Five Star Quality Care (FVE) Misses Q2 EPS by 27c, Revenues Miss

Five Star Quality Care (NASDAQ: FVE) reported Q2 EPS of ($0.42), $0.27 worse than the analyst estimate of ($0.15). Revenue for the quarter came in at $343.1 million versus the consensus estimate of $346.22 million.

• Senior living revenue for the second quarter of 2018 decreased 3.5% to $270.9 million from $280.9 million for the same period in 2017, primarily due to Five Star's sale of four senior living communities in December 2017, January 2018 and February 2018 to Senior Housing Properties Trust (SNH) pursuant to a transaction agreement between Five Star and SNH, or the 2017 Transaction Agreement, and a decrease in occupancy. Management fee revenue for the second quarter of 2018 increased 6.3% to $3.8 million, primarily due to an increase in the number of managed communities compared to the same period in 2017.
• Net loss for the second quarter of 2018 was $20.9 million, or $0.42 per diluted share, compared to net loss of $6.5 million, or $0.13 per diluted share, for the same period in 2017. Net loss for the second quarter of 2018 included a gain on sale of senior living communities of $1.5 million, or $0.03 per diluted share, primarily relating to Five Star’s sale of two senior living communities in June 2018 pursuant to the 2017 Transaction Agreement. Net loss for the second quarter of 2018 included a benefit for income taxes of $1.4 million, or $0.03 per diluted share, resulting primarily from Five Star's monetization of alternative minimum tax credits during the second quarter of 2017.
• Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the second quarter of 2018 was $(11.3) million compared to $2.8 million for the same period in 2017. EBITDA excluding certain items noted in the supplemental information provided below, or Adjusted EBITDA, was $(12.2) million and $3.0 million for the second 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 June 30, 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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