Medindia

X

Sunrise Reports Financial Results for Fourth Quarter and Full Year of 2009

Thursday, February 25, 2010 General News J E 4
Advertisement

MCLEAN, Va., Feb. 25 /PRNewswire-FirstCall/ -- Sunrise Senior Living, Inc. (NYSE: SRZ) today reported financial results and operating data for the fourth quarter and full year of 2009.  Sunrise will host a conference call and webcast Thursday, February 25, 2010, at 9:00 a.m. ET, to discuss the financial results.

"We have made significant financial restructuring progress and, as promised, our attention is focused on our communities, team and residents," said Mark Ordan, Sunrise's chief executive officer. "While we are the highest-end major senior living company in a difficult economy, we are excited by our strong operating focus and believe this will lead to an improved bottom line."

Financial Results for Fourth Quarter and Full Year 2009

Sunrise reported revenues of $364.3 million and $1.5 billion for the fourth quarter and twelve months ended December 31, 2009, respectively, as compared to $398.4 million and $1.6 billion for the for the fourth quarter and twelve months ended December 31, 2008. Net income (loss) for the fourth quarter and twelve months ended December 31, 2009, was $10.4 million and ($133.9) million, or $0.19 and ($2.61) per fully diluted share, respectively, as compared to net loss of ($305.6) million and ($439.2) million, or ($6.07) and ($8.72) per fully diluted share, for the fourth quarter and twelve months ended December 31, 2008, respectively. The loss before income taxes and discontinued operations for the fourth quarter and twelve months ended December 31, 2009, was ($32.3) million and ($117.1) million, respectively, as compared to loss before income taxes and discontinued operations of ($235.3) million and ($373.7) million for the fourth quarter and twelve months ended December 31, 2008, respectively.  During the fourth quarter of 2009, Sunrise recognized a gain of $48.9 million from the sale of 21 communities, which is included in discontinued operations. During the fourth quarter of 2008, Sunrise recorded an impairment charge of $121.8 million related to all of the goodwill for its North American business segment.  Sunrise also determined that a valuation allowance on the net deferred tax assets was required.  

For the twelve months ended 2009, net loss from operations was ($132.0) million, an improvement of $215.6 million as compared to a net loss from operations of ($347.6) million in the twelve months ended 2008.  Adding back non-cash charges including depreciation and amortization of $46.6 million, write-off of capitalized project costs of $14.9 million, provision for doubtful accounts of $13.6 million, stock compensation of $3.0 million and impairment of long-lived assets of $31.7 million, as well as non-recurring items including the SEC investigation costs of $3.9 million and restructuring costs of $33.3 million, the adjusted income from ongoing operations was $15.0 million.  Adjusted income (loss) from ongoing operations is a measure of operating performance that is not calculated in accordance with U.S. GAAP and should not be considered as a substitute for income or loss from operations or net income or loss.  Adjusted income from ongoing operations is used by management to focus on income generated from the ongoing operations of the Company and to help management assess if adjustments to current spending decisions are needed. For a reconciliation of these items, please refer to the attached table "Adjusted Income (Loss) from Ongoing Operations."

Revenues and loss before income taxes and discontinued operations previously reported for 2008 have been reclassified to conform to the current year presentation. The amounts were reclassified to include the results of our German communities, our former Greystone subsidiary, 22 communities, which were sold in 2009, and one community, which was closed in 2009, in discontinued operations.

Cash and Liquidity Update

Sunrise had $39.3 million of unrestricted cash at December 31, 2009.  Sunrise has no borrowing availability under its bank credit facility, and has significant scheduled debt maturities in 2010 and significant debt that is in default.  As of December 31, 2009, Sunrise had debt of $440.2 million, of which $227.2 million of debt is scheduled to mature in 2010, including $33.7 million under its bank credit facility, which is due in December 2010. Debt that is in default totals $317.2 million, including $198.7 million of debt ($215.2 million face) that is in default as a result of the failure to pay principal and interest to the lenders of Sunrise's German communities. Sunrise is seeking waivers with respect to existing defaults to avoid acceleration of these obligations.

On February 12, 2010, Sunrise extended $56.9 million of debt that was either past due or in default at December 31, 2009.  The debt is associated with an operating community and two land parcels.  In connection with the extension, Sunrise (i) made a $5.0 million principal payment at closing, (ii) extended the terms of the debt to no earlier than December 2, 2010, (iii) provided for an additional $5.0 principal payment on or before July 31, 2010, and, among other items, (iv) defaults under the loan agreements were waived by the lenders. 

