This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Five Star Quality Care, Inc. Reports Second Quarter 2012 Results

“Five Star’s second quarter results generated income from continuing operations of $0.06 per share, after excluding $0.04 per share of gain from the Sunrise litigation settlement, which is $0.04 per share better than income from continuing operations during the first quarter of 2012. EBITDA also improved over the first quarter of 2012 by over 50% to $13.4 million during the second quarter, after excluding $3.4 million of gain from the Sunrise litigation settlement. These improvements were largely driven by improved community expense margin management and a sequential improvement in ADR. Although increasing occupancy continues to be a challenge for the company, we believe our consolidated senior living occupancy is equal to the industry average and our same store senior living occupancy remained essentially unchanged year over year.

Over the last few months we have continued to focus on the private pay independent and assisted living industry. Since May, we have either begun to manage or agreed to manage 12 additional communities with 2,763 living units. Also, we recently reached agreement to sell our pharmacy business for expected effective net cash receipts of $39.9 million, which is over twice as much as we have invested in the business.

From a capitalization perspective, the company’s total debt as a percent of total book capital is only 27.6%. As of June 30, 2012, we had $23.6 million of cash and cash equivalents, owned 12 unencumbered senior living communities with 840 living units and had $145.6 million of availability under our two revolving credit facilities. Also, during the quarter, we repaid and terminated our bridge loan from SNH and repurchased $12.4 million of our senior convertible notes at a modest discount to par value.”

Conference Call:

On August 1, 2012 at 10:00 a.m. Eastern Time, we will host a conference call to discuss the second quarter financial results. Following management’s presentation, there will be a question and answer period.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs