operating (loss) income |
|
(12,306 |
) |
|
1,344 |
|
|
(8,643 |
) |
|
9,968 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Interest, dividend and other income |
|
76 |
|
|
182 |
|
|
160 |
|
|
521 |
|
||||
Interest and other expense |
|
(409 |
) |
|
(409 |
) |
|
(872 |
) |
|
(791 |
) |
||||
Unrealized gain (loss) on equity investments |
|
398 |
|
|
867 |
|
|
533 |
|
|
(595 |
) |
||||
Realized gain on sale of debt and equity investments |
|
97 |
|
|
116 |
|
|
193 |
|
|
95 |
|
||||
Loss on termination of leases |
|
— |
|
|
— |
|
|
— |
|
|
(22,899 |
) |
||||
Income (loss) before income taxes |
|
(12,144 |
) |
|
2,100 |
|
|
(8,629 |
) |
|
(13,701 |
) |
||||
(Provision) benefit for income taxes |
|
(158 |
) |
|
902 |
|
|
(358 |
) |
|
(506 |
) |
||||
Net (loss) income |
|
$ |
(12,302 |
) |
|
$ |
3,002 |
|
|
$ |
(8,987 |
) |
|
$ |
(14,207 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding—basic |
|
31,552 |
|
|
31,460 |
|
|
31,541 |
|
|
31,454 |
|
||||
Weighted average shares outstanding—diluted |
|
31,552 |
|
|
31,582 |
|
|
31,541 |
|
|
31,454 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per share—basic |
|
$ |
(0.39 |
) |
|
$ |
0.10 |
|
|
$ |
(0.28 |
) |
|
$ |
(0.45 |
) |
Net (loss) income per share—diluted |
|
$ |
(0.39 |
) |
|
$ |
0.10 |
|
|
$ |
(0.28 |
) |
|
$ |
(0.45 |
) |
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)
(unaudited)
Non-GAAP financial measures are financial measures that are not determined in accordance with
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 the three and six months ended
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net (loss) income |
|
$ |
(12,302 |
) |
|
$ |
3,002 |
|
|
$ |
(8,987 |
) |
|
$ |
(14,207 |
) |
Add (less): |
|
|
|
|
|
|
|
|
||||||||
Interest and other expense |
|
409 |
|
|
409 |
|
|
872 |
|
|
791 |
|
||||
Interest, dividend and other income |
|
(76 |
) |
|
(182 |
) |
|
(160 |
) |
|
(521 |
) |
||||
(Benefit) provision for income taxes |
|
158 |
|
|
(902 |
) |
|
358 |
|
|
506 |
|
||||
Depreciation and amortization |
|
2,989 |
|
|
2,703 |
|
|
5,929 |
|
|
5,404 |
|
||||
EBITDA |
|
(8,822 |
) |
|
5,030 |
|
|
(1,988 |
) |
|
(8,027 |
) |
||||
Add (less): |
|
|
|
|
|
|
|
|
||||||||
Severance (1) |
|
— |
|
|
282 |
|
|
— |
|
|
282 |
|
||||
Litigation settlement (2) |
|
— |
|
|
2,473 |
|
|
— |
|
|
2,473 |
|
||||
Unrealized gain (loss) on equity investments |
|
(398 |
) |
|
(867 |
) |
|
(533 |
) |
|
595 |
|
||||
Loss on termination of leases (3) |
|
— |
|
|
— |
|
|
— |
|
|
22,899 |
|
||||
Net restructuring expenses (4) |
|
3,858 |
|
|
175 |
|
|
4,108 |
|
|
1,270 |
|
||||
Long-lived asset impairment (5) |
|
890 |
|
|
— |
|
|
890 |
|
|
— |
|
||||
Adjusted EBITDA |
|
$ |
(4,472 |
) |
|
$ |
7,093 |
|
|
$ |
2,477 |
|
|
$ |
19,492 |
|
_______________________________________
(1) |
|
Costs incurred for the three and six months ended |
(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 settlement was approved by the court, and paid by FVE on |
(3) |
|
Represents the excess of the fair value of the shares issued to DHC as of |
(4) |
|
Includes costs incurred related to the Strategic Plan announced on |
(5) |
|
Represents asset impairments related to one leased community that had a fire on |
|
||||||||
|
|
|
|
|
||||
|
|
2021 |
|
2020 |
