Attached files
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| 8-K - EARNINGS RELEASE Q3 2009 8K - EMERITUS CORP\WA\ | earningsreleaseq320098k.htm |
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NEWS
RELEASE
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Contact:
Investor
Relations
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(206)
298-2909
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EMERITUS
ANNOUNCES OPERATING RESULTS FOR
THIRD
QUARTER 2009
SEATTLE, WA,
(November 9, 2009) -
Emeritus Corporation (NYSE: ESC), a national provider of assisted living
and Alzheimer’s and related dementia care services to senior citizens, today
announced its third quarter 2009 results.
Third
Quarter 2009 Operating Highlights
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·
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Same
store occupancy increased 110 basis points to 88.2% from the third quarter
2008, and increased 50 basis points
sequentially;
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·
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Total
occupancy increased 60 basis points from the third quarter of 2008, and
increased 60 basis points
sequentially;
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·
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Average
monthly revenue per occupied unit increased 6.2% to $3,673 from the prior
year quarter, and increased sequentially from
$3,650;
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·
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Community
operating income improved 10.4% to $74.6 million from the third quarter
2008.
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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. 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. Total occupancy increased to 87.2% from 86.6% in the prior
year third quarter. Month end occupancy on September 30, 2009 was
88.8%, compared to 88.2% on June 30, 2009.
Same
Store total revenue for the third quarter of 2009 increased 3.4% to $192.1
million from $185.8 million in the prior year third quarter. Same
Store average revenue per occupied unit increased approximately 2.1% to $3,543
from $3,469 in the third quarter of 2008. The third quarter 2009 Same Store
average occupancy increased 110 basis points to 88.2% compared to 87.1% in the
prior year third quarter and 50 basis points from 87.7% in the second quarter of
2009.
“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.”
Community
operating income (community revenue less community operating expenses) increased
10.4% to $74.6 million for the third quarter of 2009 from $67.5 million in the
prior year third quarter. Community operating income includes an
increase in workers’ compensation expenses of $1.4 million in the current
quarter and a decrease of $2.1 million in workers’ compensation expenses in the
prior year quarter (a swing of $3.5 million between periods), both based on
actuarial estimates of ultimate losses. In addition, current
quarter health insurance costs increased $2.2 million over the prior year
quarter primarily from an increase in employee enrollment. The
operating margin decreased by 190 basis points to 33.7% for the third quarter of
2009 compared to 35.6% in the prior year third quarter.
Excluding
the workers’ compensation adjustments noted above, the operating margin percent
would have been relatively flat between the periods. The workers’
compensation increase of $1.4 million in the current quarter includes changes in
estimates related to both prior year and prior quarters of 2009 totaling $1.2
million. Therefore, we expect the ongoing workers’ compensation
impact to be less in future quarters.
The
Company’s 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 current quarter net loss includes a non-cash impairment
loss of $1.9 million in addition to the workers’ compensation and health
insurance costs discussed above. These expense items resulted in a
negative impact of $7.6 million when comparing the net loss between
periods.
Including
the previously discussed expense increases, the weighted average loss per common
share outstanding was $(0.41) and $(0.59) for the three months ended September
30, 2009 and 2008, respectively, and cash from facility operations (CFFO) per
weighted average common share outstanding was $0.18 and $0.19 for the three
months ended September 30, 2009 and 2008, respectively. CFFO per
weighted average common shares outstanding was $0.81 and $0.55 for the nine
months ended September 30, 2009 and 2008, respectively.
The total
consolidated operating portfolio, excluding discontinued operations, consists of
265 communities with approximately 23,036 operating units as of September 30,
2009. The Same Store portfolio consists of 241 of the 265
consolidated operating communities.
Balance
Sheet
As of
September 30, 2009, the Company had approximately $52.1 million of cash and cash
equivalents, and had no outstanding borrowings under its $25.0 million line of
credit. On September 30, 2009, total assets were $2.1 billion,
including $1.7 billion of net investments in properties, total debt was $1.6
billion, including capital lease obligations, and shareholders’ equity was
$332.5 million.