Significant 2009 and 2010 Developments

During 2009, Sunrise executed on a plan to reduce overhead costs, restructure and extend maturities of some of its debt, and sell assets to generate liquidity.  Steps taken to date as part of this plan include:

  • Selling 21 wholly owned senior living communities for an aggregate purchase price of $204 million, generating at closing approximately $60 million in net proceeds for Sunrise;
  • Entering into an agreement with its Fountains portfolio venture partner and the lender to release Sunrise from all claims that the venture partner and lender had against Sunrise and, in exchange, Sunrise has transferred its 20-percent ownership interest in the venture, as well as contributed certain vacant land parcels, agreed to transfer from management of the 16 Fountains communities, and repaid the venture the $1.8 million management fee Sunrise earned in 2009. To date, Sunrise has transferred from management in eight of the 16 communities;
  • Entering into a restructuring agreement with the lenders to seven of the nine communities in Germany, to settle and compromise their claims against Sunrise. In exchange, Sunrise has issued to the participating lenders 4.2 million shares of common stock, their pro rata share of up to 5 million shares of common stock, has agreed to grant them the mortgages on certain unencumbered North American properties as part of a liquidating trust, and has guaranteed to these participating lenders a minimum of $58.3 million in net proceeds. Sunrise has also agreed to market for sale the German assisted living communities. At December 31, 2009, Sunrise continues to be liable under operating deficit and repayment guarantees for two communities, and a principal repayment guarantee for the Hoesel land parcel, which is not part of the restructuring agreement.  The Hoesel land parcel was sold and the liability was released in early 2010;
  • Selling its Greystone subsidiary and its interests in Greystone seed capital partnerships for $2.0 million in cash at closing; $5.7 million in short-term notes, which have subsequently been repaid; a $6.0 million, 7-year note; a $2.5 million note payable; and 35-percent of the future net proceeds received by the seed capital investors for each of the seed capital interests purchased from Sunrise. In 2009, Sunrise received $1.0 million in net proceeds for one of its seed capital interests.
  • Selling its equity interest in its Aston Gardens venture (generating net proceeds for Sunrise of approximately $4.8 million), and in exchange releasing Sunrise from all guarantee obligations and terminating Sunrise's six management contracts in the venture as of April 30, 2009;
  • Reducing corporate expenses through reorganization of its corporate cost structure to an annual recurring run rate of approximately $100 million.

Additional details on these steps have been included in Sunrise's 2009 Form 10-K filed today.

Sunrise's focus in 2010 will be on: (1) operating high-quality assisted living and memory care communities in North America, Germany and the United Kingdom; (2) increasing occupancy and improving the operating efficiency of Sunrise's communities; (3) improving the operating efficiency of Sunrise's corporate operations; (4) generating liquidity; (5) divesting of non-core assets; and (6) reducing operational and financial risk.  

Operating Data for Fourth-Quarter 2009

The nine German communities have been excluded from Sunrise's 2009 fourth quarter operating results set forth below because they are considered discontinued operations.

  • Comparable community revenues for the fourth quarter of 2009 decreased by 1.6 percent, from $525.5 million for the fourth quarter of 2008 to $517.0 million for the fourth quarter of 2009.  Excluding the impact of foreign exchange rates in 2009, comparable community revenues for the fourth quarter of 2009 decreased 2.3 percent to $513.3 million year over year. Sunrise's comparable community portfolio consists of communities that were open and operating as of January 1, 2007, and include consolidated, unconsolidated venture, and managed communities in the United States, Canada and the United Kingdom.
  • Average unit occupancy in comparable communities for the fourth quarter of 2009 was 86.5 percent, which was down 350 basis points from 90.0 percent for the fourth quarter of 2008, and down 10 basis points as compared to 86.6 percent in the third quarter of 2009. 
  • Average daily revenue per occupied unit in comparable communities increased 2.5 percent from $185.85 for the fourth quarter of 2008 to $190.56 for the fourth quarter of 2009. Excluding the impact of foreign exchange rates in 2009, average daily revenue per occupied unit for the comparable community portfolio increased 1.8 percent to $189.22 for the fourth quarter of 2009 as compared to the fourth quarter of 2008. 
  • Comparable community operating expenses for the fourth quarter of 2009 decreased 3.9 percent over the fourth quarter of 2008 from $398.5 million to $383.1 million. Excluding certain health and dental expenses experienced in the fourth quarter of 2008, as well as the impact of the foreign exchange rates in 2009, these operating expenses decreased 4.8 percent.  
  • As the Company has announced, Sunrise will discontinue managing the Fountains portfolio in the coming months. To date, Sunrise has transferred from management in eight of the 16 communities. Excluding these 16 communities' operating performance, fourth-quarter 2009 comparable community revenues were $477.0 million, average unit occupancy was 87.2 percent, average daily revenue per occupied unit was $196.98, and community operating expenses were $351.0 million. A table providing additional detail on Sunrise's operating results excluding this portfolio has been attached.
  • In the fourth quarter of 2009, Sunrise opened five new communities, with a combined capacity of 403 units.  As of December 31, 2009, Sunrise did not have any additional communities under construction.
  • As of December 31, 2009, Sunrise operated 384 communities located in the United States, Canada, the United Kingdom and Germany, with a unit capacity of approximately 40,400 units.
  • As of February 25, 2010, Sunrise operated 374 communities located in the United States, Canada, the United Kingdom and Germany, with a unit capacity of approximately 37,800 units. 

