Business Wire | May 5, 2021 04:30PM EDT

Five Star Senior Living Inc. Announces First Quarter 2021 Results

May 05, 2021

NEWTON, Mass.--(BUSINESS WIRE)--May 05, 2021--Five Star Senior Living Inc. (Nasdaq: FVE) today announced its financial results for the quarter ended March 31, 2021.

Katherine Potter, President and Chief Executive Officer, made the following statement:

"Our recently announced strategic business plan is designed to further improve our senior living operations as we reshape our management business to focus on areas of operational strength as well as direct our efforts towards where we see the strongest market opportunities with the active, aging adult population. We believe this sharpened focus on larger and lower acuity communities will not only highlight our expertise as a senior living operator, but also support the evolution of our services business to better serve our target demographic and continue to diversify our revenue sources.

We are pleased to have completed all vaccination clinics across our communities and proud of our organization for its dedicated response throughout the COVID-19 pandemic. Our commitment to safety and wellness underscores our ongoing mission to enrich the resident experience at our communities and drive the recovery and future success of our business. We are encouraged to see positive momentum with move-ins and occupancy trends over the course of March and April, with 90 net positive moves since March 31st in our comparable communities.

Our rehabilitation and wellness services will continue to be an integral part of our company as we implement our strategic plan. In the first quarter, Ageility opened eight net new outpatient rehabilitation clinics. This segment represents approximately 39% of our total management and operating revenues. Our financial position remains strong with $109.5 million of unrestricted cash on our balance sheet and no amounts outstanding on our revolving credit facility. We feel confident in our ability to execute our strategic plan throughout 2021 and beyond."

First Quarter Highlights:

* As of May 1, 2021, all of FVE's senior living communities have completed vaccination clinics and over 85% of FVE's residents have received a COVID-19 vaccine. At May 1, 2021, all of FVE's owned, leased and managed senior living communities were accepting new residents in at least one service line of business (independent living, assisted living or memory care). Combined senior living revenues and management fees, including those for communities FVE manages on behalf of Diversified Healthcare Trust, or DHC, for the first quarter ended March 31, 2021 decreased to $30.9 million from $38.0 million for the same period in 2020, primarily due to decreased average occupancy resulting from the impact of the COVID-19 pandemic as well as the impact of the sale of nine senior living communities and closure of seven senior living communities in 2020 that FVE previously managed on behalf of DHC. Spot occupancy at communities FVE owns and leases as of March 31, 2021 was 68.2%, which represents a 150 basis points decrease as compared to December 31, 2020. Spot occupancy at the communities FVE manages on behalf of DHC was 70.2% as of March 31, 2021, which is a 60 basis points decrease when compared to December 31, 2020.

* Rehabilitation and wellness services revenues for the first quarter of 2021 decreased to $19.6 million from $21.4 million for the same period in 2020, primarily due to a reduction of inpatient clinic visits as a result of the COVID-19 pandemic partially offset by the opening of 21 net new Ageility physical therapeutic clinics since January 1, 2020. For the first quarter of 2021, Ageility opened 8 net new outpatient rehabilitation clinics.

* Net income for the first quarter of 2021 was $3.3 million, or $0.10 per diluted share, compared to a net loss of $17.2 million, or $0.55 per diluted share, for the first quarter of 2020, which included $22.9 million of one-time expenses related to the termination of leases for communities FVE previously leased from DHC. Net income for the first quarter of 2021 was impacted by $7.8 million of Provider Relief Funds received and recognized under the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, primarily for our senior living communities, which continued to experience a reduction of revenues and increased expenses related to decreased occupancy and other impacts of the COVID-19 pandemic.

* Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the first quarter of 2021 was $6.8 million compared to $(13.1) million for the first quarter of 2020. Adjusted EBITDA, as described further below, was $6.9 million for the first quarter of 2021 compared to $12.4 million for the first quarter of 2020. EBITDA and Adjusted EBITDA for the first quarter of 2021 includes $7.8 million of Provider Relief Funds received and recognized under the CARES Act. EBITDA and Adjusted EBITDA are non-GAAP financial measures. Reconciliations of net income determined in accordance with GAAP to EBITDA and Adjusted EBITDA for the first quarters of 2021 and 2020 are presented later in this press release.

* As of March 31, 2021, FVE had unrestricted cash and cash equivalents of $109.5 million. In addition, FVE had no amounts outstanding under its $65.0 million revolving credit facility.

Strategic Plan

On April 9, 2021, FVE announced a new strategic plan, or the Strategic Plan, to reposition its senior living management business to focus on larger independent living, assisted living and memory care communities as well as stand-alone independent living and active adult communities.

Pursuant to the Strategic Plan, FVE intends to, among other things, (i) amend its management arrangements with DHC to transition 108 senior living communities, with approximately 7,500 living units, that FVE currently manages for DHC, to new operators, (ii) close and reposition 27 skilled nursing units, with approximately 1,500 living units, in continuing care retirement communities, or CCRCs, that FVE will continue to manage for DHC, (iii) close 37 Ageility inpatient rehabilitation clinics in certain transitioning communities and (iv) eliminate certain positions in FVE's corporate, regional and divisional teams as well as impacted units and clinics.

In connection with implementing the Strategic Plan, FVE expects to incur non-recurring cash expenses of up to $20.5 million, approximately $15.0 million of which FVE expects DHC will reimburse. These expenses are expected to include up to $7.5 million of retention bonus payments, up to $10.2 million of severance, benefits and transition expenses, and up to $2.8 million of restructuring expenses, of which FVE expects DHC to reimburse approximately $5.9 million, $7.5 million and $1.6 million, respectively. FVE expects to complete the transitions and closures contemplated by the Strategic Plan, or the Transition, by the end of 2021.

Presented below is a summary of the units FVE operated (owned, leased and managed) as of March 31, 2021 and the projected number of units to be operated after the Transition, as if it had been completed as of January 1, 2021:

As of March 31, 2021 After Transition

Units ^(1) Units ^(2)

Independent living 10,979 10,421

Assisted living 12,109 7,940

Memory care 3,220 1,847

Skilled nursing 2,957 -

Total 29,265 20,208

_______________________________________(1)

The units operated as of March 31, 2021 include 2,099 owned, 203 leased, and 26,963 managed.

(2)

As if the Transition had been completed on January 1, 2021, the units operated as of March 31, 2021 include 2,099 owned, 203 leased, and 17,906 managed.

Presented below is a summary of the communities, units, average occupancy, spot occupancy, revenues and management fees for the communities FVE manages for DHC as of March 31, 2021 and for the communities to be managed for DHC after the Transition as if it had been completed as of January 1, 2021 (dollars in thousands):

_______________________________________^ The units operated as of March 31, 2021 include 2,099 owned, 203 leased,(1) and 26,963 managed.

^ As if the Transition had been completed on January 1, 2021, the units(2) operated as of March 31, 2021 include 2,099 owned, 203 leased, and 17,906 managed.

Presented below is a summary of the communities, units, average occupancy, spot occupancy, revenues and management fees for the communities FVE manages for DHC as of March 31, 2021 and for the communities to be managed for DHC after the Transition as if it had been completed as of January 1, 2021 (dollars in thousands):

As of March 31, 2021

Average Spot Community Management Communities Units Occupancy Occupancy Revenues ^ Fees (1)

Independentandassisted 182 17,435 69.6 % 70.0 % $ 149,385 $ 8,104 livingcommunities

Continuingcare 37 8,573 70.1 % 71.0 % 94,740 4,948 retirementcommunities

Skillednursing 9 955 62.8 % 65.4 % 15,841 798 facilities

Total 228 26,963 69.5 % 70.2 % $ 259,966 $ 13,850

After Transition

Communities

Units

Average Occupancy

Spot Occupancy

Community Revenues (1)

Management Fees (2)

Independent and assisted living communities

91

12,012

70.7

%

71.3

%

$

104,221

$

5,689

Continuing care retirement communities

29

5,894

76.8

%

76.9

%

54,057

2,891

Skilled nursing facilities

-

-

-

%

-

%

-

-

Total

120

17,906

72.7

%

73.2

%

$

158,278

$

8,580

After Transition

Average Spot Community Management Communities Units Occupancy Occupancy Revenues ^ Fees ^(2) (1)

Independentandassisted 91 12,012 70.7 % 71.3 % $ 104,221 $ 5,689 livingcommunities

Continuingcare 29 5,894 76.8 % 76.9 % 54,057 2,891 retirementcommunities

Skillednursing - - - % - % - - facilities

Total 120 17,906 72.7 % 73.2 % $ 158,278 $ 8,580

_______________________________________(1)

Represents the revenues of the senior living communities FVE manages on behalf of DHC. Managed senior living communities' revenues do not represent FVE's revenues and are included to provide supplemental information regarding the operating results and financial condition of the communities from which FVE earns management fees.

(2)

Excludes management fee revenue of $5.3 million in the quarter ended March 31, 2021 related to (i) 108 senior living communities managed on behalf of DHC, with approximately 7,500 living units that are expected to be transitioned to new operators and (ii) approximately 1,500 skilled nursing facility units that are expected to be closed and repositioned in 27 CCRCs that FVE will continue to manage for DHC.

Following the Transition, FVE will continue to manage 120 senior living communities for DHC, representing 17,906 living units and approximately 60% of FVE's management fee revenues as of March 31, 2021, and to operate its existing owned portfolio of 20 communities with approximately 2,100 living units. FVE expects to partially offset the resulting revenue loss from fees we earn from the 108 transitioning senior living communities with expense reductions to right-size operations.

The 120 senior living communities that FVE will continue to manage for DHC after the Transition outperformed the total DHC managed portfolio (exclusive of the pending closing and repositioning of approximately 1,500 skilled nursing facility units in 27 of the CCRCs) for the quarter ended March 31, 2021 with approximately 400 basis points higher operating margin and EBITDA margin.

In addition to the Transition of 108 managed communities owned by DHC, the landlord of our four leased senior living communities with 203 living units is currently marketing these properties for sale and we are unlikely to operate those four communities long-term.

Presented below is a summary of FVE's Ageility rehabilitation clinics as of March 31, 2021 and the number of clinics to be operated after the Transition as if it had been completed as of January 1, 2021 (dollars in thousands):

_______________________________________ Represents the revenues of the senior living communities FVE manages on^ behalf of DHC. Managed senior living communities' revenues do not(1) represent FVE's revenues and are included to provide supplemental information regarding the operating results and financial condition of the communities from which FVE earns management fees.

Excludes management fee revenue of $5.3 million in the quarter ended March 31, 2021 related to (i) 108 senior living communities managed on^ behalf of DHC, with approximately 7,500 living units that are expected to(2) be transitioned to new operators and (ii) approximately 1,500 skilled nursing facility units that are expected to be closed and repositioned in 27 CCRCs that FVE will continue to manage for DHC.

Following the Transition, FVE will continue to manage 120 senior living communities for DHC, representing 17,906 living units and approximately 60% of FVE's management fee revenues as of March 31, 2021, and to operate its existing owned portfolio of 20 communities with approximately 2,100 living units. FVE expects to partially offset the resulting revenue loss from fees we earn from the 108 transitioning senior living communities with expense reductions to right-size operations.

The 120 senior living communities that FVE will continue to manage for DHC after the Transition outperformed the total DHC managed portfolio (exclusive of the pending closing and repositioning of approximately 1,500 skilled nursing facility units in 27 of the CCRCs) for the quarter ended March 31, 2021 with approximately 400 basis points higher operating margin and EBITDA margin.

In addition to the Transition of 108 managed communities owned by DHC, the landlord of our four leased senior living communities with 203 living units is currently marketing these properties for sale and we are unlikely to operate those four communities long-term.

Presented below is a summary of FVE's Ageility rehabilitation clinics as of March 31, 2021 and the number of clinics to be operated after the Transition as if it had been completed as of January 1, 2021 (dollars in thousands):

As of March 31, 2021 After Transition

Number Total Average Adjusted Number Total Average Adjusted of Revenue ^ Revenue EBITDA of Revenue ^ Revenue EBITDA Clinics (3) per Margin Clinics (1)(3) per Margin Clinic Clinic

InpatientClinics in 37 $ 5,441 $ 147 26.1 % - $ - $ - - %DHCCommunities

OutpatientClinics in 91 7,734 85 15.3 % 91 7,734 85 15.3 %DHCCommunities

OutpatientClinics inTransition 44 1,863 42 18.5 % 44 1,863 42 18.5 %Communities^(2)

TotalClinics at 172 15,038 87 19.6 % 135 9,597 71 15.9 %DHCCommunities

OutpatientClinics atOther 80 4,234 53 11.8 % 80 4,234 53 11.8 %Communities^(4)

Total 252 $ 19,272 $ 76 17.9 % 215 $ 13,831 $ 64 14.6 %Clinics

_______________________________________(1)

Excludes revenue of $5.4 million in the quarter ended March 31, 2021 for inpatient clinics, which are expected to be closed as part of the Transition.

(2)

As part of the Transition, FVE expects 108 senior living communities managed on behalf of DHC to be transitioned to new operators. These communities have 44 Ageility outpatient rehabilitation clinics, which, due to the transfer to a new operator, may be subject to closure by the new operator.

(3)

Total Ageility revenue excludes home health care services, which are a part of the rehabilitation and wellness services segment.

(4)

Other communities includes 16 outpatient clinics at owned communities.

Conference Call Information:

At 1:00 p.m. Eastern Time on May 6, 2021, our President and Chief Executive Officer, Katherine Potter, Executive Vice President and Chief Operating Officer, Margaret Wigglesworth, and Executive Vice President, Chief Financial Officer and Treasurer, Jeffrey Leer, will host a conference call to discuss FVE's first quarter 2021 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 13, 2021. To hear the replay, dial (412) 317-0088. The replay pass code is 10153734.

A live audio webcast of the conference call will also be available in a listen-only mode on FVE's website, www.fivestarseniorliving.com. Participants wanting to access the webcast should visit FVE's website about five minutes before the call. The archived webcast will be available for replay on FVE's website following the call for about a week. The transcription, recording and retransmission in any way of FVE'sfirst quarter endedMarch 31, 2021financial results conference callarestrictly prohibited without the prior written consent ofFVE. FVE's website is not incorporated as part of this press release.

About Five Star Senior Living Inc.:

FVE is a senior living and rehabilitation and wellness services company. As of March 31, 2021, FVE operated 252 senior living communities (29,265 living units) located in 31 states, including 228 communities (26,963 living units) that it managed and 24 communities (2,302 living units) that it owned or leased. FVE operates independent living, assisted living, and memory care communities, continuing care retirement communities and skilled nursing facilities. Additionally, FVE's rehabilitation and wellness services segment includes Ageility Physical Therapy SolutionsTM, or Ageility, a division of FVE, which provides rehabilitation and wellness services within FVE communities as well as to external customers. As of March 31, 2021, Ageility operated 215 outpatient rehabilitation clinics and 37 inpatient rehabilitation clinics in 28 states. FVE is headquartered in Newton, Massachusetts.

