AlerisLife Inc. Announces First Quarter 2022 Results

Rhea-AI Summary

AlerisLife Inc. (Nasdaq: ALR) reported a net loss of $9.7 million, or $0.31 per diluted share, for Q1 2022, reversing from a net income of $3.3 million in Q1 2021. EBITDA fell to $(5.5) million, down from $6.8 million the previous year. Adjusted EBITDA was $(5.3) million compared to $6.9 million. However, Revenue per Available Room (RevPAR) showed a positive uptick, increasing 2.7% year-over-year for managed communities and 0.9% for owned communities. The company continues to operate in senior living through its Five Star and Ageility brands.

Positive

• RevPAR for managed communities increased 2.7% year-over-year.
• RevPAR for owned communities improved by 0.9% compared to Q1 2021.
• Quarter-end occupancy for owned and leased communities rose to 72.1% from 68.2% year-over-year.

Negative

• Net loss increased to $9.7 million from a net income of $3.3 million in Q1 2021.
• Total living units decreased from 29,265 in Q1 2021 to 19,999 in Q1 2022.
• EBITDA decreased significantly from $6.8 million in Q1 2021 to $(5.5) million in Q1 2022.

NEWTON, Mass.--(BUSINESS WIRE)-- AlerisLife Inc. (Nasdaq: ALR) today announced its financial results for the three months ended March 31, 2022.

First Quarter Summary of Financial Results:

• Net loss for the first quarter of 2022 was $9.7 million, or $0.31 per diluted share, compared to net income of $3.3 million, or $0.10 per diluted share, for the first quarter of 2021.

• Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the first quarter of 2022 was $(5.5) million compared to $6.8 million for the first quarter of 2021. Adjusted EBITDA, as described further below, was $(5.3) million for the first quarter of 2022 compared to $6.9 million for the first quarter of 2021.

• EBITDA and Adjusted EBITDA are non-GAAP financial measures. Reconciliations of net (loss) income determined in accordance with U.S. generally accepted accounting principles, or GAAP, to EBITDA and Adjusted EBITDA for the first quarter of 2022 and 2021 are presented later in this press release.

• RevPAR for the comparable managed communities for the first quarter of 2022 was $3,027 compared to $2,946 for the first quarter of 2021, an increase of 2.7%. Compared to the sequential quarter, RevPAR for the comparable managed communities increased 4.4%. RevPAR for the comparable owned communities for the first quarter of 2022 was $2,443 compared to $2,421 for the first quarter of 2021, an increase of 0.9%. Compared to the sequential quarter, RevPAR for the comparable owned communities increased 4.0%.

Substantially all of ALR's business is conducted by its two segments: (i) its residential segment through its Five Star Senior Living, or Five Star, brand and (ii) its lifestyle services segment primarily through its brands Ageility Physical Therapy Solutions and Ageility Fitness, or collectively Ageility, and Windsong Home Health. The following tables present data on the owned and managed senior living communities that ALR operates through its Five Star brand, including comparable community data, as well as data on the rehabilitation clinics that ALR operates through its Ageility brand, including comparable outpatient clinic data.

Summary of Operational Results
		As of and for the Three Months Ended
		March 31, 2022				December 31, 2021				March 31, 2021
Residential Segment:
Five Star:
Number of living units (end of period)
Independent living			10,423				10,423				10,979
Assisted living			7,715				7,764				12,109
Memory care			1,861				1,872				3,220
Skilled nursing			—				46				2,957
Total living units			19,999				20,105				29,265
RevPAR
Owned (1)		$	2,443			$	2,349			$	2,479
Managed		$	3,027			$	2,919			$	3,213
Quarter End Occupancy
Owned and Leased (1)			72.1	%			72.7	%			68.2	%
Managed			74.6	%			74.8	%			70.2	%
Comparable Communities (2):
RevPAR
Owned		$	2,443			$	2,349			$	2,421
Managed		$	3,027			$	2,900			$	2,946
Quarter End Occupancy
Owned			72.1	%			72.7	%			69.0	%
Managed			74.6	%			75.2	%			73.2	%
Operating Margin (3)
Owned			(24.2	) %			(25.2	) %			(12.5	) %
Managed			5.9	%			3.5	%			8.8	%

