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A little bit about Five Star, we’re one of a largest publicly traded operators of senior living communities, actually one of the largest non-publicly traded as well. We’re the six largest operators of senior living communities based on units right now in the United States.We operate almost 250 senior living communities, with about 27,500 units. We lease the majority of our properties from our formal parent Senior Living Properties Trust. We also own 31 of our own communities and then we got into the management business last year and I’ll explain a little bit about that in detail. I think the pie charts here on the slide, really kind of help explain the Five Star’s story. The chart in the lower left shows our revenues by business unit. We are about 87% senior living and that’s broken down into independent and assisted living at 72% and skilled nursing at 15% and then our ancillary businesses, institutional pharmacies and inpatient rehabs make up about 13% of our total revenues. The pie chart in the middle shows our revenue pay source, we are about 75% private pay, so majority of our funds are not coming from the government programs Medicaid and Medicare, they are coming from residents’ private recourses. And that’s really a hallmark of Five Star since we became public over 10 years ago. When we started off, we were about 80% government funded Medicaid and Medicare and we’ve really aggressively grown the company and the private pay side really switching that the characteristics of that slide completely around, the direction you’ll see us continue to move in as we move forward. The pie chart on the right shows our geographic concentration by state. We operate in 30 states and no state makes up more than 10% of our total company revenues.
By many measures, Five Star makes a strong case as a solid investment opportunity. We’ve got a national platform of senior living communities like I mentioned we operate 247 properties in 30 states, over 27,000 units. We generate annual revenues in excess of $1.3 billion and we employee about 25,000 people, there are about 150 people headquartered here in Newton, Massachusetts., five miles west on the Pike.Our community is predominantly private pay, as I mentioned the majority of our revenues come from residents’ private resources, not government funded Medicaid and Medicare. Demographics, they are clearly in our favor, demand is going to be strong and new supply have been extremely limited over the last several years and we expect that will continue at least into the next several years. We are a great operator, over the last four years it has been a very difficult time to operate. Five Star has done a great job of being profitable through that entire time through the recession and beyond. We’ve done that by pushing rate and maintaining a very tight control on our costs. Paul Hoagland, our Chief Financial Officer will get into our cost structure in a little bit and you can see that we do a pretty good job operating on those metrics. And last, my favorite point in the slide is the lower one, we’re aggressively growing our business. So Five Star is a consolidator in this fragmented market. 2011 was a very busy year for us. We took on almost 40 properties, about 5,000 units, the vast majority of them were private pay independent and assisted living units. And I think you will see us continue to be aggressive going forward into the future. Read the rest of this transcript for free on seekingalpha.com