Q3 2020 Five Star Senior Living Inc Earnings Call

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Hello, and welcome to the five Star Senior living third quarter 2020 financial results Conference call.

All participants will be in listen only mode.

Should you need assistance, please take doornkop, especially I'll start pressing the star followed by zero.

After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your Touchtone phone.

Try your question. Please press Star then too.

Please note today's event is being recorded.

Now I'd like to turn the conference over to Olivia Snyder manager of Investor Relations. Please go ahead.

Thank you welcome to factor.

Our senior living third quarter 2020 earnings call. The agenda for today's call includes a presentation <unk> President and CEO.

Second you Vice President CFO, and Treasurer, Jack leader, and senior Vice President and COO market, where those are all my question and answer session with research analysts.

I would like to note that the transcription recording retransmission of today's conference call is strictly prohibited without the prior written consent.

Today's conference call include forward looking statements within the meaning of the private Securities Litigation Reform Act of 90, 95, and other securities laws.

These forward looking statements are based on five star's present beliefs and expectations.

As of today Thursday November five 2020.

The company undertakes no obligation to revise or publicly release the results of any revision to the forward looking statements made in today's conference call other than through filings with the Securities and Exchange Commission or Sep regarding this reporting period.

Actual results may differ materially from those projected in any forward looking statements.

Additional information concerning factors that could cause those differences is contained in our filings with the SEC and.

Investors are cautioned not to place undue reliance upon any forward looking statements. In addition, this call may contain non-GAAP numbers, including EBITDA, adjusted EBITDA and pro forma EBITDA reconciliations.

Reconciliations of net income attributable to common shareholders to these non-GAAP figures and components to calculate that are available in our quarterly.

<unk> results news release available on our website at five star senior living Dot Com I will now turn the call over to key.

Thanks, Olivia and thanks, everyone for joining us on our earnings call for the third quarter of 2020.

As our nation continues to be evolving threat of the COVID-19 pandemic businesses that are older adults, including senior living remains significantly impacted.

Well many states across the country have loosened restriction in some businesses have returned to a degree of normal activity challenges remain for senior living community leaders as they work to safeguard the health and wellbeing of our most vulnerable population, while providing rewarding daily life experiences.

I feel immense gratitude for the extraordinary efforts displayed across the five star popcorn and price for how we've adapted and work to overcome unforeseen challenges.

The senior living industry, continuing to experienced widespread deterioration in occupancy, which in turn is putting pressure on top line revenue.

Compounding occupancy challenges our increased operating costs driven by safety protocol to mitigate the spread of COVID-19.

Throughout the pandemic five stars priority has been the health and wellbeing of our resident clients team members partners and potential customers.

And our low rates of Kobe Teen cases are evidence of our success.

We remain steadfast in hearing to our operational protocol, including regular testing of our team members and resident.

And to carry reserve, a personal protective equipment or PV to be prepared for a potential spike during the rest of 2020 and into 2021.

During the third quarter five star proved its strength and durability as we advanced our response to the pandemic adverse effect on occupancy revenue and expenses.

I'd like to share a few business highlights that we believe position five star favorably in this environment.

First five star reported positive financial results for the third quarter and our balance sheet remains strong while.

All the financial benefits from our restructuring transaction with DHC as well as our growth and rehabilitation and wellness services segment.

And continued focus on expense management, we were able to generate positive cash flow in both sequential quarter and year over year growth in net income.

For the third quarter of 2020, we reported adjusted EBITDA of $6.8 million and net income of 12 cents per diluted share.

Our financial position also continues to improve with $95.8 million of unrestricted cash only $7.3 million of outstanding debt obligation no amounts outstanding on our revolving credit facility.

We believe we are well positioned with the necessary financial resources to support our business needs during the lasting effects of the pandemic.

Next we continue to position ourselves to rebound in the new normal.

We have remained focused on providing an exceptional restaurant experience as we adjust for the impact of Covance 18.

Our knowledge of how to manage and mitigate the spread of the virus improve every day and I'm confident in our ability to achieve operational stability and long term growth.

In addition, our rehabilitation and wellness services Division provides revenue stream diversification in both flexibility and stability in this challenging operating environment.

Despite restrictions across senior living communities. We were pleased to successfully opened three net new agility outpatient clinic, bringing our total to 249.

And to see increases in average daily visit throughout the quarter.

Our rehabilitation and wellness services revenues have remained strong with a 15.8% increase over the prior year pro forma Russell.

And a 9.6% sequential increase.