Capital Senior Living Corporation (the “Company”) (NYSE:CSU), one
of the nation’s largest operators of senior housing communities,
today announced operating and financial results for the second
quarter 2017. Company highlights for the second quarter
include:
Operating and Financial Summary (all amounts in
this operating and financial summary exclude three communities that
are undergoing repositioning, lease-up or significant renovation
and conversion, unless otherwise noted; also, see Non-GAAP
Financial Measures below and reconciliation of Non-GAAP
measures to the most directly comparable GAAP measure on the final
page of this release.)
• Revenue in the second quarter of 2017, including all
communities, was $116.7 million, a $5.7 million, or 5.1%, increase
from the second quarter of 2016.
- Revenue for consolidated communities, which excludes the three
communities undergoing repositioning, lease-up or significant
renovation and conversion, was $112.0 million in the second quarter
of 2017, an increase of 5.0% as compared to the second quarter of
2016.
- Occupancy for the Company’s consolidated communities was 86.8%
in the second quarter of 2017, a decrease of 90 basis points from
the first quarter of 2017 and a decrease of 160 basis points from
the second quarter of 2016. Same-community occupancy was
86.8% in the second quarter of 2017, an 80 basis point decrease
from the first quarter of 2017 and a 160 basis point decrease from
the second quarter of 2016.
- Average monthly rent for the Company’s consolidated communities
in the second quarter of 2017 was $3,584, an increase of $111 per
occupied unit, or 3.2%, as compared to the second quarter of
2016. Same-community average monthly rent was $3,563, an
increase of $88 per occupied unit, or 2.5%, from the second quarter
of 2016.
• Income from operations, including all communities, was
$4.7 million in the second quarter of 2017, which includes the
non-cash amortization of resident leases of $2.1 million associated
with communities acquired by the Company in the previous 12
months.
• The Company’s Net Loss for the second quarter of 2017,
including all communities, was $7.8 million, which includes the
non-cash amortization of resident leases of $2.1 million associated
with communities acquired by the Company in the previous 12
months.
- Excluding items noted and reconciled on the final page of this
release, the Company’s adjusted net loss was $2.3 million in the
second quarter of 2017.
- Adjusted EBITDAR was $38.3 million in the second quarter of
2017 compared to $39.0 million in the second quarter of 2016.
Adjusted EBITDAR is a financial valuation measure, rather than a
financial performance measure, used by management and others to
evaluate the value of companies in the senior living
industry. The three communities undergoing repositioning,
lease-up or significant renovation and conversion, not included in
Adjusted EBITDAR, generated an additional $1.1 million of EBITDAR
in the second quarter of 2017.
- Adjusted Cash From Facility Operations (“CFFO”) was $11.5
million in the second quarter of 2017 compared to $12.9 million in
the second quarter of 2016.
“Our occupancy improved in the second quarter following the
heavy and prolonged flu season earlier this year and our
average monthly rent increased a robust 2.1% in the first six
months of the year,” said Lawrence A. Cohen, Chief Executive
Officer of the Company. “In addition, same-community deposits
increased 6.2% and same-community move-ins improved 3.6% compared
to the second quarter of 2016. These strong demand metrics give us
excellent momentum for occupancy growth and rate growth going
forward.
“We continued to make steady progress on the lease-up of units
previously out of service in the second quarter. Importantly, we
completed the final phase of renovation and conversion of units at
one of our repositioned communities in April. The community has 249
total units and is expected to make a significant contribution to
revenue, EBITDAR and CFFO when occupancy stabilizes and its results
are added back to our non-GAAP results.
“We expect the execution of our strategic business plan to
produce outstanding growth in all of our key metrics going
forward. In addition to core growth in our operations, our
growth will be enhanced by the significant renovations we have made
across our portfolio and even greater by the return of a
significant number of units currently not included in our results
due to conversions and repositionings. And, we have a robust
acquisition pipeline that will allow us to continue to increase our
ownership of high-quality senior housing communities in
geographically concentrated regions. As such, we believe that
we are well positioned to create long-term shareholder value as a
larger company with scale, competitive advantages and a
substantially all private-pay business model in a highly-fragmented
industry that benefits from long-term demographics, need-driven
demand, limited competitive new supply in our local markets, a
strong housing market and a growing economy.”
Recent Investment Activity
- The Company announced today that it has agreed to purchase a
community for a total purchase price of approximately $20.0
million, subject to due diligence and customary closing
conditions. The acquisition, which is expected to close in
mid-October, would expand the Company’s operations in New York.
