Attached files
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| 8-K - 8-K - FIVE STAR SENIOR LIVING INC. | fve-20210505.htm |
| EX-99.2 - EX-99.2 - FIVE STAR SENIOR LIVING INC. | fveinvestorpresentation1.htm |
Exhibit 99.1
 | 400 Centre Street Newton, Massachusetts 02458 | ||||
| 617-796-8387 | |||||
| fivestarseniorliving.com | |||||
FOR IMMEDIATE RELEASE | |||||
Five Star Senior Living Inc. Announces First Quarter 2021 Results
First Quarter Total Management and Operating Revenues of $50.5 Million
First Quarter Net Income of $3.3 Million and Net Income Per Diluted Share of $0.10
Recently Announced Strategic Plan Will Reposition
Senior Living Management Business and Completely
Exit the Skilled Nursing Business
Newton, MA (May 5, 2021): Five Star Senior Living Inc. (Nasdaq: FVE) today announced its financial results for the quarter ended March 31, 2021.
Katherine Potter, President and Chief Executive Officer, made the following statement:
"Our recently announced strategic business plan is designed to further improve our senior living operations as we reshape our management business to focus on areas of operational strength as well as direct our efforts towards where we see the strongest market opportunities with the active, aging adult population. We believe this sharpened focus on larger and lower acuity communities will not only highlight our expertise as a senior living operator, but also support the evolution of our services business to better serve our target demographic and continue to diversify our revenue sources.
We are pleased to have completed all vaccination clinics across our communities and proud of our organization for its dedicated response throughout the COVID-19 pandemic. Our commitment to safety and wellness underscores our ongoing mission to enrich the resident experience at our communities and drive the recovery and future success of our business. We are encouraged to see positive momentum with move-ins and occupancy trends over the course of March and April, with 90 net positive moves since March 31st in our comparable communities.
Our rehabilitation and wellness services will continue to be an integral part of our company as we implement our strategic plan. In the first quarter, Ageility opened eight net new outpatient rehabilitation clinics. This segment represents approximately 39% of our total management and operating revenues. Our financial position remains strong with $109.5 million of unrestricted cash on our balance sheet and no amounts outstanding on our revolving credit facility. We feel confident in our ability to execute our strategic plan throughout 2021 and beyond."
First Quarter Highlights:
•As of May 1, 2021, all of FVE's senior living communities have completed vaccination clinics and over 85% of FVE's residents have received a COVID-19 vaccine. At May 1, 2021, all of FVE's owned, leased and managed senior living communities were accepting new residents in at least one service line of business (independent living, assisted living or memory care). Combined senior living revenues and management fees, including those for communities FVE manages on behalf of Diversified Healthcare Trust, or DHC, for the first quarter ended March 31, 2021 decreased to $30.9 million from $38.0 million for the same period in 2020, primarily due to decreased average occupancy resulting from the impact of the COVID-19 pandemic as well as the impact of the sale of nine senior living communities and closure of seven senior living communities in 2020 that FVE previously managed on behalf of DHC. Spot occupancy at communities FVE owns and leases as of March 31, 2021 was 68.2%, which represents a 150 basis points decrease as compared to December 31, 2020. Spot occupancy at the communities FVE manages on behalf of DHC was 70.2% as of March 31, 2021, which is a 60 basis points decrease when compared to December 31, 2020.
•Rehabilitation and wellness services revenues for the first quarter of 2021 decreased to $19.6 million from $21.4 million for the same period in 2020, primarily due to a reduction of inpatient clinic visits as a result of the COVID-19 pandemic partially offset by the opening of 21 net new Ageility physical therapeutic clinics since January 1, 2020. For the first quarter of 2021, Ageility opened 8 net new outpatient rehabilitation clinics.
•Net income for the first quarter of 2021 was $3.3 million, or $0.10 per diluted share, compared to a net loss of $17.2 million, or $0.55 per diluted share, for the first quarter of 2020, which included $22.9 million of one-time expenses related to the termination of leases for communities FVE previously leased from DHC. Net income for the first quarter of 2021 was impacted by $7.8 million of Provider Relief Funds received and recognized under the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, primarily for our senior living communities, which continued to experience a reduction of revenues and increased expenses related to decreased occupancy and other impacts of the COVID-19 pandemic.
•Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the first quarter of 2021 was $6.8 million compared to $(13.1) million for the first quarter of 2020. Adjusted EBITDA, as described further below, was $6.9 million for the first quarter of 2021 compared to $12.4 million for the first quarter of 2020. EBITDA and Adjusted EBITDA for the first quarter of 2021 includes $7.8 million of Provider Relief Funds received and recognized under the CARES Act. EBITDA and Adjusted EBITDA are non-GAAP financial measures. Reconciliations of net income determined in accordance with GAAP to EBITDA and Adjusted EBITDA for the first quarters of 2021 and 2020 are presented later in this press release.
•As of March 31, 2021, FVE had unrestricted cash and cash equivalents of $109.5 million. In addition, FVE had no amounts outstanding under its $65.0 million revolving credit facility.
Strategic Plan
On April 9, 2021, FVE announced a new strategic plan, or the Strategic Plan, to reposition its senior living management business to focus on larger independent living, assisted living and memory care communities as well as stand-alone independent living and active adult communities.
Pursuant to the Strategic Plan, FVE intends to, among other things, (i) amend its management arrangements with DHC to transition 108 senior living communities, with approximately 7,500 living units, that FVE currently manages for DHC, to new operators, (ii) close and reposition 27 skilled nursing units, with approximately 1,500 living units, in continuing care retirement communities, or CCRCs, that FVE will continue to manage for DHC, (iii) close 37 Ageility inpatient rehabilitation clinics in certain transitioning communities and (iv) eliminate certain positions in FVE's corporate, regional and divisional teams as well as impacted units and clinics.
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In connection with implementing the Strategic Plan, FVE expects to incur non-recurring cash expenses of up to $20.5 million, approximately $15.0 million of which FVE expects DHC will reimburse. These expenses are expected to include up to $7.5 million of retention bonus payments, up to $10.2 million of severance, benefits and transition expenses, and up to $2.8 million of restructuring expenses, of which FVE expects DHC to reimburse approximately $5.9 million, $7.5 million and $1.6 million, respectively. FVE expects to complete the transitions and closures contemplated by the Strategic Plan, or the Transition, by the end of 2021.
