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, 2014
Capital Senior Living Corporation
(Exact name of registrant as specified in its charter)
Delaware | 1-13445 | 75-2678809 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
14160 Dallas Parkway
Suite 300
Dallas, Texas 75254
(Address of principal executive offices)(Zip Code)
(972) 770-5600
(Registrants 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, 2014, Capital Senior Living Corporation (the Company) announced its financial results for the third quarter ended September 30, 2014 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 Companys management utilizes financial measures of operating performance, including adjusted EBITDAR, adjusted EBITDAR margin, adjusted net income and adjusted CFFO, 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 the Companys 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, each of which is included at the end of the Companys press release, along with the Companys consolidated balance sheets, statements of operations, and statements of cash flows.
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, 2014.
*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, 2014 | Capital Senior Living Corporation | |||||
By: | /s/ Carey P. Hendrickson | |||||
Name: | Carey P. Hendrickson | |||||
Title: | Senior Vice President and Chief Financial Officer |
EXHIBIT INDEX
*99.1 | Press Release dated November 4, 2014. | |
*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.
Exhibit 99.1
PRESS CONTACT: Carey P. Hendrickson, Chief Financial Officer Phone: 1-972-770-5600 | ||||
FOR IMMEDIATE RELEASE
CAPITAL SENIOR LIVING CORPORATION
REPORTS THIRD QUARTER 2014 RESULTS
DALLAS (BUSINESS WIRE) November 4, 2014 Capital Senior Living Corporation (the Company) (NYSE:CSU), one of the nations largest operators of senior living communities, today announced operating and financial results for the third quarter of 2014. Company highlights for the third quarter include:
Operating and Financial Summary (see Non-GAAP Financial Measures below)
| Revenue in the third quarter of 2014 was $98.5 million, a $10.5 million, or 11.9 percent, increase from the third quarter of 2013. |
| Occupancy for the Companys consolidated communities, excluding four communities undergoing repositioning, lease-up or significant renovation and conversion, was 87.8 percent in the third quarter of 2014, an increase of 110 basis points from the third quarter of 2013. Same-community occupancy was 87.4 percent for the third quarter of 2014, a 40 basis point sequential improvement from the second quarter of 2014 and a 70 basis point improvement from the third quarter of 2013. |
| Average monthly rent for the Companys consolidated communities increased 2.9 percent to $3,211 in the third quarter of 2014, an increase of $90 per occupied unit as compared to the third quarter of 2013. Same-community average monthly rent was $3,159, a $20 per occupied unit increase from the third quarter of 2013, and a 60 basis point improvement from the second quarter of 2014. |
| Adjusted EBITDAR increased 14.4 percent to $33.5 million in the third quarter of 2014. This does not include EBITDAR of $0.6 million related to four communities undergoing repositioning, lease-up or significant renovation and conversion. The Company is currently excluding the results of these four communities from its Non-GAAP financial measures, including Adjusted EBITDAR. The Companys Adjusted EBITDAR margin was 35.6% for the third quarter of 2014, an increase of 40 basis points versus the third quarter of the prior year. |
| Adjusted Cash From Facility Operations (CFFO) increased 24.0 percent to $11.1 million, or $0.39 per share, in the third quarter of 2014, excluding the four communities previously noted, an increase of $0.07 per share, from the third quarter of 2013. |
CAPITAL/Page 2
| The Companys Net Loss for the third quarter of 2014 was $5.8 million, or 20 cents per share, due to non-cash amortization of resident leases associated with communities acquired by the Company in the previous 12 months. Adjusted Net Income was $0.7 million, or $0.02 per share, for the third quarter of 2014. |
| The Company announces today that on August 27, 2014, the Company acquired a community in a state where it already has existing operations for a purchase price of approximately $13.5 million. This community is expected to generate incremental annual CFFO of approximately $0.02 per share. |
| As disclosed in our second quarter earnings release, the Company also completed the acquisition of two senior living communities on August 4, 2014, for a purchase price of approximately $33.9 million. These communities are expected to generate incremental annual CFFO of approximately $0.04 per share. |
Our third quarter results reflect the positive momentum that continues to build in all of our important metrics, with higher revenue growth and lower expense growth in the third quarter than in the first two quarters of this year and continued solid increases in occupancy, Adjusted EBITDAR and Adjusted CFFO, said Lawrence A. Cohen, Chief Executive Officer of the Company. Our same-community average monthly rent increased by 60 basis points in the third quarter of 2014 as compared to the second quarter, building on the 70 basis point sequential increase in average monthly rent from the first quarter to the second quarter of 2014. Our same store occupancy increased 40 basis points from the second quarter of 2014 to the third quarter of 2014, the fourth consecutive quarter to show a sequential gain. We continue to be focused on reducing attrition and are making steady progress on our work to convert approximately 360 vacant independent living units to assisted living and memory care units, which we expect to improve overall occupancy by approximately 300 basis points once they are stabilized.
Complementing this 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 closed on three such communities in the third quarter and continue to pursue additional opportunities.
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.
CAPITAL/Page 3
Recent Investment Activity
| On August 27, 2014, the Company completed the acquisition of a senior living community for a purchase price of $13.5 million. This community adds to the Companys operations in the state of Wisconsin and is comprised of 75 assisted living units. |
Highlights of this transaction include:
| Increases annual Adjusted CFFO by approximately $0.7 million, or $0.02 per share. |
| Adds approximately $0.4 million to earnings, or $0.01 per share. |
| Increases annual revenue by approximately $3.4 million. |
| Average monthly rent for the community is approximately $4,600. |
The community was financed with approximately $10.4 million of non-recourse 10-year mortgage debt at a fixed interest rate of 4.70%.
| As previously disclosed, the Company completed the acquisition of two senior living communities on August 4, 2014, for a combined purchase price of $33.9 million. These communities add to the Companys operations in the states of Virginia and Wisconsin and are comprised of 184 assisted living units. |
| The Company is conducting due diligence on additional acquisitions of high-quality senior living communities in states with extensive existing operations totaling approximately $75 million. Subject to completion of customary closing conditions, at least one of the acquisitions, valued at approximately $14.5 million, is expected to close by the end of the fourth quarter of 2014, with the remainder expected to close in the first quarter of 2015. |
Financial Results - Third Quarter
For the third quarter of 2014, the Company reported revenue of $98.5 million, compared to revenue of $88.0 million in the third quarter of 2013. Resident and healthcare revenue increased from the third quarter of the prior year by approximately $12.1 million, or 14.1%, mostly due to the acquisition of 15 communities during or after the third quarter of 2013. As expected, community reimbursement revenue and affiliated management revenue decreased approximately $1.6 million in the third quarter of 2014 as compared to the third quarter of 2013. The acquisition of three Ohio communities in which the Company previously held a 10 percent interest as a joint venture on June 30, 2014, resulted in the elimination of these two revenue items as well as community reimbursement expense.
CAPITAL/Page 4
Operating expenses for the third quarter of 2014 were $60.0 million, an increase of $7.1 million from the third quarter of 2013, primarily due to the acquisition of 15 communities during or after the third quarter of 2013.
General and administrative expenses for the third quarter of 2014 were $5.5 million in the third quarter of 2014, which includes $0.7 million of transaction and other one-time costs. Excluding transaction and other one-time costs from the third quarters of 2014 and 2013, general and administrative expenses increased $0.2 million in the third quarter of 2014 over the third quarter of 2013. General and administrative expenses, excluding transaction and other one-time costs, were 4.9% as a percentage of revenues under management in the third quarter of 2014, as compared to 5.2% in the third quarter of 2013.
The Companys Non-GAAP financial measures exclude four communities that are undergoing repositioning, lease-up of higher-licensed units or significant renovation and conversion. Three communities were excluded in the previous quarter. During the third quarter of 2014, the Company began a significant renovation project at a community to convert IL units to AL units, which required vacating 45 units; thus, the Company removed this community from its non-GAAP measures and certain supplemental information beginning in the third quarter of 2014.
Adjusted EBITDAR for the third quarter of 2014 was approximately $33.5 million, an increase of $4.2 million, or 14.4%, from the third quarter of 2013. This does not include EBITDAR of $0.6 million related to four communities undergoing repositioning, lease-up or significant renovation and conversion. The Adjusted EBITDAR margin for the third quarter of 2014 was 35.6%, an increase of 40 basis points from the third quarter of 2013.
The Company had $0.7 million, or $0.02 per share, of adjusted net income for the third quarter of 2014, excluding non-recurring or non-economic items reconciled on the final page of this release. This compares to a net loss of $5.8 million before adjusting for these non-recurring or non-economic items. Adjusted CFFO was $11.1 million, or $0.39 per share, in the third quarter of 2014, an increase of 24.0%, or $2.2 million and $0.07 per share, versus the third quarter of 2013.
Operating Activities
Same-community results exclude the four communities previously noted that are undergoing repositioning, lease-up or significant renovation and conversion, and transaction and other one-time costs of $0.2 million.
Same-community revenue in the third quarter of 2014 increased 1.3% versus the third quarter of 2013. Same-community expenses increased 1.6% from the third
CAPITAL/Page 5
quarter of the prior year. Labor costs, including benefits, were up approximately 2.3%, food costs increased 1.8% and utilities were flat as compared to the third quarter of the prior year. Advertising and promotion fees were $0.2 million higher due to initiatives aimed at increasing occupancy and revenue.
