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 first
quarter 2018.
“Focused execution on our key initiatives resulted in
year-over-year growth in same-community revenue and net operating
income in the first quarter,” said Lawrence A. Cohen, Chief
Executive Officer of the Company. “Despite the effect of
seasonal attrition on occupancy, which was in line with our
projections, we stayed focused on our residents, maintained a
disciplined approach to our cost structure and delivered solid
financial results. By building on our 2017 cost control
initiatives with further improvements in the first quarter, we had
lower than anticipated expenses and our CFFO exceeded our internal
projections. We are pleased to reaffirm our full year
guidance for 2018.”
Mr. Cohen continued, “We are executing our comprehensive
strategy to deliver higher revenues, enhance cash flow and maximize
the value of our owned real estate. With a disciplined focus
on our growth strategy and driving operational improvements, we are
well positioned to capitalize on our competitive advantages as a
leading pure-play private-pay senior housing owner/operator and
enhance shareholder value.”
Operating and Financial Summary (all amounts in
this operating and financial summary exclude two communities that
are undergoing 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 first quarter of 2018, including all
communities, was $114.6 million, a $1.3 million, or 1.2%, decrease
from the first quarter of 2017. The first quarter of 2018
includes no revenue from the Company’s two communities impacted by
Hurricane Harvey in late August 2017. Revenue for these two
communities was $2.4 million in the first quarter of 2017. --
Revenue for consolidated and same communities, which exclude two
communities undergoing lease-up or significant renovation and
conversion and the Company’s two communities impacted by Hurricane
Harvey, was $113.3 million in the first quarter of 2018, an
increase of 1.0% as compared to the first quarter of 2017. --
Occupancy for consolidated and same communities was 86.1% in the
first quarter of 2018, a decrease of 100 basis points from the
fourth quarter of 2017 and a decrease of 130 basis points from the
first quarter of 2017.-- Average monthly rent for consolidated and
same communities was $3,592, an increase of $60 per occupied unit,
or 1.7%, as compared to the first quarter of 2017.
- Income from operations, including all communities, was $5.4
million in the first quarter of 2018 compared to a loss of $9.6
million in the first quarter of 2017, which included a non-cash
lease termination charge of $12.9 million associated with the
Company’s purchase in January 2017 of four communities it
previously leased.
- The Company’s Net Loss for the first quarter of 2018, including
all communities, was $7.2 million. -- Excluding items
noted and reconciled on the final page of this release, the
Company’s adjusted net loss was $4.7 million in the first quarter
of 2018.-- Adjusted EBITDAR was $37.9 million in the first quarter
of 2018 compared to $37.7 million in the first quarter of 2017.
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. -- Adjusted Cash From Facility Operations
(“CFFO”) was $10.4 million in the first quarter of 2018 compared to
$11.0 million in the first quarter of 2017.
Financial Results - First Quarter
For the first quarter of 2018, the Company reported revenue of
$114.6 million, compared to revenue of $116.0 million in the first
quarter of 2017. Revenue for consolidated communities
excluding the two communities undergoing significant renovation and
conversion, and the two Houston communities impacted by Hurricane
Harvey, increased 1.0% in the first quarter of 2018 as compared to
the first quarter of 2017.
Operating expenses for the first quarter of 2018 were $71.7
million, a decrease of $1.1 million from the first quarter of 2017.
Operating expenses include a $1.6 million business
interruption insurance credit related to the Company’s two Houston
communities impacted by Hurricane Harvey to offset the lost
revenues and continuing expenses, and to restore the communities’
net income for the first quarter of 2018 based on an approximate
average of the communities’ net income in the seven months of 2017
prior to the hurricane.
General and administrative expenses for the first quarter of
2018 were $6.0 million. This compares to general and
administrative expenses of $6.2 million in the first quarter of
2017. Excluding transaction and conversion costs in both
periods, general and administrative expenses decreased $0.3 million
in the first quarter of 2018 as compared to the first quarter of
2017. As a percentage of revenues under management, general
and administrative expenses, excluding transaction and conversion
costs, were 5.1% in the first quarter of 2018 compared to 4.9% in
the first quarter of 2017.
