AlerisLife Inc. (Nasdaq: ALR) today announced its financial results for the three months ended March 31, 2022.
First Quarter Summary of Financial Results:
- Net loss for the first quarter of 2022 was $9.7 million, or $0.31 per diluted share, compared to net income of $3.3 million, or $0.10 per diluted share, for the first quarter of 2021.
- Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the first quarter of 2022 was $(5.5) million compared to $6.8 million for the first quarter of 2021. Adjusted EBITDA, as described further below, was $(5.3) million for the first quarter of 2022 compared to $6.9 million for the first quarter of 2021.
- EBITDA and Adjusted EBITDA are non-GAAP financial measures. Reconciliations of net (loss) income determined in accordance with U.S. generally accepted accounting principles, or GAAP, to EBITDA and Adjusted EBITDA for the first quarter of 2022 and 2021 are presented later in this press release.
- RevPAR for the comparable managed communities for the first quarter of 2022 was $3,027 compared to $2,946 for the first quarter of 2021, an increase of 2.7%. Compared to the sequential quarter, RevPAR for the comparable managed communities increased 4.4%. RevPAR for the comparable owned communities for the first quarter of 2022 was $2,443 compared to $2,421 for the first quarter of 2021, an increase of 0.9%. Compared to the sequential quarter, RevPAR for the comparable owned communities increased 4.0%.
Substantially all of ALR's business is conducted by its two segments: (i) its residential segment through its Five Star Senior Living, or Five Star, brand and (ii) its lifestyle services segment primarily through its brands Ageility Physical Therapy Solutions and Ageility Fitness, or collectively Ageility, and Windsong Home Health. The following tables present data on the owned and managed senior living communities that ALR operates through its Five Star brand, including comparable community data, as well as data on the rehabilitation clinics that ALR operates through its Ageility brand, including comparable outpatient clinic data.
Summary of Operational Results |
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|
|
As of and for the Three Months Ended |
||||||||||
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
||||||
Residential Segment: |
|
|
|
|
|
|
||||||
Five Star: |
|
|
|
|
|
|
||||||
Number of living units (end of period) |
|
|
|
|
|
|
||||||
Independent living |
|
|
10,423 |
|
|
|
10,423 |
|
|
|
10,979 |
|
Assisted living |
|
|
7,715 |
|
|
|
7,764 |
|
|
|
12,109 |
|
Memory care |
|
|
1,861 |
|
|
|
1,872 |
|
|
|
3,220 |
|
Skilled nursing |
|
|
— |
|
|
|
46 |
|
|
|
2,957 |
|
Total living units |
|
|
19,999 |
|
|
|
20,105 |
|
|
|
29,265 |
|
|
|
|
|
|
|
|
||||||
RevPAR |
|
|
|
|
|
|
||||||
Owned (1) |
|
$ |
2,443 |
|
|
$ |
2,349 |
|
|
$ |
2,479 |
|
Managed |
|
$ |
3,027 |
|
|
$ |
2,919 |
|
|
$ |
3,213 |
|
Quarter End Occupancy |
|
|
|
|
|
|
||||||
Owned and Leased (1) |
|
|
72.1 |
% |
|
|
72.7 |
% |
|
|
68.2 |
% |
Managed |
|
|
74.6 |
% |
|
|
74.8 |
% |
|
|
70.2 |
% |
|
|
|
|
|
|
|
||||||
Comparable Communities (2): |
|
|
|
|
|
|
||||||
RevPAR |
|
|
|
|
|
|
||||||
Owned |
|
$ |
2,443 |
|
|
$ |
2,349 |
|
|
$ |
2,421 |
|
Managed |
|
$ |
3,027 |
|
|
$ |
2,900 |
|
|
$ |
2,946 |
|
Quarter End Occupancy |
|
|
|
|
|
|
||||||
Owned |
|
|
72.1 |
% |
|
|
72.7 |
% |
|
|
69.0 |
% |
Managed |
|
|
74.6 |
% |
|
|
75.2 |
% |
|
|
73.2 |
% |
Operating Margin (3) |
|
|
|
|
|
|
||||||
Owned |
|
|
(24.2 |
) % |
|
|
(25.2 |
) % |
|
|
(12.5 |
) % |
Managed |
|
|
5.9 |
% |
|
|
3.5 |
% |
|
|
8.8 |
% |
|
|
As of and for the Three Months Ended |
|||||||
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|||
Lifestyle Services Segment: |
|
|
|
|
|
|
|||
Ageility: |
|
|
|
|
|
|
|||
Number of Clinics |
|
|
|
|
|
|
|||
Inpatient (4) |
|
10 |
|
|
10 |
|
|
37 |
|
Outpatient |
|
201 |
|
|
205 |
|
|
215 |
|
Number of Visits (in thousands) |
|
|
|
|
|
|
|||
Inpatient (4) |
|
22 |
|
|
21 |
|
|
72 |
|
Outpatient |
|
144 |
|
|
148 |
|
|
149 |
|
|
|
|
|
|
|
|
|||
Comparable Outpatient Clinics (5): |
|
|
|
|
|
|
|||
Caseload as a % of census (6) |
|
23.9 |
% |
|
24.0 |
% |
|
27.0 |
% |
Operating margin (3) |
|
2.7 |
% |
|
9.4 |
% |
|
14.9 |
% |
___________________________
(1) |
For the three months ended March 31, 2021, includes four leased communities with approximately 200 living units previously leased from HealthPeak Properties, Inc., or HealthPeak. The lease with HealthPeak was terminated on September 30, 2021. |
|
(2) |
Comparable communities includes financial data for 20 owned senior living communities and 120 managed senior living communities that ALR continuously owned or managed and operated through its Five Star brand since January 1, 2021, exclusive of 1,532 skilled nursing facility, or SNF, living units that have been closed and are in the process of being repositioned in 27 Continuing Care Retirement Communities, or CCRCs, that ALR will continue to manage. |
