EX-99.1 3 ex991prq12011earningsesc.htm EX-99.1 PRESS RELEASE Q1 2011 EARNINGS ESC ex991prq12011earningsesc.htm


 
 NEWS RELEASE
 
For Immediate Release
   
     
     
EMERITUS ANNOUNCES OPERATING
RESULTS FOR FIRST QUARTER 2011


SEATTLE, WA, May 5, 2011 - Emeritus Corporation (NYSE: ESC), a national provider of senior living services, today announced its first quarter 2011 results.

Operating Summary for First Quarter 2011 Compared to First Quarter 2010

·  
Total revenues increased $66.0 million, or 28.2%, to $300.2 million
·  
Adjusted EBITDAR increased $15.7 million, or 24.1%, to $81.0 million
·  
CFFO increased $4.0 million, or 37.8%, to $14.6 million
·  
Same community average monthly revenue per occupied unit improved by 2.1% to $3,796
·  
Same community average occupancy increased 10 basis points to 87.6%
·  
Same community operating margin was 33.8% compared to 34.4%

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.”

2011 First Quarter Same Community Results

As of March 31, 2011, the consolidated Emeritus portfolio consisted of 308 communities, of which 269 communities are included in our definition of same communities.  Total same community revenue increased $5.3 million to $235.8 million in the first quarter of 2011.  The increase in same community revenue consisted primarily of rate improvements.  Average monthly revenue per occupied unit increased 2.1% to $3,796 in the first quarter of 2011 from $3,718 in the corresponding period in 2010.  Average occupancy increased 10 basis points to 87.6% from 87.5% in the comparative period last year.

The Company’s same community operating expenses increased $5.0 million to $156.1 million in the first quarter of 2011.  Operating expenses reflected a $3.1 million, or 4.6%, increase in salary and wages as well as increases in payroll taxes and bad debt expenses.  These increases were partially offset by a decrease in health insurance expense.  The increase in salaries and wages included increased hours to care for a greater number of residents living in our communities.  An increasing number of our residents have elected to share living accommodations, which increases the Company’s resident count without a corresponding increase in the occupied units.  On a per resident day basis, same community salaries and wages increased by 3.1%.

Same community operating income (community revenues less community operating expenses) increased $0.2 million to $79.6 million for a 33.8% operating margin in the first quarter of 2011.

 
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2011 First Quarter Consolidated Results

Total revenue in the first quarter of 2011 increased 28.2% to $300.2 million.  The $66.0 million revenue increase consisted of $5.3 million in the Company’s same community portfolio of 269 communities operated during both periods, $56.1 million from the acquisition of communities (net of dispositions), $4.1 million in management fees primarily from the August 2010 joint venture acquisition of former Sunwest communities, and $0.5 million primarily from the change in deferral of move-in fee revenues.

Total average monthly revenue per occupied unit for the consolidated portfolio increased 9.9% to $4,059 in the first quarter of 2011 from $3,692 in the first quarter of 2010.  This increase in rate was primarily due to the consolidated communities added in the fourth quarter of 2010 that had higher average rates.

In the first quarter of 2011, total average occupancy for the consolidated portfolio decreased to 86.0% from 87.1% in the first quarter of 2010 primarily from the acquisition of communities with lower occupancy rates.

Community operating expenses increased $44.0 million to $199.0 million in the first quarter of 2011.  Approximately $39.5 million of the increase resulted from the acquisition of communities (net of dispositions) during 2010 and $5.0 million from same community operating expenses, with an offsetting balance from a $0.5 million decrease in corporate expenses not allocated to communities, primarily related to changes in self-insurance reserves.

Community operating income increased $17.8 million, or 22.9%, to $95.7 million in the first quarter of 2011 compared with $77.9 million in the first quarter of 2010.

General and administrative expenses increased $6.1 million to $23.2 million in the first quarter of 2011, with the increase resulting primarily from a labor and benefit expense increase of $4.4 million from additional staffing to support the 177 communities added to our operated portfolio during 2010, as well as higher non-cash stock option expenses of $0.9 million.  As a percent of total operated community revenue, which includes revenues of managed communities, general and administrative expenses decreased to 5.7% in the first quarter of 2011 compared to 6.6% in the prior year quarter.

