Capital Senior Living Corporation (the “Company”) (NYSE:CSU),
one of the nation’s largest operators of senior living communities,
today announced operating and financial results for the fourth
quarter and full year 2014. Company highlights for the fourth
quarter and full year include:
Operating and Financial
Summary (see Non-GAAP Financial Measures
below)
- Revenue in the fourth quarter of 2014
was $100.2 million, an $11.2 million, or 12.6%, increase from the
fourth quarter of 2013. Revenue for full-year 2014 increased $33.6
million, or 9.6%, to $383.9 million.
- Occupancy for the Company’s
consolidated communities, excluding four communities undergoing
repositioning, lease-up or significant renovation and conversion,
was 87.9% in the fourth quarter of 2014, an increase of 110 basis
points from the fourth quarter of 2013. Same-community occupancy
was 87.5% for the fourth quarter of 2014, a 20 basis point
sequential improvement from the third quarter of 2014 and a 60
basis point improvement from the fourth quarter of 2013.
- Average monthly rent for the Company’s
consolidated communities increased 3.0% to $3,229 in the fourth
quarter of 2014, an increase of $94 per occupied unit as compared
to the fourth quarter of 2013. Same-community average monthly rent
was $3,179, a $34 per occupied unit increase from the fourth
quarter of 2013, and a 30 basis point improvement from the third
quarter of 2014.
- Adjusted EBITDAR increased 20.9% to
$36.0 million in the fourth quarter of 2014. This does not include
EBITDAR of $0.7 million related to four communities undergoing
repositioning, lease-up or significant renovation and conversion.
The Company is currently excluding the results of these four
communities from its Non-GAAP financial measures, including
Adjusted EBITDAR. The Company’s Adjusted EBITDAR margin was 37.5%
for the fourth quarter of 2014, an increase of 290 basis points
versus the fourth quarter of the prior year. Adjusted EBITDAR for
full-year 2014 increased $13.0 million, or 10.9%, to $132.6
million.
- Adjusted Cash From Facility Operations
(“CFFO”) was $13.5 million, or $0.48 per share, in the fourth
quarter of 2014, excluding the four communities previously noted,
compared to $14.6 million, or $0.52 per share, in the fourth
quarter of 2013. The fourth quarter of 2013 included tax savings
from a cost segregation study of approximately $0.12 per share. On
a comparable basis, Adjusted CFFO increased $0.08 per share, or
20.0%, in the fourth quarter of 2014 versus the fourth quarter of
2013. Adjusted CFFO for full-year 2014 was $1.51 compared to $1.54
in full-year 2013. Adjusted CFFO for full-year 2013 included tax
savings from the previously noted cost segregation study of
approximately $0.14 per share.
- The Company’s Net Loss for the fourth
quarter of 2014 was $3.9 million, or $0.13 per share, due to
non-cash amortization of resident leases of $4.8 million associated
with communities acquired by the Company in the previous 12 months.
Net Loss for full-year 2014 was $24.1 million, or $0.83 per share.
Adjusted Net Income was $1.5 million, or $0.05 per share, for the
fourth quarter of 2014, and $2.4 million, or $0.09 per share, for
full-year 2014.
- As disclosed in its press release dated
January 29, 2015, the Company acquired two senior living
communities, one in mid-December and the other in mid-January, for
a combined purchase price of approximately $32.8 million. These
communities are expected to generate incremental annual CFFO of
approximately $0.04 per share.
- Also as disclosed on January 29, 2015,
the Company sold four non-core communities in January for $36.5
million. The Company received approximately $18.0 million in net
proceeds after relieving the debt associated with the communities
and paying customary transaction and closing costs.
“Our fourth quarter results reflect the continuing momentum in
our operations. Our revenue increased at the highest rate of the
year in the fourth quarter while our expenses declined, resulting
in excellent growth in Adjusted EBITDAR and Adjusted CFFO. We also
experienced continued solid increases in occupancy and average
monthly rent,” said Lawrence A. Cohen, Chief Executive Officer of
the Company. “Our same-community occupancy increased for the fifth
consecutive quarter, gaining 20 basis points from the third quarter
of 2014 to the fourth quarter of 2014. Our same-community average
monthly rent increased by 30 basis points in the fourth quarter of
2014 as compared to the third quarter, building on the 70 basis
point sequential increases in average monthly rent in the two
previous quarters. We also continue to make steady progress on our
work to convert approximately 360 vacant independent living units
to assisted living and memory care units, with more than half of
the conversions complete at the end of 2014.