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
99,270 |
|
|
$ |
84,351 |
|
Restricted cash and cash equivalents |
|
23,707 |
|
|
23,877 |
|
||
Accounts receivable, net of allowance |
|
9,036 |
|
|
9,104 |
|
||
Due from related person |
|
80,369 |
|
|
96,357 |
|
||
Debt and equity investments |
|
19,444 |
|
|
19,961 |
|
||
Prepaid expenses and other current assets |
|
20,716 |
|
|
28,658 |
|
||
Total current assets |
|
252,542 |
|
|
262,308 |
|
||
|
|
|
|
|
||||
Property and equipment, net |
|
157,636 |
|
|
159,251 |
|
||
Operating lease right-of-use assets |
|
26,277 |
|
|
18,030 |
|
||
Finance lease right-of-use assets |
|
3,929 |
|
|
4,493 |
|
||
Restricted cash and cash equivalents |
|
1,234 |
|
|
1,369 |
|
||
Restricted debt and equity investments |
|
3,945 |
|
|
4,788 |
|
||
Equity investment of an investee, net |
|
11 |
|
|
11 |
|
||
Other long-term assets |
|
6,103 |
|
|
3,956 |
|
||
Total assets |
|
$ |
451,677 |
|
|
$ |
454,206 |
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
21,833 |
|
|
$ |
23,454 |
|
Accrued expenses and other current liabilities |
|
32,231 |
|
|
41,843 |
|
||
Accrued compensation and benefits |
|
80,720 |
|
|
70,543 |
|
||
Accrued self-insurance obligations |
|
30,921 |
|
|
31,355 |
|
||
Operating lease liabilities |
|
2,201 |
|
|
2,567 |
|
||
Finance lease liabilities |
|
840 |
|
|
808 |
|
||
Due to related persons |
|
4,637 |
|
|
6,585 |
|
||
Mortgage note payable |
|
401 |
|
|
388 |
|
||
Security deposits and current portion of continuing care contracts |
|
318 |
|
|
365 |
|
||
Total current liabilities |
|
174,102 |
|
|
177,908 |
|
||
|
|
|
|
|
||||
Long-term liabilities: |
|
|
|
|
||||
Accrued self-insurance obligations |
|
39,286 |
|
|
37,420 |
|
||
Operating lease liabilities |
|
25,832 |
|
|
17,104 |
|
||
Finance lease liabilities |
|
3,494 |
|
|
3,921 |
|
||
Mortgage note payable |
|
6,579 |
|
|
6,783 |
|
||
Other long-term liabilities |
|
410 |
|
|
538 |
|
||
Total long-term liabilities |
|
75,601 |
|
|
65,766 |
|
||
|
|
|
|
|
||||
Shareholders’ equity: |
|
|
|
|
||||
Common stock, par value |
|
318 |
|
|
317 |
|
||
Additional paid-in-capital |
|
460,737 |
|
|
460,038 |
|
||
Accumulated deficit |
|
(260,129 |
) |
|
(251,139 |
) |
||
Accumulated other comprehensive income |
|
1,048 |
|
|
1,316 |
|
||
Total shareholders’ equity |
|
201,974 |
|
|
210,532 |
|
||
Total liabilities and shareholders' equity |
|
$ |
451,677 |
|
|
$ |
454,206 |
|
|
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Owned and Leased Communities |
|
|
|
|
|
|
|
|
|
|
||||||||||
Independent and assisted living communities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
$ |
16,378 |
|
|
$ |
17,057 |
|
|
$ |
17,903 |
|
|
$ |
18,525 |
|
|
$ |
19,590 |
|
Other operating income (1) |
|
2 |
|
|
7,774 |
|
|
1,715 |
|
|
— |
|
|
— |
|
|||||
Operating expenses |
|
21,012 |
|
|
20,414 |
|
|
21,181 |
|
|
19,661 |
|
|
20,165 |
|
|||||
Operating income (loss) |
|
(4,632 |
) |
|
4,417 |
|
|
(1,563 |
) |
|
(1,136 |
) |
|
(575 |
) |
|||||
Operating margin |
|
(28.3 |
)% |
|
17.8 |
% |
|
(8.0 |
)% |
|
(6.1 |
)% |
|
(2.9 |
)% |
|||||
Number of communities (end of period) |
|
24 |
|
|
24 |
|
|
24 |
|
|
24 |
|
|
24 |
|
|||||
Number of living units (end of period) (2) |
|
2,251 |
|
|
2,302 |
|
|
2,302 |
|
|
2,312 |
|
|
2,312 |