The
current portion of long-term debt of $49.9 million as of September 30, 2009,
includes $33.7 million of debt that matures in 2012 and relates to five
communities held for sale. This debt is classified as current because
the related assets are expected to be sold and the debt paid off from the
proceeds of the sale within the next year. The remaining $16.2
million of current portion of debt relates to $10.7 million of routine debt
amortization over the next 12 months, and one mortgage of $5.5 million due in
July 2010, which we expect to refinance.
Conference
Call:
The
Company will host a conference call on Monday, November 9, 2009, at 5:00 P.M.
Eastern Time to discuss its financial results for the third quarter ended
September 30, 2009. Hosting the call will be Mr. Daniel Baty,
Chairman and Co-Chief Executive Officer, Mr. Granger Cobb, President and
Co-Chief Executive Officer, and Mr. Raymond Brandstrom, Chief Financial
Officer.
The
conference call will be webcast live over the internet from the Company’s web
site at www.emeritus.com
under the “investors” section. The conference call can also be
accessed by dialing (877) 407-9039, or for international participants (201)
689-8470. A replay of the conference call will be available after
8:00 P.M. Eastern Time on Monday, November 9, 2009, until midnight Eastern Time
on Monday, November 16, 2009, and can be accessed by dialing (877) 660-6853, or
for international participants (201) 612-7415 along with the conference ID
335960.
Non-GAAP
Financial Measures
Adjusted
EBITDA/EBITDAR and CFFO are financial measures of operating performance that are
not calculated in accordance with U.S. generally accepted accounting principles
(GAAP). We believe these non-GAAP measures are useful in identifying
trends in our day-to-day performance because they exclude items that are of
little or no significance to operations and provide indicators to management of
progress in achieving optimal operating performance. In addition,
these measures are used by many research analysts and investors to evaluate the
performance and the value of companies in our industry. We strongly
urge you to review the reconciliation of net loss to Adjusted EBITDA/EBITDAR and
CFFO provided below, along with our consolidated balance sheets, statements of
operations, and cash flows. We define Adjusted EBITDA/EBITDAR and
CFFO and provide other information about these non-GAAP measures in our annual
report on Form 10-K.
The table
below shows the reconciliation of net loss to Adjusted EBITDAR for the three and
nine month periods ended September 30, 2009 and 2008 (in
thousands):
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Three
Months Ended
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Nine
Months Ended
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September
30,
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September
30,
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|||||||||||||||
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2009
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2008
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2009
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2008
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Net
loss
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$ | (16,221 | ) | $ | (23,076 | ) | $ | (38,620 | ) | $ | (74,278 | ) | ||||
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Provision
for income taxes
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360 | 270 | 900 | 750 | ||||||||||||
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Equity
losses (earnings) in unconsolidated joint ventures
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76 | 33 | (1,108 | ) | 890 | |||||||||||
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Depreciation
and amortization
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18,643 | 28,925 | 58,031 | 88,742 | ||||||||||||
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Amortization
of deferred gains
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(312 | ) | (130 | ) | (460 | ) | (1,134 | ) | ||||||||
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Non-cash
stock option compensation expenses
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1,187 | 968 | 3,250 | 3,786 | ||||||||||||
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Impairment
of long-lived assets
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1,857 | - | 1,857 | - | ||||||||||||
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Debt
refinancing fees
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- | - | - | 1,090 | ||||||||||||
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Interest
expense
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26,170 | 24,874 | 77,649 | 68,030 | ||||||||||||
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Straight-line
rent expense
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4,847 | 2,220 | 14,796 | 7,012 | ||||||||||||
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Above/below
market rent amortization
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2,457 | 2,524 | 7,430 | 7,572 | ||||||||||||
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Development
and transaction costs
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81 | 504 | 545 | 832 | ||||||||||||
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Deferred
revenues
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460 | 432 | 475 | 2,688 | ||||||||||||
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Change
in fair value of interest rate swaps
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221 | 119 | (621 | ) | (16 | ) | ||||||||||
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Interest
income
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(575 | ) | (480 | ) | (902 | ) | (1,913 | ) | ||||||||
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Discontinued
operations
