Emeritus Announces Third Quarter 2013 Operating Results

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.

Total Portfolio Same Community average monthly revenue per occupied unit increased 1.8% in the third quarter of 2013 compared to the third quarter of 2012, and average occupancy improved by 30 basis points when comparing the same periods.

Consolidated Same Community revenues increased $3.1 million in the third quarter of 2013, primarily as a result of improved rate per unit. Average monthly revenue for this portfolio increased 1.2% to $4,247 in the third quarter of 2013 compared to the third quarter of 2012, and occupancy decreased to 87.1% compared to 87.4% over the same period.

Community and ancillary services operating expenses were $329.6 million in the third quarter of 2013 compared to $216.9 million in the third 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 2.3%, due primarily to increases in salaries and benefits, professional liability insurance, marketing, and supplies, offset somewhat by lower health insurance expense, as well as lower bad debt expense.

Community and ancillary operating income grew $47.3 million, or 44.2%, to $154.2 million in the third quarter of 2013, compared to the third quarter of 2012, primarily as the result of acquisition-related activities. Community and ancillary operating income margin was 31.9% in the third quarter of 2013 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 32.3% in the third quarter of 2013 compared to 33.2% in the 2012 period, and Total Portfolio Same Community operating margin was 32.6% in the third quarter of 2013 as compared to 32.8% in the prior-year quarter.

The consolidated increase in general and administrative expenses in the periods includes the effects of the Company’s acquisition of Nurse on Call, which operates at a higher level of such expenditures in relation to the corresponding revenues. Excluding Nurse on Call as well as consolidated non-cash stock-based compensation expenses, senior living general and administrative expenses as a percent of total operated senior living community revenue were 4.5% in the third quarter of 2013, compared to 4.7% in the third quarter of 2012.

For the third quarter of 2013, Adjusted EBITDAR increased $40.2 million, or 43.6%, to $132.4 million, with the increase primarily driven by the increase in community operating income. Adjusted CFFO per share increased 14.0% to $0.49 per share, compared to $0.43 per share in the third quarter of 2012.

Financing and Other Activities

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

In September 2013, the Company commenced the lease of 38 communities representing approximately 4,400 units that were formerly owned by a joint venture comprised of Health Care REIT, Inc. and Merrill Gardens. The communities are located in eight states, concentrated primarily in Washington and California, and offer independent living, assisted living and memory care services.

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, ancillary services and management fee revenue in the range of $1.90 billion to $1.95 billion
  • Recurring 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 4.8%, excluding non-cash stock-based compensation expenses
  • Adjusted CFFO in the range of $1.95 to $2.05 per share

Webcast and Conference Call

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

The conference call will be webcast live over the internet from the Company’s website at www.emeritus.com under the “Investors” section. The conference call can also be accessed by dialing (877) 705-6003 or, for international participants, (201) 493-6725. A replay of the conference call will be available after 8:00 P.M. Eastern Time on Tuesday, November 5, 2013, until midnight Eastern Time on Tuesday, November 12, 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 10000443.

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 September 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 nine months ended September 30, 2013 and 2012 (in thousands):
    Three Months Ended     Nine Months Ended
September 30, September 30,
2013     2012 2013     2012
Net loss $ (27,913 ) $ (16,402 ) $ (103,911 ) $ (57,550 )
Depreciation and amortization 45,202 32,461 135,614 98,024
Interest income (118 ) (101 ) (346 ) (303 )
Interest expense 71,441 38,451 215,730 116,083
Net equity losses for unconsolidated joint ventures 86 28 93 500
Income tax (benefit) provision (177 ) 324 2,119 920
(Income) loss from discontinued operations (146 ) 2,698 5,222 7,705
Amortization of above/below market rents 1,229 1,612 3,700 4,990
Amortization of deferred gains (237 ) (249 ) (727 ) (782 )
Loss (gain) on early extinguishment of debt 476 188 (3 ) 133
Stock-based compensation 3,542 2,640 10,351 8,319

Change in fair value of derivative financial instruments
100 174 (77 ) 919
Deferred revenue 299 (305 ) 2,635 (755 )
Deferred straight-line rent 1,075 923 1,369 3,221
Impairment of long-lived assets 2,135
Loss on lease termination 486
Transaction and financing costs 291 1,151 1,833 2,639
Transition costs 1,047 1,047
Self-insurance reserve adjustments 288   190   13,424   2,436  
Adjusted EBITDA 96,485 63,783 288,559 188,634
Lease expense 35,903   28,425   97,341   84,936  
Adjusted EBITDAR $ 132,388   $ 92,208   $ 385,900   $ 273,570  
 

The following table shows the reconciliation of net cash provided by operating activities to CFFO and Adjusted CFFO (in thousands):
    Three Months Ended     Nine Months Ended
September 30, September 30,
2013     2012 2013     2012
Net cash provided by operating activities $ 37,752 $ 42,105 $ 93,841 $ 110,621
Changes in operating assets and liabilities, net (2,702 ) (14,467 ) (4,910 ) (31,740 )
Repayment of capital lease and financing obligations (6,672 ) (4,373 ) (19,482 ) (12,450 )
Recurring capital expenditures (7,262 ) (6,471 ) (18,693 ) (14,644 )
Distributions from unconsolidated joint ventures (a) 43   929   471   1,016  
Cash From Facility Operations 21,159 17,723 51,227 52,803
Transaction costs 291 1,292 1,833 2,480
Transition costs 1,047 1,047
Self-insurance reserve adjustments, prior years 288   190   13,424   2,436  
Adjusted Cash From Facility Operations $ 22,785   $ 19,205   $ 67,531   $ 57,719  
 
CFFO per share $ 0.45 $ 0.40 $ 1.10 $ 1.18
Adjusted CFFO per share $ 0.49 $ 0.43 $ 1.46 $ 1.29
 
(a) 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 September 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 nation’s largest assisted living and memory care provider, with the ability to serve nearly 54,000 residents. Over 31,000 employees support more than 500 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 throughout the aging process. Its experts provide insights on senior living, care, wellness, brain health, caregiving and family topics at www.Emeritus.com, which also offers details on the organization’s 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
    September 30,     December 31,
2013 2012
Current Assets:
Cash and cash equivalents $ 109,630 $ 59,795
Short-term investments 6,787 4,910
Trade accounts receivable, net of allowance of $9,402 and $7,179 53,851 53,138
Other receivables 12,673 28,533
Tax, insurance, and maintenance escrows 30,142 23,813
Prepaid insurance expense 17,733 24,297
Deferred tax asset 32,657 33,781
Other prepaid expenses and current assets 11,656 12,185
Property held for sale 7,400    
Total current assets 282,529 240,452
Investments in unconsolidated joint ventures 1,681 2,513
Property and equipment, net of accumulated depreciation of $661,521 and $533,710 3,934,576 4,011,884
Restricted deposits and escrows 72,984 50,671
Goodwill 188,055 186,756
Other intangible assets, net of accumulated amortization of $38,850 and $47,547 125,372 131,971
Other assets, net 38,397   36,503  
Total assets $ 4,643,594   $ 4,660,750  
 
LIABILITIES, SHAREHOLDERS' EQUITY AND NONCONTROLLING INTEREST
Current Liabilities:
Current portion of long-term debt $ 122,894 $ 49,381
Current portion of capital lease and financing obligations 31,577 25,736
Trade accounts payable 29,860 14,244
Accrued employee compensation and benefits 51,457 53,606
Accrued interest 7,451 8,467
Accrued real estate taxes 23,344 16,432
Accrued insurance liabilities 39,686 44,867
Other accrued expenses 36,958 30,291
Deferred revenue 25,375 22,417
Unearned rental income 29,429   30,552  
Total current liabilities 398,031 295,993
Long-term debt obligations, less current portion 1,389,715 1,558,936
Capital lease and financing obligations, less current portion 2,482,061 2,384,857
Deferred gain on sale of communities 3,016 3,743
Deferred straight-line rent 70,901 63,920
Other long-term liabilities 130,640 128,472
Total liabilities 4,474,364   4,435,921  
Redeemable noncontrolling interest 10,612 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 47,735,709 and 45,814,988 shares
5 5
Additional paid-in capital 887,644 839,511
Accumulated deficit (731,629 ) (628,093 )
Total Emeritus Corporation shareholders' equity 156,020 211,423
Noncontrolling interest 2,598   3,301  
Total shareholders' equity 158,618   214,724  
Total liabilities, shareholders' equity, and noncontrolling interest $ 4,643,594   $ 4,660,750  
 