		As of and for the Three Months Ended
		March 31, 2022			December 31, 2021			March 31, 2021
Lifestyle Services Segment:
Ageility:
Number of Clinics
Inpatient (4)		10			10			37
Outpatient		201			205			215
Number of Visits (in thousands)
Inpatient (4)		22			21			72
Outpatient		144			148			149
Comparable Outpatient Clinics (5):
Caseload as a % of census (6)		23.9	%		24.0	%		27.0	%
Operating margin (3)		2.7	%		9.4	%		14.9	%

___________________________

(1)		For the three months ended March 31, 2021, includes four leased communities with approximately 200 living units previously leased from HealthPeak Properties, Inc., or HealthPeak. The lease with HealthPeak was terminated on September 30, 2021.
(2)		Comparable communities includes financial data for 20 owned senior living communities and 120 managed senior living communities that ALR continuously owned or managed and operated through its Five Star brand since January 1, 2021, exclusive of 1,532 skilled nursing facility, or SNF, living units that have been closed and are in the process of being repositioned in 27 Continuing Care Retirement Communities, or CCRCs, that ALR will continue to manage.
(3)		Operating margin is defined as operating revenue less operating expenses divided by operating revenue in each case for the business segment. For the Residential segment, it is inclusive of 1,532 SNF living units, which have been closed and are in the process of being repositioned, in 27 former CCRCs that ALR continues to manage. It is exclusive of Provider Relief Funds from the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, and other government grants recognized as other operating income. In addition, it excludes restructuring expenses for the three months ended December 31, 2021 of $0.3 million for the comparable managed communities.
(4)		Subsequent to March 31, 2021, ALR closed 27 inpatient rehabilitation clinics.
(5)		Comparable outpatient clinics includes financial data for 185 outpatient rehabilitation clinics that ALR continuously operated since January 1, 2021.
(6)		Caseload as a percentage of census represents the number of Ageility customers divided by total census at the senior living communities where the Ageility outpatient rehabilitation clinics are located.

Term Loan

On January 27, 2022, ALR entered into a credit and security agreement, or the Credit Agreement, for a $95.0 million senior secured term loan, or the Loan, $63.0 million of which was funded upon the effectiveness of the Credit Agreement, including approximately $3.2 million in closing costs. The remaining proceeds include $12.0 million for capital improvements at ALR owned communities and an opportunity for another $20.0 million that is available to us upon achieving certain financial targets. The maturity date of the Loan is January 27, 2025. Subject to the payment of an extension fee and meeting certain other conditions, ALR may elect to extend the stated maturity date of the Loan for two, one-year periods. ALR is required to pay interest on outstanding amounts at an annual base rate of the Secured Overnight Financing Rate, or SOFR, plus a term SOFR adjustment of 11 basis points (subject to a minimum base rate of 50 basis points), plus 450 basis points.

Summary of Communities and Outpatient Rehabilitation Clinics

Presented below is a summary of the communities, units, average occupancy, quarter end occupancy, revenues and residential management fees for the Five Star senior living communities ALR manages for DHC, as of and for the three months ended March 31, 2022 (dollars in thousands):

		Total
		Communities		Units		Average Occupancy			Quarter End Occupancy			Community Revenues (1)			Management Fees
Independent and assisted living communities		120		17,899		74.1	%		74.6	%		$	162,552		$	8,932
Total		120		17,899		74.1	%		74.6	%		$	162,552		$	8,932

_______________________________________

(1)

Managed senior living communities' revenues do not represent ALR's revenues, and are included to provide supplemental information regarding the operating results of the Five Star senior living communities from which ALR earns residential management fees.

Presented below is a summary of the Ageility outpatient rehabilitation clinics ALR operated as of and for the three months ended March 31, 2022 (dollars in thousands):

		As of and for the Three Months Ended March 31, 2022
		Number of Clinics		Total Revenue (1)(3)			Caseload as a % of census (5)			EBITDA Margin (4)
Outpatient Clinics in Five Star Managed Communities, Owned by DHC		91		$	7,300		25.5	%		4.6	%
Outpatient Clinics at ALR Owned Communities		15			761		27.9	%		2.5	%
Outpatient Clinics at Other Communities (2)		95			3,985		21.6	%		0.6	%
Total Outpatient Clinics		201		$	12,046		23.8	%		3.2	%

_______________________________________

(1)		Excludes revenue of $1,916 earned during the three months ended March 31, 2022 for ten Ageility inpatient rehabilitation clinics.
(2)		Other communities includes outpatient rehabilitation clinics at senior living communities not owned or managed by ALR.
(3)		Total Ageility revenue excludes home health care services, which are part of the lifestyle services segment.
(4)		EBITDA Margin is a non-GAAP financial measure and represents rehabilitation clinics that are in service as of March 31, 2022. A reconciliation of EBITDA Margin is presented later in this press release.
(5)		Caseload as a percentage of census represents the number of Ageility customers divided by total census at the senior living communities where the Ageility outpatient rehabilitation clinics are located.

Conference Call Information:

At 1:00 p.m. Eastern Time on May 4, 2022, ALR's Interim President and Chief Executive Officer and Chief Financial Officer and Treasurer, Jeffrey Leer, will host a conference call to discuss ALR's first quarter 2022 financial results.

The conference call telephone number is (877) 329-4332. Participants calling from outside the United States and Canada should dial (412) 317-5436. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 11:59 p.m. Eastern Time on May 11, 2022. To hear the replay, dial (412) 317-0088. The replay pass code is 6043437.

A live audio webcast of the conference call will also be available in a listen-only mode on ALR’s website, www.alerislife.com. Participants wanting to access the webcast should visit ALR’s website about five minutes before the call. The archived webcast will be available for replay on ALR’s website following the call for about a week. The transcription, recording and retransmission in any way of ALR's first quarter ended March 31, 2022 financial results conference call are strictly prohibited without the prior written consent of ALR. ALR’s website is not incorporated as part of this press release.

About AlerisLife:

AlerisLife enriches and inspires the lives of its older adult customers across the United States by delivering an exceptional and enhanced resident experience to senior living and active adult residents, while also offering lifestyle services to the younger choice-based consumer. The Company is headquartered in Newton, Massachusetts. For more information, visit www.alerislife.com.

AlerisLife Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per share amounts)
(unaudited)
		Three Months Ended March 31,
			2022				2021
REVENUES
Lifestyle services		$	14,139			$	19,553
Residential			15,386				17,057
Residential management fees			8,932				13,850
Total management and operating revenues			38,457				50,460
Reimbursed community-level costs incurred on behalf of managed communities			130,936				213,160
Other reimbursed expenses			3,750				5,480
Total revenues			173,143				269,100
Other operating income			42				7,793
OPERATING EXPENSES
Lifestyle services expenses			13,221				16,210
Residential wages and benefits			8,627				12,013
Other residential operating expenses			7,349				6,266
Community-level costs incurred on behalf of managed communities			130,936				213,160
General and administrative			18,192				22,641
Depreciation and amortization			3,163				2,940
Total operating expenses			181,488				273,230
Operating (loss) income			(8,303	)			3,663
Interest, dividend and other income			80				84
Interest and other expense			(1,032	)			(463	)
Unrealized (loss) gain on equity investments			(632	)			135
Realized (loss) gain on sale of debt and equity investments			(45	)			96
Gain on termination of lease			279				—
(Loss) income before income taxes			(9,653	)			3,515
Provision for income taxes			(77	)			(200	)
Net (loss) income		$	(9,730	)		$	3,315
Weighted average shares outstanding—basic			31,787				31,530
Weighted average shares outstanding—diluted			31,787				31,662
Net (loss) income per share—basic		$	(0.31	)		$	0.11
Net (loss) income per share—diluted		$	(0.31	)		$	0.10

AlerisLife Inc.
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)
(unaudited)

Non-GAAP financial measures are financial measures that are not determined in accordance with GAAP. ALR believes the non-GAAP financial measures presented in the tables below are meaningful supplemental disclosures because they may help investors better understand changes in ALR’s operating results and its ability to meet financial obligations or service debt, make capital expenditures and expand its business. These non-GAAP financial measures may also help investors make comparisons between ALR and other companies on both a GAAP and non-GAAP basis. ALR believes that EBITDA, Adjusted EBITDA and EBITDA Margin are meaningful financial measures that may help investors better understand its financial performance, including by allowing investors to compare ALR's performance between periods and to the performance of other companies. ALR management uses EBITDA, Adjusted EBITDA and EBITDA Margin to evaluate ALR’s financial performance and compare ALR’s performance over time and to the performance of other companies. ALR calculates EBITDA, Adjusted EBITDA and EBITDA Margin as shown below. These measures should not be considered as alternatives to net income (loss) or operating income (loss), as indicators of ALR’s operating performance or as measures of ALR’s liquidity. Also, EBITDA, Adjusted EBITDA and EBITDA Margin as presented may not be comparable to similarly titled amounts calculated by other companies.