_______________________________________^ Excludes revenue of $5.4 million in the quarter ended March 31, 2021 for(1) inpatient clinics, which are expected to be closed as part of the Transition.

As part of the Transition, FVE expects 108 senior living communities^ managed on behalf of DHC to be transitioned to new operators. These(2) communities have 44 Ageility outpatient rehabilitation clinics, which, due to the transfer to a new operator, may be subject to closure by the new operator.

^ Total Ageility revenue excludes home health care services, which are a(3) part of the rehabilitation and wellness services segment.

^ Other communities includes 16 outpatient clinics at owned communities.(4)

Conference Call Information:

At 1:00 p.m. Eastern Time on May 6, 2021, our President and Chief Executive Officer, Katherine Potter, Executive Vice President and Chief Operating Officer, Margaret Wigglesworth, and Executive Vice President, Chief Financial Officer and Treasurer, Jeffrey Leer, will host a conference call to discuss FVE's first quarter 2021 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 13, 2021. To hear the replay, dial (412) 317-0088. The replay pass code is 10153734.

A live audio webcast of the conference call will also be available in a listen-only mode on FVE's website, www.fivestarseniorliving.com. Participants wanting to access the webcast should visit FVE's website about five minutes before the call. The archived webcast will be available for replay on FVE's website following the call for about a week. The transcription, recording and retransmission in any way of FVE'sfirst quarter endedMarch 31, 2021financial results conference callarestrictly prohibited without the prior written consent ofFVE. FVE's website is not incorporated as part of this press release.

About Five Star Senior Living Inc.:

FVE is a senior living and rehabilitation and wellness services company. As of March 31, 2021, FVE operated 252 senior living communities (29,265 living units) located in 31 states, including 228 communities (26,963 living units) that it managed and 24 communities (2,302 living units) that it owned or leased. FVE operates independent living, assisted living, and memory care communities, continuing care retirement communities and skilled nursing facilities. Additionally, FVE's rehabilitation and wellness services segment includes Ageility Physical Therapy SolutionsTM, or Ageility, a division of FVE, which provides rehabilitation and wellness services within FVE communities as well as to external customers. As of March 31, 2021, Ageility operated 215 outpatient rehabilitation clinics and 37 inpatient rehabilitation clinics in 28 states. FVE is headquartered in Newton, Massachusetts.

Five Star Senior Living Inc.

Condensed Consolidated Statements of Operations

(amounts in thousands, except per share amounts)

(unaudited)

Three Months Ended March 31,

2021 2020

REVENUES

Rehabilitation and wellness services $ 19,553 $ 21,384

Senior living 17,057 20,997

Management fees 13,850 17,051

Total management and operating revenues 50,460 59,432

Reimbursed community-level costs incurred on behalf 213,160 232,016 of managed communities

Other reimbursed expenses 5,480 5,997

Total revenues 269,100 297,445



Other operating income 7,793 -



OPERATING EXPENSES

Rehabilitation and wellness services expenses 16,210 17,501

Senior living wages and benefits 12,013 9,800

Other senior living operating expenses 6,266 3,938

Community-level costs incurred on behalf of managed 213,160 232,016 communities

General and administrative 22,641 22,865

Depreciation and amortization 2,940 2,701

Total operating expenses 273,230 288,821



Operating income 3,663 8,624



Interest, dividend and other income 84 339

Interest and other expense (463) (382)

Unrealized gain (loss) on equity investments 135 (1,462)

Realized gain (loss) on sale of debt and equity 96 (21) investments

Loss on termination of leases - (22,899)

Income (loss) before income taxes 3,515 (15,801)

Provision for income taxes (200) (1,408)

Net income (loss) $ 3,315 $ (17,209)



Weighted average shares outstanding-basic 31,530 31,448

Weighted average shares outstanding-diluted 31,662 31,448



Net income (loss) per share-basic $ 0.11 $ (0.55)

Net income (loss) per share-diluted $ 0.10 $ (0.55)

Five Star Senior Living 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 U.S. generally accepted accounting principles, or GAAP. FVE believes the non-GAAP financial measures presented in the table below are meaningful supplemental disclosures because they may help investors better understand changes in FVE's operating results and its ability to meet FVE's financial obligations or service debt, make capital expenditures and expand its business. These non-GAAP financial measures may also help investors make comparisons between FVE and other companies on both a GAAP and non-GAAP basis. FVE believes that EBITDA and Adjusted EBITDA are meaningful financial measures that may help investors better understand its financial performance, including by allowing investors to compare FVE's performance between periods and to the performance of other companies. FVE management uses EBITDA and Adjusted EBITDA to evaluate FVE's financial performance and compare FVE's performance over time and to the performance of other companies. FVE calculates EBITDA and Adjusted EBITDA as shown below. These measures should not be considered as alternatives to net income (loss) or operating income, as indicators of FVE's operating performance or as measures of FVE's liquidity. Also, EBITDA and Adjusted EBITDA as presented may not be comparable to similarly titled amounts calculated by other companies.

FVE believes that net income (loss) is the most directly comparable financial measure, determined according to GAAP, to FVE'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, 2021 and 2020.

Three Months Ended March 31,

2021 2020

Net income (loss) $ 3,315 $ (17,209)

Add (less):

Interest and other expense 463 382

Interest, dividend and other income (84) (339)

Provision for income taxes 200 1,408

Depreciation and amortization 2,940 2,701

EBITDA 6,834 (13,057)

Add (less):

Unrealized (gain) loss on equity investments (135) 1,462

Loss on termination of leases ^(1) - 22,899

Transaction costs ^(2) 250 1,095

Adjusted EBITDA $ 6,949 $ 12,399

_______________________________________(1)

Represents the excess of the fair value of the shares issued to DHC as of January 1, 2020 of $97,899, compared to the consideration of $75,000 paid by DHC as part of the transaction agreement to restructure FVE's business arrangements with DHC, or the Restructuring Transactions.

(2)

Includes costs incurred related to the strategic plan announced on April 9, 2021 and the Restructuring Transactions for the quarters ended March 31, 2021 and 2020, respectively.

_______________________________________ Represents the excess of the fair value of the shares issued to DHC as of^ January 1, 2020 of $97,899, compared to the consideration of $75,000 paid(1) by DHC as part of the transaction agreement to restructure FVE's business arrangements with DHC, or the Restructuring Transactions.

^ Includes costs incurred related to the strategic plan announced on April(2) 9, 2021 and the Restructuring Transactions for the quarters ended March 31, 2021 and 2020, respectively.

Five Star Senior Living Inc.

Condensed Consolidated Balance Sheets

(dollars in thousands, except per share amounts)

(unaudited)

March 31,

December 31,

2021

2020

ASSETS

Current assets:

Cash and cash equivalents

$

109,485

$

84,351

Restricted cash and cash equivalents

23,717

23,877

Accounts receivable, net of allowance

9,558

9,104

Due from related person

86,204

96,357

Debt and equity investments

19,528

19,961

Prepaid expenses and other current assets

22,376

28,658

Total current assets

270,868

262,308

Property and equipment, net

158,716

159,251

Operating lease right-of-use assets

27,040

18,030

Finance lease right-of-use assets

4,160

4,493

Restricted cash and cash equivalents

1,189

1,369

Restricted debt and equity investments

4,945

4,788

Equity investment of an investee, net

11

11

Other long-term assets

4,201

3,956

Total assets

$

471,130

$

454,206

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

24,401

$

23,454

Accrued expenses and other current liabilities

45,190

41,843

Accrued compensation and benefits

73,675

70,543

Accrued self-insurance obligations

28,155

31,355

Operating lease liabilities

2,230

2,567

Finance lease liabilities

824

808

Due to related persons

3,859

6,585

Mortgage note payable

394

388

Security deposits and current portion of continuing care contracts

338

365

Total current liabilities

179,066

177,908

Long-term liabilities:

Accrued self-insurance obligations

41,098

37,420

Operating lease liabilities

26,472

17,104

Finance lease liabilities

3,710

3,921

Mortgage note payable

6,682

6,783

Other long-term liabilities

474

538

Total long-term liabilities

78,436

65,766

Shareholders' equity:

Common stock, par value $0.01

317

317

Additional paid-in-capital

460,113

460,038

Accumulated deficit

(247,824)

(251,139)

Accumulated other comprehensive income

1,022

1,316

Total shareholders' equity

213,628

210,532

Total liabilities and shareholders' equity

$

471,130

$

454,206

Five Star Senior Living Inc.

Condensed Consolidated Balance Sheets

(dollars in thousands, except per share amounts)

(unaudited)

March 31, December 31,

2021 2020

ASSETS

Current assets:

Cash and cash equivalents $ 109,485 $ 84,351

Restricted cash and cash equivalents 23,717 23,877

Accounts receivable, net of allowance 9,558 9,104

Due from related person 86,204 96,357

Debt and equity investments 19,528 19,961

Prepaid expenses and other current assets 22,376 28,658

Total current assets 270,868 262,308



Property and equipment, net 158,716 159,251

Operating lease right-of-use assets 27,040 18,030

Finance lease right-of-use assets 4,160 4,493

Restricted cash and cash equivalents 1,189 1,369

Restricted debt and equity investments 4,945 4,788

Equity investment of an investee, net 11 11

Other long-term assets 4,201 3,956

Total assets $ 471,130 $ 454,206



LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable $ 24,401 $ 23,454

Accrued expenses and other current liabilities 45,190 41,843

Accrued compensation and benefits 73,675 70,543

Accrued self-insurance obligations 28,155 31,355

Operating lease liabilities 2,230 2,567

Finance lease liabilities 824 808

Due to related persons 3,859 6,585

Mortgage note payable 394 388

Security deposits and current portion of continuing 338 365 care contracts

Total current liabilities 179,066 177,908



Long-term liabilities:

Accrued self-insurance obligations 41,098 37,420

Operating lease liabilities 26,472 17,104

Finance lease liabilities 3,710 3,921

Mortgage note payable 6,682 6,783

Other long-term liabilities 474 538

Total long-term liabilities 78,436 65,766



Shareholders' equity:

Common stock, par value $0.01 317 317

Additional paid-in-capital 460,113 460,038

Accumulated deficit (247,824) (251,139)

Accumulated other comprehensive income 1,022 1,316

Total shareholders' equity 213,628 210,532

Total liabilities and shareholders' equity $ 471,130 $ 454,206

Five Star Senior Living Inc.

Supplemental Financial Data

(dollars in thousands)

(unaudited)

Management and Operating Revenues by Product Type

Three Months Ended March 31, 2021

Management and Operating Revenues by Product Type:

SeniorLiving

Management Fees

Rehabilitation and Wellness Services

TotalRevenues

Independent and assisted living community revenues

$

17,057

$

8,104

$

-

$

25,161

Continuing care retirement community revenues

-

4,948

-

4,948

Skilled nursing facility revenues

-

798

-

798

Rehabilitation and wellness services revenues

-

-

19,553

19,553

Total management and operating revenues

$

17,057

$

13,850

$

19,553

$

50,460

Three Months Ended March 31, 2020

Management and Operating Revenues by Product Type:

SeniorLiving

Management Fees

Rehabilitation and Wellness Services

TotalRevenues

Independent and assisted living community revenues

$

20,997

$

9,563

$

-

$

30,560

Continuing care retirement community revenues

-

6,337

-

6,337

Skilled nursing facility revenues

-

1,151

-

1,151

Rehabilitation and wellness services revenues

-

-

21,384

21,384

Total management and operating revenues

$

20,997

$

17,051

$

21,384

$

59,432

Five Star Senior Living Inc.

Supplemental Financial Data

(dollars in thousands)

(unaudited)



Management and Operating Revenues by Product Type

Three Months Ended March 31, 2021

Management and Operating Senior Management Rehabilitation TotalRevenues by Product Type: Living Fees and Wellness Revenues Services

Independent and assisted $ 17,057 $ 8,104 $ - $ 25,161 living community revenues

Continuing careretirement community - 4,948 - 4,948 revenues

Skilled nursing facility - 798 - 798 revenues

Rehabilitation andwellness services - - 19,553 19,553 revenues

Total management and $ 17,057 $ 13,850 $ 19,553 $ 50,460 operating revenues



Three Months Ended March 31, 2020

Management and Operating Senior Management Rehabilitation TotalRevenues by Product Type: Living Fees and Wellness Revenues Services

Independent and assisted $ 20,997 $ 9,563 $ - $ 30,560 living community revenues

Continuing careretirement community - 6,337 - 6,337 revenues

Skilled nursing facility - 1,151 - 1,151 revenues

Rehabilitation andwellness services - - 21,384 21,384 revenues

Total management and $ 20,997 $ 17,051 $ 21,384 $ 59,432 operating revenues

Five Star Senior Living Inc.

Supplemental Financial Data

(dollars in thousands)

(unaudited)

Comparable Management and Operating Revenues by Product Type (1)

Three Months Ended March 31, 2021

Management and Operating Revenues by Product Type:

SeniorLiving

Management Fees

Rehabilitation and Wellness Services

TotalRevenues

Independent and assisted living community revenues

$

17,057

$

5,689

$

-

$

22,746

Continuing care retirement community revenues

-

2,891

-

2,891

Skilled nursing facility revenues

-

-

-

-

Rehabilitation and wellness services revenues

-

-

12,813

12,813

Total management and operating revenues

$

17,057

$

8,580

$

12,813

$

38,450

Three Months Ended March 31, 2020

Management and Operating Revenues by Product Type:

SeniorLiving

Management Fees

Rehabilitation and Wellness Services

TotalRevenues

Independent and assisted living community revenues

$

20,330

$

6,425

$

-

$

26,755

Continuing care retirement community revenues

-

3,204

-

3,204

Skilled nursing facility revenues

-

-

-

-

Rehabilitation and wellness services revenues

-

-

12,788

12,788

Total management and operating revenues

$

20,330

$

9,629

$

12,788

$

42,747

Five Star Senior Living Inc.

Supplemental Financial Data

(dollars in thousands)

(unaudited)



Comparable Management and Operating Revenues by Product Type ^(1)

Three Months Ended March 31, 2021

Management and Operating Senior Management Rehabilitation TotalRevenues by Product Type: Living Fees and Wellness Revenues Services

Independent and assisted $ 17,057 $ 5,689 $ - $ 22,746 living community revenues

Continuing careretirement community - 2,891 - 2,891 revenues

Skilled nursing facility - - - - revenues

Rehabilitation andwellness services - - 12,813 12,813 revenues

Total management and $ 17,057 $ 8,580 $ 12,813 $ 38,450 operating revenues



Three Months Ended March 31, 2020

Management and Operating Senior Management Rehabilitation TotalRevenues by Product Type: Living Fees and Wellness Revenues Services

Independent and assisted $ 20,330 $ 6,425 $ - $ 26,755 living community revenues

Continuing careretirement community - 3,204 - 3,204 revenues

Skilled nursing facility - - - - revenues

Rehabilitation andwellness services - - 12,788 12,788 revenues

Total management and $ 20,330 $ 9,629 $ 12,788 $ 42,747 operating revenues

_______________________________________(1)

The tables for the three months ended March 31, 2021 and 2020 include data for 24 owned and leased senior living communities, 120 managed senior living communities and 184 rehabilitation clinics that FVE has continuously owned, continuously leased or continuously managed since January 1, 2020. Per the Strategic Plan, the summary of operations for comparable communities and clinics excludes (i) 108 senior living communities managed on behalf of DHC, with approximately 7,500 living units, that are expected to be transitioned to new operators, (ii) approximately 1,500 skilled nursing facility units that are expected to be closed and repositioned in 27 CCRCs that FVE will continue to manage for DHC and (iii) 37 Ageility inpatient rehabilitation clinics operating in certain transitioning communities that are expected to be closed. In addition, the landlord of the four leased communities included in the 24 owned and leased senior living communities data above is currently marketing these properties for sale and FVE is unlikely to operate these four communities long-term.