       

EMERITUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(In thousands, except per share data)
 
Three Months Ended Nine Months Ended
September 30, September 30,
2013     2012 2013     2012
Revenues:
Community and ancillary services revenue $ 483,858 $ 323,874 $ 1,414,387 $ 960,425
Management fees 630   5,293   2,010   15,490  
Community, ancillary services and management fee revenue 484,488 329,167 1,416,397 975,915
Reimbursed costs incurred on behalf of managed communities 7,245   51,953   23,630   154,598  
Total operating revenues 491,733   381,120   1,440,027   1,130,513  
 
Expenses:
Community and ancillary services operations 329,627 216,943 973,216 643,987
General and administrative 28,130 23,082 86,461 69,492
Transaction costs 291 1,292 1,833 2,480
Impairments of long-lived assets 2,135
Depreciation and amortization 45,202 32,461 135,614 98,024
Lease expense 38,207 30,960 102,410 93,147
Costs incurred on behalf of managed communities 7,245   51,953   23,630   154,598  
Total operating expenses 448,702   356,691   1,323,164   1,063,863  
Operating income from continuing operations 43,031   24,429   116,863   66,650  
 
Other income (expense):
Interest income 118 101 346 303
Interest expense (71,441 ) (38,451 ) (215,730 ) (116,083 )
Change in fair value of derivative financial instruments (100 ) (174 ) 77 (919 )
 
Net equity losses for unconsolidated joint ventures (86 ) (28 ) (93 ) (500 )
Other, net 242   743   1,967   1,624  
Net other expense (71,267 ) (37,809 ) (213,433 ) (115,575 )
 
Loss from continuing operations before income taxes (28,236 ) (13,380 ) (96,570 ) (48,925 )
Benefit of (provision for) income taxes 177   (324 ) (2,119 ) (920 )
Loss from continuing operations (28,059 ) (13,704 ) (98,689 ) (49,845 )
Income (loss) from discontinued operations 146   (2,698 ) (5,222 ) (7,705 )
Net loss (27,913 ) (16,402 ) (103,911 ) (57,550 )
Net loss attributable to the noncontrolling interests 90   150   375   198  

Net loss attributable to Emeritus Corporation common shareholders
$ (27,823 ) $ (16,252 ) $ (103,536 ) $ (57,352 )

Basic and diluted loss per common share attributable to Emeritus Corporation common shareholders:
Continuing operations $ (0.59 ) $ (0.30 ) $ (2.12 ) $ (1.12 )
Discontinued operations   (0.06 ) (0.11 ) (0.17 )
$ (0.59 ) $ (0.36 ) $ (2.23 ) $ (1.29 )
 
Weighted average common shares outstanding: basic and diluted 46,962 44,642 46,401 44,612
 
   

EMERITUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)
 