ALR believes that net income (loss) is the most directly comparable financial measure, determined according to GAAP, to ALR’s presentation of EBITDA and Adjusted EBITDA. The following table presents the reconciliation of these non-GAAP financial measures to net income (loss) for the three months ended March 31, 2022 and 2021.

		Three Months Ended March 31,
			2022				2021
Net (loss) income		$	(9,730	)		$	3,315
Add (less):
Interest and other expense			1,032				463
Interest, dividend and other income			(80	)			(84	)
Provision for income taxes			77				200
Depreciation and amortization			3,163				2,940
EBITDA			(5,538	)			6,834
Add (less):
Unrealized loss (gain) on equity investments			632				(135	)
Gain on termination of leases			(279	)			—
Net restructuring expenses (1)			(154	)			250
Adjusted EBITDA		$	(5,339	)		$	6,949

_______________________________________

(1)

Includes costs incurred related to the repositioning of ALR's residential service offerings and the restructuring for the three months ended March 31, 2022 and 2021, respectively, and are included in general and administrative expenses in the condensed consolidated statements of operations.

AlerisLife Inc.
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)
(unaudited)

ALR believes that net income (loss) is the most directly comparable financial measure, determined according to GAAP, to ALR’s presentation of EBITDA. The following table presents the reconciliation of these non-GAAP financial measures to net income for the three months ended March 31, 2022 for Ageility.

		Three Months Ended March 31, 2022
		Total
Lifestyle services:
Revenue		$	14,139
Less: Home health services			177
Less: Inpatient rehabilitation (1)			1,916
Total Ageility revenue (2)		$	12,046
Ageility:
Net Income		$	171
Add: Depreciation			97
EBITDA		$	268
EBITDA Margin (3)			2.2	%

_______________________________________

(1)		Revenue for ten Ageility inpatient rehabilitation clinics that currently remain operated by Ageility.
(2)		Total Ageility revenue includes revenue from outpatient rehabilitation clinics and fitness.
(3)		EBITDA Margin is defined by ALR as EBITDA for the period divided by total revenue for the period.

AlerisLife Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands, except per share amounts)
(unaudited)
		March 31,				December 31,
			2022				2021
ASSETS
Current assets:
Cash and cash equivalents		$	88,054			$	66,987
Restricted cash and cash equivalents			25,129				24,970
Accounts receivable, net			9,414				9,244
Due from related person			48,717				41,664
Debt and equity investments, of which $7,062 and $7,609 are restricted, respectively			17,835				19,535
Prepaid expenses and other current assets			22,479				24,433
Total current assets			211,628				186,833
Property and equipment, net			160,170				159,843
Operating lease right-of-use assets			6,123				9,197
Finance lease right-of-use assets			3,236				3,467
Restricted cash and cash equivalents			995				982
Restricted debt and equity investments			3,635				3,873
Other long-term assets			10,683				12,082
Total assets		$	396,470			$	376,277
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	11,868			$	37,516
Accrued expenses and other current liabilities			36,830				31,488
Accrued compensation and benefits			31,087				34,295
Accrued self-insurance obligations			28,950				31,739
Operating lease liabilities			476				699
Finance lease liabilities			889				872
Due to related persons			4,332				3,879
Current portion of debt			422				419
Total current liabilities			114,854				140,907
Long-term liabilities:
Accrued self-insurance obligations			34,050				34,744
Operating lease liabilities			6,190				9,366
Finance lease liabilities			2,821				3,050
Long-term debt			66,770				6,364
Other long-term liabilities			247				256
Total long-term liabilities			110,078				53,780
Commitments and contingencies
Shareholders’ equity:
Common stock, par value $0.01: 75,000,000 shares authorized, 32,550,895 and 32,662,649 shares issued and outstanding, respectively			326				327
Additional paid-in-capital			461,468				461,298
Accumulated deficit			(290,794	)			(281,064	)
Accumulated other comprehensive income			538				1,029
Total shareholders’ equity			171,538				181,590
Total liabilities and shareholders' equity		$	396,470			$	376,277

