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) November 4, 2013

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)

Not applicable

(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):

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

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

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

¨ 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 4, 2013, Capital Senior Living Corporation (the “Company”) announced its financial results for the third quarter ended September 30, 2013 by issuing a press release. The full text of the press release issued in connection with the announcement is attached hereto as Exhibit 99.1.

The information being furnished under Item 2.02, Item 7.01, Exhibit 99.1 and Exhibit 99.2 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 may be expressly set forth by specific reference in such a filing. The press release and the presentation referenced below contain, and may implicate, forward-looking statements regarding the Company and include cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated.

In the press release and the presentation referenced below, the Company’s management utilized non-GAAP financial measures to describe the Company’s adjusted EBITDAR, adjusted EBITDAR margin, adjusted CFFO, adjusted 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 provide investors with an enhanced overall understanding of the Company’s financial performance and prospects. In addition, the Company has historically provided this type of information to the investment community, and as a result, it believes including such information provides consistency in the Company’s 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 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 presentation 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.

*99.1     Press Release dated November 4, 2013.

*99.2     Capital Senior Living Corporation Updated Slideshow Presentation.

* These exhibits to this Current Report on Form 8-K are not being filed but are being furnished pursuant to Item 9.01.

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 4, 2013	Capital Senior Living Corporation
	By:	/s/ Ralph A. Beattie
	Name:	Ralph A. Beattie
	Title:	Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

*99.1     Press Release dated November 4, 2013.

*99.2    Capital Senior Living Corporation Updated Slideshow Presentation.

* These exhibits to this Current Report on Form 8-K are not being filed but are being furnished pursuant to Item 9.01.

EX-99.1

Exhibit 99.1

PRESS CONTACT: Ralph A. Beattie, Chief Financial Officer Phone: 1-972-770-5600

FOR IMMEDIATE RELEASE

CAPITAL SENIOR LIVING CORPORATION

REPORTS THIRD QUARTER 2013 RESULTS;

CFFO INCREASES 18% YEAR-TO-DATE

DALLAS – (BUSINESS WIRE) – November 4, 2013 – 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 2013. Company highlights for the third quarter include:

Highlights

• Adjusted Cash From Facility Operations (“CFFO”) was $8.9 million, or $0.32 per share in the third quarter of 2013, excluding two CCRCs that are being re-positioned.

• Adjusted EBITDAR increased 7.0% to $29.3 million in the third quarter of 2013, an increase of $1.9 million from the third quarter of 2012. Excluding two CCRCs being re-positioned, EBITDAR margin was 35.2% in the third quarter of 2013.

• Revenue increased 12.8% to $88.0 million in the third quarter of 2013, an increase of $10.0 million from the third quarter of 2012.

• Average monthly rent for the consolidated communities increased 3.8% to $3,023 per occupied unit in the third quarter of 2013, an increase of $111 per occupied unit from the third quarter of 2012.

• Same-community revenue grew 2.4%, same-community expenses increased 1.3% and same-community operating income increased 3.9% compared to the third quarter of 2012.

• The Company completed the acquisition of two senior living communities for a combined purchase price of approximately $21.6 million. Subsequent to the end of the third quarter, the Company completed the acquisition of two additional senior living communities for a combined purchase price of approximately $31.8 million.

“We are very pleased to report positive results for the third quarter as we continue our recovery from the effects of the flu season earlier this year,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “Same store occupancy at the end of September was 70 basis points higher than occupancy at the end of June. This significant increase, along with a 20% increase in third quarter deposits, bodes well for fourth quarter financial results.”

“We are also pleased to report that a re-positioning of our two continuing care retirement communities to further enhance our private-pay revenues is proceeding well. After considering a number of alternatives, including a sale of these owned communities, we decided that a reconfiguration of the services we offer will enhance annual CFFO, improve our operating metrics and enable meaningful gains in shareholder value. The residents we served in skilled nursing have nearly all been relocated to other nursing homes and we will soon begin reconfiguring this space for private-pay use.”

“Complementing this organic growth is a robust pipeline that allows us to continue our disciplined and strategic acquisition program that increases our ownership of high-quality senior living communities in geographically concentrated regions and generates meaningful increases in CFFO, earnings and real estate value. We differentiate Capital Senior Living as the value leader in providing quality seniors housing and care at reasonable prices. We are well positioned to make meaningful gains in shareholder value as a substantially all private-pay business in an industry that benefits from need-driven demand, limited new supply, and an improving economy and housing market.”

Recent Investment Activity

• In the third quarter, the Company completed the acquisition of two senior living communities for a combined purchase price of approximately $21.6 million. One community enhances the Company’s geographic concentration in Ohio and the other adds the contiguous state of Georgia to the Company’s footprint. Both communities offer assisted living with memory care and total 125 units.

Highlights of these transactions include:

• Additional CFFO of $0.9 million, or $0.03 per share.

• Incremental earnings of $0.5 million, or $0.02 per share.

• Increases annual revenue by $5.5 million.

• Average occupancy 93%.

• Average monthly rents are approximately $3,900.

CAPITAL/Page 2

• The two communities were financed with an aggregate of approximately $16.1 million of non-recourse mortgage debt consisting of $7.6 million of 10-year debt with a fixed interest rate of 5.93% and bridge financing of approximately $8.5 million with a variable interest rate of approximately 3.93%. The bridge loan is for a community that is upgrading the assisted living license and, after completion, will be refinanced with permanent debt.

• Subsequent to the end of the third quarter, the Company completed the acquisition of two senior living communities for a combined purchase price of approximately $31.8 million. These communities add the contiguous states of Wisconsin and Massachusetts to the Company’s footprint. One community offers independent living with assisted living while the other offers assisted living with memory care. Together, these two communities comprise 150 units.

Highlights of these transactions include:

• Additional CFFO of $1.3 million, or $0.05 per share.

• Incremental earnings of $0.6 million, or $0.02 per share.

• Increases annual revenue by $7.3 million.

• Average occupancy 95%.

• Average monthly rents are approximately $3,700.

• The two communities were financed with an aggregate of approximately $23.8 million of non-recourse 10-year mortgage debt at a blended fixed interest rate of 5.44%.

• The Company is conducting due diligence on approximately $65.0 million of additional transactions consisting of high-quality senior living communities in regions with extensive existing operations. Subject to completion of due diligence and customary closing conditions, these transactions are expected to close in the fourth quarter of this year. The Company has additional acquisitions in the pipeline that are anticipated to close in 2014.

Financial Results

For the third quarter of 2013, the Company reported revenue of $88.0 million, compared to revenue of $78.0 million in the third quarter of 2012. Resident and healthcare revenue increased from the third quarter of the prior year by approximately $9.8 million, or 12.7%, largely as a result of acquiring 15 communities since the third quarter of 2012. The number of consolidated communities increased from 88 in the third quarter of 2012 to 103 in the third quarter of 2013.

CAPITAL/Page 3

Excluding the two CCRCs that are being re-positioned, average monthly rent for the consolidated communities was $3,023 per occupied unit in the third quarter of 2013, an increase of $111, or 3.8%, over the third quarter of 2012. Financial occupancy of the consolidated portfolio averaged 86.4% in the third quarter of 2013.

As a percentage of resident and healthcare revenue, operating expenses were 61.3% in the third quarter of 2013, compared to 61.1% in the third quarter of 2012. Operating expenses for the third quarter of 2013 were $52.9 million, an increase of $6.1 million from the third quarter of 2012, primarily due to 15 additional communities now being consolidated.

General and administrative expenses as a percentage of revenues under management were 5.5% for the quarter, excluding transaction costs of approximately $0.4 million. Expenses this quarter were $1.6 million higher than the third quarter of the prior year and were once again impacted by an abnormally high level of medical claims that exceeded the third quarter of 2012 by approximately $1.2 million. 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 significantly reduces the Company’s health insurance costs. Occasionally, expenses are higher than average in a particular quarter as a few claims approach stop-loss insurance thresholds.

Adjusted EBITDAR for the third quarter of 2013 was approximately $29.3 million, an increase of $1.9 million, or 7.0% from the third quarter of 2012. Excluding the two communities being re-positioned, EBITDAR margin for the third quarter of 2013 was 35.2%.

Adjusted net income for the third quarter of 2013 was $0.7 million, or $0.03 per share, excluding non-recurring or non-economic items reconciled on the final page of this release. Adjusted CFFO was $8.9 million or $0.32 per share in the third quarter of 2013.

The CFFO in the third quarter of 2013 did not include a benefit from the cost segregation study completed earlier this year. Consequently, there remains approximately $0.18 per share of CFFO from this change in depreciation for tax purposes that will be realized as the Company generates taxable income in future periods.

For the first nine months of 2013, the Company reported revenue of $261.4 million, compared to revenue of $227.3 million for the first nine months of 2012. Resident and healthcare revenue increased $33.2 million, or 14.9%, from the first nine months of the prior year.

CAPITAL/Page 4

Adjusted EBITDAR for the first nine months of 2013 was $89.8 million, compared to $80.8 million for the first nine months of 2012. The Company earned adjusted net income of $3.6 million, or $0.13 per share, in the first nine months of 2013. Adjusted CFFO was $28.1 million, or $1.01 per share, in the first nine months of 2013, an increase of 17.6% compared to $23.9 million, or $0.87 per share, in the first nine months of 2012.

Operating Activities

The Company is well positioned as a substantially all private-pay business and intends to further differentiate itself by enhancing its private-pay revenues. Two continuing care retirement communities are being re-positioned with space being converted to other private-pay use. While these communities are being re-positioned, same-community results for these two communities will be excluded.

At communities under management, excluding the two communities referenced above, same-community revenue in the third quarter of 2013 increased 2.4% versus the third quarter of 2012. Same-community expenses increased 1.3% and net operating income increased 3.9% from the third quarter of the prior year. Same-community occupancies were 85.8% and average rents were $85 per occupied unit or 2.9% higher than the third quarter of the prior year.

Capital expenditures for the third quarter of 2013 were approximately $4.7 million, representing $3.7 million of investment spending and $1.0 million of recurring capital expenditures. If annualized, spending for recurring capital expenditures equaled approximately $400 per unit.

Balance Sheet

The Company ended the third quarter of 2013 with $30.2 million of cash and cash equivalents, including restricted cash. The cash balance declined $0.3 million from the end of the second quarter, during which time the Company invested $5.5 million of cash as equity to complete two acquisitions and spent $4.7 million on capital improvements.

As of September 30, 2013, the Company financed its 53 owned communities with mortgages totaling $395.6 million at interest rates averaging 5.21%. All of the Company’s debt is at fixed interest rates, except two bridge loans totaling approximately $13.0 million at variable rates. The Company has no mortgage maturities before the third quarter of 2015.

CAPITAL/Page 5

Q3 2013 Conference Call Information

The Company will host a conference call with senior management to discuss the Company’s third quarter 2013 financial results. The call will be held on Monday, November 4, 2013 at 5:00 p.m. Eastern Time. The call-in number is 913-981-5507, confirmation code 4612033. 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, 2013 at 8:00 p.m. Eastern Time, until November 13, 2013 at 8:00 p.m. Eastern Time. To access the conference call replay, call 719-457-0820, confirmation code 4612033. The conference call will also be made available for playback via the Company’s corporate website, www.capitalsenior.com, beginning November 5, 2013.

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 strategy is to provide value to residents by providing quality senior living services at reasonable prices. The Company’s communities emphasize 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 108 senior living communities in geographically concentrated regions with an aggregate capacity of approximately 14,300 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.

For information about Capital Senior Living, visit www.capitalsenior.com.

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

CAPITAL/Page 6

CAPITAL SENIOR LIVING CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

	September 30, 2013			December 31, 2012
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	18,765		$	18,737
Restricted cash		11,418			10,179
Accounts receivable, net		4,658			5,229
Accounts receivable from affiliates		320			753
Federal and state income taxes receivable		378			3,901
Deferred taxes		5,288			1,443
Property tax and insurance deposits		12,500			11,442
Prepaid expenses and other		5,625			4,758
Total current assets		58,952			56,442
Property and equipment, net		565,897			527,159
Deferred taxes		—			9,350
Investments in unconsolidated joint ventures		1,053			1,074
Other assets, net		36,504			42,917
Total assets	$	662,406		$	636,942
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,553		$	6,978
Accounts payable to affiliates		3			2
Accrued expenses		28,587			24,445
Current portion of notes payable		11,265			20,230
Current portion of deferred income		9,537			8,193
Current portion of capital lease and financing obligations		945			766
Customer deposits		1,518			1,540
Total current liabilities		54,408			62,154
Deferred income		18,302			19,990
Capital lease and financing obligations, net of current portion		41,409			42,146
Other long-term liabilities		1,592			1,692
Notes payable, net of current portion		387,736			342,366
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 – 28,801 and 28,218 in 2013 and 2012, respectively		292			286
Additional paid-in capital		142,335			137,867
Retained earnings		17,266			31,375
Treasury stock, at cost – 350 shares		(934	)		(934	)
Total shareholders’ equity		158,959			168,594
Total liabilities and shareholders’ equity	$	662,406		$	636,942

CAPITAL/Page 7

CAPITAL SENIOR LIVING CORPORATION

CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

(unaudited, in thousands, except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Revenues:
Resident and health care revenue	$	86,333		$	76,577		$	256,409		$	223,161
Affiliated management services revenue		205			176			586			492
Community reimbursement revenue		1,445			1,259			4,432			3,605
Total revenues		87,983			78,012			261,427			227,258
Expenses:
Operating expenses (exclusive of facility lease expense and depreciation and amortization expense shown below)		52,936			46,791			154,186			134,186
General and administrative expenses		5,026			3,288			15,029			10,923
Facility lease expense		14,274			13,819			42,813			41,179
Stock-based compensation expense		869			602			3,158			1,843
Depreciation and amortization		10,533			9,214			33,183			24,970
Community reimbursement expense		1,445			1,259			4,432			3,605
Total expenses		85,083			74,973			252,801			216,706
Income from operations		2,900			3,039			8,626			10,552
Other income (expense):
Interest income		17			369			138			436
Interest expense		(5,943	)		(4,847	)		(17,321	)		(12,699	)
Gain (Loss) on disposition of assets, net		13			(14	)		12			(19	)
Equity in earnings (losses) of unconsolidated joint ventures, net		43			(26	)		76			(241	)
Other income		10			—			28			—
Loss before (provision) benefit for income taxes		(2,960	)		(1,479	)		(8,441	)		(1,971	)
(Provision) Benefit for income taxes		(7,003	)		542			(5,668	)		493
Net loss	$	(9,963	)	$	(937	)	$	(14,109	)	$	(1,478	)
Per share data:
Basic net loss per share	$	(0.35	)	$	(0.03	)	$	(0.49	)	$	(0.05	)
Diluted net loss per share	$	(0.35	)	$	(0.03	)	$	(0.49	)	$	(0.05	)
Weighted average shares outstanding — basic		27,911			27,383			27,769			27,331
Weighted average shares outstanding — diluted		27,911			27,383			27,769			27,331
Comprehensive loss	$	(9,963	)	$	(937	)	$	(14,109	)	$	(1,478	)

CAPITAL/Page 8

CAPITAL SENIOR LIVING CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

	Nine Months Ended September 30,
	2013			2012
Operating Activities
Net loss	$	(14,109	)	$	(1,478	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		33,183			24,970
Amortization of deferred financing charges		822			518
Amortization of deferred lease costs and lease intangibles		978			452
Deferred income		(344	)		(2,505	)
Deferred income taxes		5,505			(6,426	)
(Gain) Loss on disposition of assets, net		(12	)		19
Equity in (earnings) losses of unconsolidated joint ventures		(76	)		241
Provision for bad debts		330			550
Stock-based compensation expense		3,158			1,843
Changes in operating assets and liabilities:
Accounts receivable		241			266
Accounts receivable from affiliates		433			(138	)
Property tax and insurance deposits		(1,058	)		2,073
Prepaid expenses and other		(867	)		2,259
Other assets		(3,101	)		3,117
Accounts payable		(4,424	)		(437	)
Accrued expenses		4,142			3,324
Federal and state income taxes receivable/payable		3,523			8,604
Customer deposits		(22	)		(51	)
Net cash provided by operating activities		28,302			37,201
Investing Activities
Capital expenditures		(9,888	)		(9,096	)
Cash paid for acquisitions		(53,741	)		(75,595	)
Proceeds from disposition of assets		18			19
Contributions to unconsolidated joint ventures		—			(241	)
Distributions from unconsolidated joint ventures		97			21
Net cash used in investing activities		(63,514	)		(84,892	)
Financing Activities
Proceeds from notes payable		56,939			81,888
Repayments of notes payable		(20,534	)		(6,837	)
Increase in restricted cash		(1,239	)		(94	)
Cash payments for capital lease and financing obligations		(558	)		(230	)
Cash proceeds from the issuance of common stock		2,761			127
Excess tax benefits on stock options exercised		(1,445	)		228
Deferred financing charges paid		(684	)		(1,376	)
Net cash provided by financing activities		35,240			73,706
Increase in cash and cash equivalents		28			26,015
Cash and cash equivalents at beginning of period		18,737			22,283
Cash and cash equivalents at end of period	$	18,765		$	48,298
Supplemental Disclosures
Cash paid during the period for:
Interest	$	16,058		$	11,826
Income taxes	$	677		$	777
Non-cash operating, investing, and financing activities during the period:
Intangible assets acquired through capital lease and financing obligations	$	—		$	11,794
Property and equipment acquired through capital lease and financing obligations	$	—		$	13,243
Notes payable assumed through capital lease and financing obligations	$	—		$	18,293

CAPITAL/Page 9

Capital Senior Living Corporation

Supplemental Information (Excludes CCRCs being re-positioned)

	Communities						Average Resident Capacity						Average Units
	Q3 13			Q3 12			Q3 13			Q3 12			Q3 13			Q3 12
Portfolio Data
I. Community Ownership / Management
Consolidated communities
Owned		51			36			6,374			4,914			5,185			4,100
Leased		50			50			6,298			6,298			5,213			5,205
Joint Venture communities (equity method)		3			3			674			674			443			441
Total		104			89			13,346			11,886			10,841			9,746
Independent living								7,229			7,035			5,890			5,747
Assisted living								6,117			4,851			4,951			3,999
Continuing Care Retirement Communities								—			—			—			—
Total								13,346			11,886			10,841			9,746
II. Percentage of Operating Portfolio
Consolidated communities
Owned		49.0	%		40.4	%		47.8	%		41.3	%		47.8	%		42.1	%
Leased		48.1	%		56.2	%		47.2	%		53.0	%		48.1	%		53.4	%
Joint venture communities (equity method)		2.9	%		3.4	%		5.1	%		5.7	%		4.1	%		4.5	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Independent living								54.2	%		59.2	%		54.3	%		59.0	%
Assisted living								45.8	%		40.8	%		45.7	%		41.0	%
Continuing Care Retirement Communities								0.0	%		0.0	%		0.0	%		0.0	%
Total								100.0	%		100.0	%		100.0	%		100.0	%

CAPITAL/Page 10

Capital Senior Living Corporation

Supplemental Information (Excludes CCRCs being re-positioned)

Selected Operating Results	Q3 13			Q3 12
I. Owned communities (Excludes CCRCs being re-positioned)
Number of communities		51			36
Resident capacity		6,374			4,914
Unit capacity		5,185			4,100
Financial occupancy (1)		86.8	%		87.6	%
Revenue (in millions)		36.7			26.9
Operating expenses (in millions) (2)		20.6			14.8
Operating margin		44	%		45	%
Average monthly rent		2,719			2,496
II. Leased communities
Number of communities		50			50
Resident capacity		6,298			6,298
Unit capacity		5,213			5,205
Financial occupancy (1)		86.1	%		86.1	%
Revenue (in millions)		44.8			43.6
Operating expenses (in millions) (2)		22.3			22.1
Operating margin		50	%		49	%
Average monthly rent		3,326			3,245
III. Consolidated communities (Excludes CCRCs being re-positioned)
Number of communities		101			86
Resident capacity		12,672			11,212
Unit capacity		10,398			9,305
Financial occupancy (1)		86.4	%		86.8	%
Revenue (in millions)		81.5			70.5
Operating expenses (in millions) (2)		42.9			36.9
Operating margin		47	%		48	%
Average monthly rent		3,023			2,912
IV. Communities under management (Excludes CCRCs being re-positioned)
Number of communities		104			89
Resident capacity		13,346			11,886
Unit capacity		10,841			9,746
Financial occupancy (1)		86.5	%		86.3	%
Revenue (in millions)		85.6			74.0
Operating expenses (in millions) (2)		45.0			38.9
Operating margin		47	%		47	%
Average monthly rent		3,043			2,933
V. Same Store communities under management (Excludes CCRCs being re-positioned)
Number of communities		89			89
Resident capacity		11,886			11,886
Unit capacity		9,761			9,746
Financial occupancy (1)		85.8	%		86.3	%
Revenue (in millions)		75.8			74.0
Operating expenses (in millions) (2)		39.4			38.9
Operating margin		48	%		47	%
Average monthly rent		3,018			2,933
VI. General and Administrative expenses as a percent of Total Revenues under Management
Third quarter (3)		5.5	%		3.8	%
First nine months (3)		5.3	%		4.2	%
VII. Consolidated Debt Information (in thousands, except for interest rates) (Excludes insurance premium and auto financing)
Total fixed rate mortgage debt		382,531			287,623
Variable rate mortgage debt		13,022			—
Weighted average interest rate		5.21	%		5.47	%

(1) Financial occupancy represents actual days occupied divided by total number of available days during each month of the quarter.

(2) Excludes management fees, insurance and property taxes.

(3) Excludes transaction and conversion costs incurred by the Company.

CAPITAL/Page 11

CAPITAL SENIOR LIVING CORPORATION

NON-GAAP RECONCILIATIONS

(In thousands, except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Adjusted EBITDAR
Net income from operations	$	2,900		$	3,039		$	8,626		$	10,552
Depreciation and amortization expense		10,533			9,214			33,183			24,970
Stock-based compensation expense		869			602			3,158			1,843
Facility lease expense		14,274			13,819			42,813			41,179
Provision for bad debts		89			209			330			551
Casualty losses		142			272			382			535
Transaction costs		360			221			1,205			1,164
CCRCs being re-positioned		120			—			120			—
Adjusted EBITDAR	$	29,287		$	27,376		$	89,817		$	80,794
Adjusted EBITDAR Margin
Adjusted EBITDAR	$	29,287		$	27,376		$	89,817		$	80,794
Total revenues	$	87,983		$	78,012		$	261,427		$	227,258
CCRCs being re-positioned		(4,860	)		—			(4,860	)		—
Adjusted revenues	$	83,123		$	78,012		$	256,567		$	227,258
Adjusted EBITDAR margin		35.2	%		35.1	%		35.0	%		35.6	%
Adjusted net income and net income per share
Net loss	$	(9,963	)	$	(937	)	$	(14,109	)	$	(1,478	)
Casualty losses, net of tax		89			171			241			337
Transaction costs, net of tax		227			139			759			733
Resident lease amortization, net of tax		2,471			2,449			8,837			6,228
(Gain) Loss on disposition of assets, net of tax		(8	)		9			(8	)		12
Deferred tax asset allowance		7,513			—			7,513			—
CCRCs being re-positioned, net of tax		414			—			414			—
Adjusted net income	$	743		$	1,831		$	3,647		$	5,832
Adjusted net income per share	$	0.03		$	0.07		$	0.13		$	0.21
Diluted shares outstanding		27,937			27,469			27,839			27,401
Adjusted CFFO and CFFO per share
Net cash provided by operating activities	$	13,818		$	17,858		$	28,302		$	37,201
Changes in operating assets and liabilities		(4,688	)		(8,368	)		1,133			(19,017	)
Recurring capital expenditures		(970	)		(843	)		(2,875	)		(2,479	)
Casualty losses, net of tax		89			171			241			337
Transaction costs		360			221			1,205			1,164
Tax impact of Spring Meadows Transaction		(106	)		(106	)		(318	)		(318	)
Tax impact of lease modification		—			—			—			6,983
CCRCs being re-positioned, net of tax		394			—			394			—
Adjusted CFFO	$	8,897		$	8,933		$	28,082		$	23,871
Adjusted CFFO per share	$	0.32		$	0.33		$	1.01		$	0.87

##########

CAPITAL/Page 12

EX-99.2

Capital Senior Living

Company Presentation

Exhibit 99.2

2

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.                           

3

Investment Highlights

•

Value leader in providing quality seniors housing and care at

reasonable prices

•

Well positioned to make meaningful gains in shareholder value

•

Substantially all private pay with strong cash flow generation

•

Industry benefits from need-driven demand, limited new supply and

improving housing market

•

Achieving solid growth in occupancy, revenue and net operating

income

•

Executing on disciplined accretive growth initiatives through

acquisitions and conversions to higher levels of care

•

Solid balance sheet

4

Company Overview

•

Capital Senior Living operates 108 communities in geographically

concentrated regions with the capacity to serve 14,300 residents

5

Resident Demographics at CSU Communities

•

Average age of resident: 85 years

•

Average age of resident moving in: 82 years

•

Average

stay

period:

2-3

years

•

Percent of female residents: 80%

•

Resident turnover is primarily attributed to death or need for

higher care

6

The Capital Advantage: Senior Living Options

Independent Living –

54% of Resident Capacity

•

Average 115 units per IL community with large common areas and

amenities

•

Supportive services, wellness programs, social, recreational and

educational events

•

Average monthly rate of $2,475

•

100% private pay

•

Average length of resident stay is 34 months

7

The Capital Advantage: Senior Living Options

Assisted Living-

46% of Resident Capacity

•

Average 66 units per community

•

73% of communities offer AL

•

Assistance with activities of daily living including medication

reminders, bathing, dressing and grooming

•

Average monthly rate of $3,677

•

Substantially all private pay

•

Average length of resident stay is 26 months

8

The Capital Advantage: Need Driven Demand

U.S. population 75+ years old is estimated to grow by 3.5 million from

2009 through 2015

•

Only 1.3 million units serving a population of 18.9 million seniors

•

Current 6.9% penetration rate implies demand growth of 40,000 units

per year

U.S. Seniors Population Trends (75+ years old)

(Population in

millions)

Implied demand growth of

40,000 units per year

Source: NIC Investment

Guide 2010 and U.S.

Census Bureau

9

The Capital Advantage: Limited New Supply

Source: Seniors NIC MAP100 Trends

10

The Capital Advantage: Senior Housing Occupancy Trends

Source: Seniors NIC MAP100 Trends

11

The Capital Advantage: Competitive Strengths

•

Value leader in geographically concentrated regions

•

Experienced on-site, regional and corporate management

•

Larger company economies of scale and proprietary systems

that yield operating efficiencies in highly fragmented industry

•

Solid reputation in industry and 95% resident satisfaction

•

Employer of choice

•

Solid balance sheet

•

Strong Board of Directors

12

The Capital Advantage: Strategy

•

Focus on our core strengths

•

Capitalize on competitive strengths within each of our regions

to maximize the cash flow generated by our communities and

our operations

•

Capitalize on the fragmented nature of the senior living

industry to strategically aggregate local and regional operators

in geographically concentrated regions

•

Increase levels of care through conversions to Assisted Living

or Memory Care units

•

Attract and retain the best talent in the senior living industry

13

2013 Business Plan

•

Focused on Operations, marketing and growth to enhance

shareholder value through:

•

Organic growth

•

Proactive expense Management

•

Accretive acquisitions and unit conversions

•

Utilization of technology

14

2013 Business Plan: Organic Growth

•

Increase average rents

•

Each 3% increase generates $10.4M of revenue

•

Improve occupancies

•

Each 1% generates $3.5M of revenue, $2.5M of EBITDAR and $0.06 per

share of CFFO

•

Convert units to higher levels of care

•

Cash flow enhancing renovations and refurbishments

•

New branding strategy, eMarketing and website enhancements

•

Implement software programs to optimize care plans and level of

care changes

15

Operating Performance

•

Same-store comparable trends

16

2013 Business Plan: External Growth

•

Strategic acquisitions of high quality senior living communities

to

enhance

geographic

concentrations

-

17%

cash

on

cash

returns

(in millions except number of communities and units)

2012

2013 YTD

Combined

Purchase Price

$181.3

$85.4

$266.7

Communities

17

7

24

Units

1,367

493

1,860

Debt

$129.5

$63.7

$193.1

Equity

$51.8

$21.7

$73.5

First Year Revenue

$49.1

$20.5

$69.6

First Year EBITDAR

$19.1

$8.4

$27.5

First Year Cash Flow from

Operations (CFFO)

$9.1

$3.7

$12.8

First Year CFFO per share

$0.34

$0.13

$0.47

17

Operating Performance

•

Revenue and EBITDAR growth

•

EBITDAR increased 104.9% on an 83.7% increase in revenue

•

EBITDAR margin increased from 29.9% in Q1 2010 to 35.2% in Q3

2013

*

As adjusted in Q3 2013 earnings release

18

Income Statement: September YTD Comparison

As adjusted in press releases

2013

2012

% Increase

Total Revenues

$ 261.4

$ 227.3

15.0%

Operating Expenses

(153.5)

(133.1)

General & Administrative Expenses

(13.8)

(9.7)

Other Expense

(4.3)

(3.7)

EBITDAR

$ 89.8

$ 80.8

11.1%

% Margin

35.0%

35.6%

Lease Expense

(42.8)

(41.2)

Interest, Taxes and Other

(43.4)

(33.8)

Net Income

$ 3.6

$ 5.8

Earning Per Share

$0.13

$0.21

CFFO

$ 28.1

$ 23.9

17.6%

CFFO Per Share

$1.01

$0.87

19

Balance Sheet

•

As of September 30, 2013 (in millions)

ASSETS

Cash and Securities

$ 30.2

Other Current Assets

25.1

Total Current Assets

55.3

Fixed Assets

565.9

Other Assets

48.7

TOTAL ASSETS

$ 669.9

LIABILITIES & EQUITY

Current Liabilities

$ 54.4

Long-Term Debt

387.7

Other Liabilities

61.3

Total Liabilities

503.4

Stockholders’

Equity

166.5

TOTAL LIABILITIES &

EQUITY

$ 669.9

20

Investment Highlights

•

Value

leader

in

geographically

concentrated

regions

•

Substantially

all

private

pay

•

Need-driven

demand,

limited

new

supply

and

improving

housing

market

•

Experienced

management

team

with

demonstrated

ability

to

operate,

acquire

and

create

shareholder

value

•

Accretive

acquisitions

in

highly

fragmented

industry

•

Conversions

to

higher

levels

of

care

with

significant

revenue

and

cash

flow

growth

•

Strong

cash

flow

generation

•

Solid

balance

sheet

Capital Senior Living

Company Presentation