Emeritus Corporation (NYSE: ESC), a national provider of senior living services, today announced its second quarter 2012 results.
Operating Summary for Second Quarter 2012 Compared to Second Quarter 2011
- Community and management fee revenue increased $16.6 million, or 5.4%, to $323.8 million
- Adjusted EBITDAR increased $5.5 million, or 6.4%, to $92.1 million
- CFFO per share, as adjusted, increased 15.0% to $0.46
- Same community average monthly revenue per occupied unit increased 0.9% to $4,136
- Same community average occupancy increased 10 basis points to 86.6%
- Same community operating margin increased to 34.0% from to 33.5%
Granger Cobb, President and Chief Executive Officer commented, “Our rate initiatives have started to gain traction, and we have continued to show very good expense controls – leading to a 50-basis point improvement in same community operating margin compared to the second quarter of last year. We remain confident in our ability to maintain our year-over-year revenue growth rate ahead of our expense growth rate, resulting in enhanced margins and cash flow over time.”
2012 Second Quarter Consolidated ResultsTotal revenue in the second quarter of 2012 increased 3.1% to $374.8 million compared to the second quarter of 2011. In the second quarter of 2012, we began recording as expense the costs incurred on behalf of and reimbursed by managed communities, with a corresponding amount recorded as revenues. Prior-period amounts have been adjusted to reflect this new presentation, with no impact on net operating results, cashflow measures, or balance sheet accounts. Excluding the impact of these reimbursed costs, community and management fee revenues increased $16.6 million, or 5.4%, to $323.8 million. The $16.6 million increase includes $13.2 million from the acquisition of communities (net of dispositions), including 24 communities that the Company acquired in June 2011 that it had previously managed on behalf of a joint venture with an affiliate of Blackstone Real Estate Advisors; the remaining increase is due primarily to improved rate and occupancy at our same community portfolio.