Income from operations for the first quarter of 2018 was $5.4
million. The Company recorded a net loss on a GAAP basis of
$7.2 million in the first quarter of 2018. Excluding items
noted and reconciled on the final page of this release, the
Company’s adjusted net loss was $4.7 million in the first quarter
of 2018.
The Company’s Non-GAAP financial measures exclude two
communities that are undergoing significant renovation and
conversion (see “Non-GAAP Financial Measures” below), including a
community in Indiana that recently completed a significant
renovation and conversion and is now in lease-up that was excluded
beginning in the first quarter of 2018. Three communities that were
previously excluded from the Company’s Non-GAAP financial measures
were added back to such measures beginning in the first quarter of
2018.
Adjusted EBITDAR for the first quarter of 2018 was $37.9 million
as compared to $37.7 million in the first quarter of 2017.
Adjusted CFFO was $10.4 million in the first quarter of 2018, as
compared to $11.0 million in the first quarter of 2017.
Operating Activities
Same-community results exclude two communities previously noted
that are undergoing lease-up or significant renovation and
conversion, and the two Houston communities impacted by Hurricane
Harvey. Same-community results also exclude certain conversion
costs.
Same-community revenue in the first quarter of 2018 increased
1.0% versus the first quarter of 2017.
Same-community operating expenses increased 1.0% from the first
quarter of the prior year, excluding conversion costs in both
periods. On the same basis, labor costs, including benefits,
increased 1.3% and utilities increased 8.3%, while food costs
decreased 4.4%, all as compared to the first quarter of 2017.
At communities that have not converted units to higher levels of
care, labor costs increased 0.5% compared to the first quarter of
2017. Same-community net operating income increased 0.9% in
the first quarter of 2018 as compared to the first quarter of
2017.
Capital expenditures for the first quarter of 2018 were $5.6
million, representing approximately $4.2 million of investment
spending and approximately $1.2 million of recurring capital
expenditures.
Balance Sheet
The Company ended the quarter with $23.3 million of cash and
cash equivalents, including restricted cash. As of March 31,
2018, the Company financed its owned communities with mortgages
totaling $958.8 million at interest rates averaging 4.7%. All
of the Company’s debt is at fixed interest rates, except for two
bridge loans totaling approximately $76.4 million at March 31,
2018, one of which matures in the second quarter of 2019 and the
other in the first 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.
Q1 2018 Conference Call Information
The Company will host a conference call with senior management
to discuss the Company’s first quarter 2018 financial
results. The call will be held on Tuesday, May 1, 2018, at
5:00 p.m. Eastern Time. The call-in number is 323-701-0225,
confirmation code 2087338. A link to a simultaneous webcast
of the teleconference will be available at www.capitalsenior.com
through Windows Media Player or RealPlayer.
For the convenience of the Company’s shareholders and the
public, the conference call will be recorded and available for
replay starting May 1, 2018 at 8:00 p.m. Eastern Time, until May 9,
2018 at 8:00 p.m. Eastern Time. To access the conference call
replay, call 719-457-0820, confirmation code 2087338. 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/(Loss) 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/(Loss) 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/(Loss) 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