Highlights of the transaction include:- Adds 100 independent living
units with average monthly rent of approximately $3,150.- Increases
annual revenue by approximately $3.6 million.- Increases annual
Adjusted EBITDAR by approximately $1.6 million.- Increases annual
Adjusted CFFO by approximately $0.7 million.
- The Company has a strong pipeline of near- to medium-term
targets and is conducting due diligence on additional acquisitions
of high-quality senior housing communities in states with existing
operations. With a strong reputation among sellers, the
Company sources the majority of its acquisitions off-market and at
attractive terms.
Financial Results - Second Quarter
For the second quarter of 2017, the Company reported revenue of
$116.7 million, compared to revenue of $111.0 million in the second
quarter of 2016, an increase of 5.1%. The increase was mostly
due to the acquisition of three communities since the second
quarter of 2016, not including the acquisition of the four
previously-leased communities in the first quarter of 2017 which
increased Adjusted CFFO but did not result in increases to the
Company’s revenue or expense. Revenue for consolidated
communities excluding the three communities undergoing
repositioning, lease-up or significant renovation and conversion
increased 5.0% in the second quarter of 2017 as compared to the
second quarter of 2016.
Operating expenses for the second quarter of 2017 were $73.3
million, an increase of $6.1 million from the second quarter of
2016. The increase was primarily due to the acquisitions of
senior housing communities made during or since the second quarter
of 2016 and increased contract labor costs for additional staffing
required for newly licensed memory care and assisted living units,
which the Company expects to diminish as permanent staff is
hired.
General and administrative expenses for the second quarter of
2017 were $6.1 million. This compares to general and
administrative expenses of $5.0 million in the second quarter of
2016. Excluding transaction and conversion costs in both
periods, general and administrative expenses increased $1.1 million
in the second quarter of 2017 as compared to the second quarter of
2016, primarily due to a $1.4 million increase in net healthcare
expense year over year. May claims expense was unusually high
as covered employees accelerated healthcare services before higher
out of pocket expenses associated with changes to the Company’s
healthcare plans took effect in June. Structural changes in the new
program resulted in significantly lower claims expense in June and
July as expected. As a percentage of revenues under
management, general and administrative expenses, excluding
transaction and conversion costs, were 4.8% in the second quarter
of 2017 compared to 4.1% in the second quarter of 2016.
Income from operations for the second quarter of 2017 was $4.7
million. The Company recorded a net loss on a GAAP basis of
$7.8 million in the second quarter of 2017. Excluding items
noted and reconciled on the final page of this release, the
Company’s adjusted net loss was $2.3 million in the second quarter
of 2017.
The Company’s Non-GAAP financial measures exclude three
communities that are undergoing repositioning, lease-up of
higher-licensed units or significant renovation and conversion (see
“Non-GAAP Financial Measures” below).
Adjusted EBITDAR for the second quarter of 2017 was $38.3
million as compared to $39.0 million in the second quarter of
2016. The three communities undergoing repositioning,
lease-up or significant renovation and conversion, not included in
Adjusted EBITDAR, generated an additional $1.1 million of
EBITDAR.
Adjusted CFFO was $11.5 million in the second quarter of 2017,
as compared to $12.9 million in the second quarter of 2016.
The three communities undergoing repositioning, lease-up or
significant renovation and conversion, not included in Adjusted
CFFO, generated an additional $0.3 million of CFFO.
Operating Activities
Same-community results exclude the three communities previously
noted that are undergoing repositioning, lease-up or significant
renovation and conversion, and transaction and other one-time
costs.
Same-community revenue in the second quarter of 2017 increased
0.8% versus the second quarter of 2016.
Same-community operating expenses increased 3.4% from the second
quarter of the prior year, excluding conversion costs in both
periods. On the same basis, labor costs, including benefits,
increased 2.6%, food costs increased 0.2% and utilities increased
2.3%, all as compared to the second quarter of 2016. At
communities that have not converted units to higher levels of care
in the last year, labor costs increased 2.2%. The most
significant expense increase was in contract labor costs, mostly
related to additional staffing required for newly licensed memory
care and assisted living units. Contract labor is expected to
decrease in the third and fourth quarters of 2017 as permanent
staff are hired. Same-community net operating income
decreased 2.9% in the second quarter of 2017 as compared to the
second quarter of 2016.
Capital expenditures for the second quarter of 2017 were $9.2
million, representing approximately $7.7 million of investment
spending and approximately $1.5 million of recurring capital
expenditures.
Balance Sheet
The Company ended the quarter with $29.6 million of cash and
cash equivalents, including restricted cash. During the
second quarter of 2017, the Company spent $9.2 million on capital
improvements. The Company received reimbursements from one of its
REIT partners totaling $1.4 million in the second quarter for
capital improvements at certain leased communities and expects to
receive additional reimbursements as the remaining projects at
leased communities are completed.
As of June 30, 2017, the Company financed its owned communities
with mortgages totaling $964.1 million at interest rates averaging
4.6%. All of the Company’s debt is at fixed interest rates,
except for two bridge loans totaling approximately $76.6 million at
June 30, 2017, one of which matures in the third quarter of 2018
and the other in the second quarter of 2020. The earliest
maturity date for the Company’s fixed-rate debt is in
2021.
The Company’s 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 Company’s acquisition, conversion and
renovation programs.
Q2 2017 Conference Call Information
The Company will host a conference call with senior management
to discuss the Company’s second quarter 2017 financial
results. The call will be held on Tuesday, August 1, 2017, at
5:00 p.m. Eastern Time. The call-in number is 323-701-0230,
confirmation code 1577957. 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 August 1, 2017 at 8:00 p.m. Eastern Time, until
August 9, 2017 at 8:00 p.m. Eastern Time. To access the
conference call replay, call 719-457-0820, confirmation code
1577957. The conference call will also be made available for
playback via the Company’s corporate website,
www.capitalsenior.com.
Non-GAAP Financial Measures of Operating
Performance
Adjusted EBITDAR is a financial valuation measure and Adjusted
Net Income and Adjusted CFFO are financial performance measures
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 costs 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.
Adjusted EBITDAR is a valuation measure commonly used by our
management, research analysts and investors to value companies in
the senior living industry. Because Adjusted EBITDAR excludes
interest expense and rent expense, it allows our management,
research analysts and investors to compare the enterprise values of
different companies without regard to differences in capital
structures and leasing arrangements.
The Company believes that Adjusted Net Income and Adjusted CFFO
are useful as performance measures in identifying trends in
day-to-day operations because they exclude the costs associated
with acquisitions and conversions and other items that do not
ordinarily reflect the ongoing operating results of our primary
business. Adjusted Net Income and Adjusted CFFO provide
indicators to management of progress in achieving both consolidated
and individual business unit operating performance and are used by
research analysts and investors to evaluate the performance of
companies in the senior living industry.
The Company strongly urges you to review on the last page of
this release the reconciliation of net loss to Adjusted EBITDAR and
the reconciliation of net (loss) income to Adjusted Net (Loss)
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 housing 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 129 senior housing communities in
geographically concentrated regions with an aggregate capacity of
approximately 16,500 residents.
Safe Harbor
The forward-looking statements in this release are subject to
certain risks and uncertainties that could cause results to differ
materially, including, but not without limitation to, the Company’s
ability to find suitable acquisition properties at favorable terms,
financing, 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 Carey P. Hendrickson, Chief Financial Officer, at
972-770-5600 for more information.
