Five Star Quality Care (FVE) Misses Q1 EPS by 4c, Slight Beat on Revenues

Five Star Quality Care (NASDAQ: FVE) reported Q1 EPS of ($0.16), $0.04 worse than the analyst estimate of ($0.12). Revenue for the quarter came in at $345.52 million versus the consensus estimate of $344.83 million.

Financial Results for the quarter ended March 31, 2018:

• Senior living revenue for the first quarter of 2018 decreased 2.8% to $274.5 million from $282.4 million for the same period in 2017, primarily due to the sale of two senior living communities during the fourth quarter of 2017 and two communities during the first quarter of 2018 pursuant to a transaction agreement Five Star entered with Senior Housing Properties Trust (Nasdaq: SNH), or the 2017 Transaction Agreement, and a decrease in occupancy, partially offset by an increase in average monthly rates to residents who pay privately for services. Management fee revenue for the first quarter of 2018 increased 1.7% to $3.6 million, primarily due to an increase in the number of managed communities compared to the same period in 2017.
• Net loss for the first quarter of 2018 was $7.9 million, or $0.16 per diluted share, compared to net loss of $6.8 million, or $0.14 per diluted share, for the same period in 2017. Net loss for the first quarter of 2018 included a gain on sale of senior living communities of $5.7 million, or $0.11 per diluted share, in connection with the sale of two senior living communities in January and February 2018 pursuant to the 2017 Transaction Agreement.
• Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the first quarter of 2018 was $1.7 million compared to $3.6 million for the same period in 2017. EBITDA excluding certain items noted in the supplemental information provided below, or Adjusted EBITDA, was $(3.7) million and $3.8 million for the first quarters of 2018 and 2017, respectively. A reconciliation of net loss determined in accordance with U.S. generally accepted accounting principles, or GAAP, to EBITDA and Adjusted EBITDA for the quarters ended March 31, 2018 and 2017 appears later in this press release.

For earnings history and earnings-related data on Five Star Quality Care (FVE) click here.

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