|
(3) |
Operating margin is defined as operating revenue less operating expenses divided by operating revenue in each case for the business segment. For the Residential segment, it is inclusive of 1,532 SNF living units, which have been closed and are in the process of being repositioned, in 27 former CCRCs that ALR continues to manage. It is exclusive of Provider Relief Funds from the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, and other government grants recognized as other operating income. In addition, it excludes restructuring expenses for the three months ended December 31, 2021 of $0.3 million for the comparable managed communities. |
|
(4) |
Subsequent to March 31, 2021, ALR closed 27 inpatient rehabilitation clinics. |
|
(5) |
Comparable outpatient clinics includes financial data for 185 outpatient rehabilitation clinics that ALR continuously operated since January 1, 2021. |
|
(6) |
Caseload as a percentage of census represents the number of Ageility customers divided by total census at the senior living communities where the Ageility outpatient rehabilitation clinics are located. |
Term Loan
On January 27, 2022, ALR entered into a credit and security agreement, or the Credit Agreement, for a $95.0 million senior secured term loan, or the Loan, $63.0 million of which was funded upon the effectiveness of the Credit Agreement, including approximately $3.2 million in closing costs. The remaining proceeds include $12.0 million for capital improvements at ALR owned communities and an opportunity for another $20.0 million that is available to us upon achieving certain financial targets. The maturity date of the Loan is January 27, 2025. Subject to the payment of an extension fee and meeting certain other conditions, ALR may elect to extend the stated maturity date of the Loan for two, one-year periods. ALR is required to pay interest on outstanding amounts at an annual base rate of the Secured Overnight Financing Rate, or SOFR, plus a term SOFR adjustment of 11 basis points (subject to a minimum base rate of 50 basis points), plus 450 basis points.
Summary of Communities and Outpatient Rehabilitation Clinics
Presented below is a summary of the communities, units, average occupancy, quarter end occupancy, revenues and residential management fees for the Five Star senior living communities ALR manages for DHC, as of and for the three months ended March 31, 2022 (dollars in thousands):
|
|
Total |
||||||||||||||
|
|
Communities |
|
Units |
|
Average
|
|
Quarter End
|
|
Community
|
|
Management
|
||||
Independent and assisted living communities |
|
120 |
|
17,899 |
|
74.1 |
% |
|
74.6 |
% |
|
$ |
162,552 |
|
$ |
8,932 |
Total |
|
120 |
|
17,899 |
|
74.1 |
% |
|
74.6 |
% |
|
$ |
162,552 |
|
$ |
8,932 |
_______________________________________
(1) |
Managed senior living communities' revenues do not represent ALR's revenues, and are included to provide supplemental information regarding the operating results of the Five Star senior living communities from which ALR earns residential management fees. |
Presented below is a summary of the Ageility outpatient rehabilitation clinics ALR operated as of and for the three months ended March 31, 2022 (dollars in thousands):
|
As of and for the
|
||||||||||
|
|
Number
|
|
Total
|
|
Caseload
|
|
EBITDA
|
|||
Outpatient Clinics in Five Star Managed Communities, Owned by DHC |
|
91 |
|
$ |
7,300 |
|
25.5 |
% |
|
4.6 |
% |
Outpatient Clinics at ALR Owned Communities |
|
15 |
|
|
761 |
|
27.9 |
% |
|
2.5 |
% |
Outpatient Clinics at Other Communities (2) |
|
95 |
|
|
3,985 |
|
21.6 |
% |
|
0.6 |
% |
Total Outpatient Clinics |
|
201 |
|
$ |
12,046 |
|
23.8 |
% |
|
3.2 |
% |
_______________________________________
(1) |
Excludes revenue of $1,916 earned during the three months ended March 31, 2022 for ten Ageility inpatient rehabilitation clinics. |
|
(2) |
Other communities includes outpatient rehabilitation clinics at senior living communities not owned or managed by ALR. |
|
(3) |
Total Ageility revenue excludes home health care services, which are part of the lifestyle services segment. |
|
(4) |
EBITDA Margin is a non-GAAP financial measure and represents rehabilitation clinics that are in service as of March 31, 2022. A reconciliation of EBITDA Margin is presented later in this press release. |
|
(5) |
Caseload as a percentage of census represents the number of Ageility customers divided by total census at the senior living communities where the Ageility outpatient rehabilitation clinics are located. |
Conference Call Information:
At 1:00 p.m. Eastern Time on May 4, 2022, ALR's Interim President and Chief Executive Officer and Chief Financial Officer and Treasurer, Jeffrey Leer, will host a conference call to discuss ALR's first quarter 2022 financial results.
The conference call telephone number is (877) 329-4332. Participants calling from outside the United States and Canada should dial (412) 317-5436. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 11:59 p.m. Eastern Time on May 11, 2022. To hear the replay, dial (412) 317-0088. The replay pass code is 6043437.
A live audio webcast of the conference call will also be available in a listen-only mode on ALR’s website, www.alerislife.com. Participants wanting to access the webcast should visit ALR’s website about five minutes before the call. The archived webcast will be available for replay on ALR’s website following the call for about a week. The transcription, recording and retransmission in any way of ALR's first quarter ended March 31, 2022 financial results conference call are strictly prohibited without the prior written consent of ALR. ALR’s website is not incorporated as part of this press release.
About AlerisLife:
AlerisLife enriches and inspires the lives of its older adult customers across the United States by delivering an exceptional and enhanced resident experience to senior living and active adult residents, while also offering lifestyle services to the younger choice-based consumer. The Company is headquartered in Newton, Massachusetts. For more information, visit www.alerislife.com.
AlerisLife Inc. |
||||||||
Condensed Consolidated Statements of Operations |
||||||||
(amounts in thousands, except per share amounts) |
||||||||
(unaudited) |
||||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
REVENUES |
|
|
|
|
||||
Lifestyle services |
|
$ |
14,139 |
|
|
$ |
19,553 |
|
Residential |
|
|
15,386 |
|
|
|
17,057 |
|
Residential management fees |
|
|
8,932 |
|
|
|
13,850 |
|
Total management and operating revenues |
|
|
38,457 |
|
|
|
50,460 |
|
Reimbursed community-level costs incurred on behalf of managed communities |
|
|
130,936 |
|
|
|
213,160 |
|
Other reimbursed expenses |
|
|
3,750 |
|
|
|
5,480 |
|
Total revenues |
|
|
173,143 |
|
|
|
269,100 |
|
|
|
|
|
|
||||
Other operating income |
|
|
42 |
|
|
|
7,793 |
|
|
|
|
|
|
||||
OPERATING EXPENSES |
|
|
|
|
||||
Lifestyle services expenses |
|
|
13,221 |
|
|
|
16,210 |
|
Residential wages and benefits |
|
|
8,627 |
|
|
|
12,013 |
|
Other residential operating expenses |
|
|
7,349 |
|
|
|
6,266 |
|
Community-level costs incurred on behalf of managed communities |
|
|
130,936 |
|
|
|
213,160 |
|
General and administrative |
|
|
18,192 |
|
|
|
22,641 |
|
Depreciation and amortization |
|
|
3,163 |
|
|
|
2,940 |
|
Total operating expenses |
|
|
181,488 |
|
|
|
273,230 |
|
|
|
|
|
|
||||
Operating (loss) income |
|
|
(8,303 |
) |
|
|
3,663 |
|
|
|
|
|
|
||||
Interest, dividend and other income |
|
|
80 |
|
|
|
84 |
|
Interest and other expense |
|
|
(1,032 |
) |
|
|
(463 |
) |
Unrealized (loss) gain on equity investments |
|
|
(632 |
) |
|
|
135 |
|
Realized (loss) gain on sale of debt and equity investments |
|
|
(45 |
) |
|
|
96 |
|
Gain on termination of lease |
|
|
279 |
|
|
|
— |
|
(Loss) income before income taxes |
|
|
(9,653 |
) |
|
|
3,515 |
|
Provision for income taxes |
|
|
(77 |
) |
|
|
(200 |
) |
Net (loss) income |
|
$ |
(9,730 |
) |
|
$ |
3,315 |
|
|
|
|
|
|
||||
Weighted average shares outstanding—basic |
|
|
31,787 |
|
|
|
31,530 |
|
Weighted average shares outstanding—diluted |
|
|
31,787 |
|
|
|
31,662 |
|
|
|
|
|
|
||||
Net (loss) income per share—basic |
|
$ |
(0.31 |
) |
|
$ |
0.11 |
|
Net (loss) income per share—diluted |
|
$ |
(0.31 |
) |
|
$ |
0.10 |
|
AlerisLife Inc.
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)
(unaudited)
Non-GAAP financial measures are financial measures that are not determined in accordance with GAAP. ALR believes the non-GAAP financial measures presented in the tables below are meaningful supplemental disclosures because they may help investors better understand changes in ALR’s operating results and its ability to meet financial obligations or service debt, make capital expenditures and expand its business. These non-GAAP financial measures may also help investors make comparisons between ALR and other companies on both a GAAP and non-GAAP basis. ALR believes that EBITDA, Adjusted EBITDA and EBITDA Margin are meaningful financial measures that may help investors better understand its financial performance, including by allowing investors to compare ALR's performance between periods and to the performance of other companies. ALR management uses EBITDA, Adjusted EBITDA and EBITDA Margin to evaluate ALR’s financial performance and compare ALR’s performance over time and to the performance of other companies. ALR calculates EBITDA, Adjusted EBITDA and EBITDA Margin as shown below. These measures should not be considered as alternatives to net income (loss) or operating income (loss), as indicators of ALR’s operating performance or as measures of ALR’s liquidity. Also, EBITDA, Adjusted EBITDA and EBITDA Margin as presented may not be comparable to similarly titled amounts calculated by other companies.