For the quarter ended March 31, 2011, adjusted earnings before interest, taxes, depreciation and amortization, and rents (“Adjusted EBITDAR”) increased $15.7 million, or 24.1%, to $81.0 million, with the increase primarily driven by the $17.8 million improvement in community operating income.  For the same period, cash from facility operations (“CFFO”) increased $4.0 million, or 37.8%, to $14.6 million.

Significant First Quarter 2011 Transactions

On January 31, 2011, the Company purchased a 126-unit assisted living and memory care community located in Mesa, Arizona for $12.9 million.  The purchase was financed with a three-year, $10.0 million mortgage loan with the balance paid in cash.  Monthly payments on the loan are based on a 25-year amortization period with interest at the 90-day LIBOR rate plus 4.95%, with a LIBOR floor of 1.0%.

In February 2011, the Company entered into an agreement to purchase certain rights related to six of 18 communities included in a cash flow sharing agreement between Emeritus and Mr. Baty that commenced in October 2004.  The total purchase price was $10.3 million in cash, which was based on predetermined formulas.  Under accounting rules, $6.2 million was recorded as an expense included in transaction costs in the statement of operations for the first quarter of 2011 and $4.1 million was recorded within shareholders’ equity.

 
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In March 2011, the Company refinanced a $19.7 million mortgage loan due in January 2012 with a variable interest rate that was at 6.75%.  The new agency mortgage loan in the amount of $17.9 million matures in April 2021 and requires monthly payments based on a 30-year amortization period with a fixed interest rate of 6.4%.  In addition, the Company extended the due date on an $8.9 million loan from May 2011 to May 2012 on the same terms and conditions.

On March 31, 2011, the Company purchased an 84-unit assisted living and memory care community located in Mandeville, Louisiana for $10.4 million.  The purchase was financed with a ten-year, $7.8 million agency mortgage loan with the balance paid in cash.  Monthly payments on the loan are based on a 30-year amortization with fixed interest rate of 6.43%.  Emeritus began operating this community on April 1, 2011.

Balance Sheet

As of March 31, 2011, the Company had $79.9 million of cash and cash equivalents, and had no outstanding borrowings under its $25.0 million line of credit.  On March 31, 2011, total assets were $2.6 billion, including $2.2 billion of net investments in properties, total debt was $2.0 billion, including capital lease obligations, and shareholders’ equity was $326.5 million.

2011 Guidance Update

The Company provides annual guidance in certain key categories.  The guidance pertains to the Company’s existing portfolio and excludes future acquisitions.

The Company is maintaining its guidance for 2011 as follows:
·  
Consolidated revenue in the range of $1.20 billion to $1.25 billion.
·  
Routine capital expenditures in the range of $16.0 million to $18.0 million, which equates to about $560 to $630 per consolidated unit.
·  
General and administrative expenses as a percent of total operated revenue to be approximately 5.8%.


Conference Call:

The Company will host a conference call on Thursday, May 5, 2011, at 5:00 P.M. Eastern Time to discuss its financial results for the first quarter of 2011.

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) 407-0789, or for international participants (201) 689-8562.  A replay of the conference call will be available after 8:00 P.M. Eastern Time on Thursday, May 5, 2011, until midnight Eastern Time, Thursday, May 12, 2011.  The dial in numbers for the replay are (877) 870-5176, or for international participants (858) 384-5517.  To access the telephonic replay, enter conference ID 371182.


 
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Non-GAAP Financial Measures

Adjusted EBITDA/EBITDAR and Cash From Facility Operations (“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.  Adjusted EBITDA/EBITDAR and CFFO are used by senior management to review the financial performance of the business and 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 the reconciliation of net cash provided by operating activities to CFFO, provided below, along with our consolidated balance sheets, statements of operations, and statements of cash flows.  We define Adjusted EBITDA/EBITDAR and CFFO and provide other information about these non-GAAP measures in our quarterly report on Form 10-Q for the quarter ended March 31, 2011, to be filed with the Securities and Exchange Commission (the “SEC”).

