EX-99.1 2 d722933dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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

FOR IMMEDIATE RELEASE

CAPITAL SENIOR LIVING CORPORATION

REPORTS FIRST QUARTER 2014 RESULTS

DALLAS – (BUSINESS WIRE) – May 6, 2014 – Capital Senior Living Corporation (the “Company”) (NYSE:CSU), one of the country’s largest operators of senior living communities, today announced operating and financial results for the first quarter of 2014. Company highlights for the first quarter include:

Operating and Financial Summary (see Non-GAAP Financial Measures below)

 

    Revenue in the first quarter of 2014 increased 6.5% to $91.9 million, an increase of $5.6 million from the first quarter of 2013.

 

    Average monthly rent for the consolidated communities increased 2.1% to $3,126 per occupied unit in the first quarter of 2014, an increase of $64 per occupied unit from the first quarter of 2013.

 

    Adjusted net income for the first quarter of 2014 was $0.2 million or $0.01 per share, excluding non-recurring or non-economic items reconciled on the final page of this release. This compares to a net loss of $4.6 million, or $0.16 per share, before adjusting for these non-recurring or non-economic items.

 

    Adjusted EBITDAR increased 1.7% to $31.0 million in the first quarter of 2014, excluding two continuing care retirement communities (“CCRC’s”) that are being re-positioned.

 

    Adjusted Cash From Facility Operations (“CFFO”) was $7.9 million or $0.28 per share in the first quarter of 2014, excluding the two CCRC’s that are being re-positioned. Adjusted CFFO would have been approximately $0.35 per share if not for the unusual weather-related costs, real estate taxes and referral fees discussed later in this release.

 

    The Company completed the acquisition of one senior living community in the first quarter for a purchase price of approximately $14.6 million.


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“We are pleased to report positive results for the first quarter as we continue to recover from high levels of attrition in 2013, with growth in revenue, EBITDAR and occupancy,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “These improvements were achieved despite harsh winter weather; however, winter related expenses negatively impacted first quarter financial results. We are focused on reducing attrition and increasing occupancy by converting approximately 360 vacant independent living units to assisted living and memory care units. Once these converted units are stabilized, we expect overall occupancy to increase by approximately 300 basis points, to 90%.”

“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 believe that 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 first quarter of 2014, the Company completed the acquisition of a senior living community for a purchase price of approximately $14.6 million. This community enhances the Company’s geographic concentration around Ohio and is comprised of 78 units offering assisted living and memory care.

Highlights of this transaction include:

 

    Incremental earnings of $0.2 million, or $0.01 per share.

 

    Additional Adjusted CFFO of $0.5 million, or $0.02 per share.

 

    Increases annual revenue by $4.5 million.

 

    Average occupancy above 95%.

 

    Average monthly rents are approximately $4,700.

 

    The community was financed with approximately $11.0 million of non-recourse 12-year mortgage debt with a fixed interest rate of 5.43%.

 

    The Company is expected to acquire approximately $84 million of high-quality senior living communities in regions with extensive operations in the second quarter of 2014, subject to customary closing conditions. In addition, the Company is conducting due diligence on approximately $34 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 third quarter of 2014.


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Financial Results - First Quarter

For the first quarter of 2014, the Company reported revenue of $91.9 million, compared to revenue of $86.2 million in the first quarter of 2013. Resident and healthcare revenue increased from the first quarter of the prior year by approximately $5.4 million, or 6.4%, largely as a result of acquiring 11 communities since the first quarter of 2013. The number of consolidated communities increased from 99 in the first quarter of 2013 to 110 in the first quarter of 2014.

During 2013, the Company decided to close the skilled nursing units in its two CCRC’s and convert this space to private-pay use. Excluding the two CCRC’s that are being re-positioned, average monthly rent for the consolidated communities was $3,126 per occupied unit in the first quarter of 2014, an increase of $64, or 2.1%, over the first quarter of 2013. Financial occupancy of the consolidated portfolio averaged 87.1% in the first quarter of 2014.

As a percentage of resident and healthcare revenue, operating expenses were 61.8% in the first quarter of 2014, compared to 59.1% in the first quarter of 2013. Margins were negatively impacted by a particularly harsh winter, including higher costs for utilities and snow removal. Margins were also negatively impacted by higher real estate taxes compared to the prior period which reflected multi-year tax adjustments from successful appeals coupled with higher tax assessments in the current quarter that are now under appeal. Higher move-ins during the quarter resulted in higher referral fees to third parties. The unusual weather-related costs, along with higher real estate taxes and higher referral fees totaled approximately $1.6 million and increased operating expenses by 1.8% of revenue. Operating expenses for the first quarter of 2014 were $55.7 million, an increase of $5.6 million from the first quarter of 2013, primarily due to 11 additional communities now being consolidated.

General and administrative expenses as a percentage of revenues under management were 4.9% in the first quarter of 2014, excluding transaction costs of approximately $0.5 million.

Adjusted EBITDAR for the first quarter of 2014 was approximately $31.0 million, an increase of $0.5 million, or 1.7%, from the first quarter of 2013. Excluding the two CCRC’s being re-positioned, EBITDAR margin for the first quarter of 2014 was 34.7%. EBITDAR margin would have been 36.5% if not for the unusual weather-related costs, real estate taxes and referral fees discussed above.

Adjusted net income for the first quarter of 2014 was $0.2 million, excluding non-recurring or non-economic items reconciled on the final page of this release. This compares to a net loss of $4.6 million, or $0.16 per share, before adjusting for these non-recurring or non-economic items. Adjusted CFFO was $7.9 million or $0.28 per share in the first quarter of 2014. Adjusted CFFO would have been approximately $0.07 per share higher if not for the unusual weather-related costs, real estate taxes and referral fees discussed above.


CAPITAL/Page 4

 

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 CCRC’s are being re-positioned with formerly skilled nursing space being converted to 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 communities referenced above, same-community revenue in the first quarter of 2014 increased 0.8% versus the first quarter of 2013. Same-community expenses increased 5.1% from the first quarter of the prior year. The increase in expenses was primarily due to higher costs from the harsh winter, including heating costs and snow removal, along with real estate taxes and referral fees. Excluding these unusual items, same community expenses increased 1.0% and net operating income increased 0.8% from the fourth quarter of 2013. Same-community occupancies were 86.9%, a 20 basis point sequential improvement from the fourth quarter of 2013. Average rents were $3,115 per occupied unit, or 1.2%, higher than the first quarter of the prior year.

Capital expenditures for the first quarter of 2014 were approximately $3.1 million, representing $2.2 million of investment spending and $0.9 million of recurring capital expenditures. If annualized, spending for recurring capital expenditures was approximately $325 per unit.

Balance Sheet

The Company ended the quarter with $23.0 million of cash and cash equivalents, including restricted cash. During the quarter, the Company invested $3.6 million of cash as equity to complete an acquisition and spent $3.1 million on capital improvements.

As of March 31, 2014, the Company financed its 60 owned communities with mortgages totaling $485.0 million at interest rates averaging 5.25%. All of the Company’s debt is at fixed interest rates, except three bridge loans totaling approximately $22.5 million at variable rates averaging 4.24%. The Company has no mortgage maturities before the third quarter of 2015.

The Company’s mortgage debt includes a loan portfolio of 15 assets totaling approximately $112.7 million as of March 31, 2014. Originally structured as 10-year fixed rate mortgages with a maturity date of July 2015, this loan portfolio has a blended fixed rate of 5.96%. The Company is pursuing a refinance of this loan portfolio to take advantage of lower interest rates and the appreciation in value of the Company’s owned communities. Based on current rates, the Company expects to lower the interest rate on this portfolio approximately 150 basis points. This anticipated refinancing is expected to close at the end of the second quarter of 2014, generating approximately $30 million in additional proceeds and lowering the Company’s overall borrowing costs. Additional cash is expected to be generated upon the planned sale of certain non-core owned communities in the third quarter of 2014. Cash on hand, cash flow from operations, net proceeds from this anticipated refinancing and community sales are expected to be sufficient for working capital, prudent reserves and equity needed to fund the Company’s acquisition program.


CAPITAL/Page 5

 

Q1 2014 Conference Call Information

The Company will host a conference call with senior management to discuss the Company’s first quarter financial results. The call will be held on Tuesday, May 6, 2014 at 5:00 p.m. Eastern Time. The call-in number is 913-312-1227, confirmation code 3998352. 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 May 6, 2014 at 8:00 p.m. Eastern Time, until May 13, 2014 at 8:00 p.m. Eastern Time. To access the conference call replay, call 719-457-0820, confirmation code 3998352. The conference call will also be made available for playback via the Company’s corporate website, www.capitalsenior.com, beginning May 7, 2014.

Non-GAAP Financial Measures

Adjusted EBITDAR, Adjusted EBITDAR Margin, Adjusted Net Income and Adjusted CFFO are financial measures of operating performance that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures may have material limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. As a result, these non-GAAP financial measures should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP. The Company believes that these non-GAAP measures are useful in identifying trends in day-to-day performance because they exclude items that are of little or no significance to operations and provide indicators to management of progress in achieving optimal operating performance. In addition, these measures are used by many research analysts and investors to evaluate the performance and the value of companies in the senior living industry. The Company strongly urges you to review the reconciliation of net income from operations to Adjusted EBITDAR and Adjusted EBITDAR Margin and the reconciliation of net loss to Adjusted Net Income and Adjusted CFFO, along with the Company’s consolidated balance sheets, statements of operations, and statements of cash flows.

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 operates 113 senior living communities in geographically concentrated regions with an aggregate capacity of approximately 14,700 residents.


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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, refinancing, community sales, 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.

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 7

 

CAPITAL SENIOR LIVING CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands)

 

     March 31,     December 31,  
     2014     2013  
     (unaudited)        
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 11,601      $ 13,611   

Restricted cash

     11,431        11,425   

Accounts receivable, net

     5,277        3,752   

Accounts receivable from affiliates

     197        416   

Federal and state income taxes receivable

     4,941        5,123   

Deferred taxes

     708        845   

Property tax and insurance deposits

     7,587        11,036   

Prepaid expenses and other

     4,372        6,605   
  

 

 

   

 

 

 

Total current assets

     46,114        52,813   

Property and equipment, net

     659,460        649,967   

Investments in unconsolidated joint ventures

     1,009        1,010   

Other assets, net

     38,099        41,759   
  

 

 

   

 

 

 

Total assets

   $ 744,682      $ 745,549   
  

 

 

   

 

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY     

Current liabilities:

    

Accounts payable

   $ 3,356      $ 3,813   

Accounts payable to affiliates

     3        1   

Accrued expenses

     25,996        29,321   

Current portion of notes payable

     9,974        11,918   

Current portion of deferred income

     11,418        11,215   

Current portion of capital lease and financing obligations

     959        948   

Customer deposits

     1,691        1,489   
  

 

 

   

 

 

 

Total current liabilities

     53,397        58,705   

Deferred income

     17,502        18,021   

Capital lease and financing obligations, net of current portion

     40,926        41,093   

Deferred taxes

     708        845   

Other long-term liabilities

     1,526        1,559   

Notes payable, net of current portion

     475,888        467,376   

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 29,006 and 28,845 in 2014 and 2013, respectively

     294        292   

Additional paid-in capital

     145,151        143,721   

Retained earnings

     10,224        14,871   

Treasury stock, at cost – 350 shares

     (934     (934
  

 

 

   

 

 

 

Total shareholders’ equity

     154,735        157,950   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 744,682      $ 745,549   
  

 

 

   

 

 

 


CAPITAL/Page 8

 

CAPITAL SENIOR LIVING CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(unaudited, in thousands, except per share data)

 

     Three Months Ended
March 31,
 
     2014     2013  

Revenues:

    

Resident and health care revenue

   $ 90,174      $ 84,775   

Affiliated management services revenue

     208        185   

Community reimbursement revenue

     1,475        1,265   
  

 

 

   

 

 

 

Total revenues

     91,857        86,225   

Expenses:

    

Operating expenses (exclusive of facility lease expense and depreciation and amortization expense shown below)

     55,691        50,120   

General and administrative expenses

     4,971        4,922   

Facility lease expense

     14,794        14,270   

Stock-based compensation expense

     1,360        996   

Depreciation and amortization expense

     10,951        11,889   

Community reimbursement expense

     1,475        1,265   
  

 

 

   

 

 

 

Total expenses

     89,242        83,462   
  

 

 

   

 

 

 

Income from operations

     2,615        2,763   

Other income (expense):

    

Interest income

     12        104   

Interest expense

     (7,137     (5,684

Gain on disposition of assets, net

     4        1   

Equity in earnings of unconsolidated joint ventures, net

     41        3   

Other income

     8        12   
  

 

 

   

 

 

 

Loss before (provision) benefit for income taxes

     (4,457     (2,801

(Provision) Benefit for income taxes

     (190     725   
  

 

 

   

 

 

 

Net loss

   $ (4,647   $ (2,076
  

 

 

   

 

 

 

Per share data:

    

Basic net loss per share

   $ (0.16   $ (0.07
  

 

 

   

 

 

 

Diluted net loss per share

   $ (0.16   $ (0.07
  

 

 

   

 

 

 

Weighted average shares outstanding — basic

     28,146        27,584   
  

 

 

   

 

 

 

Weighted average shares outstanding — diluted

     28,146        27,584   
  

 

 

   

 

 

 

Comprehensive loss

   $ (4,647   $ (2,076
  

 

 

   

 

 

 


CAPITAL/Page 9

 

CAPITAL SENIOR LIVING CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

 

     Three Months Ended
March 31,
 
     2014     2013  

Operating Activities

    

Net loss

   $ (4,647   $ (2,076

Adjustments to reconcile net loss to net cash provided by operating activities:

    

Depreciation and amortization

     10,951        11,889   

Amortization of deferred financing charges

     320        365   

Amortization of deferred lease costs and lease intangibles

     308        325   

Deferred income

     (316     (1,070

Deferred income taxes

     —          (175

Gain on disposition of assets, net

     (4     (1

Equity in earnings of unconsolidated joint ventures, net

     (41     (3

Provision for bad debts

     238        20   

Stock based compensation expense

     1,360        996   

Changes in operating assets and liabilities:

    

Accounts receivable

     (1,763     (2,514

Accounts receivable from affiliates

     219        360   

Property tax and insurance deposits

     3,449        2,559   

Prepaid expenses and other

     2,233        2,292   

Other assets

     438        (493

Accounts payable

     (455     (4,885

Accrued expenses

     (3,325     (1,480

Federal and state income taxes receivable

     182        (564

Customer deposits

     202        3   
  

 

 

   

 

 

 

Net cash provided by operating activities

     9,349        5,548   

Investing Activities

    

Capital expenditures

     (3,106     (2,135

Cash paid for acquisitions

     (14,600     (6,741

Proceeds from disposition of assets

     4        —     

Distributions from joint ventures

     42        42   
  

 

 

   

 

 

 

Net cash used in investing activities

     (17,660     (8,834

Financing Activities

    

Proceeds from notes payable

     11,000        16,381   

Repayments of notes payable

     (4,432     (14,447

Increase in restricted cash

     (6     (6

Cash payments for capital lease obligations

     (156     (143

Cash proceeds from the issuance of common stock

     135        1,271   

Excess tax benefits on stock options exercised

     (63     (652

Deferred financing charges paid

     (177     (132
  

 

 

   

 

 

 

Net cash provided by financing activities

     6,301        2,272   
  

 

 

   

 

 

 

Decrease in cash and cash equivalents

     (2,010     (1,014

Cash and cash equivalents at beginning of period

     13,611        18,737   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 11,601      $ 17,723   
  

 

 

   

 

 

 

Supplemental Disclosures

    

Cash paid during the period for:

    

Interest

   $ 6,429      $ 5,150   
  

 

 

   

 

 

 

Income taxes

   $ 44      $ 23   
  

 

 

   

 

 

 


CAPITAL/Page 10

 

Capital Senior Living Corporation

Supplemental Information

 

     Communities     Average
Resident Capacity
    Average Units  
     Q1 14     Q1 13     Q1 14     Q1 13     Q1 14     Q1 13  

Portfolio Data

            

I. Community Ownership / Management

            

Consolidated communities

            

Owned

     60        49        7,689        6,744        6,124        5,417   

Leased

     50        50        6,333        6,298        5,024        5,029   

Joint Venture communities (equity method)

     3        3        674        674        434        433   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     113        103        14,696        13,716        11,582        10,879   

Independent living

         7,597        7,185        6,220        6,180   

Assisted living

         7,099        5,816        5,362        4,531   

Continuing Care Retirement Communities

         —          715        —          168   
      

 

 

   

 

 

   

 

 

   

 

 

 

Total

         14,696        13,716        11,582        10,879   

II. Percentage of Operating Portfolio

            

Consolidated communities

            

Owned

     53.1     48.0     52.3     49.2     52.9     49.8

Leased

     44.2     49.0     43.1     45.9     43.4     46.2

Joint Venture communities (equity method)

     2.7     3.0     4.6     4.9     3.7     4.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     100.0     100.0     100.0     100.0     100.0     100.0

Independent living

         51.7     52.4     53.7     56.8

Assisted living

         48.3     42.4     46.3     41.7

Continuing Care Retirement Communities

         —          5.2     —          1.5
      

 

 

   

 

 

   

 

 

   

 

 

 

Total

         100.0     100.0     100.0     100.0


CAPITAL/Page 11

 

Capital Senior Living Corporation

Supplemental Information (excludes 2 communities being re-positioned)

 

     Q1 14     Q1 13  

Selected Operating Results

    

I. Owned communities

    

Number of communities

     58        47   

Resident capacity

     7,144        6,029   

Unit capacity

     5,675        4,800   

Financial occupancy (1)

     87.9     88.4

Revenue (in millions)

     42.9        34.9   

Operating expenses (in millions) (2)

     24.7        19.1   

Operating margin

     43     45

Average monthly rent

     2,865        2,744   

II. Leased communities

    

Number of communities

     50        50   

Resident capacity

     6,333        6,298   

Unit capacity

     5,024        5,029   

Financial occupancy (1)

     86.1     86.6

Revenue (in millions)

     44.5        44.1   

Operating expenses (in millions) (2)

     22.6        21.7   

Operating margin

     49     51

Average monthly rent

     3,428        3,372   

III. Consolidated communities

    

Number of communities

     108        97   

Resident capacity

     13,477        12,327   

Unit capacity

     10,700        9,829   

Financial occupancy (1)

     87.1     87.5

Revenue (in millions)

     87.4        79.0   

Operating expenses (in millions) (2)

     47.3        40.8   

Operating margin

     46     48

Average monthly rent

     3,126        3,062   

IV. Communities under management

    

Number of communities

     111        100   

Resident capacity

     14,151        13,001   

Unit capacity

     11,133        10,262   

Financial occupancy (1)

     87.1     87.2

Revenue (in millions)

     91.5        82.7   

Operating expenses (in millions) (2)

     49.6        42.9   

Operating margin

     46     48

Average monthly rent

     3,145        3,079   

V. Same communities under management

    

Number of communities

     99        99   

Resident capacity

     12,962        12,932   

Unit capacity

     10,244        10,245   

Financial occupancy (1)

     86.9     87.2

Revenue (in millions)

     83.2        82.5   

Operating expenses (in millions) (2)

     44.6        42.8   

Operating margin

     46     48

Average monthly rent

     3,115        3,077   

VI. General and Administrative expenses as a percent of Total Revenues under Management

    

First Quarter (3)

     4.9     5.1

VII. Consolidated Mortgage Debt Information (in thousands, except interest rates) (excludes insurance premium and auto financing)

    

Total fixed rate mortgage debt

     462,445        363,956   

Total variable rate mortgage debt

     22,522        —     

Weighted average interest rate

     5.25     5.24

 

(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 transaction costs incurred by the Company.


CAPITAL/Page 12

 

CAPITAL SENIOR LIVING CORPORATION

NON-GAAP RECONCILIATIONS

(in thousands, except per share data)

 

     Three Months Ended March 31,  
     2014     2013  

Adjusted EBITDAR

  

 

Net income from operations

   $ 2,615      $ 2,763   

Depreciation and amortization expense

     10,951        11,889   

Stock-based compensation expense

     1,360        996   

Facility lease expense

     14,794        14,270   

Provision for bad debts

     238        20   

Casualty losses

     314        88   

Transaction costs

     487        424   

CCRC’s being repositioned

     208        —     
  

 

 

   

 

 

 

Adjusted EBITDAR

   $ 30,967      $ 30,450   
  

 

 

   

 

 

 

Adjusted EBITDAR Margin

    

Adjusted EBITDAR

   $ 30,967      $ 30,450   

Total revenues

   $ 91,857      $ 86,225   

CCRC’s being repositioned

     (2,709     —     
  

 

 

   

 

 

 

Adjusted revenues

   $ 89,148      $ 86,225   
  

 

 

   

 

 

 

Adjusted EBITDAR margin

     34.7     35.3
  

 

 

   

 

 

 

Adjusted net income and net income per share

    

Net loss

   $ (4,647   $ (2,076

Casualty losses, net of tax

     198        55   

Transaction costs, net of tax

     307        267   

Resident lease amortization, net of tax

     2,205        3,602   

Gain on disposition of assets, net of tax

     (3     (1

Deferred tax asset valuation allowance

     1,692        —     

CCRC’s being repositioned, net of tax

     503        —     
  

 

 

   

 

 

 

Adjusted net income

   $ 255      $ 1,847   
  

 

 

   

 

 

 

Adjusted net income per share

   $ 0.01      $ 0.07   
  

 

 

   

 

 

 

Diluted shares outstanding

     28,153        27,708   

Adjusted CFFO and Adjusted CFFO per share

    

Net loss

   $ (4,647   $ (2,076

Non-cash charges, net

     12,816        12,346   

Recurring capital expenditures

     (1,028     (948

Casualty losses, net of tax

     198        55   

Transaction costs

     487        424   

Tax impact of Spring Meadows Transaction

     (106     (106

Tax impact of lease modification

     —          —     

CCRC’s being repositioned, net of tax

     179        —     
  

 

 

   

 

 

 

Adjusted CFFO

   $ 7,899      $ 9,695   
  

 

 

   

 

 

 

Adjusted CFFO per share

   $ 0.28      $ 0.35   
  

 

 

   

 

 

 

****