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122 | 616 | 849 | 6,349 | ||||||||||||
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Professional
and workers' compensation liability
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818 | (624 | ) | (908 | ) | (2,478 | ) | |||||||||
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Adjusted
EBITDA
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40,191 | 37,175 | 123,163 | 107,922 | ||||||||||||
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Facility
lease expense
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22,056 | 17,595 | 65,803 | 52,384 | ||||||||||||
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Adjusted
EBITDAR
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$ | 62,247 | $ | 54,770 | $ | 188,966 | $ | 160,306 | ||||||||
The
following table shows CFFO for the three and nine month periods ended September
30, 2009 and 2008 (in thousands):
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Three
Months Ended
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Nine
Months Ended
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September
30,
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September
30,
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|||||||||||||||
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2009
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2008
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2009
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2008
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Net
cash provided by operating activities
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$ | 21,761 | $ | 17,195 | $ | 55,110 | $ | 56,457 | ||||||||
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Adjust
for changes in operating assets and liabilities
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(7,182 | ) | (3,184 | ) | (3,772 | ) | (11,860 | ) | ||||||||
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Recurring
capital expenditures, net
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(5,793 | ) | (4,080 | ) | (14,039 | ) | (11,544 | ) | ||||||||
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Repayment
of capital lease and financing obligations
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(2,495 | ) | (2,365 | ) | (7,003 | ) | (11,743 | ) | ||||||||
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Distributions
from unconsolidated joint ventures, net
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571 | - | 1,589 | - | ||||||||||||
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Cash
From Facility Operations
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$ | 6,862 | $ | 7,566 | $ | 31,885 | $ | 21,310 | ||||||||
CFFO per
weighted average common shares outstanding was $0.18 and $0.19 for the three
months ended September 30, 2009 and 2008, respectively. CFFO per
weighted average common shares outstanding was $0.81 and $0.55 for the nine
months ended September 30, 2009 and 2008, respectively.
For a
more detailed understanding of Emeritus, please refer to the Company’s annual
report on Form 10-K filed with the Securities and Exchange Commission on March
16, 2009, or visit the Company’s Internet site at www.emeritus.com to
obtain a copy.
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ABOUT
THE COMPANY
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Emeritus
Corporation is a national provider of assisted living and Alzheimer’s and
related dementia care services to seniors. Emeritus is one of the
largest and most experienced operators of freestanding assisted living
communities located throughout the United States. These communities
provide a residential housing alternative for senior citizens who need
assistance with the activities of daily living, with an emphasis on personal
care services, which provides support to the residents in the aging
process. Emeritus currently operates 309 communities in 36 states
representing capacity for approximately 27,200 units and approximately 32,400
residents. Our common stock is traded on the New York Stock Exchange
under the symbol ESC, and our home page can be found on the Internet at
www.emeritus.com.
“Safe
Harbor” Statement under the Private Securities Litigation Reform Act of
1995: A number of the matters and subject areas discussed in this
report that are not historical or current facts deal with potential future
circumstances, operations, and prospects. The discussion of such
matters and subject areas is qualified by the inherent risks and uncertainties
surrounding future expectations generally, and also may materially differ from
our actual future experience as a result of such factors as: the effects of
competition and economic conditions on the occupancy levels in our communities;
our ability under current market conditions to maintain and increase our
resident charges in accordance with our rate enhancement programs without
adversely affecting occupancy levels; increases in interest costs as a result of
re-financings; our ability to control community operation expenses, including
insurance and utility costs, without adversely affecting the level of occupancy
and the level of resident charges; our ability to generate cash flow sufficient
to service our debt and other fixed payment requirements; our ability to find
sources of financing and capital on satisfactory terms to meet our cash
requirements to the extent that they are not met by operations, and
uncertainties related to professional liability claims. We have
attempted to identify, in context, certain of the factors that we currently
believe may cause actual future experience and results to differ from our
current expectations regarding the relevant matter or subject
area. These and other risks and uncertainties are detailed in our
reports filed with the Securities and Exchange Commission, including “Item 1A.
Risk Factors” in our Annual Report on Form 10-K for the year ended December 31,
2008.
