Emeritus Announces Second Quarter 2013 Operating Results

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

Operating Summary for Second Quarter 2013 Compared to Second Quarter 2012
  • Community and management fee revenue increased 44.7% to $468.4 million
  • Adjusted EBITDAR increased $37.9 million, or 41.2% to $130.0 million
  • Adjusted CFFO per share grew 12.5% to $0.54
  • Total Portfolio Same Community (as defined below) average occupancy improved 60 basis points to 86.6%
  • Total Portfolio Same Community average monthly revenue per occupied unit increased 2.5% to $4,015

Granger Cobb, President and Chief Executive Officer, commented, “We were very pleased to see occupancy rebound with a 20-basis point sequential lift in our same store portfolio after the effects of a rough flu season in the first quarter. The continued integration of home healthcare services into our communities through our Nurse On Call subsidiary is making solid progress, and we look forward to on-boarding 38 high quality communities and benefitting from their operating teams’ experience later in the quarter. Finally, as we celebrate our 20 th anniversary, we would like to thank our more than 30,000 dedicated and compassionate employees who care for our 42,000 residents every day as though they were family.”

2013 Second Quarter Consolidated Results

Community and management fee revenues increased $144.6 million, or 44.7% to $468.4 million in the second quarter of 2013, compared to $323.8 million in the second 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.

Total average monthly revenue per occupied unit for the consolidated portfolio was $4,014 in the second quarter of 2013 compared to $4,140 in the second 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 second quarter of 2013, total average occupancy for the consolidated portfolio grew to 86.7%, compared to 86.4% in the second quarter of 2012.

Revenues for those consolidated communities that Emeritus has continuously operated since January 1, 2012 (“Consolidated Same Community”) increased $7.3 million in the second quarter of 2013 primarily as a result of improved rate per unit. As of June 30, 2013, the consolidated Emeritus portfolio consisted of 463 communities, of which 321 communities are included in the Company’s definition of Consolidated Same Community. Average monthly revenue for this portfolio increased 2.1% to $4,236 in the second quarter of 2013 compared to the second quarter of 2012, and occupancy increased to 86.7% compared to 86.6% over the same period.

As a result of the Blackstone JV transaction, the Company added 133 leased communities and nine owned communities to its consolidated portfolio in the fourth quarter of 2012 and the first quarter of 2013. Substantially all of these communities have been managed by Emeritus since the second half of 2010. For all communities continuously under Emeritus management since January 1, 2012 (“Total Portfolio Same Community”), monthly revenue per occupied unit increased 2.5% in the second quarter of 2013 compared to the second quarter of 2012, and average occupancy improved by 60 basis points when comparing the same periods.

Community and ancillary services operating expenses were $319.9 million in the second quarter of 2013 compared to $213.6 million in the second quarter of 2012. The increase was due primarily to the acquisition of the Blackstone JV communities and Nurse on Call. Community operating expenses in the Consolidated Same Community portfolio increased $5.0 million, or 2.4%, due primarily to increases in professional liability insurance, marketing, and salaries and benefits, offset somewhat by lower health insurance expense resulting from our August 2012 switch to a more efficient network, as well as lower bad debt expense.

Community and ancillary operating income grew $42.9 million, or 40.8%, to $148.0 million in the second quarter of 2013, compared to the second quarter of 2012, primarily as the result of acquisition-related activities. Community and ancillary operating income margin was 31.6% in the 2013 second quarter compared to 33.0% in the 2012 period, and was likewise impacted by acquisition-related activities between the periods, in particular the acquisition of Nurse on Call (which operates at a lower margin percentage than the Company’s historical business). Consolidated Same Community operating income margin was stable at 33.8% for both second-quarter periods, and Total Portfolio Same Community operating margin improved 50 basis points to 33.8% in the second quarter of 2013 as compared to the prior-year quarter.

The consolidated increase in general and administrative expenses in the periods includes the effects of the Company’s acquisition of home healthcare services, which operate at a higher level of such expenditures in relation to the corresponding revenues. Excluding Nurse on Call as well as consolidated noncash stock-based compensation expenses, senior living general and administrative expenses as a percent of total operated senior living community revenue were 4.8% in the second quarter of 2013, compared to 4.7% in the second quarter of 2012. The increase primarily reflects increases in employee compensation and benefits.