Income/(Loss) 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
memory 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) |
|
|
|
|
March 31,2018 |
|
|
December 31,2017 |
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
9,938 |
|
|
$ |
17,646 |
|
Restricted cash |
|
13,387 |
|
|
|
13,378 |
|
Accounts
receivable, net |
|
13,594 |
|
|
|
12,307 |
|
Property
tax and insurance deposits |
|
9,361 |
|
|
|
14,386 |
|
Prepaid
expenses and other |
|
6,124 |
|
|
|
6,332 |
|
Total
current assets |
|
52,404 |
|
|
|
64,049 |
|
Property
and equipment, net |
|
1,090,067 |
|
|
|
1,099,786 |
|
Other
assets, net |
|
18,079 |
|
|
|
18,836 |
|
Total
assets |
$ |
1,160,550 |
|
|
$ |
1,182,671 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts
payable |
$ |
3,544 |
|
|
$ |
7,801 |
|
Accrued
expenses |
|
34,046 |
|
|
|
40,751 |
|
Current
portion of notes payable, net of deferred loan costs |
|
18,525 |
|
|
|
19,728 |
|
Current
portion of deferred income |
|
14,237 |
|
|
|
13,840 |
|
Current
portion of capital lease and financing obligations |
|
2,876 |
|
|
|
3,106 |
|
Federal
and state income taxes payable |
|
573 |
|
|
|
383 |
|
Customer
deposits |
|
1,332 |
|
|
|
1,394 |
|
Total
current liabilities |
|
75,133 |
|
|
|
87,003 |
|
Deferred income |
|
9,563 |
|
|
|
10,033 |
|
Capital lease and
financing obligations, net of current portion |
|
48,272 |
|
|
|
48,805 |
|
Deferred taxes |
|
1,941 |
|
|
|
1,941 |
|
Other long-term
liabilities |
|
16,343 |
|
|
|
16,250 |
|
Notes payable, net of
deferred loan costs and current portion |
|
934,072 |
|
|
|
938,206 |
|
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 outstandingshares – 31,133
and 30,505 in 2018 and 2017, respectively |
|
316 |
|
|
|
310 |
|
Additional paid-in capital |
|
181,402 |
|
|
|
179,459 |
|
Retained
deficit |
|
(103,062 |
) |
|
|
(95,906 |
) |
Treasury
stock, at cost – 494 shares in 2018 and 2017 |
|
(3,430 |
) |
|
|
(3,430 |
) |
Total
shareholders’ equity |
|
75,226 |
|
|
|
80,433 |
|
Total
liabilities and shareholders’ equity |
$ |
1,160,550 |
|
|
$ |
1,182,671 |
|
|
|
CAPITAL SENIOR LIVING CORPORATION |
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS |
|
(unaudited, in thousands, except per share
data) |
|
|
|
|
Three Months EndedMarch
31, |
|
|
2018 |
|
|
2017 |
|
Revenues: |
|
|
|
|
|
|
|
Resident
revenue |
$ |
114,643 |
|
|
$ |
115,990 |
|
Expenses: |
|
|
|
|
|
|
|
Operating
expenses (exclusive of facility lease expense and depreciation and
amortization expense shown below) |
|
71,700 |
|
|
|
72,778 |
|
General
and administrative expenses |
|
6,022 |
|
|
|
6,234 |
|
Facility
lease expense |
|
14,214 |
|
|
|
14,587 |
|
Loss on
facility lease termination |
|
— |
|
|
|
12,858 |
|
Stock-based compensation expense |
|
1,949 |
|
|
|
1,930 |
|
Depreciation and amortization expense |
|
15,372 |
|
|
|
17,213 |
|
Total
expenses |
|
109,257 |
|
|
|
125,600 |
|
Income (Loss) from
operations |
|
5,386 |
|
|
|
(9,610 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
Interest
income |
|
37 |
|
|
|
18 |
|
Interest
expense |
|
(12,451 |
) |
|
|
(12,005 |
) |
Gain
(Loss) on disposition of assets, net |
|
3 |
|
|
|
(125 |
) |
Other
income |
|
1 |
|
|
|
3 |
|
Loss before provision
for income taxes |
|
(7,024 |
) |
|
|
(21,719 |
) |
Provision for income
taxes |
|
(132 |
) |
|
|
(123 |
) |
Net loss |
$ |
(7,156 |
) |
|
$ |
(21,842 |
) |
Per share data: |
|
|
|
|
|
|
|
Basic net
loss per share |
$ |
(0.24 |
) |
|
$ |
(0.75 |
) |
Diluted
net loss per share |
$ |
(0.24 |
) |
|
$ |
(0.75 |
) |
Weighted average shares
outstanding — basic |
|
29,627 |
|
|
|
29,288 |
|
Weighted average shares
outstanding — diluted |
|
29,627 |
|
|
|
29,288 |
|
Comprehensive loss |
