8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 3, 2010

Capital Senior Living Corporation
(Exact name of registrant as specified in its charter)

Delaware	1-13445	75-2678809
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

14160 Dallas Parkway Suite 300 Dallas, Texas	75254
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (972) 770-5600

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.
    

On November 3, 2010, Capital Senior Living Corporation (the “Company”) announced its financial results for the quarter ended September 30, 2010 by issuing a press release. The full text of the press release issued in connection with the announcement is attached hereto as Exhibit No. 99.1. The information being furnished under this Item 2.02 and Exhibit 99.1 shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The press release contains, and may implicate, forward-looking statements regarding the Company and includes cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated.

In the press release, the Company’s management utilized non-GAAP financial measures to describe the Company’s adjusted EBITDAR, adjusted EBITDAR margin, CFFO, CFFO per share and other items. These non-GAAP financial measures are used by management to evaluate financial performance and resource allocation for its facilities and for the Company as a whole. These measures are commonly used as an analytical indicator within the senior housing industry, and also serve as a measure of leverage capacity and debt service ability. The Company has provided this information in order to enhance investors overall understanding of the Company’s financial performance and prospects. In addition, because the Company has historically provided this type of information to the investment community, the Company believes that including this information provides consistency in its financial reporting.

These non-GAAP financial measures should not be considered as measures of financial performance under generally accepted accounting principles, and items excluded from them are significant components in understanding and assessing financial performance. These measures should not be considered in isolation or as an alternative to net income, cash flows generated by operating, investing, or financing activities, earnings per share or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. Because these measures are not measurements determined in accordance with generally accepted accounting principles and are thus susceptible to varying calculations, these measures as presented may not be comparable to other similarly titled measures of other companies.

Item 7.01  Regulation FD Disclosure.

Attached hereto as Exhibit 99.2 is an updated slideshow presentation of the Company.

By filing this Current Report on Form 8-K, the Company does not acknowledge that disclosure of this information is required by Regulation FD or that the information was material or non-public before the disclosure. The Company assumes no obligation to update or supplement forward-looking statements in this slideshow that become untrue because of new information, subsequent events or otherwise.

Item 9.01  Financial Statements and Exhibits.

(a)   Not applicable.

(b)   Not applicable.

(c)   Not applicable.

(d)   Exhibits.

The following exhibit to this Current Report on Form 8-K is not being filed but is being furnished pursuant to Item 9.01:

99.1	Press Release dated November 3, 2010.
99.2	Capital Senior Living Corporation updated slideshow presentation

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: November 3, 2010

Capital Senior Living Corporation

By: /s/ Ralph A. Beattie
Name: Ralph A. Beattie
Title: Executive Vice President and
Chief Financial Officer

EXHIBIT INDEX

The following exhibit to this Current Report on Form 8-K is not being filed but is being furnished pursuant to Item 9.01:

99.1	Press Release dated November 3, 2010.
99.2	Capital Senior Living Corporation updated slideshow presentation

EX-99.1

Exhibit 99.1

Capital
Senior
Living
Corporation

For Immediate Release Contact: Ralph A. Beattie 972/770-5600

CAPITAL SENIOR LIVING CORPORATION
REPORTS THIRD QUARTER 2010 RESULTS

DALLAS — (BUSINESS WIRE) —November 3, 2010 — Capital Senior Living Corporation (the “Company”) (NYSE:CSU), one of the country’s largest operators of senior living communities, today announced operating results for the third quarter of 2010. Company highlights for the third quarter include:

Highlights

• Adjusted Cash From Facility Operations (“CFFO”) increased 69 percent to $5.6 million, or $0.21 per share, in the third quarter of 2010 versus $3.3 million, or $0.13 per share, for the third quarter of 2009.

• Revenue increased from the third quarter of 2009 by 11 percent to $53.6 million.

• Consolidated average occupancy was 84.7 percent in the third quarter of 2010, a 90 basis point increase from the second quarter of 2010 and an 80 basis point increase from the third quarter of 2009.

