CSU Capital Senior Living Corp

Capital Senior Living Corporation (the “Company”) (NYSE:CSU), one of the country’s largest operators of senior living communities, today announced operating results for the fourth quarter and full year 2011. Company highlights for the fourth quarter and full year include:

Fourth Quarter Highlights

• Adjusted Cash From Facility Operations (“CFFO”) was $8.4 million, or $0.31 per share in the fourth quarter of 2011, an increase of 50.3%, or $0.10 per share from the fourth quarter of 2010. Adjusted CFFO would have been $6.6 million, or $0.24 per share in the fourth quarter of 2011 without tax savings resulting from bonus depreciation described below.
• Adjusted EBITDAR increased 21.6% to $25.4 million in the fourth quarter of 2011, an increase of $4.5 million from the fourth quarter of 2010. EBITDAR margin improved to 35.7% from 34.9% in the fourth quarter of the prior year.
• Revenue increased 18.8% to $71.2 million in the fourth quarter of 2011, an increase of $11.2 million from the fourth quarter of 2010.
• Average monthly rent increased 5.5% to $2,908 per occupied unit in the fourth quarter of 2011, an increase of $152 per occupied unit from the fourth quarter of 2010.

• Consolidated average occupancy was 85.6% in the fourth quarter of 2011, a 50 basis point increase from the fourth quarter of 2010 with approximately 1,200 additional consolidated units in the current period. Sequentially, consolidated average occupancy was up 90 basis points from the third quarter of 2011.

• The Company completed the acquisition of three senior living communities for a combined purchase price of $30 million.
• Subsequent to the end of the fourth quarter, the Company completed the acquisition of an additional senior living community for a purchase price of approximately $7 million.

Full Year Highlights

• Adjusted CFFO was $25.1 million, or $0.93 per share in 2011, an increase of 46.5% or $0.29 per share from 2010. Adjusted CFFO would have been $23.3 million, or $0.86 per share in 2011 without tax savings resulting from bonus depreciation described below.

• Adjusted EBITDAR increased 34.6% to $92.3 million in 2011, an increase of $23.7 million from 2010. EBITDAR margin improved to 35.0% from 32.4% in the prior year.

• Revenue increased 24.3% to $263.5 million in 2011, an increase of $51.6 million from 2010.

• Sold partnership interests in the four Spring Meadows communities to Health Care REIT (“HCN”) in a $141.0 million transaction, resulting in sales proceeds, including incentive distributions, of approximately $17.0 million and incremental annual CFFO of approximately $0.03 per share from leasing the communities from HCN upon closing the sale.
• Completed the purchase of seven high quality senior living communities for a combined purchase price of $83.4 million. These seven communities are expected to generate incremental annual CFFO of approximately $0.13 per share.

“We are very pleased to report continued occupancy growth and strong results from the implementation of our strategic plan that is focused on operations, marketing and accretive growth to enhance shareholder value,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “Successful execution of this plan yielded strong results for 2011. Year-over-year revenue increased 24% while EBITDAR grew nearly 35%. Average monthly rents ended the year 5.5% higher than the year before and EBITDAR margin improved 2.6 percentage points to 35% for 2011. CFFO in the fourth quarter of 2011 of $0.31 per share was 50% higher than the fourth quarter of 2010. We differentiate Capital Senior Living as the value leader in providing quality seniors housing and care at reasonable prices. We are well positioned, as a substantially all private-pay business in an industry that benefits from need-driven demand and limited new supply. These fundamentals are further enhanced by our robust acquisition program that increases our ownership of high-quality senior living communities in geographically concentrated regions, generating meaningful increases in CFFO, earnings, and net asset value.”

Recent Investment Activity

• In the fourth quarter, the Company completed the acquisition of three senior living communities for a combined purchase price of approximately $30 million. Two of these communities are in South Carolina and one is in North Carolina, enhancing the Company’s geographic concentration in these states. Highlights of this transaction include:
  • Additional CFFO of $1.4 million, or $0.05 per share.
  • Incremental earnings of $0.7 million, or $0.03 per share.
  • Increases annual revenue by $8.0 million.
  • Average occupancy 92%.
  • Average monthly rents are approximately $2,900.