ALR believes that net income (loss) is the most directly comparable financial measure, determined according to GAAP, to ALR’s presentation of EBITDA and Adjusted EBITDA. The following table presents the reconciliation of these non-GAAP financial measures to net income (loss) for the three months ended March 31, 2022 and 2021.
|
|
Three Months Ended March 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
Net (loss) income |
|
$ |
(9,730 |
) |
|
$ |
3,315 |
|
Add (less): |
|
|
|
|
||||
Interest and other expense |
|
|
1,032 |
|
|
|
463 |
|
Interest, dividend and other income |
|
|
(80 |
) |
|
|
(84 |
) |
Provision for income taxes |
|
|
77 |
|
|
|
200 |
|
Depreciation and amortization |
|
|
3,163 |
|
|
|
2,940 |
|
EBITDA |
|
|
(5,538 |
) |
|
|
6,834 |
|
Add (less): |
|
|
|
|
||||
Unrealized loss (gain) on equity investments |
|
|
632 |
|
|
|
(135 |
) |
Gain on termination of leases |
|
|
(279 |
) |
|
|
— |
|
Net restructuring expenses (1) |
|
|
(154 |
) |
|
|
250 |
|
Adjusted EBITDA |
|
$ |
(5,339 |
) |
|
$ |
6,949 |
|
_______________________________________
(1) |
Includes costs incurred related to the repositioning of ALR's residential service offerings and the restructuring for the three months ended March 31, 2022 and 2021, respectively, and are included in general and administrative expenses in the condensed consolidated statements of operations. |
AlerisLife Inc.
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)
(unaudited)
ALR believes that net income (loss) is the most directly comparable financial measure, determined according to GAAP, to ALR’s presentation of EBITDA. The following table presents the reconciliation of these non-GAAP financial measures to net income for the three months ended March 31, 2022 for Ageility.
|
|
Three Months Ended March 31, 2022 |
||
|
|
Total |
||
Lifestyle services: |
|
|
||
Revenue |
|
$ |
14,139 |
|
Less: Home health services |
|
|
177 |
|
Less: Inpatient rehabilitation (1) |
|
|
1,916 |
|
Total Ageility revenue (2) |
|
$ |
12,046 |
|
|
|
|
||
Ageility: |
|
|
||
Net Income |
|
$ |
171 |
|
Add: Depreciation |
|
|
97 |
|
EBITDA |
|
$ |
268 |
|
EBITDA Margin (3) |
|
|
2.2 |
% |
_______________________________________
(1) |
Revenue for ten Ageility inpatient rehabilitation clinics that currently remain operated by Ageility. |
|
(2) |
Total Ageility revenue includes revenue from outpatient rehabilitation clinics and fitness. |
|
(3) |
EBITDA Margin is defined by ALR as EBITDA for the period divided by total revenue for the period. |
AlerisLife Inc. |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(dollars in thousands, except per share amounts) |
||||||||
(unaudited) |
||||||||
|
|
March 31, |
|
December 31, |
||||
|
|
|
2022 |
|
|
|
2021 |
|
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
88,054 |
|
|
$ |
66,987 |
|
Restricted cash and cash equivalents |
|
|
25,129 |
|
|
|
24,970 |
|
Accounts receivable, net |
|
|
9,414 |
|
|
|
9,244 |
|
Due from related person |
|
|
48,717 |
|
|
|
41,664 |
|
Debt and equity investments, of which $7,062 and $7,609 are restricted, respectively |
|
|
17,835 |
|
|
|
19,535 |
|
Prepaid expenses and other current assets |
|
|
22,479 |
|
|
|
24,433 |
|
Total current assets |
|
|
211,628 |
|
|
|
186,833 |
|
|
|
|
|
|
||||
Property and equipment, net |
|
|
160,170 |
|
|
|
159,843 |
|
Operating lease right-of-use assets |
|
|
6,123 |
|
|
|
9,197 |
|
Finance lease right-of-use assets |
|
|
3,236 |
|
|
|
3,467 |
|
Restricted cash and cash equivalents |
|
|
995 |
|
|
|
982 |
|
Restricted debt and equity investments |
|
|
3,635 |
|
|
|
3,873 |
|
Other long-term assets |
|
|
10,683 |
|
|
|
12,082 |
|
Total assets |
|
$ |
396,470 |
|
|
$ |
376,277 |
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
11,868 |
|
|
$ |
37,516 |
|
Accrued expenses and other current liabilities |
|
|
36,830 |
|
|
|
31,488 |
|
Accrued compensation and benefits |
|
|
31,087 |
|
|
|
34,295 |
|
Accrued self-insurance obligations |
|
|
28,950 |
|
|
|
31,739 |
|
Operating lease liabilities |
|
|
476 |
|
|
|
699 |
|
Finance lease liabilities |
|
|
889 |
|
|
|
872 |
|
Due to related persons |
|
|
4,332 |
|
|
|
3,879 |
|
Current portion of debt |
|
|
422 |
|
|
|