“Complementing this 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 closed on one
such community in the fourth quarter and have subsequently closed
on another community in the first quarter, and we continue to
pursue additional opportunities.
“We are successfully executing on our strategic plan, and
believe that 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
- The Company is conducting due diligence
on additional acquisitions of high-quality senior living
communities in states with extensive existing operations totaling
approximately $57 million. Subject to completion of customary
closing conditions, at least one of the acquisitions, valued at
approximately $30 million, is expected to close by the end of the
first quarter of 2015. Another acquisition is expected to close
late in the first quarter or early in the second quarter of 2015,
with the remainder expected to close in the second quarter.
- The Company executed an early rate lock
agreement on approximately $21 million of debt associated with the
previously noted $30 million acquisition expected to close in the
first quarter at a fixed interest rate of 3.55% with a 10-year
maturity.
- As disclosed on January 29, 2015, the
Company also executed early rate lock agreements on $45 million of
mortgage debt for two communities at an average fixed interest rate
of approximately 3.85% with a 10-year maturity. One of these
transactions closed on February 17 and the net proceeds were used
to pay off two short-term bridge loans totaling $14 million. The
remaining transaction is expected to close by the end of the first
quarter of 2015. After completion, the Company will have two
remaining bridge loans totaling approximately $20 million.
- As disclosed on January 29, 2015, the
Company closed a refinance of debt on a community in December 2014
that was originally set to mature in March 2017. The new mortgage
is $18.9 million with a 4.46% fixed interest rate and matures in
January 2025. The new mortgage replaced $8.4 million of fixed-rate
debt with an interest rate of 5.75%. The refinance yielded $9.3
million in incremental cash proceeds for the Company after
customary transaction and closing costs.
Financial Results - Fourth
Quarter
For the fourth quarter of 2014, the Company reported revenue of
$100.2 million, compared to revenue of $88.9 million in the fourth
quarter of 2013, an increase of 12.6%. Resident and healthcare
revenue increased from the fourth quarter of the prior year by
approximately $13.1 million, or 15.0%, mostly due to the
acquisition of 14 communities during or after the fourth quarter of
2013. As expected, community reimbursement revenue and affiliated
management revenue decreased approximately $1.9 million in the
fourth quarter of 2014 as compared to the fourth quarter of 2013.
The acquisition of three Ohio communities in which the Company
previously held a 10% interest as a joint venture on June 30, 2014,
resulted in the elimination of these two revenue items as well as
community reimbursement expense.
Operating expenses for the fourth quarter of 2014 were $59.7
million, an increase of $5.9 million from the fourth quarter of
2013, primarily due to the acquisition of 14 communities during or
after the fourth quarter of 2013.
General and administrative expenses for the fourth quarter of
2014 were $4.5 million, which includes $0.4 million of transaction
and other one-time costs. Excluding transaction and other one-time
costs, general and administrative expenses decreased $0.4 million
in the fourth quarter of 2014 as compared to the fourth quarter of
2013. As a percentage of revenues under management, general and
administrative expenses, excluding transaction and other one-time
costs, were 4.1% in the fourth quarter of 2014 as compared to 5.2%
in the fourth quarter of 2013.
The Company’s Non-GAAP financial measures exclude four
communities that are undergoing repositioning, lease-up of
higher-licensed units or significant renovation and conversion.
Adjusted EBITDAR for the fourth quarter of 2014 was
approximately $36.0 million, an increase of $6.2 million, or 20.9%,
from the fourth quarter of 2013. This does not include EBITDAR of
$0.7 million related to four communities undergoing repositioning,
lease-up or significant renovation and conversion. The Adjusted
EBITDAR margin for the fourth quarter of 2014 was 37.5%, a
record-high quarterly margin for the Company and an increase of 290
basis points from the fourth quarter 2013 of 34.6%.
The Company recorded a net loss of $3.9 million in the fourth
quarter. Excluding non-recurring or non-economic items reconciled
on the final page of this release, the Company earned adjusted net
income of $1.5 million, or $0.05 per share, in the fourth quarter
of 2014. Adjusted CFFO was $13.5 million, or $0.48 per share, in
the fourth quarter of 2014 versus $0.52 in the fourth quarter of
2013. The fourth quarter of 2013 included tax savings from a cost
segregation study of approximately $0.12 per share. On a comparable
basis, Adjusted CFFO increased $0.08 per share, or 20.0%, in the
fourth quarter of 2014 versus the fourth quarter of 2013.