These three communities were financed with approximately $22 million of 10-year fixed rate debt that is non-recourse to the Company with an interest rate of 4.92%.

• Subsequent to the end of the fourth quarter, the Company completed the acquisition of a senior living community in Texas for a purchase price of approximately $7 million. Highlights of this transaction include:
  • Additional CFFO of $0.4 million, or $0.02 per share.
  • Incremental earnings of $0.2 million, or $0.01 per share.
  • Increases annual revenue by $2.5 million.
  • Average occupancy 96%.
  • Average monthly rents are approximately $2,700.

This community was financed with approximately $5.3 million of 10-year fixed rate debt that is non-recourse to the Company with an interest rate of 4.38%.

• The Company has completed due diligence on five additional high-quality senior living communities in Texas and Indiana. Subject to customary closing conditions, the Company expects to acquire these five additional communities later this month for a combined purchase price of approximately $49.0 million. These communities are projected to increase annual CFFO by approximately $0.09 per share.
• The Company is conducting due diligence on additional transactions consisting of high-quality senior living communities in regions with existing extensive operations. Subject to completion of due diligence and customary closing conditions, the Company expects to acquire additional communities in the second quarter of 2012.

Quarterly Financial Results

For the fourth quarter of 2011, the Company reported revenue of $71.2 million, compared to revenue of $59.9 million in the fourth quarter of 2010. Resident and healthcare revenue increased from the fourth quarter of the prior year by approximately $13.1 million, or 23.2%, largely as a result of converting the four Spring Meadows communities previously owned in joint ventures to leased communities and the acquisition of seven communities in the second half of 2011. The number of consolidated communities increased from 70 in the fourth quarter of 2010 to 81 in the fourth quarter of 2011.

Average monthly rent was $2,908 per occupied unit in the fourth quarter of 2011, an increase of $152, or 5.5%, over the fourth quarter of 2010. Financial occupancy of the consolidated portfolio averaged 85.6% in the fourth quarter of 2011, 90 basis points higher than the third quarter of 2011 and 50 basis points higher than the fourth quarter of 2010.

As a percentage of resident and healthcare revenue, operating expenses were 59.5% in the fourth quarter of 2011 compared to 59.7% in the fourth quarter of 2010, an improvement of 20 basis points. Operating expenses for the fourth quarter of 2011 were $41.5 million, an increase of $7.7 million from the fourth quarter of 2010, primarily due to 11 additional communities now being consolidated.

General and administrative expenses as a percentage of revenues under management were 4.3% for the quarter, excluding transaction costs associated with the Company’s acquisition program. Transaction costs for the quarter were approximately $0.5 million.

Adjusted EBITDAR for the fourth quarter of 2011 was approximately $25.4 million, an increase of $4.5 million, or 21.6% from the fourth quarter of 2010. Adjusted EBITDAR margin was 35.7% for the period, an improvement of 80 basis points from the fourth quarter of 2010.

Adjusted net income for the fourth quarter of 2011 was $2.0 million, or $0.08 per share, excluding non-recurring or non-economic items reconciled on the final page of this release. This figure matches the adjusted net income of $2.0 million, or $.08 per share reported in the fourth quarter of 2010.

Adjusted CFFO was $8.4 million, or $0.31 per share in the fourth quarter of 2011. Adjusted CFFO exceeded the fourth quarter of 2010 by $2.8 million, or $0.10 per share. In the most recent quarter, the Company benefited from approximately $4.0 million of bonus depreciation pursuant to The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act. The tax savings resulting from this bonus depreciation was approximately $1.8 million. Without this tax benefit, CFFO in the fourth quarter of 2011 would have been approximately $6.6 million, or $0.24 per share, an increase of 18.4% versus the fourth quarter of 2010.

Annual Financial Results

The Company reported 2011 revenue of $263.5 million compared to revenue of $211.9 million in 2010. Resident and healthcare revenue increased $59.6 million, or 30.3% from the prior year.

