EX-99.2 3 d881728dex992.htm EXHIBIT 99.2 Exhibit 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
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
Company’s earnings releases, along with the Company’s consolidated balance sheets, statements of
operations, and statements of cash flows.

4
Company Highlights
Value leader in geographically concentrated regions 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 an
improving housing market and economy
Larger company economies of scale and proprietary systems that
yield operating efficiencies in highly fragmented industry
Executing on disciplined accretive growth initiatives through
acquisitions, conversions to higher levels of care, renovations and
refurbishments
Solid balance sheet

5
AR. 
173
CT. 
178
FL.
226
IA. 
122
IL. 
650
IN. 
2,247
KS. 
165
LA. 
133
MI.
244
MN.
173
MO. 
662
MS.
143
NC.
432
SC.
669
NE. 
668
NJ. 
98
NY. 
387
OH. 
2,060
OK. 
143
TX. 
3,720
VA.
317
CA. 
408
Company Overview
Resident Capacity By State
AZ. 
189
GA. 
168
MA. 
68
WI. 
418
MA.
87
Number of residents by State
Greater than 2,000
500 -
2,000
Less than 500
•
Capital Senior Living operates 114 communities in geographically
concentrated regions with the capacity to serve 15,000 residents

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
–
48%
of
Resident
Capacity
•
Average 107 units per IL community with large common areas and
amenities
•
Supportive services, wellness programs, social, recreational
and
educational events
•
Average monthly rate of $2,487
•
100% private pay
•
Average length of resident stay is 31 months

8
The Capital Advantage: Senior Living Options
Assisted Living-
52% of Resident Capacity
•
Average 65 units per community
•
79% of communities offer AL
•
Assistance with activities of daily living including medication
reminders, bathing, dressing and grooming
•
Average monthly rate of $3,992
•
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
•
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
Source: 2010 Census Summary File 1 and U.S. Census Bureau, Population Division
U.S. Seniors Population Trends (75+ years old)

10
The Capital Advantage: Limited New Supply
Source: NIC MAP Trends All Markets Q4 14

11
The Capital Advantage: Senior Housing Occupancy Trends
Source: NIC MAP Trends All Markets Q4 14

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 and value of 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
Focused on operations, marketing and growth to enhance
shareholder value through:
Organic growth, including the conversion of units to higher levels
of care and community renovations and refurbishment projects
Proactive expense management
Accretive acquisitions
Utilization of technology
2015 Business Plan

15
2015 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 and value enhancing renovations and refurbishments
•
Continue to enhance sales and marketing initiatives

16
Solving to Achieve 90% Occupancy
Occupancy Prior to Conversions
(1)
IL
AL
Total
Total Units
6,192
5,434
11,626
Occupied Units
5,287
4,869
10,156
Occupancy %
85.4%
89.6%
87.4%
Planned IL to AL Conversions
IL
AL
Units
(360)
360
At 90% Stabilized
Occupancy
324
Note: Conversions are subject to customary approvals
Occupancy After Conversions
Stabilize
IL
AL
Total
Total Units
5,832
5,794
11,626
Occupied Units
5,287
5,193
10,480
Occupancy %
90.7%
89.6%
90.1%
(1)
As of June 30, 2014 -
excludes CCRC’s , Autumn Glen, and Veranda Club

17
Canton Regency Remodel Concepts
Existing Atrium
Concept Atrium
Concept Bistro
Concept Internet Cafe

18
Community Portfolio Growth: 2009 to Present
Owned %
37.9%
32.5%
38.1%
47.5%
52.7%
57.3%
56.1%
66
77
84
101
112
117
114

19
2015 Business Plan: External Growth
•
Strategic acquisitions of high quality senior living communities
to
enhance
geographic
concentrations
–
16.2%
cash
on
cash
returns
*Based on share count at time of transaction      (in millions except number of communities)
2011
2012
2013
2014
2015 YTD
Combined
Purchase Price
$83.4
$181.3
$150.4
$160.2
$18.3
$593.6
Communities
7
17
11
8
1
44
Units
551
1,367
881
819
78
3,696
Debt
$59.3
$129.5
$112.3
$119.7
$14.1
$434.9
Equity
$24.1
$51.8
$38.1
$40.5
$4.2
$158.7
First Year Revenue
$21.3
$49.1
$35.1
$36.4
$2.8
$144.7
First Year EBITDAR
$7.3
$19.1
$14.1
$15.0
$1.5
$57.0
First Year Cash Flow from
Operations (CFFO)
$3.4
$9.1
$5.8
$6.7
$0.7
$25.7
First Year CFFO per share*
$0.13
$0.34
$0.20
$0.23
$0.02
$0.92

20
Historical Key Metrics
($ In Millions)
($ In Millions)
Revenue *
Adjusted  EBITDAR
Adjusted EBITDAR Margin
* Excludes community reimbursement revenue and management services revenue
Adjusted CFFO per share
* Excludes tax savings related to cost
segregation studies of $0.25 in 2012
and $0.14 in 2013

21
Comparative Operating and Financial Metrics
Note: EBITDAR and CFFO are as adjusted in press releases.
Q4 14
Q4 13
% Increase
Total Revenues
$ 100.2
$ 88.9
12.6%
Adjusted EBITDAR
$ 36.0
$ 29.7
20.9%
% Margin
37.5%
34.6%
Adjusted CFFO
$ 13.5
$ 11.2*
20.5%
Adjusted CFFO Per Share
$ 0.48
$ 0.40*
20.0%
* Excludes $3.4 million, or $0.12 per share, from tax savings related to a cost
segregation study completed in 2013.

22
Balance Sheet
•
As of December 31, 2014 (in millions)
ASSETS
Cash and Securities
$ 51.5
Other Current Assets
61.1
Total Current Assets
112.6
Fixed Assets
747.2
Other Assets
37.9
TOTAL ASSETS
$ 897.7
LIABILITIES & EQUITY
Current Liabilities
$ 100.8
Long-Term Debt
597.9
Other Liabilities
57.8
Total Liabilities
756.5
Stockholders’
Equity
141.2
TOTAL LIABILITIES &
EQUITY
$ 897.7

23
Debt Overview : 100% Mortgage Debt
(In thousands)
Debt Maturities
Weighted Average Interest Rate
Average duration of debt is 8 years,
with approximately 92% of all debt
maturing in 2021 and after
Weighted Average Interest
Rate has decreased 133 bps
since 2010

24
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
•
Value-enhancing
conversions
to
higher
levels
of
care,
renovations
and refurbishments
•
Strong cash flow generation
•
Solid balance sheet

Capital Senior Living
Company Presentation