CAPITAL SENIOR LIVING CORPORATION |
|
CONSOLIDATED BALANCE
SHEETS(unaudited, in thousands, except per share
data) |
|
|
|
|
June 30, |
December 31, |
|
2017 |
2016 |
|
|
|
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ |
16,218 |
|
$ |
34,026 |
|
Restricted cash |
|
13,367 |
|
|
13,297 |
|
Accounts receivable, net |
|
10,488 |
|
|
13,675 |
|
Federal and state income taxes receivable |
|
17 |
|
|
— |
|
Property tax and insurance deposits |
|
11,079 |
|
|
14,665 |
|
Prepaid expenses and other |
|
4,391 |
|
|
6,365 |
|
Total current assets |
|
55,560 |
|
|
82,028 |
|
Property and equipment, net |
|
1,111,903 |
|
|
1,032,430 |
|
Other
assets, net |
|
20,337 |
|
|
31,323 |
|
Total assets |
$ |
1,187,800 |
|
$ |
1,145,781 |
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
Current liabilities: |
|
|
Accounts payable |
$ |
7,995 |
|
$ |
5,051 |
|
Accrued expenses |
|
36,157 |
|
|
39,064 |
|
Current portion of notes payable, net of deferred loan costs |
|
17,371 |
|
|
17,889 |
|
Current portion of deferred income |
|
15,174 |
|
|
16,284 |
|
Current portion of capital lease and financing obligations |
|
2,885 |
|
|
1,339 |
|
Federal and state income taxes payable |
|
— |
|
|
218 |
|
Customer deposits |
|
1,480 |
|
|
1,545 |
|
Total current liabilities |
|
81,062 |
|
|
81,390 |
|
Deferred income |
|
10,975 |
|
|
12,205 |
|
Capital lease and financing obligations, net of current
portion |
|
50,734 |
|
|
37,439 |
|
Other
long-term liabilities |
|
14,727 |
|
|
15,325 |
|
Notes
payable, net of deferred loan costs and current portion |
|
939,187 |
|
|
882,504 |
|
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 – 30,347
and 30,012 in 2017 and 2016, respectively |
|
308 |
|
|
305 |
|
Additional paid-in capital |
|
175,652 |
|
|
171,599 |
|
Retained deficit |
|
(81,415 |
) |
|
(51,556 |
) |
Treasury stock, at cost – 494 shares in 2017 and 2016 |
|
(3,430 |
) |
|
(3,430 |
) |
Total shareholders' equity |
|
91,115 |
|
|
116,918 |
|
Total liabilities and shareholders' equity |
$ |
1,187,800 |
|
$ |
1,145,781 |
|
|
|
|
CAPITAL SENIOR LIVING
CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS(unaudited, in thousands,
except per share data) |
|
|
|
|
Three Months
Ended June 30, |
Six Months Ended
June 30, |
|
2017 |
2016 |
2017 |
2016 |
Revenues: |
|
|
|
|
Resident
revenue |
$ |
116,718 |
|
$ |
111,034 |
|
$ |
232,708 |
|
$ |
220,207 |
|
Expenses: |
|
|
|
|
Operating
expenses (exclusive of facility lease expense and
depreciation and amortization expense shown below) |
|
73,289 |
|
|
67,162 |
|
|
146,067 |
|
|
133,685 |
|
General
and administrative expenses |
|
6,083 |
|
|
4,972 |
|
|
12,317 |
|
|
11,220 |
|
Facility
lease expense |
|
13,968 |
|
|
15,445 |
|
|
28,555 |
|
|
30,650 |
|
Loss on
facility lease termination |
|
— |
|
|
— |
|
|
12,858 |
|
|
— |
|
Stock-based compensation expense |
|
1,941 |
|
|
2,490 |
|
|
3,871 |
|
|
5,003 |
|
Depreciation and amortization expense |
|
16,746 |
|
|
15,172 |
|
|
33,959 |
|
|
29,703 |
|
Total
expenses |
|
112,027 |
|
|
105,241 |
|
|
237,627 |
|
|
210,261 |
|
Income (Loss) from
operations |
|
4,691 |
|
|
5,793 |
|
|
(4,919 |
) |
|
9,946 |
|
Other income
(expense): |
|
|
|
|