Presented below is a summary of the units FVE operated (owned, leased and managed) as of March 31, 2021 and the projected number of units to be operated after the Transition, as if it had been completed as of January 1, 2021:
| As of March 31, 2021 | After Transition | |||||||||||||
Units (1) | Units (2) | |||||||||||||
| Independent living | 10,979 | 10,421 | ||||||||||||
| Assisted living | 12,109 | 7,940 | ||||||||||||
| Memory care | 3,220 | 1,847 | ||||||||||||
| Skilled nursing | 2,957 | — | ||||||||||||
| Total | 29,265 | 20,208 | ||||||||||||
_______________________________________
(1) The units operated as of March 31, 2021 include 2,099 owned, 203 leased, and 26,963 managed.
(2) As if the Transition had been completed on January 1, 2021, the units operated as of March 31, 2021 include 2,099 owned, 203 leased, and 17,906 managed.
Presented below is a summary of the communities, units, average occupancy, spot occupancy, revenues and management fees for the communities FVE manages for DHC as of March 31, 2021 and for the communities to be managed for DHC after the Transition as if it had been completed as of January 1, 2021 (dollars in thousands):
| As of March 31, 2021 | ||||||||||||||||||||||||||||||||||||||
| Communities | Units | Average Occupancy | Spot Occupancy | Community Revenues (1) | Management Fees | |||||||||||||||||||||||||||||||||
| Independent and assisted living communities | 182 | 17,435 | 69.6 | % | 70.0 | % | $ | 149,385 | $ | 8,104 | ||||||||||||||||||||||||||||
| Continuing care retirement communities | 37 | 8,573 | 70.1 | % | 71.0 | % | 94,740 | 4,948 | ||||||||||||||||||||||||||||||
| Skilled nursing facilities | 9 | 955 | 62.8 | % | 65.4 | % | 15,841 | 798 | ||||||||||||||||||||||||||||||
| Total | 228 | 26,963 | 69.5 | % | 70.2 | % | $ | 259,966 | $ | 13,850 | ||||||||||||||||||||||||||||
| After Transition | ||||||||||||||||||||||||||||||||||||||
| Communities | Units | Average Occupancy | Spot Occupancy | Community Revenues (1) | Management Fees (2) | |||||||||||||||||||||||||||||||||
| Independent and assisted living communities | 91 | 12,012 | 70.7 | % | 71.3 | % | $ | 104,221 | $ | 5,689 | ||||||||||||||||||||||||||||
| Continuing care retirement communities | 29 | 5,894 | 76.8 | % | 76.9 | % | 54,057 | 2,891 | ||||||||||||||||||||||||||||||
| Skilled nursing facilities | — | — | — | % | — | % | — | — | ||||||||||||||||||||||||||||||
| Total | 120 | 17,906 | 72.7 | % | 73.2 | % | $ | 158,278 | $ | 8,580 | ||||||||||||||||||||||||||||
_______________________________________
(1) Represents the revenues of the senior living communities FVE manages on behalf of DHC. Managed senior living communities' revenues do not represent FVE's revenues and are included to provide supplemental information regarding the operating results and financial condition of the communities from which FVE earns management fees.
(2) Excludes management fee revenue of $5.3 million in the quarter ended March 31, 2021 related to (i) 108 senior living communities managed on behalf of DHC, with approximately 7,500 living units that are expected to be transitioned to new operators and (ii) approximately 1,500 skilled nursing facility units that are expected to be closed and repositioned in 27 CCRCs that FVE will continue to manage for DHC.
Following the Transition, FVE will continue to manage 120 senior living communities for DHC, representing 17,906 living units and approximately 60% of FVE's management fee revenues as of March 31, 2021, and to operate its existing owned portfolio of 20 communities with approximately 2,100 living units. FVE expects to partially offset the resulting revenue loss from fees we earn from the 108 transitioning senior living communities with expense reductions to right-size operations.
The 120 senior living communities that FVE will continue to manage for DHC after the Transition outperformed the total DHC managed portfolio (exclusive of the pending closing and repositioning of approximately 1,500 skilled nursing facility units in
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27 of the CCRCs) for the quarter ended March 31, 2021 with approximately 400 basis points higher operating margin and EBITDA margin.
In addition to the Transition of 108 managed communities owned by DHC, the landlord of our four leased senior living communities with 203 living units is currently marketing these properties for sale and we are unlikely to operate those four communities long-term.
Presented below is a summary of FVE's Ageility rehabilitation clinics as of March 31, 2021 and the number of clinics to be operated after the Transition as if it had been completed as of January 1, 2021 (dollars in thousands):
| As of March 31, 2021 | After Transition | |||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Clinics | Total Revenue (3) | Average Revenue per Clinic | Adjusted EBITDA Margin | Number of Clinics | Total Revenue (1)(3) | Average Revenue per Clinic | Adjusted EBITDA Margin | |||||||||||||||||||||||||||||||||||||||||||
| Inpatient Clinics in DHC Communities | 37 | $ | 5,441 | $ | 147 | 26.1 | % | — | $ | — | $ | — | — | % | ||||||||||||||||||||||||||||||||||||
| Outpatient Clinics in DHC Communities | 91 | 7,734 | 85 | 15.3 | % | 91 | 7,734 | 85 | 15.3 | % | ||||||||||||||||||||||||||||||||||||||||
Outpatient Clinics in Transition Communities(2) | 44 | 1,863 | 42 | 18.5 | % | 44 | 1,863 | 42 | 18.5 | % | ||||||||||||||||||||||||||||||||||||||||
| Total Clinics at DHC Communities | 172 | 15,038 | 87 | 19.6 | % | 135 | 9,597 | 71 | 15.9 | % | ||||||||||||||||||||||||||||||||||||||||
Outpatient Clinics at Other Communities(4) | 80 | 4,234 | 53 | 11.8 | % | 80 | 4,234 | 53 | 11.8 | % | ||||||||||||||||||||||||||||||||||||||||
| Total Clinics | 252 | $ | 19,272 | $ | 76 | 17.9 | % | 215 | $ | 13,831 | $ | 64 | 14.6 | % | ||||||||||||||||||||||||||||||||||||
_______________________________________
(1) Excludes revenue of $5.4 million in the quarter ended March 31, 2021 for inpatient clinics, which are expected to be closed as part of the Transition.
(2) As part of the Transition, FVE expects 108 senior living communities managed on behalf of DHC to be transitioned to new operators. These communities have 44 Ageility outpatient rehabilitation clinics, which, due to the transfer to a new operator, may be subject to closure by the new operator.