• Adjusted EBITDAR improved over the third quarter of 2009 by $2.3 million, or 16 percent, to $16.7 million. EBITDAR margin improved to 31.1 percent from 29.8 percent.

• In September, the Company added 12 high-quality leased assisted living communities to its portfolio, expanding total resident capacity by 764 seniors and the Company’s assisted living capacity from 26 percent to 32 percent of total capacity.

“We are pleased to report an increase in occupancy, an increase in our resident capacity, and an increase in our mix to higher levels of care during the third quarter,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “We received only a small benefit from completing the Signature transaction in the month of September, but when these results are fully reflected along with the two transactions completed in the second quarter, annual revenues will have grown by $52 million, EBITDAR by over $22 million, and CFFO by over $3 million, or $0.12 per share. We remain encouraged by the fact that new supply of senior housing communities is practically non-existent as needs-driven demand continues to grow.”

Significant Transactions

In September, the Company completed the acquisition from Signature Assisted Living of Texas, LLC (“Signature”) of 12 communities leased from Health Care REIT, Inc. (NYSE: HCN). The 12 leased communities are high-quality purpose-built assisted living and memory care facilities located in Texas. The communities average less than three years of age and are currently 92 percent occupied.

Annualizing the 12 assisted living communities’ revenues yields approximately $31.1 million, with EBITDAR of approximately $14.2 million, net of incremental general and administrative expenses. EBITDAR is expected to exceed the annual cash payment due HCN by approximately $5.3 million, and the transaction is expected to increase the Company’s CFFO by approximately $2.8 million, or $0.10 per share.

Financial Results

For the third quarter of 2010, the Company reported revenue of $53.6 million, compared to revenue of $48.1 million in the third quarter of 2009. Resident and healthcare revenue increased from the third quarter of the prior year by approximately $7.7 million, largely as a result of converting eight communities previously owned in joint ventures to leased communities and the addition of 12 new leased communities late in the quarter. The number of consolidated communities increased from 50 in the third quarter of 2009 to 70 in the third quarter of 2010.

Average monthly rent was $2,652 per occupied unit in the third quarter of 2010, an increase of $106, or 4.2 percent, over the third quarter of 2009. Financial occupancy of the consolidated portfolio averaged 84.7 percent in the third quarter of 2010, 80 basis points higher than the third quarter of 2009 and 90 basis points higher than the second quarter of 2010. Excluding three communities with units being converted to higher levels of care, financial occupancy of the consolidated portfolio averaged 86.4 percent.

For the first nine months of 2010, the Company produced revenue of $152.0 million, compared to revenue of $143.3 million in the first nine months of 2009. Resident and healthcare revenue increased $12.3 million from the first nine months of the prior year.

CAPITAL/Page 2

Revenue under management was $58.7 million in the third quarter of 2010 compared to $55.7 million in the third quarter of 2009. Revenue under management includes revenue generated by the Company’s consolidated communities, communities owned in joint ventures and communities owned by third parties that are managed by the Company. Communities under management increased by 12 with the completion of the Signature transaction.

Operating expenses for the third quarter of 2010 were $31.2 million, an increase of $4.5 million from the third quarter of 2009, primarily due to 20 additional communities now being consolidated. In addition, a particularly hot summer resulted in a nine percent increase in utility costs. As a percentage of resident and healthcare revenue, operating expenses were 61.9 percent in the third quarter of 2010 compared to 62.4 percent in the third quarter of 2009, an improvement of 50 basis points, despite the increased costs.

General and administrative expenses of $3.2 million were approximately $0.8 million higher than the third quarter of 2009. The third quarter of the prior year reflected an unusually low level of expenses. The Company is self-insured for the costs of employee and dependent medical benefits and purchases stop-loss protection on an individual and aggregate basis. This self-insurance program reduces the Company’s health insurance costs. Health care costs in the third quarter of 2010 exceeded the third quarter of 2009 by approximately $0.6 million but are roughly equal on a year-to-date basis. General and administrative expenses as a percentage of revenues under management were 5.3 percent.

