Emeritus shares fall after 3Q loss reported

AP News
Posted: Nov 10, 2009 12:44 PM

Shares of assisted-living services provider Emeritus Corp. fell Tuesday after the company reported a $16 million loss even though occupancy at its centers increased in the third quarter.

Emeritus said late Monday that its loss for common shareholders was 41 cents per share, compared with a loss of $23.1 million, or 59 cents per share, a year earlier.

The company said the latest loss would have been about $8.4 million excluding a non-cash impairment charge of $1.9 million and a rise in costs for workers compensation and health insurance.

Revenue rose 16.7 percent to $222.7 million.

The chain's occupancy rate inched higher to 87.2 percent from 86.6 percent a year earlier, and the company said it was even higher, 88.8 percent, on the last day of the quarter.

The company said revenue per location open at least one year increased 3.4 percent.

President and co-CEO Granger Cobb said gains in occupancy would give the company more power to raise prices as demand improves. He also said the strength of the company supported efforts to grow through acquisitions.

Shares of Emeritus fell $2.43, or 12 percent, to $18.22 in midday trading.