(3) Total Ageility revenue excludes home health care services, which are a part of the rehabilitation and wellness services segment.
(4) Other communities includes 16 outpatient clinics at owned communities.
Conference Call Information:
At 1:00 p.m. Eastern Time on May 6, 2021, our President and Chief Executive Officer, Katherine Potter, Executive Vice President and Chief Operating Officer, Margaret Wigglesworth, and Executive Vice President, Chief Financial Officer and Treasurer, Jeffrey Leer, will host a conference call to discuss FVE's first quarter 2021 financial results.
The conference call telephone number is (877) 329-4332. Participants calling from outside the United States and Canada should dial (412) 317-5436. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 11:59 p.m. Eastern Time on May 13, 2021. To hear the replay, dial (412) 317-0088. The replay pass code is 10153734.
A live audio webcast of the conference call will also be available in a listen-only mode on FVE’s website, www.fivestarseniorliving.com. Participants wanting to access the webcast should visit FVE’s website about five minutes before the call. The archived webcast will be available for replay on FVE’s website following the call for about a week. The transcription, recording and retransmission in any way of FVE's first quarter ended March 31, 2021 financial results conference call are strictly prohibited without the prior written consent of FVE. FVE’s website is not incorporated as part of this press release.
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About Five Star Senior Living Inc.:
FVE is a senior living and rehabilitation and wellness services company. As of March 31, 2021, FVE operated 252 senior living communities (29,265 living units) located in 31 states, including 228 communities (26,963 living units) that it managed and 24 communities (2,302 living units) that it owned or leased. FVE operates independent living, assisted living, and memory care communities, continuing care retirement communities and skilled nursing facilities. Additionally, FVE's rehabilitation and wellness services segment includes Ageility Physical Therapy SolutionsTM, or Ageility, a division of FVE, which provides rehabilitation and wellness services within FVE communities as well as to external customers. As of March 31, 2021, Ageility operated 215 outpatient rehabilitation clinics and 37 inpatient rehabilitation clinics in 28 states. FVE is headquartered in Newton, Massachusetts.
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Five Star Senior Living Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per share amounts)
(unaudited)
| Three Months Ended March 31, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| REVENUES | ||||||||||||||
| Rehabilitation and wellness services | $ | 19,553 | $ | 21,384 | ||||||||||
| Senior living | 17,057 | 20,997 | ||||||||||||
| Management fees | 13,850 | 17,051 | ||||||||||||
| Total management and operating revenues | 50,460 | 59,432 | ||||||||||||
| Reimbursed community-level costs incurred on behalf of managed communities | 213,160 | 232,016 | ||||||||||||
| Other reimbursed expenses | 5,480 | 5,997 | ||||||||||||
| Total revenues | 269,100 | 297,445 | ||||||||||||
| Other operating income | 7,793 | — | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||
| Rehabilitation and wellness services expenses | 16,210 | 17,501 | ||||||||||||
| Senior living wages and benefits | 12,013 | 9,800 | ||||||||||||
| Other senior living operating expenses | 6,266 | 3,938 | ||||||||||||
| Community-level costs incurred on behalf of managed communities | 213,160 | 232,016 | ||||||||||||
| General and administrative | 22,641 | 22,865 | ||||||||||||
| Depreciation and amortization | 2,940 | 2,701 | ||||||||||||
| Total operating expenses | 273,230 | 288,821 | ||||||||||||
| Operating income | 3,663 | 8,624 | ||||||||||||
| Interest, dividend and other income | 84 | 339 | ||||||||||||
| Interest and other expense | (463) | (382) | ||||||||||||
| Unrealized gain (loss) on equity investments | 135 | (1,462) | ||||||||||||
| Realized gain (loss) on sale of debt and equity investments | 96 | (21) | ||||||||||||
| Loss on termination of leases | — | (22,899) | ||||||||||||
| Income (loss) before income taxes | 3,515 | (15,801) | ||||||||||||
| Provision for income taxes | (200) | (1,408) | ||||||||||||
| Net income (loss) | $ | 3,315 | $ | (17,209) | ||||||||||
| Weighted average shares outstanding—basic | 31,530 | 31,448 | ||||||||||||
| Weighted average shares outstanding—diluted | 31,662 | 31,448 | ||||||||||||
| Net income (loss) per share—basic | $ | 0.11 | $ | (0.55) | ||||||||||
| Net income (loss) per share—diluted | $ | 0.10 | $ | (0.55) | ||||||||||
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Five Star Senior Living Inc.
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)
(unaudited)
Non-GAAP financial measures are financial measures that are not determined in accordance with U.S. generally accepted accounting principles, or GAAP. FVE believes the non-GAAP financial measures presented in the table below are meaningful supplemental disclosures because they may help investors better understand changes in FVE’s operating results and its ability to meet FVE's financial obligations or service debt, make capital expenditures and expand its business. These non-GAAP financial measures may also help investors make comparisons between FVE and other companies on both a GAAP and non-GAAP basis. FVE believes that EBITDA and Adjusted EBITDA are meaningful financial measures that may help investors better understand its financial performance, including by allowing investors to compare FVE's performance between periods and to the performance of other companies. FVE management uses EBITDA and Adjusted EBITDA to evaluate FVE’s financial performance and compare FVE’s performance over time and to the performance of other companies. FVE calculates EBITDA and Adjusted EBITDA as shown below. These measures should not be considered as alternatives to net income (loss) or operating income, as indicators of FVE’s operating performance or as measures of FVE’s liquidity. Also, EBITDA and Adjusted EBITDA as presented may not be comparable to similarly titled amounts calculated by other companies.
FVE believes that net income (loss) is the most directly comparable financial measure, determined according to GAAP, to FVE’s presentation of EBITDA and Adjusted EBITDA. The following table presents the reconciliation of these non-GAAP financial measures to net income (loss) for the three months ended March 31, 2021 and 2020.
| Three Months Ended March 31, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| Net income (loss) | $ | 3,315 | $ | (17,209) | ||||||||||
| Add (less): | ||||||||||||||
| Interest and other expense | 463 | 382 | ||||||||||||
| Interest, dividend and other income | (84) | (339) | ||||||||||||
| Provision for income taxes | 200 | 1,408 | ||||||||||||
| Depreciation and amortization | 2,940 | 2,701 | ||||||||||||
| EBITDA | 6,834 | (13,057) | ||||||||||||
| Add (less): | ||||||||||||||
| Unrealized (gain) loss on equity investments | (135) | 1,462 | ||||||||||||
Loss on termination of leases (1) | — | 22,899 | ||||||||||||
Transaction costs (2) | 250 | 1,095 | ||||||||||||
| Adjusted EBITDA | $ | 6,949 | $ | 12,399 | ||||||||||
_______________________________________
(1) Represents the excess of the fair value of the shares issued to DHC as of January 1, 2020 of $97,899, compared to the consideration of $75,000 paid by DHC as part of the transaction agreement to restructure FVE's business arrangements with DHC, or the Restructuring Transactions.