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EMERITUS
CORPORATION
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CONDENSED
CONSOLIDATED BALANCE SHEETS
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(unaudited)
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(In
thousands, except share data)
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ASSETS
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September
30,
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December
31,
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Current
Assets:
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2009
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2008
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||||||
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Cash
and cash equivalents
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$ | 52,090 | $ | 27,254 | ||||
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Short-term
investments
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2,054 | 1,802 | ||||||
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Trade
accounts receivable, net of allowance of $951 and $549
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9,970 | 11,596 | ||||||
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Other
receivables
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5,669 | 5,556 | ||||||
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Tax,
insurance, and maintenance escrows
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24,466 | 21,762 | ||||||
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Prepaid
workers' compensation
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18,860 | 19,288 | ||||||
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Other
prepaid expenses and current assets
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22,980 | 23,720 | ||||||
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Property
held for sale
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37,354 | 13,712 | ||||||
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Total
current assets
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173,443 | 124,690 | ||||||
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Long-term
investments
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4,946 | 4,192 | ||||||
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Property
and equipment, net of accumulated depreciation of $200,231 and
$144,441
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1,676,947 | 1,725,558 | ||||||
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Restricted
deposits
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13,071 | 12,337 | ||||||
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Lease
acquisition costs, net of accumulated amortization of $1,781
and $1,877
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3,742 | 3,867 | ||||||
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Goodwill
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74,197 | 73,704 | ||||||
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Other
intangible assets, net of accumulated amortization of $25,814 and
$76,368
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118,491 | 131,994 | ||||||
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Other
assets, net
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23,364 | 18,851 | ||||||
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Total
assets
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$ | 2,088,201 | $ | 2,095,193 | ||||
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LIABILITIES
AND SHAREHOLDERS' EQUITY
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Current
Liabilities:
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||||||||
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Current
portion of long-term debt
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$ | 49,941 | $ | 18,267 | ||||
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Current
portion of capital lease and financing obligations
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10,838 | 9,172 | ||||||
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Trade
accounts payable
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5,650 | 7,474 | ||||||
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Accrued
employee compensation and benefits
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39,266 | 32,778 | ||||||
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Accrued
interest
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7,606 | 7,012 | ||||||
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Accrued
real estate taxes
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13,129 | 9,791 | ||||||
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Accrued
professional and general liability
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9,599 | 10,842 | ||||||