For the second quarter of 2013, Adjusted EBITDAR increased $37.9 million, or 41.2%, to $130.0 million, with the increase primarily driven by the increase in community operating income. Adjusted CFFO per share increased 12.5% to $0.54 per share, compared to $0.48 per share in the second quarter of 2012.

Financing and Other Activities

In May 2013, the Company repaid a $30.0 million note payable to a subsidiary of Ventas, Inc., bearing interest at 8.80%. In July 2013, the Company repaid a $15.2 million note payable bearing interest at 8.77%. Year-to-date through July 2013, the Company has repaid a total of $88.1 million of higher-rate notes payable.

On June 27, 2013 the Company announced the lease of 38 communities representing approximately 4,400 units, that are currently owned by a joint venture comprised of Health Care REIT, Inc. and Merrill Gardens. The communities offer independent living, assisted living and memory care services, with a primary focus on independent living. This transaction is expected to close in the third quarter of 2013.

2013 Guidance Update

The Company provides guidance for the Company’s existing portfolio and excludes the impact from future acquisitions and dispositions.

The Company’s guidance for 2013 is as follows:
  • Community and management fee revenue in the range of $1.85 billion to $1.90 billion
  • Routine capital expenditures in the range of $28.0 million to $30.0 million
  • Senior living general and administrative expenses as a percent of total senior living operated revenue of approximately 4.9%, excluding non-cash stock-based compensation expenses
  • Adjusted CFFO in the range of $2.10 to $2.20 per share

Webcast and Conference Call

The Company will host a webcast and conference call on Thursday, August 1, 2013, at 5:00 P.M. Eastern Time to discuss its financial results for the second quarter of 2013.

The conference call will be webcast live over the internet from the Company’s web site at www.emeritus.com under the “Investors” section. The conference call can also be accessed by dialing (877) 407-3982, or for international participants (201) 493-6780. A replay of the conference call will be available after 8:00 P.M. Eastern Time on Thursday, August 1, 2013, until midnight Eastern Time on Thursday, August 8, 2013. The dial-in numbers for the replay are (877) 870-5176 or, for international participants, (858) 384-5517. To access the telephonic replay, enter the conference ID 417700.

Non-GAAP Financial Measures

Adjusted EBITDA/EBITDAR and CFFO are financial measures of operating performance that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes that these non-GAAP measures are useful in identifying trends in day-to-day performance because they exclude items that are of little or no significance to operations and provide indicators to management of progress in achieving optimal operating performance. In addition, these measures are used by many research analysts and investors to evaluate the performance and the value of companies in the senior living industry. The Company strongly urges you to review the reconciliation of net loss to Adjusted EBITDA/EBITDAR and the reconciliation of net cash provided by operating activities to CFFO, provided below, along with the Company’s consolidated balance sheets, statements of operations, and statements of cash flows. The Company defines Adjusted EBITDA/EBITDAR and CFFO and provides other information about these non-GAAP measures in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, to be filed with the Securities and Exchange Commission.

The table below shows the reconciliation of net loss to Adjusted EBITDA/EBITDAR for the three months and six months ended June 30, 2013 and 2012 (in thousands):

       
Three Months Ended Six Months Ended
June 30, June 30,
  2013         2012     2013         2012  
Net loss $ (36,333 ) $ (21,753 ) $ (75,998 ) $ (41,148 )
Depreciation and amortization 45,194 32,993 90,412 65,563
Interest income (118 ) (98 ) (228 ) (202 )
Interest expense 72,090 38,587 144,289 77,632
Net equity losses for unconsolidated joint ventures (5 ) 80 7 472
Income tax provision 1,190 324 2,296 596
Loss from discontinued operations 5,368 5,007 5,368 5,007
Amortization of above/below market rents 1,225 1,624 2,471 3,378
Amortization of deferred gains (242 ) (264 ) (490 ) (533 )
Loss (gain) on early extinguishment of debt 14 (55 ) (479 ) (55 )
Stock-based compensation 3,478 2,834 6,809 5,679

Change in fair value of derivative financial instruments
(172 ) 534 (177 ) 745
Deferred revenue 248 (151 ) 2,336 (450 )
Deferred straight-line rent 78 1,096 294 2,298
Impairment of long-lived assets 2,135
Loss on lease termination 486 486
Transaction and financing costs 895 1,167 1,542 1,488
Self-insurance reserve adjustments   5,654     1,849     13,136     2,246  
Adjusted EBITDA 99,050 63,774 192,074 124,851
Community lease expense   30,936     28,296     61,438     56,511  
Adjusted EBITDAR $ 129,986   $ 92,070   $ 253,512   $ 181,362  
 

