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Emeritus Announces Third Quarter 2013 Operating Results

Stocks in this article: ESC

Emeritus Corporation (NYSE:ESC), a national provider of senior living services, today announced its third quarter 2013 results.

Operating Summary for Third Quarter 2013 Compared to Third Quarter 2012

  • Community and management fee revenues increased 47.2% to $484.5 million
  • Adjusted EBITDAR increased $40.2 million, or 43.6% to $132.4 million
  • Adjusted CFFO per share grew 14.0% to $0.49
  • Total Portfolio Same Community (as defined below) average occupancy improved 30 basis points to 87.1%
  • Total Portfolio Same Community average monthly revenue per occupied unit increased 1.8% to $4,036

Granger Cobb, President and Chief Executive Officer, commented, “Occupancy improved sequentially from the second quarter of this year, and our leading indicators are stable and improving. We continue to expect a roughly 20% improvement in cash from facility operations for the full year 2013. During the quarter we welcomed 39 new communities into the Emeritus family; we also continue to generate solid growth in home healthcare services, which we have expanded to now include Arizona and Texas. Our performance is a tribute to our 31,000 extremely dedicated Emeritus employees who remain resolutely focused on providing a fulfilling customer experience for our residents and peace of mind to their families.”

Third Quarter 2013 Consolidated Results

As of September 30, 2013, Emeritus operated 515 senior living communities:

  • 500 communities are in the consolidated portfolio (consisting of owned and leased communities);
  • 470 communities have been continuously operated (owned, leased, and managed) since January 1, 2012 (“Total Portfolio Same Community”) (information for this portfolio is included for certain comparative purposes but is not a subset of the Company’s historical consolidated results);
  • 320 consolidated communities have been continuously operated in our consolidated portfolio since January 1, 2012 (“Consolidated Same Community”); and
  • 15 communities are managed.

Community and management fee revenues increased $155.3 million, or 47.2% to $484.5 million in the third quarter of 2013, compared to $329.2 million in the third quarter of 2012. The increase in revenues resulted primarily from the Company’s lease and ownership acquisition of 142 communities in the fourth quarter of 2012 and first quarter of 2013 that the Company previously managed for a joint venture (the “Blackstone JV Transaction”). The increase in revenues was also attributable to the Company’s fourth quarter 2012 acquisition of Nurse on Call, Inc., the largest Medicare-licensed provider of home healthcare services in Florida. Total average monthly revenue per occupied unit for the consolidated portfolio was $4,008 in the third quarter of 2013 compared to $4,189 in the third quarter of 2012. The rate decrease was attributable to the acquisition of the Blackstone JV communities, which have lower average rates than the legacy Emeritus communities. In the third quarter of 2013, total average occupancy for the consolidated portfolio grew to 87.3%, compared to 87.1% in the third quarter of 2012.

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