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Five Star Senior Living Inc. Announces Second Quarter 2018 Results

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Five Star Senior Living Inc. (NASDAQ:FVE) today announced its financial
results for the quarter ended June 30, 2018.

Financial Results for the quarter ended June 30,
2018:

  • Senior living revenue for the second quarter of 2018 decreased 3.5% to
    $270.9 million from $280.9 million for the same period in
    2017, primarily due to Five Star's sale of four senior living
    communities in December 2017, January 2018 and February 2018 to Senior
    Housing Properties Trust (NASDAQ:SNH) pursuant to a transaction
    agreement between Five Star and SNH, or the 2017 Transaction
    Agreement, and a decrease in occupancy. Management fee revenue for the
    second quarter of 2018 increased 6.3% to $3.8 million, primarily due
    to an increase in the number of managed communities compared to the
    same period in 2017.
  • Net loss for the second quarter of 2018 was $20.9 million, or $0.42
    per diluted share, compared to net loss of $6.5 million, or $0.13 per
    diluted share, for the same period in 2017. Net loss for the second
    quarter of 2018 included a gain on sale of senior living communities
    of $1.5 million, or $0.03 per diluted share, primarily relating to
    Five Star's sale of two senior living communities in June 2018
    pursuant to the 2017 Transaction Agreement. Net loss for the second
    quarter of 2018 included a benefit for income taxes of $1.4 million,
    or $0.03 per diluted share, resulting primarily from Five Star's
    monetization of alternative minimum tax credits during the second
    quarter of 2017.
  • Earnings before interest, taxes, depreciation and amortization, or
    EBITDA, for the second quarter of 2018 was $(11.3) million compared to
    $2.8 million for the same period in 2017. EBITDA excluding certain
    items noted in the supplemental information provided below, or
    Adjusted EBITDA, was $(12.2) million and $3.0 million for the second
    quarters of 2018 and 2017, respectively. A reconciliation of net loss
    determined in accordance with U.S. generally accepted accounting
    principles, or GAAP, to EBITDA and Adjusted EBITDA for the quarters
    ended June 30, 2018 and 2017 appears later in this press release.

Operating Results for the quarter ended June 30,
2018:

  • Occupancy at owned and leased senior living communities for the second
    quarter of 2018 was 81.4% compared to 83.1% for the same period in
    2017.
  • The average monthly rate at owned and leased senior living communities
    for the second quarter of 2018 decreased 0.1% to $4,709 from $4,715
    for the same period in 2017.
  • The percentage of revenue derived from residents' private resources at
    owned and leased senior living communities for the second quarter of
    2018 was 78.0% compared to 77.7% for the same period in 2017.

Financial Results for the six months ended June 30,
2018:

  • Senior living revenue for the six months ended June 30, 2018 decreased
    3.2% to $545.4 million from $563.3 million for the same period in
    2017, primarily due to Five Star's sale of four senior living
    communities in December 2017, January 2018 and February 2018 pursuant
    to the 2017 Transaction Agreement and a decrease in occupancy.
    Management fee revenue for the six months ended June 30, 2018
    increased 4.0% to $7.4 million, primarily due to an increase in the
    number of managed communities compared to the same period in 2017.
  • Net loss for the six months ended June 30, 2018 was $28.8 million, or
    $0.58 per diluted share, compared to net loss of $13.3 million, or
    $0.27 per diluted share, for the same period in 2017. Net loss for the
    six months ended June 30, 2018 included a gain on sale of senior
    living communities of $7.2 million, or $0.14 per diluted share,
    primarily due to Five Star's sale of four senior living communities in
    January, February and June 2018 pursuant to the 2017 Transaction
    Agreement. Net loss for the six months ended June 30, 2017 included a
    benefit for income taxes of $1.3 million, or $0.03 per diluted share,
    resulting primarily from Five Star's monetization of alternative
    minimum tax credits during the second quarter of 2017.
  • EBITDA for the six months ended June 30, 2018 was $(9.5) million
    compared to $6.4 million for the same period in 2017. Adjusted EBITDA
    for the six months ended June 30, 2018 was $(15.9) million compared to
    $6.8 million for the same period in 2017. A reconciliation of net loss
    determined in accordance with GAAP to EBITDA and Adjusted EBITDA for
    the six months ended June 30, 2018 and 2017 appears later in this
    press release.

Other:

As previously disclosed, in November 2017, Five Star agreed to sell six
senior living communities to SNH pursuant to the 2017 Transaction
Agreement for an aggregate sales price of $104.4 million, including $2.4
million of mortgage debt principal that Five Star prepaid in December
2017 in connection with the sale of one of these communities, SNH's
assumption of approximately $33.5 million of mortgage debt principal
secured by certain of these senior living communities and excluding
closing costs. In December 2017, Five Star sold two of these communities
for an aggregate sales price of approximately $39.2 million, excluding
closing costs. In January 2018, Five Star sold one of these communities
for approximately $19.7 million, excluding closing costs. In February
2018, Five Star sold one of these communities for approximately $22.2
million, including SNH's assumption of approximately $16.8 million of
mortgage debt principal and excluding closing costs. In June 2018, Five
Star sold the remaining two senior living communities for an aggregate
sales price of approximately $23.3 million, including SNH's assumption
of approximately $16.6 million of mortgage debt principal and excluding
closing costs. Concurrently with these sales, Five Star entered
management and pooling agreements with SNH to manage these senior living
communities.

In June 2018, Five Star and SNH sold to a third party a skilled nursing
facility located in California which was previously leased to Five Star
for a sales price of approximately $6.5 million, excluding closing
costs. As a result of this sale, Five Star's annual minimum rent payable
to SNH decreased by 10% of the net proceeds that SNH received from this
sale, in accordance with the terms of the applicable lease.

In June 2018, Five Star began managing for SNH a senior living community
located in California with 98 living units pursuant to a management
agreement and Five Star's existing Pooling Agreement No. 12 with SNH,
which Five Star and SNH concurrently amended and restated to include
that senior living community.

Conference Call:

At 10:00 a.m. Eastern Time this morning, President and Chief Executive
Officer, Bruce Mackey, and Executive Vice President, Chief Financial
Officer and Treasurer, Richard Doyle, will host a conference call to
discuss Five Star's second quarter 2018 results.

The conference call telephone number is (877) 329-4332. Participants
calling from outside the United States and Canada should dial (412)
317-5436. 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 11:59 p.m. on Thursday, August 16, 2018. To access the
replay, dial (412) 317-0088. The replay pass code is 10121837.

A live audio webcast of the conference call will also be available in a
listen-only mode on Five Star's website, which is located at www.fivestarseniorliving.com. Participants
wanting to access the webcast should visit Five Star's website about
five minutes before the call. The archived webcast will be available for
replay on Five Star's website for about one week after the call. The
transcription, recording and retransmission in any way of
Five
Star's
second quarter 2018 conference call are
strictly prohibited without the prior written consent of Five
Star.
Five Star's website is not incorporated as part of this press
release.

About Five Star Senior Living Inc.:

Five Star Senior Living Inc. is a senior living and healthcare services
company. As of June 30, 2018, Five Star operated 283 senior living
communities with 31,800 living units located in 32 states, including 208
communities (22,290 living units) that it owned or leased and 75
communities (9,510 living units) that it managed. These communities
include independent living, assisted living, continuing care retirement
communities and skilled nursing communities. Five Star is headquartered
in Newton, Massachusetts.

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 FIVE STAR
USES WORDS SUCH AS "BELIEVE", "EXPECT", "ANTICIPATE", "INTEND", "PLAN",
"ESTIMATE", "WILL", "MAY" AND NEGATIVES OR DERIVATIVES OF THESE OR
SIMILAR EXPRESSIONS, FIVE STAR IS MAKING FORWARD LOOKING STATEMENTS.
THESE FORWARD LOOKING STATEMENTS ARE BASED UPON FIVE STAR'S PRESENT
INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT
GUARANTEED TO OCCUR AND MAY NOT OCCUR. ACTUAL RESULTS MAY DIFFER
MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY FIVE STAR'S FORWARD
LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS.