419 |
|
Total current liabilities |
|
|
114,854 |
|
|
|
140,907 |
|
|
|
|
|
|
||||
Long-term liabilities: |
|
|
|
|
||||
Accrued self-insurance obligations |
|
|
34,050 |
|
|
|
34,744 |
|
Operating lease liabilities |
|
|
6,190 |
|
|
|
9,366 |
|
Finance lease liabilities |
|
|
2,821 |
|
|
|
3,050 |
|
Long-term debt |
|
|
66,770 |
|
|
|
6,364 |
|
Other long-term liabilities |
|
|
247 |
|
|
|
256 |
|
Total long-term liabilities |
|
|
110,078 |
|
|
|
53,780 |
|
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
|
||||
|
|
|
|
|
||||
Shareholders’ equity: |
|
|
|
|
||||
Common stock, par value $0.01: 75,000,000 shares authorized, 32,550,895 and 32,662,649 shares issued and outstanding, respectively |
|
|
326 |
|
|
|
327 |
|
Additional paid-in-capital |
|
|
461,468 |
|
|
|
461,298 |
|
Accumulated deficit |
|
|
(290,794 |
) |
|
|
(281,064 |
) |
Accumulated other comprehensive income |
|
|
538 |
|
|
|
1,029 |
|
Total shareholders’ equity |
|
|
171,538 |
|
|
|
181,590 |
|
Total liabilities and shareholders' equity |
|
$ |
396,470 |
|
|
$
|
376,277
|
|
AlerisLife Inc. |
||||||||||||||||||||
Residential Segment Data |
||||||||||||||||||||
(dollars in thousands, except per unit amounts) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Owned and Leased Senior Living Communities |
|
|
|
|
|
|
|
|
|
|
||||||||||
Independent and assisted living communities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
$ |
15,386 |
|
|
$ |
14,883 |
|
|
$ |
16,320 |
|
|
$ |
16,378 |
|
|
$ |
17,057 |
|
Other operating income (1) |
|
|
42 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
7,774 |
|
Operating expenses |
|
|
19,371 |
|
|
|
18,574 |
|
|
|
17,895 |
|
|
|
21,012 |
|
|
|
20,414 |
|
Operating (loss) income |
|
|
(3,943 |
) |
|
|
(3,691 |
) |
|
|
(1,575 |
) |
|
|
(4,632 |
) |
|
|
4,417 |
|
Operating margin |
|
|
(25.6 |
) % |
|
|
(24.8 |
) % |
|
|
(9.7 |
) % |
|
|
(28.3 |
) % |
|
|
17.8 |
% |
Number of communities (end of period) |
|
|
20 |
|
|
|
20 |
|
|
|
20 |
|
|
|
24 |
|
|
|
24 |
|
Number of living units (end of period) (2) |
|
|
2,100 |
|
|
|
2,100 |
|
|
|
2,099 |
|
|
|
2,251 |
|
|
|
2,302 |
|
Average occupancy |
|
|
71.0 |
% |
|
|
72.0 |
% |
|
|
69.9 |
% |
|
|
68.1 |
% |
|
|
68.3 |
% |
Quarter end occupancy |
|
|
72.1 |
% |
|
|
72.7 |
% |
|
|
72.9 |
% |
|
|
69.7 |
% |
|
|
68.2 |
% |
RevPAR (3) |
|
$ |
2,443 |
|
|
$ |
2,349 |
|
|
$ |
2,411 |
|
|
$ |
2,425 |
|
|
$ |
2,479 |
|
RevPOR (4) |
|
$ |
3,444 |
|
|
$ |
3,192 |
|
|
$ |
3,375 |
|
|
$ |
3,524 |
|
|
$ |
3,630 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Managed Senior Living Communities (5): |
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential management fees |
|
$ |
8,932 |
|
|
$ |
9,482 |
|
|
$ |
11,220 |
|
|
$ |
12,927 |
|
|
$ |
13,850 |
|
Community-level revenues |
|
|
162,552 |
|
|
|
161,907 |
|
|
|
210,160 |
|
|
|
243,947 |
|
|
|
259,966 |
|
Other operating income (1) |
|
|
199 |
|
|
|
602 |
|
|
|
786 |
|
|
|
16,564 |
|
|
|
1,617 |
|
Community-level expenses (6) |
|
|
152,892 |
|
|
|
159,329 |
|
|
|
203,756 |
|
|
|
237,461 |
|
|
|
247,171 |
|
Community operating income |
|
|
9,859 |
|
|
|
3,180 |
|
|
|
7,190 |
|
|
|
23,050 |
|
|
|
14,412 |
|
Community operating margin |
|
|
6.1 |
% |
|
|
2.0 |
% |
|
|
3.4 |
% |
|
|
8.8 |
% |
|
|
5.5 |
% |
Number of communities (end of period) |
|
|
120 |
|
|
|
121 |
|
|
|
159 |
|
|
|
228 |
|
|
|
228 |
|
Number of living units (end of period) (2) |
|
|
17,899 |
|
|
|
18,005 |
|
|
|
20,669 |
|
|
|
25,482 |
|
|
|
26,963 |
|
Average occupancy |
|
|
74.1 |
% |
|
|
73.7 |
% |
|
|
72.2 |
% |
|
|
69.5 |
% |
|
|
69.5 |
% |
Quarter end occupancy |
|
|
74.6 |
% |
|
|
74.8 |
% |
|
|
73.8 |
% |
|
|
71.3 |
% |
|
|
70.2 |
% |
RevPAR (3) |
|
$ |
3,027 |
|
|
$ |
2,919 |
|
|
$ |
3,046 |
|
|
$ |
3,086 |
|
|
$ |
3,213 |
|
RevPOR (4) |
|
$ |
4,084 |
|
|
$ |
3,875 |
|
|
$ |
4,129 |
|
|
$ |
4,389 |
|
|
$ |
4,623 |
|
_______________________________________
(1) |
Other operating income represents income recognized for funds received under the CARES Act and other government grants. |
|
(2) |
Includes living units categorized as in service. As a result, the number of living units may vary from period to period for reasons other than the acquisition or disposition of senior living communities. |
