Five Star Quality Care (FVE) Reports In-Line Q4 EPS

Five Star Quality Care (NASDAQ: FVE) reported Q4 EPS of ($0.11), in-line with the analyst estimate of ($0.11). Revenue for the quarter came in at $346.25 million versus the consensus estimate of $340.74 million.

• Senior living revenue for the fourth quarter of 2016 decreased 0.8% to $279.0 million from $281.2 million for 2015. The decline in senior living revenue is a result of decreases in occupancy, partially offset by an increase in average monthly rates to residents who pay privately for services. Management fee revenue for the fourth quarter of 2016 increased 21.7% to $3.4 million from $2.8 million for 2015. Growth in management fees was primarily due to the previously disclosed modifications to Five Star\'s management and pooling arrangements with Senior Housing Properties Trust, or SNH, that became effective on July 1, 2016 and to an increase in the number of Five Star\'s managed communities compared to 2015.
• Loss from continuing operations for the fourth quarter of 2016 was $6.0 million, or $0.12 per diluted share, compared to loss from continuing operations of $6.3 million, or $0.13 per diluted share, for 2015. Loss from continuing operations for the fourth quarter of 2016 included benefits from income taxes of $0.5 million, or $0.01 per diluted share, related to a reduction of previously accrued estimated state tax expense. Loss from continuing operations for the fourth quarter of 2015 included the previously disclosed litigation settlement charge of $4.2 million, or $0.09 per diluted share, and employee termination costs of $0.9 million, or $0.02 per diluted share.
• Net loss for the fourth quarter of 2016 was $5.6 million, or $0.11 per diluted share, compared to net loss of $6.4 million, or $0.13 per diluted share, for 2015. Net loss for the fourth quarter of 2016 included income from discontinued operations of $0.3 million. As of December 31, 2016, we have no senior living communities classified as held for sale.
• Earnings from continuing operations before interest, taxes, depreciation and amortization, or EBITDA, for the fourth quarter of 2016 was $3.5 million compared to $4.2 million for 2015. EBITDA, excluding certain items noted in the supplemental information provided below, or Adjusted EBITDA, was $3.5 million and $9.5 million for the fourth quarters of 2016 and 2015, respectively. A reconciliation of loss from continuing operations determined in accordance with U.S. generally accepted accounting principles, or GAAP, to EBITDA and Adjusted EBITDA for the quarters ended December 31, 2016 and 2015 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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