Adjusted EBITDAR for the third quarter of 2010 was approximately $16.7 million, an increase of $2.3 million or 16 percent from the third quarter of 2009. Adjusted EBITDAR margin was 31.1 percent for the period, an improvement of 1.3 percentage points from the third quarter of 2009. Adjusted EBITDAR for the first nine months of 2010 was $47.7 million, compared to $42.7 million for the first nine months of 2009. Adjusted EBITDAR margin for the first nine months of 2010 was 31.4 percent compared to 29.8 percent for the first nine months of 2009.

Net income was $0.5 million, or $0.02 per share, in the third quarter of 2010, versus $0.8 million, or $0.03 per share, in the third quarter of 2009. Excluding costs related to and amortization of resident leases acquired in recently-completed lease transactions, net income for the third quarter of 2010 was $0.7 million, or $0.03 per share. Net income for the third quarter was significantly impacted by non-controllable expenses related to additional medical benefit claims paid and higher utility costs at our consolidated communities. The Company earned adjusted net income of $2.7 million or $0.10 per diluted share in the first nine months of 2010, compared to adjusted net income of $2.0 million or $0.08 per diluted share in the first nine months of 2009.

Adjusted CFFO was $5.6 million or $0.21 per diluted share in the third quarter of 2010, versus $3.3 million or $0.13 per diluted share in the third quarter of 2009. Adjusted CFFO was $14.1 million or $0.53 per diluted share in the first nine months of 2010, compared to $10.9 million or $0.42 per diluted share in the first nine months of 2009. Over $2.0 million of third quarter CFFO was attributable to the Company amending prior year tax returns to recover refunds of taxes paid.

CAPITAL/Page 3

Operating Activities

At communities under management, excluding three communities undergoing conversions, same-store revenue increased 1.0 percent versus the third quarter of 2009 as a result of a 1.5 percent increase in average monthly rent. Same-community expenses increased 1.0 percent and net income increased 1.3 percent from the comparable period of the prior year.

Capital expenditures for the quarter were approximately $2.3 million, representing $1.6 million of investment spending and $0.7 million of recurring capital expenditures. If annualized, spending for recurring capital expenditures equaled approximately $400 per unit.

Balance Sheet

The Company ended the quarter with $39.4 million of cash and cash equivalents, including restricted cash. On a year-to-year basis, cash has increased by $8.2 million while debt has been reduced by $5.6 million.

As of September 30, 2010, the Company financed its 25 owned communities with 24 mortgages totaling $174.9 million at fixed interest rates averaging 6.0 percent. The Company has no mortgage maturities prior to the third quarter of 2015.

Q3 2010 Conference Call Information

The Company will host a conference call with senior management to discuss the Company’s third quarter 2010 financial results. The call will be held on Thursday, November 4, 2010 at 11:00 a.m. Eastern Time. The Company’s earnings release announcing third quarter 2010 financial results is scheduled to be released to news services the evening of Wednesday, November 3, 2010.

The call-in number is 913-312-0949, confirmation code 5349994. A link to a simultaneous webcast of the teleconference will be available at www.capitalsenior.com through Windows Media Player or RealPlayer.

For the convenience of the Company’s shareholders and the public, the conference call will be recorded and available for replay starting November 4, 2010 at 2:00 p.m. Eastern Time, until November 13, 2010 at 8:00 p.m. Eastern Time. To access the conference call replay, call 719-457-0820, confirmation code 5349994. The conference call will also be made available for playback via the Company’s corporate website, www.capitalsenior.com.

CAPITAL/Page 4

About the Company

Capital Senior Living Corporation is one of the nation’s largest operators of residential communities for senior adults. The Company’s operating philosophy emphasizes a continuum of care, which integrates independent living, assisted living and home care services, to provide residents the opportunity to age in place. The Company currently operates 77 senior living communities in 23 states with an aggregate capacity of approximately 11,000 residents.