The table below shows the reconciliation of net loss to Adjusted EBITDA/EBITDAR for the three months ended March 31, 2011 and 2010 (in thousands):

   
Three Month Ended
 
   
March 31,
 
   
2011
   
2010
 
             
Net loss
  $ (22,678 )   $ (14,402 )
Depreciation and amortization
    28,087       20,446  
Interest income
    (111 )     (112 )
Interest expense
    36,264       27,041  
Net equity losses (earnings) for unconsolidated JVs
    374       (149 )
Provision for income taxes
    281       319  
Loss from discontinued operations
          221  
Amortization of above/below market rents
    1,967       2,174  
Amortization of deferred gains
    (288 )     (305 )
Stock-based compensation
    2,343       1,436  
Gain on sale of investment securities
    (1,569 )      
Change in fair value of interest rate swaps
          54  
Deferred revenue
    486       1,009  
Deferred straight-line rent
    2,492       3,591  
Contract buyout costs
    6,256        
Acquisition, development, and financing expenses
    513       53  
Actuarial self-insurance reserve adjustments
    32       597  
Adjusted EBITDA
    54,449       41,973  
Community lease expense, net
    26,537       23,273  
Adjusted EBITDAR
  $ 80,986     $ 65,246  


 
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The following table shows the reconciliation of net cash provided by (used in) operating activities to CFFO for the three months ended March 31, 2011 and 2010 (in thousands):

   
Three Months Ended
 
   
March 31,
 
   
2011
   
2010
 
             
Net cash provided by (used in) operating activities
  $ (266 )   $ 17,377  
Changes in operating assets and liabilities, net
    15,768       (1,504 )
Contract buyout costs
    6,256        
Repayment of capital lease and financing obligations
    (3,395 )     (2,874 )
Recurring capital expenditures
    (4,322 )     (2,792 )
Distributions from unconsolidated joint ventures, net
    550       379  
Cash From Facility Operations
  $ 14,591     $ 10,586  
                 
CFFO per share
  $ 0.33     $ 0.27  
                 

     
We define recurring capital expenditures as actual costs incurred to maintain our communities for their intended business purpose and exclude expenditures for acquisitions, development, expansions, and general corporate purposes.

For a more detailed understanding of Emeritus, please refer to the Company’s annual report on Form 10-K for the year ended December 31, 2010, filed with the SEC and our quarterly report on Form 10-Q for the three months ended March 31, 2011, to be filed with the SEC on or before May 10, 2011, or visit our website at www.emeritus.com to obtain copies.
 
 ABOUT THE COMPANY
 

Emeritus Corporation is a national provider of senior living services.  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 482 communities in 42 states representing capacity for approximately 43,100 units and approximately 50,100 residents.  Our common stock is traded on the New York Stock Exchange under the symbol ESC, and our website is 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 refinancings; our ability to control community operation expenses 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

 
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operations, and uncertainties related to professional liability and workers’ compensation 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, 2010.  The Company undertakes no obligation to update the information provided herein.

Contact:
Investor Relations
(206) 298-2909

Media Contacts:
Liz Brady                                                                 Sari Martin
Liz.brady@icrinc.com                                           Sari.martin@icrinc.com
646-277-1226                                                          203-682-8345

 
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EMERITUS CORPORATION
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(unaudited)
 
(In thousands, except share data)
 
             
ASSETS
 
   
March 31,
   
December 31,
 
Current Assets:
 
2011
   
2010
 
Cash and cash equivalents
  $ 79,941     $ 110,124  
Short-term investments
    3,275       2,874  
Trade accounts receivable, net of allowance of $1,920 and $1,497
    31,501       23,055  
Other receivables
    9,967       7,215  
Tax, insurance, and maintenance escrows
    20,768       22,271  
Prepaid insurance expense
    32,019       28,852  
Deferred tax asset
    15,689       15,841  
Other prepaid expenses and current assets
    7,962       6,417  
Total current assets
    201,122       216,649  
Investments in unconsolidated joint ventures
    18,469       19,394  
Property and equipment, net of accumulated depreciation of $331,681 and $304,495
    2,162,309       2,163,556  
Restricted deposits
    14,525       14,165  
Goodwill
    79,060       75,820  
Other intangible assets, net of accumulated amortization of $37,703 and $36,109
    98,716       100,239  
Other assets, net
    22,297       23,969  
Total assets
  $ 2,596,498     $ 2,613,792  
                 