(2) Includes costs incurred related to the strategic plan announced on April 9, 2021 and the Restructuring Transactions for the quarters ended March 31, 2021 and 2020, respectively.
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Five Star Senior Living Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands, except per share amounts)
(unaudited)
| March 31, | December 31, | |||||||||||||
| 2021 | 2020 | |||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 109,485 | $ | 84,351 | ||||||||||
| Restricted cash and cash equivalents | 23,717 | 23,877 | ||||||||||||
| Accounts receivable, net of allowance | 9,558 | 9,104 | ||||||||||||
| Due from related person | 86,204 | 96,357 | ||||||||||||
| Debt and equity investments | 19,528 | 19,961 | ||||||||||||
| Prepaid expenses and other current assets | 22,376 | 28,658 | ||||||||||||
| Total current assets | 270,868 | 262,308 | ||||||||||||
| Property and equipment, net | 158,716 | 159,251 | ||||||||||||
| Operating lease right-of-use assets | 27,040 | 18,030 | ||||||||||||
| Finance lease right-of-use assets | 4,160 | 4,493 | ||||||||||||
| Restricted cash and cash equivalents | 1,189 | 1,369 | ||||||||||||
| Restricted debt and equity investments | 4,945 | 4,788 | ||||||||||||
| Equity investment of an investee, net | 11 | 11 | ||||||||||||
| Other long-term assets | 4,201 | 3,956 | ||||||||||||
| Total assets | $ | 471,130 | $ | 454,206 | ||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 24,401 | $ | 23,454 | ||||||||||
| Accrued expenses and other current liabilities | 45,190 | 41,843 | ||||||||||||
| Accrued compensation and benefits | 73,675 | 70,543 | ||||||||||||
| Accrued self-insurance obligations | 28,155 | 31,355 | ||||||||||||
| Operating lease liabilities | 2,230 | 2,567 | ||||||||||||
| Finance lease liabilities | 824 | 808 | ||||||||||||
| Due to related persons | 3,859 | 6,585 | ||||||||||||
| Mortgage note payable | 394 | 388 | ||||||||||||
| Security deposits and current portion of continuing care contracts | 338 | 365 | ||||||||||||
| Total current liabilities | 179,066 | 177,908 | ||||||||||||
| Long-term liabilities: | ||||||||||||||
| Accrued self-insurance obligations | 41,098 | 37,420 | ||||||||||||
| Operating lease liabilities | 26,472 | 17,104 | ||||||||||||
| Finance lease liabilities | 3,710 | 3,921 | ||||||||||||
| Mortgage note payable | 6,682 | 6,783 | ||||||||||||
| Other long-term liabilities | 474 | 538 | ||||||||||||
| Total long-term liabilities | 78,436 | 65,766 | ||||||||||||
| Shareholders’ equity: | ||||||||||||||
| Common stock, par value $0.01 | 317 | 317 | ||||||||||||
| Additional paid-in-capital | 460,113 | 460,038 | ||||||||||||
| Accumulated deficit | (247,824) | (251,139) | ||||||||||||
| Accumulated other comprehensive income | 1,022 | 1,316 | ||||||||||||
| Total shareholders’ equity | 213,628 | 210,532 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 471,130 | $ | 454,206 | ||||||||||
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Supplemental Information
Five Star Senior Living Inc.
Supplemental Financial Data
(dollars in thousands)
(unaudited)
Management and Operating Revenues by Product Type
| Three Months Ended March 31, 2021 | |||||||||||||||||||||||
| Management and Operating Revenues by Product Type: | Senior Living | Management Fees | Rehabilitation and Wellness Services | Total Revenues | |||||||||||||||||||
| Independent and assisted living community revenues | $ | 17,057 | $ | 8,104 | $ | — | $ | 25,161 | |||||||||||||||
| Continuing care retirement community revenues | — | 4,948 | — | 4,948 | |||||||||||||||||||
| Skilled nursing facility revenues | — | 798 | — | 798 | |||||||||||||||||||
| Rehabilitation and wellness services revenues | — | — | 19,553 | 19,553 | |||||||||||||||||||
| Total management and operating revenues | $ | 17,057 | $ | 13,850 | $ | 19,553 | $ | 50,460 | |||||||||||||||
| Three Months Ended March 31, 2020 | |||||||||||||||||||||||
| Management and Operating Revenues by Product Type: | Senior Living | Management Fees | Rehabilitation and Wellness Services | Total Revenues | |||||||||||||||||||
| Independent and assisted living community revenues | $ | 20,997 | $ | 9,563 | $ | — | $ | 30,560 | |||||||||||||||
| Continuing care retirement community revenues | — | 6,337 | — | 6,337 | |||||||||||||||||||
| Skilled nursing facility revenues | — | 1,151 | — | 1,151 | |||||||||||||||||||
| Rehabilitation and wellness services revenues | — | — | 21,384 | 21,384 | |||||||||||||||||||
| Total management and operating revenues | $ | 20,997 | $ | 17,051 | $ | 21,384 | $ | 59,432 | |||||||||||||||
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Supplemental Information
Five Star Senior Living Inc.