THE INFORMATION CONTAINED IN FIVE STAR'S FILINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER "RISK FACTORS" IN FIVE
STAR'S PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER
IMPORTANT FACTORS THAT COULD CAUSE FIVE STAR'S ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THOSE STATED IN OR IMPLIED BY FIVE STAR'S FORWARD
LOOKING STATEMENTS. FIVE STAR'S FILINGS WITH THE SEC ARE AVAILABLE ON
THE SEC'S WEBSITE AT WWW.SEC.GOV.

YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.

EXCEPT AS REQUIRED BY LAW, FIVE STAR DOES NOT INTEND TO UPDATE OR CHANGE
ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE
EVENTS OR OTHERWISE.

   

FIVE STAR SENIOR LIVING INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per share
data)

(unaudited)

 

Three Months Ended
June 30,

Six Months Ended
June 30,

2018   2017 2018   2017
Revenues:
Senior living revenue $ 270,882 $ 280,852 $ 545,407 $ 563,284
Management fee revenue 3,777 3,554 7,399 7,117
Reimbursed costs incurred on behalf of managed communities 68,439   65,619   135,809   130,313  
Total revenues 343,098   350,025   688,615   700,714  
Operating expenses:
Senior living wages and benefits 140,713 136,610 276,882 274,941
Other senior living operating expenses 75,764 74,573 149,541 147,842
Costs incurred on behalf of managed communities 68,439 65,619 135,809 130,313
Rent expense 52,113 51,514 104,358 102,745
General and administrative expenses 18,477 19,345 38,440 38,882
Depreciation and amortization expense 8,977 9,801 17,837 19,287
Gain on sale of senior living communities (1,509 ) (7,193 )
Long lived asset impairment 365   176   365   386  
Total operating expenses 363,339   357,638   716,039   714,396  
 
Operating loss (20,241 ) (7,613 ) (27,424 ) (13,682 )
 
Interest, dividend and other income 218 208 385 392
Interest and other expense (604 ) (1,083 ) (1,307 ) (2,061 )
Unrealized gain (loss) on equity investments 44 (6 )
Realized (loss) gain on sale of debt and equity investments, net of
tax
(42 ) 242   (10 ) 281  
 
Loss before income taxes and equity in earnings of an investee (20,625 ) (8,246 ) (28,362 ) (15,070 )
(Provision) benefit for income taxes (281 ) 1,366 (537 ) 1,275
Equity in earnings of an investee, net of tax 12   374   56   502  
Net loss $ (20,894 ) $ (6,506 ) $ (28,843 ) $ (13,293 )
 
Weighted average shares outstanding—basic and diluted 49,653   49,192   49,624   49,177  
 
Net loss per share—basic and diluted $ (0.42 ) $ (0.13 ) $ (0.58 ) $ (0.27 )
 

FIVE STAR SENIOR LIVING INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
(unaudited)

   
June 30, December 31,
2018 2017
Assets
Current assets:
Cash and cash equivalents $ 22,137 $ 26,255
Accounts receivable, net of allowance 35,849 38,673
Due from related persons 6,502 4,774
Investments 19,556 22,524
Restricted cash 19,842 20,747
Prepaid expenses and other current assets 20,677 25,132
Assets held for sale   59,080  
Total current assets 124,563   197,185  
 
Property and equipment, net 247,628 251,504
Equity investment of an investee 8,158 8,185
Restricted cash 1,841 1,476
Restricted investments 11,024 10,758
Other long term assets 6,145   6,800  
Total assets $ 399,359   $ 475,908  
 
Liabilities and Shareholders' Equity
Current liabilities:
Revolving credit facility $ $
Accounts payable and accrued expenses 62,968 74,734
Accrued compensation and benefits 40,635 37,893
Due to related persons 18,567 18,683
Mortgage notes payable 327 316
Accrued real estate taxes 11,536 11,801
Security deposits and current portion of continuing care contracts 3,760 4,073
Other current liabilities 35,332 36,361
Liabilities held for sale   34,781  
Total current liabilities 173,125   218,642  
 
Long term liabilities:
Mortgage notes payable 7,705 7,872
Accrued self insurance obligations 34,656 33,082
Deferred gain on sale and leaseback transaction 62,782 66,087
Other long term liabilities 4,905   5,231  
Total long term liabilities 110,048   112,272  
 
