8-K

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)      March 10, 2009                    

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 March 10, 2009, Capital Senior Living Corporation (the “Company”) announced its financial results for the quarter ended December 31, 2008 and fiscal year 2008 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, 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 March 10, 2009.

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: March 10, 2009	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 March 10, 2009.

EX-99.1

Exhibit 99.1

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

CAPITAL SENIOR LIVING CORPORATION
REPORTS FOURTH QUARTER AND FULL YEAR 2008 RESULTS

DALLAS – (BUSINESS WIRE) – March 10, 2009 – Capital Senior Living Corporation (NYSE:CSU), one of the country’s largest operators of senior living communities, today announced operating results for the fourth quarter and full year 2008. Company highlights for the fourth quarter and 2008 fiscal year include:

Financial Highlights – Fourth Quarter

• Revenues were $48.0 million in the fourth quarter of 2008 compared to $48.2 million in the fourth quarter of 2007.

• Adjusted EBITDAR (income from operations plus depreciation and amortization and facility lease expense) was $13.7 million compared to $14.9 million in the prior year period. Adjusted EBITDAR in the fourth quarter of 2008 excludes unusual or non-operating items such as the write-off of preacquisition costs, property tax adjustments, separation pay, casualty losses and adjustments to deferred revenue as itemized on the last page of this release. Adjusted EBITDAR in the fourth quarter of 2007 excludes the write-off of preacquisition costs and property tax adjustments.

• Adjusted EBITDAR margin was 28.5 percent compared to 30.9 percent in the fourth quarter of the prior year.

• Net income reflected a loss of $0.2 million or $0.01 per share in the fourth quarter of 2008 compared to a profit of $1.3 million or $0.05 per diluted share in the fourth quarter of 2007.

• Adjusted net income was $0.8 million or $0.03 per diluted share, compared to adjusted net income of $1.8 million or $0.07 per diluted share in the fourth quarter of 2007. These comparisons exclude the adjustments to EBITDAR noted above along with excluding gains or losses on assets. These adjustments are listed on the last page of this release and reconciled to the most comparable GAAP measure.

• Adjusted cash earnings (adjusted net income plus depreciation and amortization) were $4.0 million or $0.15 per diluted share, versus $4.8 million or $0.18 per diluted share in the fourth quarter of 2007, with the adjustments noted above.

Financial Highlights – Full Year

• Revenues of $193.3 million increased $4.2 million or approximately 2.0 percent from the prior year.

• Adjusted EBITDAR of $56.6 million increased 2.0 percent from the prior year.

• Adjusted EBITDAR margin was 29.3 percent in both 2008 and 2007.

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• Net income was $3.7 million or $0.14 per diluted share compared to $4.4 million or $0.16 per diluted share in 2007.

• Adjusted net income was $4.7 million or $0.18 per diluted share, versus adjusted net income of $5.2 million or $0.20 per diluted share in 2007. These comparisons exclude the adjustments noted above along with the write-off of deferred loan costs and non-cash charges related to joint venture amortization in 2007.

• Adjusted cash earnings were $17.1 million or $0.64 per diluted share, versus $16.5 million or $0.62 per diluted share in 2007, with the adjustments noted above.

Operational Highlights – Fourth Quarter

• Average physical occupancy rate for the 57 stabilized communities was 88 percent.

• Operating margins (before property taxes, insurance and management fees) were 48 percent in stabilized independent and assisted living communities.

• At communities under management, excluding the four communities undergoing conversions, same-store revenue increased 1.0 percent versus the fourth quarter of 2007 as a result of a 4.5 percent increase in average monthly rent. Same-store expenses, excluding the property tax adjustment and casualty losses, increased 1.1 percent and net income increased 0.9 percent from the comparable period of the prior year.

“We made progress during the fourth quarter in spite of the economic downturn,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “Occupancy held relatively flat from the third quarter and average monthly rents increased 4.5 percent over the prior year and 1.4 percent sequentially from the third quarter. Our expense management and group purchasing limited growth in same-community expense, excluding adjustments, to 1.1 percent and operating expenses decreased sequentially from the third quarter. We are encouraged by the higher number of move-ins and deposits in the first two months of 2009 as compared to the same period in 2008. These results validate our focus on providing seniors with quality housing and care at affordable rates, and delivering exceptional value in challenging economic times.”