AlerisLife Inc.
Residential Segment Data
(dollars in thousands, except per unit amounts)
(unaudited)
		Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
			2022				2021				2021				2021				2021
Owned and Leased Senior Living Communities
Independent and assisted living communities:
Revenues		$	15,386			$	14,883			$	16,320			$	16,378			$	17,057
Other operating income (1)			42				—				—				2				7,774
Operating expenses			19,371				18,574				17,895				21,012				20,414
Operating (loss) income			(3,943	)			(3,691	)			(1,575	)			(4,632	)			4,417
Operating margin			(25.6	) %			(24.8	) %			(9.7	) %			(28.3	) %			17.8	%
Number of communities (end of period)			20				20				20				24				24
Number of living units (end of period) (2)			2,100				2,100				2,099				2,251				2,302
Average occupancy			71.0	%			72.0	%			69.9	%			68.1	%			68.3	%
Quarter end occupancy			72.1	%			72.7	%			72.9	%			69.7	%			68.2	%
RevPAR (3)		$	2,443			$	2,349			$	2,411			$	2,425			$	2,479
RevPOR (4)		$	3,444			$	3,192			$	3,375			$	3,524			$	3,630
Managed Senior Living Communities (5):
Residential management fees		$	8,932			$	9,482			$	11,220			$	12,927			$	13,850
Community-level revenues			162,552				161,907				210,160				243,947				259,966
Other operating income (1)			199				602				786				16,564				1,617
Community-level expenses (6)			152,892				159,329				203,756				237,461				247,171
Community operating income			9,859				3,180				7,190				23,050				14,412
Community operating margin			6.1	%			2.0	%			3.4	%			8.8	%			5.5	%
Number of communities (end of period)			120				121				159				228				228
Number of living units (end of period) (2)			17,899				18,005				20,669				25,482				26,963
Average occupancy			74.1	%			73.7	%			72.2	%			69.5	%			69.5	%
Quarter end occupancy			74.6	%			74.8	%			73.8	%			71.3	%			70.2	%
RevPAR (3)		$	3,027			$	2,919			$	3,046			$	3,086			$	3,213
RevPOR (4)		$	4,084			$	3,875			$	4,129			$	4,389			$	4,623

_______________________________________

(1)		Other operating income represents income recognized for funds received under the CARES Act and other government grants.
(2)		Includes living units categorized as in service. As a result, the number of living units may vary from period to period for reasons other than the acquisition or disposition of senior living communities.
(3)		RevPAR is defined by ALR as resident fee revenues for the corresponding portfolio for the period divided by the average number of available units for the period, divided by the number of months in the period. Data for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021 exclude income received by senior living communities under the CARES Act and other government grants.
(4)		RevPOR is defined by ALR as resident fee revenues for the corresponding portfolio for the period divided by the average number of occupied units for the period, divided by the number of months in the period. Data for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021 exclude income received by senior living communities under the CARES Act and other government grants.
(5)		Managed senior living communities, other than ALR's residential management fees, represents financial data of senior living communities managed for DHC and does not represent financial results of ALR. Managed senior living communities' data is included to provide supplemental information regarding the operating results of the senior living communities from which ALR earns residential management fees.
(6)		The three months ended December 31, 2021, September 30, 2021 and June 30, 2021 includes restructuring expense of $966, $813 and $11,531, respectively.

AlerisLife Inc.
Comparable Communities Residential Segment Data
(dollars in thousands, except per unit amounts)
(unaudited)
		Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
			2022				2021				2021				2021				2021
Owned Senior Living Communities (2):
Number of communities (end of period)			20				20				20				20				20
Number of living units (end of period) (1)			2,100				2,100				2,099				2,099				2,099
Average occupancy			71.0	%			72.0	%			70.4	%			68.3	%			68.9	%
Quarter end occupancy			72.1	%			72.7	%			72.9	%			70.1	%			69.0	%
RevPAR (3)		$	2,443			$	2,349			$	2,354			$	2,357			$	2,421
RevPOR (4)		$	3,444			$	3,192			$	3,270			$	3,413			$	3,515
Managed Senior Living Communities (2)(5):
Number of communities (end of period)			120				120				120				120				120
Number of living units (end of period) (1)			17,899				17,899				17,899				17,898				17,906
Average occupancy			74.1	%			74.1	%			73.4	%			72.9	%			72.7	%
Quarter end occupancy			74.6	%			75.2	%			74.6	%			73.3	%			73.2	%
RevPAR (3)		$	3,027			$	2,900			$	2,941			$	2,961			$	2,946
RevPOR (4)		$	4,084			$	3,831			$	3,922			$	4,018			$	4,051

