New Senior Investment Group (SNR) Misses Q1 EPS by 2c, Revenues Miss

New Senior Investment Group (NYSE: SNR) reported Q1 EPS of ($0.14), $0.02 worse than the analyst estimate of ($0.12). Revenue for the quarter came in at $86.59 million versus the consensus estimate of $99.68 million.

FIRST QUARTER 2020 & RECENT BUSINESS HIGHLIGHTS

• Delivered strong first quarter 2020 same store NOI and AFFO per share results, consistent with expectations at the start of the year
• Completed the AL/MC Transaction in February 2020, for a gross sale price of $385 million
• In conjunction with the AL/MC Transaction, significantly strengthened the balance sheet through the following activities:
  • Repaid approximately $360 million of debt with proceeds from the AL/MC Transaction
  • Completed nearly $400 million of debt refinancing activity, resulting in lower debt costs and an extension of the Company’s average debt maturity by two years
• In light of uncertainty caused by the COVID-19 pandemic, the Company is withdrawing its previously issued 2020 guidance
• The Company declared a dividend of $0.065 per common share for the quarter ended March 31, 2020, a 50% reduction from its prior dividend level, in light of the uncertainty
• The Company is providing an update below on the impact of COVID-19

Susan Givens, Chief Executive Officer of the Company commented, “Following a very strong 2019, our solid results in the first quarter of 2020, which were consistent with our initial expectations at the start of the year, are clearly overshadowed by current events and the disruption from the COVID-19 pandemic. This crisis has severely impacted the world, with at-risk populations, including the seniors that our communities serve, being disproportionately affected. The health and safety of our residents and our operators' associates around the country remains our top priority. We and our operators continue to be intensely focused on protecting and supporting our communities and implementing enhanced protocols. Along those lines, we worked closely with our operators early on and made the decision to restrict community access in an effort to protect residents and associates. As a result, we had fewer move-ins in the second half of March and April and higher expenses as our operators have worked to limit the spread of the virus. We acknowledge these actions will have a near-term financial impact on the Company.

Ms. Givens continued, “Based upon how quickly the pandemic has evolved over the past couple of months, it is difficult to predict the length or shape of the recovery at this point. For that reason, we took the difficult, but prudent, step to reduce the quarterly dividend. We expect that the Company’s Board of Directors will continue to re-evaluate the dividend on a quarterly basis. Further, we have also decided to withdraw our previously provided 2020 guidance. We remain committed to transparency and intend to provide further updates regarding the impacts of COVID-19 on our financial results as we move forward. We strongly believe that the value of senior housing, and independent living in particular, remains intact. We continue to have confidence in the favorable demographic trends in the industry and the long-term value of our portfolio and our business, and we believe that the actions that we have taken will ultimately strengthen our position as we move forward.

“We would like to thank and commend all of our operators and the staff at our communities, who continue to serve our residents with exceptional care and purpose. These are extraordinary times to be serving seniors, and we appreciate all that they are doing on behalf of our New Senior communities,” Givens concluded.

For earnings history and earnings-related data on New Senior Investment Group (SNR) click here.

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