Interest
income |
|
14 |
|
|
19 |
|
|
32 |
|
|
35 |
|
Interest
expense |
|
(12,404 |
) |
|
(10,345 |
) |
|
(24,409 |
) |
|
(20,330 |
) |
Loss on
disposition of assets, net |
|
— |
|
|
(6 |
) |
|
(125 |
) |
|
(37 |
) |
Other
income |
|
2 |
|
|
233 |
|
|
5 |
|
|
233 |
|
Loss before provision
for income taxes |
|
(7,697 |
) |
|
(4,306 |
) |
|
(29,416 |
) |
|
(10,153 |
) |
Provision for income
taxes |
|
(138 |
) |
|
(140 |
) |
|
(261 |
) |
|
(277 |
) |
Net loss |
$ |
(7,835 |
) |
$ |
(4,446 |
) |
$ |
(29,677 |
) |
$ |
(10,430 |
) |
Per share data: |
|
|
|
|
Basic net
loss per share |
$ |
(0.27 |
) |
$ |
(0.15 |
) |
$ |
(1.01 |
) |
$ |
(0.36 |
) |
Diluted
net loss per share |
$ |
(0.27 |
) |
$ |
(0.15 |
) |
$ |
(1.01 |
) |
$ |
(0.36 |
) |
Weighted average shares
outstanding — basic |
|
29,478 |
|
|
28,926 |
|
|
29,384 |
|
|
28,838 |
|
Weighted average shares
outstanding — diluted |
|
29,478 |
|
|
28,926 |
|
|
29,384 |
|
|
28,838 |
|
|
|
|
|
|
Comprehensive loss |
$ |
(7,835 |
) |
$ |
(4,446 |
) |
$ |
(29,677 |
) |
$ |
(10,430 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL SENIOR LIVING
CORPORATIONCONSOLIDATED STATEMENTS OF CASH
FLOWS(unaudited, in thousands) |
|
|
|
Six Months Ended
June 30, |
|
2017 |
2016 |
Operating
Activities |
|
|
Net loss |
$ |
(29,677 |
) |
$ |
(10,430 |
) |
Adjustments to
reconcile net loss to net cash provided by operating
activities: |
|
|
Depreciation and amortization |
|
33,959 |
|
|
29,703 |
|
Amortization of deferred financing charges |
|
800 |
|
|
567 |
|
Amortization of deferred lease costs and lease intangibles |
|
435 |
|
|
191 |
|
Amortization of lease incentives |
|
(597 |
) |
|
(375 |
) |
Deferred
income |
|
(502 |
) |
|
44 |
|
Lease
incentives |
|
3,655 |
|
|
3,890 |
|
Loss on
facility lease termination |
|
12,858 |
|
|
— |
|
Loss on
disposition of assets, net |
|
125 |
|
|
37 |
|
Provision
for bad debts |
|
975 |
|
|
809 |
|
Stock-based compensation expense |
|
3,871 |
|
|
5,003 |
|
Changes
in operating assets and liabilities: |
|
|
Accounts
receivable |
|
(3,828 |
) |
|
(5,872 |
) |
Property
tax and insurance deposits |
|
3,586 |
|
|
2,926 |
|
Prepaid
expenses and other |
|
1,974 |
|
|
(1,016 |
) |
Other
assets |
|
5,380 |
|
|
(566 |
) |
Accounts
payable |
|
2,944 |
|
|
(2,214 |
) |
Accrued
expenses |
|
(2,907 |
) |
|
(1,704 |
) |
Other
liabilities |
|
2,750 |
|
|
5,778 |
|
Federal
and state income taxes receivable/payable |
|
(235 |
) |
|
(206 |
) |
Deferred
resident revenue |
|
(517 |
) |
|
(1,136 |
) |
Customer
deposits |
|
(65 |
) |
|
(121 |
) |
Net cash provided by
operating activities |
|
34,984 |
|
|
25,308 |
|
Investing
Activities |
|
|
Capital
expenditures |
|
(21,942 |
) |
|
(29,747 |
) |
Cash paid for
acquisitions |
|
(85,000 |
) |
|
(64,750 |
) |
Proceeds from
disposition of assets |
|
13 |
|
|
— |
|
Net cash used in
investing activities |
|
(106,929 |
) |
|
(94,497 |
) |
Financing
Activities |
|
|
Proceeds from notes
payable |
|
66,584 |
|
|
69,892 |
|
Repayments of notes
payable |
|
(10,302 |
) |
|
(8,183 |
) |
Increase in restricted
cash |
|
(70 |
) |
|
(8 |
) |
Cash payments for
capital lease and financing obligations |
|
(1,161 |
) |
|
(583 |
) |