|
|||||
Average occupancy |
|
68.1 |
% |
|
68.3 |
% |
|
71.5 |
% |
|
74.7 |
% |
|
78.3 |
% |
|||||
Spot occupancy |
|
69.7 |
% |
|
68.2 |
% |
|
69.7 |
% |
|
73.0 |
% |
|
76.3 |
% |
|||||
RevPAR (3) |
|
$ |
2,425 |
|
|
$ |
2,479 |
|
|
$ |
2,596 |
|
|
$ |
2,665 |
|
|
$ |
2,813 |
|
RevPOR (4) |
|
$ |
3,524 |
|
|
$ |
3,630 |
|
|
$ |
3,550 |
|
|
$ |
3,492 |
|
|
$ |
3,555 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Managed Communities (5) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Management fees |
|
$ |
12,927 |
|
|
$ |
13,850 |
|
|
$ |
14,822 |
|
|
$ |
15,302 |
|
|
$ |
15,705 |
|
Community-level revenues |
|
243,947 |
|
|
259,966 |
|
|
278,637 |
|
|
290,101 |
|
|
304,103 |
|
|||||
Other operating income (1) |
|
16,564 |
|
|
1,617 |
|
|
12,520 |
|
|
— |
|
|
5,828 |
|
|||||
Community-level expenses (6) |
|
237,461 |
|
|
247,171 |
|
|
261,678 |
|
|
270,333 |
|
|
260,255 |
|
|||||
Community operating income |
|
23,050 |
|
|
14,412 |
|
|
29,479 |
|
|
19,768 |
|
|
49,676 |
|
|||||
Community operating margin |
|
8.8 |
% |
|
5.5 |
% |
|
10.1 |
% |
|
6.8 |
% |
|
16.0 |
% |
|||||
Number of communities (end of period) |
|
228 |
|
|
228 |
|
|
228 |
|
|
239 |
|
|
241 |
|
|||||
Number of living units (end of period) (2) |
|
25,482 |
|
|
26,963 |
|
|
26,969 |
|
|
28,232 |
|
|
28,348 |
|
|||||
Average occupancy |
|
69.5 |
% |
|
69.5 |
% |
|
72.2 |
% |
|
75.2 |
% |
|
78.7 |
% |
|||||
Spot occupancy |
|
71.3 |
% |
|
70.2 |
% |
|
70.8 |
% |
|
74.0 |
% |
|
77.5 |
% |
|||||
RevPAR (3) |
|
$ |
3,086 |
|
|
$ |
3,213 |
|
|
$ |
3,355 |
|
|
$ |
3,420 |
|
|
$ |
3,576 |
|
RevPOR (4) |
|
$ |
4,389 |
|
|
$ |
4,623 |
|
|
$ |
4,543 |
|
|
$ |
4,447 |
|
|
$ |
4,496 |
|
_______________________________________
(1) |
|
Other operating income represents income recognized for funds received under the CARES Act and other governmental grants. |
(2) |
|
Includes living units categorized as in service. As a result, the number of living units may vary from period to period for reasons other than the acquisition or disposition of senior living communities. |
(3) |
|
RevPAR is defined by FVE as resident fee revenues for the corresponding portfolio for the period divided by the average number of available units for the period, divided by the number of months in the period. Data for the three months ended |
(4) |
|
RevPOR is defined by FVE as resident fee revenues for the corresponding portfolio for the period divided by the average number of occupied units for the period, divided by the number of months in the period. Data for the three months ended |
(5) |
|
Managed communities, other than FVE's management fees, represents financial data of communities FVE manages for the account of DHC and does not represent financial results of FVE. Managed communities' data is included to provide supplemental information regarding the operating results and financial condition of the communities from which FVE earns management fees. |
(6) |
|
The three months ended |
|
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
||||||||||
Owned and Leased Communities (1): |
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of communities (end of period) |
|
23 |
|
|
23 |
|
|
23 |
|
|
23 |
|
|
23 |
|
|||||
Number of living units (end of period) (2) |
|
2,251 |
|
|
2,251 |