Safe Harbor

The forward-looking statements in this release are subject to certain risks and uncertainties that could cause results to differ materially, including, but not without limitation to, the Company’s ability to find suitable acquisition properties at favorable terms, financing, licensing, business conditions, risks of downturns in economic conditions generally, satisfaction of closing conditions such as those pertaining to licensure, availability of insurance at commercially reasonable rates, and changes in accounting principles and interpretations among others, and other risks and factors identified from time to time in our reports filed with the Securities and Exchange Commission.

This release contains certain financial information not derived in accordance with generally accepted accounting principles (GAAP), including adjusted EBITDAR, adjusted EBITDAR margin, Adjusted CFFO, Adjusted CFFO per share and other items. The Company believes this information is useful to investors and other interested parties. Such information should not be considered as a substitute for any measures derived in accordance with GAAP, and may not be comparable to other similarly titled measures of other companies. Reconciliation of this information to the most comparable GAAP measures is included as an attachment to this release.

Contact Ralph A. Beattie, Chief Financial Officer, at 972-770-5600 for more information.

CAPITAL/Page 5

CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)

	September 30,			December 31,
	2010			2009
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	33,055		$	28,972
Restricted cash		6,327			2,167
Accounts receivable, net		4,029			3,340
Accounts receivable from affiliates		346			424
Federal and state income taxes receivable		3,242			1,493
Deferred taxes		1,147			1,208
Assets held for sale		354			354
Property tax and insurance deposits		10,128			8,632
Prepaid expenses and other		3,830			4,010
Total current assets		62,458			50,600
Property and equipment, net		296,561			300,678
Deferred taxes		4,262			7,781
Investments in joint ventures		2,611			6,536
Other assets, net		18,900			14,908
Total assets	$	384,792		$	380,503
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,528		$	2,037
Accounts payable to affiliates		2			—
Accrued expenses		17,521			12,287
Current portion of notes payable		6,564			9,347
Current portion of deferred income		7,197			6,838
Current portion of capital lease obligations		141			—
Customer deposits		1,388			1,295
Total current liabilities		34,341			31,804
Deferred income		15,340			16,747
Capital lease obligations, net of current portion		99			—
Other long-term liabilities		1,992			—
Notes payable, net of current portion		171,041			173,822
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $.01 par value:
Authorized shares — 15,000; no shares issued or outstanding		—			—
Common stock, $.01 par value:
Authorized shares — 65,000; issued and outstanding shares 27,080 and 26,945 in 2010 and 2009, respectively		274			273
Additional paid-in capital		132,760			131,576
Retained earnings		29,879			27,215
Treasury stock, at cost — 350 shares		(934	)		(934	)
Total shareholders’ equity		161,979			158,130
Total liabilities and shareholders’ equity	$	384,792		$	380,503

See accompanying notes to consolidated financial statements.

CAPITAL/Page 6

CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands, except per share data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2010			2009			2010			2009
Revenues:
Resident and health care revenue	$	50,451		$	42,801		$	140,253		$	127,950
Unaffiliated management services revenue		18			18			54			54
Affiliated management services revenue		418			692			1,625			1,992
Community reimbursement revenue		2,713			4,603			10,089			13,298
Total revenues		53,600			48,114			152,021			143,294
Expenses:
Operating expenses (exclusive of facility lease expense and depreciation and amortization expense shown below)		31,209			26,718			85,904			78,707
General and administrative expenses		3,246			2,456			9,001			8,820
Facility lease expense		8,910			6,502			23,217			19,441
Stock-based compensation expense		226			282			783			902
Depreciation and amortization		3,536			3,334			10,487			9,862
Community reimbursement expense		2,713			4,603			10,089			13,298
Total expenses		49,840			43,895			139,481			131,030
Income from operations		3,760			4,219			12,540			12,264
Other income (expense):
Interest income		13			18			32			56
Interest expense		(2,815	)		(2,967	)		(8,440	)		(8,871	)
Gain on settlement of debt		—			—			684			—
Other income		(9	)		(14	)		8			59
Income before provision for income taxes		949			1,256			4,824			3,508
Provision for income taxes		(468	)		(506	)		(2,160	)		(1,509	)
Net income	$	481		$	750		$	2,664		$	1,999
Per share data:
Basic net income per share	$	0.02		$	0.03		$	0.10		$	0.07
Diluted net income per share	$	0.02		$	0.03		$	0.10		$	0.07
Weighted average shares outstanding — basic		26,607			26,222			26,574			26,251
Weighted average shares outstanding — diluted		26,703			26,351			26,671			26,339