_______________________________________ The tables for the three months ended March 31, 2021 and 2020 include data for 24 owned and leased senior living communities, 120 managed senior living communities and 184 rehabilitation clinics that FVE has continuously owned, continuously leased or continuously managed since January 1, 2020. Per the Strategic Plan, the summary of operations for comparable communities and clinics excludes (i) 108 senior living communities managed on behalf of DHC, with approximately 7,500 living^ units, that are expected to be transitioned to new operators, (ii)(1) approximately 1,500 skilled nursing facility units that are expected to be closed and repositioned in 27 CCRCs that FVE will continue to manage for DHC and (iii) 37 Ageility inpatient rehabilitation clinics operating in certain transitioning communities that are expected to be closed. In addition, the landlord of the four leased communities included in the 24 owned and leased senior living communities data above is currently marketing these properties for sale and FVE is unlikely to operate these four communities long-term.

Five Star Senior Living Inc.

Senior Living Segment Data

(dollars in thousands, except per unit amounts)

(unaudited)

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2021

2020

2020

2020

2020

Owned and Leased Communities

Independent and assisted living communities:

Revenues

$

17,057

$

17,903

$

18,525

$

19,590

$

20,997

Other operating income (1)

7,774

1,715

-

-

-

Operating expenses

20,414

21,181

19,661

20,165

17,470

Operating income (loss)

4,417

(1,563)

(1,136)

(575)

3,527

Operating margin

17.8

%

(8.0)

%

(6.1)

%

(2.9)

%

16.8

%

Number of communities (end of period)

24

24

24

24

24

Number of living units (end of period) (2)

2,302

2,302

2,312

2,312

2,312

Average occupancy

68.3

%

71.5

%

74.7

%

78.3

%

81.3

%

Spot occupancy

68.2

%

69.7

%

73.0

%

76.3

%

80.3

%

RevPAR (3)

$

2,479

$

2,596

$

2,665

$

2,813

$

2,930

Managed Communities (4)

Independent and assisted living communities:

Management fees

$

8,104

$

8,515

$

8,751

$

9,088

$

9,563

Community-level revenues

149,385

157,267

167,436

174,634

185,516

Other operating income (1)

770

1,677

-

14

-

Community-level expenses

137,876

139,623

145,399

139,175

143,608

Community operating income

12,279

19,321

22,037

35,473

41,908

Community operating margin

8.2

%

12.2

%

13.2

%

20.3

%

22.6

%

Number of communities (end of period) (5)

182

182

189

191

193

Number of living units (end of period) (2)(5)

17,435

17,440

18,032

18,148

18,395

Average occupancy

69.6

%

72.5

%

75.5

%

79.1

%

82.9

%

Spot occupancy

70.0

%

71.1

%

74.1

%

77.7

%

82.2

%

RevPAR (3)

$

2,855

$

2,969

$

3,088

$

3,207

$

3,360

Continuing care retirement communities:

Management fees

$

4,948

$

5,272

$

5,451

$

5,485

$

6,337

Community-level revenues

94,740

100,781

100,765

106,937

123,498

Other operating income (1)

606

7,997

-

3,792

-

Community-level expenses

92,894

98,221

102,103

99,071

103,946

Community operating income (loss)

2,452

10,557

(1,338)

11,658

19,552

Community operating margin

2.6

%

9.7

%

(1.3)

%

10.5

%

15.8

%

Number of communities (end of period)

37

37

39

39

40

Number of living units (end of period) (2)(6)

8,573

8,574

8,936

8,936

9,301

Average occupancy

70.1

%

72.8

%

75.6

%

79.1

%

83.4

%

Spot occupancy

71.0

%

71.2

%

74.4

%

78.3

%

81.3

%

RevPAR (3)

$

3,683

$

3,813

$

3,759

$

3,989

$

4,426

See the next page for footnote references to the table above

Skilled nursing facilities:

Management fees

$

798

$

1,035

$

1,100

$

1,132

$

1,151

Community-level revenues

15,841

20,589

21,900

22,532

22,956

Other operating income (1)

241

2,846

-

2,022

-

Community-level expenses

16,401

23,834

22,831

22,009

21,854

Community operating (loss) income

(319)

(399)

(931)

2,545

1,102

Community operating margin

(2.0)

%

(1.7)

%

(4.3)

%

10.4

%

4.8

%

Number of communities (end of period)

9

9

11

11

11

Number of living units (end of period) (2)(7)

955

955

1,264

1,264

1,264

Average occupancy

62.8

%

64.2

%

68.8

%

70.1

%

73.3

%

Spot occupancy

65.4

%

60.3

%

69.2

%

68.5

%

72.6

%

RevPAR (3)

$

5,529

$

5,655

$

5,775

$

5,942

$

6,054

Total managed communities:

Management fees

$

13,850

$

14,822

$

15,302

$

15,705

$

17,051

Community-level revenues

259,966

278,637

290,101

304,103

331,970

Other operating income (1)

1,617

12,520

-

5,828

-

Community-level expenses

247,171

261,678

270,333

260,255

269,408

Community operating income

14,412

29,479

19,768

49,676

62,562

Community operating margin

5.5

%

10.1

%

6.8

%

16.0

%

18.8

%

Number of communities (end of period)

228

228

239

241

244

Number of living units (end of period) (2)

26,963

26,969

28,232

28,348

28,960

Average occupancy

69.5

%

72.2

%

75.2

%

78.7

%

82.6

%

Spot occupancy

70.2

%

70.8

%

74.0

%

77.5

%

81.5

%

RevPAR (3)

$

3,213

$

3,355

$

3,420

$

3,576

$

3,820

Five Star Senior Living Inc.