Nine Months Ended September 30,
2013     2012
Cash flows from operating activities:
Net loss $ (103,911 ) $ (57,550 )
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization 135,614 98,024
Amortization of above/below market rents 3,700 4,990
Amortization of deferred gains (727 ) (782 )
Loss on lease termination 505
(Gain) loss on early extinguishment of debt (3 ) 813
Impairments of long-lived assets 5,206 8,430
Amortization of loan fees 2,307 2,465
Allowance for doubtful receivables 6,620 7,883
Net equity losses for unconsolidated joint ventures 93 500
Loss on sale of assets 50 527
Stock-based compensation 10,351 8,319
Change in fair value of derivative financial instruments (77 ) 919
Deferred straight-line rent 1,369 3,221
Deferred revenue 2,635 (755 )
Non-cash interest expense 24,738 1,985
Other 461 (108 )
Change in other operating assets and liabilities 4,910   31,740  
Net cash provided by operating activities 93,841   110,621  
 
Cash flows from investing activities:
Purchase of property and equipment (50,421 ) (21,621 )
Acquisitions (6,347 )
Proceeds from sale of assets 34,275 15,565
Advances from affiliates and other managed communities, net 12,944 814
Distributions from unconsolidated joint ventures, net 49,921 173
Other assets (11,639 ) (376 )
Net cash provided by (used in) investing activities 28,733   (5,445 )
 
Cash flows from financing activities:
Sale of stock, net 42,404 1,693
Proceeds from lease extensions 6,055
Distributions to noncontrolling interests, net (3,726 )
Increase in restricted deposits (785 ) (2,066 )
Debt issuance and other financing activities (1,492 ) (1,252 )
Proceeds from long-term borrowings and financings 68,102 17,703
Repayment of long-term borrowings and financings (163,815 ) (55,121 )
Repayment of capital lease and financing obligations (19,482 ) (12,450 )
Net cash used in financing activities (72,739 ) (51,493 )
 
Net increase in cash and cash equivalents 49,835 53,683
Cash and cash equivalents at the beginning of the period 59,795   43,670  
Cash and cash equivalents at the end of the period $ 109,630   $ 97,353  
 
 
Emeritus Corporation
Cash Lease and Interest Expense
Three Months Ended September 30, 2013
(In thousands)
      Projected
Actual Range
Q3-13 Q4-2013
Facility lease expense - GAAP $ 38,207 $ 49,000     $ 50,000
Less:
Straight-line rents (1,075 ) (3,600 ) (3,900 )
Above/below market rents (1,229 ) (1,200 ) (1,300 )
Plus:
Capital lease interest 47,652 47,000 48,000
Capital lease interest - noncash (8,459 ) (8,000 ) (9,000 )
Capital lease principal 6,672   6,000   7,000  
Facility lease expense - CASH $ 81,768   $ 89,200   $ 90,800  
 
Interest expense - GAAP $ 71,441 $ 72,000 $ 74,000
Less:
Capital lease interest (47,652 ) (47,000 ) (48,000 )
Loan fee amortization and other (789 ) (600 ) (700 )
Interest expense - CASH $ 23,000   $ 24,400   $ 25,300  
 
Depreciation - owned assets $ 20,513 $ 20,000 $ 21,000
Depreciation - capital leases 24,210 26,000 27,000
Amortization - intangible assets 479   1,400   2,000  
Total depreciation and amortization $ 45,202   $ 47,400   $ 50,000  
 
   
EMERITUS CORPORATION
Consolidated Supplemental Financial Information
For the Quarters Ended
(unaudited)
(Dollars in thousands, except non-financial and per-unit data)
               
 
                         

Non-Financial Data:
Q3 2012     Q4 2012     Q1 2013     Q2 2013     Q3 2013
Average consolidated communities 325 414 463 465 476
Average available units 29,513 36,672 40,524 40,757 42,109
Average occupied units 25,719 31,842 35,007 35,333 36,765
Average occupancy 87.1 % 86.8 % 86.4 % 86.7 % 87.3 %
Average monthly revenue per occupied unit $ 4,189 $ 4,077 $ 4,012 $ 4,014 $ 4,008
Calendar days 92 92 90 91 92
 