|
|
2,250 |
|
|
2,260 |
|
|
2,260 |
|
|||||
Average Occupancy |
|
68.0 |
% |
|
68.6 |
% |
|
72.1 |
% |
|
75.1 |
% |
|
78.6 |
% |
|||||
Spot Occupancy |
|
69.7 |
% |
|
68.6 |
% |
|
70.0 |
% |
|
73.5 |
% |
|
76.6 |
% |
|||||
RevPAR (3) |
|
$ |
2,421 |
|
|
$ |
2,480 |
|
|
$ |
2,605 |
|
|
$ |
2,668 |
|
|
$ |
2,811 |
|
RevPOR (4) |
|
$ |
3,520 |
|
|
$ |
3,613 |
|
|
$ |
3,534 |
|
|
$ |
3,475 |
|
|
$ |
3,538 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Managed Communities (1)(5): |
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of communities (end of period) |
|
120 |
|
|
120 |
|
|
120 |
|
|
120 |
|
|
120 |
|
|||||
Number of living units (end of period) (2) |
|
17,898 |
|
|
17,906 |
|
|
17,910 |
|
|
17,929 |
|
|
17,929 |
|
|||||
Average Occupancy |
|
72.9 |
% |
|
72.7 |
% |
|
75.6 |
% |
|
78.5 |
% |
|
82.6 |
% |
|||||
Spot Occupancy |
|
73.3 |
% |
|
73.2 |
% |
|
74.2 |
% |
|
77.0 |
% |
|
81.1 |
% |
|||||
RevPAR (3) |
|
$ |
2,961 |
|
|
$ |
2,946 |
|
|
$ |
3,054 |
|
|
$ |
3,139 |
|
|
$ |
3,301 |
|
RevPOR (4) |
|
$ |
4,018 |
|
|
$ |
4,051 |
|
|
$ |
3,954 |
|
|
$ |
3,942 |
|
|
$ |
3,953 |
|
_______________________________________
(1) |
|
Includes data for senior living communities that FVE has continuously owned, leased or managed since |
(2) |
|
Includes living units categorized as in service. As a result, the number of living units may vary from period to period for reasons other than the acquisition or sale of senior living communities. |
(3) |
|
RevPAR is defined by FVE as resident fee revenues for the corresponding portfolio for the period divided by the average number of available units for the period, divided by the number of months in the period. Data for the three months ended |
(4) |
|
RevPOR is defined by FVE as resident fee revenues for the corresponding portfolio for the period divided by the average number of occupied units for the period, divided by the number of months in the period. Data for the three months ended |
(5) |
|
Senior living segment data for comparable managed communities represents financial data of communities FVE manages for the account of DHC and does not represent financial results of FVE. Managed communities' data is included to provide supplemental information regarding the operating results and financial condition of the communities from which FVE earns management fees. |
|
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
||||||||||
Rehabilitation and Wellness Services (1): |
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
$ |
17,453 |
|
|
$ |
19,553 |
|
|
$ |
20,256 |
|
|
$ |
21,124 |
|
|
$ |
19,268 |
|
Other operating income (2) |
|
— |
|
|
19 |
|
|
221 |
|
|
— |
|
|
1,499 |
|
|||||
Operating expenses (3) |
|
17,517 |
|
|
16,338 |
|
|
16,613 |
|
|
16,833 |
|
|
16,259 |
|
|||||
Operating (loss) income |
|
(64 |
) |
|
3,234 |
|
|
3,864 |
|
|
4,291 |
|
|
4,508 |
|
|||||
Operating margin |
|
(0.4 |
)% |
|
16.5 |
% |
|
18.9 |
% |
|
20.3 |
% |
|
21.7 |
% |
|||||
Number of inpatient clinics (end of period) |
|
10 |
|
|
37 |
|
|
37 |
|
|
40 |
|
|
40 |
|
|||||
Number of outpatient clinics (end of period) |
|
218 |
|
|
215 |
|
|
207 |
|
|
209 |
|
|
206 |
|
_______________________________________
(1) |
|
Includes Ageility clinics and home health operations. |
(2) |
|