Senior Living Segment Data

(dollars in thousands, except per unit amounts)

(unaudited)

Three Months Ended

March 31, December September June 30, March 31, 31, 30,

2021 2020 2020 2020 2020



Owned andLeased Communities

Independent andassisted living communities:

Revenues $ 17,057 $ 17,903 $ 18,525 $ 19,590 $ 20,997

Other operating 7,774 1,715 - - - income ^(1)

Operating 20,414 21,181 19,661 20,165 17,470 expenses

Operating 4,417 (1,563) (1,136) (575) 3,527 income (loss)

Operating 17.8 % (8.0) % (6.1) % (2.9) % 16.8 %margin

Number ofcommunities 24 24 24 24 24 (end of period)

Number ofliving units 2,302 2,302 2,312 2,312 2,312 (end of period)^(2)

Average 68.3 % 71.5 % 74.7 % 78.3 % 81.3 %occupancy

Spot occupancy 68.2 % 69.7 % 73.0 % 76.3 % 80.3 %

RevPAR ^(3) $ 2,479 $ 2,596 $ 2,665 $ 2,813 $ 2,930



ManagedCommunities ^ (4)

Independent andassisted living communities:

Management fees $ 8,104 $ 8,515 $ 8,751 $ 9,088 $ 9,563

Community-level 149,385 157,267 167,436 174,634 185,516 revenues

Other operating 770 1,677 - 14 - income ^(1)

Community-level 137,876 139,623 145,399 139,175 143,608 expenses

Communityoperating 12,279 19,321 22,037 35,473 41,908 income

Communityoperating 8.2 % 12.2 % 13.2 % 20.3 % 22.6 %margin

Number ofcommunities 182 182 189 191 193 (end of period)^(5)

Number ofliving units 17,435 17,440 18,032 18,148 18,395 (end of period)^(2)(5)

Average 69.6 % 72.5 % 75.5 % 79.1 % 82.9 %occupancy

Spot occupancy 70.0 % 71.1 % 74.1 % 77.7 % 82.2 %

RevPAR ^(3) $ 2,855 $ 2,969 $ 3,088 $ 3,207 $ 3,360



Continuing careretirement communities:

Management fees $ 4,948 $ 5,272 $ 5,451 $ 5,485 $ 6,337

Community-level 94,740 100,781 100,765 106,937 123,498 revenues

Other operating 606 7,997 - 3,792 - income ^(1)

Community-level 92,894 98,221 102,103 99,071 103,946 expenses

Communityoperating 2,452 10,557 (1,338) 11,658 19,552 income (loss)

Communityoperating 2.6 % 9.7 % (1.3) % 10.5 % 15.8 %margin

Number ofcommunities 37 37 39 39 40 (end of period)

Number ofliving units 8,573 8,574 8,936 8,936 9,301 (end of period)^(2)(6)

Average 70.1 % 72.8 % 75.6 % 79.1 % 83.4 %occupancy

Spot occupancy 71.0 % 71.2 % 74.4 % 78.3 % 81.3 %

RevPAR ^(3) $ 3,683 $ 3,813 $ 3,759 $ 3,989 $ 4,426



See the next page for footnote references to the table above

Skilled nursing facilities:

Management fees $ 798 $ 1,035 $ 1,100 $ 1,132 $ 1,151

Community-level 15,841 20,589 21,900 22,532 22,956 revenues

Other operating 241 2,846 - 2,022 - income ^(1)

Community-level 16,401 23,834 22,831 22,009 21,854 expenses

Communityoperating (319) (399) (931) 2,545 1,102 (loss) income

Communityoperating (2.0) % (1.7) % (4.3) % 10.4 % 4.8 %margin

Number ofcommunities 9 9 11 11 11 (end of period)

Number ofliving units 955 955 1,264 1,264 1,264 (end of period)^(2)(7)

Average 62.8 % 64.2 % 68.8 % 70.1 % 73.3 %occupancy

Spot occupancy 65.4 % 60.3 % 69.2 % 68.5 % 72.6 %

RevPAR ^(3) $ 5,529 $ 5,655 $ 5,775 $ 5,942 $ 6,054



Total managed communities:

Management fees $ 13,850 $ 14,822 $ 15,302 $ 15,705 $ 17,051

Community-level 259,966 278,637 290,101 304,103 331,970 revenues

Other operating 1,617 12,520 - 5,828 - income ^(1)

Community-level 247,171 261,678 270,333 260,255 269,408 expenses

Communityoperating 14,412 29,479 19,768 49,676 62,562 income

Communityoperating 5.5 % 10.1 % 6.8 % 16.0 % 18.8 %margin

Number ofcommunities 228 228 239 241 244 (end of period)

Number ofliving units 26,963 26,969 28,232 28,348 28,960 (end of period)^(2)

Average 69.5 % 72.2 % 75.2 % 78.7 % 82.6 %occupancy

Spot occupancy 70.2 % 70.8 % 74.0 % 77.5 % 81.5 %

RevPAR ^(3) $ 3,213 $ 3,355 $ 3,420 $ 3,576 $ 3,820

_______________________________________(1)

Other operating income represents income recognized for funds received under the Provider Relief Fund of the CARES Act and other governmental 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 FVE 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 June 30, 2020, December 31, 2020 and March 31, 2021 exclude income received by communities under the CARES Act and other governmental grants.

(4)

Managed communities, other than FVE's management fees, represents financial data of communities FVE manages for the account of DHC and does not represent financial results of FVE. Managed communities' data is included to provide supplemental information regarding the operating results and financial condition of the communities from which FVE earns management fees.

(5)

Includes one active adult community with 167 units.

(6)

Includes 2,055 skilled nursing units in communities where assisted living and independent living services are the predominant services provided.

(7)

Includes 53 assisted living and independent living units in communities where skilled nursing services are the predominant services provided.

_______________________________________^ Other operating income represents income recognized for funds received(1) under the Provider Relief Fund of the CARES Act and other governmental grants.

^ Includes living units categorized as in service. As a result, the number(2) of living units may vary from period to period for reasons other than the acquisition or disposition of senior living communities.

RevPAR is defined by FVE 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(3) the three months ended June 30, 2020, December 31, 2020 and March 31, 2021 exclude income received by communities under the CARES Act and other governmental grants.

Managed communities, other than FVE's management fees, represents financial data of communities FVE manages for the account of DHC and does^ not represent financial results of FVE. Managed communities' data is(4) included to provide supplemental information regarding the operating results and financial condition of the communities from which FVE earns management fees.

^ Includes one active adult community with 167 units.(5)

^ Includes 2,055 skilled nursing units in communities where assisted living(6) and independent living services are the predominant services provided.

^ Includes 53 assisted living and independent living units in communities(7) where skilled nursing services are the predominant services provided.

Five Star Senior Living Inc.

Comparable Communities Senior Living Segment Data

(dollars in thousands, except per unit amounts)

(unaudited)

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2021

2020

2020

2020

2020

Owned and Leased Communities(1):

Number of communities (end of period)

24

24

24

24

24

Number of living units (end of period) (2)

2,302

2,302

2,312

2,312

2,312

Spot Occupancy

68.2

%

69.7

%

73.0

%

76.3

%

80.3

%

Average Occupancy

68.3

%

71.5

%

74.7

%

78.3

%

81.3

%

RevPAR (3)

$

2,479

$

2,596

$

2,665

$

2,813

$

2,930

Managed Communities(1)(4):

Number of communities (end of period)

120

120

120

120

120

Number of living units (end of period) (2)

17,906

17,910

17,929

17,929

17,932

Spot Occupancy

73.2

%

74.2

%

77.0

%

81.1

%

85.6

%

Average Occupancy

72.7

%

75.6

%

78.5

%

82.6

%

86.0

%

RevPAR (3)

$

2,946

$

3,054

$

3,164

$

3,301

$

3,471

Five Star Senior Living Inc.

