Emeritus (NYSE:ESC) 3rd Quarter Results Worse Than Expectations

Emeritus, a publicly traded assisted living facility operator, posted a $23.1 Million dollar loss in the 3rd quarter as revenues slightly increased but costs to run its operations increased. The $4.2 million increase in operating expenses was primarily the result of an increase of $2.0 million in utilities costs and $1.9 million in labor expenses. Labor was also impacted by one-time hurricane costs and start-up costs related to new developments and a community acquisition. These increases were also coupled with other insurance savings relating to the company’s labor pool. The good news is that the quality and occupancy rates have been stable and relatively increasing but the company needs to continue to focus on cost control going forward.

For its earnings press release, click here and for the full transcript from the Emeritus conference call, click here.