Operating expenses for 2011 were $154.0 million, or 60.0% of resident and healthcare revenue. Operating margins improved 70 basis points from the prior year.

General and administrative expenses in 2011 were $13.2 million, approximately $1.7 million higher than in 2010. Of the $1.7 million increase, approximately $1.0 million was due to transaction costs associated with the Company’s acquisitions. Excluding transaction costs in both years, general and administrative expenses increased 5.4% in 2011 on revenue growth of 24.3%. General and administrative expenses as a percentage of revenues under management improved from 4.8% in 2010 to 4.4% in 2011.

Adjusted EBITDAR was $92.3 million in 2011 compared to $68.6 million in 2010. Adjusted EBITDAR margin of 35.0% in 2011 improved 2.6 percentage points from the prior year. The Company earned adjusted net income of $6.9 million, or $0.25 per share in 2011, compared to adjusted net income of $4.7 million, or $0.17 per share in 2010. CFFO was $25.1 million, or $0.93 per share in 2011, an increase of $8.0 million, or $0.29 per share from 2010. Without the tax savings resulting from the bonus depreciation, CFFO in 2011 would have been approximately $23.3 million, or $0.86 per share.

Operating Activities

At communities under management, excluding one community that had a recent conversion, same-community revenue in the fourth quarter of 2011 increased 2.9% versus the fourth quarter of 2010. Same-community expenses increased 2.2% and net income increased 3.8% from the fourth quarter of the prior year.

Same-community occupancies were 50 basis points higher than the fourth quarter of 2010 and 50 basis points higher than the third quarter of 2011. Same-store occupancy in the fourth quarter reflected occupancy gains in independent living exceeding those in higher levels of care, resulting in average rents 2.3% higher than the fourth quarter of 2010 and 0.3% lower than last quarter.

Capital expenditures for the fourth quarter of 2011 were approximately $3.3 million, representing $2.0 million of investment spending and $1.3 million of recurring capital expenditures. If annualized, spending for recurring capital expenditures equaled approximately $600 per unit.

Balance Sheet

The Company ended 2011 with $31.4 million of cash and cash equivalents, including restricted cash. During the year, approximately $24.3 million of cash was invested as equity in the acquisition of seven senior living communities. As of December 31, 2011, the Company financed its 32 owned communities with mortgages totaling $229.3 million at fixed interest rates averaging 5.8%. The Company has no mortgage maturities before the third quarter of 2015.

The Company is about to complete supplemental financing of $5.6 million on communities with mortgages maturing in June of 2017. Interest on these borrowings is at a fixed rate of 4.47%. Additional supplemental financing of approximately $20.0 million is expected to close in the second quarter of 2012 on similar terms. Cash on hand, cash flow from operations and these supplemental financings are expected to be sufficient for working capital, prudent reserves and equity to fund the Company’s 2012 acquisition program. Furthermore, the Company has the ability to pursue additional supplemental financing in the future to fund further acquisitions.

Q4 2011 Conference Call Information

The Company will host a conference call with senior management to discuss the Company’s fourth quarter and full year 2011 financial results. The call will be held on Thursday, March 8, 2012 at 11:00 a.m. Eastern Time. The call-in number is 913-312-1469, confirmation code 9403823. 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 March 8, 2012 at 2:00 p.m. Eastern Time, until March 17, 2012 at 2:00 p.m. Eastern Time. To access the conference call replay, call 719-457-0820, confirmation code 9403823. The conference call will also be made available for playback via the Company’s corporate website, www.capitalsenior.com.

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 philosophy emphasizes 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 currently operates 85 senior living communities in geographically concentrated regions with an aggregate capacity of approximately 12,000 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 Company’s ability to 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 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.

This release contains certain financial information not derived in accordance with generally accepted accounting principles (GAAP), including adjusted EBITDAR, adjusted EBITDAR margin, Adjusted CFFO, Adjusted CFFO per share and other items. The Company believes this information is useful to investors and other interested parties. Such information should not be considered as a substitute for any measures derived in accordance with GAAP, and may not be comparable to other similarly titled measures of other companies. Reconciliation of this information to the most comparable GAAP measures is included as an attachment to this release.

Contact Ralph A. Beattie, Chief Financial Officer, at 972-770-5600 for more information.

CAPITAL SENIOR LIVING CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands)     December 31, December 31, 2011 2010   ASSETS Current assets: Cash and cash equivalents $ 22,283 $ 31,248 Restricted cash 9,102 6,334 Accounts receivable, net 4,526 3,777 Accounts receivable from affiliates 708 911 Federal and state income taxes receivable 5,436 3,962 Deferred taxes 1,479 1,290 Property tax and insurance deposits 11,395 11,059 Prepaid expenses and other   6,068     4,896   Total current assets 60,999 63,477 Property and equipment, net 365,459 295,449 Deferred taxes 5,782 3,478 Investments in unconsolidated joint ventures 1,070 2,224 Other assets, net   29,016     18,153   Total assets $ 462,326   $ 382,781     LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 2,297 $ 1,951 Accounts payable to affiliates 314 — Accrued expenses 19,086 16,125 Current portion of notes payable 8,196 5,645 Current portion of deferred income 8,740 7,242 Current portion of capital lease obligations 50 135 Customer deposits   1,530     1,299   Total current liabilities 40,213 32,397 Deferred income 26,175 14,493 Capital lease obligations, net of current portion 31 83 Other long-term liabilities 1,826 1,959 Notes payable, net of current portion 224,940 170,026 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 27,699 and 27,083 in 2011 and 2010, respectively

280

274

Additional paid-in capital 135,301 133,014 Retained earnings 34,494 31,469 Treasury stock, at cost – 350 shares in 2011 and 2010   (934 )   (934 ) Total shareholders' equity   169,141     163,823   Total liabilities and shareholders' equity $ 462,326   $ 382,781     See accompanying notes to consolidated financial statements.     CAPITAL SENIOR LIVING CORPORATION CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data)         Three Months Ended

December 31,

Year Ended

December 31,

2011 2010 2011 2010 Revenues: Resident and health care revenue $ 69,811 $ 56,683 $ 256,584 $ 196,936 Unaffiliated management services revenue — 6 — 60 Affiliated management services revenue 145 419 883 2,044 Community reimbursement revenue   1,196     2,800     6,035     12,889   Total revenues 71,152 59,908 263,502 211,929 Expenses: Operating expenses (exclusive of facility lease expense and depreciation and amortization expense shown below)

41,545

33,849

154,042

119,614

General and administrative expenses 3,641 2,534 13,198 11,535 Facility lease expense 13,466 11,036 52,233 34,253 Stock-based compensation expense 477 136 1,497 919 Provision for bad debts 70 35 287 174 Depreciation and amortization 6,383 3,543 18,299 14,030 Community reimbursement expense   1,196     2,800     6,035     12,889   Total expenses   66,778     53,933     245,591     193,414   Income from operations 4,374 5,975 17,911 18,515

Other income (expense):

Interest income 20 16 102 48 Interest expense (3,471 ) (2,802 ) (11,900 ) (11,242 )

(Loss) Gain on disposition of assets, net

(10 ) — 171 — Gain on settlement of debt — — — 684

Equity in (losses) earnings of unconsolidated joint ventures

  (141 )   (338 )   (760 )   (330 ) Income before provision for income taxes 772 2,851 5,524 7,675 Provision for income taxes   (426 )   (1,261 )   (2,499 )   (3,421 ) Net income $ 346   $ 1,590   $ 3,025   $ 4,254   Per share data: Basic net income per share $ 0.01   $ 0.06   $ 0.11   $ 0.16   Diluted net income per share $ 0.01   $ 0.06   $ 0.11   $ 0.16   Weighted average shares outstanding — basic   27,066     26,624     26,995     26,587   Weighted average shares outstanding — diluted   27,094     26,732     27,062     26,687       CAPITAL SENIOR LIVING CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)     Year Ended December 31, 2011 2010 Operating Activities   Net income