Same-community results continued to show significant sequential improvement in the third quarter of 2014. Same-community revenues were up sequentially over the second quarter by 1.1% and were 1.8% higher than the first quarter. Same-community occupancies increased 40 basis points from the second quarter to 87.4% and average rent increased $19, or 0.6%, to $3,159 per occupied unit from the second quarter to the third quarter. Same-community expenses were only $0.3 million higher than the second quarter of 2014, even with an additional day of expense versus the second quarter and utilities costs that were $0.5 million higher, as expected, related to summer weather. Same-community net operating income was 1.5% higher than the second quarter of 2014.
Capital expenditures for the third quarter of 2014 were $5.5 million, representing approximately $4.3 million of investment spending and approximately $1.2 million of recurring capital expenditures. If annualized, spending for recurring capital expenditures was approximately $410 per unit.
Balance Sheet
The Company ended the quarter with $39.3 million of cash and cash equivalents, including restricted cash. During the quarter, the Company invested $10.8 million of cash as equity to complete the acquisitions of three communities and spent $5.5 million on capital improvements.
As of September 30, 2014, the Company financed its 66 owned communities with mortgages totaling $623.9 million at interest rates averaging 4.7%. All of the Companys debt is at fixed interest rates, except for six bridge loans totaling approximately $65.2 million at variable rates averaging 3.9%. The Company has no mortgage maturities before the third quarter of 2015.
The Companys cash on hand and cash flow from operations are expected to be sufficient for working capital, prudent reserves and the equity needed to fund the Companys acquisition program.
Q3 2014 Conference Call Information
The Company will host a conference call with senior management to discuss the Companys third quarter financial results. The call will be held on Tuesday, November 4, 2014, at 5:00 p.m. Eastern Time. The call-in number is 913-312-0419, confirmation code 7261660. A link to a simultaneous webcast of the teleconference will be available at www.capitalsenior.com through Windows Media Player or RealPlayer.
CAPITAL/Page 6
For the convenience of the Companys shareholders and the public, the conference call will be recorded and available for replay starting Tuesday, November 4, 2014 at 8:00 p.m. Eastern Time, until Thursday, November 13, 2014 at 8:00 p.m. Eastern Time. To access the conference call replay, call 719-457-0820, confirmation code 7261660. The conference call will also be made available for playback via the Companys corporate website, www.capitalsenior.com, beginning November 5, 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 Companys consolidated balance sheets, statements of operations, and statements of cash flows.
About the Company
Capital Senior Living Corporation is one of the nations largest operators of residential communities for senior adults. The Companys operating strategy is to provide value to residents by providing quality senior living services at reasonable prices. The Companys 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 116 senior living communities in geographically concentrated regions with an aggregate capacity of approximately 15,000 residents.
Safe Harbor
The forward-looking statements in this release are subject to certain risks and uncertainties that could cause results to differ materially, including, but not without limitation to, the Companys 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
CAPITAL/Page 7
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 Carey P. Hendrickson, Chief Financial Officer, at 972-770-5600 for more information.
CAPITAL/Page 8
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, 2014 |
December 31, 2013 |
|||||||
(unaudited) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 27,816 | $ | 13,611 | ||||
Restricted cash |
11,468 | 11,425 | ||||||
Accounts receivable, net |
5,716 | 3,752 | ||||||
Accounts receivable from affiliates |
6 | 416 | ||||||
Federal and state income taxes receivable |
5,214 | 5,123 | ||||||
Deferred taxes |
441 | 845 | ||||||
Property tax and insurance deposits |
10,660 | 11,036 | ||||||
Prepaid expenses and other |
3,525 | 6,605 | ||||||
|
|
|
|
|||||
Total current assets |
64,846 | 52,813 | ||||||
Property and equipment, net |
774,211 | 649,967 | ||||||
Investments in unconsolidated joint ventures |
| 1,010 | ||||||
Other assets, net |
40,696 | 41,759 | ||||||
|
|
|
|
|||||
Total assets |
$ | 879,753 | $ | 745,549 | ||||
|
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 4,052 | $ | 3,813 | ||||
Accounts payable to affiliates |
11 | 1 | ||||||
Accrued expenses |
32,524 | 29,321 | ||||||
Current portion of notes payable |
37,636 | 11,918 | ||||||
Current portion of deferred income |
13,376 | 11,215 | ||||||
Current portion of capital lease and financing obligations |
981 | 948 | ||||||
Customer deposits |
1,606 | 1,489 | ||||||
|
|
|
|
|||||
Total current liabilities |
90,186 | 58,705 | ||||||
Deferred income |
16,464 | 18,021 | ||||||
Capital lease and financing obligations, net of current portion |
40,430 | 41,093 | ||||||
Deferred taxes |
441 | 845 | ||||||
Other long-term liabilities |
1,459 | 1,559 | ||||||
Notes payable, net of current portion |
587,285 | 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 29,095 and 28,845 in 2014 and 2013, respectively |
294 | 292 | ||||||
Additional paid-in capital |
149,482 | 143,721 | ||||||
Retained (deficit) earnings |
(5,354 | ) | 14,871 | |||||
Treasury stock, at cost 350 shares |
(934 | ) | (934 | ) | ||||
|
|
|
|
|||||
Total shareholders equity |
143,488 | 157,950 | ||||||
|
|
|
|
|||||
Total liabilities and shareholders equity |
$ | 879,753 | $ | 745,549 | ||||
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|
CAPITAL/Page 9
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited, in thousands, except per share data)
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues: |
||||||||||||||||
Resident and health care revenue |
$ | 98,466 | $ | 86,333 | $ | 280,240 | $ | 256,409 | ||||||||
Affiliated management services revenue |
| 205 | 415 | 586 | ||||||||||||
Community reimbursement revenue |
17 | 1,445 | 3,110 | 4,432 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
98,483 | 87,983 | 283,765 | 261,427 | ||||||||||||
Expenses: |
||||||||||||||||
Operating expenses (exclusive of facility lease expense and depreciation and amortization expense shown below) |
59,992 | 52,936 | 171,268 | 154,186 | ||||||||||||
General and administrative expenses |
5,515 | 5,026 | 15,137 | 15,029 | ||||||||||||
Facility lease expense |
14,841 | 14,274 | 44,524 | 42,813 | ||||||||||||
Stock-based compensation expense |
1,599 | 869 | 5,676 | 3,158 | ||||||||||||
Depreciation and amortization |
13,840 | 10,533 | 35,607 | 33,183 | ||||||||||||
Community reimbursement expense |
17 | 1,445 | 3,110 | 4,432 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
95,804 | 85,083 | 275,322 | 252,801 | ||||||||||||
|
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|
|
|
|
|||||||||
Income from operations |
2,679 | 2,900 | 8,443 | 8,626 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest income |
12 | 17 | 40 | 138 | ||||||||||||
Interest expense |
(8,255 | ) | (5,943 | ) | (22,785 | ) | (17,321 | ) | ||||||||
Write-off of deferred loan costs and prepayment premiums |
| | (6,979 | ) | | |||||||||||
Joint venture equity investment valuation gain |
| | 1,519 | | ||||||||||||
Loss on disposition of assets, net |
(1 | ) | 13 | (11 | ) | 12 | ||||||||||
Equity in earnings of unconsolidated joint ventures, net |
| 43 | 105 | 76 | ||||||||||||
Other income |
5 | 10 | 22 | 28 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss before provision for income taxes |
(5,560 | ) | (2,960 | ) | (19,646 | ) | (8,441 | ) | ||||||||
Provision for income taxes |
(199 | ) | (7,003 | ) | (579 | ) | (5,668 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss |
$ | (5,759 | ) | $ | (9,963 | ) | $ | (20,225 | ) | $ | (14,109 | ) | ||||
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|
|
|
|
|
|
|
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Per share data: |
||||||||||||||||
Basic net loss per share |
$ | (0.20 | ) | $ | (0.35 | ) | $ | (0.70 | ) | $ | (0.49 | ) | ||||
|
|
|
|
|
|
|
|
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Diluted net loss per share |
$ | (0.20 | ) | $ | (0.35 | ) | $ | (0.70 | ) | $ | (0.49 | ) | ||||
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|
|
|
|
|
|
|||||||||
Weighted average shares outstanding basic |
28,371 | 27,911 | 28,273 | 27,769 | ||||||||||||
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|
|
|
|||||||||
Weighted average shares outstanding diluted |
28,371 | 27,911 | 28,273 | 27,769 | ||||||||||||
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|
|
|
|
|||||||||
Comprehensive loss |
$ | (5,759 | ) | $ | (9,963 | ) | $ | (20,225 | ) | $ | (14,109 | ) | ||||
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CAPITAL/Page 10
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
Nine Months Ended September 30, |
||||||||
2014 | 2013 | |||||||
Operating Activities |
||||||||
Net loss |
$ | (20,225 | ) | $ | (14,109 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
35,607 | 33,183 | ||||||
Amortization of deferred financing charges |
999 | 822 | ||||||
Amortization of deferred lease costs and lease intangibles |
922 | 978 | ||||||
Deferred income |
604 | (344 | ) | |||||
Deferred income taxes |
| 5,505 | ||||||
Write-off of deferred loan costs and prepayment premiums |
6,979 | | ||||||
Joint venture equity investment valuation gain |
(1,519 | ) | | |||||
Loss (Gain) on disposition of assets, net |
11 | (12 | ) | |||||
Equity in earnings of unconsolidated joint ventures |
(105 | ) | (76 | ) | ||||
Provision for bad debts |
517 | 330 | ||||||
Stock-based compensation expense |
5,676 | 3,158 | ||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
(2,481 | ) | 241 | |||||
Accounts receivable from affiliates |
410 | 433 | ||||||
Property tax and insurance deposits |
376 | (1,058 | ) | |||||
Prepaid expenses and other |
3,080 | (867 | ) | |||||
Other assets |
756 | (3,101 | ) | |||||
Accounts payable |
249 | (4,424 | ) | |||||
Accrued expenses |
3,203 | 4,142 | ||||||
Federal and state income taxes receivable/payable |
(91 | ) | 3,523 | |||||
Customer deposits |
117 | (22 | ) | |||||
|
|
|
|
|||||
Net cash provided by operating activities |
35,085 | 28,302 | ||||||
Investing Activities |
||||||||
Capital expenditures |
(13,394 | ) | (9,888 | ) | ||||
Cash paid for acquisitions |
(145,555 | ) | (53,741 | ) | ||||
Proceeds from disposition of assets |
4 | 18 | ||||||
Proceeds from SHPIII/CSL Transaction |
2,532 | | ||||||
Distributions from unconsolidated joint ventures |
102 | 97 | ||||||
|
|
|
|
|||||
Net cash used in investing activities |
(156,311 | ) | (63,514 | ) | ||||
Financing Activities |
||||||||
Proceeds from notes payable |
267,685 | 56,939 | ||||||
Repayments of notes payable |
(128,553 | ) | (20,534 | ) | ||||
Increase in restricted cash |
(43 | ) | (1,239 | ) | ||||
Cash payments for capital lease and financing obligations |
(630 | ) | (558 | ) | ||||
Cash proceeds from the issuance of common stock |
169 | 2,761 | ||||||
Excess tax benefits on stock option exercised |
(82 | ) | (1,445 | ) | ||||
Deferred financing charges paid |
(3,115 | ) | (684 | ) | ||||
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|
|
|
|||||
Net cash provided by financing activities |
135,431 | 35,240 | ||||||
|
|
|
|
|||||
Increase in cash and cash equivalents |
14,205 | 28 | ||||||
Cash and cash equivalents at beginning of period |
13,611 | 18,737 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period |
$ | 27,816 | $ | 18,765 | ||||
|
|
|
|
|||||
Supplemental Disclosures |
||||||||
Cash paid during the period for: |
||||||||
Interest |
$ | 20,873 | $ | 16,058 | ||||
|
|
|
|
|||||
Income taxes |
$ | 714 | $ | 677 | ||||
|
|
|
|
CAPITAL/Page 11
Capital Senior Living Corporation
Supplemental Information
Average | ||||||||||||||||||||||||
Communities | Resident Capacity | Average Units | ||||||||||||||||||||||
Q3 14 | Q3 13 | Q3 14 | Q3 13 | Q3 14 | Q3 13 | |||||||||||||||||||
Portfolio Data |
||||||||||||||||||||||||
I. Community Ownership / Management |
||||||||||||||||||||||||
Consolidated communities |
||||||||||||||||||||||||
Owned |
66 | 53 | 8,718 | 7,089 | 6,772 | 5,599 | ||||||||||||||||||
Leased |
50 | 50 | 6,333 | 6,298 | 4,989 | 5,026 | ||||||||||||||||||
Joint Venture communities (equity method) |
| 3 | | 674 | | 435 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
116 | 106 | 15,051 | 14,061 | 11,761 | 11,060 | ||||||||||||||||||
Independent living |
7,597 | 7,554 | 6,171 | 6,183 | ||||||||||||||||||||
Assisted living |
7,454 | 6,337 | 5,590 | 4,743 | ||||||||||||||||||||
Skilled nursing |
| 170 | | 134 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
15,051 | 14,061 | 11,761 | 11,060 | ||||||||||||||||||||
II. Percentage of Operating Portfolio |
||||||||||||||||||||||||
Consolidated communities |
||||||||||||||||||||||||
Owned |
56.9 | % | 50.0 | % | 57.9 | % | 50.4 | % | 57.6 | % | 50.6 | % | ||||||||||||
Leased |
43.1 | % | 47.2 | % | 42.1 | % | 44.8 | % | 42.4 | % | 45.4 | % | ||||||||||||
Joint Venture communities (equity method) |
| 2.8 | % | | 4.8 | % | | 4.0 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
Independent living |
50.5 | % | 53.7 | % | 52.5 | % | 55.9 | % | ||||||||||||||||
Assisted living |
49.5 | % | 45.1 | % | 47.5 | % | 42.9 | % | ||||||||||||||||
Skilled nursing |
| 1.2 | % | | 1.2 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
CAPITAL/Page 12
Capital Senior Living Corporation
Supplemental Information
Selected Operating Results | Q3 14 | Q3 13 | ||||||
I. Owned communities (excludes 3 communities being repositioned/leased up) |
||||||||
Number of communities |
63 | 50 | ||||||
Resident capacity |
8,109 | 6,310 | ||||||
Unit capacity |
6,275 | 4,969 | ||||||
Financial occupancy (1) |
89.0 | % | 86.9 | % | ||||
Revenue (in millions) |
50.1 | 36.2 | ||||||
Operating expenses (in millions) (2) |
28.3 | 20.4 | ||||||
Operating margin |
44 | % | 44 | % | ||||
Average monthly rent |
2,993 | 2,795 | ||||||
II. Leased communities (excludes 1 community being repositioned/leased up) |
||||||||
Number of communities |
49 | 49 | ||||||
Resident capacity |
6,107 | 6,072 | ||||||
Unit capacity |
4,841 | 4,839 | ||||||
Financial occupancy (1) |
86.2 | % | 86.5 | % | ||||
Revenue (in millions) |
43.9 | 43.4 | ||||||
Operating expenses (in millions) (2) |
21.8 | 21.4 | ||||||
Operating margin |
50 | % | 51 | % | ||||
Average monthly rent |
3,503 | 3,457 | ||||||
III. Consolidated communities (excludes 4 communities being repositioned/leased up) |
||||||||
Number of communities |
112 | 99 | ||||||
Resident capacity |
14,216 | 12,382 | ||||||
Unit capacity |
11,116 | 9,808 | ||||||
Financial occupancy (1) |
87.8 | % | 86.7 | % | ||||
Revenue (in millions) |
94.0 | 79.6 | ||||||
Operating expenses (in millions) (2) |
50.1 | 41.8 | ||||||
Operating margin |
47 | % | 47 | % | ||||
Average monthly rent |
3,211 | 3,121 | ||||||
IV. Communities under management (excludes 4 communities being repositioned/leased up) |
||||||||
Number of communities |
112 | 102 | ||||||
Resident capacity |
14,216 | 13,056 | ||||||
Unit capacity |
11,116 | 10,244 | ||||||
Financial occupancy (1) |
87.8 | % | 86.8 | % | ||||
Revenue (in millions) |
94.0 | 83.7 | ||||||
Operating expenses (in millions) (2) |
50.2 | 44.0 | ||||||
Operating margin |
47 | % | 47 | % | ||||
Average monthly rent |
3,211 | 3,140 | ||||||
V. Same communities under management (excludes 4 communities being repositioned/leased up) |
||||||||
Number of communities |
100 | 100 | ||||||
Resident capacity |
12,941 | 12,911 | ||||||
Unit capacity |
10,223 | 10,225 | ||||||
Financial occupancy (1) |
87.4 | % | 86.7 | % | ||||
Revenue (in millions) |
84.6 | 83.5 | ||||||
Operating expenses (in millions) (2) |
44.7 | 43.9 | ||||||
Operating margin |
47 | % | 47 | % | ||||
Average monthly rent |
3,159 | 3,139 | ||||||
VI. General and Administrative expenses as a percent of Total Revenues under Management |
||||||||
Third Quarter (3) |
4.9 | % | 5.2 | % | ||||
First nine months (3) |
4.7 | % | 5.2 | % | ||||
VII. Consolidated Mortgage Debt Information (in thousands, except interest rates) |
||||||||
(excludes insurance premium and auto financing) |
||||||||
Total fixed rate mortgage debt |
558,726 | 382,531 | ||||||
Total variable rate mortgage debt |
65,222 | 13,022 | ||||||
Weighted average interest rate |
4.7 | % | 5.2 | % |
(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 13
CAPITAL SENIOR LIVING CORPORATION
NON-GAAP RECONCILIATIONS
(In thousands, except per share data)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Adjusted EBITDAR |
||||||||||||||||
Net income from operations |
$ | 2,679 | $ | 2,900 | $ | 8,443 | $ | 8,626 | ||||||||
Depreciation and amortization expense |
13,840 | 10,533 | 35,607 | 33,183 | ||||||||||||
Stock-based compensation expense |
1,599 | 869 | 5,676 | 3,158 | ||||||||||||
Facility lease expense |
14,841 | 14,274 | 44,524 | 42,813 | ||||||||||||
Provision for bad debts |
145 | 89 | 517 | 330 | ||||||||||||
Casualty losses |
167 | 142 | 582 | 382 | ||||||||||||
Transaction and conversion costs |
858 | 360 | 2,098 | 1,205 | ||||||||||||
Communities being repositioned/leased up |
(618 | ) | 120 | (971 | ) | 120 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDAR |
$ | 33,511 | $ | 29,287 | $ | 96,476 | $ | 89,817 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDAR Margin |
||||||||||||||||
Adjusted EBITDAR |
$ | 33,511 | $ | 29,287 | $ | 96,476 | $ | 89,817 | ||||||||
Total revenues |
$ | 98,483 | $ | 87,983 | $ | 283,765 | $ | 261,427 | ||||||||
Communities being repositioned/leased up |
(4,370 | ) | (4,860 | ) | (10,073 | ) | (4,860 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted revenues |
$ | 94,113 | $ | 83,123 | $ | 273,692 | $ | 256,567 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDAR margin |
35.6 | % | 35.2 | % | 35.2 | % | 35.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted net income and net income per share |
||||||||||||||||
Net loss |
$ | (5,759 | ) | $ | (9,963 | ) | $ | (20,225 | ) | $ | (14,109 | ) | ||||
Casualty losses, net of tax |
105 | 89 | 367 | 241 | ||||||||||||
Transaction and conversion costs, net of tax |
541 | 227 | 1,322 | 759 | ||||||||||||
Resident lease amortization, net of tax |
3,250 | 2,471 | 7,447 | 8,837 | ||||||||||||
Write-off of deferred loan costs and prepayment premium, net of tax |
| | 4,397 | | ||||||||||||
Joint venture equity investment valuation gain, net of tax |
| | (957 | ) | | |||||||||||
(Gain)Loss on disposition of assets, net of tax |
1 | (8 | ) | 7 | (8 | ) | ||||||||||
Deferred tax asset valuation allowance |
2,068 | 7,513 | 7,463 | 7,513 | ||||||||||||
Communities being repositioned/leased up, net of tax |
485 | 414 | 1,049 | 414 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted net income |
$ | 691 | $ | 743 | $ | 870 | $ | 3,647 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted net income per share |
$ | 0.02 | $ | 0.03 | $ | 0.03 | $ | 0.13 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted shares outstanding |
28,374 | 27,937 | 28,228 | 27,839 | ||||||||||||
Adjusted CFFO and Adjusted CFFO per share |
||||||||||||||||
Net loss |
$ | (5,759 | ) | $ | (9,963 | ) | $ | (20,225 | ) | $ | (14,109 | ) | ||||
Non-cash charges, net |
16,805 | 19,093 | 49,691 | 43,544 | ||||||||||||
Recurring capital expenditures |
(1,090 | ) | (970 | ) | (3,155 | ) | (2,875 | ) | ||||||||
Casualty losses |
167 | 142 | 582 | 382 | ||||||||||||
Transaction and conversion costs |
858 | 360 | 2,098 | 1,205 | ||||||||||||
Tax impact of Spring Meadows Transaction |
(106 | ) | (106 | ) | (318 | ) | (318 | ) | ||||||||
Communities being repositioned/leased up, net of tax |
225 | 394 | 447 | 394 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted CFFO |
$ | 11,100 | $ | 8,950 | $ | 29,120 | $ | 28,223 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted CFFO per share |
$ | 0.39 | $ | 0.32 | $ | 1.03 | $ | 1.01 | ||||||||
|
|
|
|
|
|
|
|
***
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 Companys 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
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,
each
of
which
is
included
at
the
end
of
the
Companys earnings releases, along with the Companys consolidated balance
sheets, statements of operations, and statements of cash flows.
|
4
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 and economy
Achieving solid growth in revenue, occupancy, EBITDAR and CFFO
Executing on disciplined accretive growth initiatives through
acquisitions and conversions to higher levels of care
Solid balance sheet |
5
Company Overview
Capital Senior Living operates 116 communities in geographically
concentrated regions with the capacity to serve 15,100 residents
Number of residents by State
Greater than 2,000
500 -
2,000
Less than 500
AR.
173
AZ.
189
IA.
122
IL.
650
IN.
2,247
KS.
165
LA.
133
MI.
429
MN.
173
MO.
662
MS.
143
NE.
668
OK.
143
TX.
3,720
CT.
178
FL.
226
NC.
593
SC.
669
NJ.
98
NY.
387
OH.
2,060
VA.
317
WI.
341
GA.
70
MA.
87
Owned
58%
Leased
42%
CA.
408
Resident Capacity By State
Property Ownership Structure |
6
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 |
7
The Capital Advantage: Senior Living Options
Independent Living
51% 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 $2,422
100% private pay
Average length of resident stay is 31 months |
8
The Capital Advantage: Senior Living Options
Assisted Living-
49% of Resident Capacity
Average 68 units per community
75% of communities offer AL
Assistance with activities of daily living including medication
reminders, bathing, dressing and grooming
Average monthly rate of $4,020
Substantially all private pay
Average length of resident stay is 24 months |
9
The Capital Advantage: Need Driven Demand
U.S. population 75+ years old is estimated to be 12% of the population by
2030 compared to 6% in 2012
Source: 2010 Census Summary File 1 and U.S. Census Bureau, Population Division
U.S.
Seniors
Population
Trends
(75+
years
old)
15,000
17,500
20,000
22,500
25,000
27,500
30,000
32,500
35,000
2010
2015
2020
2025
2030
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
|
10
The Capital Advantage: Limited New Supply
Source: NIC MAP Trends All Markets Q3 14
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Absorption
Inventory Growth |
11
The
Capital
Advantage:
Senior
Housing
Occupancy
Trends
Source: NIC MAP Trends All Markets Q3 14
86.0%
87.0%
88.0%
89.0%
90.0%
91.0%
92.0%
IL Communities
AL Communities |
12
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 |
13
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
|
14
2014 Business Plan
Focused on Operations, marketing and growth to enhance
shareholder value through:
Organic growth
Proactive expense Management
Accretive acquisitions, unit conversions and community
refurbishment projects
Utilization of technology |
15
2014 Business Plan: Organic Growth
Increase average rents
Each 3% increase generates $11.8M of revenue
Improve occupancies
Each 1% generates $4.0M of revenue, $2.8M 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 charges |
16
Solving to Achieve 90% Occupancy
Q3 2014
(1)
IL
AL
Total
Total Units
5,775
5,341
11,116
Occupied Units
4,944
4,816
9,760
Occupancy %
90.2%
87.8%
Planned IL to AL Conversions
IL
AL
Units
(360)
360
At 90% Stabilized
Occupancy
324
Occupancy After Conversions
Stabilize
IL
AL
Total
Total Units
5,415
5,701
11,116
Occupied Units
4,944
5,140
10,084
Occupancy %
91.3%
90.2%
90.7%
(1)
Excludes CCRCs , Autumn Glen, and Veranda Club
85.6%
Note: Conversions are subject to customary approvals |
17
Canton Regency Remodel Concepts
Existing Atrium
Concept Atrium
Concept Bistro
Concept Internet Cafe |
18
2014 Business Plan: External Growth
Strategic acquisitions of high quality senior living communities
to
enhance
geographic
concentrations
16.4%
cash
on
cash
returns
*Based on share count at time of
transaction (in millions except number of communities)
2011
2012
2013
Q3 14 YTD
Combined
Purchase Price
$83.4
$181.3
$150.4
$145.6
$560.7
Communities
7
17
11
7
42
Units
551
1,367
881
762
3,561
Debt
$59.3
$129.5
$112.3
$109.3
$410.4
Equity
$24.1
$51.8
$38.1
$36.3
$150.3
First Year Revenue
$21.3
$49.1
$35.1
$34.2
$139.7
First Year EBITDAR
$7.3
$19.1
$14.1
$13.3
(1)
$53.8
First Year Cash Flow
from Operations
(CFFO)
$3.4
$9.1
$5.8
$6.4
(1)
$24.7
First Year CFFO per
share*
$0.13
$0.34
$0.20
$0.21
(1)
$0.88
(1)
Net of $0.9 million of management fees related to communities previously managed
under a JV agreement |
19
Operating Performance
Revenue and EBITDAR growth
EBITDAR has increased at an 18.0% CAGR on a 15.2% CAGR in
revenue since the beginning of 2010.
EBITDAR margin increased from 29.9% in Q1 2010 to 35.6% in Q3
2014.
*
As adjusted in press releases
24.0%
26.0%
28.0%
30.0%
32.0%
34.0%
36.0%
38.0%
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
Revenue
EBITDAR *
EBITDAR Margin % * |
20
Comparative Operating Metrics
Note: EBITDAR and CFFO are as adjusted in press releases.
Q3 14
Q3 13
% Increase
Total Revenues
$ 98.5
$ 88.0
11.9%
Adjusted EBITDAR
$ 33.5
$ 29.3
14.4%
% Margin
35.6%
35.2%
Adjusted CFFO
$ 11.1
$ 8.9
24.0%
Adjusted CFFO Per Share
$ 0.39
$ 0.32 |
21
Balance Sheet
As of September 30, 2014 (in millions)
ASSETS
Cash and Securities
$ 39.3
Other Current Assets
25.5
Total Current Assets
64.8
Fixed Assets
774.2
Other Assets
40.8
TOTAL ASSETS
$ 879.8
LIABILITIES & EQUITY
Current Liabilities
$ 90.2
Long-Term Debt
587.3
Other Liabilities
58.8
Total Liabilities
736.3
Stockholders
Equity
143.5
TOTAL LIABILITIES &
EQUITY
$ 879.8 |
22
Investment Highlights
Value
leader
in
geographically
concentrated
regions
Substantially all private pay
Need-driven
demand,
limited
new
supply
and
improving
housing
market
and
economy
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 |
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