Comparable Communities Senior Living Segment Data

(dollars in thousands, except per unit amounts)

(unaudited)

Three Months Ended

March 31, December September June 30, March 31, 31, 30,

2021 2020 2020 2020 2020

Owned and Leased Communities ^(1):

Number ofcommunities (end of 24 24 24 24 24 period)

Number of livingunits (end of 2,302 2,302 2,312 2,312 2,312 period) ^(2)

Spot Occupancy 68.2 % 69.7 % 73.0 % 76.3 % 80.3 %

Average Occupancy 68.3 % 71.5 % 74.7 % 78.3 % 81.3 %

RevPAR ^(3) $ 2,479 $ 2,596 $ 2,665 $ 2,813 $ 2,930



Managed Communities ^(1)(4):

Number ofcommunities (end of 120 120 120 120 120 period)

Number of livingunits (end of 17,906 17,910 17,929 17,929 17,932 period) ^(2)

Spot Occupancy 73.2 % 74.2 % 77.0 % 81.1 % 85.6 %

Average Occupancy 72.7 % 75.6 % 78.5 % 82.6 % 86.0 %

RevPAR ^(3) $ 2,946 $ 3,054 $ 3,164 $ 3,301 $ 3,471

_______________________________________(1)

Includes data for senior living communities that FVE has continuously owned, continuously leased or continuously managed since January 1, 2020. Per the Strategic Plan the summary of operations for comparable communities also excludes (i) 108 senior living communities managed on behalf of DHC, with approximately 7,500 living units, that are expected to be transitioned to new operators and (ii) approximately 1,500 skilled nursing facility units, that are expected to be closed and repositioned in 27 CCRCs FVE will continue to manage for DHC. In addition, the landlord of the four leased communities included in the 24 owned and leased senior living communities data above is currently marketing these properties for sale and FVE is unlikely to operate these four communities long-term.

(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 sale of senior living communities.

(3)

RevPAR is defined by FVE 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 June 30, 2020, December 31, 2020 and March 31, 2021 exclude income received by communities under the CARES Act and other governmental grants.

(4)

Senior living segment data for comparable managed communities represents financial data of communities FVE manages for the account of DHC and does not represent financial results of FVE. Managed communities' data is included to provide supplemental information regarding the operating results and financial condition of the communities from which FVE earns management fees.

_______________________________________ Includes data for senior living communities that FVE has continuously owned, continuously leased or continuously managed since January 1, 2020. Per the Strategic Plan the summary of operations for comparable communities also excludes (i) 108 senior living communities managed on behalf of DHC, with approximately 7,500 living units, that are expected^ to be transitioned to new operators and (ii) approximately 1,500 skilled(1) nursing facility units, that are expected to be closed and repositioned in 27 CCRCs FVE will continue to manage for DHC. In addition, the landlord of the four leased communities included in the 24 owned and leased senior living communities data above is currently marketing these properties for sale and FVE is unlikely to operate these four communities long-term.

^ Includes living units categorized as in service. As a result, the number(2) of living units may vary from period to period for reasons other than the acquisition or sale of senior living communities.

RevPAR is defined by FVE 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(3) the three months ended June 30, 2020, December 31, 2020 and March 31, 2021 exclude income received by communities under the CARES Act and other governmental grants.

Senior living segment data for comparable managed communities represents financial data of communities FVE manages for the account of DHC and does^ not represent financial results of FVE. Managed communities' data is(4) included to provide supplemental information regarding the operating results and financial condition of the communities from which FVE earns management fees.

Five Star Senior Living Inc.

Rehabilitation and Wellness Services Segment Data

(dollars in thousands)

(unaudited)

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2021

2020

2020

2020

2020

Rehabilitation and Wellness Services (1):

Revenues

$

19,553

$

20,256

$

21,124

$

19,268

$

21,384

Other operating income (2)

19

221

-

1,499

-

Operating expenses

16,338

16,613

16,833

16,259

17,616

Operating income

3,234

3,864

4,291

4,508

3,768

Operating margin

16.5

%

18.9

%

20.3

%

21.7

%

17.6

%

Number of inpatient clinics (end of period)

37

37

40

40

41

Number of outpatient clinics (end of period)

215

207

209

206

203

Five Star Senior Living Inc.

Rehabilitation and Wellness Services Segment Data

(dollars in thousands)

(unaudited)

Three Months Ended

March 31, December September June 30, March 31, 31, 30,

2021 2020 2020 2020 2020

Rehabilitationand Wellness Services ^(1):

Revenues $ 19,553 $ 20,256 $ 21,124 $ 19,268 $ 21,384

Otheroperating 19 221 - 1,499 - income ^(2)

Operating 16,338 16,613 16,833 16,259 17,616 expenses

Operating 3,234 3,864 4,291 4,508 3,768 income

Operating 16.5 % 18.9 % 20.3 % 21.7 % 17.6 %margin

Number ofinpatient 37 37 40 40 41 clinics (endof period)

Number ofoutpatient 215 207 209 206 203 clinics (endof period)

_______________________________________(1)

Includes Ageility clinics and home health operations.

(2)

Other operating income represents income recognized for funds received under the Provider Relief Fund of the CARES Act and other governmental grants.

_______________________________________^ Includes Ageility clinics and home health operations.(1)

^ Other operating income represents income recognized for funds received(2) under the Provider Relief Fund of the CARES Act and other governmental grants.

Five Star Senior Living Inc.

Comparable Rehabilitation and Wellness Services Segment Data

(dollars in thousands)

(unaudited)

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2021

2020

2020

2020

2020

Rehabilitation and Wellness Services (1):

Revenues

$

12,813

$

13,181

$

13,891

$

12,852

$

12,788

Other operating income (2)

19

221

-

858

-

Operating expenses

11,183

11,717

11,685

11,470

11,747

Operating income

1,649

1,685

2,206

2,240

1,041

Operating margin

12.9

%

12.6

%

15.9

%

16.3

%

8.1

%

Number of inpatient clinics (end of period)

-

-

-

-

-

Number of outpatient clinics (end of period)

184

184

184

184

184

Five Star Senior Living Inc.

Comparable Rehabilitation and Wellness Services Segment Data

(dollars in thousands)

(unaudited)

Three Months Ended

March 31, December September June 30, March 31, 31, 30,

2021 2020 2020 2020 2020

Rehabilitationand Wellness Services ^(1):

Revenues $ 12,813 $ 13,181 $ 13,891 $ 12,852 $ 12,788

Otheroperating 19 221 - 858 - income ^(2)

Operating 11,183 11,717 11,685 11,470 11,747 expenses

Operating 1,649 1,685 2,206 2,240 1,041 income

Operating 12.9 % 12.6 % 15.9 % 16.3 % 8.1 %margin

Number ofinpatient - - - - - clinics (endof period)

Number ofoutpatient 184 184 184 184 184 clinics (endof period)

_______________________________________(1)

Includes Ageility clinics and home health operations. Per the Strategic Plan the summary of operations for comparable Ageility clinics excludes 37 Ageility inpatient rehabilitation clinics that are expected to be closed.

(2)

Other operating income represents income recognized for funds received under the Provider Relief Fund of the CARES Act and other governmental grants.

_______________________________________ Includes Ageility clinics and home health operations. Per the Strategic^ Plan the summary of operations for comparable Ageility clinics excludes(1) 37 Ageility inpatient rehabilitation clinics that are expected to be closed.

^ Other operating income represents income recognized for funds received(2) under the Provider Relief Fund of the CARES Act and other governmental grants.

Five Star Senior Living Inc.

Owned Senior Living Communities as of and for the Three Months Ended March 31, 2021

(dollars in thousands)

(unaudited)

No.