Supplemental Financial Data
(dollars in thousands)
(unaudited)
Comparable Management and Operating Revenues by Product Type (1)
| Three Months Ended March 31, 2021 | |||||||||||||||||||||||
| Management and Operating Revenues by Product Type: | Senior Living | Management Fees | Rehabilitation and Wellness Services | Total Revenues | |||||||||||||||||||
| Independent and assisted living community revenues | $ | 17,057 | $ | 5,689 | $ | — | $ | 22,746 | |||||||||||||||
| Continuing care retirement community revenues | — | 2,891 | — | 2,891 | |||||||||||||||||||
| Skilled nursing facility revenues | — | — | — | — | |||||||||||||||||||
| Rehabilitation and wellness services revenues | — | — | 12,813 | 12,813 | |||||||||||||||||||
| Total management and operating revenues | $ | 17,057 | $ | 8,580 | $ | 12,813 | $ | 38,450 | |||||||||||||||
| Three Months Ended March 31, 2020 | |||||||||||||||||||||||
| Management and Operating Revenues by Product Type: | Senior Living | Management Fees | Rehabilitation and Wellness Services | Total Revenues | |||||||||||||||||||
| Independent and assisted living community revenues | $ | 20,330 | $ | 6,425 | $ | — | $ | 26,755 | |||||||||||||||
| Continuing care retirement community revenues | — | 3,204 | — | 3,204 | |||||||||||||||||||
| Skilled nursing facility revenues | — | — | — | — | |||||||||||||||||||
| Rehabilitation and wellness services revenues | — | — | 12,788 | 12,788 | |||||||||||||||||||
| Total management and operating revenues | $ | 20,330 | $ | 9,629 | $ | 12,788 | $ | 42,747 | |||||||||||||||
_______________________________________
(1) The tables for the three months ended March 31, 2021 and 2020 include data for 24 owned and leased senior living communities, 120 managed senior living communities and 184 rehabilitation clinics that FVE has continuously owned, continuously leased or continuously managed since January 1, 2020. Per the Strategic Plan, the summary of operations for comparable communities and clinics excludes (i) 108 senior living communities managed on behalf of DHC, with approximately 7,500 living units, that are expected to be transitioned to new operators, (ii) approximately 1,500 skilled nursing facility units that are expected to be closed and repositioned in 27 CCRCs that FVE will continue to manage for DHC and (iii) 37 Ageility inpatient rehabilitation clinics operating in certain transitioning communities that are expected to be closed. In addition, the landlord of the four leased communities included in the 24 owned and leased senior living communities data above is currently marketing these properties for sale and FVE is unlikely to operate these four communities long-term.
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Supplemental Information
Five Star Senior Living Inc.
Senior Living Segment Data
(dollars in thousands, except per unit amounts)
(unaudited)
| Three Months Ended | ||||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||||||||||||||||
| Owned and Leased Communities | ||||||||||||||||||||||||||||||||
| Independent and assisted living communities: | ||||||||||||||||||||||||||||||||
| Revenues | $ | 17,057 | $ | 17,903 | $ | 18,525 | $ | 19,590 | $ | 20,997 | ||||||||||||||||||||||
Other operating income (1) | 7,774 | 1,715 | — | — | — | |||||||||||||||||||||||||||
| Operating expenses | 20,414 | 21,181 | 19,661 | 20,165 | 17,470 | |||||||||||||||||||||||||||
| Operating income (loss) | 4,417 | (1,563) | (1,136) | (575) | 3,527 | |||||||||||||||||||||||||||
| Operating margin | 17.8 | % | (8.0) | % | (6.1) | % | (2.9) | % | 16.8 | % | ||||||||||||||||||||||
| Number of communities (end of period) | 24 | 24 | 24 | 24 | 24 | |||||||||||||||||||||||||||
Number of living units (end of period) (2) | 2,302 | 2,302 | 2,312 | 2,312 | 2,312 | |||||||||||||||||||||||||||
Average occupancy | 68.3 | % | 71.5 | % | 74.7 | % | 78.3 | % | 81.3 | % | ||||||||||||||||||||||
| Spot occupancy | 68.2 | % | 69.7 | % | 73.0 | % | 76.3 | % | 80.3 | % | ||||||||||||||||||||||
RevPAR (3) | $ | 2,479 | $ | 2,596 | $ | 2,665 | $ | 2,813 | $ | 2,930 | ||||||||||||||||||||||
Managed Communities (4) | ||||||||||||||||||||||||||||||||
| Independent and assisted living communities: | ||||||||||||||||||||||||||||||||
| Management fees | $ | 8,104 | $ | 8,515 | $ | 8,751 | $ | 9,088 | $ | 9,563 | ||||||||||||||||||||||
| Community-level revenues | 149,385 | 157,267 | 167,436 | 174,634 | 185,516 | |||||||||||||||||||||||||||
Other operating income (1) | 770 | 1,677 | — | 14 | — | |||||||||||||||||||||||||||
| Community-level expenses | 137,876 | 139,623 | 145,399 | 139,175 | 143,608 | |||||||||||||||||||||||||||
| Community operating income | 12,279 | 19,321 | 22,037 | 35,473 | 41,908 | |||||||||||||||||||||||||||
| Community operating margin | 8.2 | % | 12.2 | % | 13.2 | % | 20.3 | % | 22.6 | % | ||||||||||||||||||||||
Number of communities (end of period) (5) | 182 | 182 | 189 | 191 | 193 | |||||||||||||||||||||||||||
Number of living units (end of period) (2)(5) | 17,435 | 17,440 | 18,032 | 18,148 | 18,395 | |||||||||||||||||||||||||||
| Average occupancy | 69.6 | % | 72.5 | % | 75.5 | % | 79.1 | % | 82.9 | % | ||||||||||||||||||||||
| Spot occupancy | 70.0 | % | 71.1 | % | 74.1 | % | 77.7 | % | 82.2 | % | ||||||||||||||||||||||
RevPAR (3) | $ | 2,855 | $ | 2,969 | $ | 3,088 | $ | 3,207 | $ | 3,360 | ||||||||||||||||||||||
| Continuing care retirement communities: | ||||||||||||||||||||||||||||||||
| Management fees | $ | 4,948 | $ | 5,272 | $ | 5,451 | $ | 5,485 | $ | 6,337 | ||||||||||||||||||||||
| Community-level revenues | 94,740 | 100,781 | 100,765 | 106,937 | 123,498 | |||||||||||||||||||||||||||
Other operating income (1) | 606 | 7,997 | — | 3,792 | — | |||||||||||||||||||||||||||
| Community-level expenses | 92,894 | 98,221 | 102,103 | 99,071 | 103,946 | |||||||||||||||||||||||||||
| Community operating income (loss) | 2,452 | 10,557 | (1,338) | 11,658 | 19,552 | |||||||||||||||||||||||||||
| Community operating margin | 2.6 | % | 9.7 | % | (1.3) | % | 10.5 | % | 15.8 | % | ||||||||||||||||||||||
| Number of communities (end of period) | 37 | 37 | 39 | 39 | 40 | |||||||||||||||||||||||||||
Number of living units (end of period) (2)(6) | 8,573 | 8,574 | 8,936 | 8,936 | 9,301 | |||||||||||||||||||||||||||
| Average occupancy | 70.1 | % | 72.8 | % | 75.6 | % | 79.1 | % | 83.4 | % | ||||||||||||||||||||||
| Spot occupancy | 71.0 | % | 71.2 | % | 74.4 | % | 78.3 | % | 81.3 | % | ||||||||||||||||||||||
