Again as Darren said we have a very unique ancillary service platform which in this climate of healthcare reform and rationalization we think bodes well for our future and our positioning in the market. We have good balance sheet, no near-term debt maturities and significant liquidity, very actionable growth opportunities ahead of us including acquisitions, repositionings and expansions and a very experienced management team.We reported our first quarter of 2012 last week. Our primary reporting metric is cash flow per share or CFFO. We reported CFFO of $58.5 million or $0.48 a share. Our occupancy year over year was up 60 basis points and same community revenue per unit was up 1.6%. The numbers in the first quarter were impacted by changes in Medicare rates that have occurred October 1st of last year and January 1st of this year. So the first quarter of last year as reported was $0.51. If you adjust for these changes in the Medicare rates, it would have been $0.44. So just over a 10% growth year over year after adjusting for those changes in Medicare rates. We have been pretty aggressive since we went public in 2005 on the acquisition side. The most recent acquisition we closed was towards the end of 2011 when we acquired the ninth largest of operator of senior housing in the US Horizon Bay. At that point Horizon Bay operated 91 communities with just over 16,000 units. we integrated that acquisition very quickly, actually did the lion share of the backbone system cutovers within a 60-day period. And we are now in the process of rolling out our ancillary services to those communities. Ross will get into a little more detail on our ancillary service growth opportunities here in a moment. Brookdale has a national footprint, we operate 646 communities in 35 states. We have a capacity to serve about 67000 residents. One of our key business strategies is scale and market in a range of product in market. So you will see that we are the only national senior housing operator that operates a range of senior housing product types. We operate independent living, assisted living, memory care, rental CCRCs and entry fee CCRCs. Again we also have a strong ancillary service platform. The lion share of our ancillary business is outpatient therapy and home health services.
We offer this range of services in a number of markets. We have 18 or 20 markets across the country that we call major markets M2 or M3 markets. Those are markets like Kansas City and Denver, Tampa where we have the full range of product in the market and we are able to take care of customers throughout their period of need and move folks in that market continuum of service. The tables you see here on the top right are mix by a level of care. That's our entire portfolio which includes the assets that we manage. And in the lower right is the mix of our units in our P&L in our consolidated operations.Again it's a very diversified portfolio. From a revenue standpoint our business is 80% private pay, about 15% of our revenue is from Medicare. Within that we have three primary services we offer that are covered by Medicare, home health, outpatient therapy and we do of a fair amount of rehab in the skilled nursing operations on our CCRC campuses. But 80% of our revenue is private pay. You can see sort of the ownership distribution of our units in the pie chart in the upper right. We manage 27% of our capacity and in many cases we are actually a joint-venture partner in those portfolios. We own a third of our units and we lease 40% of our units principally from the large national healthcare REITs of whom are I am certain familiar. Of our 67,000 units our ancillary platform serves 42,500 units with outpatient therapy and just over 37,000 units with home health. One of the key parts to our story of course is the long-term supply demand dynamics and ageing demographics in the United States. A very interesting phenomenon in the demographic numbers over the next five years. The most recent census, the 80+ population in the United States was 12 million. Through 2015, that age group is actually forecast to be relatively stable, in terms of the total numbers but in terms of affluence within that age group the 80+ population with the incomes under 50,000 or over 50,000 are projected to changing distribution by almost 1.5 million in the five-year period of time. Read the rest of this transcript for free on seekingalpha.com