$ |
(7,156 |
) |
|
$ |
(21,842 |
) |
|
|
CAPITAL SENIOR LIVING CORPORATION |
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(unaudited, in thousands) |
|
|
|
|
Three Months EndedMarch
31, |
|
|
2018 |
|
|
2017 |
|
Operating
Activities |
|
|
|
|
|
|
|
Net loss |
$ |
(7,156 |
) |
|
$ |
(21,842 |
) |
Adjustments to
reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
15,372 |
|
|
|
17,213 |
|
Amortization of deferred financing charges |
|
428 |
|
|
|
388 |
|
Amortization of deferred lease costs and lease intangibles |
|
212 |
|
|
|
223 |
|
Amortization of lease incentives |
|
(433 |
) |
|
|
(295 |
) |
Deferred
income |
|
(61 |
) |
|
|
(99 |
) |
Lease
incentives |
|
— |
|
|
|
2,258 |
|
Loss on
facility lease termination |
|
— |
|
|
|
12,858 |
|
(Gain)
Loss on disposition of assets, net |
|
(3 |
) |
|
|
125 |
|
Provision
for bad debts |
|
459 |
|
|
|
443 |
|
Stock-based compensation expense |
|
1,949 |
|
|
|
1,930 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts
receivable |
|
(1,746 |
) |
|
|
(799 |
) |
Property
tax and insurance deposits |
|
5,025 |
|
|
|
4,425 |
|
Prepaid
expenses and other |
|
208 |
|
|
|
1,097 |
|
Other
assets |
|
508 |
|
|
|
4,730 |
|
Accounts
payable |
|
(4,257 |
) |
|
|
2,114 |
|
Accrued
expenses |
|
(6,705 |
) |
|
|
(7,829 |
) |
Other
liabilities |
|
526 |
|
|
|
1,446 |
|
Federal
and state income taxes receivable/payable |
|
190 |
|
|
|
142 |
|
Deferred
resident revenue |
|
(12 |
) |
|
|
(357 |
) |
Customer
deposits |
|
(62 |
) |
|
|
(38 |
) |
Net cash provided by
operating activities |
|
4,442 |
|
|
|
18,133 |
|
Investing
Activities |
|
|
|
|
|
|
|
Capital
expenditures |
|
(5,616 |
) |
|
|
(12,713 |
) |
Cash paid for
acquisitions |
|
— |
|
|
|
(85,000 |
) |
Proceeds from
disposition of assets |
|
3 |
|
|
|
12 |
|
Net cash used in
investing activities |
|
(5,613 |
) |
|
|
(97,701 |
) |
Financing
Activities |
|
|
|
|
|
|
|
Proceeds from notes
payable |
|
— |
|
|
|
65,000 |
|
Repayments of notes
payable |
|
(5,723 |
) |
|
|
(5,286 |
) |
Cash payments for
capital lease and financing obligations |
|
(763 |
) |
|
|
(667 |
) |
Deferred financing
charges paid |
|
(42 |
) |
|
|
(889 |
) |
Net cash (used in)
provided by financing activities |
|
(6,528 |
) |
|
|
58,158 |
|
Decrease in cash and
cash equivalents |
|
(7,699 |
) |
|
|
(21,410 |
) |
Cash and cash
equivalents and restricted cash at beginning of period |
|
31,024 |
|
|
|
47,323 |
|
Cash and cash
equivalents and restricted cash at end of period |
$ |
23,325 |
|
|
$ |
25,913 |
|
Supplemental
Disclosures |
|
|
|
|
|
|
|
Cash paid during the
period for: |
|
|
|
|
|
|
|
Interest |
$ |
11,897 |
|
|
$ |
11,056 |
|
Income
taxes |
$ |
15 |
|
|
$ |
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Senior Living Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
|
|
|
Communities |
|
Resident Capacity |
|
Average Units |
|
|
|
|
|
Q1 18 |
|
Q1 17 |
|
Q1 18 |
|
Q1 17 |
|
Q1 18 |
|
Q1 17 |
Portfolio Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
I.
Community Ownership / Management |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated communities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned |
|
83 |
|
|
83 |
|
|
10,767 |
|
|
10,767 |
|
|
7,978 |
|
|
7,990 |
|
|
|
|
Leased |
|
46 |
|
|
46 |
|
|
5,756 |
|
|
5,756 |
|
|
4,414 |
|
|
4,556 |
|
|
|
|
Total |
|
129 |
|
|
129 |
|
|
16,523 |
|
|
16,523 |
|
|
12,392 |
|
|
12,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent
living |
|
|
|
|
|
6,879 |
|
|
6,879 |
|
|
4,911 |
|
|
5,285 |
|
|
|
Assisted
living |
|
|
|
|
|
9,644 |
|
|
9,644 |
|
|
7,481 |
|
|
7,261 |
|
|
|
|
Total |
|
|
|
|
|
16,523 |
|
|
16,523 |
|
|
12,392 |
|
|
12,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
II.