Cash proceeds from the
issuance of common stock |
|
3 |
|
|
66 |
|
Excess tax benefits on
stock options exercised |
|
— |
|
|
(27 |
) |
Purchases of treasury
stock |
|
— |
|
|
(2,496 |
) |
Deferred financing
charges paid |
|
(917 |
) |
|
(1,073 |
) |
Net cash provided by
financing activities |
|
54,137 |
|
|
57,588 |
|
Decrease in cash and
cash equivalents |
|
(17,808 |
) |
|
(11,601 |
) |
Cash and cash
equivalents at beginning of period |
|
34,026 |
|
|
56,087 |
|
Cash and cash
equivalents at end of period |
$ |
16,218 |
|
$ |
44,486 |
|
Supplemental
Disclosures |
|
|
Cash paid during the
period for: |
|
|
Interest |
$ |
23,265 |
|
$ |
19,627 |
|
Income
taxes |
$ |
529 |
|
$ |
546 |
|
|
|
|
|
|
|
|
Capital Senior
Living Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
Communities |
|
Resident Capacity |
|
Average Units |
|
|
Q2 17 |
|
Q2 16 |
|
Q2 17 |
|
Q2 16 |
|
Q2 17 |
|
Q2 16 |
Portfolio
Data |
|
|
|
|
|
|
|
|
|
|
|
|
I. Community Ownership / Management |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated communities |
|
|
|
|
|
|
|
|
|
|
|
|
Owned |
|
83 |
|
|
76 |
|
|
10,767 |
|
|
9,436 |
|
|
8,179 |
|
|
7,251 |
|
Leased |
|
46 |
|
|
50 |
|
|
5,756 |
|
|
6,333 |
|
|
4,409 |
|
|
4,918 |
|
Total |
|
129 |
|
|
126 |
|
|
16,523 |
|
|
15,769 |
|
|
12,588 |
|
|
12,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent living |
|
|
|
|
|
6,879 |
|
|
6,792 |
|
|
5,245 |
|
|
5,294 |
|
Assisted
living |
|
|
|
|
|
9,644 |
|
|
8,977 |
|
|
7,343 |
|
|
6,875 |
|
Total |
|
|
|
|
|
16,523 |
|
|
15,769 |
|
|
12,588 |
|
|
12,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
II. Percentage of Operating Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated communities |
|
|
|
|
|
|
|
|
|
|
|
|
Owned |
|
64.3 |
% |
|
60.3 |
% |
|
65.2 |
% |
|
59.8 |
% |
|
65.0 |
% |
|
59.6 |
% |
Leased |
|
35.7 |
% |
|
39.7 |
% |
|
34.8 |
% |
|
40.2 |
% |
|
35.0 |
% |
|
40.4 |
% |
Total |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent living |
|
|
|
|
|
41.6 |
% |
|
43.1 |
% |
|
41.7 |
% |
|
43.5 |
% |
Assisted
living |
|
|
|
|
|
58.4 |
% |
|
56.9 |
% |
|
58.3 |
% |
|
56.5 |
% |
Total |
|
|
|
|
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Senior Living Corporation |
|
|
|
|
|
Supplemental Information (excludes communities being
repositioned/leased up) |
|
|
|
|
|
Selected Operating Results |
|
Q2 17 |
|
Q2 16 |
|
I. Owned
communities |
|
|
|
|
|
|
|
Number of communities |
|
81 |
|
|
74 |
|
|
Resident capacity |
|
10,222 |
|
|
8,891 |
|
|
Unit capacity (1) |
|
7,775 |
|
|
6,845 |
|
|
Financial occupancy (2) |
|
88.2 |
% |
|
89.2 |
% |
|
Revenue (in millions) |
|
71.8 |
|
|
62.2 |
|
|
Operating expenses (in millions) (3) |
|
44.9 |
|
|
38.3 |
|
|
Operating margin (3) |
|
37 |
% |
|
38 |
% |
|
Average monthly rent |
|
3,489 |
|
|
3,397 |
|
|
II. Leased communities |
|
|
|
|
|
|
|
Number of communities |
|
45 |
|
|
49 |
|
|
Resident capacity |
|
5,530 |
|
|
6,107 |
|
|
Unit capacity (1) |
|
4,223 |
|
|
4,731 |
|
|
Financial occupancy (2) |
|
84.1 |
% |
|
87.3 |
% |
|
Revenue (in millions) |
|
40.1 |
|
|
44.4 |
|
|
Operating expenses (in millions) (3) |
|
23.1 |
|
|
24.5 |
|
|
Operating margin (3) |
|
42 |
% |
|