Sunrise's management believes that total comparable-community revenues, average daily revenue per occupied unit, average unit occupancy rates and total comparable-community expenses are useful indicators of trends in Sunrise's management business.  For additional details on Sunrise's comparable-community operations data, please refer to the Supplemental Information attached.

Conference Call and Webcast

Sunrise will host a conference call and webcast at 9:00 a.m. ET on Thursday, February 25, 2010, to discuss the financial results for the fourth quarter and full year of 2009 and the other matters discussed in this press release.  The call-in number for the conference call is 877-741-4244 or 719-325-4830 (from outside the U.S.). Callers should reference the "Sunrise Senior Living Q4 Earnings Call" or the participant passcode: 9598943. Those interested may also go to the Investor Relations section of the Company's Web site (http://www.sunriseseniorliving.com) to listen to the earnings call. A telephone replay of the call will be available until March 11, 2010 at 12 p.m. ET, by dialing 888-203-1112 or 719-457-0820 (passcode: 9598943); a replay will also be available on Sunrise's Web site during that period.

About Sunrise Senior Living

Sunrise Senior Living, a McLean, Va.-based company, employs approximately 40,000 people.  As of February 25, 2010, Sunrise operated 374 communities in the United States, Canada, Germany and the United Kingdom, with a combined unit capacity of approximately 37,800 units.  Sunrise offers a full range of personalized senior living services, including independent living, assisted living, care for individuals with Alzheimer's and other forms of memory loss, as well as nursing and rehabilitative services.  Sunrise's senior living services are delivered by staff trained to encourage the independence, preserve the dignity, enable freedom of choice and protect the privacy of residents.  To learn more about Sunrise, please visit http://www.sunriseseniorliving.com .

Forward-Looking Statements

Certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Sunrise believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurances that these expectations will be realized. Sunrise's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to, the risk that the Company does not execute definitive documentation with the German lenders or consummate the transactions contemplated by the binding term sheet; the risk that the other identified lenders holding other eligible claims do not elect to participate in the restructuring and Sunrise is unable to otherwise settle such claims with them; the risk that the Company is not able to sell the North American properties mortgaged pursuant to the binding term sheet; the risk that the net sale proceeds of the mortgaged North American properties are not sufficient to pay the minimum amount guaranteed by Sunrise to the electing lenders; changes in the Company's anticipated cash flow and liquidity; the Company's ability to maintain adequate liquidity to operate its business and execute its restructuring; the Company's ability to obtain waivers, cure or reach agreements with respect to defaults under the Company's loan, joint venture and construction agreements; the risk that a group of the Company's creditors, acting together, could force the Company into an involuntary bankruptcy proceeding; the Company's ability to sell its German communities within a reasonable time period; the Company's ability to refinance extend the maturity of or otherwise repay its bank credit facility due in 2010 and other debt due in 2009 and 2010 and/or raise funds from other sources; the Company's ability to achieve anticipated savings from the Company's cost reduction program; the outcome of the U.S. Securities and Exchange Commission's investigation; the outcome of the IRS audit of the Company's tax returns for the tax years ended December 31, 2005, 2006 and 2007; the Company's ability to continue to recognize income from refinancings and sales of communities by ventures; risk of changes in the Company's critical accounting estimates; risk of further write-downs or impairments of the Company's assets; risk of future obligations to fund guarantees and other support arrangements to some of the Company's ventures, lenders to the ventures or third-party owners; risk of declining occupancies in existing communities or slower than expected leasing of new communities; risk resulting from any international expansion; development and construction risks; availability of financing for development, including construction loans as to which we are in default; risks associated with past or any future acquisitions; compliance with government regulations; risk of new legislation or regulatory developments; the risk that some of the Company's management agreements, subject to early termination provisions based on various performance measures, could be terminated due to failure to achieve the performance measures; business conditions and market factors that could affect occupancy rates at and revenues from the Company's communities and the value of the Company's properties generally; competition and our response to pricing and promotional activities of our competitors; changes in interest rates; unanticipated expenses; the risks of further downturns in general economic conditions including, but not limited to, financial market performance, consumer credit availability, interest rates, inflation, energy prices, unemployment and consumer sentiment about the economy in general; risks associated with the ownership and operation of assisted living and independent living communities; and other risks detailed in the Company's 2008 Annual Report on Form 10-K filed with the SEC, as may be amended or supplemented in the Company's Form 10-Q filings or otherwise. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

