Five Star Senior Living Inc. Announces First Quarter 2021 Results

Rhea-AI Summary

Five Star Senior Living Inc. (Nasdaq: FVE) reported financial results for Q1 2021, highlighting a strategic plan to improve senior living operations and focus on larger, lower acuity communities. The company completed COVID-19 vaccination clinics across its communities, with over 85% of residents vaccinated. However, combined senior living revenues fell to $30.9 million from $38 million in Q1 2020 due to decreased average occupancy and closures. Net income was $3.3 million, recovering from a $17.2 million loss in the previous year, aided by $7.8 million in Provider Relief Funds.

Positive

• Completed COVID-19 vaccination clinics with over 85% of residents vaccinated.
• Net income improved to $3.3 million from a loss of $17.2 million YoY.
• Opened 8 new outpatient rehabilitation clinics, contributing to future revenue growth.

Negative

• Senior living revenues decreased to $30.9 million from $38 million YoY.
• Spot occupancy dropped to 68.2%, a decline of 150 basis points from previous quarter.

Five Star Senior Living Inc. (Nasdaq: FVE) today announced its financial results for the quarter ended March 31, 2021.

Katherine Potter, President and Chief Executive Officer, made the following statement:

"Our recently announced strategic business plan is designed to further improve our senior living operations as we reshape our management business to focus on areas of operational strength as well as direct our efforts towards where we see the strongest market opportunities with the active, aging adult population. We believe this sharpened focus on larger and lower acuity communities will not only highlight our expertise as a senior living operator, but also support the evolution of our services business to better serve our target demographic and continue to diversify our revenue sources.

We are pleased to have completed all vaccination clinics across our communities and proud of our organization for its dedicated response throughout the COVID-19 pandemic. Our commitment to safety and wellness underscores our ongoing mission to enrich the resident experience at our communities and drive the recovery and future success of our business. We are encouraged to see positive momentum with move-ins and occupancy trends over the course of March and April, with 90 net positive moves since March 31st in our comparable communities.

Our rehabilitation and wellness services will continue to be an integral part of our company as we implement our strategic plan. In the first quarter, Ageility opened eight net new outpatient rehabilitation clinics. This segment represents approximately 39% of our total management and operating revenues. Our financial position remains strong with $109.5 million of unrestricted cash on our balance sheet and no amounts outstanding on our revolving credit facility. We feel confident in our ability to execute our strategic plan throughout 2021 and beyond."

First Quarter Highlights:

• As of May 1, 2021, all of FVE's senior living communities have completed vaccination clinics and over 85% of FVE's residents have received a COVID-19 vaccine. At May 1, 2021, all of FVE's owned, leased and managed senior living communities were accepting new residents in at least one service line of business (independent living, assisted living or memory care). Combined senior living revenues and management fees, including those for communities FVE manages on behalf of Diversified Healthcare Trust, or DHC, for the first quarter ended March 31, 2021 decreased to $30.9 million from $38.0 million for the same period in 2020, primarily due to decreased average occupancy resulting from the impact of the COVID-19 pandemic as well as the impact of the sale of nine senior living communities and closure of seven senior living communities in 2020 that FVE previously managed on behalf of DHC. Spot occupancy at communities FVE owns and leases as of March 31, 2021 was 68.2%, which represents a 150 basis points decrease as compared to December 31, 2020. Spot occupancy at the communities FVE manages on behalf of DHC was 70.2% as of March 31, 2021, which is a 60 basis points decrease when compared to December 31, 2020.

• Rehabilitation and wellness services revenues for the first quarter of 2021 decreased to $19.6 million from $21.4 million for the same period in 2020, primarily due to a reduction of inpatient clinic visits as a result of the COVID-19 pandemic partially offset by the opening of 21 net new Ageility physical therapeutic clinics since January 1, 2020. For the first quarter of 2021, Ageility opened 8 net new outpatient rehabilitation clinics.

• Net income for the first quarter of 2021 was $3.3 million, or $0.10 per diluted share, compared to a net loss of $17.2 million, or $0.55 per diluted share, for the first quarter of 2020, which included $22.9 million of one-time expenses related to the termination of leases for communities FVE previously leased from DHC. Net income for the first quarter of 2021 was impacted by $7.8 million of Provider Relief Funds received and recognized under the Corona

FAQ

What were the financial results for Five Star Senior Living (FVE) in Q1 2021?

Five Star Senior Living reported a net income of $3.3 million for Q1 2021, recovering from a loss of $17.2 million in Q1 2020.

How did COVID-19 impact Five Star Senior Living's (FVE) revenue?

The company reported a decrease in combined senior living revenues to $30.9 million in Q1 2021, down from $38 million due to lower occupancy rates and community closures.

What strategic changes is Five Star Senior Living (FVE) implementing?

FVE is focusing on larger and lower acuity communities as part of its strategic plan to enhance operations and diversify revenue sources.

How many rehabilitation clinics did Five Star Senior Living (FVE) open in Q1 2021?

FVE opened 8 net new outpatient rehabilitation clinics in the first quarter of 2021.

What was the occupancy rate for Five Star Senior Living (FVE) as of March 31, 2021?

Spot occupancy for FVE's owned and leased communities was 68.2% as of March 31, 2021.