Five Star Quality Care, Inc. (NYSE Alternext US: FVE) recently announced its financial results for the quarter and year ended December 31, 2008 showing a net loss for the fourth quarter of 2008 was $7.4 million compared to net income of $6.7 million for the same period last year. The company earned $.01 per share in 2008 versus to $0.82 per share in 2007. During January 2009, Five Star repurchased and retired $46.5 million, or 37%, of its Convertible Senior Notes at an average cost of 43% of par value totaling $20 million, including transaction costs, but excluding accrued interest. The repurchase was financed by drawing on the company’s secured credit facilities and it expects to record a $25.1 million gain, net of un-amortized deferred financing costs, on the early retirement of this debt in the first quarter of 2009.
Fourth Quarter 2008 Operating Highlights:
- Senior living occupancy for the fourth quarter of 2008 was 87.6% compared with 90.3% for the same period last year.
- Senior living average daily rate for the fourth quarter of 2008 increased by 2.0% to $143.10 from $140.23 in the same period last year.
- The percentage of senior living revenue derived from residents’ private resources for the fourth quarter of 2008 increased to 69.4% from 65.6% for the same period last year.
- Wages and benefits as a percentage of senior living revenues were 50.4% and 49.8% for the fourth quarters of 2008 and 2007, respectively.
- For those senior living communities that the company has operated continuously since October 1, 2007 (comparable communities), occupancy for the fourth quarter of 2008 was 88.0% compared with 90.3% for the same period last year.
- The average daily rate at comparable communities for the fourth quarter of 2008 increased by 4.0%, to $145.78, from $140.23 in the same period last year.
- In the fourth quarter of 2008, the company acquired seven senior living communities with 628 units and leased one senior living community with 252 units. Six of these communities provide assisted living, one is an independent living community and one is a continuing care retirement community.
For the complete earnings release, click here.