LIABILITIES, SHAREHOLDERS' EQUITY AND NONCONTROLLING INTEREST
 
                 
Current Liabilities:
               
Current portion of long-term debt
  $ 164,969     $ 73,197  
Current portion of capital lease and financing obligations
    14,832       14,262  
Trade accounts payable
    7,181       7,840  
Accrued employee compensation and benefits
    55,296       53,663  
Accrued interest
    7,899       7,969  
Accrued real estate taxes
    10,055       12,306  
Accrued professional and general liability
    10,065       10,810  
Other accrued expenses
    18,982       18,759  
Deferred revenue
    14,339       13,757  
Unearned rental income
    22,483       21,814  
Total current liabilities
    326,101       234,377  
Long-term debt obligations, less current portion
    1,220,766       1,305,757  
Capital lease and financing obligations, less current portion
    627,601       629,797  
Deferred gain on sale of communities
    5,626       5,914  
Deferred straight-line rent
    52,339       50,142  
Other long-term liabilities
    37,546       36,299  
Total liabilities
    2,269,979       2,262,286  
                 
Commitments and contingencies
               
Shareholders' Equity and Noncontrolling Interest:
               
Preferred stock, $.0001 par value. Authorized 20,000,000 shares, none issued
    -       -  
Common stock, $.0001 par value. Authorized 100,000,000 shares; issued and outstanding
               
44,269,447 and 44,193,818 shares
    4       4  
Additional paid-in capital
    815,471       814,209  
Accumulated other comprehensive income
    -       1,472  
Accumulated deficit
    (493,901 )     (471,340 )
Total Emeritus Corporation shareholders' equity
    321,574       344,345  
   Noncontrolling interest – related party
    4,945       7,161  
Total shareholders’ equity
    326,519       351,506  
   Total liabilities, shareholders' equity and noncontrolling interest
  $ 2,596,498     $ 2,613,792  


 
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EMERITUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)


   
Three Months Ended
 
   
March 31,
 
   
2011
   
2010
 
Revenues:
           
Community revenue
  $ 294,720     $ 232,873  
Management fees
    5,461       1,331  
Total operating revenues
    300,181       234,204  
                 
                 
Expenses:
               
Community operations (exclusive of depreciation and amortization
               
    and community leases shown separately below)
    199,031       155,022  
General and administrative
    23,213       17,161  
Transaction costs
    6,749       43  
Depreciation and amortization
    28,087       20,446  
Community leases
    30,996       29,038  
Total operating expenses
    288,076       221,710  
Operating income from continuing operations
    12,105       12,494  
                 
Other income (expense):
               
Interest income
    111       112  
Interest expense
    (36,264 )     (27,041 )
Change in fair value of interest rate swaps
          (54 )
Net equity earnings (losses) for unconsolidated joint ventures
    (374 )     149  
Other, net
    2,025       478  
Net other expense
    (34,502 )     (26,356 )
                 
Loss from continuing operations before income taxes
    (22,397 )     (13,862 )
Provision for income taxes
    (281 )     (319 )
Loss from continuing operations
    (22,678 )     (14,181 )
Loss from discontinued operations
          (221 )
Net loss
    (22,678 )     (14,402 )
Net loss attributable to the noncontrolling interest
    117       191  
Net loss attributable to Emeritus Corporation common shareholders
  $ (22,561 )   $ (14,211 )
                 
Basic and diluted loss per common share attributable to
               
   Emeritus Corporation common shareholders:
               
   Continuing operations
  $ (0.51 )   $ (0.35 )
   Discontinued operations
          (0.01 )
    $ (0.51 )   $ (0.36 )
                 
Weighted average common shares outstanding: basic and diluted
    44,210       39,279  
 
 
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EMERITUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)



   
Three Months Ended March 31,
 
   
2011
   
2010
 
Cash flows from operating activities:
           