    
    
                           SUNRISE SENIOR LIVING, INC.                   
                      CONSOLIDATED STATEMENTS OF OPERATIONS  
                   
                                                                 
                                      Three Months         Twelve Months    
                                          Ended                Ended        
                                       December 31,         December 31,     
                                       ------------         ------------     
    (In thousands, except per                                               
     share amounts)                   2009       2008       2009       2008 
                                      ----       ----       ----       ---- 
                                       (Unaudited)                          
    Operating revenue:                                                      
      Management fees              $28,162    $30,515   $112,467   $131,586 
      Resident fees for                                                     
       consolidated                                                         
       communities                  89,423     87,183    350,278    340,975 
      Ancillary fees                11,249      9,633     45,397     42,535 
      Professional fees                                                     
       from development,                                                    
       marketing and other           1,850     10,815     13,193     44,447 
      Reimbursed costs                                                      
       incurred on behalf of                                                
       managed communities         233,651    260,273    942,809  1,011,431 
                                   -------    -------    -------  --------- 
        Total operating revenues   364,335    398,419  1,464,144  1,570,974 
    Operating expenses:                                                     
      Community expense                                                     
       for consolidated                                                     
       communities                  68,141     68,658    268,319    257,555 
      Community lease expense       14,776     15,164     59,344     59,843 
      Depreciation and                                                      
       amortization                  9,640     10,077     46,629     39,497 
      Ancillary expenses            10,577     10,304     42,457     40,202 
      General and administrative    28,076     41,326    119,905    157,509 
      Development expense            2,039      5,883     12,501     34,134 
      Write-off of capitalized
       project costs                   732     11,554     14,879     95,763 
      Accounting Restatement,                                               
       Special Independent                                                  
       Committee inquiry,                                                   
       SEC investigation                                                   
       and stockholder litigation      346      3,788      3,887     30,224 
      Restructuring costs            7,430     16,959     33,313     24,178 
      Provision for doubtful                                                
       accounts                      2,482     14,484     13,625     20,077 
      Loss on financial guarantees
       and other contracts             590      3,320      2,053      5,022 
      Impairment of owned                                                   
       communities and land 
       parcels                      19,362     25,467     31,685     27,816 
      Impairment of                                                         
       goodwill and intangibles          -    121,828          -    121,828 
      Costs incurred on                                                     
       behalf of managed                                                    
       communities                 227,831    255,590    947,566  1,004,974 
                                   -------    -------    -------  --------- 
        Total operating expenses   392,022    604,402  1,596,163  1,918,622 
                                   -------    -------  ---------  --------- 
          Loss from operations     (27,687)  (205,983)  (132,019)  (347,648)
    Other non-operating income                                              
     (expense):                                                             
      Interest income                    -      2,307      1,351      6,267 
      Interest expense              (2,769)    (2,914)   (10,301)    (6,709)
      Gain (loss) on                                                        
       investments                   2,652     (3,770)     3,556     (7,770)
      Other income (expense)         1,502    (15,191)     5,773    (20,066)
                                     -----    -------      -----    ------- 
        Total other                                                         
         non-operating                                                      
         income (expense)            1,385    (19,568)       379    (28,278)
    Gain (loss) on the sale and                                             
     development of real estate                                             
     and equity interests            1,321     (1,654)    21,651     17,374 
    Sunrise’s share of (loss) 
     earnings and return on 
     investment in unconsolidated                                         
     communities                    (3,689)    (6,639)     5,673    (13,846)
    Loss from investments                                                   
     accounted for under the 
     profit-sharing method          (3,651)    (1,424)   (12,808)    (1,329)
                                    ------     ------    -------     ------ 
          Loss before benefit from                                        
           (provision for) income                                         
            taxes and discontinued                                        
            operations             (32,321)  (235,268)  (117,124)  (373,727)
    Benefit from (provision for)                                            
     income taxes                    2,351       (996)     3,880     47,137 
                                     -----       ----      -----     ------ 
          Loss before discontinued                                        
           operations              (29,970)  (236,264)  (113,244)  (326,590)
    Discontinued operations, net                                            
     of tax                         40,675    (70,621)   (20,271)  (117,516)
                                    ------    -------    -------   -------- 
          Net income (loss)                                                 
           attributable to                                                  
           common shareholders      10,705   (306,885)  (133,515)  (444,106)
            Less: (Income) loss
             attributable to
             noncontrolling                                              
             interests, net of tax    (269)     1,273       (400)     4,927 
                                      ----      -----       ----      ----- 
          Net income (loss)                                                 
           attributable to                                                  
           common                                                           
           shareholders            $10,436  $(305,612) $(133,915) $(439,179)
                                   =======  =========  =========  ========= 
                                                                            