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Accrued
income taxes
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596 | 3,715 | ||||||
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Other
accrued expenses
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12,822 | 12,284 | ||||||
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Deferred
revenue
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12,938 | 12,463 | ||||||
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Unearned
rental income
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16,590 | 16,101 | ||||||
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Total
current liabilities
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178,975 | 139,899 | ||||||
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Long-term
debt obligations, less current portion
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1,335,086 | 1,355,149 | ||||||
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Capital
lease and financing obligations, less current portion
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168,194 | 180,684 | ||||||
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Deferred
gain on sale of communities
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7,420 | 2,667 | ||||||
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Deferred
rent
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28,818 | 14,022 | ||||||
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Other
long-term liabilities
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37,186 | 36,744 | ||||||
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Total
liabilities
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1,755,679 | 1,729,165 | ||||||
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Commitments
and contingencies
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||||||||
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Shareholders'
Equity and Non-controlling Interest:
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||||||||
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Preferred
stock, $.0001 par value. Authorized 20,000,000 shares, none
issued
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– | – | ||||||
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Common
stock, $.0001 par value. Authorized 100,000,000 shares; issued and
outstanding
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||||||||
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39,244,363
and 39,091,648 shares at September 30, 2009, and December 31, 2008,
respectively
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4 | 4 | ||||||
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Additional
paid-in capital
|
723,782 | 719,903 | ||||||
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Accumulated
other comprehensive income
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1,235 | – | ||||||
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Accumulated
deficit
|
(398,451 | ) | (360,506 | ) | ||||
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Total
Emeritus Corporation shareholders' equity
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326,570 | 359,401 | ||||||
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Noncontrolling
interest–related party
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5,952 | 6,627 | ||||||
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Total
shareholders' equity and non-controlling interest
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332,522 | 366,028 | ||||||
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Total
liabilities and shareholders' equity and non-controlling
interest
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$ | 2,088,201 | $ | 2,095,193 | ||||
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EMERITUS
CORPORATION
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||||||||||||||||
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CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
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||||||||||||||||
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(unaudited)
|
||||||||||||||||
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(In
thousands, except per share data)
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||||||||||||||||
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Three
Months Ended
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Nine
Months Ended
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September
30,
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September
30,
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|||||||||||||||
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2009
|
2008
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2009
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2008
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Revenues:
|
||||||||||||||||