Percentage of Operating Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated communities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned |
|
64.3 |
% |
|
64.3 |
% |
|
65.2 |
% |
|
65.2 |
% |
|
64.4 |
% |
|
63.7 |
% |
|
|
|
Leased |
|
35.7 |
% |
|
35.7 |
% |
|
34.8 |
% |
|
34.8 |
% |
|
35.6 |
% |
|
36.3 |
% |
|
|
|
Total |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent
living |
|
|
|
|
|
41.6 |
% |
|
41.6 |
% |
|
39.6 |
% |
|
42.1 |
% |
|
|
Assisted
living |
|
|
|
|
|
58.4 |
% |
|
58.4 |
% |
|
60.4 |
% |
|
57.9 |
% |
|
|
|
Total |
|
|
|
|
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
Capital Senior Living Corporation |
Supplemental Information (excludes two communities being
repositioned/leased up and two communities impacted by Hurricane
Harvey) |
Selected Operating Results |
|
|
Q1 18 |
|
Q1 17 |
|
I.
Owned communities |
|
|
|
|
|
Number of
communities |
79 |
|
|
79 |
|
|
|
Resident capacity |
10,248 |
|
|
10,248 |
|
|
|
Unit capacity (1) |
7,791 |
|
|
7,596 |
|
|
|
Financial occupancy
(2) |
87.6 |
% |
|
88.2 |
% |
|
|
Revenue (in
millions) |
71.7 |
|
|
68.9 |
|
|
|
Operating expenses (in
millions) (3) |
46.0 |
|
|
44.5 |
|
|
|
Operating margin
(3) |
36 |
% |
|
35 |
% |
|
|
Average monthly
rent |
3,501 |
|
|
3,430 |
|
|
II.
Leased communities |
|
|
|
|
|
Number of
communities |
46 |
|
|
46 |
|
|
|
Resident capacity |
5,756 |
|
|
5,756 |
|
|
|
Unit capacity (1) |
4,414 |
|
|
4,520 |
|
|
|
Financial occupancy
(2) |
83.5 |
% |
|
86.0 |
% |
|
|
Revenue (in
millions) |
41.6 |
|
|
43.3 |
|
|
|
Operating expenses (in
millions) (3) |
24.3 |
|
|
25.1 |
|
|
|
Operating margin
(3) |
42 |
% |
|
42 |
% |
|
|
Average monthly
rent |
3,760 |
|
|
3,708 |
|
|
III. Consolidated and Same communities (4) |
|
|
|
|
|
Number of
communities |
125 |
|
|
125 |
|
|
|
Resident capacity |
16,004 |
|
|
16,004 |
|
|
|
Unit capacity |
12,204 |
|
|
12,116 |
|
|
|
Financial occupancy
(2) |
86.1 |
% |
|
87.4 |
% |
|
|
Revenue (in
millions) |
113.3 |
|
|
112.2 |
|
|
|
Operating expenses (in
millions) (3) |
70.3 |
|
|
69.6 |
|
|
|
Operating margin
(3) |
38 |
% |
|
38 |
% |
|
|
Average monthly
rent |
3,592 |
|
|
3,532 |
|
|
IV.
General and Administrative expenses as a percent of Total Revenues
under Management |
|
|
|
|
|
First quarter (5) |
5.1 |
% |
|
4.9 |
% |
|
V.
