Sunrise first quarter earnings tumble

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Sunrise Senior Living Inc., a major provider of senior living services, announced Tuesday its first-quarter diluted earnings per share fell to $0.37, compared to $0.60 last year for the same quarter. The decrease reflects the anticipated reduction in income from property sales of $11.5 million.

Earnings in the first quarter declined 42% to $8 million compared to $13.9 million last year. Operating revenues rose 10% to $390 million, compared to $354 million last year in the same quarter. The decrease in income from property sales was partially offset by growth in Sunrise's management services operations and lower net interest expense, the company said.

It reaffirmed its previous earnings per share guidance for the second quarter of $0.36 to $0.38 per share. Its expectations for the second quarter do not assume any income from property sales or one-time acquisition costs related to The Fountains and Greystone acquisitions.

These recently announced acquisitions "will further strengthen Sunrise" said Paul Klaassen, Sunrise's CEO. "When combined with our record number of new communities under construction, our growth in 2005 will be very strong."