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Community
revenue
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$ | 221,262 | $ | 189,638 | $ | 655,411 | $ | 555,925 | ||||||||
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Management
fees
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1,439 | 1,266 | 4,359 | 3,648 | ||||||||||||
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Total
operating revenues
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222,701 | 190,904 | 659,770 | 559,573 | ||||||||||||
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Expenses:
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||||||||||||||||
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Community
operations (exclusive of depreciation and amortization
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||||||||||||||||
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and
facility lease expense shown separately below)
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146,700 | 122,119 | 426,832 | 359,504 | ||||||||||||
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General
and administrative
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16,429 | 14,725 | 47,666 | 44,066 | ||||||||||||
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Impairment
loss on long-lived assets
|
1,857 | - | 1,857 | - | ||||||||||||
|
Depreciation
and amortization
|
18,643 | 28,925 | 58,031 | 88,742 | ||||||||||||
|
Facility
lease expense
|
29,360 | 22,339 | 88,029 | 66,968 | ||||||||||||
|
Total
operating expenses
|
212,989 | 188,108 | 622,415 | 559,280 | ||||||||||||
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Operating
income from continuing operations
|
9,712 | 2,796 | 37,355 | 293 | ||||||||||||
|
Other
income (expense):
|
||||||||||||||||
|
Interest
income
|
575 | 480 | 902 | 1,913 | ||||||||||||
|
Interest
expense
|
(26,170 | ) | (24,874 | ) | (77,649 | ) | (68,030 | ) | ||||||||
|
Change
in fair value of interest rate swaps
|
(221 | ) | (119 | ) | 621 | 16 | ||||||||||
|
Equity
earnings (losses) for unconsolidated joint ventures
|
(76 | ) | (33 | ) | 1,108 | (890 | ) | |||||||||
|
Other,
net
|
441 | (440 | ) | 792 | (481 | ) | ||||||||||
|
Net
other expense
|
(25,451 | ) | (24,986 | ) | (74,226 | ) | (67,472 | ) | ||||||||
|
Loss
from continuing operations before income taxes
|
(15,739 | ) | (22,190 | ) | (36,871 | ) | (67,179 | ) | ||||||||
|
Provision
for income taxes
|
(360 | ) | (270 | ) | (900 | ) | (750 | ) | ||||||||
|
Loss
from continuing operations
|
(16,099 | ) | (22,460 | ) | (37,771 | ) | (67,929 | ) | ||||||||
|
Loss
from discontinued operations
|
(122 | ) | (616 | ) | (849 | ) | (6,349 | ) | ||||||||
|
Net
loss
|
(16,221 | ) | (23,076 | ) | (38,620 | ) | (74,278 | ) | ||||||||
|
Net
loss attributable to the noncontrolling interest
|
232 | – | 675 | – | ||||||||||||
|
Net
loss attributable to Emeritus Corporation common
shareholders
|
$ | (15,989 | ) | $ | (23,076 | ) | $ | (37,945 | ) | $ | (74,278 | ) | ||||
|
Basic
and diluted loss per common share attributable to
|
||||||||||||||||
|
Emeritus
Corporation common shareholders:
|
||||||||||||||||
|
Continuing
operations
|
$ | (0.41 | ) | $ | (0.57 | ) | $ | (0.95 | ) | $ | (1.74 | ) | ||||
|
Discontinued
operations
|
(0.00 | ) | (0.02 | ) | (0.02 | ) | (0.16 | ) | ||||||||
| $ | (0.41 | ) | $ | (0.59 | ) | $ | (0.97 | ) | $ | (1.90 | ) | |||||
|
Weighted
average common shares outstanding-basic and diluted
|
39,208 | 39,082 | 39,158 | 39,059 | ||||||||||||
|
EMERITUS
CORPORATION
|
||||||||
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
|
(unaudited)
|
||||||||
|
(In
thousands)
|
||||||||
|
Nine
Months Ended September 30,
|
||||||||
|
2009
|
2008
|
|||||||
|
Cash
flows from operating activities:
|
||||||||
|
Net
loss
|
$ | (38,620 | ) | $ | (74,278 | ) | ||
|
Adjustments
to reconcile net loss to net cash provided by
|
||||||||
|
operating
activities
|
||||||||
|
Depreciation
and amortization – continuing operations
|
58,031 | 88,742 | ||||||
|
Depreciation
and amortization – discontinued operations
|
284 | 1,239 | ||||||
|
Amortization
of above/below market rents
|
7,430 | 7,572 | ||||||
|
Amortization
of deferred gain
|
(460 | ) | (1,134 | ) | ||||
|
Impairment
of long-lived assets and investments
|
2,989 | 4,930 | ||||||
|
Amortization
of loan fees
|
2,363 | 1,849 | ||||||
|
Allowance
for doubtful receivables
|
2,317 | 1,096 | ||||||
|
Equity
investment (earnings) losses and distributions
|
(1,108 | ) | 890 | |||||
|
Stock
based compensation
|
3,250 | 3,786 | ||||||
|
Change
in fair value of interest rate swaps
|
(621 | ) | (16 | ) | ||||
|
Other
|
212 | 221 | ||||||
|
Changes
in operating assets and liabilities
|
||||||||
|
Deferred
rent
|
14,796 | 7,012 | ||||||
|
Deferred
revenue
|
475 | 2,688 | ||||||
|
Change
in operating assets and liabilities – other
|
3,772 | 11,860 | ||||||
|
Net
cash provided by operating activities
|
55,110 | 56,457 | ||||||
|
Cash
flows from investing activities:
|
||||||||
|