OPERATING AND FINANCIAL RESULTS

Fourth Quarter Results

For the fourth quarter of 2008, the Company reported revenue of $48.0 million, compared to revenue of $48.2 million in the fourth quarter of 2007. The reduction is largely due to lower development fees in the fourth quarter of 2008 as the Company winds down its development pipeline. Resident and healthcare revenue increased from the fourth quarter of the prior year by approximately $0.5 million, or 1 percent.
The number of consolidated communities increased from 49 in the fourth quarter of 2007 to 50 in the fourth quarter of 2008. Financial occupancy of the consolidated portfolio averaged 85.5 percent in the fourth quarter of 2008 with an average monthly rent of $2,506 per occupied unit. Excluding four communities with units being converted to higher levels of care, financial occupancy of the consolidated portfolio averaged 87.0 percent.

CAPITAL/Page 7

Revenue under management was $55.7 million in the fourth quarter of 2008 compared to $55.9 million in the fourth quarter of 2007. Revenue under management includes revenue generated by the Company’s consolidated communities, communities owned through 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 for the fourth quarter of 2008 increased by $0.8 million from the fourth quarter of 2007. As a percentage of resident and healthcare revenue, operating expenses were 63.5 percent in the fourth quarter of 2008 compared to 62.4 percent in the fourth quarter of 2007. Operating expenses for the quarter included approximately $0.4 million of casualty losses and real estate tax adjustments which applied to prior periods. Excluding these items, this quarter’s operating margins would have been approximately equal to the fourth quarter of 2007.

General and administrative expenses of $3.9 million were approximately $1.0 million higher than the fourth quarter of 2007. Approximately $0.6 million of the increase was the result of separation pay incurred as a result of discontinuing further development activities. An additional $0.2 million reflects the write-off of preacquisition costs for projects which are no longer being pursued. As a percentage of revenue under management, general and administrative expenses were 5.5 percent in the fourth quarter of 2008.

Facility lease expenses were $6.3 million in the fourth quarter of 2008, approximately $0.2 million higher than the fourth 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 fourth quarter of the prior year, as a result of capital improvements and new information systems which became operational at the beginning of this year.

Adjusted EBITDAR for the fourth quarter of 2008 was approximately $13.7 million, compared to $14.9 million in the fourth quarter of 2007. Adjusted EBITDAR margin was 28.5 percent for the period.

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 fourth quarter of 2008, compared to $3.1 million in the fourth quarter of 2007, reflecting lower debt outstanding due to principal amortization.

The Company reported a pre-tax loss of approximately $0.4 million in the fourth quarter of 2008 compared to a pre-tax profit of approximately $2.6 million in the fourth quarter of 2007. Fourth quarter 2008 results include several infrequent non-operating items such as separation pay, casualty losses, write-off of preacquisition costs, property tax adjustments and other items identified on the last page of this release and reconciled to the most comparable GAAP measure. On an adjusted basis, the Company earned a

CAPITAL/Page 8

pre-tax profit of $1.2 million in the fourth quarter of 2008 compared to a pre-tax profit of $3.0 million in the fourth quarter of 2007. Adjusted net income was $0.8 million or $0.03 per diluted share in the fourth quarter of 2008 versus adjusted net income of $1.8 million or $0.07 per diluted share in the fourth quarter of 2007.

Adjusted cash earnings (adjusted net income plus depreciation and amortization) were $4.0 million or $0.15 per diluted share in the fourth quarter of 2008, versus $4.8 million or $0.18 per diluted share in the fourth quarter of 2007.

Full Year Results

For the 2008 fiscal year, the Company reported revenues of $193.3 million, compared to revenues of $189.1 million in the prior year, an increase of $4.2 million or approximately 2.0 percent.