The following table shows the reconciliation of net cash provided by operating activities to CFFO, and Adjusted CFFO (in thousands):
         
Three Months Ended Six Months Ended
June 30, June 30,
  2013         2012     2013         2012  
Net cash provided by operating activities $ 28,328 $ 42,324 $ 56,089 $ 68,516
Changes in operating assets and liabilities, net 2,836 (16,009 ) (2,208 ) (17,273 )
Repayment of capital lease and financing obligations (6,809 ) (4,183 ) (12,810 ) (8,077 )
Recurring capital expenditures (5,770 ) (3,718 ) (11,431 ) (8,173 )
Distributions from unconsolidated joint ventures (1)   251     61       428       87  
Cash From Facility Operations 18,836 18,475 30,068 35,080
Transaction costs 895 882 1,542 1,188
Self-insurance reserve adjustments, prior years   5,654     1,849     13,136     2,246  
Adjusted Cash From Facility Operations $ 25,385   $ 21,206   $ 44,746   $ 38,514  
 
CFFO per share $ 0.40 $ 0.41 $ 0.65 $ 0.79
Adjusted CFFO per share 0.54 0.48 0.97 0.86
 
(1) Excludes distributions resulting from the Blackstone JV Transaction, the sale of communities and refinancing of debt.
 

Recurring capital expenditures are actual costs incurred to maintain the Company’s communities for their intended business purpose and exclude expenditures for community acquisitions, expenditures incurred in the months immediately following acquisition (and specifically excludes the $30.0 million capital commitment under the lease for the former Blackstone JV communities), new construction and expansions, ROI-designated projects, computer hardware and software, and vehicles.

For a more detailed understanding of Emeritus, please refer to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, to be filed with the SEC, or visit the Company’s web site at www.emeritus.com to obtain copies.

About Emeritus

Emeritus Senior Living is the largest assisted living and memory care provider in the United States, with the ability to serve nearly 50,000 residents. Over 30,000 employees support approximately 480 communities throughout 45 states coast to coast. Emeritus offers the spectrum of senior residential choices, care options, and life enrichment programs that fulfill individual needs and promote purposeful living during the aging process. Senior living service offerings include independent living, assisted living, memory care, skilled nursing, home health care, and rehabilitation services. Emeritus experts provide insights on senior living, care, wellness, brain health, and family topics at www.emeritus.com, which also offers details on the organization’s family-focused philosophy and services. Emeritus’ common stock is traded on the New York Stock Exchange under the symbol ESC.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: A number of the matters and subject areas discussed in this report that are not historical or current facts deal with potential future circumstances, operations, and prospects. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally, and also may materially differ from our actual future experience as a result of such factors as: the effects of competition and economic conditions on the occupancy levels in our communities; our ability under current market conditions to maintain and increase our resident charges without adversely affecting occupancy levels; successfully integrating home health agency services into our senior living communities; uncertainties regarding government-reimbursement programs for our services; increases in interest costs as a result of refinancings; our ability to control community operation expenses without adversely affecting the level of occupancy and the level of resident charges; our ability to generate cash flow sufficient to service our debt and other fixed payment requirements; our ability to find sources of financing and capital on satisfactory terms to meet our cash requirements to the extent that they are not met by operations, and uncertainties related to professional liability and workers’ compensation claims. We have attempted to identify, in context, certain of the factors that we currently believe may cause actual future experience and results to differ from our current expectations regarding the relevant matter or subject area. These and other risks and uncertainties are detailed in our reports filed with the Securities and Exchange Commission, including “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC. The Company undertakes no obligation to update the information provided herein.
 

EMERITUS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except share data)
 
ASSETS
     
June 30, December 31,
  2013     2012  
Current Assets:
Cash and cash equivalents $ 133,867 $ 59,795
Short-term investments 6,251 4,910
Trade accounts receivable, net of allowance of $8,318 and $7,179 56,164 53,138
Other receivables 8,616 28,533
Tax, insurance, and maintenance escrows 25,756 23,813
Prepaid insurance expense 23,398 24,297
Deferred tax asset 31,430 33,781
Other prepaid expenses and current assets 9,618 12,185
Property held for sale   16,082     -  
Total current assets 311,182 240,452
Investments in unconsolidated joint ventures 2,082 2,513
Property and equipment, net of accumulated depreciation of $617,187 and $533,710 3,960,640 4,011,884
Restricted deposits and escrows 55,967 50,671
Goodwill 186,745 186,756
Other intangible assets, net of accumulated amortization of $37,036 and $47,547 127,186 131,971
Other assets, net   29,074     36,503  
Total assets $ 4,672,876   $ 4,660,750  
 