Shareholders' equity:
Common stock, par value $.01: 75,000,000 shares authorized,
50,585,604 and 50,524,424 shares issued and outstanding at June 30,
2018 and December 31, 2017, respectively
506 505
Additional paid in capital 361,432 360,942
Accumulated deficit (247,385 ) (220,489 )
Accumulated other comprehensive income 1,633   4,036  
Total shareholders' equity 116,186   144,994  
Total liabilities and shareholders' equity $ 399,359   $ 475,908  
 

FIVE STAR SENIOR LIVING INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)

(unaudited)

 
Six Months Ended June 30,
2018   2017
Cash flows from operating activities:
Net loss $ (28,843 ) $ (13,293 )
Adjustments to reconcile net loss to cash provided by (used in)
operating activities:
Depreciation and amortization expense 17,837 19,287
Gain on sale of senior living communities (7,193 )
Unrealized loss on equity investments 6
Realized loss (gain) on sale of debt and equity investments 10 (281 )
Loss on disposal of property and equipment 209 113
Long lived asset impairment 365 386
Equity in earnings of an investee, net of tax (56 ) (502 )
Stock based compensation 491 558
Provision for losses on receivables 2,637 2,418
Amortization of deferred gain on sale and leaseback transaction (3,305 ) (3,304 )
Other noncash expense (income) adjustments, net 96 265
Changes in assets and liabilities:
Accounts receivable 187 (3,343 )
Prepaid expenses and other assets 4,766 559
Accounts payable and accrued expenses (11,165 ) (1,299 )
Accrued compensation and benefits 2,742 3,680
Due from related persons, net (1,798 ) 6,938
Other current and long term liabilities (302 ) (609 )
Cash (used in) provided by operating activities (23,316 ) 11,573  
 
Cash flows from investing activities:
Acquisition of property and equipment (23,680 ) (38,012 )
Purchases of investments (2,682 ) (9,389 )
Proceeds from sale of property and equipment 8,529 19,308
Proceeds from sale of communities 31,853
Proceeds from sale of investments 4,981   12,791  
Cash provided by (used in) investing activities 19,001   (15,302 )
 
Cash flows from financing activities:
Proceeds from borrowings on revolving credit facility 5,000 35,000
Repayments of borrowings on revolving credit facility (5,000 ) (35,000 )
Repayments of mortgage notes payable (343 ) (672 )
Payment of deferred financing fees   (1,898 )
Cash used in financing activities (343 ) (2,570 )
 
Cash flows from discontinued operations:
Net cash provided by operating activities   1,003  
Net cash flows provided by discontinued operations   1,003  
 
Change in cash and cash equivalents and restricted cash (4,658 ) (5,296 )
Cash and cash equivalents and restricted cash at beginning of period 48,478   33,576  
Cash and cash equivalents and restricted cash at end of period $ 43,820   $ 28,280  
 
Reconciliation of cash and cash equivalents and restricted cash
Cash and cash equivalents $ 22,137 $ 7,200
Restricted cash 21,683   21,080  
Cash and cash equivalents and restricted cash at end of period $ 43,820   $ 28,280  
 
Supplemental cash flow information:
Cash paid for interest $ 1,002 $ 1,914
Cash paid for income taxes, net $ 348 $ 198
 
Non-cash activities:
Real estate sale $ 33,364 $
Mortgage notes assumed by purchaser in real estate sale $ 33,364 $
 

FIVE STAR SENIOR LIVING INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
(in thousands)
(unaudited)

 

Non-GAAP financial measures are financial measures that are not
determined in accordance with GAAP. Five Star believes the
non-GAAP financial measures presented in the table below are
meaningful supplemental disclosures because they may help
investors gain a better understanding of changes in Five Star's
operating results and its ability to pay rent or service debt,
make capital expenditures and expand its business. These non-GAAP
financial measures also may help investors make comparisons
between Five Star and other companies on both a GAAP and a
non-GAAP basis. Five Star believes that EBITDA and Adjusted EBITDA
are meaningful financial measures that may help investors better
understand its financial performance, including by allowing
investors to compare Five Star's performance between periods and
to the performance of other companies. EBITDA and Adjusted EBITDA
are used by management to evaluate Five Star's financial
performance and compare Five Star's performance over time and to
the performance of other companies. Five Star calculates EBITDA
and Adjusted EBITDA as shown below. These measures should not be
considered as alternatives to net income (loss) or operating
income (loss), as indicators of Five Star's operating performance
or as measures of Five Star's liquidity. Also, EBITDA and Adjusted
EBITDA as presented may not be comparable to similarly titled
amounts calculated by other companies.