45 |
% |
|
Average monthly rent |
|
3,768 |
|
|
3,584 |
|
|
III. Consolidated communities |
|
|
|
|
|
|
|
Number of communities |
|
126 |
|
|
123 |
|
|
Resident capacity |
|
15,752 |
|
|
14,998 |
|
|
Unit capacity (1) |
|
11,998 |
|
|
11,576 |
|
|
Financial occupancy (2) |
|
86.8 |
% |
|
88.4 |
% |
|
Revenue (in millions) |
|
112.0 |
|
|
106.6 |
|
|
Operating expenses (in millions) (3) |
|
68.0 |
|
|
62.9 |
|
|
Operating margin (3) |
|
39 |
% |
|
41 |
% |
|
Average monthly rent |
|
3,584 |
|
|
3,473 |
|
|
IV. Communities under management |
|
|
|
|
|
|
|
Number of communities |
|
126 |
|
|
123 |
|
|
Resident capacity |
|
15,752 |
|
|
14,998 |
|
|
Unit capacity (1) |
|
11,998 |
|
|
11,576 |
|
|
Financial occupancy (2) |
|
86.8 |
% |
|
88.4 |
% |
|
Revenue (in millions) |
|
112.0 |
|
|
106.6 |
|
|
Operating expenses (in millions) (3) |
|
68.0 |
|
|
62.9 |
|
|
Operating margin (3) |
|
39 |
% |
|
41 |
% |
|
Average monthly rent |
|
3,584 |
|
|
3,473 |
|
|
V. Same communities under management |
|
|
|
|
|
|
|
Number of communities |
|
122 |
|
|
122 |
|
|
Resident capacity |
|
15,132 |
|
|
14,934 |
|
|
Unit capacity (1) |
|
11,547 |
|
|
11,527 |
|
|
Financial occupancy (2) |
|
86.8 |
% |
|
88.4 |
% |
|
Revenue (in millions) |
|
107.1 |
|
|
106.3 |
|
|
Operating expenses (in millions) (3) |
|
64.6 |
|
|
62.5 |
|
|
Operating margin (3) |
|
40 |
% |
|
41 |
% |
|
Average monthly rent |
|
3,563 |
|
|
3,475 |
|
|
VI. General and Administrative expenses as a percent of
Total Revenues under Management |
|
|
|
|
|
|
|
Second quarter (4) |
|
4.8 |
% |
|
4.1 |
% |
|
Year to date (4) |
|
4.8 |
% |
|
4.5 |
% |
|
VII. Consolidated Mortgage Debt Information (in
thousands, except interest rates) |
|
|
|
|
|
|
|
(excludes insurance premium and auto
financing) |
|
|
|
|
|
|
|
Total fixed rate mortgage debt |
|
887,477 |
|
|
822,615 |
|
|
Total variable rate mortgage debt |
|
76,624 |
|
|
11,800 |
|
|
Weighted average interest rate |
|
4.6 |
% |
|
4.6 |
% |
|
(1) Due to conversion and refurbishment projects currently in
progress at certain communities, unit capacity is lower in Q2 17
than Q2 16 for samecommunities under management, which affects all
groupings of communities. |
(2) Financial occupancy represents actual days occupied
divided by total number of available days during the month of the
quarter. |
(3) Excludes management fees, provision for bad debts and
transaction and conversion costs. |
(4) Excludes transaction and conversion costs.
|
|
CAPITAL SENIOR LIVING
CORPORATION |
NON-GAAP RECONCILIATIONS |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Adjusted
EBITDAR |
|
|
|
|
|
|
|
Net
loss |
$ |
(7,835 |
) |
|
$ |
(4,446 |
) |
|
$ |
(29,677 |
) |
|
$ |
(10,430 |
) |
Depreciation and amortization expense |
|
16,746 |
|
|
|
15,172 |
|
|
|
33,959 |
|
|
|
29,703 |
|
Stock-based compensation expense |
|
1,941 |
|
|
|
2,490 |
|
|
|
3,871 |
|
|
|
5,003 |
|
Facility
lease expense |
|
13,968 |
|
|
|
15,445 |
|
|
|
28,555 |
|
|
|
30,650 |
|
Loss on
facility lease termination |
|
- |
|
|
|
- |
|
|
|
12,858 |
|
|
|
- |
|
Provision
for bad debts |
|
532 |
|
|
|
322 |
|
|
|
975 |
|
|
|
809 |
|
Interest
income |
|
(14 |
) |
|
|
(19 |
) |
