This Day On The Street
Continue to site
ADVERTISEMENT
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. Announces Completion Of Pharmacy Sale

Five Star Quality Care, Inc. (NYSE: FVE) today announced that it has completed its previously announced sale of its pharmacy business to Omnicare, Inc.

Five Star received $30.5 million in sale proceeds from Omnicare. In addition, Five Star sold to Omnicare, or retained, certain items of net working capital invested in its pharmacy business which, based on June 30, 2012 amounts, is approximately $8.2 million. Accordingly, Five Star currently expects to receive a total of $38.7 million (before transaction costs) in net cash receipts resulting from the sale and to record a capital gain of approximately $23.3 million.

The pharmacy business that Five Star sold includes eight licensed pharmacies operating in 13 states that provide institutional pharmacy services to 247 senior living communities with approximately 12,300 living units.

Five Star Quality Care, Inc. is a senior living and healthcare services company headquartered in Newton, MA.

WARNING REGARDING FORWARD LOOKING STATEMENTS

THIS PRESS RELEASE INCLUDES FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS AND THEIR IMPLICATIONS ARE BASED UPON FIVE STAR'S CURRENT BELIEFS AND EXPECTATIONS, BUT THEY ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR FOR VARIOUS REASONS, INCLUDING SOME REASONS BEYOND FIVE STAR'S CONTROL. FOR EXAMPLE:
  • THIS PRESS RELEASE STATES THAT FIVE STAR EXPECTS TO RECEIVE A TOTAL OF $38.7 MILLION (BEFORE TRANSACTION COSTS) IN NET CASH RECEIPTS RESULTING FROM THE SALE. THESE EXPECTED NET CASH RECEIPTS INCLUDE ACCOUNTS RECEIVABLE THAT FIVE STAR RETAINED. FURTHER, THE SALE AGREEMENT INCLUDES CUSTOMARY INDEMNIFICATION OBLIGATIONS AND REQUIRES FIVE STAR TO ESCROW A PORTION OF THE PURCHASE PRICE IN CONNECTION WITH THOSE INDEMNIFICATION OBLIGATIONS. IF FIVE STAR IS UNABLE TO COLLECT ACCOUNTS RECEIVABLE THAT IT HAS RETAINED OR IS REQUIRED TO PAY AMOUNTS (INCLUDING WITH ESCROWED PROCEEDS) IN THE FUTURE IN SATISFACTION OF THOSE OBLIGATIONS, THE ACTUAL NET CASH RECEIPTS FIVE STAR MAY REALIZE FROM THE SALE, AND ANY CORRESPONDING CAPITAL GAIN, MAY BE REDUCED.

FOR THESE REASONS, AMONG OTHERS, INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS IN THIS PRESS RELEASE.

1 of 2

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,578.10 -76.67 -0.46%
S&P 500 1,984.56 -3.10 -0.16%
NASDAQ 4,817.6020 +4.8940 0.10%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs