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 third quarter of 2013. Company
highlights for the third quarter include:
Highlights
-
Adjusted Cash From Facility Operations (“CFFO”) was $8.9 million, or
$0.32 per share in the third quarter of 2013, excluding two CCRCs that
are being re-positioned.
-
Adjusted EBITDAR increased 7.0% to $29.3 million in the third quarter
of 2013, an increase of $1.9 million from the third quarter of 2012.
Excluding two CCRCs being re-positioned, EBITDAR margin was 35.2% in
the third quarter of 2013.
-
Revenue increased 12.8% to $88.0 million in the third quarter of 2013,
an increase of $10.0 million from the third quarter of 2012.
-
Average monthly rent for the consolidated communities increased 3.8%
to $3,023 per occupied unit in the third quarter of 2013, an increase
of $111 per occupied unit from the third quarter of 2012.
-
Same-community revenue grew 2.4%, same-community expenses increased
1.3% and same-community operating income increased 3.9% compared to
the third quarter of 2012.
-
The Company completed the acquisition of two senior living communities
for a combined purchase price of approximately $21.6 million.
Subsequent to the end of the third quarter, the Company completed the
acquisition of two additional senior living communities for a combined
purchase price of approximately $31.8 million.
“We are very pleased to report positive results for the third quarter as
we continue our recovery from the effects of the flu season earlier this
year,” said Lawrence A. Cohen, Chief Executive Officer of the Company.
“Same store occupancy at the end of September was 70 basis points higher
than occupancy at the end of June. This significant increase, along with
a 20% increase in third quarter deposits, bodes well for fourth quarter
financial results.
“We are also pleased to report that a re-positioning of our two
continuing care retirement communities to further enhance our
private-pay revenues is proceeding well. After considering a number of
alternatives, including a sale of these owned communities, we decided
that a reconfiguration of the services we offer will enhance annual
CFFO, improve our operating metrics and enable meaningful gains in
shareholder value. The residents we served in skilled nursing have
nearly all been relocated to other nursing homes and we will soon begin
reconfiguring this space for private-pay use.
“Complementing this organic growth is a robust pipeline that allows us
to continue our disciplined and strategic acquisition program that
increases our ownership of high-quality senior living communities in
geographically concentrated regions and generates meaningful increases
in CFFO, earnings and real estate value. We differentiate Capital Senior
Living as the value leader in providing quality seniors housing and care
at reasonable prices. We are well positioned to make meaningful gains in
shareholder value as a substantially all private-pay business in an
industry that benefits from need-driven demand, limited new supply, and
an improving economy and housing market.”
Recent Investment Activity
-
In the third quarter, the Company completed the acquisition of two
senior living communities for a combined purchase price of
approximately $21.6 million. One community enhances the Company’s
geographic concentration in Ohio and the other adds the contiguous
state of Georgia to the Company’s footprint. Both communities offer
assisted living with memory care and total 125 units.
Highlights
of these transactions include:
-
Additional CFFO of $0.9 million, or $0.03 per share.
-
Incremental earnings of $0.5 million, or $0.02 per share.
-
Increases annual revenue by $5.5 million.
-
Average occupancy 93%.
-
Average monthly rents are approximately $3,900.
-
The two communities were financed with an aggregate of approximately
$16.1 million of non-recourse mortgage debt consisting of $7.6 million
of 10-year debt with a fixed interest rate of 5.93% and bridge
financing of approximately $8.5 million with a variable interest rate
of approximately 3.93%. The bridge loan is for a community that is
upgrading the assisted living license and, after completion, will be
refinanced with permanent debt.
-
Subsequent to the end of the third quarter, the Company completed the
acquisition of two senior living communities for a combined purchase
price of approximately $31.8 million. These communities add the
contiguous states of Wisconsin and Massachusetts to the Company’s
footprint. One community offers independent living with assisted
living while the other offers assisted living with memory care.
Together, these two communities comprise 150 units.
Highlights
of these transactions include:
-
Additional CFFO of $1.3 million, or $0.05 per share.
-
Incremental earnings of $0.6 million, or $0.02 per share.
-
Increases annual revenue by $7.3 million.
-
Average occupancy 95%.
-
Average monthly rents are approximately $3,700.
-
The two communities were financed with an aggregate of approximately
$23.8 million of non-recourse 10-year mortgage debt at a blended fixed
interest rate of 5.44%.
-
The Company is conducting due diligence on approximately $65.0 million
of additional transactions consisting of high-quality senior living
communities in regions with extensive existing operations. Subject to
completion of due diligence and customary closing conditions, these
transactions are expected to close in the fourth quarter of this year.
The Company has additional acquisitions in the pipeline that are
anticipated to close in 2014.
Financial Results
For the third quarter of 2013, the Company reported revenue of $88.0
million, compared to revenue of $78.0 million in the third quarter of
2012. Resident and healthcare revenue increased from the third quarter
of the prior year by approximately $9.8 million, or 12.7%, largely as a
result of acquiring 15 communities since the third quarter of 2012. The
number of consolidated communities increased from 88 in the third
quarter of 2012 to 103 in the third quarter of 2013.
Excluding the two CCRCs that are being re-positioned, average monthly
rent for the consolidated communities was $3,023 per occupied unit in
the third quarter of 2013, an increase of $111, or 3.8%, over the third
quarter of 2012. Financial occupancy of the consolidated portfolio
averaged 86.4% in the third quarter of 2013.
As a percentage of resident and healthcare revenue, operating expenses
were 61.3% in the third quarter of 2013, compared to 61.1% in the third
quarter of 2012. Operating expenses for the third quarter of 2013 were
$52.9 million, an increase of $6.1 million from the third quarter of
2012, primarily due to 15 additional communities now being consolidated.
General and administrative expenses as a percentage of revenues under
management were 5.5% for the quarter, excluding transaction costs of
approximately $0.4 million. Expenses this quarter were $1.6 million
higher than the third quarter of the prior year and were once again
impacted by an abnormally high level of medical claims that exceeded the
third quarter of 2012 by approximately $1.2 million. The Company is
self-insured for the costs of employee and dependent medical benefits
and purchases stop-loss protection on an individual and aggregate basis.
This self-insurance program significantly reduces the Company’s health
insurance costs. Occasionally, expenses are higher than average in a
particular quarter as a few claims approach stop-loss insurance
thresholds.
Adjusted EBITDAR for the third quarter of 2013 was approximately $29.3
million, an increase of $1.9 million, or 7.0% from the third quarter of
2012. Excluding the two communities being re-positioned, EBITDAR margin
for the third quarter of 2013 was 35.2%.
Adjusted net income for the third quarter of 2013 was $0.7 million, or
$0.03 per share, excluding non-recurring or non-economic items
reconciled on the final page of this release. Adjusted CFFO was $8.9
million or $0.32 per share in the third quarter of 2013.
The CFFO in the third quarter of 2013 did not include a benefit from the
cost segregation study completed earlier this year. Consequently, there
remains approximately $0.18 per share of CFFO from this change in
depreciation for tax purposes that will be realized as the Company
generates taxable income in future periods.
For the first nine months of 2013, the Company reported revenue of
$261.4 million, compared to revenue of $227.3 million for the first nine
months of 2012. Resident and healthcare revenue increased $33.2 million,
or 14.9%, from the first nine months of the prior year.
Adjusted EBITDAR for the first nine months of 2013 was $89.8 million,
compared to $80.8 million for the first nine months of 2012. The Company
earned adjusted net income of $3.6 million, or $0.13 per share, in the
first nine months of 2013. Adjusted CFFO was $28.1 million, or $1.01 per
share, in the first nine months of 2013, an increase of 17.6% compared
to $23.9 million, or $0.87 per share, in the first nine months of 2012.
Operating Activities
The Company is well positioned as a substantially all private-pay
business and intends to further differentiate itself by enhancing its
private-pay revenues. Two continuing care retirement communities are
being re-positioned with space being converted to other private-pay use.
While these communities are being re-positioned, same-community results
for these two communities will be excluded.
At communities under management, excluding the two communities
referenced above, same-community revenue in the third quarter of 2013
increased 2.4% versus the third quarter of 2012. Same-community expenses
increased 1.3% and net operating income increased 3.9% from the third
quarter of the prior year. Same-community occupancies were 85.8% and
average rents were $85 per occupied unit or 2.9% higher than the third
quarter of the prior year.
Capital expenditures for the third quarter of 2013 were approximately
$4.7 million, representing $3.7 million of investment spending and $1.0
million of recurring capital expenditures. If annualized, spending for
recurring capital expenditures equaled approximately $400 per unit.
