Emeritus Earnings Down On Higher Costs From Acquistions

Emeritus Corporation (NYSE: ESC) recently announced its first quarter 2011 results that showed a 28% rise in quarterly revenues compared to Q1 2010 but reported a net loss of $22.6 million for the quarter. The company’s same community average monthly revenue per occupied unit improved by 2.1% to $3,796 and its same community average occupancy increased 10 basis points to 87.6%.  Emeritus’s cash flow from operations increased to $14.6 million for Q1 2011.

During the quarter, Emeritus completed eight senior living community acquisitions and saw increased expenses associated with the acquisition  and integration of those communities. The company’s same store occupancy costs saw increases of 4.6% due to higher salaries and wages.

Rob Bateman, Executive Vice President and Chief Financial Officer, stated, “Our cash flow measures continue to show strong comparisons to the prior year, supported by our accretive acquisitions. Occupancy and rate have shown modest improvements, despite overall economic factors, reaffirming our operating model that is focused primarily on need-based assisted living.”

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Emeritus 2011 Q1 8-K