Acquisition
of property and equipment
|
(22,416 | ) | (568,035 | ) | ||||
|
Community
acquisition
|
(10,579 | ) | (6,935 | ) | ||||
|
Acquisition
deposits
|
(6,345 | ) | (3,167 | ) | ||||
|
Sale
of property and equipment
|
2,677 | 6,754 | ||||||
|
Lease
and contract acquisition costs
|
(194 | ) | (686 | ) | ||||
|
Payments
from affiliates and other managed communities, net
|
798 | 394 | ||||||
|
Distributions
from (investment in) unconsolidated joint ventures/other
|
1,589 | (2,976 | ) | |||||
|
Net
cash used in investing activities
|
(34,470 | ) | (574,651 | ) | ||||
|
Cash
flows from financing activities:
|
||||||||
|
Proceeds
from sale of stock
|
629 | 950 | ||||||
|
Decrease
(increase) in restricted deposits
|
(477 | ) | 1,882 | |||||
|
Debt
issuance and other financing costs
|
(564 | ) | (9,405 | ) | ||||
|
Proceeds
from long-term borrowings and financings
|
16,008 | 663,496 | ||||||
|
Repayment
of long-term borrowings and financings
|
(4,397 | ) | (151,055 | ) | ||||
|
Repayment
of capital lease and financing obligations
|
(7,003 | ) | (11,743 | ) | ||||
|
Net
cash provided by financing activities
|
4,196 | 494,125 | ||||||
|
Net
increase (decrease) in cash and cash equivalents
|
24,836 | (24,069 | ) | |||||
|
Cash
and cash equivalents at the beginning of the period
|
27,254 | 67,710 | ||||||
|
Cash
and cash equivalents at the end of the period
|
$ | 52,090 | $ | 43,641 | ||||
|
EMERITUS
CORPORATION
|
||||||||
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
||||||||
|
(unaudited)
|
||||||||
|
(In
thousands, except per share data)
|
||||||||
|
Three
Months Ended
|
||||||||
|
September
30,
|
June
30,
|
|||||||
|
2009
|
2009
|
|||||||
|
Revenues:
|
||||||||
|
Community
revenue
|
$ | 221,262 | $ | 217,631 | ||||
|
Management
fees
|
1,439 | 1,453 | ||||||
|
Total
operating revenues
|
222,701 | 219,084 | ||||||
|
Expenses:
|
||||||||
|
Community
operations (exclusive of depreciation and amortization
|
||||||||
|
and
facility lease expense shown separately below)
|
146,700 | 138,487 | ||||||
|
General
and administrative
|
16,429 | 15,987 | ||||||
|
Impairment
loss on long-lived assets
|
1,857 | - | ||||||
|
Depreciation
and amortization
|
18,643 | 17,960 | ||||||
|
Facility
lease expense
|
29,360 | 29,473 | ||||||
|
Total
operating expenses
|
212,989 | 201,907 | ||||||
|
Operating
income from continuing operations
|
9,712 | 17,177 | ||||||
|
Other
income (expense):
|
||||||||
|
Interest
income
|
575 | 189 | ||||||
|
Interest
expense
|
(26,170 | ) | (25,846 | ) | ||||
|
Change
in fair value of interest rate swaps
|
(221 | ) | 752 | |||||
|
Equity
earnings (losses) in unconsolidated joint ventures
|
(76 | ) | 560 | |||||
|
Other,
net
|
441 | (182 | ) | |||||
|
Net
other expense
|
(25,451 | ) | (24,527 | ) | ||||
|
Loss
from continuing operations before income taxes
|
(15,739 | ) | (7,350 | ) | ||||
|
Provision
for income taxes
|
(360 | ) | (270 | ) | ||||
|
Loss
from continuing operations
|
(16,099 | ) | (7,620 | ) | ||||
|
Loss
from discontinued operations
|
(122 | ) | 316 | |||||
|
Net
loss
|
(16,221 | ) | (7,304 | ) | ||||
|
Net
loss attributable to the non-controlling interest
|
232 | 229 | ||||||
|
Net
loss attributable to Emeritus Corporation common
shareholders
|
$ | (15,989 | ) | $ | (7,075 | ) | ||
|
Basic
and diluted loss per common share attributable to
|
||||||||
|
Emeritus
Corporation common shareholders:
|
||||||||
|
Continuing
operations
|
$ | (0.41 | ) | $ | (0.19 | ) | ||
|
Discontinued
operations
|
(0.00 | ) | 0.01 | |||||
| $ | (0.41 | ) | $ | (0.18 | ) | |||
|
Weighted
average common shares outstanding-basic and diluted
|
39,208 | 39,147 | ||||||
|
Emeritus
Corporation
|
||||||||
|
Cash
lease and interest expense
|
||||||||
|
Three
Months Ended
|
||||||||
|
(unaudited)
|
||||||||
|
(In
thousands)
|
||||||||
|
Projected
|
||||||||
|
Actual
|
Range
|
|||||||
|
September
30, 2009
|
December
31, 2009
|
|||||||
|
Facility
lease expense - GAAP
|
$ | 29,360 | $ | 29,500 - $29,800 | ||||
|
Less:
|
||||||||
|
Straight-line
rents
|
(4,847 | ) | (4,500)-(4,600) | |||||
|
Above/below
market rents
|
(2,457 | ) | (2,500)-(2,600) | |||||
|
Plus:
|
||||||||
|
Capital
lease interest
|
3,355 | 3,300 - 3,400 | ||||||
|
Capital
lease principal
|
2,393 | 2,600 - 2,700 | ||||||
|
Facility
lease expense - CASH
|
$ | 27,804 | $ | 28,400 - $28,700 | ||||
|
Interest
expense - GAAP
|
$ | 26,170 | $ | 26,320 - $26,800 | ||||
|
Less:
|
||||||||
|
Straight-line
interest
|
(28 | ) | (40)-(50) | |||||
|
Capital
lease interest
|
(3,355 | ) | (3,300)_(3,400) | |||||
|
Capitalized
interest
|
12 | 20 - 50 | ||||||
|
Loan
fee amortization
|
(836 | ) | (800)-(900) | |||||
|
Interest
expense - CASH
|
$ | 21,963 | $ | 22,200 - $22,500 | ||||
|
Depreciation
– owned assets
|
$ | 14,340 | $ | 15,100 – 15,200 | ||||
|
Depreciation
– capital and financing leases
|
3,633 | 3,600 – 3,700 | ||||||
|
Amortization
– intangible assets
|
670 | 1,200 – 1,300 | ||||||
|
Total
depreciation and amortization
|
$ | 18,643 | $ | 19,900 - $20,200 | ||||