_______________________________________

(1)		Includes living units categorized as in service. As a result, the number of living units may vary from period to period for reasons other than the acquisition or disposition of senior living communities.
(2)		Includes data for Five Star senior living communities that ALR has continuously owned or managed since January 1, 2021. The summary of operations for comparable communities excludes 1,532 SNF living units that have been closed in 27 CCRCs which are in the process of being repositioned and which ALR will continue to manage for DHC.
(3)		RevPAR is defined by ALR as resident fee revenues for the corresponding portfolio for the period divided by the average number of available units for the period, divided by the number of months in the period. Data for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021 exclude income received by senior living communities under the CARES Act and other government grants.
(4)		RevPOR is defined by ALR as resident fee revenues for the corresponding portfolio for the period divided by the average number of occupied units for the period, divided by the number of months in the period. Data for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021 exclude income received by senior living communities under the CARES Act and other government grants.
(5)		Residential segment data for comparable managed senior living communities represents financial data of senior living communities managed for DHC and does not represent financial results of ALR. Managed senior living communities' data is included to provide supplemental information regarding the operating results of the senior living communities from which ALR earns residential management fees.

AlerisLife Inc.
Lifestyle Services Segment Data
(dollars in thousands)
(unaudited)
		Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
			2022				2021				2021				2021				2021
Lifestyle Services (1):
Revenues		$	14,139			$	15,626			$	15,382			$	17,453			$	19,553
Outpatient			11,165				12,848				12,747				13,688				13,098
Fitness			881				890				853				827				733
Other			2,093				1,888				1,782				2,938				5,722
Other operating income (2)			—				—				—				—				19
Operating expenses (3)			13,334				14,045				13,348				17,517				16,338
Operating income (loss)			805				1,581				2,034				(64	)			3,234
Operating margin			5.7	%			10.1	%			13.2	%			(0.4	) %			16.5	%
Number of inpatient clinics (end of period)			10				10				10				10				37
Number of outpatient clinics (end of period)			201				205				223				218				215
Number of fitness locations (end of period)			73				60				61				43				42

_______________________________________

(1)		Includes Ageility rehabilitation clinics and fitness operations as well as home healthcare operations.
(2)		Other operating income represents income recognized for funds received under the CARES Act and other government grants.
(3)		The three months ended December 31, 2021, September 30, 2021 and June 30, 2021 includes restructuring expenses of $23, $(310) and $1,720, respectively

AlerisLife Inc.
Comparable Lifestyle Services Segment Data
(dollars in thousands)
(unaudited)
		Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
			2022				2021				2021				2021				2021
Lifestyle Services (1):
Revenues		$	11,670			$	13,016			$	13,028			$	13,943			$	13,288
Outpatient			10,628				11,923				11,929				12,834				12,304
Fitness			864				859				825				801				703
Other			178				234				274				308				281
Other operating income (2)			—				—				—				—				19
Operating expenses			11,364				11,758				11,695				12,340				11,464
Operating income			306				1,258				1,333				1,603				1,843
Operating margin			2.6	%			9.7	%			10.2	%			11.5	%			13.8	%
Number of inpatient clinics (end of period)			—				—				—				—				—
Number of outpatient clinics (end of period)			185				185				185				185				185
Number of fitness locations (end of period)			69				52				58				40				40

_______________________________________

(1)		Includes Ageility outpatient rehabilitation clinics and fitness operations as well as home healthcare operations that ALR has continuously operated since January 1, 2021.
(2)		Other operating income represents income recognized for funds received under CARES Act and other government grants.