Other operating income represents income recognized for funds received under the CARES Act and other governmental grants. |
(3) |
|
The three months ended |
|
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
||||||||||
Rehabilitation and Wellness Services (1): |
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
$ |
14,151 |
|
|
$ |
13,457 |
|
|
$ |
13,800 |
|
|
$ |
14,493 |
|
|
$ |
13,292 |
|
Other operating income (2) |
|
— |
|
|
19 |
|
|
221 |
|
|
— |
|
|
848 |
|
|||||
Operating expenses |
|
12,564 |
|
|
11,679 |
|
|
12,112 |
|
|
12,087 |
|
|
11,772 |
|
|||||
Operating income |
|
1,587 |
|
|
1,797 |
|
|
1,909 |
|
|
2,406 |
|
|
2,368 |
|
|||||
Operating margin |
|
11.2 |
% |
|
13.3 |
% |
|
13.6 |
% |
|
16.6 |
% |
|
16.7 |
% |
|||||
Number of inpatient clinics (end of period) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Number of outpatient clinics (end of period) |
|
195 |
|
|
195 |
|
|
195 |
|
|
195 |
|
|
195 |
|
_______________________________________
(1) |
|
Includes Ageility clinics and home health operations. Comparable clinics includes data for 195 outpatient clinics that FVE has continuously owned and operated since |
(2) |
|
Other operating income represents income recognized for funds received under the CARES Act and other governmental grants. |
|
||||||||||||||||||||||||
No. |
|
Community |
|
State |
|
Property Type (1) |
|
Living Units |
|
Senior Living Revenues (4) |
|
Gross Carrying Value |
|
Net Carrying Value |
|
Date Acquired |
|
Year Built or Most Recent Renovation |
||||||
1 |
|
Morningside of |
|
|
|
AL |
|
49 |
|
$ |
271 |
|
|
$ |
6,938 |
|
|
$ |
3,736 |
|
|
|
|
1999 |
2 |
|
Morningside of |
|
|
|
AL |
|
42 |
|
297 |
|
|
1,578 |
|
|
586 |
|
|
|
|
1997 |
|||
3 |
|
The Palms of |
|
|
|
IL |
|
218 |
|
1,601 |
|
|
6,990 |
|
|
3,755 |
|
|
|
|
1988 |
|||
4 |
|
Five Star Residences of |
|
|
|
AL |
|
121 |
|
664 |
|
|
10,575 |
|
|
6,232 |
|
|
|
|
2006 |
|||
5 |
|
Five Star Residences of |
|
|
|
AL |
|
154 |
|
1,021 |
|
|
8,495 |
|
|
5,244 |
|
|
|
|
1998 |
|||
6 |
|
Five Star Residences of |
|
|
|
AL |
|
88 |
|
341 |
|
|
13,871 |
|
|
8,928 |
|
|
|
|
1999 |
|||
7 |
|
Five Star Residences of |
|
|
|
AL |
|
109 |
|
532 |
|
|
11,144 |
|
|
7,144 |
|
|
|
|
2000 |
|||
8 |
|
Five Star Residences of |
|
|
|
AL |
|
151 |
|
1,033 |
|
|
12,900 |
|
|
8,085 |
|
|
|
|
2005 |
|||
9 |
|
The Villa at Riverwood (2) |
|
|
|
IL |
|
111 |
|
635 |
|
|
4,160 |
|
|
2,583 |
|
|
|
|
1986 |
|||
10 |
|
Voorhees Senior Living (2) |
|
|
|
AL |
|
104 |
|
892 |
|
|
19,004 |
|
|
13,062 |
|
|
|
|
1999 |
|||
11 |
|
Washington Township Senior Living (2) |
|
|
|
AL |
|
93 |
|
958 |
|
|
26,010 |
|
|
17,545 |
|
|
|
|
1998 |
|||
12 |
|
Carriage House Senior Living |
|
|
|
AL |
|
98 |
|
845 |
|
|
9,813 |
|
|
5,403 |
|
|
|
|
1997 |
|||
13 |
|
|
|
|
|
AL |
|
111 |
|
710 |
|
|
16,085 |
|
|
10,806 |
|
|
|
|
1998 |
|||
14 |
|
Fox Hollow Senior Living (2) |
|
|
|
AL |
|
77 |
|
1,000 |
|
|
25,487 |
|
|
17,537 |
|
|
|
|
1999 |
|||
15 |
|
|
|
|
|
AL |
|
116 |
|
1,012 |
|
|
7,048 |
|
|
3,195 |
|
|
|
|
1997 |
|||
16 |
|
Morningside at |
|
|
|
AL |
|
91 |
|
746 |
|
|
3,731 |
|
|
1,675 |
|
|
|
|
1997 |
|||
17 |
|
The Devon Senior Living |
|
|
|
AL |
|
84 |
|
481 |
|
|
31,580 |
|
|
14,808 |
|
|
|
|
1985 |
|||
18 |
|
The Legacy of |
|
|
|
IL |
|
101 |
|
549 |