    Earnings per share data:                                                
      Basic net income (loss) per                                           
       common share                                                         
        Loss before discontinued                                      
         operations                 $(0.57)    $(4.69)    $(2.22)    $(6.48)
        Discontinued operations, net                                  
         of tax                       0.76      (1.38)     (0.39)     (2.24)
                                      ----      -----      -----      ----- 
          Net income (loss)          $0.19     $(6.07)    $(2.61)    $(8.72)
                                     =====     ======     ======     ====== 
                                                                            
      Diluted net income (loss) per                                         
       common share                                                         
        Loss before discontinued                                      
         operations                 $(0.57)    $(4.69)    $(2.22)    $(6.48)
        Discontinued operations, net                                    
         of tax                       0.76      (1.38)     (0.39)     (2.24)
                                      ----      -----      -----      ----- 
          Net income (loss)          $0.19     $(6.07)    $(2.61)    $(8.72)
                                     =====     ======     ======     ====== 
                                                                            
    See accompanying notes                                                  
    
    
    
                            SUNRISE SENIOR LIVING, INC.                       
                            CONSOLIDATED BALANCE SHEETS                       
                                                                              
                                                          December    December
                                                              31,         31,
    (In thousands, except per share  and share amounts)      2009        2008 
                                                             ----        ---- 
    ASSETS                                                                    
      Current Assets:                                                         
        Cash and cash equivalents                         $39,283     $29,513 
        Accounts receivable, net                           37,304      54,842 
        Income taxes receivable                             5,371      30,351 
        Due from unconsolidated communities                19,673      45,255 
        Deferred income taxes, net                         23,862      25,341 
        Restricted cash                                    39,365      37,392 
        Assets held for sale                               40,658      49,076 
        German assets held for sale                       104,720           - 
        Prepaid expenses and other current assets          30,198      33,138 
                                                           ------      ------ 
          Total current assets                            340,434     304,908 
      Property and equipment, net                         288,056     681,352 
      Due from unconsolidated communities                  13,178      31,693 
      Intangible assets, net                               53,024      70,642 
      Goodwill                                                  -      39,025 
      Investments in unconsolidated communities            64,971      66,852 
      Investments accounted for                                               
       under the profit-sharing method                     11,031      22,005 
      Restricted cash                                     110,402     123,772 
      Restricted investments in marketable securities      20,997      31,080 
      Other assets, net                                     8,496      10,228 
                                                            -----      ------ 
          Total assets                                   $910,589  $1,381,557 
                                                         ========  ========== 
                                                                              
    LIABILITIES AND EQUITY                                                    
      Current Liabilities:                                                    
        Current maturities of debt                       $207,811    $377,449 
        Outstanding draws on bank credit facility          33,728      95,000 
        Debt relating to German assets held for sale      198,680           - 
        Accounts payable and accrued expenses             138,032     184,144 
        Liabilities associated with                                           
        German assets held for sale                        12,632           - 
        Due to unconsolidated communities                   2,180         914 
        Deferred revenue                                    5,364       7,327 
        Entrance fees                                      33,157      35,270 
        Self-insurance liabilities                         41,975      35,317 
                                                           ------      ------ 
          Total current liabilities                       673,559     735,421 
      Debt, less current maturities                             -     163,682 
      Investment accounted for under                                          
      the profit-sharing method                                 -       8,332 
      Guarantee liabilities                                   823      13,972 
      Self-insurance liabilities                           58,225      68,858 
      Deferred gains on the sale of real estate                               
       and deferred revenues                               21,865      88,706 
      Deferred income tax liabilities                      23,862      28,129 
      Other long-term liabilities, net                    106,021     126,543 
                                                          -------     ------- 
          Total liabilities                               884,355   1,233,643 
                                                          -------   --------- 
      Equity:                                                                 
        Preferred stock, $0.01 par value, 10,000,000                          
         shares authorized, no shares issued and 
         outstanding                                            -           - 
        Common stock, $0.01 par value, 120,000,000 shares                     
         authorized, 55,752,217 and 50,872,711 shares 
         issued and outstanding, net of 401,353 and 
         342,525 treasury shares, at December 31, 2009 
         and 2008, respectively                               558         509 
        Additional paid-in capital                        474,158     458,404 
        Retained loss                                    (460,971)   (327,056)
        Accumulated other comprehensive income              8,302       6,671 
                                                            -----       ----- 
          Total stockholders’ equity                       22,047     138,528 
                                                           ------     ------- 
      Noncontrolling interests                              4,187       9,386 
                                                            -----       ----- 
          Total equity                                     26,234     147,914 
                                                           ------     ------- 
          Total liabilities and  equity                  $910,589  $1,381,557 
                                                         ========  ========== 
                                                                              