CAPITAL/Page 7

CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)

	Nine Months Ended
	September 30,
	2010			2009
Operating Activities
Net income	$	2,664		$	1,999
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		10,487			9,851
Amortization		—			11
Amortization of deferred financing charges		248			253
Amortization of deferred lease costs, net		422			277
Deferred income		(2,232	)		(2,174	)
Deferred income taxes		3,580			1,133
Equity in the earnings of unconsolidated joint ventures		(8	)		(59	)
Gain on settlement of debt		(684	)		—
Provision for bad debts		139			257
Stock based compensation expense		783			902
Changes in operating assets and liabilities:
Accounts receivable		(828	)		(897	)
Accounts receivable from affiliates		78			631
Property tax and insurance deposits		(1,653	)		742
Prepaid expenses and other		135			2,532
Other assets		(2,719	)		(489	)
Accounts payable		(507	)		(61	)
Accrued expenses		5,234			(129	)
Federal and state income taxes receivable		(1,749	)		1,899
Customer deposits		93			(206	)
Net cash provided by operating activities		13,483			16,472
Investing Activities
Capital expenditures		(6,370	)		(6,343	)
Acquisition of Signature Transaction		(2,000	)		—
Distributions from joint ventures		5,117			606
Net cash used in investing activities		(3,253	)		(5,737	)
Financing Activities
Increase in restricted cash		(4,160	)		(2,165	)
Proceeds from notes payable		3,591			1,459
Lease incentive from Signature Transaction		2,000			—
Repayments of notes payable		(8,220	)		(6,563	)
Increase in capital lease obligations		240			—
Cash proceeds from the issuance of common stock		350			5
Excess tax benefits on stock options exercised		52			—
Purchases of treasury stock		—			(934	)
Net cash used in financing activities		(6,147	)		(8,198	)
Increase in cash and cash equivalents		4,083			2,537
Cash and cash equivalents at beginning of period		28,972			25,880
Cash and cash equivalents at end of period	$	33,055		$	28,417
Supplemental Disclosures
Cash paid during the period for:
Interest	$	8,261		$	8,639
Income taxes	$	1,094		$	459

CAPITAL/Page 8

Capital Senior Living Corporation
Supplemental Information

	Communities						Resident Capacity						Units
	Q3 10			Q3 09			Q3 10			Q3 09			Q3 10			Q3 09
Portfolio Data
I. Community Ownership / Management
Consolidated communities
Owned		25			25			4,058			4,058			3,503			3,503
Leased		45			25			5,395			3,892			4,374			3,104
Joint Venture communities (equity method)		7			15			1,347			2,086			1,061			1,654
Third party communities managed		1			1			148			148			115			115
Total		78			66			10,948			10,184			9,053			8,376
Independent living								6,784			6,784			5,695			5,695
Assisted living								3,449			2,685			2,740			2,063
Continuing Care Retirement Communities								715			715			618			618
								10,948			10,184			9,053			8,376
Total
II. Percentage of Operating Portfolio
Consolidated communities
Owned		32.1	%		37.9	%		37.1	%		39.8	%		38.7	%		41.8	%
Leased		57.7	%		37.9	%		49.3	%		38.2	%		48.3	%		37.1	%
Joint venture communities (equity method)		9.0	%		22.7	%		12.3	%		20.5	%		11.7	%		19.7	%
Third party communities managed		1.3	%		1.5	%		1.4	%		1.5	%		1.3	%		1.4	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Independent living								62.0	%		66.6	%		62.9	%		68.0	%
Assisted living								31.5	%		26.4	%		30.3	%		24.6	%
Continuing Care Retirement Communities								6.5	%		7.0	%		6.8	%		7.4	%
Total								100.0	%		100.0	%		100.0	%		100.0	%

