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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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) August 5, 2008

Capital Senior Living Corporation

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)


1-13445		75-2678809

(Commission File Number)		(IRS Employer Identification No.)

14160 Dallas Parkway Suite 300 Dallas, Texas		75254

(Address of Principal Executive Offices)		(Zip Code)

(972) 770-5600

(Registrant’s Telephone Number, Including Area Code)

(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 (see General Instruction A.2. below):

	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 August 5, 2008, Capital Senior Living Corporation (the “Company”) announced its financial results for the quarter ended June 30, 2008. The full text of the press release issued in connection with the announcement is attached hereto as Exhibit No. 99.1. This information being furnished under this Item 2.02 and Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 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, cash earnings, cash earnings 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 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 August 5, 2008.

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: August 5, 2008	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 August 5, 2008.

4 EX-99.1 2 d59134exv99w1.htm PRESS RELEASE exv99w1

Exhibit 99.1


		Capital Senior Living Corporation



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

CAPITAL SENIOR LIVING CORPORATION
REPORTS SECOND QUARTER 2008 RESULTS

DALLAS — (BUSINESS WIRE) — August 5, 2008 — Capital Senior Living Corporation (NYSE:CSU), one of the country’s largest operators of senior living communities, today announced operating results for the second quarter of 2008. Company highlights for the second quarter include:

Financial Highlights

•		Revenues of $49.0 million increased $2.1 million or approximately 5 percent from the second quarter of 2007.

•		Second quarter 2008 net income was $1.2 million or $0.05 per diluted share versus $0.8 million or $0.03 per diluted share in the second quarter of the prior year.

•		Adjusted EBITDAR (income from operations plus depreciation and amortization and facility lease expense) of $14.3 million increased approximately 7 percent from the prior year period.

•		Adjusted EBITDAR margin of 29.2 percent improved 60 basis points from the second quarter of 2007.

•		Adjusted net income was $1.3 million or $0.05 per diluted share in the second quarter of 2008 compared to adjusted net income of $1.2 million or $0.04 per diluted share in the second quarter of 2007. Adjusted net income for the second quarter of 2008 excludes a small residual write-off of due diligence costs related to a potential acquisition that the Company terminated in the first quarter. Adjusted net income for the second quarter of 2007 excludes a write-off of approximately $0.2 million of deferred loan costs as a result of refinancing $30.0 million of mortgage debt to fix and reduce the interest rate and excludes an approximate $0.2 million non-cash charge related to additional depreciation and amortization expense upon finalizing the purchase price allocation for eight communities acquired in 2006 by two joint ventures.

•		Adjusted cash earnings (net income plus depreciation and amortization) for the second quarter of 2008 were $4.4 million or $0.16 per diluted share versus $3.9 million or $0.15 per diluted share for the second quarter of 2007, with the adjustments noted above.

Operational Highlights

•		Average physical occupancy rate for the 61 stabilized communities was 87 percent.

•		Operating margins (before property taxes, insurance and management fees) were 48.7 percent in stabilized independent and assisted living communities.

CAPITAL/PAGE 2

•

At communities under management, same-store revenue increased 2.3 percent versus the second quarter of 2007 as a result of a 5.0 percent increase in average monthly rent. Same-community expenses increased 2.6 percent and net income increased 1.9 percent from the comparable period of the prior year. Incremental EBITDAR margin on same-store revenue increases was approximately 33 percent.

“We continue to focus on increasing shareholder value through the successful execution of our 2008 Business Plan,” said James A. Stroud, Chairman of the Company. “Despite a challenging operating environment, year-over-year results include a revenue increase of 5 percent, EBITDAR growth of 7 percent and a 60 basis point improvement in EBITDAR margin.”

OPERATING AND FINANCIAL RESULTS

For the second quarter of 2008, the Company reported revenue of $49.0 million, compared to revenue of $46.9 million in the second quarter of 2007, an increase of approximately $2.1 million or 5 percent. Resident and healthcare revenue increased from the second quarter of the prior year by approximately $1.1 million, or 3 percent. The number of consolidated communities increased from 49 in the second quarter of 2007 to 50 in the second quarter of 2008 with the addition of the Whitley Place community which was leased on January 31, 2008. Financial occupancy of the consolidated portfolio averaged 86.0 percent in the second quarter of 2008 with an average monthly rent of $2,456 per occupied unit. Affiliated management services revenue increased from $0.6 million in the second quarter of 2007 to $1.7 million in the second quarter of 2008, due to development and pre-marketing fees earned on three communities in joint ventures.

Revenues under management increased approximately 1 percent to $55.1 million in the second quarter of 2008 from $54.3 million in the second quarter of 2007. Revenues 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. There were 64 communities under management in both periods.

Operating expenses increased by $0.7 million from the second quarter of 2007. As a percentage of resident and healthcare revenues, operating expenses were 61.5 percent.

General and administrative expenses of $3.7 million exceeded the second quarter of the prior year by approximately $0.5 million. Nearly all of the increase was due to an unusually high rate of health insurance claims during the current quarter. 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. Claims during the quarter, were unusually high, exceeding claims recorded in the second quarter of 2007 by approximately $0.5 million. As a percentage of revenues under management, general and administrative expenses were 5.9 percent in the second quarter of 2008, excluding the effect of the health insurance claims.

CAPITAL/PAGE 3

Facility lease expenses were $6.3 million in the second quarter of 2008, approximately $0.3 million higher than the second quarter of 2007, reflecting 25 leased communities this quarter versus 24 last year, along with increases in contingent rent. The Company has reclassified the amortization of deferred gains on sale leaseback transactions from gain on sale of assets to a reduction of facility lease expense to better conform with industry practice.

Depreciation and amortization expense increased $0.3 million from the second quarter of the prior year, as a result of capital improvements at certain of the Company’s owned and leased facilities along with depreciation incurred this quarter related to new information systems which became operational on January 1, 2008.

Adjusted EBITDAR for the first quarter of 2008 was approximately $14.3 million, an increase of 7 percent from $13.4 million in the second quarter of 2007. Adjusted EBITDAR margin was 29.2 percent for the period, a 60 basis point improvement from the comparable period of the prior year.

Interest income was $0.1 million in the current quarter as the Company earned interest on cash balances and lease deposits. Interest expense was $3.0 million in the second quarter of 2008, compared to $3.2 million in the second quarter of 2007, reflecting lower debt outstanding due to principal amortization.

The Company reported a pre-tax profit of approximately $2.0 million in the second quarter of 2008 compared to a pre-tax profit of approximately $1.2 million in the second quarter of 2007. Adjusted pre-tax profit for the second quarter of 2008 was $2.1 million, excluding a small write-off of residual due diligence costs. Adjusted pre-tax profit for the second quarter of 2007 was $1.8 million, excluding the write-off of deferred loan costs and non-cash charges for two joint ventures.

The Company reported net income of $1.2 million or $0.05 per diluted share in the second quarter of 2008 versus net income of $0.8 million or $0.03 per diluted share in the second quarter of 2007. Excluding the adjustments noted above, the net income of $0.05 per diluted share in the second quarter of 2008 compares to net income of $0.04 per diluted share in the second quarter of 2007.

On this same basis, adjusted cash earnings (net income plus depreciation and amortization) were $4.4 million or $0.16 per diluted share in the second quarter of 2008, versus $3.9 million or $0.15 per diluted share in the second quarter of 2007.

For the first six months of 2008, the Company produced revenue of $97.5 million, compared to revenue of $93.1 million in the first six months of 2007, an increase of $4.4 million or approximately 5 percent. Adjusted EBITDAR for the first six months of 2008 was $28.7 million, an increase of $2.1 million or 8 percent from the $26.6 million reported for the first six months of 2007.

With the adjustments noted above, the Company’s results improved from net income of $2.2 million in the first six months of 2007 to net income of $2.8 million in the first six months of 2008. Cash earnings on this basis grew from $7.7 million, or $0.29 per

CAPITAL/PAGE 4

diluted share, in the first six months of 2007 to $8.9 million, or $0.33 per diluted share, in the first six months of 2008.

“Despite declines in occupancy, we have been able to continually improve our operating margins,” said Lawrence A. Cohen, Chief Executive Officer. “We are demonstrating positive results from leveraging our operating platform, increasing rents and tightly controlling expenses. Our 2008 Business Plan is focused on increasing capacity and levels of care along with steady improvement in net operating income per occupied unit.”