AlerisLife Inc.
Owned Senior Living Communities as of and for the Three Months Ended March 31, 2022
(dollars in thousands)
(unaudited)
No.		Community Name		State		Property Type (1)		Living Units		Residential Revenues (4)			Gross Carrying Value			Net Carrying Value			Date Acquired		Most Recent Renovation
1		Morningside of Decatur (2)		Alabama		AL		49		$	315		$	7,538		$	4,127		11/19/2004		2021
2		Morningside of Auburn (2)		Alabama		AL		42			342			2,153			1,036		11/19/2004		1997
3		The Palms of Fort Myers (2)		Florida		IL		218			1,813			7,280			3,870		4/1/2002		1988
4		Five Star Residences of Banta Pointe (3)		Indiana		AL		121			733			10,978			6,356		9/29/2011		2006
5		Five Star Residences of Fort Wayne (2)		Indiana		AL		154			958			9,176			5,720		9/29/2011		1998
6		Five Star Residences of Clearwater		Indiana		AL		88			351			14,254			8,993		6/1/2011		1999
7		Five Star Residences of Lafayette		Indiana		AL		109			582			11,795			7,547		6/1/2011		2000
8		Five Star Residences of Noblesville (2)		Indiana		AL		151			1,176			13,827			8,689		7/1/2011		2005
9		The Villa at Riverwood (2)		Missouri		IL		112			708			4,967			3,252		4/1/2002		1986
10		Voorhees Senior Living (2)		New Jersey		AL		104			924			19,814			13,429		7/1/2008		1999
11		Washington Township Senior Living		New Jersey		AL		93			775			26,358			17,326		7/1/2008		1998
12		Carriage House Senior Living (2)		North Carolina		AL		98			946			9,938			5,331		12/1/2008		1997
13		Forest Heights Senior Living (2)		North Carolina		AL		111			773			16,242			10,610		12/1/2008		1998
14		Fox Hollow Senior Living (2)		North Carolina		AL		77			1,137			25,691			17,223		7/1/2000		1999
15		Legacy Heights Senior Living (2)		North Carolina		AL		116			588			7,670			3,617		12/1/2008		1997
16		Morningside at Irving Park (2)		North Carolina		AL		91			796			3,800			1,610		11/19/2004		1997
17		The Devon Senior Living		Pennsylvania		AL		84			482			32,837			14,905		7/1/2008		1985
18		The Legacy of Anderson (2)		South Carolina		IL		101			613			11,080			6,429		12/1/2008		2003
19		Morningside of Springfield (2)		Tennessee		AL		54			526			18,784			11,679		11/19/2004		1984
20		Huntington Place		Wisconsin		AL		127			855			2,445			1,511		7/15/2010		1999
		Total						2,100		$	15,393		$	256,627		$	153,260

_______________________________________

(1)		AL is primarily an assisted living community and IL is primarily an independent living community.
(2)		Encumbered property under ALR's $95,000 Loan.
(3)		Encumbered property under ALR's mortgage note having an aggregate principal amount outstanding of $6,877 as of March 31, 2022.
(4)		Excludes funds received under the CARES Act recognized as other operating income.

Warning Concerning Forward-Looking Statements

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever AlerisLife uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, "will", “may” and negatives or derivatives of these or similar expressions, ALR is making forward-looking statements. These forward-looking statements are based upon ALR’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by ALR’s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond ALR's control.

The information contained in ALR’s filings with the Securities and Exchange Commission, or SEC, including under “Risk Factors” in ALR’s periodic reports, or incorporated therein, identifies other important factors that could cause ALR’s actual results to differ materially from those stated in or implied by ALR’s forward-looking statements. ALR’s filings with the SEC are available on the SEC’s website at www.sec.gov.

You should not place undue reliance upon forward-looking statements.

Except as required by law, ALR does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220503006179/en/

Michael Kodesch, Director, Investor Relations

(617) 796-8245

Source: AlerisLife

FAQ

What were AlerisLife's financial results for Q1 2022?

AlerisLife reported a net loss of $9.7 million for Q1 2022, compared to a net income of $3.3 million in Q1 2021.

How did AlerisLife's RevPAR change in Q1 2022?

RevPAR for managed communities increased by 2.7% and for owned communities by 0.9% year-over-year.

What was AlerisLife's EBITDA for Q1 2022?

AlerisLife's EBITDA for Q1 2022 was $(5.5) million, a decline from $6.8 million in Q1 2021.

What was the total occupancy rate for AlerisLife's communities in Q1 2022?

The quarter-end occupancy rate for owned and leased communities was 72.1% in Q1 2022.

What major segments does AlerisLife operate in?

AlerisLife operates primarily in residential services through its Five Star brand and lifestyle services through its Ageility brand.