Consolidated Mortgage Debt Information (in thousands, except
interest rates) |
|
|
|
|
|
|
(excludes insurance premium
financing) |
|
|
|
|
|
|
Total fixed rate
mortgage debt |
882,317 |
|
|
891,405 |
|
|
|
Total variable rate
mortgage debt |
76,442 |
|
|
76,682 |
|
|
|
Weighted average
interest rate |
4.74 |
% |
|
4.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Due to
conversion and refurbishment projects completed at certain
communities, unit capacity is higher in Q1 18 than Q1 17 for same
communities 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) |
|
Since the
Company has not completed any new acquisitions of communities,
other than the four communities which were acquired during the
first quarter of fiscal 2017 that were previously leased and
already included in the Company’s consolidated operating results,
consolidated and same communities are equivalent for the comparable
periods and no longer require separate reporting by the
Company. |
|
(5) |
|
Excludes
transaction and conversion costs. |
|
CAPITAL SENIOR LIVING CORPORATION |
NON-GAAP RECONCILIATIONS |
(In thousands, except per share
data) |
|
|
|
|
|
|
|
Three Months Ended March
31, |
|
|
|
2018 |
|
|
|
2017 |
|
Adjusted EBITDAR |
|
|
|
|
Net loss |
$ |
(7,156 |
) |
|
$ |
(21,842 |
) |
|
Depreciation and
amortization expense |
|
15,372 |
|
|
|
17,213 |
|
|
Stock-based
compensation expense |
|
1,949 |
|
|
|
1,930 |
|
|
Facility lease
expense |
|
14,214 |
|
|
|
14,587 |
|
|
Loss on facility lease
termination |
|
- |
|
|
|
12,858 |
|
|
Provision for bad
debts |
|
459 |
|
|
|
443 |
|
|
Interest income |
|
(37 |
) |
|
|
(18 |
) |
|
Interest expense |
|
12,451 |
|
|
|
12,005 |
|
|
Loss (Gain) on
disposition of assets, net |
|
(3 |
) |
|
|
125 |
|
|
Other income |
|
(1 |
) |
|
|
(3 |
) |
|
Provision for income
taxes |
|
132 |
|
|
|
123 |
|
|
Casualty losses |
|
214 |
|
|
|
312 |
|
|
Transaction and
conversion costs |
|
249 |
|
|
|
715 |
|
|
Communities excluded
due to repositioning/lease-up |
|
62 |
|
|
|
(701 |
) |
|
Adjusted EBITDAR |
$ |
37,905 |
|
|
$ |
37,747 |
|
|
|
|
|
|
Adjusted Revenues |
|
|
|
|
Total revenues |
$ |
114,643 |
|
|
$ |
115,990 |
|
|
Communities excluded
due to repositioning/lease-up |
|
(1,354 |
) |
|
|
(4,641 |
) |
|
Adjusted revenues |
$ |
113,289 |
|
|
$ |
111,349 |
|
|
|
|
|
|
Adjusted net loss and Adjusted net loss per
share |
|
|
|
|
Net loss |
$ |
(7,156 |
) |
|
$ |
(21,842 |
) |
|
Casualty losses |
|
214 |
|
|
|
312 |
|
|
Transaction and
conversion costs |
|
262 |
|
|
|
1,104 |
|
|
Resident lease
amortization |
|
- |
|
|
|
3,238 |
|
|
Loss on facility lease
termination |
|
- |
|
|
|
12,858 |
|
|
Loss (Gain) on
disposition of assets |
|
(3 |
) |
|
|
125 |
|
|
Tax impact of Non-GAAP
adjustments (25% in 2018 and 37% in 2017) |
|
(118 |
) |
|
|
(6,526 |
) |
|
Deferred tax asset
valuation allowance |
|
1,409 |
|
|
|
8,166 |
|
|
Communities excluded
due to repositioning/lease-up |
|
672 |
|
|
|
585 |
|
|
Adjusted net loss |
$ |
(4,720 |
) |
|
$ |
(1,980 |
) |
|
|
|
|
|
|
Diluted shares
outstanding |
|
29,627 |
|
|
|
29,288 |
|
|
|
|
|
|
|
Adjusted net loss per
share |
$ |
(0.16 |
) |
|
$ |
(0.07 |
) |
|
|
|
|
|
Adjusted CFFO |
|
|
|
|
Net loss |
$ |
(7,156 |
) |
|
$ |
(21,842 |
) |
|
Non-cash charges,
net |
|
17,923 |
|
|
|
35,044 |
|
|
Lease incentives |
|
- |
|
|
|
(2,258 |
) |
|
Recurring capital
expenditures |
|
(1,186 |
) |
|
|
(1,186 |
) |
|
Casualty losses |
|
214 |
|
|
|
312 |
|
|
Transaction and
conversion costs |
|
262 |
|
|
|
879 |
|
|
Communities excluded
due to repositioning/lease-up |
|
389 |
|
|
|
79 |
|
|
Adjusted CFFO |
$ |
10,446 |
|
|
$ |
11,028 |
|
|
|
|
|
|
|
|
|
|
PRESS CONTACT: Carey Hendrickson, Chief
Financial Officer Phone: 1-972-770-5600
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