CAPITAL OVERVIEW AND FINANCING

Capital expenditures in the second quarter of 2008 were approximately $1.9 million. Of this amount, approximately $1.1 million represented maintenance spending at the property level. If annualized, this rate of spending would equal approximately $648 per unit.

The Company ended the quarter with approximately $26.1 million of cash and cash equivalents and approximately $187.5 million of mortgage debt at fixed interest rates averaging approximately 6.1 percent.

RECENT DEVELOPMENTS

On May 29, 2008, the Company announced that a Special Committee of its Board of Directors had engaged Banc of America Securities LLC (“BAS”) as its financial advisor to assist the Special Committee in exploring and considering a range of strategic alternatives for the Company. BAS is a nationally recognized investment banking firm with expertise in the senior living industry and is prominent in both healthcare and real estate.

2Q08 CONFERENCE CALL INFORMATION

The Company will host a conference call with senior management to discuss the Company’s second quarter 2008 financial results. The call will be held on Wednesday, August 6, 2008 at 11:00 a.m. Eastern Time.

The call-in number is 913-312-0701, confirmation code 7952446. A link to a simultaneous webcast of the teleconference will be available at www.capitalsenior.com through Windows Media Player or RealPlayer. To pre-check your system compatibility prior to the event go to this link: http://www.investorcalendar.com/aboutus/HelpDesk.asp

For the convenience of the Company’s shareholders and the public, the conference call will be recorded and available for replay starting August 6, 2008 at 2:00 pm Eastern Time, until August 13, 2008 at 8:00 p.m. Eastern Time. To access the conference call

CAPITAL/PAGE 5

replay, call 719-457-0820, confirmation code 7952446. The conference call will also be made available for playback via the Company’s corporate website, www.capitalsenior.com, and will be available until the next earnings release date.

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 64 senior living communities in 23 states with an aggregate capacity of approximately 9,400 residents, including 37 senior living communities which the Company owns or in which the Company has an ownership interest, 25 leased communities and 2 communities it manages for third parties. In the communities operated by the Company, 69 percent of residents live independently, 24 percent of residents require assistance with activities of daily living and 7 percent of residents live in continuing care retirement communities.

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, cash earnings, cash earnings 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 or Cameron Donahue or Brett Maas, Hayden Communications, Inc., at 646-653-1854 for more information.

CAPITAL/PAGE 6

CAPITAL SENIOR LIVING CORPORATION

CONSOLIDATED BALANCE SHEETS
(in thousands)


	June 30,		December 31,
	2008		2007
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	26,068	$	23,359
Accounts receivable, net		4,899		3,232
Accounts receivable from affiliates		2,050		846
Federal and state income taxes receivable		1,242		2,084
Deferred taxes		869		996
Assets held for sale		354		1,011
Property tax and insurance deposits		7,815		7,860
Prepaid expenses and other		3,077		4,526

Total current assets		46,374		43,914
Property and equipment, net		307,716		310,442
Deferred taxes		12,349		12,824
Investments in limited partnerships		7,224		6,199
Other assets, net		16,507		16,674

Total assets	$	390,170	$	390,053


LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,646	$	1,201
Accrued expenses		13,687		13,561
Current portion of notes payable		13,291		9,035
Current portion of deferred income		5,374		5,174
Customer deposits		1,819		2,024

Total current liabilities		35,817		30,995
Deferred income		21,661		23,168
Notes payable, net of current portion		179,305		185,733
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 26,632 and 26,596 in 2008 and 2007, respectively		266		266
Additional paid-in capital		129,653		129,159
Retained earnings		23,468		20,732

Total shareholders’ equity		153,387		150,157

Total liabilities and shareholders’ equity	$	390,170	$	390,053

CAPITAL/PAGE 7

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


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2008			2007			2008			2007
Revenues:
Resident and health care revenue	$	42,727		$	41,627		$	85,571		$	82,932
Unaffiliated management services revenue		46			73			88			161
Affiliated management services revenue		1,736			632			3,169			1,171
Community reimbursement revenue		4,523			4,549			8,721			8,843