|
(3) |
RevPAR is defined by ALR as resident fee revenues for the corresponding portfolio for the period divided by the average number of available units for the period, divided by the number of months in the period. Data for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021 exclude income received by senior living communities under the CARES Act and other government grants. |
|
(4) |
RevPOR is defined by ALR as resident fee revenues for the corresponding portfolio for the period divided by the average number of occupied units for the period, divided by the number of months in the period. Data for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021 exclude income received by senior living communities under the CARES Act and other government grants. |
|
(5) |
Managed senior living communities, other than ALR's residential management fees, represents financial data of senior living communities managed for DHC and does not represent financial results of ALR. Managed senior living communities' data is included to provide supplemental information regarding the operating results of the senior living communities from which ALR earns residential management fees. |
|
(6) |
The three months ended December 31, 2021, September 30, 2021 and June 30, 2021 includes restructuring expense of $966, $813 and $11,531, respectively. |
AlerisLife Inc. |
||||||||||||||||||||
Comparable Communities Residential Segment Data |
||||||||||||||||||||
(dollars in thousands, except per unit amounts) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
Owned Senior Living Communities (2): |
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of communities (end of period) |
|
|
20 |
|
|
|
20 |
|
|
|
20 |
|
|
|
20 |
|
|
|
20 |
|
Number of living units (end of period) (1) |
|
|
2,100 |
|
|
|
2,100 |
|
|
|
2,099 |
|
|
|
2,099 |
|
|
|
2,099 |
|
Average occupancy |
|
|
71.0 |
% |
|
|
72.0 |
% |
|
|
70.4 |
% |
|
|
68.3 |
% |
|
|
68.9 |
% |
Quarter end occupancy |
|
|
72.1 |
% |
|
|
72.7 |
% |
|
|
72.9 |
% |
|
|
70.1 |
% |
|
|
69.0 |
% |
RevPAR (3) |
|
$ |
2,443 |
|
|
$ |
2,349 |
|
|
$ |
2,354 |
|
|
$ |
2,357 |
|
|
$ |
2,421 |
|
RevPOR (4) |
|
$ |
3,444 |
|
|
$ |
3,192 |
|
|
$ |
3,270 |
|
|
$ |
3,413 |
|
|
$ |
3,515 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Managed Senior Living Communities (2)(5): |
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of communities (end of period) |
|
|
120 |
|
|
|
120 |
|
|
|
120 |
|
|
|
120 |
|
|
|
120 |
|
Number of living units (end of period) (1) |
|
|
17,899 |
|
|
|
17,899 |
|
|
|
17,899 |
|
|
|
17,898 |
|
|
|
17,906 |
|
Average occupancy |
|
|
74.1 |
% |
|
|
74.1 |
% |
|
|
73.4 |
% |
|
|
72.9 |
% |
|
|
72.7 |
% |
Quarter end occupancy |
|
|
74.6 |
% |
|
|
75.2 |
% |
|
|
74.6 |
% |
|
|
73.3 |
% |
|
|
73.2 |
% |
RevPAR (3) |
|
$ |
3,027 |
|
|
$ |
2,900 |
|
|
$ |
2,941 |
|
|
$ |
2,961 |
|
|
$ |
2,946 |
|
RevPOR (4) |
|
$ |
4,084 |
|
|
$ |
3,831 |
|
|
$ |
3,922 |
|
|
$ |
4,018 |
|
|
$ |
4,051 |
|
_______________________________________
(1) |
Includes living units categorized as in service. As a result, the number of living units may vary from period to period for reasons other than the acquisition or disposition of senior living communities. |
|
(2) |
Includes data for Five Star senior living communities that ALR has continuously owned or managed since January 1, 2021. The summary of operations for comparable communities excludes 1,532 SNF living units that have been closed in 27 CCRCs which are in the process of being repositioned and which ALR will continue to manage for DHC. |
|
(3) |
RevPAR is defined by ALR as resident fee revenues for the corresponding portfolio for the period divided by the average number of available units for the period, divided by the number of months in the period. Data for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021 exclude income received by senior living communities under the CARES Act and other government grants. |
|
(4) |