LIABILITIES, SHAREHOLDERS' EQUITY AND NONCONTROLLING INTEREST
 
Current Liabilities:
Current portion of long-term debt $ 73,943 $ 49,381
Current portion of capital lease and financing obligations 29,742 25,736
Trade accounts payable 25,774 14,244
Accrued employee compensation and benefits 47,165 53,606
Accrued interest 7,702 8,467
Accrued real estate taxes 15,444 16,432
Accrued insurance liabilities 40,328 44,867
Other accrued expenses 31,043 30,291
Deferred revenue 24,867 22,417
Unearned rental income   23,772     30,552  
Total current liabilities 319,780 295,993
Long-term debt obligations, less current portion 1,476,008 1,558,936
Capital lease and financing obligations, less current portion 2,480,634 2,384,857
Deferred gain on sale of communities 3,253 3,743
Deferred straight-line rent 69,826 63,920
Other long-term liabilities   130,446     128,472  
Total liabilities   4,479,947     4,435,921  
Redeemable noncontrolling interest 10,488 10,105
Commitments and contingencies
Shareholders' Equity and Noncontrolling Interest:
Preferred stock, $0.0001 par value. Authorized 20,000,000 shares, none issued

Common stock, $0.0001 par value. Authorized 100,000,000 shares, issued and outstanding 47,681,063 and 45,814,988 shares
5 5
Additional paid-in capital 883,430 839,511
 
Accumulated deficit   (703,806 )   (628,093 )
Total Emeritus Corporation shareholders' equity 179,629 211,423
Noncontrolling interest   2,812     3,301  
Total shareholders' equity   182,441     214,724  
Total liabilities, shareholders' equity, and noncontrolling interest $ 4,672,876   $ 4,660,750  
 
       

EMERITUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(In thousands, except per share data)
 
Three Months Ended Six Months Ended
June 30, June 30,
  2013         2012     2013         2012  
Revenues:
Community and ancillary services revenue $ 467,810 $ 318,628 $ 930,529 $ 636,551
Management fees   595     5,141     1,380     10,197  
Community, ancillary services and management fee revenue 468,405 323,769 931,909 646,748
Reimbursed costs incurred on behalf of managed communities   7,521     51,033     16,385     102,645  
Total operating revenues   475,926     374,802     948,294     749,393  
 
Expenses:
Community and ancillary services operations 319,848 213,571 643,589 427,044
General and administrative 28,891 22,987 58,331 46,410
Transaction costs 895 882 1,542 1,188
Impairments of long-lived assets 2,135
Depreciation and amortization 45,194 32,993 90,412 65,563
Community leases 32,239 31,016 64,203 62,187
Costs incurred on behalf of managed communities   7,521     51,033     16,385     102,645  
Total operating expenses   434,588     352,482     874,462     707,172  
Operating income from continuing operations   41,338     22,320     73,832     42,221  
 
Other income (expense):
Interest income 118 98 228 202
Interest expense (72,090 ) (38,587 ) (144,289 ) (77,632 )
Change in fair value of derivative financial instruments 172 (534 ) 177 (745 )
Net equity earnings (losses) for unconsolidated joint ventures 5 (80 ) (7 ) (472 )
Other, net   682     361     1,725     881  
Net other expense   (71,113 )   (38,742 )   (142,166 )   (77,766 )
 
Loss from continuing operations before income taxes (29,775 ) (16,422 ) (68,334 ) (35,545 )
Provision for income taxes   (1,190 )   (324 )   (2,296 )   (596 )
Loss from continuing operations (30,965 ) (16,746 ) (70,630 ) (36,141 )
Loss from discontinued operations   (5,368 )   (5,007 )   (5,368 )   (5,007 )
Net loss (36,333 ) (21,753 ) (75,998 ) (41,148 )
Net loss attributable to the noncontrolling interests   376     34     285     48  

Net loss attributable to Emeritus Corporation common shareholders
$ (35,957 ) $ (21,719 ) $ (75,713 ) $ (41,100 )
 