Community Name

State

Property Type (1)

Living Units

Senior Living Revenues (4)

Gross Carrying Value

Net Carrying Value

Date Acquired

Year Built or Most Recent Renovation

1

Morningside of Decatur (2)

Alabama

AL

49

$

290

$

3,786

$

2,238

11/19/2004

1999

2

Morningside of Auburn

Alabama

AL

42

316

2,360

1,549

11/19/2004

1997

3

The Palms of Fort Myers (2)

Florida

IL

218

1,538

31,414

15,018

4/1/2002

1988

4

Five Star Residences of Banta Pointe (3)

Indiana

AL

121

673

18,651

12,852

9/29/2011

2006

5

Five Star Residences of Fort Wayne (2)

Indiana

AL

154

1,087

25,968

17,685

9/29/2011

1998

6

Five Star Residences of Clearwater

Indiana

AL

88

377

9,797

5,451

6/1/2011

1999

7

Five Star Residences of Lafayette (2)

Indiana

AL

109

516

15,992

10,829

6/1/2011

2000

8

Five Star Residences of Noblesville (2)

Indiana

AL

151

1,092

25,400

17,620

7/1/2011

2005

9

The Villa at Riverwood (2)

Missouri

IL

111

611

6,986

3,192

4/1/2002

1986

10

Voorhees Senior Living (2)

New Jersey

AL

104

1,043

10,448

6,144

7/1/2008

1999

11

Washington Township Senior Living (2)

New Jersey

AL

93

936

10,393

6,140

7/1/2008

1998

12

Carriage House Senior Living

North Carolina

AL

98

857

8,445

5,263

12/1/2008

1997

13

Forest Heights Senior Living

North Carolina

AL

111

768

13,749

8,899

12/1/2008

1998

14

Fox Hollow Senior Living (2)

North Carolina

AL

77

887

11,116

7,193

7/1/2000

1999

15

Legacy Heights Senior Living (2)

North Carolina

AL

116

1,200

12,699

7,987

12/1/2008

1997

16

Morningside at Irving Park

North Carolina

AL

91

710

6,983

3,803

11/19/2004

1997

17

The Devon Senior Living

Pennsylvania

AL

84

603

6,915

3,772

7/1/2008

1985

18

The Legacy of Anderson

South Carolina

IL

101

542

1,429

470

12/1/2008

2003

19

Morningside of Springfield (2)

Tennessee

AL

54

407

3,719

1,708

11/19/2004

1984

20

Huntington Place

Wisconsin

AL

127

790

17,591

11,098

7/15/2010

1999

Total

2,099

$

15,243

$

243,841

$

148,911

Five Star Senior Living Inc.

Owned Senior Living Communities as of and for the Three Months Ended March 31,2021

(dollars in thousands)

(unaudited)

Property Senior Gross Net Year BuiltNo. Community State Type ^ Living Living Carrying Carrying Date or Most Name (1) Units Revenues ^ Value Value Acquired Recent (4) Renovation

Morningside 11/19/1 of Decatur Alabama AL 49 $ 290 $ 3,786 $ 2,238 2004 1999 ^(2)

2 Morningside Alabama AL 42 316 2,360 1,549 11/19/ 1997 of Auburn 2004

The Palms3 of Fort Florida IL 218 1,538 31,414 15,018 4/1/2002 1988 Myers ^(2)

Five Star4 Residences Indiana AL 121 673 18,651 12,852 9/29/ 2006 of Banta 2011 Pointe ^(3)

Five Star5 Residences Indiana AL 154 1,087 25,968 17,685 9/29/ 1998 of Fort 2011 Wayne ^(2)

Five Star6 Residences Indiana AL 88 377 9,797 5,451 6/1/2011 1999 of Clearwater

Five Star Residences7 of Indiana AL 109 516 15,992 10,829 6/1/2011 2000 Lafayette ^ (2)

Five Star Residences8 of Indiana AL 151 1,092 25,400 17,620 7/1/2011 2005 Noblesville ^(2)

The Villa9 at Missouri IL 111 611 6,986 3,192 4/1/2002 1986 Riverwood ^ (2)

Voorhees10 Senior New Jersey AL 104 1,043 10,448 6,144 7/1/2008 1999 Living ^(2)

Washington11 Township New Jersey AL 93 936 10,393 6,140 7/1/2008 1998 Senior Living ^(2)

Carriage12 House North AL 98 857 8,445 5,263 12/1/ 1997 Senior Carolina 2008 Living

Forest13 Heights North AL 111 768 13,749 8,899 12/1/ 1998 Senior Carolina 2008 Living

Fox Hollow North14 Senior Carolina AL 77 887 11,116 7,193 7/1/2000 1999 Living ^(2)

Legacy15 Heights North AL 116 1,200 12,699 7,987 12/1/ 1997 Senior Carolina 2008 Living ^(2)

Morningside North 11/19/16 at Irving Carolina AL 91 710 6,983 3,803 2004 1997 Park

The Devon17 Senior Pennsylvania AL 84 603 6,915 3,772 7/1/2008 1985 Living

18 The Legacy South IL 101 542 1,429 470 12/1/ 2003 of Anderson Carolina 2008

Morningside19 of Tennessee AL 54 407 3,719 1,708 11/19/ 1984 Springfield 2004 ^(2)

20 Huntington Wisconsin AL 127 790 17,591 11,098 7/15/ 1999 Place 2010

Total 2,099 $ 15,243 $ 243,841 $ 148,911

_______________________________________(1)

AL is primarily an assisted living community and IL is primarily an independent living community.

(2)

Encumbered property under FVE's $65,000 revolving credit facility.

(3)

Encumbered property under FVE's $7,076 mortgage note.

(4)

Excludes funds received under the Provider Relief Fund of 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 Five Star Senior Living Inc. uses words such as "believe", "expect", "anticipate", "intend", "plan", "estimate", "will", "may" and negatives or derivatives of these or similar expressions, FVE is making forward-looking statements. These forward-looking statements are based upon FVE'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 FVE's forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond FVE's control. For example:

* Ms. Potter states that the Strategic Plan is designed to improve FVE's senior living operations, to focus on areas of FVE's operational strengths and to diversify FVE's revenue targets. This press release also includes statements regarding the steps expected to be taken in connection with the Strategic plan and the anticipated timing, costs, savings and benefits related to such steps, as well as FVE's expectations for the operation and performance of the business following implementation of the Strategic Plan. FVE may not be able to implement each of its strategic initiatives in a timely manner or at all, the costs of such initiatives may be more than it expects, it may not realize the benefits it anticipates from the Strategic Plan, and it may not be able to achieve its objectives following implementation of such Strategic Plan, including partially offsetting the revenue loss from the communities it intends to transition with expense reductions to right-size operations, on the anticipated timeline or at all.

* This press release states that FVE intends to amend its management arrangements with DHC to transition certain senior living communities that FVE currently manages for DHC to new operators. Although FVE's Board of Directors and DHC's Board of Trustees, including the Independent Directors and Independent Trustees, have agreed in principal to the terms of the changes to the management arrangements described in this press release, definitive documentation related to these changes has not been entered into; therefore, the timing and terms thereof may be delayed or may change.

* Ms. Potter states that FVE is encouraged by positive momentum with move-ins and occupancy trends in March and April. However, these trends may not continue and occupancy could decline due to a variety of factors, including if FVE is again required, or determines, to place holds on admission of new residents at certain of its communities due to the COVID-19 pandemic.

* Ms. Potter's statement that FVE's financial position remains strong with $109.5 million of unrestricted cash with no borrowings outstanding on its revolving credit facility may imply that FVE will continue to have adequate liquidity. However, FVE's business remains subject to various risks, some of which are beyond FVE's control, including the disruption of the COVID-19 pandemic and economic downturn. In addition, FVE's ability to borrow under its revolving credit facility is subject to it satisfying certain conditions and limited to the amount of qualified collateral; the maximum borrowing capacity was $14.9 million as of March 31, 2021 and may be lower in amount or not available in the future.

The information contained in FVE's filings with the Securities and Exchange Commission, or SEC, including under "Risk Factors" in FVE's periodic reports, or incorporated therein, identifies other important factors that could cause FVE's actual results to differ materially from those stated in or implied by FVE's forward-looking statements. FVE'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, FVE does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.

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CONTACT: Olivia Snyder, Manager, Investor Relations (617) 796-8245