    See accompanying notes                              
    
    
    
                Adjusted Income (Loss) from Ongoing Operations         
                                                                       
                                               Twelve Months Ended        
                                                   December 31,          
                                                   ------------          
                                            2009       2008       2007 
                                            ----       ----       ---- 
                                                                       
    Loss from operations               $(132,019) $(347,648) $(200,123)
      Non-cash expenses:                                               
      Depreciation and amortization       46,629     39,497     42,601 
      Write-off of capitalized                                         
      project costs                       14,879     95,763     28,430 
      Provision for doubtful accounts     13,625     20,077      7,709 
      Stock compensation                   2,979      3,176      7,020 
      Impairment of long-lived assets     31,685    149,644      7,641 
                                          ------    -------      ----- 
                                                                       
    (Loss) income from operations after                               
    adjustment for non-cash expenses     (22,222)   (39,491)  (106,722)
      Accounting Restatement,                                          
       Special Independent                                              
       Committee inquiry, SEC 
       investigation and                                        
       stockholder litigation              3,887     30,224     51,707 
      Restructuring costs                 33,313     24,178          - 
                                          ------     ------         -- 
                                                                       
    Adjusted income (loss)                                             
    from ongoing operations              $14,978    $14,911   $(55,015)
                                         =======    =======   ======== 
                                                                       
    Adjusted income from ongoing operations is a measure of operating 
    performance that is not calculated in accordance with U.S. generally
    accepted accounting principles ("GAAP") and should not be considered as a
    substitute for income/loss from operations or net income/loss. Adjusted 
    income from ongoing operations is used by management to focus on liquidity
    generated from the ongoing operations of the Company and to help 
    management assess if adjustments to current spending decisions are needed.
    
    
    
                           Sunrise Senior Living, Inc.                       
                             Supplemental Information                        
                             As of  December 31, 2009                        
                    ($ in thousand except average daily rate)                
                                                                             
                                                                             
                                                                   Resident  
          INCLUDES FOUNTAINS        Communities  Unit Capacity     Capacity  
                                    -----------  -------------    ---------  
                                    Q4 09 Q4 08  Q4 09   Q4 08   Q4 09  Q4 08
                                    ----- -----  -----   -----   -----  -----
    Community Data (1,2)                                                     
    Communities managed                                                      
     for third-party                                                         
     owners                           135   137 16,416  13,967  17,697 15,366
    Communities                                                              
     in ventures                      201   203 16,194  20,225  18,982 22,826
    Communities consolidated           48    72  7,743   9,417   8,058  9,909
    Greystone communities               -    23      -   6,242       -  6,242
                                       --    --     --   -----      --  -----
             Total                                                           
              communities                                                    
              operated                384   435 40,353  49,851  44,737 54,343
                                      ===   === ======  ======  ====== ======
                                                                             
    Percentage of Total                                                      
     Operating Portfolio                                                     
      Assisted Living                               75%     73%              
       Independent Living                           20%     22%              
      Skilled Nursing                                5%      5%              
                                                    --      --               
             Total                                 100%    100%              
                                                   ===     ===               
    
    
    
    Selected Operating Results                                              
    Comparable Community Owned
     Portfolio Operating Results
     (3)                             Q4 09     Q4 08   % Change              
    ----------------------------     -----     -----   --------              
                                                                
    Total Comparable-                                                       
     Community                                                              
     Portfolio                                                              
    -----------------                                                       
    Number of Communities              320       320                        
    Unit Capacity                   34,122    34,122                        
    Resident Capacity               37,558    37,558                        
    Community Revenues            $516,970  $525,539      -1.6%             
    Community Revenues Excluding                                            
     Impact of '09 Exchange Rates $513,341  $525,539      -2.3%             
    Community Operating Expenses  $383,137  $398,491      -3.9%             
    Community Operating Expenses                                            
     Excluding Impact of '09                                                
     Exchange Rates, Health and                                             
     Dental (No Insurance Premium                                           
     effect in periods)           $377,303  $396,127      -4.8%             
    Average Daily                                                           
     Revenue Per                                                            
     Occupied Unit                 $190.56   $185.85       2.5%             
    Average Daily                                                           
     Revenue Per                                                            
     Occupied Unit                                                          
     Excluding Impact of                                                    
     '09 Exchange Rates            $189.22   $185.85       1.8%             
    Average Unit Occupancy Rate       86.5%     90.0%     (350) basis points
                                                                            