Basic and diluted loss per common share attributable to Emeritus Corporation common shareholders:
Continuing operations $ (0.66 ) $ (0.38 ) $ (1.52 ) $ (0.81 )
Discontinued operations   (0.11 )   (0.11 )   (0.12 )   (0.11 )
$ (0.77 ) $ (0.49 ) $ (1.64 ) $ (0.92 )
 
Weighted average common shares outstanding   46,805     44,612     46,115     44,597  
 

   

EMERITUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)
 
Six Months Ended June 30,
  2013         2012  
Cash flows from operating activities:
Net loss $ (75,998 ) $ (41,148 )

Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization 90,412 65,563
Amortization of above/below market rents 2,471 3,378
Amortization of deferred gains (490 ) (533 )
Loss on lease termination 505
(Gain) loss on early extinguishment of debt (479 ) 625
Impairments of long-lived assets 5,206 6,678
Amortization of loan fees 1,552 1,680
Allowance for doubtful receivables 4,384 5,225
Equity investment losses 7 472
Loss (gain) on sale of assets 119 (205 )
Stock-based compensation 6,809 5,679
Change in fair value of derivative financial instruments (177 ) 745
Deferred straight-line rent 294 2,298
Deferred revenue 2,336 (450 )
Non-cash interest expense 16,279 1,309
Other 651 (73 )
Change in other operating assets and liabilities   2,208     17,273  
Net cash provided by operating activities   56,089     68,516  
 
Cash flows from investing activities:
Purchase of property and equipment (31,844 ) (11,399 )
Acquisitions (4,881 )
Proceeds from sale of assets 25,338 3,725
Advances from affiliates and other managed communities, net 13,078 481
Distributions from unconsolidated joint ventures, net 46,147 (637 )
Other assets   (749 )   (179 )
Net cash provided by (used in) investing activities   47,089     (8,009 )
 
Cash flows from financing activities:
Sale of stock, net 41,823 623
Proceeds from lease extensions 6,055
Distributions to noncontrolling interests, net (3,726 )
Increase in restricted deposits (1,190 ) (1,655 )
Debt issuance and other financing activities (888 ) (1,118 )
Proceeds from long-term borrowings and financings 50,000 10,553
Repayment of long-term borrowings and financings (108,370 ) (29,711 )
Repayment of capital lease and financing obligations   (12,810 )   (8,077 )
Net cash used in financing activities   (29,106 )   (29,385 )
 
Net increase in cash and cash equivalents 74,072 31,122
Cash and cash equivalents at the beginning of the period   59,795     43,670  
Cash and cash equivalents at the end of the period $ 133,867   $ 74,792  
 
Emeritus Corporation
Cash Lease and Interest Expense
Three Months Ended June 30, 2013
(In thousands)
           
Projected
Actual Range
Q2-13 Q2-2013
Facility lease expense - GAAP $ 32,239 $ 32,000 $ 33,000
Less:
Above/below market rents (1,225 ) (1,200 ) (1,300 )
Plus:
Capital lease interest 47,302 47,500 48,000
Capital lease interest - noncash (8,304 ) (8,000 ) (9,000 )
Capital lease principal 6,689 6,000 7,000
Straight-line rents   (78 )   200     300  
Facility lease expense - CASH $ 76,623   $ 76,500   $ 78,000  
 
Interest expense - GAAP $ 72,090 $ 71,000 $ 72,000
Less:
Capital lease interest (47,302 ) (47,500 ) (48,000 )
Loan fee amortization and other   (810 )   (700 )   (800 )
Interest expense - CASH $ 23,978   $ 22,800   $ 23,200  
 
Depreciation - owned assets $ 20,303 $ 20,000 $ 21,000
Depreciation - capital leases 24,439 24,000 25,000
Amortization - intangible assets   452     400     500  
Total depreciation and amortization $ 45,194   $ 44,400   $ 46,500  
 
 
EMERITUS CORPORATION
Consolidated Supplemental Financial Information
For the Quarters Ended
(unaudited)
(Dollars in thousands, except non-financial and per-unit data)
                   

Non-Financial Data:
Q2 2012     Q3 2012     Q4 2012     Q1 2013     Q2 2013
Average consolidated communities 327.3 325.3 414.3 462.7 464.7
Average available units 29,629 29,513 36,672 40,524 40,757
Average occupied units 25,603 25,719 31,842 35,007 35,333
Average occupancy 86.4 % 87.1 % 86.8 % 86.4 % 86.7 %
Average monthly revenue per occupied unit $ 4,140 $ 4,189 $ 4,077 $ 4,012 $ 4,014
Calendar days 91 92 92 90 91
 