RevPOR is defined by ALR as resident fee revenues for the corresponding portfolio for the period divided by the average number of occupied units for the period, divided by the number of months in the period. Data for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021 exclude income received by senior living communities under the CARES Act and other government grants. |
|
(5) |
Residential segment data for comparable managed senior living communities represents financial data of senior living communities managed for DHC and does not represent financial results of ALR. Managed senior living communities' data is included to provide supplemental information regarding the operating results of the senior living communities from which ALR earns residential management fees. |
AlerisLife Inc. |
||||||||||||||||||||
Lifestyle Services Segment Data |
||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
Lifestyle Services (1): |
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
$ |
14,139 |
|
|
$ |
15,626 |
|
|
$ |
15,382 |
|
|
$ |
17,453 |
|
|
$ |
19,553 |
|
Outpatient |
|
|
11,165 |
|
|
|
12,848 |
|
|
|
12,747 |
|
|
|
13,688 |
|
|
|
13,098 |
|
Fitness |
|
|
881 |
|
|
|
890 |
|
|
|
853 |
|
|
|
827 |
|
|
|
733 |
|
Other |
|
|
2,093 |
|
|
|
1,888 |
|
|
|
1,782 |
|
|
|
2,938 |
|
|
|
5,722 |
|
Other operating income (2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19 |
|
Operating expenses (3) |
|
|
13,334 |
|
|
|
14,045 |
|
|
|
13,348 |
|
|
|
17,517 |
|
|
|
16,338 |
|
Operating income (loss) |
|
|
805 |
|
|
|
1,581 |
|
|
|
2,034 |
|
|
|
(64 |
) |
|
|
3,234 |
|
Operating margin |
|
|
5.7 |
% |
|
|
10.1 |
% |
|
|
13.2 |
% |
|
|
(0.4 |
) % |
|
|
16.5 |
% |
Number of inpatient clinics (end of period) |
|
|
10 |
|
|
|
10 |
|
|
|
10 |
|
|
|
10 |
|
|
|
37 |
|
Number of outpatient clinics (end of period) |
|
|
201 |
|
|
|
205 |
|
|
|
223 |
|
|
|
218 |
|
|
|
215 |
|
Number of fitness locations (end of period) |
|
|
73 |
|
|
|
60 |
|
|
|
61 |
|
|
|
43 |
|
|
|
42 |
|
_______________________________________
(1) |
Includes Ageility rehabilitation clinics and fitness operations as well as home healthcare operations. |
|
(2) |
Other operating income represents income recognized for funds received under the CARES Act and other government grants. |
|
(3) |
The three months ended December 31, 2021, September 30, 2021 and June 30, 2021 includes restructuring expenses of $23, $(310) and $1,720, respectively |
AlerisLife Inc. |
||||||||||||||||||||
Comparable Lifestyle Services Segment Data |
||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
Lifestyle Services (1): |
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues |
|
$ |
11,670 |
|
|
$ |
13,016 |
|
|
$ |
13,028 |
|
|
$ |
13,943 |
|
|
$ |
13,288 |
|
Outpatient |
|
|
10,628 |
|
|
|
11,923 |
|
|
|
11,929 |
|
|
|
12,834 |
|
|
|
12,304 |
|
Fitness |
|
|
864 |
|
|
|
859 |
|
|
|
825 |
|
|
|
801 |
|
|
|
703 |
|
Other |
|
|
178 |
|
|
|
234 |
|
|
|
274 |
|
|
|
308 |
|
|
|
281 |
|
Other operating income (2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19 |
|
Operating expenses |
|
|
11,364 |
|
|
|
11,758 |
|
|
|
11,695 |
|
|
|
12,340 |
|
|
|
11,464 |
|
Operating income |
|
|
306 |
|
|
|
1,258 |
|
|
|
1,333 |
|
|
|
1,603 |
|
|
|
1,843 |
|
Operating margin |
|
|
2.6 |
% |
|
|
9.7 |
% |
|
|
10.2 |
% |
|
|
11.5 |
% |
|
|
13.8 |
% |
Number of inpatient clinics (end of period) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Number of outpatient clinics (end of period) |
|
|
185 |
|
|
|
185 |
|
|
|
185 |
|
|
|
185 |
|
|
|
185 |
|
Number of fitness locations (end of period) |
|
|
69 |
|
|
|
52 |
|
|
|
58 |
|
|
|
40 |
|
|
|
40 |
|
_______________________________________
(1) |
Includes Ageility outpatient rehabilitation clinics and fitness operations as well as home healthcare operations that ALR has continuously operated since January 1, 2021. |
|
(2) |
Other operating income represents income recognized for funds received under CARES Act and other government grants. |
AlerisLife Inc. |
|||||||||||||||||||||
Owned Senior Living Communities as of and for the Three Months Ended March 31, 2022 |
|||||||||||||||||||||
(dollars in thousands) |
|||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||
No. |
|
Community Name |
|
State |
|
Property
|
|
Living
|
|
Residential
|
|
Gross Carrying
|
|
Net Carrying
|
|
Date Acquired |
|