Financial Results – Full
Year
The Company reported 2014 revenue of $383.9 million compared to
revenue of $350.4 million in 2013, an increase of $33.6 million, or
9.6%. Revenues in 2014 included a decrease of $3.4 million in
community reimbursement revenue and affiliated management revenue
related to the acquisition of three communities formerly held as a
joint venture, as previously noted. Resident and healthcare revenue
increased 10.7% versus the prior year. Operating expenses were
$230.5 million in 2014, an increase of $22.8 million.
General and administrative expenses in 2014 were $19.6 million
compared to $20.2 million in 2013. Excluding transaction and other
one-time costs, general and administrative expenses as a percentage
of revenues under management were approximately 4.7% in 2014
compared to 5.2% in 2013.
Adjusted EBITDAR increased 10.9% to $132.6 million in 2014, an
increase of $13.0 million. The Company’s Adjusted EBITDAR margin
was 35.9% in 2014, a 100 basis point improvement from 2013.
Adjusted CFFO for 2014 was $42.8 million, or $1.51 per share,
compared to $1.54 per share in 2013. Adjusted CFFO in 2013 included
approximately $0.14 per share in tax savings from a cost
segregation study. The Company’s net loss for 2014 was $24.1
million, or $0.83 per share. After adjusting for the non-recurring
or non-economic items reconciled on the final page of this release,
the Company earned adjusted net income of $2.4 million, or $0.09
per share.
Operating Activities
Same-community results exclude the four 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 fourth quarter of 2014 increased
1.9% versus the fourth quarter of 2013. Same-community expenses
decreased 0.9% from the fourth quarter of the prior year. Labor
costs, including benefits, increased approximately 0.4%, food costs
increased 1.4% and utilities were down 1.7% as compared to the
fourth quarter of the prior year. Same-community net operating
income increased 5.1% in the fourth quarter of 2014 as compared to
the fourth quarter of 2013.
Same-community results continued to show significant sequential
improvement in the fourth quarter of 2014. Same-community revenues
were up sequentially over the third quarter by 0.6%, following
sequential improvement over the previous quarter of 0.6% and 1.1%
in the second and third quarters, respectively. Same-community
occupancies increased 20 basis points from the third quarter to the
fourth quarter and average rent increased 30 basis points from the
third quarter to the fourth quarter.
Same-community expenses were $0.3 million lower than the third
quarter of 2014. Same-community net operating income was 2.0%
higher than the third quarter of 2014.
Capital expenditures for the fourth quarter of 2014 were $5.3
million, representing approximately $3.8 million of investment
spending and approximately $1.5 million of recurring capital
expenditures. Spending in 2014 for recurring capital expenditures
equaled $4.7 million, or approximately $400 per unit.
Balance Sheet
The Company ended the year with $51.5 million of cash and cash
equivalents, including restricted cash. During the fourth quarter
of 2014, the Company invested $4.1 million of cash as equity to
complete the acquisitions of one community and spent $5.3 million
on capital improvements. For the full year, the Company invested
$40.5 million of cash to complete 8 acquisitions and spent $18.7
million on capital improvements.
As of December 31, 2014, the Company financed its 67 owned
communities with mortgages totaling $642.5 million at interest
rates averaging 4.7%. All of the Company’s debt is at fixed
interest rates, except for six bridge loans totaling approximately
$65.2 million at December 31, 2014, at variable rates averaging
3.9%. The Company has no mortgage maturities before the third
quarter of 2015.
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 program.
Q4 2014 Conference Call
Information
The Company will host a conference call with senior management
to discuss the Company’s fourth quarter and full year financial
results. The call will be held on Thursday, February 26, 2015, at
5:00 p.m. Eastern Time. The call-in number is 913-312-0850,
confirmation code 3717091. 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 Thursday, February 26, 2015, at 8:00 p.m. Eastern
Time, until Saturday, March 7, 2015, at 8:00 p.m. Eastern Time. To
access the conference call replay, call 719-457-0820, confirmation
code 3717091. The conference call will also be made available for
playback via the Company’s corporate website,
www.capitalsenior.com, beginning February 27, 2015.
