Emeritus Senior Living Sees More Home Health Potential
Emeritus Senior Living (NYSE: ESC), a national operator of 500 senior living properties, says it is seeking expansion into the home healthcare market.
The company has recently invested in home health through the 91% acquisition of Nurse on Call Home Health Care for $102 million last year and is seeing success as well as expansion opportunity, the company’s executives said during a quarterly earnings conference call this week.
“We continue to expect a roughly 20% improvement in cash from facility operations for the full year 2013. During the quarter we welcomed 39 new communities into the Emeritus family; we also continue to generate solid growth in home healthcare services, which we have expanded to now include Arizona and Texas,” said Emeritus Chief Financial Officer Robert Bateman.
The company’s participation in the home healthcare sector includes the $102 million acquisition and integration of Nurse On Call Home Health Care last year, which is tracking expectations, and which Emeritus is now expanding into the two new states with four new branches in Texas and one in Arizona.
“In Florida, Nurse On Call was already established outside the walls of senior living communities, they had very little presence within senior living communities,” Emeritus President and CEO Granger Cobb said. “As we move into this other states, we’re using our platform to help facilitate their growth outside the walls into the greater marketplace. So it’s a little bit of a different pattern in terms of the growth. But at the end of the day, we expect to get to the same place where probably 20% to 25% of the revenues come from within our Senior Living communities and the rest comes from external services that are delivered outside the communities.”
The company posted a net loss attributable to shareholders of $27.8 million, down from a net loss of $16.2 million during the same period in 2012. Community and management fee revenues increased rose 47% to $484.5 million, with an uptick in cash flow from operations.
Written by Elizabeth Ecker