FIVE STAR QUALITY CARE INC

CIK:0001159281|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
REVENUES
Total revenues	$ 182,659,000	$ 225,831,000	$ 526,925,000	$ 753,552,000
Other operating income	2,000	0	44,000	7,795,000
OPERATING EXPENSES
General and administrative	17,015,000	21,817,000	53,205,000	66,956,000
Restructuring expenses	1,570,000	1,220,000	1,944,000	16,859,000
Depreciation and amortization	3,088,000	2,983,000	9,535,000	8,912,000
Total operating expenses	189,963,000	232,518,000	549,216,000	776,677,000
Operating loss	(7,302,000)	(6,687,000)	(22,247,000)	(15,330,000)
Interest, dividend and other income	225,000	84,000	434,000	244,000
Interest and other expense	(1,474,000)	(507,000)	(3,757,000)	(1,379,000)
Unrealized (loss) gain on equity investments	(1,997,000)	22,000	(3,679,000)	555,000
Realized gain on sale of debt and equity investments	1,573,000	0	1,528,000	193,000
Gain (loss) on termination of lease	498,000	(3,277,000)	777,000	(3,277,000)
Loss before income taxes	(8,477,000)	(10,365,000)	(26,944,000)	(18,994,000)
(Provision) benefit for income taxes	(31,000)	164,000	(99,000)	(194,000)
Net loss	$ (8,508,000)	$ (10,201,000)	$ (27,043,000)	$ (19,188,000)
Weighted average shares outstanding—basic (in shares)	31,875	31,618	31,825	31,567
Weighted average shares outstanding—diluted (in shares)	31,875	31,618	31,825	31,567
Net loss per share—basic (in dollars per share)	$ (0.27)	$ (0.32)	$ (0.85)	$ (0.61)
Net loss per share—diluted (in dollars per share)	$ (0.27)	$ (0.32)	$ (0.85)	$ (0.61)
Total management and operating revenues
REVENUES
Total revenues	$ 41,537,000	$ 42,922,000	$ 119,704,000	$ 140,140,000
Lifestyle services
REVENUES
Total revenues	14,546,000	15,382,000	43,330,000	52,388,000
OPERATING EXPENSES
Cost of revenues	14,562,000	13,536,000	42,112,000	45,414,000
Residential
REVENUES
Total revenues	17,514,000	16,320,000	48,994,000	49,755,000
Residential management fees
REVENUES
Total revenues	9,477,000	11,220,000	27,380,000	37,997,000
Reimbursed community-level costs incurred on behalf of managed communities
REVENUES
Total revenues	137,768,000	177,231,000	396,352,000	585,662,000
OPERATING EXPENSES
Cost of revenues	137,768,000	177,231,000	396,352,000	585,662,000
Other reimbursed expenses
REVENUES
Total revenues	3,354,000	5,678,000	10,869,000	27,750,000
Residential wages and benefits
OPERATING EXPENSES
Cost of revenues	10,156,000	8,547,000	27,942,000	30,456,000
Other residential operating expenses
OPERATING EXPENSES
Cost of revenues	$ 5,804,000	$ 7,184,000	$ 18,126,000	$ 22,418,000

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOW FROM OPERATING ACTIVITIES:
Net income (loss)	$ (27,043)	$ (19,188)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	9,535	8,912
Unrealized loss (gain) on equity investments	3,679	(555)
Realized gain on sale of debt and equity investments	(1,528)	(193)
Gain on termination of lease	(777)	(408)
Long-lived asset impairment	24	890
Share-based compensation	845	761
Provision for losses on accounts receivables	438	1,432
Other non-cash (income) expense adjustments, net	571	652
Changes in assets and liabilities:
Accounts receivable	(870)	(975)
Due from related person	(14,833)	63,142
Prepaid expenses and other current and long term assets	6,076	2,175
Accounts payable	(18,142)	(7,014)
Accrued expenses and other current liabilities	12,313	(10,387)
Accrued compensation and benefits	(882)	(32,471)
Due to related persons	(1,379)	(3,172)
Other current and long term liabilities	(12,670)	(1,801)
Net cash (used in) provided by operating activities	(44,643)	1,800
CASH FLOW FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(13,201)	(7,350)
Purchases of debt and equity investments	(1,334)	(231)
Proceeds from sale of debt and equity investments	7,824	2,035
Net cash used in investing activities	(6,711)	(5,546)
CASH FLOW FROM FINANCING ACTIVITIES:
Net proceeds from borrowings	60,563	0
Repayments of borrowings	(327)	(308)
Repayments of finance lease principal	(387)	(600)
Payment of employee tax obligations on withheld shares	0	(3)
Net cash provided by (used in) financing activities	59,849	(911)
Increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents	8,495	(4,657)
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period	92,939	109,597
Cash and cash equivalents and restricted cash and cash equivalents at end of period	101,434	104,940
Reconciliation of cash and cash equivalents and restricted cash and cash equivalents:
Cash and cash equivalents	79,126	80,188
Current restricted cash and cash equivalents	21,317	23,615
Other restricted cash and cash equivalents	991	1,137
Cash and cash equivalents and restricted cash and cash equivalents at end of period	101,434	104,940
Supplemental cash flow information:
Interest paid	2,863	597
Income taxes paid, net	49	436
Operating lease payments	724	6,388
Financing lease interest payments	207	255
Non-cash investing and financing activities:
Decrease in accrued capital	1,935	558
Right-of-use assets obtained in exchange for operating lease liabilities	$ (2,991)	$ 9,746

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 79,126	$ 66,987
Restricted cash and cash equivalents	21,317	24,970
Accounts receivable, net	9,676	9,244
Due from related person	56,497	41,664
Debt and equity investments, of which $7,100 and $7,609 are restricted, respectively	10,890	19,535
Prepaid expenses and other current assets	21,817	24,433
Total current assets	199,323	186,833
Property and equipment, net	162,785	159,843
Operating lease right-of-use assets	5,796	9,197
Finance lease right-of-use assets	2,773	3,467
Restricted cash and cash equivalents	991	982
Restricted debt and equity investments	2,715	3,873
Other long-term assets	8,155	12,082
Total assets	382,538	376,277
Current liabilities:
Accounts payable	16,367	37,516
Accrued expenses and other current liabilities	44,861	31,488
Accrued compensation and benefits	33,413	34,295
Accrued self-insurance obligations	26,701	31,739
Operating lease liabilities	501	699
Finance lease liabilities	1,351	872
Due to related persons	2,500	3,879
Current portion of debt	437	419
Total current liabilities	126,131	140,907
Long-term liabilities:
Accrued self-insurance obligations	27,007	34,744
Operating lease liabilities	5,331	9,366
Finance lease liabilities	2,351	3,050
Long-term debt	67,161	6,364
Other long-term liabilities	227	256
Total long-term liabilities	102,077	53,780
Commitments and contingencies
Shareholders’ equity:
Common stock, par value $0.01: 75,000,000 shares authorized, 32,609,009 and 32,662,649 shares issued and outstanding, respectively	326	327
Additional paid-in-capital	462,144	461,298
Accumulated deficit	(308,107)	(281,064)
Accumulated other comprehensive (loss) income	(33)	1,029
Total shareholders’ equity	154,330	181,590
Total liabilities and shareholders' equity	$ 382,538	$ 376,277