Community and ancillary services revenues:
Community revenues $ 313,555 $ 318,915 $ 385,888 $ 417,581 $ 422,288
Move-in fees 5,816 5,753 5,503 5,503 5,430
Move-in incentives   (1,358 )       (1,434 )       (1,953 )       (1,722 )       (2,282 )
Total community revenues 318,013 323,234 389,438 421,362 425,436
Ancillary services revenues   615         640         20,156         41,357         42,374  
Total community and ancillary services revenues   318,628         323,874         409,594         462,719         467,810  
 

Community and ancillary services operating expenses:
Salaries and wages - regular and overtime 97,850 99,334 119,305 127,713 129,904
Average daily salary and wages 1,075 1,080 1,297 1,419 1,428
Average daily wages per occupied unit $ 42.00 $ 41.98 $ 40.73 $ 40.54 $ 40.40
 
Payroll taxes and employee benefits 33,185 32,132 36,854 45,523 40,981
Percent of salaries and wages 33.9 % 32.3 % 30.9 % 35.6 % 31.5 %
 
Prior year self-insurance reserve adjustments 1,849 190 3,560 7,482 5,654
 
Utilities 12,141 14,805 15,328 18,595 16,963
Average monthly cost per occupied unit 158 192 160 177 160
 
Facility maintenance and repairs 8,427 8,643 9,787 11,830 11,674
Average monthly cost per occupied unit 110 112 102 113 110
 
All other community operating expenses 59,762 61,277 75,365 81,140 81,970
Average monthly cost per occupied unit 778 794 789 773 773
                         
Community operating expenses 213,214 216,381 260,199 292,283 287,146
Ancillary services operating expenses   357         562         15,449         31,458         32,702  
Total community and ancillary services operating expenses   213,571         216,943         275,648         323,741         319,848  
 
Community operating income $ 104,799       $ 106,853       $ 129,238       $ 129,079       $ 138,290  
Consolidated operating income $ 105,057       $ 106,931       $ 133,946       $ 138,978       $ 147,962  
 
Operating income margin - Communities 33.0 % 33.1 % 33.2 % 30.6 % 32.5 %
Operating income margin - Consolidated 33.0 % 33.0 % 32.7 % 30.0 % 31.6 %
 
   
EMERITUS CORPORATION
Selected Consolidated and Same Community Information
For the Quarters Ended
(unaudited)
(Community and ancillary revenue and operating expense in thousands)
               
 
Q2 2012     Q3 2012     Q4 2012     Q1 2013     Q2 2013

Consolidated:
Average consolidated communities 327.3 325.3 414.3 462.7 464.7
Community and ancillary revenue $ 318,628 $ 323,874 $ 409,594 $ 462,719 $ 467,810
Community and ancillary operating expense 213,571 216,943 275,648 323,741 319,848
Average occupancy 86.4 % 87.1 % 86.8 % 86.4 % 86.7 %
Average monthly revenue per unit $ 4,140 $ 4,189 $ 4,077 $ 4,012 $ 4,014
Operating income margin 33.0 % 33.0 % 32.7 % 30.0 % 31.6 %
 

Consolidated Same Community:
Average consolidated communities 321.0 321.0 321.0 321.0 321.0
Community revenue $ 314,770 $ 320,726 $ 322,474 $ 321,893 $ 322,096
Community operating expense 208,221 214,326 211,129 217,850 213,212
Average occupancy 86.6 % 87.3 % 87.2 % 86.6 % 86.7 %
Average monthly revenue per unit $ 4,148 $ 4,192 $ 4,222 $ 4,240 $ 4,236
Operating income margin 33.8 % 33.2 % 34.5 % 32.3 % 33.8 %
 

Total Portfolio Same Community:
Average consolidated communities 473.0 473.0 473.0 473.0 473.0
Community revenue $ 420,481 $ 428,279 $ 431,362 $ 432,147 $ 434,149
Community operating expense 280,268 288,156 283,797 291,670 287,357
Management fees 5,190 5,232 2,429 700 552
Average occupancy 86.0 % 86.7 % 86.7 % 86.4 % 86.6 %
Average monthly revenue per unit $ 3,916 $ 3,958 $ 3,987 $ 4,008 $ 4,015
Operating income margin 33.3 % 32.7 % 34.2 % 32.5 % 33.8 %

Copyright Business Wire 2010

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