    Communities in ventures and                                             
     managed for third-party                                                
     owners                                                                 
    ---------------------------                                             
    Number of Communities              284       284                        
    Unit Capacity                   27,432    27,432                        
    Resident Capacity               30,721    30,721                        
    Community Revenues            $431,749  $440,639      -2.0%             
    Community Revenues Excluding                                            
     Impact of '09 Exchange Rates $428,120  $440,639      -2.8%             
    Community Operating Expenses  $314,845  $329,137      -4.3%             
    Community Operating Expenses                                            
     Excluding Impact of '09                                                
     Exchange Rates, Health and                                             
     Dental (No Insurance Premium                                           
     effect in periods)           $309,633  $327,197      -5.4%             
    Average Daily                                                           
     Revenue Per                                                            
     Occupied Unit                 $199.15   $194.28       2.5%             
    Average Daily                                                           
     Revenue Per                                                            
     Occupied Unit                                                          
     Excluding Impact of                                                    
     '09 Exchange Rates            $197.47   $194.28       1.6%             
    Average Unit Occupancy Rate       85.9%     89.8%     (390) basis points
                                                                            
    Communities consolidated                                                
    -------------------------                                               
    Number of Communities               36        36                        
    Unit Capacity                    6,690     6,690                        
    Resident Capacity                6,837     6,837                        
    Community Revenues             $85,221   $84,900       0.4%             
    Community Revenues Excluding                                            
     Impact of '09 Exchange Rates  $85,221   $84,900       0.4%             
    Community Operating Expenses   $68,292   $69,354      -1.5%             
    Community Operating                                                     
     Expenses Excluding                                                     
     Health and Dental (No                                                  
     Insurance Premium                                                      
     effects in periods)           $67,670   $68,930      -1.8%             
    Average Daily                                                           
     Revenue Per                                                            
     Occupied Unit                 $156.39   $151.71       3.1%             
    Average Daily                                                           
     Revenue Per                                                            
     Occupied Unit                                                          
     Excluding Impact of                                                    
     '09 Exchange Rates            $156.39   $151.71       3.1%             
    Average Unit Occupancy Rate       88.8%     90.8%     (200) basis points
                                                                            
                                                                            
    Notes                                                                   
    -----                                                                   
    (1) During the fourth quarter of 2009, Sunrise opened five venture  
        communities and sold or disposed of one venture community. 
        Additionally, Sunrise transitioned 16 venture communities to managed.
        There were also 21 consolidated communities sold.            
    (2) Comparable community portfolio consists of all communities in which
        Sunrise has an ownership interest in or management agreement with and
        were under Sunrise ownership or management for at least 24 months as
        of the January 1, 2009.  This includes  consolidated communities,
        communities in ventures and communities managed for third-party
        owners.                                                
    (3) Community operating expenses exclude management fees paid to Sunrise
        with respect to comparable-community ventures in order to make 
        comparisons between consolidated and venture communities consistent. 
    
    
    
    
                           Sunrise Senior Living, Inc.                       
                             Supplemental Information                        
                             As of  December 31, 2009                        
                    ($ in thousand except average daily rate)                
                                                                             
          EXCLUDES FOUNTAINS                                                 
                                                                   Resident  
                                    Communities  Unit Capacity     Capacity  
                                    -----------  -------------    ---------  
                                    Q4 09 Q4 08  Q4 09   Q4 08   Q4 09  Q4 08
                                    ----- -----  -----   -----   -----  -----
    Community Data (1,2)                                                     
    Communities managed                                                      
     for third-party                                                         
     owners                           135   137 16,416  13,967  17,697 15,366
    Communities                                                              
     in ventures                      201   203 16,194  20,225  18,982 22,826
    Communities consolidated           48    72  7,743   9,417   8,058  9,909
    Greystone communities               -    23      -   6,242       -  6,242
                                       --    --     --   -----      --  -----
             Total                                                           
              communities                                                    
              operated                384   435 40,353  49,851  44,737 54,343
                                      ===   === ======  ======  ====== ======
                                                                             
    Percentage of Total                                                      
     Operating Portfolio                                                     
      Assisted Living                               75%     73%              
       Independent Living                           20%     22%              
      Skilled Nursing                                5%      5%              
                                                    --      --               
             Total                                 100%    100%              
                                                   ===     ===               
    
    
    