Most Recent
|
|||
1 |
|
Morningside of Decatur (2) |
|
Alabama |
|
AL |
|
49 |
|
$ |
315 |
|
$ |
7,538 |
|
$ |
4,127 |
|
11/19/2004 |
|
2021 |
2 |
|
Morningside of Auburn (2) |
|
Alabama |
|
AL |
|
42 |
|
|
342 |
|
|
2,153 |
|
|
1,036 |
|
11/19/2004 |
|
1997 |
3 |
|
The Palms of Fort Myers (2) |
|
Florida |
|
IL |
|
218 |
|
|
1,813 |
|
|
7,280 |
|
|
3,870 |
|
4/1/2002 |
|
1988 |
4 |
|
Five Star Residences of Banta Pointe (3) |
|
Indiana |
|
AL |
|
121 |
|
|
733 |
|
|
10,978 |
|
|
6,356 |
|
9/29/2011 |
|
2006 |
5 |
|
Five Star Residences of Fort Wayne (2) |
|
Indiana |
|
AL |
|
154 |
|
|
958 |
|
|
9,176 |
|
|
5,720 |
|
9/29/2011 |
|
1998 |
6 |
|
Five Star Residences of Clearwater |
|
Indiana |
|
AL |
|
88 |
|
|
351 |
|
|
14,254 |
|
|
8,993 |
|
6/1/2011 |
|
1999 |
7 |
|
Five Star Residences of Lafayette |
|
Indiana |
|
AL |
|
109 |
|
|
582 |
|
|
11,795 |
|
|
7,547 |
|
6/1/2011 |
|
2000 |
8 |
|
Five Star Residences of Noblesville (2) |
|
Indiana |
|
AL |
|
151 |
|
|
1,176 |
|
|
13,827 |
|
|
8,689 |
|
7/1/2011 |
|
2005 |
9 |
|
The Villa at Riverwood (2) |
|
Missouri |
|
IL |
|
112 |
|
|
708 |
|
|
4,967 |
|
|
3,252 |
|
4/1/2002 |
|
1986 |
10 |
|
Voorhees Senior Living (2) |
|
New Jersey |
|
AL |
|
104 |
|
|
924 |
|
|
19,814 |
|
|
13,429 |
|
7/1/2008 |
|
1999 |
11 |
|
Washington Township Senior Living |
|
New Jersey |
|
AL |
|
93 |
|
|
775 |
|
|
26,358 |
|
|
17,326 |
|
7/1/2008 |
|
1998 |
12 |
|
Carriage House Senior Living (2) |
|
North Carolina |
|
AL |
|
98 |
|
|
946 |
|
|
9,938 |
|
|
5,331 |
|
12/1/2008 |
|
1997 |
13 |
|
Forest Heights Senior Living (2) |
|
North Carolina |
|
AL |
|
111 |
|
|
773 |
|
|
16,242 |
|
|
10,610 |
|
12/1/2008 |
|
1998 |
14 |
|
Fox Hollow Senior Living (2) |
|
North Carolina |
|
AL |
|
77 |
|
|
1,137 |
|
|
25,691 |
|
|
17,223 |
|
7/1/2000 |
|
1999 |
15 |
|
Legacy Heights Senior Living (2) |
|
North Carolina |
|
AL |
|
116 |
|
|
588 |
|
|
7,670 |
|
|
3,617 |
|
12/1/2008 |
|
1997 |
16 |
|
Morningside at Irving Park (2) |
|
North Carolina |
|
AL |
|
91 |
|
|
796 |
|
|
3,800 |
|
|
1,610 |
|
11/19/2004 |
|
1997 |
17 |
|
The Devon Senior Living |
|
Pennsylvania |
|
AL |
|
84 |
|
|
482 |
|
|
32,837 |
|
|
14,905 |
|
7/1/2008 |
|
1985 |
18 |
|
The Legacy of Anderson (2) |
|
South Carolina |
|
IL |
|
101 |
|
|
613 |
|
|
11,080 |
|
|
6,429 |
|
12/1/2008 |
|
2003 |
19 |
|
Morningside of Springfield (2) |
|
Tennessee |
|
AL |
|
54 |
|
|
526 |
|
|
18,784 |
|
|
11,679 |
|
11/19/2004 |
|
1984 |
20 |
|
Huntington Place |
|
Wisconsin |
|
AL |
|
127 |
|
|
855 |
|
|
2,445 |
|
|
1,511 |
|
7/15/2010 |
|
1999 |
|
|
Total |
|
|
|
|
|
2,100 |
|
$ |
15,393 |
|
$ |
256,627 |
|
$ |
153,260 |
|
|
|
|
_______________________________________
(1) |
AL is primarily an assisted living community and IL is primarily an independent living community. |
|
(2) |
Encumbered property under ALR's $95,000 Loan. |
|
(3) |
Encumbered property under ALR's mortgage note having an aggregate principal amount outstanding of $6,877 as of March 31, 2022. |
|
(4) |
Excludes funds received under the CARES Act recognized as other operating income. |
Warning Concerning Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever AlerisLife uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, "will", “may” and negatives or derivatives of these or similar expressions, ALR is making forward-looking statements. These forward-looking statements are based upon ALR’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by ALR’s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond ALR's control.
The information contained in ALR’s filings with the Securities and Exchange Commission, or SEC, including under “Risk Factors” in ALR’s periodic reports, or incorporated therein, identifies other important factors that could cause ALR’s actual results to differ materially from those stated in or implied by ALR’s forward-looking statements. ALR’s filings with the SEC are available on the SEC’s website at www.sec.gov.
You should not place undue reliance upon forward-looking statements.
Except as required by law, ALR does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220503006179/en/
Contacts
Michael Kodesch, Director, Investor Relations
(617) 796-8245
