Sunrise's Net Loss Narrows In First Quarter

Once these most recent quarterly results are finalized, they will be run through TheStreet.com Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit TheStreet.com Ratings Screener.

On May 8, 2009, Sunrise Senior Living(SRZ Quote) posted a lower loss during Q1 FY09, helped by lower expenses and sales of its non-core assets. Net loss decreased to $18.16 million or $0.36 per share from $33.13 million or $0.66 per share a year ago. Net loss from continuing operations increased to $32.29 million or $0.64 per share from $26.08 million or $0.52 per share.

Operating revenue fell 2.2% to $404.36 million from $413.48 million a year earlier, hurt by a lower occupancy rate. Average occupancy rate dropped 50 basis points to 89.2% from 89.7%, while average daily revenue per occupied unit rose 2.2% to $162.35 from $158.80. Resident fees for consolidated communities grew 9.8% to $115.89 million from $105.57 million. On the flipside, reimbursed contract services revenue declined 4.2% to $242.09 million from $252.76 million. Management fees slipped 15.5% to $28.44 million from $33.66 million, and ancillary fees decreased 17.6% to $11.22 million from $13.62 million. Professional fees from development, marketing and other were down 14.5% to $6.73 million from $7.87 million.

Sunrise operated 417 communities located in the U.S., Canada, the U.K. and Germany, with resident capacity of almost 44,000 units. Additionally, SRZ had 14 communities under construction, with the capacity for an additional 1,332 units. The company recently cut about 150 jobs and replaced its chief financial officer as a part of its overhead downsizing plan.

Looking ahead, SRZ expects to spend approximately $114.10 million on the completion of its 14 communities under construction during FY09. The company anticipates the realization of approximately $20.00 million of annual recurring savings from a reduction in non-care related administrative costs.