Emeritus Announces 3rd Quarter Losses Despite Increases In Revenue And Occupancy Rates

Emeritus Corporation (NYSE: ESC)(“the Company), a national provider of assisted living and Alzheimer’s and related dementia care services to senior citizens, announced its third quarter 2009 results that showed a net loss of $16.0 million for the third quarter of 2009 improved $7.1 million from a net loss of $23.1 million in the prior year quarter. The Company’s total revenue for the third quarter of 2009 increased 16.7% to $222.7 million compared to $190.9 million in the prior year quarter and the average revenue per occupied unit on a total consolidated basis was approximately $3,673 for the third quarter of 2009, compared to $3,459 in the prior year quarter. Emeritus’s total occupancy increased to 87.2% from 86.6% in the prior year third quarter and the month end occupancy on September 30, 2009 was 88.8%, compared to 88.2% on June 30, 2009.  Some of the other highlights from the third quarter 2009 include:

  • Same store occupancy increased 110 basis points to 88.2% from the third quarter 2008, and increased 50 basis points sequentially;
  • Total occupancy increased 60 basis points from the third quarter of 2008, and increased 60 basis points sequentially;
  • Average monthly revenue per occupied unit increased 6.2% to $3,673 from the prior year quarter, and increased sequentially from $3,650;
  • Community operating income improved 10.4% to $74.6 million from the third quarter 2008.

"Our strategy of driving occupancy and gaining market share continued into the third quarter. Through ongoing occupancy gains we will be better positioned to drive rate improvement as demand increases," commented Mr. Granger Cobb, President and Co-CEO of Emeritus. "Furthermore, the strength of our business fundamentals supports our efforts to pursue opportunistic acquisitions."

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