Reflecting the adjustments noted above, adjusted EBITDAR for 2008 was $56.6 million, an increase of $1.2 million or 2.0 percent from the $55.4 million reported in 2007. Adjusted net income was $4.7 million or $0.18 per diluted share and adjusted cash earnings were $17.1 million or $0.64 per diluted share.

CAPITAL OVERVIEW AND FINANCING

Capital expenditures in 2008 were approximately $8.1 million including $4.6 million of recurring capital expenditures, $3.0 million of major projects or renovation and $0.5 million of information technology. The Company ended the year with approximately $25.9 million of cash and cash equivalents and approximately $185.8 million of mortgage debt at fixed interest rates averaging approximately 6.1 percent. With the exception of a $4.8 million mortgage maturing in September of 2009, the next closest maturity is July of 2015.

In January of 2009, the Company announced that its Board of Directors has authorized a stock repurchase program of up to $10 million of its common stock. Under the stock repurchase program, the Company is authorized to repurchase, from time to time, shares of its common stock in the open market and in privately negotiated transactions. The timing and extent to which the Company may repurchase its shares will depend upon market conditions and other corporate considerations. The Company anticipates that it will finance the repurchase program with available cash.

Q408 CONFERENCE CALL INFORMATION

The Company will host a conference call with senior management to discuss the Company’s fourth quarter and full year 2008 results. The call will be held on Wednesday, March 11, 2009 at 11:00 a.m. Eastern Time.

The call-in number is 913-312-0962, confirmation code 9944004. 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 our 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 March 11, 2009 at 2:00 pm Eastern Time, until March 18, 2009 at 8:00 p.m. Eastern Time. To access the conference call replay, call 719-457-0820, confirmation code 9944004. 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.

CAPITAL/Page 9

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 9,500 residents, including 38 senior living communities which the Company owns or in which the Company has an ownership interest, 25 leased communities and one community it manages for a third party. Resident capacities in the communities operated by the Company indicate that 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.

CAPITAL/Page 10

CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)

	December 31,
	2008		2007
ASSETS
Current assets:
Cash and cash equivalents	$	25,880	$	23,359
Accounts receivable, net		3,809		3,232
Accounts receivable from affiliates		1,152		846
Federal and state income taxes receivable		2,364		2,084
Deferred taxes		1,052		996
Assets held for sale		354		1,011
Property tax and insurance deposits		8,632		7,860
Prepaid expenses and other		5,930		4,526
Total current assets		49,173		43,914
Property and equipment, net		305,881		310,442
Deferred taxes		11,062		12,824
Investments in limited partnerships		7,173		6,199
Other assets, net		14,831		16,674
Total assets	$	388,120	$	390,053
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,920	$	1,201
Accrued expenses		13,661		13,561
Current portion of notes payable		12,026		9,035
Current portion of deferred income		6,174		5,174
Customer deposits		1,593		2,024
Total current liabilities		35,374		30,995
Deferred income		20,056		23,168
Notes payable, net of current portion		177,541		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 26,681 and 26,596 in 2008 and 2007, respectively		267		266
Additional paid-in capital		130,426		129,159
Retained earnings		24,456		20,732
Total shareholders’ equity		155,149		150,157
Total liabilities and shareholders’ equity	$	388,120	$	390,053