 

Five Star believes that net income (loss) is the most directly
comparable financial measure, determined according to GAAP, to
Five Star's presentation of EBITDA and Adjusted EBITDA. The
following table presents the reconciliation of these non-GAAP
financial measures to net loss for the three and six months ended
June 30, 2018 and 2017.

   

Three Months Ended
June 30,

Six Months Ended
June 30,

2018   2017 2018   2017
Net loss $ (20,894 ) $ (6,506 ) $ (28,843 ) $ (13,293 )
Add: interest and other expense 604 1,083 1,307 2,061
Add (less): provision (benefit) for income taxes 281 (1,366 ) 537 (1,275 )
Add: depreciation and amortization expense 8,977 9,801 17,837 19,287
Less: interest, dividend and other income (218 ) (208 ) (385 ) (392 )
EBITDA (11,250 ) 2,804   (9,547 ) 6,388  
Add (less):
Long lived asset impairment 365 176 365 386
Costs related to compliance assessment 20 (118 )
Employee litigation matter 224 605
Gain on sale of senior living communities (1,509 )   (7,193 )  
Adjusted EBITDA $ (12,150 ) $ 2,980   $ (15,888 ) $ 6,774  
 
 

FIVE STAR SENIOR LIVING INC.
SENIOR LIVING COMMUNITY
FINANCIAL DATA(1)
(in thousands)
(unaudited)

   

Three Months Ended
June 30,

Six Months Ended
June 30,

2018   2017 2018   2017
Senior living revenue:
Independent and assisted living community revenue (owned) $ 19,331 $ 23,872 $ 39,049 $ 47,575
Independent and assisted living community revenue (leased) 107,380 108,544 214,674 216,753
Continuing care retirement community revenue (leased) 95,070 97,709 192,848 196,891
Skilled nursing facility revenue (leased) 40,365 43,271 81,449 87,009
Ageility physical therapy revenue 8,736   7,456   17,387   15,056  
Total senior living revenue $ 270,882   $ 280,852   $ 545,407   $ 563,284  
 
Senior living wages and benefits:
Independent and assisted living community wages and benefits (owned) $ 8,781 $ 9,818 $ 17,163 $ 19,699
Independent and assisted living community wages and benefits (leased) 47,850 45,965 94,300 92,741
Continuing care retirement community wages and benefits (leased) 50,787 49,349 100,729 99,839
Skilled nursing facility wages and benefits (leased) 27,690 27,483 54,496 55,441
Ageility physical therapy wages and benefits 5,894 4,995 11,568 10,112
Insurance and other (2) (289 ) (1,000 ) (1,374 ) (2,891 )
Total senior living wages and benefits $ 140,713   $ 136,610   $ 276,882   $ 274,941  
 
Other senior living operating expenses:
Independent and assisted living community other operating expenses
(owned)
$ 5,844 $ 6,349 $ 11,519 $ 12,755
Independent and assisted living community other operating expenses
(leased)
29,048 27,708 57,256 54,781
Continuing care retirement community other operating expenses
(leased)
27,273 26,516 53,712 52,576
Skilled nursing facility other operating expenses (leased) 12,038 12,606 25,010 24,518
Ageility physical therapy other operating expenses 633 551 1,101 942
Insurance and other (2) 928   843   943   2,270  
Total other senior living operating expenses $ 75,764   $ 74,573   $ 149,541   $ 147,842  
 
 
(1) Excludes data for managed communities.
(2) Insurance and other expenses primarily relate to Five Star's captive
insurance company subsidiary, which mainly participates in Five
Star's workers' compensation and professional and general liability
insurance programs. Credit balances in senior living wages and
benefits represent premiums earned by Five Star's captive insurance
company subsidiary in excess of expenses recorded in the applicable
period.
 