$

3,025

$

4,254

Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 18,299 14,030 Amortization of deferred financing charges 352 330 Amortization of deferred lease costs, net 1,710 1,005 Deferred income (2,669 ) (3,034 ) Deferred income taxes (2,493 ) 4,221

Equity in losses (earnings) of unconsolidated joint ventures

760 331 Gain on settlement of debt — (684 ) Gain on disposition of assets, net (171 ) — Provision for bad debts 287 174 Stock based compensation expense 1,497 919 Changes in operating assets and liabilities: Accounts receivable (1,036 ) (611 ) Accounts receivable from affiliates 203 (487 ) Property tax and insurance deposits (336 ) (2,584 ) Prepaid expenses and other (1,172 ) (931 ) Other assets (6,548 ) (2,670 ) Accounts payable 660 (86 ) Accrued expenses 2,961 3,838 Federal and state income taxes receivable (1,476 ) (2,469 ) Customer deposits   231     4   Net cash provided by operating activities 14,084 15,550 Investing Activities Capital expenditures (10,472 ) (8,447 ) Cash paid for acquisitions (83,450 ) (2,000 ) Proceeds from Spring Meadows Transaction 15,844 — Contributions to joint ventures (801 ) — Distributions from joint ventures   1,442     5,165   Net cash used in investing activities (77,437 ) (5,282 ) Financing Activities Increase in restricted cash (2,768 ) (4,167 ) Proceeds from notes payable 64,202 3,591 Repayments of notes payable (6,737 ) (10,154 ) Lease incentive from Signature Transaction — 2,000 Increase in capital lease obligations — 240 Cash payments for capital lease obligations (137 ) (22 ) Deferred financing charges paid (968 ) — Cash proceeds from the issuance of common stock 505 359 Excess tax benefits on stock options exercised   291     161  

Net cash provided by (used in) financing activities

  54,388     (7,992 )

(Decrease) Increase in cash and cash equivalents

(8,965 ) 2,276 Cash and cash equivalents at beginning of period   31,248     28,972   Cash and cash equivalents at end of period $ 22,283   $ 31,248   Supplemental Disclosures Cash paid during the period for: Interest $ 11,266   $ 10,949   Income taxes $ 6,810   $ 2,328       Capital Senior Living Corporation Supplemental Information               Communities Resident Capacity Units Q4 11 Q4 10 Q4 11 Q4 10 Q4 11 Q4 10 Portfolio Data I. Community Ownership / Management Consolidated communities Owned 32 25 4,832 4,052 4,051 3,501 Leased 49 45 6,318 5,514 5,050 4,377 Joint Venture communities (equity method) 3 7 674 1,434 433 1,061 Total 84 77 11,824 11,000 9,534 8,939   Independent living 6,832 6,622 5,671 5,515 Assisted living 4,277 3,663 3,245 2,806 Continuing Care Retirement Communities 715 715 618 618