    Selected Operating Results                                              
    Comparable Community Owned                                              
     Portfolio Operating Results                                            
     (3)                            Q409      Q408    % Change              
    ----------------------------    ----      ----    --------              
                                                                            
    Total Comparable-                                                       
     Community                                                              
     Portfolio                                                              
    -----------------                                                       
    Number of Communities              304       304                        
    Unit Capacity                   30,202    30,202                        
    Resident Capacity               33,527    33,527                        
    Community Revenues            $477,029  $485,051      -1.7%             
    Community Revenues Excluding                                            
     Impact of '09 Exchange Rates $473,400  $485,051      -2.4%             
    Community Operating Expenses  $356,655  $362,238      -1.5%             
    Community Operating Expenses                                            
     Excluding Impact of '09                                                
     Exchange Rates, Health and                                             
     Dental (No Insurance Premium                                           
     effect in periods)           $351,009  $359,936      -2.5%             
    Average Daily                                                           
     Revenue Per                                                            
     Occupied Unit                 $196.98   $193.35       1.9%             
    Average Daily                                                           
     Revenue Per                                                            
     Occupied Unit                                                          
     Excluding Impact of                                                    
     '09 Exchange Rates            $195.48   $193.35       1.1%             
    Average Unit Occupancy Rate       87.2%     90.2%     (300) basis points
                                                                            
    Communities in ventures and                                             
     managed for third-party                                                
     owners                                                                 
    ---------------------------                                             
    Number of Communities              268       268                        
    Unit Capacity                   23,512    23,512                        
    Resident Capacity               26,690    26,690                        
    Community Revenues            $391,808  $400,151      -2.1%             
    Community Revenues Excluding                                            
     Impact of '09 Exchange Rates $388,179  $400,151      -3.0%             
    Community Operating Expenses  $288,363  $292,884      -1.5%             
    Community Operating Expenses                                            
     Excluding Impact of '09                                                
     Exchange Rates, Health and                                             
     Dental (No Insurance Premium                                           
     effect in periods)           $283,339  $291,006      -2.6%             
    Average Daily                                                           
     Revenue Per                                                            
     Occupied Unit                 $208.76   $205.30       1.7%             
    Average Daily                                                           
     Revenue Per                                                            
     Occupied Unit                                                          
     Excluding Impact of                                                    
     '09 Exchange Rates            $206.83   $205.30       0.7%             
    Average Unit Occupancy Rate       86.8%     90.1%     (330) basis points
                                                                            
    Communities consolidated                                                
    -------------------------                                               
    Number of Communities               36        36                        
    Unit Capacity                    6,690     6,690                        
    Resident Capacity                6,837     6,837                        
    Community Revenues             $85,221   $84,900       0.4%             
    Community Revenues Excluding                                            
     Impact of '09 Exchange Rates  $85,221   $84,900       0.4%             
    Community Operating Expenses   $68,292   $69,354      -1.5%             
    Community Operating                                                     
     Expenses Excluding                                                     
     Health and Dental (No                                                  
     Insurance Premium                                                      
     effects in periods)           $67,670   $68,930      -1.8%             
    Average Daily                                                           
     Revenue Per                                                            
     Occupied Unit                 $156.39   $151.71       3.1%             
    Average Daily                                                           
     Revenue Per                                                            
     Occupied Unit                                                          
     Excluding Impact of                                                    
     '09 Exchange Rates            $156.39   $151.71       3.1%             
    Average Unit Occupancy Rate       88.8%     90.8%     (200) basis points
                                                                            
                                                                            
    Notes 
    -----
    (1) During the fourth quarter of 2009, Sunrise opened five venture
        communities and sold or disposed of one venture community. 
        Additionally, Sunrise transitioned 16 venture communities to managed.
        There were also 21 consolidated communities sold. 
    (2) Comparable community portfolio consists of all communities in which
        Sunrise has an ownership interest in or management agreement with and
        were under Sunrise ownership or management for at least 24 months as
        of the January 1, 2009.  This includes consolidated communities, 
        communities in ventures and communities managed for third-party 
        owners.
    (3) Community operating expenses exclude management fees paid to Sunrise
        with respect to comparable-community ventures in order to make
        comparisons between consolidated and venture communities consistent. 
    
    
    

SOURCE Sunrise Senior Living, Inc.

Advertisement


Advertisement

You May Also Like

Advertisement
View All

Post your Comments

Comments should be on the topic and should not be abusive. The editorial team reserves the right to review and moderate the comments posted on the site.
User Avatar
* Your comment can be maximum of 2500 characters
I agree to the terms and conditions
s
Labopharm Reports Results for Fourth Quarter and F...
S
NeoGenomics Reports Fourth Quarter and Full Year 2...