Monday, Emeritus Corp. (ESC), a provider of assisted living and Alzheimer's and related dementia care services to senior citizens, reported a wider loss in the fourth quarter, primarily due to impairment losses.
The Seattle, Washington-based company's fourth quarter net loss widened to $30.5 million or $0.78 per share from net loss of $25.9 million or $0.66 per share in the same period a year ago. Loss from continuing operations for the quarter was $29.3 million or $0.75 per share, compared to a loss of $20.7 million or $0.53 per share in the previous year.
On average, six analysts polled by Thomson Reuters expected the company to report a loss of $0.56 per share. Analysts' estimates typically exclude special items.
For the quarter, the company recorded impairment losses of $8.5 million. The losses include a $4.6 million impairment of the book value of three communities to be sold pending the approval of the board, a $1.4 million on one community held for sale, an impairment loss of $753 thousand on other intangible assets, and a $1.7 million loss on investments held.
In addition, Emeritus recorded other non-operating expenses of $1.3 million related to a loss on the termination of an operating lease and $3.9 million for the write-off of costs primarily related to abandoned development and acquisition projects.
Total revenues increased 10.9% to $203.6 million from $183.6 million last year and came in above analysts' estimate of $197.44 million.
The revenue growth was due to an increase in the average monthly revenue per occupied unit, the acquisition of 13 leased communities, a net increase in occupied units, and an increase in management fees.
For the full year, the company reported a wider net loss of $104.75 million or $2.68 per share, compared to net loss of $48.74 million or $1.80 per share in the prior year. Loss from continuing operations for the year was $97.8 million or $2.50 per share, compared to a loss of $42.3 million or $1.56 per share in the earlier year.
Total revenues for the year increased to $769.4 million from $534.7 million in the previous year.
Street analysts expected the company to report a loss of $2.46 per share on revenues of $763.15 million for the full year.
ESC closed Monday's regular trading at $6.20, down $0.13 or 2.05% on the NYSE.
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