RevPAR (3) | $ | 3,683 | $ | 3,813 | $ | 3,759 | $ | 3,989 | $ | 4,426 | ||||||||||||||||||||||
| See the next page for footnote references to the table above | ||||||||||||||||||||||||||||||||
11
Supplemental Information
| Three Months Ended | ||||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||||||||||||||||
| Skilled nursing facilities: | ||||||||||||||||||||||||||||||||
| Management fees | $ | 798 | $ | 1,035 | $ | 1,100 | $ | 1,132 | $ | 1,151 | ||||||||||||||||||||||
| Community-level revenues | 15,841 | 20,589 | 21,900 | 22,532 | 22,956 | |||||||||||||||||||||||||||
Other operating income (1) | 241 | 2,846 | — | 2,022 | — | |||||||||||||||||||||||||||
| Community-level expenses | 16,401 | 23,834 | 22,831 | 22,009 | 21,854 | |||||||||||||||||||||||||||
| Community operating (loss) income | (319) | (399) | (931) | 2,545 | 1,102 | |||||||||||||||||||||||||||
| Community operating margin | (2.0) | % | (1.7) | % | (4.3) | % | 10.4 | % | 4.8 | % | ||||||||||||||||||||||
| Number of communities (end of period) | 9 | 9 | 11 | 11 | 11 | |||||||||||||||||||||||||||
Number of living units (end of period) (2)(7) | 955 | 955 | 1,264 | 1,264 | 1,264 | |||||||||||||||||||||||||||
| Average occupancy | 62.8 | % | 64.2 | % | 68.8 | % | 70.1 | % | 73.3 | % | ||||||||||||||||||||||
| Spot occupancy | 65.4 | % | 60.3 | % | 69.2 | % | 68.5 | % | 72.6 | % | ||||||||||||||||||||||
RevPAR (3) | $ | 5,529 | $ | 5,655 | $ | 5,775 | $ | 5,942 | $ | 6,054 | ||||||||||||||||||||||
| Total managed communities: | ||||||||||||||||||||||||||||||||
| Management fees | $ | 13,850 | $ | 14,822 | $ | 15,302 | $ | 15,705 | $ | 17,051 | ||||||||||||||||||||||
| Community-level revenues | 259,966 | 278,637 | 290,101 | 304,103 | 331,970 | |||||||||||||||||||||||||||
Other operating income (1) | 1,617 | 12,520 | — | 5,828 | — | |||||||||||||||||||||||||||
| Community-level expenses | 247,171 | 261,678 | 270,333 | 260,255 | 269,408 | |||||||||||||||||||||||||||
| Community operating income | 14,412 | 29,479 | 19,768 | 49,676 | 62,562 | |||||||||||||||||||||||||||
| Community operating margin | 5.5 | % | 10.1 | % | 6.8 | % | 16.0 | % | 18.8 | % | ||||||||||||||||||||||
| Number of communities (end of period) | 228 | 228 | 239 | 241 | 244 | |||||||||||||||||||||||||||
Number of living units (end of period) (2) | 26,963 | 26,969 | 28,232 | 28,348 | 28,960 | |||||||||||||||||||||||||||
| Average occupancy | 69.5 | % | 72.2 | % | 75.2 | % | 78.7 | % | 82.6 | % | ||||||||||||||||||||||
| Spot occupancy | 70.2 | % | 70.8 | % | 74.0 | % | 77.5 | % | 81.5 | % | ||||||||||||||||||||||
RevPAR (3) | $ | 3,213 | $ | 3,355 | $ | 3,420 | $ | 3,576 | $ | 3,820 | ||||||||||||||||||||||
_______________________________________
(1) Other operating income represents income recognized for funds received under the Provider Relief Fund of the CARES Act and other governmental grants.
(2) Includes living units categorized as in service. As a result, the number of living units may vary from period to period for reasons other than the acquisition or disposition of senior living communities.
(3) RevPAR is defined by FVE as resident fee revenues for the corresponding portfolio for the period divided by the average number of available units for the period, divided by the number of months in the period. Data for the three months ended June 30, 2020, December 31, 2020 and March 31, 2021 exclude income received by communities under the CARES Act and other governmental grants.
(4) Managed communities, other than FVE's management fees, represents financial data of communities FVE manages for the account of DHC and does not represent financial results of FVE. Managed communities' data is included to provide supplemental information regarding the operating results and financial condition of the communities from which FVE earns management fees.
(5) Includes one active adult community with 167 units.
(6) Includes 2,055 skilled nursing units in communities where assisted living and independent living services are the predominant services provided.
(7) Includes 53 assisted living and independent living units in communities where skilled nursing services are the predominant services provided.
12
Supplemental Information
Five Star Senior Living Inc.
Comparable Communities Senior Living Segment Data
(dollars in thousands, except per unit amounts)
(unaudited)
| Three Months Ended | ||||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||||||||||||||||
Owned and Leased Communities (1): | ||||||||||||||||||||||||||||||||
| Number of communities (end of period) | 24 | 24 | 24 | 24 | 24 | |||||||||||||||||||||||||||
Number of living units (end of period) (2) | 2,302 | 2,302 | 2,312 | 2,312 | 2,312 | |||||||||||||||||||||||||||
| Spot Occupancy | 68.2 | % | 69.7 | % | 73.0 | % | 76.3 | % | 80.3 | % | ||||||||||||||||||||||
Average Occupancy | 68.3 | % | 71.5 | % | 74.7 | % | 78.3 | % | 81.3 | % | ||||||||||||||||||||||
RevPAR (3) | $ | 2,479 | $ | 2,596 | $ | 2,665 | $ | 2,813 | $ | 2,930 | ||||||||||||||||||||||
Managed Communities (1)(4): | ||||||||||||||||||||||||||||||||
| Number of communities (end of period) | 120 | 120 | 120 | 120 | 120 | |||||||||||||||||||||||||||
Number of living units (end of period) (2) | 17,906 | 17,910 | 17,929 | 17,929 | 17,932 | |||||||||||||||||||||||||||
| Spot Occupancy | 73.2 | % | 74.2 | % | 77.0 | % | 81.1 | % | 85.6 | % | ||||||||||||||||||||||
| Average Occupancy | 72.7 | % | 75.6 | % | 78.5 | % | 82.6 | % | 86.0 | % | ||||||||||||||||||||||
RevPAR (3) | $ | 2,946 | $ | 3,054 | $ | 3,164 | $ | 3,301 | $ | 3,471 | ||||||||||||||||||||||
_______________________________________
(1) Includes data for senior living communities that FVE has continuously owned, continuously leased or continuously managed since January 1, 2020. Per the Strategic Plan the summary of operations for comparable communities also excludes (i) 108 senior living communities managed on behalf of DHC, with approximately 7,500 living units, that are expected to be transitioned to new operators and (ii) approximately 1,500 skilled nursing facility units, that are expected to be closed and repositioned in 27 CCRCs FVE will continue to manage for DHC. In addition, the landlord of the four leased communities included in the 24 owned and leased senior living communities data above is currently marketing these properties for sale and FVE is unlikely to operate these four communities long-term.