|
|
10,617 |
|
|
6,231 |
|
|
|
|
2003 |
|||
19 |
|
Morningside of |
|
|
|
AL |
|
54 |
|
428 |
|
|
17,613 |
|
|
10,973 |
|
|
|
|
1984 |
|||
20 |
|
|
|
|
|
AL |
|
127 |
|
826 |
|
|
2,355 |
|
|
1,514 |
|
|
|
|
1999 |
|||
|
|
Total |
|
|
|
|
|
2,099 |
|
$ |
14,842 |
|
|
$ |
245,994 |
|
|
$ |
149,042 |
|
|
|
|
|
_______________________________________
(1) |
|
AL is primarily an assisted living community and IL is primarily an independent living community. |
(2) |
|
Encumbered property under FVE's |
(3) |
|
Encumbered property under FVE's |
(4) |
|
Excludes funds received under the CARES Act recognized as other operating income. |
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
- This press release includes statements regarding the actions that have occurred and steps that are expected to be taken in connection with the implementation of FVE's Strategic Plan and the anticipated timing, costs, savings and benefits related to such steps, as well as FVE's expectations for the operation and performance of the business following implementation of the Strategic Plan. FVE may not be able to implement each of its strategic initiatives in a timely manner or at all, the costs of such initiatives may be more than it expects, it may not realize the benefits it anticipates from the Strategic Plan, and it may not be able to achieve its objectives following implementation of such Strategic Plan, including partially offsetting the revenue loss from the communities it intends to transition with expense reductions to right-size operations, on the anticipated timeline or at all.
-
Ms. Potter states that COVID-19 vaccination levels have increased across FVE's senior living portfolio and FVE remains on target to vaccinate all community team members bySeptember 1, 2021 . However, FVE may not achieve its goal of vaccinating all team member bySeptember 1, 2021 and, despite the high rate of vaccinations, certain residents, team members and clients may still become infected with COVID-19, and the perception of potential infections may reduce the number of new residents moving into FVE's communities, which could impact FVE's operations and financial performance. -
Ms. Potter states that FVE is encouraged by positive momentum in occupancy trends. However, these trends may not continue and occupancy could decline due to a variety of factors, including as a result of the COVID-19 pandemic. - This press release includes statements regarding FVE's intent to expand its Ageility business and growing and diversifying FVE's rehabilitation and wellness offerings. FVE may not be able to achieve these objectives, including if its growth is adversely impacted by the COVID-19 pandemic, and if it does not have sufficient resources to fund the expansion or does not identify new opportunities to grow or diversify the business.
The information contained in FVE’s filings with the
You should not place undue reliance upon forward-looking statements.
Except as required by law, FVE does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210804006004/en/
(617) 796-8245
Source:
Q3 2021 Insurance Labor Outlook Study Results to be Revealed During Webinar
Anthem’s Board Welcomes Susan Dodson DeVore as New Director
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News