FIVE STAR SENIOR LIVING INC.
COMPARABLE SENIOR LIVING
COMMUNITY FINANCIAL DATA(1)
(in thousands)
(unaudited)

   

Three Months Ended
June 30, (2)

Six Months Ended
June 30,(3)

2018   2017 2018   2017
Senior living revenue:
Independent and assisted living community revenue (owned) $ 18,391 $ 18,501 $ 36,576 $ 36,958
Independent and assisted living community revenue (leased) 107,380 108,544 214,674 216,753
Continuing care retirement community revenue (leased) 95,070 97,709 192,848 196,891
Skilled nursing facility revenue (leased) 39,274 41,384 78,381 83,061
Ageility physical therapy revenue

 

8,736

 

 

7,456  

 

17,387  

 

15,056  
Total senior living revenue $ 268,851   $ 273,594   $ 539,866   $ 548,719  
 
Senior living wages and benefits:
Independent and assisted living community wages and benefits (owned) $ 8,376 $ 8,015 $ 16,259 $ 16,081
Independent and assisted living community wages and benefits (leased)

 

47,850

 

45,965

 

94,300

 

92,741
Continuing care retirement community wages and benefits (leased)

 

50,787

 

49,349

 

100,729

 

99,839
Skilled nursing facility wages and benefits (leased)

 

26,860

 

26,208

 

52,445

 

52,861
Ageility physical therapy wages and benefits

 

5,894

 

4,995

 

11,568

 

10,112
Insurance and other (4)

 

(289 )

 

(1,000 )

 

(1,374 )

 

(2,891 )
Total senior living wages and benefits $ 139,478   $ 133,532   $ 273,927   $ 268,743  
 
Other senior living operating expenses:
Independent and assisted living community other operating expenses
(owned)
$ 5,460 $ 5,005 $ 10,606 $ 10,103
Independent and assisted living community other operating expenses
(leased)

 

29,048

 

27,708

 

57,256

 

54,781
Continuing care retirement community other operating expenses
(leased)

 

27,273

 

26,516

 

53,712

 

52,576
Skilled nursing facility other operating expenses (leased)

 

11,524

 

12,068

 

23,832

 

23,316
Ageility physical therapy other operating expenses

 

633

 

551

 

1,101

 

942
Insurance and other (4)

 

928  

 

843  

 

943  

 

2,270  
Total other senior living operating expenses $ 74,866   $ 72,691   $ 147,450   $ 143,988  
 
 
(1) Excludes data for managed communities.
(2) Includes data for senior living communities that we have owned or
leased continuously since April 1, 2017.
(3) Includes data for senior living communities that we have owned or
leased continuously since January 1, 2017.
(4) Insurance and other expenses primarily relate to Five Star's captive
insurance company subsidiary, which mainly participates in Five
Star's workers' compensation and professional and general liability
insurance programs. Credit balances in senior living wages and
benefits represent premiums earned by Five Star's captive insurance
company subsidiary in excess of expenses recorded in the applicable
period.
 

FIVE STAR SENIOR LIVING INC.
SENIOR LIVING OTHER OPERATING
DATA
(unaudited)

 
Three Months Ended
June 30,   March 31,   December 31,   September 30,   June 30,
2018 2018 2017 2017 2017
Independent and assisted living communities (owned):(1)
Number of communities (end of period) 20 22 24 26 26
Number of units (end of period) 2,108 2,259 2,474 2,703 2,703
Occupancy(2) 81.1 % 80.7 % 82.7 % 82.9 % 83.4 %
Avg. monthly rate(3) $ 3,392 $ 3,464 $ 3,408 $ 3,410 $ 3,427
 
Independent and assisted living communities (leased):
Number of communities (end of period) 128 128 128 128 128
Number of units (end of period) 10,519 10,510 10,507 10,537 10,537
Occupancy(2) 83.6 % 83.4 % 84.4 % 84.6 % 84.6 %
Avg. monthly rate(3) $ 4,024 $ 4,070 $ 3,978 $ 3,981 $ 4,006
 
Continuing care retirement communities (leased):
Number of communities (end of period) 31 31 31 31 31
Number of units (end of period)(4) 7,158 7,158 7,159 7,163 7,172
Occupancy(2) 80.6 % 81.5 % 81.8 % 81.6 % 81.8 %
Avg. monthly rate(3) $ 5,433 $ 5,584 $ 5,433 $ 5,400 $ 5,490
 