CAPITAL/Page 9

Capital Senior Living Corporation
Supplemental Information

Selected Operating Results	Q3 10			Q3 09
I. Owned communities
Number of communities		25			25
Resident capacity		4,058			4,058
Unit capacity		3,503			3,503
Financial occupancy (1)		84.0	%		85.8	%
Revenue (in millions)		20.3			20.7
Operating expenses (in millions) (2)		11.7			11.5
Operating margin		42	%		44	%
Average monthly rent		2,309			2,299
II. Leased communities
Number of communities		45			25
Resident capacity		5,395			3,892
Unit capacity		4,374			3,104
Financial occupancy (1)		85.3	%		81.7	%
Revenue (in millions)		30.0			22.2
Operating expenses (in millions) (2)		16.4			12.3
Operating margin		45	%		45	%
Average monthly rent		2,948			2,830
III. Consolidated communities
Number of communities		70			50
Resident capacity		9,453			7,950
Unit capacity		7,877			6,607
Financial occupancy (1)		84.7	%		83.9	%
Revenue (in millions)		50.3			42.9
Operating expenses (in millions) (2)		28.1			23.8
Operating margin		44	%		45	%
Average monthly rent		2,652			2,546
IV. Communities under management
Number of communities		78			66
Resident capacity		10,948			10,184
Unit capacity		9,053			8,376
Financial occupancy (1)		82.1	%		80.7	%
Revenue (in millions)		58.7			55.7
Operating expenses (in millions) (2)		32.5			30.6
Operating margin		45	%		45	%
Average monthly rent		2,758			2,720
V. Same Store communities under management (excluding 3 communities with conversions)
Number of communities		60			60
Resident capacity		9,103			9,103
Unit capacity		7,519			7,519
Financial occupancy (1)		85.0	%		85.3	%
Revenue (in millions)		53.0			52.9
Operating expenses (in millions) (2)		29.0			28.2
Operating margin		45	%		47	%
Average monthly rent		2,727			2,716
VI. General and Administrative expenses as a percent of Total Revenues under Management
Third Quarter (3)		5.3	%		4.4	%
First Nine Months (3)		5.1	%		5.3	%
VII. Consolidated Debt Information (in thousands, except for interest rates) Excludes insurance premium financing
Total fixed rate debt		174,920			183,212
Weighted average interest rate		6.0	%		6.1	%

(1)	Financial occupancy represents actual days occupied divided by total number of available days during the month of the quarter.
(2)	Excludes management fees, insurance and property taxes.
(3)	Excludes acquisition costs incurred for the Midwest and Signature transactions.