Net loss
  $ (22,678 )   $ (14,402 )
Adjustments to reconcile net loss to net cash provided by (used in)
               
operating activities:
               
Depreciation and amortization
    28,087       20,446  
Amortization of above/below market rents
    1,967       2,174  
Amortization of deferred gains
    (288 )     (305 )
Loss on sale of assets
          230  
Gain on sale of investments
    (1,569 )      
Amortization of loan fees
    734       752  
Allowance for doubtful receivables
    2,034       1,062  
Equity investment losses (earnings)
    374       (149 )
Stock-based compensation
    2,343       1,436  
Change in fair value of interest rate swaps
          54  
Deferred straight-line rent
    2,492       3,591  
Deferred revenue
    486       1,009  
Other
    1,520       (25 )
Changes in operating assets and liabilities
               
Change in other operating assets and liabilities
    (15,768 )     1,504  
Net cash provided by (used in) operating activities
    (266 )     17,377  
                 
Cash flows from investing activities:
               
Acquisition of property and equipment
    (7,220 )     (5,253 )
Community acquisitions
    (23,273 )      
Other investments
    (484 )     (806 )
Proceeds from the sale of investments
    2,805        
Lease and contract acquisition costs
    (191 )     (282 )
Advances to affiliates and other managed communities, net
    (2,050 )     (193 )
Distributions from unconsolidated joint ventures, net
    550       379  
Net cash used in investing activities
    (29,863 )     (6,155 )
                 
Cash flows from financing activities:
               
Sale of stock, net
    397       203  
Distribution to noncontrolling interest
    (4,077 )      
Increase in restricted deposits
    (318 )     (484 )
Debt issuance and other financing costs
    (1,197 )     (23 )
Proceeds from long-term borrowings and financings
    35,650        
Repayment of long-term borrowings and financings
    (27,114 )     (2,713 )
Repayment of capital lease and financing obligations
    (3,395 )     (2,874 )
Net cash used in financing activities
    (54 )     (5,891 )
                 
Net increase (decrease) in cash and cash equivalents
    (30,183 )     5,331  
Cash and cash equivalents at the beginning of the period
    110,124       46,070  
Cash and cash equivalents at the end of the period
  $ 79,941     $ 51,401  

 
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EMERITUS CORPORATION
 
Lease, Interest and Depreciation Expense
 
For the Quarters Ended
 
(unaudited)
 
(In thousands)
 
             
         
Projected
         
Range
      Q1 2011       Q2 2011  
Community leases expense - GAAP
  $ 30,996     $ 31,000 - $31,300  
Less:
               
   Straight-line rents
    (2,492 )     (2,400) - (2,500
   Above/below market rents
    (1,967 )     (2,000) - (2,100 )
Plus:
               
   Capital lease interest
    13,393       13,400 - 13,500  
   Capital lease principal
    1,718       1,800 - 1,900  
Community leases expense - CASH
  $ 41,648     $ 41,800 - $42,100  
                 
                 
                 
Interest expense - GAAP
  $ 36,264     $ 36,615 - $37,120  
Less:
               
   Straight-line interest
    (16 )     (15) - (20 )
   Capital lease interest
    (13,393 )     (13,400) - (13,500
   Loan fee amortization
    (734 )     (700) - (800 )
Interest expense - CASH
  $ 22,121     $ 22,500 - $22,800  
                 
Depreciation – owned assets
  $ 16,070     $ 16,400 – $16,500  
Depreciation – capital leases
    11,307       11,300 – 11,400  
Amortization – intangible assets
    710       800 – 900  
Total depreciation and amortization expense
  $ 28,087     $ 28,500 - $28,800  
                 


 
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EMERITUS CORPORATION
 Consolidated Supplemental Financial Information
For the Quarters Ended
(unaudited)
 (Dollars in thousands, except non-financial and per-unit data)
 
 

 
Non-Financial Data
    Q1 2010       Q2 2010       Q3 2010       Q4 2010       Q1 2011  
Average consolidated communities
    273.7       275.3       278.0       296.7       306.7  
Average available units
    24,140       24,365       24,618       26,926       28,134  
Average occupied units
    21,023       21,238       21,432       23,212       24,205  
Average occupancy
    87.1 %     87.2 %     87.1 %     86.2 %     86.0 %
Average monthly revenue per occupied unit
  $ 3,692     $ 3,732     $ 3,827     $ 3,999     $ 4,059  
Calendar days
    90       91       92       92       90  
                                         