Total

11,824 11,000 9,534 8,939   II. Percentage of Operating Portfolio Consolidated communities Owned 38.1% 32.5% 40.9% 36.9% 42.5% 39.2% Leased 58.3% 58.4% 53.4% 50.1% 53.0% 49.0% Joint venture communities (equity method) 3.6% 9.1% 5.7% 13.0% 4.5% 11.8% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%   Independent living 57.8% 60.2% 59.5% 61.7% Assisted living 36.2% 33.3% 34.0% 31.4% Continuing Care Retirement Communities 6.0% 6.5% 6.5% 6.9% Total 100.0% 100.0% 100.0% 100.0%     Capital Senior Living Corporation Supplemental Information     Selected Operating Results Q4 11 Q4 10 I. Owned communities Number of communities 32 25 Resident capacity 4,832 4,052 Unit capacity 4,051 3,501 Financial occupancy (1) 88.3 % 84.7 % Revenue (in millions) 26.7 20.6 Operating expenses (in millions) (2) 14.8 11.5 Operating margin 45 % 44 % Average monthly rent 2,451 2,319 II. Leased communities Number of communities 49 45 Resident capacity 6,318 5,514 Unit capacity 5,050 4,377 Financial occupancy (1) 83.5 % 85.4 % Revenue (in millions) 43.0 36.0 Operating expenses (in millions) (2) 23.0 19.2 Operating margin 47 % 47 % Average monthly rent 3,288 3,088 III. Consolidated communities Number of communities 81 70 Resident capacity 11,150 9,566 Unit capacity 9,101 7,878 Financial occupancy (1) 85.6 % 85.1 % Revenue (in millions) 69.7 56.6 Operating expenses (in millions) (2) 37.8 30.7 Operating margin 46 % 46 % Average monthly rent 2,908 2,756 IV. Communities under management Number of communities 84 77 Resident capacity 11,824 11,000 Unit capacity 9,534 8,939 Financial occupancy (1) 84.7 % 83.0 % Revenue (in millions) 72.6 64.9 Operating expenses (in millions) (2) 39.7 35.3 Operating margin 45 % 46 % Average monthly rent 2,924 2,852 V. Same Store communities under management (excludes 1 community with a conversion and 3 communities in lease up) Number of communities 73 73 Resident capacity 10,144 10,144 Unit capacity 8,365 8,365 Financial occupancy (1) 85.4 % 84.9 % Revenue (in millions) 63.6 61.8 Operating expenses (in millions) (2) 34.1 33.1 Operating margin 46 % 46 % Average monthly rent 2,913 2,848 VI. General and Administrative expenses as a percent of Total Revenues under Management Fourth Quarter (3) 4.3 % 3.9 % Fiscal Year (3) 4.4 % 4.8 % VII. Consolidated Mortgage Debt Information (in thousands, except for interest rates) (excludes insurance premium and auto financing) Total fixed rate debt 229,263 173,965 Weighted average interest rate 5.8 % 6.0 %  

(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 SENIOR LIVING CORPORATION NON-GAAP RECONCILIATIONS         Three Months Ended December 31, Year Ended December 31, 2011 2010 2011 2010   Adjusted EBITDAR Net income from operations $ 4,374 $ 5,975 $ 17,911 $ 18,515 Depreciation and amortization expense 6,383 3,543 18,299 14,030 Stock-based compensation expense 477 136 1,497 919 Facility lease expense 13,466 11,036 52,233 34,253 Provision for bad debts 70 35 287 174 Casualty losses 112 99 711 260 Transaction costs   546     82     1,390     451   Adjusted EBITDAR $ 25,428   $ 20,906   $ 92,328   $ 68,602     Adjusted EBITDAR Margin Adjusted EBITDAR $ 25,428 $ 20,906 $ 92,328 $ 68,602 Total revenues   71,152     59,908     263,502     211,929   Adjusted EBITDAR margin   35.7 %   34.9 %   35.0 %   32.4 %   Adjusted net income and net income per share Net income $ 346 $ 1,590 $ 3,025 $ 4,254 Casualty losses, net of tax 71 62 448 164 Transaction costs, net of tax 344 52 876 284 Resident lease amortization, net of tax 1,268 301 2,636 389

Loss (Gain) on disposition of assets, net of tax

6 - (108 ) - Gain on settlement of debt, net of tax   -     -     -     (431 ) Adjusted net income $ 2,035   $ 2,005   $ 6,877   $ 4,660           Adjusted net income per share $ 0.08   $ 0.08   $ 0.25   $ 0.17     Diluted shares outstanding 27,094 26,732 27,062 26,687   Adjusted CFFO and Adjusted CFFO per share Net cash provided by operating activities $ 1,913 $ 2,067 $ 14,084 $ 15,550 Changes in operating assets and liabilities 6,980 4,080 6,513 5,996 Recurring capital expenditures (792 ) (664 ) (2,964 ) (2,331 ) Casualty losses, net of tax 71 62 448 164 Transaction costs, net of tax 344 52 876 284 Tax impact of Spring Meadows Transaction (106 ) - 6,142 - Tax impact from amended returns   -     -     -     (2,536 ) Adjusted CFFO $ 8,410   $ 5,597   $ 25,099   $ 17,127           Adjusted CFFO per share $ 0.31   $ 0.21   $ 0.93   $ 0.64