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

	Three Months Ended						Year Ended
	December 31,						December 31,
	2008			2007			2008			2007
Revenues:
Resident and health care revenue	$	43,230		$	42,721		$	172,025		$	167,563
Unaffiliated management services revenue		54			652			194			1,591
Affiliated management services revenue		702			1,082			4,882			3,117
Community reimbursement revenue		4,022			3,732			16,173			16,781
Total revenues		48,008			48,187			193,274			189,052
Expenses:
Operating expenses (exclusive of facility lease expense and depreciation and amortization expense shown below)		27,461			26,647			107,315			103,804
General and administrative expenses		3,921			2,866			13,654			12,046
Facility lease expense		6,283			6,057			25,057			23,811
Provision for bad debts		219			224			556			330
Stock-based compensation expense		250			216			1,036			979
Depreciation and amortization		3,210			2,934			12,468			11,295
Community reimbursement expense		4,022			3,732			16,173			16,781
Total expenses		45,366			42,676			176,259			169,046
Income from operations		2,642			5,511			17,015			20,006
Other income (expense):
Interest income		59			165			422			674
Interest expense		(3,045	)		(3,148	)		(12,217	)		(12,763	)
(Loss) gain on sale of assets		(49	)		34			681			108
Write-down of assets held for sale		—			—			(134	)		—
Write-off of deferred loan costs		—			—			—			(538	)
Other income (expense)		43			24			270			(37	)
Income before provision for income taxes		(350	)		2,586			6,037			7,450
Benefit (provision) for income taxes		136			(1,283	)		(2,313	)		(3,090	)
Net income	$	(214	)	$	1,303		$	3,724		$	4,360
Per share data:
Basic net (loss) income per share	$	(0.01	)	$	0.05		$	0.14		$	0.17
Diluted net (loss) income per share	$	(0.01	)	$	0.05		$	0.14		$	0.16
Weighted average shares outstanding — basic		26,423			26,286			26,377			26,205
Weighted average shares outstanding — diluted		26,423			26,624			26,620			26,637

Capital Senior Living Corporation
Supplemental Information

	Communities						Resident Capacity						Units
	Q4 08			Q4 07			Q4 08			Q4 07			Q4 08			Q4 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)		13			12			1,602			1,406			1,367			1,221
Third party communities managed		1			3			148			502			115			408
Total		64			64			9,451			9,544			8,137			8,237
Independent living								6,510			6,713			5,546			5,738
Assisted living								2,286			2,176			1,973			1,881
Continuing Care Retirement Communities								655			655			618			618
Total								9,451			9,544			8,137			8,237
II. Percentage of Operating Portfolio
Consolidated communities
Owned		39.1	%		39.1	%		41.5	%		41.1	%		43.1	%		42.5	%
Leased		39.1	%		37.5	%		39.9	%		38.9	%		38.7	%		37.7	%
Joint venture communities (equity method)		20.3	%		18.8	%		17.0	%		14.7	%		16.8	%		14.8	%
Third party communities managed		1.6	%		4.7	%		1.6	%		5.3	%		1.4	%		5.0	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Independent living								68.9	%		70.3	%		68.2	%		69.7	%
Assisted living								24.2	%		22.8	%		24.2	%		22.8	%
Continuing Care Retirement Communities								6.9	%		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)		85.5	%		88.5	%
Revenue (in millions)		43.3			42.6
Operating expenses (in millions) (2)		24.6			24.0
Operating margin		43	%		44	%
Average monthly rent		2,506			2,404
II. Waterford / Wellington communities
Number of communities		17			17
Resident capacity		2,426			2,426
Unit capacity		2,132			2,132
Financial occupancy (1)		89.6	%		91.7	%
Revenue (in millions)		12.0			11.9
Operating expenses (in millions) (2)		6.6			6.5
Operating margin		45	%		45	%
Average monthly rent		2,106			2,028
III. Communities under management
Number of communities		64			64
Resident capacity		9,451			9,544
Unit capacity		8,137			8,237
Financial occupancy (1)		84.2	%		88.8	%
Revenue (in millions)		55.7			55.9
Operating expenses (in millions) (2)		31.1			30.6
Operating margin		44	%		45	%
Average monthly rent		2,655			2,523
IV. Same Store communities under management (excluding 4 communities with conversions)
Number of communities		58			58
Resident capacity		8,534			8,534
Unit capacity		7,361			7,361
Financial occupancy (1)		87.3	%		89.7	%
Revenue (in millions)		51.7			51.2
Operating expenses (in millions) (2)		28.6			28.1
Operating margin		45	%		45	%
Average monthly rent		2,667			2,553
V. General and Administrative expenses as a percent of Total Revenues under Management
Fourth Quarter (3)		5.5	%		5.6	%
Fiscal 2008 (3)		5.5	%		5.5	%
VI. Consolidated Debt Information (in thousands, except for interest rates)
Excludes insurance premium financing
Total debt (fixed rate)		185,847			189,072
Weighted average interest rate		6.1	%		6.1	%

(1)	Financial occupancy represents actual days occupied divided by total number of available days during the quarter.
(2)	Excludes management fees, insurance and property taxes.
(3)	Excludes unusual legal/proxy costs, write-off of preacquisition costs, and separation pay.