CAPITAL/Page 10

CAPITAL SENIOR LIVING CORPORATION
NON-GAAP RECONCILIATIONS

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2010			2009			2010			2009
Adjusted EBITDAR
Net income from operations	$	3,760		$	4,219		$	12,540		$	12,264
Depreciation and amortization expense		3,536			3,334			10,487			9,862
Stock-based compensation expense		226			282			783			902
Facility lease expense		8,910			6,502			23,217			19,441
Provision for bad debts		8			—			139			257
Casualty losses		—			—			161			—
Transaction costs		223			—			369			—
Adjusted EBITDAR	$	16,663		$	14,337		$	47,696		$	42,726
Adjusted EBITDAR Margin
Adjusted EBITDAR	$	16,663		$	14,337		$	47,696		$	42,726
Total revenues		53,600			48,114			152,021			143,294
Adjusted EBITDAR margin		31.1	%		29.8	%		31.4	%		29.8	%
Adjusted net income and net income per share
Net income	$	481		$	750		$	2,664		$	1,999
Casualty losses, net of tax		—			—			101			—
Transaction costs, net of tax		140			—			232			—
Gain on settlement of debt, net of tax		—			—			(431	)		—
Resident lease amortization, net of tax		88			—			88			—
Adjusted net income	$	709		$	750		$	2,654		$	1,999
Adjusted net income per share	$	0.03		$	0.03		$	0.10		$	0.08
Diluted shares outstanding		26,703			26,351			26,671			26,339
Adjusted CFFO and Adjusted CFFO per share
Net cash provided by operating activities	$	2,724		$	5,096		$	13,483		$	16,472
Changes in operating assets and liabilities		3,358			(1,268	)		1,916			(4,022	)
Recurring capital expenditures		(601	)		(505	)		(1,667	)		(1,515	)
CFFO	$	5,481		$	3,323		$	13,732		$	10,935
Casualty losses, net of tax		—			—			101			—
Transaction costs, net of tax		140			—			232			—
Adjusted CFFO	$	5,621		$	3,323		$	14,065		$	10,935
Adjusted CFFO per share	$	0.21		$	0.13		$	0.53		$	0.42

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CAPITAL/Page 11

EX-99.2

Exhibit 99.2

0 Capital Senior Living Corporation

1 Forward-Looking Statements The forward-looking statements in this presentation are subject to certain risks and uncertainties that could cause results to differ materially, including, but not without limitation to, the Company's ability to complete the refinancing of certain of our wholly owned communities, realize the anticipated savings related to such financing, find suitable acquisition properties at favorable terms, financing, licensing, business conditions, risks of downturns in economic conditions generally, satisfaction of closing conditions such as those pertaining to licensures, availability of insurance at commercially reasonable rates and changes in accounting principles and interpretations among others, and other risks and factors identified from time to time in our reports filed with the Securities and Exchange Commission The Company assumes no obligation to update or supplement forward-looking statements in this presentation that become untrue because of new information, subsequent events or otherwise.

2 Company Overview Capital Senior Living owns and/or operates 77 communities in 23 states with the ability to serve 11,000 residents70 of these communities are owned or leased with resident capacity of 9,453Achieved 95% approval rating in 2009 residents' satisfaction survey Owned Leased Joint Venture 0.39 0.49 0.12 Independent living Assisted living CCRC 0.62 0.315 0.065 Units by Ownership Type Resident Capacity Mix

3 The Capital Advantage: Senior Living Options Average 131 units per IL community with large common areas and amenitiesSupportive services, wellness programs, social, recreational, and educational events Average monthly rate of $2,200 100% private pay Average length of resident stay is 34 months Independent Living - 61% of Portfolio

4 The Capital Advantage: Senior Living Options Average 66 units per AL community Assistance with activities of daily living such as medication reminders, bathing, dressing and grooming Average monthly rate of $3,400 96% private pay Average length of resident stay is 26 months Assisted Living - 32% of Portfolio

5 Resident Demographics at CSU Communities Average age of resident: 85 yearsAverage age of resident moving in: 82 yearsAverage stay period: 2-3 yearsPercent of female residents: 80%Resident turnover is primarily attributed to death or need for higher care

6 The Capital Advantage: Established Operating Platform (Resident Capacity by State) CA. 407 AR. 173 AZ. 189 CT. 178 FL. 182 IA. 122 IL. 648 IN. 1,227 KS. 169 LA. 136 MI. 346 MN. 176 MO. 348 MS. 143 NC. 463 SC. 436 NE. 596 NJ. 98 NY. 387 OH. 1,228 OK. 143 TX. 2,852 VA. 153