Non-GAAP Financial
Measures
Adjusted EBITDAR, Adjusted EBITDAR Margin, Adjusted Net Income
and Adjusted CFFO are financial measures of operating performance
that are not calculated in accordance with U.S. generally accepted
accounting principles (“GAAP”). Non-GAAP financial measures may
have material limitations in that they do not reflect all of the
amounts associated with our results of operations as determined in
accordance with GAAP. As a result, these non-GAAP financial
measures should not be considered a substitute for, nor superior
to, financial results and measures determined or calculated in
accordance with GAAP. The Company believes that these non-GAAP
measures are useful in identifying trends in day-to-day performance
because they exclude items that are of little or no significance to
operations and provide indicators to management of progress in
achieving optimal operating performance. In addition, these
measures are used by many research analysts and investors to
evaluate the performance and the value of companies in the senior
living industry. The Company strongly urges you to review the
reconciliation of net income from operations to Adjusted EBITDAR
and Adjusted EBITDAR Margin and the reconciliation of net loss to
Adjusted Net Income and Adjusted CFFO, 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 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 operates 114 senior living communities in geographically
concentrated regions with an aggregate capacity of approximately
15,000 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, 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.
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED BALANCE SHEETS (in thousands, except per
share data) December 31,
2014 2013
ASSETS Current assets: Cash and cash equivalents $
39,209 $ 13,611 Restricted cash 12,241 11,425 Accounts receivable,
net 5,903 3,752 Accounts receivable from affiliates 5 416 Federal
and state income taxes receivable — 5,123 Deferred taxes 460 845
Assets held for sale 35,761 — Property tax and insurance deposits
12,198 11,036 Prepaid expenses and other
6,797
6,605 Total current assets
112,574 52,813 Property and equipment, net 747,243 651,738
Investments in unconsolidated joint ventures — 1,010 Other assets,
net
37,884 39,988
Total assets
$ 897,701
$ 745,549 LIABILITIES
AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable
$ 2,540 $ 3,813 Accounts payable to affiliates 7 1 Accrued expenses
32,154 29,321 Notes payable of assets held for sale 15,076 —
Current portion of notes payable 33,664 11,918 Current portion of
deferred income 14,603 11,215 Current portion of capital lease and
financing obligations 1,054 948 Federal and state income taxes
payable 219 — Customer deposits
1,499
1,489 Total current liabilities 100,816
58,705 Deferred income 15,949 18,021 Capital lease and financing
obligations, net of current portion 40,016 41,093 Deferred taxes
460 845 Other long-term liabilities 1,426 1,559 Notes payable, net
of current portion 597,860 467,376 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 29,097 and 28,845 in 2014 and 2013,
respectively
294 292 Additional paid-in capital 151,069 143,721 Retained
(deficit) earnings (9,255 ) 14,871 Treasury stock, at cost – 350
shares in 2014 and 2013
(934 )
(934 ) Total shareholders' equity
141,174 157,950
Total liabilities and shareholders' equity
$
897,701 $ 745,549
CAPITAL SENIOR
LIVING CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS (in thousands, except per share data)
Three Months EndedDecember
31,
Year EndedDecember
31,
2014 2013
2014 2013
Revenues: Resident and health care revenue $ 100,160 $
87,069 $ 380,400 $ 343,478 Affiliated management services revenue —
211 415 797 Community reimbursement revenue
—
1,655 3,110
6,087 Total revenues 100,160
88,935 383,925 350,362 Expenses:
Operating expenses (exclusive of facility
lease expense and depreciation and amortization expense shown
below)
59,744
53,888
230,495
207,744
General and administrative expenses 4,485 5,209 19,622 20,238
Facility lease expense 14,808 14,173 59,332 56,986 Provision for
bad debts 200 167 717 497 Stock-based compensation expense 1,586