|
|
(32 |
) |
|
|
(35 |
) |
Interest
expense |
|
12,404 |
|
|
|
10,345 |
|
|
|
24,409 |
|
|
|
20,330 |
|
Loss
(Gain) on disposition of assets, net |
|
- |
|
|
|
6 |
|
|
|
125 |
|
|
|
37 |
|
Other
income |
|
(2 |
) |
|
|
(233 |
) |
|
|
(5 |
) |
|
|
(233 |
) |
Provision
for income taxes |
|
138 |
|
|
|
140 |
|
|
|
261 |
|
|
|
277 |
|
Casualty
losses |
|
712 |
|
|
|
170 |
|
|
|
1,023 |
|
|
|
435 |
|
Transaction and conversion costs |
|
838 |
|
|
|
416 |
|
|
|
1,552 |
|
|
|
1,400 |
|
Communities excluded due to repositioning/lease-up |
|
(1,112 |
) |
|
|
(831 |
) |
|
|
(1,813 |
) |
|
|
(1,655 |
) |
Adjusted
EBITDAR |
$ |
38,316 |
|
|
$ |
38,977 |
|
|
$ |
76,061 |
|
|
$ |
76,291 |
|
|
|
|
|
|
|
|
|
Adjusted
Revenues |
|
|
|
|
|
|
|
Total
revenues |
$ |
116,718 |
|
|
$ |
111,034 |
|
|
$ |
232,708 |
|
|
$ |
220,207 |
|
Communities excluded due to repositioning/lease-up |
|
(4,700 |
) |
|
|
(4,350 |
) |
|
|
(9,341 |
) |
|
|
(8,799 |
) |
Adjusted
revenues |
$ |
112,018 |
|
|
$ |
106,684 |
|
|
$ |
223,367 |
|
|
$ |
211,408 |
|
|
|
|
|
|
|
|
|
Adjusted net loss and Adjusted net loss per
share |
|
|
|
|
|
|
Net
loss |
$ |
(7,835 |
) |
|
$ |
(4,446 |
) |
|
$ |
(29,677 |
) |
|
$ |
(10,430 |
) |
Casualty
losses |
|
712 |
|
|
|
170 |
|
|
|
1,023 |
|
|
|
435 |
|
Transaction and conversion costs |
|
933 |
|
|
|
184 |
|
|
|
2,036 |
|
|
|
1,168 |
|
Resident
lease amortization |
|
2,085 |
|
|
|
3,500 |
|
|
|
5,323 |
|
|
|
7,009 |
|
Loss on
facility lease termination |
|
- |
|
|
|
- |
|
|
|
12,859 |
|
|
|
- |
|
Loss
(Gain) on disposition of assets |
|
- |
|
|
|
6 |
|
|
|
125 |
|
|
|
37 |
|
Tax
impact of Non-GAAP adjustments (37%) |
|
(1,380 |
) |
|
|
(1,428 |
) |
|
|
(7,905 |
) |
|
|
(3,200 |
) |
Deferred
tax asset valuation allowance |
|
2,768 |
|
|
|
1,532 |
|
|
|
10,933 |
|
|
|
3,423 |
|
Communities excluded due to repositioning/lease-up |
|
453 |
|
|
|
369 |
|
|
|
1,038 |
|
|
|
659 |
|
Adjusted
net loss |
$ |
(2,264 |
) |
|
$ |
(113 |
) |
|
$ |
(4,245 |
) |
|
$ |
(899 |
) |
|
|
|
|
|
|
|
|
Diluted
shares outstanding |
|
29,478 |
|
|
|
28,926 |
|
|
|
29,384 |
|
|
|
28,838 |
|
|
|
|
|
|
|
|
|
Adjusted
net loss per share |
$ |
(0.08 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
Adjusted
CFFO |
|
|
|
|
|
|
|
Net
loss |
$ |
(7,835 |
) |
|
$ |
(4,446 |
) |
|
$ |
(29,677 |
) |
|
$ |
(10,430 |
) |
Non-cash
charges, net |
|
20,535 |
|
|
|
21,304 |
|
|
|
55,579 |
|
|
|
39,869 |
|
Lease
incentives |
|
(1,397 |
) |
|
|
(3,022 |
) |
|
|
(3,655 |
) |
|
|
(3,890 |
) |
Recurring
capital expenditures |
|
(1,186 |
) |
|
|
(1,155 |
) |
|
|
(2,373 |
) |
|
|
(2,295 |
) |
Casualty
losses |
|
712 |
|
|
|
170 |
|
|
|
1,023 |
|
|
|
435 |
|
Transaction and conversion costs |
|
933 |
|
|
|
184 |
|
|
|
1,812 |
|
|
|
1,168 |
|
Tax
impact of Spring Meadows Transaction |
|
- |
|
|
|
(106 |
) |
|
|
- |
|
|
|
(212 |
) |
Communities excluded due to repositioning/lease-up |
|
(311 |
) |
|
|
(49 |
) |
|
|
(233 |
) |
|
|
(91 |
) |
Adjusted
CFFO |
$ |
11,451 |
|
|
$ |
12,880 |
|
|
$ |
22,476 |
|
|
$ |
24,554 |
|
|
|
|
|
|
|
|
|
PRESS CONTACT: Carey Hendrickson, Chief Financial Officer Phone: 1-972-770-5600
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