CAPITAL SENIOR LIVING CORPORATION
NON-GAAP RECONCILIATIONS

	Three Months Ended December 31,						Year Ended December 31,
	2008			2007			2008			2007
Adjusted EBITDAR
Net income from operations	$	2,642		$	5,511		$	17,015		$	20,006
Depreciation and amortization expense		3,210			2,934			12,468			11,295
Facility lease expense		6,283			6,057			25,057			23,811
Unusual legal/proxy costs		25			—			205			63
Write-off of preacquisition and project costs		203			122			578			122
Real estate tax settlements/adjustments		240			267			240			107
Retirement and separation costs		624			—			624			—
Casualty losses		181			—			181			—
Deferred revenue adjustment		260			—			260			—
Adjusted EBITDAR	$	13,668		$	14,891		$	56,628		$	55,404
Adjusted EBITDAR Margin
Adjusted EBITDAR	$	13,668		$	14,891		$	56,628		$	55,404
Total revenues		48,008			48,187			193,274			189,052
Adjusted EBITDAR margin		28.5	%		30.9	%		29.3	%		29.3	%
Adjusted net income and net income per share
Net income	$	(214	)	$	1,303		$	3,724		$	4,360
Unusual legal/proxy costs, net of tax		15			—			126			39
Write-off of preacquisition and project costs, net of tax		125			75			357			75
Adjustment to normalize tax rate		—			287			—			222
Real estate tax settlements/adjustments, net of tax		148			164			148			66
Retirement and separation costs, net of tax		385			—			385			—
Casualty losses, net of tax		112			—			112			—
Write-off deferred loan costs, net of tax		—			—			—			331
Loss (gain) on assets, net of tax		36			(3	)		(331	)		(48	)
Deferred revenue adjustment, net of tax		160			—			160			—
Joint venture noncash charge, net of tax		—			—			—			153
Adjusted net income	$	767		$	1,826		$	4,681		$	5,198
Adjusted net income per share	$	0.03		$	0.07		$	0.18		$	0.20
Diluted shares outstanding		26,423			26,624			26,620			26,637
Adjusted cash earnings and cash earnings per share
Net income	$	(214	)	$	1,303		$	3,724		$	4,360
Depreciation and amortization expense		3,210			2,934			12,468			11,295
Unusual legal/proxy costs, net of tax		15			—			126			39
Write-off of preacquisition and project costs, net of tax		125			75			357			75
Adjustment to normalize tax rate		—			287			—			222
Real estate tax settlements/adjustments, net of tax		148			164			148			66
Retirement and separation costs, net of tax		385			—			385			—
Casualty losses, net of tax		112			—			112			—
Write-off deferred loan costs, net of tax		—			—			—			331
Loss (gain) on assets, net of tax		36			(3	)		(331	)		(48	)
Deferred revenue adjustment, net of tax		160			—			160			—
Joint venture noncash charge, net of tax		—			—			—			153
Adjusted cash earnings	$	3,977		$	4,760		$	17,149		$	16,493
Adjusted cash earnings per share	$	0.15		$	0.18		$	0.64		$	0.62
Diluted shares outstanding		26,423			26,624			26,620			26,637
Adjusted pretax income
Pretax income as reported	$	(350	)	$	2,586		$	6,037		$	7,450
Unusual legal/proxy costs		25			—			205			63
Write-off of preacquisition and project costs		203			122			578			122
Real estate tax settlements/adjustments		240			267			240			107
Retirement and separation costs		624			—			624			—
Casualty losses		181			—			181			—
Write-off deferred loan costs		—			—			—			538
Loss (gain) on assets		58			(4	)		(538	)		(78	)
Deferred revenue adjustment		260			—			260			—
Joint venture noncash charge		—			—			—			248
Adjusted pretax income	$	1,241		$	2,971		$	7,587		$	8,450