Community and Ancillary Services Revenues:
Community revenues $ 318,915 $ 385,888 $ 417,581 $ 422,288 $ 438,732
Move-in fees 5,753 5,503 5,503 5,430 5,538
Move-in incentives (1,434 )     (1,953 )     (1,722 )     (2,282 )     (2,186 )
Total community revenues 323,234 389,438 421,362 425,436 442,084
Ancillary services revenues 640       20,156       41,357       42,374       41,774  
Total community and ancillary services revenues 323,874       409,594       462,719       467,810       483,858  
 

Community and Ancillary Services Operating Expenses:
Salaries and wages - regular and overtime 99,334 119,305 127,713 129,904 135,849
Average daily salary and wages 1,080 1,297 1,419 1,428 1,477
Average daily wages per occupied unit 42 41 41 40 40
 
Payroll taxes and employee benefits 32,132 36,854 45,523 40,981 41,706
Percent of salaries and wages 32.3 % 30.9 % 35.6 % 31.5 % 30.7 %
 
Prior year self-insurance reserve adjustments 190 3,560 7,482 5,654 288
 
Utilities 14,805 15,328 18,595 16,963 21,090
Average monthly cost per occupied unit 192 160 177 160 191
 
Facility maintenance and repairs 8,643 9,787 11,830 11,674 12,783
Average monthly cost per occupied unit 112 102 113 110 116
 
All other community operating expenses 61,277 75,365 81,140 81,970 84,945
Average monthly cost per occupied unit 794 789 773 773 770
                         
Community operating expenses 216,381 260,199 292,283 287,146 296,661
Ancillary services operating expenses 562       15,449       31,458       32,702       32,966  
Total community and ancillary services operating expenses 216,943       275,648       323,741       319,848       329,627  
 
Community operating income $ 106,853       $ 129,239       $ 129,079       $ 138,290       $ 145,423  
Consolidated operating income $ 106,931       $ 133,946       $ 138,978       $ 147,962       $ 154,231  
 
Operating income margin - Communities 33.1 % 33.2 % 30.6 % 32.5 % 32.9 %
Operating income margin - Consolidated 33.0 % 32.7 % 30.0 % 31.6 % 31.9 %
 
 
EMERITUS CORPORATION
Selected Consolidated and Same Community Information
For the Quarters Ended
(unaudited)
(Community and ancillary revenue and operating expense in thousands)
                             
Q3 2012     Q4 2012     Q1 2013     Q2 2013     Q3 2013

Consolidated:
               
Average consolidated communities 325 414 463 465 476
Community and ancillary revenue $ 323,874 $ 409,594 $ 462,719 $ 467,810 $ 483,858
Community and ancillary operating expense 216,943 275,648 323,741 319,848 329,627
Average occupancy 87.1 % 86.8 % 86.4 % 86.7 % 87.3 %
Average monthly revenue per unit $ 4,189 $ 4,077 $ 4,012 $ 4,014 $ 4,008
Operating income margin 33.0 % 32.7 % 30.0 % 31.6 % 31.9 %
 

Consolidated Same Community:
Average consolidated communities 320 320 320 320 320
Community revenue $ 319,896 $ 321,637 $ 320,996 $ 321,214 $ 323,015
Community operating expense 213,631 210,529 217,175 212,504 218,633
Average occupancy 87.4 % 87.2 % 86.7 % 86.8 % 87.1 %
Average monthly revenue per unit $ 4,196 $ 4,226 $ 4,244 $ 4,241 $ 4,247
Operating income margin 33.2 % 34.5 % 32.3 % 33.8 % 32.3 %
 

Total Portfolio Same Community:
Average consolidated communities 470 470 470 470 470
Community revenue $ 426,315 $ 429,470 $ 430,114 $ 432,150 $ 435,336
Community operating expense 286,519 282,206 289,964 285,592 293,378
Management fees 5,190 2,382 673 526 561
Average occupancy 86.8 % 86.8 % 86.5 % 86.7 % 87.1 %
Average monthly revenue per unit $ 3,964 $ 3,995 $ 4,015 $ 4,022 $ 4,036
Operating income margin 32.8 % 34.3 % 32.6 % 33.9 % 32.6 %

Copyright Business Wire 2010

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