EX-99.2 3 d920616dex992.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
AZ
. 
18
9
CT. 
178
FL.
226
IA. 
122
IL. 
650
IN. 
2,24
7
KS. 
165
MI.
244
MN.
173
MO. 
662
MS.
143
NC.
432
SC.
669
NE. 
668
NJ
. 
98
NY. 
387
OH. 
2,060
TX. 
3,870
VA.
317
CA. 
408
Company Overview
•
Capital Senior Living operates 115 communities in geographically
concentrated regions with the capacity to serve 15,000 residents
Resident Capacity By State
AZ. 
189
GA
. 
168
MA
. 
68
WI. 
497
MA.
87
Number of residents by State
Greater than 2,000
500 -
2,000
Less than 500

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 –
47% of Resident Capacity
•
Average 111 units per IL community with large common areas and
amenities
•
Supportive services, wellness programs, social, recreational and
educational events
•
Average monthly rate of $2,528
•
100% private pay
•
Average length of resident stay is 31 months

8
The Capital Advantage: Senior Living Options
Assisted Living-
53% of Resident Capacity
•
Average 69 units per community
•
78% of communities offer AL
•
Assistance with activities of daily living including medication
reminders, bathing, dressing and grooming
•
Average monthly rate of $3,986
•
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 Senior Housing All Markets

11
The
Capital
Advantage:
Senior
Housing
Occupancy
Trends
Source: NIC MAP Trends All Markets Q1 15

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

16
Conversions:
Significant
Increases
in
Occupancy,
Revenue
and
CFFO
(1)
As of June 30, 2014 -
excludes
CCRC’s , Autumn Glen, and
Veranda Club
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
Vacant Units
(225)
225
At 90% Stabilized Occupancy
203
Incremental
Conversions
(175)
175
Occupancy After Conversions
IL
AL
Total
Total Units
5,792
5,834
11,626
Occupied Units
5,112
5,247
10,359
Occupancy %
88.3%
89.9%
89.1%
Annual Financial Impact
Incremental CFFO:        Approx. $0.20 per share

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

18
Community Portfolio Growth: 2010 to Present
Owned %
32.5%
38.1%
47.5%
52.7%
57.3%
56.5%

19
2015 Business Plan: External Growth
•
Strategic
acquisitions
of
high
quality
senior
living
communities
to
enhance
geographic
concentrations
–
16.1%
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
$47.9
$623.2
Communities
7
17
11
8
2
45
Units
551
1,367
881
819
207
3,825
Debt
$59.3
$129.5
$112.3
$119.7
$35.5
$456.3
Equity
$24.1
$51.8
$38.1
$40.5
$12.4
$166.9
First Year Revenue
$21.3
$49.1
$35.1
$36.4
$8.9
$150.8
First Year EBITDAR
$7.3
$19.1
$14.1
$15.0
$3.9
$59.4
First Year Cash Flow from
Operations (CFFO)
$3.4
$9.1
$5.8
$6.7
$1.9
$26.9
First Year CFFO per share*
$0.13
$0.34
$0.20
$0.23
$0.06
$0.96

20
Key Metrics: Consistent Significant Growth
Revenue *
Adjusted  EBITDAR
Adjusted EBITDAR Margin
* Excludes community reimbursement revenue and management services
revenue
Adjusted CFFO per share
*
Excludes
prepaid
resident
rents
and
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.
Q1 15
Q1 14
% Increase
Total Revenues
$ 98.6
$ 91.9
7.4%
Adjusted EBITDAR
$ 34.1
$ 31.0
10.2%
% Margin
36.2%
34.7%
Adjusted CFFO
$ 10.5
$ 8.2
27.6%
Adjusted CFFO Per Share
$ 0.37
$ 0.29
27.6%

22
Balance Sheet
•
As of March 31, 2015 (in millions)
ASSETS
Cash and Securities
$ 63.3
Other Current Assets
20.0
Total Current Assets
83.3
Fixed Assets
787.9
Other Assets
37.8
TOTAL ASSETS
$ 909.0
LIABILITIES & EQUITY
Current Liabilities
$ 72.4
Long-Term Debt
642.9
Other Liabilities
56.8
Total Liabilities
772.1
Stockholders’
Equity
136.9
TOTAL LIABILITIES &
EQUITY
$ 909.0

23
Debt Overview : 100% Mortgage Debt
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 137 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

25
Capital Senior Living
Company Presentation