Balance Sheet
The Company ended the third quarter of 2013 with $30.2 million of cash
and cash equivalents, including restricted cash. The cash balance
declined $0.3 million from the end of the second quarter, during which
time the Company invested $5.5 million of cash as equity to complete two
acquisitions and spent $4.7 million on capital improvements.
As of September 30, 2013, the Company financed its 53 owned communities
with mortgages totaling $395.6 million at interest rates averaging
5.21%. All of the Company’s debt is at fixed interest rates, except two
bridge loans totaling approximately $13.0 million at variable rates. The
Company has no mortgage maturities before the third quarter of 2015.
Q3 2013 Conference Call Information
The Company will host a conference call with senior management to
discuss the Company’s third quarter 2013 financial results. The call
will be held on Monday, November 4, 2013 at 5:00 p.m. Eastern Time. The
call-in number is 913-981-5507, confirmation code 4612033. 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
November 4, 2013 at 8:00 p.m. Eastern Time, until November 13, 2013 at
8:00 p.m. Eastern Time. To access the conference call replay, call
719-457-0820, confirmation code 4612033. The conference call will also
be made available for playback via the Company’s corporate website, www.capitalsenior.com,
beginning November 5, 2013.
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 living 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 currently operates 108 senior
living communities in geographically concentrated regions with an
aggregate capacity of approximately 14,300 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.
For information about Capital Senior Living, visit www.capitalsenior.com.
Contact Ralph A. Beattie, Chief Financial Officer, at 972-770-5600 for
more information.
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|
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CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
|
(unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
18,765
|
|
|
|
$
|
18,737
|
|
|
Restricted cash
|
|
|
11,418
|
|
|
|
|
10,179
|
|
|
Accounts receivable, net
|
|
|
4,658
|
|
|
|
|
5,229
|
|
|
Accounts receivable from affiliates
|
|
|
320
|
|
|
|
|
753
|
|
|
Federal and state income taxes receivable
|
|
|
378
|
|
|
|
|
3,901
|
|
|
Deferred taxes
|
|
|
5,288
|
|
|
|
|
1,443
|
|
|
Property tax and insurance deposits
|
|
|
12,500
|
|
|
|
|
11,442
|
|
|
Prepaid expenses and other
|
|
|
5,625
|
|
|
|
|
4,758
|
|
|
Total current assets
|
|
|
58,952
|
|
|
|
|
56,442
|
|
|
Property and equipment, net
|
|
|
565,897
|
|
|
|
|
527,159
|
|
|
Deferred taxes
|
|
|
—
|
|
|
|
|
9,350
|
|
|
Investments in unconsolidated joint ventures
|
|
|
1,053
|
|
|
|
|
1,074
|
|
|
Other assets, net
|
|
|
36,504
|
|
|
|
|
42,917
|
|
|
Total assets
|
|
$
|
662,406
|
|
|
|
$
|
636,942
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
2,553
|
|
|
|
$
|
6,978
|
|
|
Accounts payable to affiliates
|
|
|
3
|
|
|
|
|
2
|
|
|
Accrued expenses
|
|
|
28,587
|
|
|
|
|
24,445
|
|
|
Current portion of notes payable
|
|
|
11,265
|
|
|
|
|
20,230
|
|
|
Current portion of deferred income
|
|
|
9,537
|
|
|
|
|
8,193
|
|
|
Current portion of capital lease and financing obligations
|
|
|
945
|
|
|
|
|
766
|
|
|
Customer deposits
|
|
|
1,518
|
|
|
|
|
1,540
|
|
|
Total current liabilities
|
|
|
54,408
|
|
|
|
|
62,154
|
|
|
Deferred income
|
|
|
18,302
|
|
|
|
|
19,990
|
|
|
Capital lease and financing obligations, net of current portion
|
|
|
41,409
|
|
|
|
|
42,146
|
|
|
Other long-term liabilities
|
|
|
1,592
|
|
|
|
|
1,692
|
|
|
Notes payable, net of current portion
|
|
|
387,736
|
|
|
|
|
342,366
|
|
|
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 – 28,801 and 28,218 in 2013 and 2012, respectively
|
|
|
292
|
|
|
|
|
286
|
|
|
Additional paid-in capital
|
|
|
142,335
|
|
|
|
|
137,867
|
|
|
Retained earnings
|
|
|
17,266
|
|
|
|
|
31,375
|
|
|
Treasury stock, at cost – 350 shares
|
|
|
(934
|
)
|
|
|
|
(934
|
)
|
|
Total shareholders' equity
|
|
|
158,959
|
|
|
|
|
168,594
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
662,406
|
|
|
|
$
|
636,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(unaudited, in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Resident and health care revenue
|
|
$
|
86,333
|
|
|
$
|
76,577
|
|
|
$
|
256,409
|
|
|
$
|
223,161
|
|
|
Affiliated management services revenue
|
|
|
205
|
|
|
|
176
|
|
|
|
586
|
|
|
|
492
|
|
|
Community reimbursement revenue
|
|
|
1,445
|
|
|
|
1,259
|
|
|
|
4,432
|
|
|
|
3,605
|
|
|
Total revenues
|
|
|
87,983
|
|
|
|
78,012
|
|
|
|
261,427
|
|
|
|
227,258
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
Operating expenses (exclusive of facility lease expense and
depreciation and amortization expense shown below)
|
|
|
52,936
|
|
|
|
46,791
|
|
|
|
154,186
|
|
|
|
134,186
|
|
|
General and administrative expenses
|
|
|
5,026
|
|
|
|
3,288
|
|
|
|
15,029
|
|
|
|
10,923
|
|
|
Facility lease expense
|
|
|
14,274
|
|
|
|
13,819
|
|
|
|
42,813
|
|
|
|
41,179
|
|
|
Stock-based compensation expense
|
|
|
869
|
|
|
|
602
|
|
|
|
3,158
|
|
|
|
1,843
|
|
|
Depreciation and amortization
|
|
|
10,533
|
|
|
|
9,214
|
|
|
|
33,183
|
|
|
|
24,970
|
|
|
Community reimbursement expense
|
|
|
1,445
|
|
|
|
1,259
|
|
|
|
4,432
|
|
|
|
3,605
|
|
|
Total expenses
|
|
|
85,083
|
|
|
|
74,973
|
|
|
|
252,801
|
|
|
|
216,706
|
|
|
Income from operations
|
|
|
2,900
|
|
|
|
3,039
|
|
|
|
8,626
|
|
|
|
10,552
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
17
|
|
|
|
369
|
|
|
|
138
|
|
|
|
436
|
|
|
Interest expense
|
|
|
(5,943
|
)
|
|
|
(4,847
|
)
|
|
|
(17,321
|
)
|
|
|
(12,699
|
)
|
|
Gain (Loss) on disposition of assets, net
|
|
|
13
|
|
|
|
(14
|
)
|
|
|
12
|
|
|
|
(19
|
)
|
|
Equity in earnings (losses) of unconsolidated joint ventures, net
|
|
|
43
|
|
|
|
(26
|
)
|
|
|
76
|
|
|
|
(241
|
)
|
|
Other income
|
|
|
10
|
|
|
|
—
|
|
|
|
28
|
|
|
|
—
|
|
|
Loss before (provision) benefit for income taxes
|
|
|
(2,960
|
)
|
|
|
(1,479
|
)
|
|
|
(8,441
|
)
|
|
|
(1,971
|
)
|
|
(Provision) Benefit for income taxes
|
|
|
(7,003
|
)
|
|
|
542
|
|
|
|
(5,668
|
)
|
|
|
493
|
|
|
Net loss
|
|
$
|
(9,963
|
)
|
|
$
|
(937
|
)
|
|
$
|
(14,109
|
)
|
|
$
|
(1,478
|
)
|
|
Per share data:
|
|
|
|
|
|
|
|
|
|
Basic net loss per share
|
|
$
|
(0.35
|
)
|
|
$
|
(0.03
|
)
|
|
$
|
(0.49
|
)
|
|
$
|
(0.05
|
)
|
|
Diluted net loss per share
|
|
$
|
(0.35
|
)
|
|
$
|
(0.03
|
)
|
|
$
|
(0.49
|
)
|
|
$
|
(0.05
|
)
|
|
Weighted average shares outstanding — basic
|
|
|
27,911
|
|
|
|
27,383
|
|
|
|
27,769
|
|
|
|
27,331
|
|
|
Weighted average shares outstanding — diluted
|
|
|
27,911
|
|
|
|
27,383
|
|
|
|
27,769
|
|
|
|
27,331
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
|
|
$
|
(9,963
|
)
|
|
$
|
(937
|
)
|
|
$
|
(14,109
|
)
|
|
$
|
(1,478
|
)
|
|
|
|
|
|
|
|
|
|
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
|
2013
|
|
2012
|
|
Operating Activities
|
|
|
|
|
|
Net loss
|
|
$
|
(14,109
|
)
|
|
$
|
(1,478
|
)
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
33,183
|
|
|
|
24,970
|
|
|
Amortization of deferred financing charges
|
|
|
822
|
|
|
|
518
|
|
|
Amortization of deferred lease costs and lease intangibles
|
|
|
978
|
|
|
|
452
|
|
|
Deferred income
|
|
|
(344
|
)
|
|
|
(2,505
|
)
|
|
Deferred income taxes
|
|
|
5,505
|
|
|
|
(6,426
|
)
|
|
(Gain) Loss on disposition of assets, net
|
|
|
(12
|
)
|
|
|
19
|
|
|
Equity in (earnings) losses of unconsolidated joint ventures
|
|
|
(76
|
)
|
|
|
241
|
|
|
Provision for bad debts
|
|
|
330
|
|
|
|
550
|
|
|
Stock-based compensation expense
|
|
|
3,158
|
|
|
|
1,843
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
241
|
|
|
|
266
|
|
|
Accounts receivable from affiliates
|
|
|
433
|
|
|
|
(138
|
)
|
|
Property tax and insurance deposits
|
|
|
(1,058
|
)
|
|
|
2,073
|
|
|
Prepaid expenses and other
|
|
|
(867
|
)
|
|
|
2,259
|
|
|
Other assets
|
|
|
(3,101
|
)
|
|
|
3,117
|
|
|
Accounts payable
|
|
|
(4,424
|
)
|
|
|
(437
|
)
|
|
Accrued expenses
|
|
|
4,142
|
|
|
|
3,324
|
|
|
Federal and state income taxes receivable/payable
|
|
|
3,523
|
|
|
|
8,604
|
|
|
Customer deposits
|
|
|
(22
|
)
|
|
|
(51
|
)
|
|
Net cash provided by operating activities
|
|
|
28,302
|
|
|
|
37,201
|
|
|
Investing Activities
|
|
|
|
|
|
Capital expenditures
|
|
|
(9,888
|
)
|
|
|
(9,096
|
)
|
|
Cash paid for acquisitions
|
|
|
(53,741
|
)
|
|
|
(75,595
|
)
|
|
Proceeds from disposition of assets
|
|
|
18
|
|
|
|
19
|
|
|
Contributions to unconsolidated joint ventures
|
|
|
—
|
|
|
|
(241
|
)
|
|
Distributions from unconsolidated joint ventures
|
|
|
97
|
|
|
|
21
|
|
|
Net cash used in investing activities
|
|
|
(63,514
|
)
|
|
|
(84,892
|
)
|
|
Financing Activities
|
|
|
|
|
|
Proceeds from notes payable
|
|
|
56,939
|
|
|
|
81,888
|
|
|
Repayments of notes payable
|
|
|
(20,534
|
)
|
|
|
(6,837
|
)
|
|
Increase in restricted cash
|
|
|
(1,239
|
)
|
|
|
(94
|
)
|
|
Cash payments for capital lease and financing obligations
|
|
|
(558
|
)
|
|
|
(230
|
)
|
|
Cash proceeds from the issuance of common stock
|
|
|
2,761
|
|
|
|
127
|
|
|
Excess tax benefits on stock options exercised
|
|
|
(1,445
|
)
|
|
|
228
|
|
|
Deferred financing charges paid
|
|
|
(684
|
)
|
|
|
(1,376
|
)
|
|
Net cash provided by financing activities
|
|
|
35,240
|
|
|
|
73,706
|
|
|
Increase in cash and cash equivalents
|
|
|
28
|
|
|
|
26,015
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
18,737
|
|
|
|
22,283
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
18,765
|
|
|
$
|
48,298
|
|
|
Supplemental Disclosures
|
|
|
|
|
|
Cash paid during the period for:
|
|
|
|
|
|
Interest
|
|
$
|
16,058
|
|
|
$
|
11,826
|
|
|
Income taxes
|
|
$
|
677
|
|
|
$
|
777
|
|
|
Non-cash operating, investing, and financing activities during the
period:
|
|
|
|
|
|
Intangible assets acquired through capital lease and financing
obligations
|
|
$
|
—
|
|
|
$
|
11,794
|
|
|
Property and equipment acquired through capital lease and financing
obligations
|
|
$
|
—
|
|
|
$
|
13,243
|
|
|
Notes payable assumed through capital lease and financing obligations
|
|
$
|
—
|
|
|
$
|
18,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Senior Living Corporation
|
|
Supplemental Information (Excludes CCRCs being re-positioned)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
Communities
|
|
|
Resident Capacity
|
|
|
Average Units
|
|
|
|
Q3 13
|
|
Q3 12
|
|
|
Q3 13
|
|
Q3 12
|
|
|
Q3 13
|
|
Q3 12
|
|
Portfolio Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I. Community Ownership / Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated communities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned
|
|
51
|
|
|
36
|
|
|
|
6,374
|
|
|
4,914
|
|
|
|
5,185
|
|
|
4,100
|
|
|
Leased
|
|
50
|
|
|
50
|
|
|
|
6,298
|
|
|
6,298
|
|
|
|
5,213
|
|
|
5,205
|
|
|
Joint Venture communities (equity method)
|
|
3
|
|
|
3
|
|
|
|
674
|
|
|
674
|
|
|
|
443
|
|
|
441
|
|
|
Total
|
|
104
|
|
|
89
|
|
|
|
13,346
|
|
|
11,886
|
|
|
|
10,841
|
|
|
9,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent living
|
|
|
|
|
|
|
7,229
|
|
|
7,035
|
|
|
|
5,890
|
|
|
5,747
|
|
|
Assisted living
|
|
|
|
|
|
|
6,117
|
|
|
4,851
|
|
|
|
4,951
|
|
|
3,999
|
|
|
Continuing Care Retirement Communities
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
Total
|
|
|
|
|
|
|
13,346
|
|
|
11,886
|
|
|
|
10,841
|
|
|
9,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
II. Percentage of Operating Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated communities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned
|
|
49.0
|
%
|
|
40.4
|
%
|
|
|
47.8
|
%
|
|
41.3
|
%
|
|
|
47.8
|
%
|
|
42.1
|
%
|
|
Leased
|
|
48.1
|
%
|
|
56.2
|
%
|
|
|
47.2
|
%
|
|
53.0
|
%
|
|
|
48.1
|
%
|
|
53.4
|
%
|
|
Joint venture communities (equity method)
|
|
2.9
|
%
|
|
3.4
|
%
|
|
|
5.1
|
%
|
|
5.7
|
%
|
|
|
4.1
|
%
|
|
4.5
|
%
|
|
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent living
|
|
|
|
|
|
|
54.2
|
%
|
|
59.2
|
%
|
|
|
54.3
|
%
|
|
59.0
|
%
|
|
Assisted living
|
|
|
|
|
|
|
45.8
|
%
|
|
40.8
|
%
|
|
|
45.7
|
%
|
|
41.0
|
%
|
|
Continuing Care Retirement Communities
|
|
|
|
|
|
0.0
|
%
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
0.0
|
%
|
|
Total
|
|
|
|
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Senior Living Corporation