(2) Includes living units categorized as in service. As a result, the number of living units may vary from period to period for reasons other than the acquisition or sale of senior living communities.
(3) RevPAR is defined by FVE as resident fee revenues for the corresponding portfolio for the period divided by the average number of available units for the period, divided by the number of months in the period. Data for the three months ended June 30, 2020, December 31, 2020 and March 31, 2021 exclude income received by communities under the CARES Act and other governmental grants.
(4) Senior living segment data for comparable managed communities represents financial data of communities FVE manages for the account of DHC and does not represent financial results of FVE. Managed communities' data is included to provide supplemental information regarding the operating results and financial condition of the communities from which FVE earns management fees.
13
Supplemental Information
Five Star Senior Living Inc.
Rehabilitation and Wellness Services Segment Data
(dollars in thousands)
(unaudited)
| Three Months Ended | ||||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||||||||||||||||
Rehabilitation and Wellness Services (1): | ||||||||||||||||||||||||||||||||
| Revenues | $ | 19,553 | $ | 20,256 | $ | 21,124 | $ | 19,268 | $ | 21,384 | ||||||||||||||||||||||
Other operating income (2) | 19 | 221 | — | 1,499 | — | |||||||||||||||||||||||||||
| Operating expenses | 16,338 | 16,613 | 16,833 | 16,259 | 17,616 | |||||||||||||||||||||||||||
| Operating income | 3,234 | 3,864 | 4,291 | 4,508 | 3,768 | |||||||||||||||||||||||||||
| Operating margin | 16.5 | % | 18.9 | % | 20.3 | % | 21.7 | % | 17.6 | % | ||||||||||||||||||||||
| Number of inpatient clinics (end of period) | 37 | 37 | 40 | 40 | 41 | |||||||||||||||||||||||||||
| Number of outpatient clinics (end of period) | 215 | 207 | 209 | 206 | 203 | |||||||||||||||||||||||||||
_______________________________________
(1) Includes Ageility clinics and home health operations.
(2) Other operating income represents income recognized for funds received under the Provider Relief Fund of the CARES Act and other governmental grants.
14
Supplemental Information
Five Star Senior Living Inc.
Comparable Rehabilitation and Wellness Services Segment Data
(dollars in thousands)
(unaudited)
| Three Months Ended | ||||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||||||||||||||||
Rehabilitation and Wellness Services (1): | ||||||||||||||||||||||||||||||||
| Revenues | $ | 12,813 | $ | 13,181 | $ | 13,891 | $ | 12,852 | $ | 12,788 | ||||||||||||||||||||||
Other operating income (2) | 19 | 221 | — | 858 | — | |||||||||||||||||||||||||||
| Operating expenses | 11,183 | 11,717 | 11,685 | 11,470 | 11,747 | |||||||||||||||||||||||||||
| Operating income | 1,649 | 1,685 | 2,206 | 2,240 | 1,041 | |||||||||||||||||||||||||||
| Operating margin | 12.9 | % | 12.6 | % | 15.9 | % | 16.3 | % | 8.1 | % | ||||||||||||||||||||||
| Number of inpatient clinics (end of period) | — | — | — | — | — | |||||||||||||||||||||||||||
| Number of outpatient clinics (end of period) | 184 | 184 | 184 | 184 | 184 | |||||||||||||||||||||||||||
_______________________________________
(1) Includes Ageility clinics and home health operations. Per the Strategic Plan the summary of operations for comparable Ageility clinics excludes 37 Ageility inpatient rehabilitation clinics that are expected to be closed.
(2) Other operating income represents income recognized for funds received under the Provider Relief Fund of the CARES Act and other governmental grants.
15
Supplemental Information
Five Star Senior Living Inc.