Community revenues:
                                       
Community revenues
  $ 229,815     $ 234,560     $ 242,034     $ 274,845     $ 290,489  
Move-in fees
    3,753       3,838       4,543       4,856       4,960  
Move-in incentives
    (695 )     (611 )     (547 )     (1,212 )     (729 )
     Total community revenues
  $ 232,873     $ 237,787     $ 246,030     $ 278,489     $ 294,720  
                                         
Community operating expenses:
                                       
Salaries and wages - regular and overtime
  $ 69,808     $ 72,574     $ 75,726     $ 88,031     $ 91,549  
Average daily salary and wages
  $ 776     $ 798     $ 823     $ 957     $ 1,017  
Average daily wages per occupied unit
  $ 36.90     $ 37.55     $ 38.41     $ 41.22     $ 42.02  
                                         
Payroll taxes and employee benefits
  $ 26,244     $ 24,672     $ 25,232     $ 27,016     $ 33,425  
Percent of salaries and wages
    37.6 %     34.0 %     33.3 %     30.7 %     36.5 %
                                         
Actuarial self-insurance reserve adjustments
  $ 584     $ 1,859     $ 134     $ 2,668     $ 32  
                                         
Utilities
  $ 11,522     $ 9,792     $ 12,158     $ 11,453     $ 13,492  
Average monthly cost per occupied unit
  $ 183     $ 154     $ 189     $ 164     $ 186  
                                         
Facility maintenance and repairs
  $ 5,898     $ 5,715     $ 6,123     $ 6,023     $ 7,420  
Average monthly cost per occupied unit
  $ 94     $ 90     $ 95     $ 86     $ 102  
                                         
All other community operating expenses
  $ 40,966     $ 42,840     $ 44,970     $ 50,132     $ 53,113  
Average monthly cost per occupied unit
  $ 650     $ 672     $ 699     $ 720     $ 731  
                                         
Total community operating expenses
  $ 155,022     $ 157,452     $ 164,343     $ 185,323     $ 199,031  
                                         
Community operating income
  $ 77,851     $ 80,335     $ 81,687     $ 93,166     $ 95,689  
                                         
Operating income margin
    33.4 %     33.8 %     33.2 %     33.5 %     32.5 %

 
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EMERITUS CORPORATION
 
Selected Consolidated and Same Community Information
For the Quarters Ended
 
(unaudited)
(Community revenue and operating expense in thousands)
 
 
      Q1 2010       Q2 2010       Q3 2010       Q4 2010       Q1 2011  
Consolidated:
                                       
    Average consolidated communities
    273.7       275.3       278.0       296.7       306.7  
    Community revenue
  $ 232,873     $ 237,787     $ 246,030     $ 278,489     $ 294,720  
    Community operating expense
  $ 155,022     $ 157,452     $ 164,343     $ 185,323     $ 199,031  
    Average occupancy
    87.1 %     87.2 %     87.1 %     86.2 %     86.0 %
    Average monthly revenue per unit
  $ 3,692     $ 3,732     $ 3,827     $ 3,999     $ 4,059  
    Operating income margin
    33.4 %     33.8 %     33.2 %     33.5 %     32.5 %
 
Same Community:
                                       
    Average consolidated communities
    269.0       269.0       269.0       269.0       269.0  
    Community revenue
  $ 230,498     $ 232,629     $ 235,772     $ 234,761     $ 235,768  
    Community operating expense
  $ 151,106     $ 149,185     $ 154,958     $ 151,127     $ 156,131  
    Average occupancy
    87.5 %     87.7 %     87.8 %     87.5 %     87.6 %
    Average monthly revenue per unit
  $ 3,718     $ 3,744     $ 3,791     $ 3,783     $ 3,796  
    Operating income margin
    34.4 %     35.9 %     34.3 %     35.6 %     33.8 %
           


 
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