Five Star Quality Care reports total revenues of $304.8M for fourth-quarter 2009

Five Star Quality Care, Inc. (NYSE Amex: FVE) today announced its financial results for the quarter and year ended December 31, 2009.

Fourth Quarter 2009 Financial Highlights:

  • Total revenues for the fourth quarter of 2009 increased 4.8% to $304.8 million from $291.0 million for the same period last year.
  • Net income from continuing operations for the fourth quarter of 2009 was $688,000 compared to a net loss of $6.6 million for the same period last year.
  • Net income per share from continuing operations for the fourth quarter of 2009 was $0.02, basic and diluted, compared to a net loss per share from continuing operations of $0.21, basic and diluted, for the same period last year.
  • Net income from continuing operations for the fourth quarter of 2009 included several items that, in the aggregate, had a positive affect of $412,000, or $0.01 per basic and diluted share, on our earnings. These items included a $317,000 gain due to the early extinguishment of our convertible senior notes (the Notes), a $73,000 unrealized gain on our UBS put right related to auction rate securities referred to below and a $22,000 unrealized gain on our holdings of auction rate securities. Net loss from continuing operations for the fourth quarter of 2008 included several items that, in aggregate, had a negative affect of $7.9 million, or $0.25 basic and diluted share, on our loss for the quarter. These items included a $5.4 million loss due to the impairment of our investments in certain marketable securities held by our captive insurance companies, a $5.9 million unrealized loss on our holdings of auction rate securities, a $1.8 million loss due to the impairment of long lived assets and a $5.9 million loss due to impairment of goodwill, offset by a $11.1 million gain resulting from UBS AG’s agreement to repurchase our auction rate securities at par at our election between June 2010 and July 2012 (UBS put right).
  • Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the fourth quarter of 2009 was $5.1 million compared to a loss of $2.0 million for the same period last year. As discussed above, several items positively affected fourth quarter 2009 EBITDA by $412,000 and several items, in aggregate, negatively affected fourth quarter 2008 EBITDA by $7.9 million.

Fourth Quarter 2009 Operating Highlights (Senior Living Communities):

  • Senior living occupancy for the fourth quarter of 2009 was 86.1% compared to 87.7% for the same period last year.
  • Senior living average daily rate for the fourth quarter of 2009 increased by 1.9% to $144.64 from $141.93 in the same period last year.
  • The percentage of senior living revenue derived from private and other resources for the fourth quarter of 2009 increased to 69.7% from 69.6% for the same period last year.
  • For those senior living communities that we have operated continuously since October 1, 2008 (comparable communities), occupancy for the fourth quarter of 2009 was 86.5% compared to 87.9% for the same period last year.
  • The average daily rate at comparable communities for the fourth quarter of 2009 increased by 2.3% to $145.46 from $142.19 in the same period last year.
  • During the fourth quarter, we also commenced leasing from Senior Housing Properties Trust 11 senior living communities with a total of 952 living units. Ten of these communities are assisted living communities and one is a continuing care retirement community which offers independent living, assisted living and skilled nursing services.

Fiscal Year Financial Highlights:

  • Total revenues for the year ended December 31, 2009 increased 8.5% to $1.2 billion from $1.1 billion for the same period last year.
  • Net income from continuing operations for the year ended December 31, 2009 was $39.3 million compared to $615,000 for the same period last year.
  • Net income per share from continuing operations for the year ended December 31, 2009 was $1.17 and $1.07, basic and diluted, respectively, compared to $0.02, basic and diluted, for the same period last year.
  • Net income from continuing operations for the year ended December 31, 2009 included several items that, in aggregate, had a positive affect of $33.2 million, or $0.99 and $0.86 per basic and diluted share, respectively, on our earnings. These items included a $34.6 million gain due to the early extinguishment of the Notes, a $3.5 million unrealized gain on our holdings of auction rate securities and a $795,000 gain on sale of available for sale securities held by our captive insurance companies, offset by a $2.9 million loss due to the impairment of our investments in certain marketable securities held by our captive insurance companies and a $2.8 million unrealized loss on our UBS put right related to auction rate securities. Net income from continuing operations for the year ended December, 31 2008 included several items that, in aggregate, had a negative affect of $16.3 million, or $0.51 per basic and diluted share, on our loss for the year. These items included a $12.0 million unrealized loss on our holdings of auction rate securities, an $8.4 million loss due to the impairment of our investments in certain marketable securities held by our captive insurance companies, a $5.9 million loss due to the impairment of goodwill and a $1.8 million loss due to the impairment of long lived assets, offset by an $11.1 million gain resulting from our UBS put right, and a $743,000 gain recognized on the early extinguishment of debt.
  • EBITDA for the year ended December 31, 2009 was $59.2 million compared to $17.1 million for the same period last year. As discussed above, several items positively affected the year ended December 31, 2009 EBITDA by $33.2 million and several items negatively affected 2008 EBITDA by $16.3 million.


SOURCE Five Star Quality Care, Inc.

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