Total revenues		49,032			46,881			97,549			93,107
Expenses:
Operating expenses (exclusive of facility lease expense and depreciation and amortization expense shown below)		26,265			25,534			52,871			50,919
General and administrative expenses		3,710			3,165			7,328			6,300
Facility lease expense		6,319			5,997			12,455			11,717
Stock-based compensation expense		264			229			493			480
Depreciation and amortization		3,082			2,781			6,115			5,526
Community reimbursement expense		4,523			4,549			8,721			8,843

Total expenses		44,163			42,255			87,983			83,785

Income from operations		4,869			4,626			9,566			9,322
Other income (expense):
Interest income		96			204			223			355
Interest expense		(3,041	)		(3,170	)		(6,106	)		(6,455	)
(Loss) gain on sale of assets		(4	)		15			596			82
Write-off of deferred loan costs		—			(351	)		—			(538	)
Other income (expense)		99			(108	)		152			(53	)

Income before provision for income taxes		2,019			1,216			4,431			2,713
Provision for income taxes		(773	)		(446	)		(1,695	)		(1,023	)

Net income	$	1,246		$	770		$	2,736		$	1,690

Per share data:
Basic net income per share	$	0.05		$	0.03		$	0.10		$	0.06

Diluted net income per share	$	0.05		$	0.03		$	0.10		$	0.06

Weighted average shares outstanding — basic		26,349			26,182			26,345			26,165

Weighted average shares outstanding — diluted		26,670			26,680			26,648			26,658

CAPITAL/PAGE 8

Capital Senior Living Corporation
Supplemental Information


	Communities						Resident Capacity						Units
	Q2 08			Q2 07			Q2 08			Q2 07			Q2 08			Q2 07
Portfolio Data
I. Community Ownership / Management
Consolidated communities
Owned		25			25			3,926			3,926			3,503			3,503
Leased		25			24			3,775			3,710			3,152			3,105
Joint Venture communities (equity method)		12			12			1,406			1,406			1,221			1,221
Third party communities managed		2			3			294			502			239			408

Total		64			64			9,401			9,544			8,115			8,237

Independent living								6,505			6,713			5,569			5,738
Assisted living								2,241			2,176			1,928			1,881
Continuing Care Retirement Communities								655			655			618			618

Total								9,401			9,544			8,115			8,237

II. Percentage of Operating Portfolio
Consolidated communities
Owned		39.1	%		39.1	%		41.8	%		41.1	%		43.2	%		42.5	%
Leased		39.1	%		37.5	%		40.2	%		38.9	%		38.8	%		37.7	%
Joint venture communities (equity method)		18.8	%		18.8	%		15.0	%		14.7	%		15.0	%		14.8	%
Third party communities managed		3.1	%		4.7	%		3.1	%		5.3	%		2.9	%		5.0	%

Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Independent living								69.2	%		70.3	%		68.6	%		69.7	%
Assisted living								23.8	%		22.8	%		23.8	%		22.8	%
Continuing Care Retirement Communities								7.0	%		6.9	%		7.6	%		7.5	%

Total								100.0	%		100.0	%		100.0	%		100.0	%

Selected Operating Results
I. Consolidated communities
Number of communities		50			49
Resident capacity		7,701			7,636
Unit capacity		6,655			6,608
Financial occupancy (1)		86.0	%		88.7	%
Revenue (in millions)		42.7			41.5
Operating expenses (in millions) (2)		23.6			23.0
Operating margin		45	%		45	%
Average monthly rent		2,456			2,339
II. Waterford / Wellington communities
Number of communities		17			17
Resident capacity		2,426			2,426
Unit capacity		2,132			2,132
Financial occupancy (1)		89.3	%		91.8	%
Revenue (in millions)		11.7			11.6
Operating expenses (in millions) (2)		6.4			6.3
Operating margin		45	%		46	%
Average monthly rent		2,064			1,980
III. Communities under management
Number of communities		64			64
Resident capacity		9,401			9,544
Unit capacity		8,115			8,237
Financial occupancy (1)		86.1	%		88.6	%
Revenue (in millions)		55.1			54.3
Operating expenses (in millions) (2)		29.7			29.3
Operating margin		46	%		46	%
Average monthly rent		2,602			2,458
IV. Same Store communities under management
Number of communities		63			63
Resident capacity		9,336			9,336
Unit capacity		8,068			8,068
Financial occupancy (1)		86.1	%		88.4	%
Revenue (in millions)		54.8			53.5
Operating expenses (in millions) (2)		29.5			29.0
Operating margin		46	%		46	%
Average monthly rent		2,601			2,477