|
|
|
|
|
|
Supplemental Information (Excludes CCRCs being re-positioned)
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating Results
|
|
Q3 13
|
|
Q3 12
|
|
I. Owned communities (Excludes CCRCs being re-positioned)
|
|
|
|
|
|
Number of communities
|
|
51
|
|
36
|
|
Resident capacity
|
|
6,374
|
|
4,914
|
|
Unit capacity
|
|
5,185
|
|
4,100
|
|
Financial occupancy (1)
|
|
86.8%
|
|
87.6%
|
|
Revenue (in millions)
|
|
36.7
|
|
26.9
|
|
Operating expenses (in millions) (2)
|
|
20.6
|
|
14.8
|
|
Operating margin
|
|
44%
|
|
45%
|
|
Average monthly rent
|
|
2,719
|
|
2,496
|
|
II. Leased communities
|
|
|
|
|
|
Number of communities
|
|
50
|
|
50
|
|
Resident capacity
|
|
6,298
|
|
6,298
|
|
Unit capacity
|
|
5,213
|
|
5,205
|
|
Financial occupancy (1)
|
|
86.1%
|
|
86.1%
|
|
Revenue (in millions)
|
|
44.8
|
|
43.6
|
|
Operating expenses (in millions) (2)
|
|
22.3
|
|
22.1
|
|
Operating margin
|
|
50%
|
|
49%
|
|
Average monthly rent
|
|
3,326
|
|
3,245
|
|
III. Consolidated communities (Excludes CCRCs being
re-positioned)
|
|
|
|
|
|
Number of communities
|
|
101
|
|
86
|
|
Resident capacity
|
|
12,672
|
|
11,212
|
|
Unit capacity
|
|
10,398
|
|
9,305
|
|
Financial occupancy (1)
|
|
86.4%
|
|
86.8%
|
|
Revenue (in millions)
|
|
81.5
|
|
70.5
|
|
Operating expenses (in millions) (2)
|
|
42.9
|
|
36.9
|
|
Operating margin
|
|
47%
|
|
48%
|
|
Average monthly rent
|
|
3,023
|
|
2,912
|
|
IV. Communities under management (Excludes CCRCs being
re-positioned)
|
|
|
|
|
|
Number of communities
|
|
104
|
|
89
|
|
Resident capacity
|
|
13,346
|
|
11,886
|
|
Unit capacity
|
|
10,841
|
|
9,746
|
|
Financial occupancy (1)
|
|
86.5%
|
|
86.3%
|
|
Revenue (in millions)
|
|
85.6
|
|
74.0
|
|
Operating expenses (in millions) (2)
|
|
45.0
|
|
38.9
|
|
Operating margin
|
|
47%
|
|
47%
|
|
Average monthly rent
|
|
3,043
|
|
2,933
|
|
V. Same Store communities under management (Excludes CCRCs
being re-positioned)
|
|
|
|
|
|
Number of communities
|
|
89
|
|
89
|
|
Resident capacity
|
|
11,886
|
|
11,886
|
|
Unit capacity
|
|
9,761
|
|
9,746
|
|
Financial occupancy (1)
|
|
85.8%
|
|
86.3%
|
|
Revenue (in millions)
|
|
75.8
|
|
74.0
|
|
Operating expenses (in millions) (2)
|
|
39.4
|
|
38.9
|
|
Operating margin
|
|
48%
|
|
47%
|
|
Average monthly rent
|
|
3,018
|
|
2,933
|
|
VI. General and Administrative expenses as a percent of Total
Revenues under Management
|
|
|
|
|
|
Third quarter (3)
|
|
5.5%
|
|
3.8%
|
|
First nine months (3)
|
|
5.3%
|
|
4.2%
|
|
VII. Consolidated Debt Information (in thousands, except for
interest rates)
|
|
|
|
|
|
(Excludes insurance premium and auto financing)
|
|
|
|
|
|
Total fixed rate mortgage debt
|
|
382,531
|
|
287,623
|
|
Variable rate mortgage debt
|
|
13,022
|
|
-
|
|
Weighted average interest rate
|
|
5.21%
|
|
5.47%
|
|
|
|
|
|
(1)
|
|
Financial occupancy represents actual days occupied divided by total
number of available days during each month of the quarter.
|
|
(2)
|
|
Excludes management fees, insurance and property taxes.
|
|
(3)
|
|
Excludes transaction and conversion costs incurred by the Company.