Owned Senior Living Communities as of and for the Three Months Ended March 31, 2021
(dollars in thousands)
(unaudited)
| No. | Community Name | State | Property Type (1) | Living Units | Senior Living Revenues (4) | Gross Carrying Value | Net Carrying Value | Date Acquired | Year Built or Most Recent Renovation | |||||||||||||||||||||||||||||||||||||||||||||||
| 1 | Morningside of Decatur (2) | Alabama | AL | 49 | $ | 290 | $ | 3,786 | $ | 2,238 | 11/19/2004 | 1999 | ||||||||||||||||||||||||||||||||||||||||||||
| 2 | Morningside of Auburn | Alabama | AL | 42 | 316 | 2,360 | 1,549 | 11/19/2004 | 1997 | |||||||||||||||||||||||||||||||||||||||||||||||
| 3 | The Palms of Fort Myers (2) | Florida | IL | 218 | 1,538 | 31,414 | 15,018 | 4/1/2002 | 1988 | |||||||||||||||||||||||||||||||||||||||||||||||
| 4 | Five Star Residences of Banta Pointe (3) | Indiana | AL | 121 | 673 | 18,651 | 12,852 | 9/29/2011 | 2006 | |||||||||||||||||||||||||||||||||||||||||||||||
| 5 | Five Star Residences of Fort Wayne (2) | Indiana | AL | 154 | 1,087 | 25,968 | 17,685 | 9/29/2011 | 1998 | |||||||||||||||||||||||||||||||||||||||||||||||
| 6 | Five Star Residences of Clearwater | Indiana | AL | 88 | 377 | 9,797 | 5,451 | 6/1/2011 | 1999 | |||||||||||||||||||||||||||||||||||||||||||||||
| 7 | Five Star Residences of Lafayette (2) | Indiana | AL | 109 | 516 | 15,992 | 10,829 | 6/1/2011 | 2000 | |||||||||||||||||||||||||||||||||||||||||||||||
| 8 | Five Star Residences of Noblesville (2) | Indiana | AL | 151 | 1,092 | 25,400 | 17,620 | 7/1/2011 | 2005 | |||||||||||||||||||||||||||||||||||||||||||||||
| 9 | The Villa at Riverwood (2) | Missouri | IL | 111 | 611 | 6,986 | 3,192 | 4/1/2002 | 1986 | |||||||||||||||||||||||||||||||||||||||||||||||
| 10 | Voorhees Senior Living (2) | New Jersey | AL | 104 | 1,043 | 10,448 | 6,144 | 7/1/2008 | 1999 | |||||||||||||||||||||||||||||||||||||||||||||||
| 11 | Washington Township Senior Living (2) | New Jersey | AL | 93 | 936 | 10,393 | 6,140 | 7/1/2008 | 1998 | |||||||||||||||||||||||||||||||||||||||||||||||
| 12 | Carriage House Senior Living | North Carolina | AL | 98 | 857 | 8,445 | 5,263 | 12/1/2008 | 1997 | |||||||||||||||||||||||||||||||||||||||||||||||
| 13 | Forest Heights Senior Living | North Carolina | AL | 111 | 768 | 13,749 | 8,899 | 12/1/2008 | 1998 | |||||||||||||||||||||||||||||||||||||||||||||||
| 14 | Fox Hollow Senior Living (2) | North Carolina | AL | 77 | 887 | 11,116 | 7,193 | 7/1/2000 | 1999 | |||||||||||||||||||||||||||||||||||||||||||||||
| 15 | Legacy Heights Senior Living (2) | North Carolina | AL | 116 | 1,200 | 12,699 | 7,987 | 12/1/2008 | 1997 | |||||||||||||||||||||||||||||||||||||||||||||||
| 16 | Morningside at Irving Park | North Carolina | AL | 91 | 710 | 6,983 | 3,803 | 11/19/2004 | 1997 | |||||||||||||||||||||||||||||||||||||||||||||||
| 17 | The Devon Senior Living | Pennsylvania | AL | 84 | 603 | 6,915 | 3,772 | 7/1/2008 | 1985 | |||||||||||||||||||||||||||||||||||||||||||||||
| 18 | The Legacy of Anderson | South Carolina | IL | 101 | 542 | 1,429 | 470 | 12/1/2008 | 2003 | |||||||||||||||||||||||||||||||||||||||||||||||
| 19 | Morningside of Springfield (2) | Tennessee | AL | 54 | 407 | 3,719 | 1,708 | 11/19/2004 | 1984 | |||||||||||||||||||||||||||||||||||||||||||||||
| 20 | Huntington Place | Wisconsin | AL | 127 | 790 | 17,591 | 11,098 | 7/15/2010 | 1999 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | 2,099 | $ | 15,243 | $ | 243,841 | $ | 148,911 | |||||||||||||||||||||||||||||||||||||||||||||||||
_______________________________________
(1) AL is primarily an assisted living community and IL is primarily an independent living community.
(2) Encumbered property under FVE's $65,000 revolving credit facility.
(3) Encumbered property under FVE's $7,076 mortgage note.
(4) Excludes funds received under the Provider Relief Fund of the CARES Act recognized as other operating income.
16
Warning Concerning Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever Five Star Senior Living Inc. uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, "will", “may” and negatives or derivatives of these or similar expressions, FVE is making forward-looking statements. These forward-looking statements are based upon FVE’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by FVE’s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond FVE's control. For example:
•Ms. Potter states that the Strategic Plan is designed to improve FVE’s senior living operations, to focus on areas of FVE’s operational strengths and to diversify FVE’s revenue targets. This press release also includes statements regarding the steps expected to be taken in connection with the Strategic plan and the anticipated timing, costs, savings and benefits related to such steps, as well as FVE's expectations for the operation and performance of the business following implementation of the Strategic Plan. FVE may not be able to implement each of its strategic initiatives in a timely manner or at all, the costs of such initiatives may be more than it expects, it may not realize the benefits it anticipates from the Strategic Plan, and it may not be able to achieve its objectives following implementation of such Strategic Plan, including partially offsetting the revenue loss from the communities it intends to transition with expense reductions to right-size operations, on the anticipated timeline or at all.
•This press release states that FVE intends to amend its management arrangements with DHC to transition certain senior living communities that FVE currently manages for DHC to new operators. Although FVE’s Board of Directors and DHC’s Board of Trustees, including the Independent Directors and Independent Trustees, have agreed in principal to the terms of the changes to the management arrangements described in this press release, definitive documentation related to these changes has not been entered into; therefore, the timing and terms thereof may be delayed or may change.
•Ms. Potter states that FVE is encouraged by positive momentum with move-ins and occupancy trends in March and April. However, these trends may not continue and occupancy could decline due to a variety of factors, including if FVE is again required, or determines, to place holds on admission of new residents at certain of its communities due to the COVID-19 pandemic.
•Ms. Potter's statement that FVE's financial position remains strong with $109.5 million of unrestricted cash with no borrowings outstanding on its revolving credit facility may imply that FVE will continue to have adequate liquidity. However, FVE's business remains subject to various risks, some of which are beyond FVE's control, including the disruption of the COVID-19 pandemic and economic downturn. In addition, FVE's ability to borrow under its revolving credit facility is subject to it satisfying certain conditions and limited to the amount of qualified collateral; the maximum borrowing capacity was $14.9 million as of March 31, 2021 and may be lower in amount or not available in the future.
The information contained in FVE’s filings with the Securities and Exchange Commission, or SEC, including under “Risk Factors” in FVE’s periodic reports, or incorporated therein, identifies other important factors that could cause FVE’s actual results to differ materially from those stated in or implied by FVE’s forward-looking statements. FVE’s filings with the SEC are available on the SEC’s website at www.sec.gov.
You should not place undue reliance upon forward-looking statements.
Except as required by law, FVE does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
| Contact: | |||||
| Olivia Snyder, Manager, Investor Relations | |||||
(617) 796-8245 | |||||
17