7 The Capital Advantage: Favorable Demographics US population 75+ years old is estimated to grow by 3.8 million through 2015Only 1.8 million units serving a population of 18.6 million seniorsCurrent 9.6% penetration rate implies demand growth of 45,000 units per year 2007 2015 East 18.6 22.4 (Population MM) Source: Centers for Medicare & Medicaid Services, Office of the Actuary US Seniors Population Trends (75+ years old) Implied demand growth of 45,000 units per year

8 The Capital Advantage: Favorable Supply Trends Source: 2010 ASHA/NIC Seniors Housing Construction Trends Report 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 14629 21895 24810 27007 22342 23566 11651 11165 9442 11513 13002 18089 25345 37129 45086 42569 32590 22551 19247 15185 11161 14182 12579 11855 15187 Net Growth in Units - Private Pay Seniors Housing (IL/AL) 66% decline

9 The Capital Advantage: Competitive Strengths Experienced on-site, regional, and corporate managementLarger company economies of scale and systems that yield operating efficiencies in highly fragmented industryStrong institutional relationships (debt and equity) with flexible ownership structuresNimble platform and organizational structure with regional operating centers in geographically concentrated marketsSolid reputation in industry and 95% resident satisfactionDisciplined underwriting and successful execution of transactionsOperate multiple levels of careSolid balance sheet

10 The Capital Advantage: Strategy Maximize the value of our operations.Enhance geographic concentration and maximize competitive strengths within each of our marketsIncrease levels of care through conversions to AL or MC units, acquisition of communities with levels of care and expansion of ancillary servicesCapitalize on the fragmented nature of the senior living industry with its limited access to capital, demographic demand and constrained supply to strategically expand operationsLeverage our existing base of operations, strong institutional relationships and proven track record.

11 2010 Business PlanIncrease occupancy and rateExpense ManagementExternal GrowthJV AcquisitionsLeasesDirect acquisitions into Company This 2010 Business Plan is focused on operations, growth and enhancing shareholder value.

12 Growth Initiatives: Joint Venture Acquisitions Joint venture partnersBlackstone Real Estate AdvisorsGE Healthcare Financial ServicesPrudential Real Estate InvestorsSeven communities are owned with joint venture partnersCo-invest with joint venture partners to participate in economics:10% Capital Senior Living90% JV PartnersEarn management fees, return on equity investment and potential for additional incentives

13 Example of Joint Venture Economics Venture CSU Partner NOI $ 8,000,000 Cap Rate 8.0% Purchase Price $100,000,000 Debt $ 70,000,000 Equity $ 30,000,000 $3,000,000 $27,000,000 Revenues $ 24,000,000 Mgt. Fees (5%) $1,200,000 ROE (14.8%) $ 445,000 $ 4,005,000 Total First Year Return $1,645,000 $ 4,005,000 Total Return % 54.8% 14.8%

14 Growth Initiatives: Acquisition/Lease Transactions Example of $100 million acquisition/lease transaction:

15 Recent Significant Transactions Incremental Impact Incremental Impact Incremental Impact (in millions, except number of properties)

16 Income Statement: Q3 Comparison As adjusted in press release

17 Since 2006, CSU has significantly strengthened its balance sheetReduced total mortgage debt by $75.0 millionRefinanced or retired $162 million of variable rate debtReduced average interest rate from 7.5% to 6.0% fixedNo mortgage maturities through July 2015 on all fixed rate debt Balance Sheet Strength

18 Balance Sheet Balance Sheet As of September 30, 2010 (in millions) As of September 30, 2010 (in millions)

19 Investment Highlights Favorable demographics and attractive industry fundamentalsExperienced management team with demonstrated ability to operate, acquire and developPredominately private pay with minimal federal regulationStrong same-store community net income growthAcquisition opportunities in highly fragmented industryExisting infrastructure results in low marginal integration costFinancial leverage through joint venture partners and REITSConversion initiatives with significant revenue and margin growth

20 Capital Senior Living Corporation