|
|
|
|
|
|
CAPITAL SENIOR LIVING CORPORATION
|
|
NON-GAAP RECONCILIATIONS
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
Adjusted EBITDAR
|
|
|
|
|
|
|
|
|
|
|
Net income from operations
|
|
$
|
2,900
|
|
|
$
|
3,039
|
|
|
|
$
|
8,626
|
|
|
$
|
10,552
|
|
|
Depreciation and amortization expense
|
|
|
10,533
|
|
|
|
9,214
|
|
|
|
|
33,183
|
|
|
|
24,970
|
|
|
Stock-based compensation expense
|
|
|
869
|
|
|
|
602
|
|
|
|
|
3,158
|
|
|
|
1,843
|
|
|
Facility lease expense
|
|
|
14,274
|
|
|
|
13,819
|
|
|
|
|
42,813
|
|
|
|
41,179
|
|
|
Provision for bad debts
|
|
|
89
|
|
|
|
209
|
|
|
|
|
330
|
|
|
|
551
|
|
|
Casualty losses
|
|
|
142
|
|
|
|
272
|
|
|
|
|
382
|
|
|
|
535
|
|
|
Transaction costs
|
|
|
360
|
|
|
|
221
|
|
|
|
|
1,205
|
|
|
|
1,164
|
|
|
CCRCs being re-positioned
|
|
|
120
|
|
|
|
-
|
|
|
|
|
120
|
|
|
|
-
|
|
|
Adjusted EBITDAR
|
|
$
|
29,287
|
|
|
$
|
27,376
|
|
|
|
$
|
89,817
|
|
|
$
|
80,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAR Margin
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAR
|
|
$
|
29,287
|
|
|
$
|
27,376
|
|
|
|
$
|
89,817
|
|
|
$
|
80,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
$
|
87,983
|
|
|
$
|
78,012
|
|
|
|
$
|
261,427
|
|
|
$
|
227,258
|
|
|
CCRCs being re-positioned
|
|
|
(4,860
|
)
|
|
|
-
|
|
|
|
|
(4,860
|
)
|
|
|
-
|
|
|
Adjusted revenues
|
|
$
|
83,123
|
|
|
$
|
78,012
|
|
|
|
$
|
256,567
|
|
|
$
|
227,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAR margin
|
|
|
35.2
|
%
|
|
|
35.1
|
%
|
|
|
|
35.0
|
%
|
|
|
35.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income and net income per share
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(9,963
|
)
|
|
$
|
(937
|
)
|
|
|
$
|
(14,109
|
)
|
|
$
|
(1,478
|
)
|
|
Casualty losses, net of tax
|
|
|
89
|
|
|
|
171
|
|
|
|
|
241
|
|
|
|
337
|
|
|
Transaction costs, net of tax
|
|
|
227
|
|
|
|
139
|
|
|
|
|
759
|
|
|
|
733
|
|
|
Resident lease amortization, net of tax
|
|
|
2,471
|
|
|
|
2,449
|
|
|
|
|
8,837
|
|
|
|
6,228
|
|
|
(Gain) Loss on disposition of assets, net of tax
|
|
|
(8
|
)
|
|
|
9
|
|
|
|
|
(8
|
)
|
|
|
12
|
|
|
Deferred tax asset allowance
|
|
|
7,513
|
|
|
|
-
|
|
|
|
|
7,513
|
|
|
|
-
|
|
|
CCRCs being re-positioned, net of tax
|
|
|
414
|
|
|
|
-
|
|
|
|
|
414
|
|
|
|
-
|
|
|
Adjusted net income
|
|
$
|
743
|
|
|
$
|
1,831
|
|
|
|
$
|
3,647
|
|
|
$
|
5,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share
|
|
$
|
0.03
|
|
|
$
|
0.07
|
|
|
|
$
|
0.13
|
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding
|
|
|
27,937
|
|
|
|
27,469
|
|
|
|
|
27,839
|
|
|
|
27,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted CFFO and CFFO per share
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
13,818
|
|
|
$
|
17,858
|
|
|
|
$
|
28,302
|
|
|
$
|
37,201
|
|
|
Changes in operating assets and liabilities
|
|
|
(4,688
|
)
|
|
|
(8,368
|
)
|
|
|
|
1,133
|
|
|
|
(19,017
|
)
|
|
Recurring capital expenditures
|
|
|
(970
|
)
|
|
|
(843
|
)
|
|
|
|
(2,875
|
)
|
|
|
(2,479
|
)
|
|
Casualty losses, net of tax
|
|
|
89
|
|
|
|
171
|
|
|
|
|
241
|
|
|
|
337
|
|
|
Transaction costs
|
|
|
360
|
|
|
|
221
|
|
|
|
|
1,205
|
|
|
|
1,164
|
|
|
Tax impact of Spring Meadows Transaction
|
|
|
(106
|
)
|
|
|
(106
|
)
|
|
|
|
(318
|
)
|
|
|
(318
|
)
|
|
Tax impact of lease modification
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
6,983
|
|
|
CCRCs being re-positioned, net of tax
|
|
|
394
|
|
|
|
-
|
|
|
|
|
394
|
|
|
|
-
|
|
|
Adjusted CFFO
|
|
$
|
8,897
|
|
|
$
|
8,933
|
|
|
|
$
|
28,082
|
|
|
$
|
23,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted CFFO per share
|
|
$
|
0.32
|
|
|
$
|
0.33
|
|
|
|
$
|
1.01
|
|
|
$
|
0.87
|
|
Copyright Business Wire 2013