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Actual results may differ materially from those projected in any forward-looking statements. Additional information concerning factors that could cause those differences is contained in our filings with the SEC. Investors are cautioned not to place undue reliance upon any forward-looking statements.And now, I would like to turn the call over to Bruce Mackey. Bruce Mackey Great. Thank you, Tim. And thank you everyone for joining us today on our 2011 fourth quarter earnings call. For the quarter ended December 31, 2011 we recorded or 12th consecutive quarter of profitability of net income from continuing operations of $1.11 per basic share and $1.05 per diluted share. These results were positively impacted by an approximate $54 million income tax benefit related to the reversal of our tax valuation allowance, $3.5 million gain on the sale of available for sale securities partially offset by an impairment of long-lived assets of $3.5 million and acquisition related cost of $229,000. Paul will discuss the details of the income tax benefit and the impairment of long-lived assets that we recorded in his prepared remarks. Excluding these items, our adjusted net income for continuing operations was $0.02 per basic and diluted share for the quarter. For the 2011 full year, our adjusted diluted net income for continuing operations at $0.40 per share. As you know, starting on October 1st, 2011, Medicare cut its rates to (inaudible) by 11% with the impact of Five Star being closer to 12%. We did feel the effect of this loss in revenue and EBITDA during the quarter, however, we maintained our record of consistent profitability and through our recent acquisitions of private pay communities offset the majority of this loss on an annual basis. Over the past several months we made some changes to our corporate regional structure to help address this loss of Medicaid revenue going forward.
Historically, Five Star has operated with four divisions, East, Central, West and a fourth division made up of the rehab hospitals and pharmacy operations.Previously, our standalone skilled nursing facilities were part of the geographic region in which they were located. We have now segregated our standalone skilled nursing facilities into one region. Through this change, we will cut about $0.5 million out of our general administrative expenses as well as provide a more focused oversight over both segments of our senior living business. We continue to actively grow the percentage of our revenues derived from private pay senior livings by the doing the following; leasing properties under long-term leases, managing properties on behalf of owners, and purchasing properties using our own balance sheet. We look further to accelerate the process by continuing to sell less profitable skilled nursing facilities. 2011 was a year of transition and growth for Five Star. Five Star's business plan for 2011 was three fold; to increase rate, to maintain and increase occupancy, and to operate efficiently and control costs. We were successful on all fronts for the year. We grew a same-store average daily rate grew by 2.3% for the full year. We increased occupancy. Total senior occupancy grew by 20 basis points and independent assisted living occupancy grew by 80 basis points for the full year. We held cost in check, rates remained and stayed flat at 50% of revenues and G&A remains the lowest in the industry at 4.4% of revenues. We currently employed over 25,000 employees and have annual revenues in excess of $1.2 billion. With a total of 246 communities containing over 27,000 units, Five Star is one of the largest operators of senior living communities in the country. On a very positive note, I am pleased to announce that we are working with a group of lenders to negotiate a new $150 million senior secured revolving credit facility. We expect the facility will be secured by approximately half of the 31 senior living properties that we own. Read the rest of this transcript for free on seekingalpha.com