CAPITAL/PAGE 9


	Communities						Resident Capacity		Units
	Q2 08			Q2 07			Q2 08	Q2 07	Q2 08	Q2 07
V. General and Administrative expenses as a percent of Total Revenues under Management
Second Quarter (3)		6.6	%		5.8	%
First Six Months of 2008 (3)		6.1	%		5.8	%
VI. Consolidated Debt Information (in thousands, except for interest rates) Excludes insurance premium financing
Fixed rate debt		187,485			190,610

Total debt		187,485			190,610

Weighted average interest rate		6.1	%		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 due diligence costs which were written off when a potential acquisition was terminated and costs incurred to avoid a proxy contest.

CAPITAL/PAGE 10

CAPITAL SENIOR LIVING CORPORATION
NON-GAAP RECONCILIATIONS


	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007

Adjusted EBITDAR
Net income from operations	$	4,869		$	4,626		$	9,566		$	9,322
Depreciation and amortization expense		3,082			2,781			6,115			5,526
Facility lease expense		6,319			5,997			12,455			11,717
Unusual legal/proxy costs		1			26			178			63
Write-off of Hearthstone acquisition costs		38			—			375			—

Adjusted EBITDAR	$	14,309		$	13,430		$	28,689		$	26,628


Adjusted EBITDAR Margin
Adjusted EBITDAR	$	14,309		$	13,430		$	28,689		$	26,628
Total revenues		49,032			46,881			97,549			93,107

Adjusted EBITDAR margin		29.2	%		28.6	%		29.4	%		28.6	%


Adjusted net income and net income per share
Net income	$	1,246		$	770		$	2,736		$	1,690
Unusual legal/proxy costs, net of tax		1			16			110			39
Write-off of Hearthstone acquisition costs, net of tax		23			—			231			—
Asset held for sale impairment, net of tax		—			—			83			—
Loss (gain) on sale of assets, net of tax		2			(9	)		(368	)		(51	)
Joint venture noncash charge, net of tax		—			157			—			154
Write-off deferred loan costs, net of tax		—			222			—			335

Adjust net income	$	1,272		$	1,156		$	2,792		$	2,167

Adjusted net income per share	$	0.05		$	0.04		$	0.10		$	0.08

Diluted shares outstanding		26,670			26,680			26,648			26,658

Adjusted cash earnings and cash earnings per share
Net income	$	1,246		$	770		$	2,736		$	1,690
Depreciation and amortization expense		3,082			2,781			6,115			5,526
Unusual legal/proxy costs, net of tax		1			16			110			39
Write-off of Hearthstone acquisition costs, net of tax		23			—			231			—
Asset held for sale impairment, net of tax		—			—			83			—
Loss (gain) on sale of assets, net of tax		2			(9	)		(368	)		(51	)
Joint venture noncash charge, net of tax		—			157			—			154
Write-off deferred loan costs, net of tax		—			222			—			335

Adjusted cash earnings	$	4,354		$	3,937		$	8,907		$	7,693

Adjusted cash earnings per share	$	0.16		$	0.15		$	0.33		$	0.29


Diluted shares outstanding		26,670			26,680			26,648			26,658

Adjusted pretax income
Pretax income as reported	$	2,019		$	1,216		$	4,431		$	2,713
Unusual legal/proxy costs		1		$	26		$	178		$	63
Write-off of Hearthstone acquisition costs		38			—			375			—
Asset held for sale impairment		—			—			134			—
Loss (gain) on sale of assets		4			(15	)		(596	)		(82	)
Joint venture noncash charge		—			248			—			248
Write-off deferred loan costs		—			351			—			538

Adjusted pretax income	$	2,062		$	1,826		$	4,522		$	3,480

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