Five Star Quality Care, Inc. (NYSE Amex: FVE) last week announced its financial results for the quarter and six months ended June 30, 2009 that showed an increase in revenues by 9.9% to 297 million from 270 million for the same period last year. The company’s net income was $8.6 million compared to $3.5 million in the same period during 2008. The net income includes a $6.1 million gain due to early extinguishment of debt; a $239,000 unrealized gain on the company’s UBS put right related to auction rate securities; and a $195,000 unrealized gain on Five Star’s holdings of auction rate securities. Net income from continuing operations for the second quarter of 2008 included a $1.1 million unrealized loss, or $0.03 per basic and diluted share, respectively, on the company’s holdings of auction rate securities. During April and May 2009, the company purchased and retired an additional $12.8 million par value of outstanding Convertible Senior Notes for $6.3 million, plus accrued interest and financed this purchase principally from cash generated by operations and borrowings. As a result of this transaction, Five Star recorded a $6.1 million gain, net of related unamortized costs, on early extinguishment of debt. Other second quarter 2009 highlights included:
- Senior living occupancy for the second quarter of 2009 was 86.0% compared with 88.6% for the same period last year.
- Senior living average daily rate for the second quarter of 2009 increased by 0.5% to $146.42 from $145.73 in the same period last year.
- The percentage of senior living revenue derived from private and other resources for the second quarter of 2009 increased to 68.8% from 68.1% for the same period last year.
- For those senior living communities that we have operated continuously since April 1, 2008 (comparable communities), occupancy for the second quarter of 2009 was 86.9% compared with 88.6% for the same period last year.
- The average daily rate at comparable communities for the second quarter of 2009 increased by 3.2%, to $150.43, from $145.73 in the same period last year.
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