Skilled nursing facilities (leased):
Number of communities (end of period) 29 30 30 30 30
Number of units (end of period)(5) 2,505 2,602 2,602 2,602 2,602
Occupancy(2) 74.7 % 75.7 % 77.8 % 80.1 % 79.7 %
Avg. monthly rate(3) $ 6,926 $ 6,951 $ 6,721 $ 6,725 $ 6,973
                     
Total senior living communities (owned and leased):
Number of communities (end of period) 208 211 213 215 215
Number of units (end of period) 22,290 22,529 22,742 23,005 23,014
Occupancy(2) 81.4 % 81.7 % 82.6 % 83.0 % 83.1 %
Avg. monthly rate(3)   $ 4,709     $ 4,796     $ 4,653     $ 4,648     $ 4,715  
 
Managed communities:(1)
Number of communities (end of period) 75 72 70 68 68
Number of units (end of period)(6) 9,510 9,258 9,043 8,807 8,806
Occupancy(2) 86.1 % 86.0 % 86.0 % 85.8 % 85.7 %
Avg. monthly rate(3) $ 4,242 $ 4,301 $ 4,254 $ 4,243 $ 4,297
 
Other ancillary services:
Number of ageility physical therapy inpatient clinics (end of period) 47 47 47 47 47
Number of ageility physical therapy outpatient clinics (end of
period)
111 108 92 88 85
Number of home health communities served (end of period) 12 12 15 15 13
 
(1)   Occupancy and average monthly rate for the three months ended
December 31, 2017, March 31, 2018 and June 30, 2018 include data for
the senior living communities that were sold to SNH during such
periods pursuant to the 2017 Transaction Agreement as owned until
the time of sale and as managed from the time of sale through the
end of such periods.
(2) Includes living units categorized as in service. As a result, the
number of living units may change from period to period for reasons
other than the acquisition or disposition of senior living
communities.
(3) Average monthly rate is calculated by taking the average daily rate,
which is defined as total operating revenues for senior living
services divided by occupied units during the period, and
multiplying it by 30 days.
(4) Includes 1,916 skilled nursing units in communities where assisted
living and independent living services are the predominant services
provided.
(5) Includes 76 assisted living and independent living units in
communities where skilled nursing services are the predominant
services provided.
(6) Includes 427 skilled nursing units in communities where assisted
living and independent living services are the predominant services
provided.
 

FIVE STAR SENIOR LIVING INC.
PERCENT BREAKDOWN OF SENIOR
LIVING COMMUNITY REVENUE(1)
(unaudited)

   

Three Months
Ended June 30,

Six Months
Ended June 30,

2018   2017 2018   2017
Independent and assisted living communities (owned):
Private and other sources 98.8 % 98.8 % 98.8 % 98.8 %
Medicaid 1.2 % 1.2 % 1.2 % 1.2 %
Total 100.0 % 100.0 % 100.0 % 100.0 %
 
Independent and assisted living communities (leased):
Private and other sources 98.9 % 99.0 % 99.0 % 99.0 %
Medicaid 1.1 % 1.0 % 1.0 % 1.0 %
Total 100.0 % 100.0 % 100.0 % 100.0 %
 
Continuing care retirement communities (leased):
Private and other sources 74.9 % 74.1 % 73.9 % 73.5 %
Medicare 17.5 % 19.0 % 18.5 % 19.7 %
Medicaid 7.6 % 6.9 % 7.6 % 6.8 %
Total 100.0 % 100.0 % 100.0 % 100.0 %
 
Skilled nursing facilities (leased):
Private and other sources 20.0 % 21.9 % 20.5 % 23.0 %
Medicare 19.0 % 22.2 % 19.3 % 22.6 %
Medicaid 61.0 % 55.9 % 60.2 % 54.4 %
Total 100.0 % 100.0 % 100.0 % 100.0 %
 
Total senior living communities (owned and leased):
Private and other sources 78.0 % 77.7 % 77.6 % 77.6 %
Medicare 9.3 % 10.4 % 9.8 % 10.7 %
Medicaid 12.7 % 11.9 % 12.6 % 11.7 %
Total 100.0 % 100.0 % 100.0 % 100.0 %
 
 

(1) Excludes data for managed communities.

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