1,164 7,262 4,322 Depreciation and amortization 13,880 10,055
49,487 43,238 Community reimbursement expense
—
1,655 3,110
6,087 Total expenses
94,703 86,311
370,025 339,112
Income from operations 5,457 2,624 13,900 11,250 Other income
(expense): Interest income 12 13 52 151 Interest expense (8,476 )
(6,446 ) (31,261 ) (23,767 ) Write-off of deferred loan costs and
prepayment premiums (989 ) — (7,968 ) — Joint venture equity
investment valuation gain — — 1,519 — Gain on disposition of
assets, net 795 1,442 784 1,454 Equity in earnings of
unconsolidated joint ventures, net — 57 105 133 Write-down of
assets held for sale (561 ) — (561 ) — Other income
1 6
23 34 Loss before
provision for income taxes (3,761 ) (2,304 ) (23,407 ) (10,745 )
Provision for income taxes
(140 )
(91 ) (719
) (5,759 ) Net loss
$ (3,901 ) $
(2,395 ) $
(24,126 ) $
(16,504 ) Per share data: Basic
net loss per share
$ (0.13 )
$ (0.08 ) $
(0.83 ) $ (0.58
) Diluted net loss per share
$
(0.13 ) $ (0.08
) $ (0.83 )
$ (0.58 ) Weighted average
shares outstanding — basic
28,387
27,949 28,301
27,815 Weighted average shares outstanding —
diluted
28,387
27,949 28,301
27,815 Comprehensive loss
$
(3,901 ) $
(2,395 ) $
(24,126 ) $
(16,504 ) CAPITAL
SENIOR LIVING CORPORATION CONSOLIDATED STATEMENTS OF CASH
FLOWS (in thousands) Year Ended December
31, 2014
2013 Operating Activities
Net loss
$
(24,126
)
$
(16,504
)
Adjustments to reconcile net loss to net cash provided by operating
activities: Depreciation and amortization 49,487 43,238
Amortization of deferred financing charges 1,361 1,100 Amortization
of deferred lease costs and lease intangibles 1,230 1,164 Deferred
income 1,316 1,053 Deferred income taxes — 10,793 Write-off of
deferred loan costs and prepayment premiums 7,968 — Joint venture
equity investment valuation gain (1,519 ) — Gain on disposition of
assets, net (784 ) (1,454 ) Equity in earnings of unconsolidated
joint ventures, net (105 ) (133 ) Write-down of assets held for
sale 561 — Provision for bad debts 717 497 Stock-based compensation
expense 7,262 4,322 Changes in operating assets and liabilities:
Accounts receivable (2,868 ) 980 Accounts receivable from
affiliates 411 337 Property tax and insurance deposits (1,162 ) 406
Prepaid expenses and other (192 ) (1,847 ) Other assets (163 )
(1,745 ) Accounts payable (1,267 ) (3,166 ) Accrued expenses 2,833
4,876 Federal and state income taxes receivable/payable 5,342
(1,222 ) Customer deposits
10
(51 ) Net cash provided by operating
activities 46,312 42,644
Investing Activities
Capital expenditures
(18,742
)
(13,562
)
Cash paid for acquisitions (160,105 ) (150,391 ) Proceeds from
SHPIII/CSL Transaction 2,532 — Proceeds from disposition of assets
796 1,460 Contributions to joint ventures — — Distributions from
joint ventures
102
197 Net cash used in investing activities
(175,417 ) (162,296 )
Financing Activities
Proceeds from notes payable
300,820
140,237
Repayments of notes payable (140,950 ) (23,539 ) Cash payments for
capital lease and financing obligations (971 ) (871 ) Increase in
restricted cash (816 ) (1,246 ) Cash proceeds from the issuance of
common stock 170 3,163 Excess tax benefits on stock options
exercised (82 ) (1,625 ) Deferred financing charges paid
(3,468 ) (1,593
) Net cash provided by financing activities
154,703 114,526
Increase (Decrease) in cash and cash equivalents 25,598 (5,126 )
Cash and cash equivalents at beginning of year
13,611 18,737 Cash
and cash equivalents at end of year
$
39,209 $ 13,611
Supplemental Disclosures Cash paid during the year
for: Interest
$ 28,856
$ 21,953 Income taxes
$ 724 $
702 Capital Senior Living
Corporation Supplemental Information
Average
Communities Resident Capacity Average Units
Q4 14 Q4 13 Q4 14 Q4 13 Q4 14
Q4 13 Portfolio Data I. Community Ownership /
Management Consolidated communities Owned 67 59 8,783
7,781 6,895 5,727 Leased 50 50 6,333 6,298 4,984 5,026 Joint
Venture communities (equity method) — 3 — 674
— 435 Total 117 112 15,116 14,753 11,879
11,188 Independent living 7,597 7,602 6,134 6,180 Assisted
living 7,519 6,981 5,745 5,003 Skilled Nursing — 170
— 5 Total 15,116 14,753 11,879 11,188
II. Percentage of Operating Portfolio Consolidated
communities Owned 57.3 % 52.7 % 58.1 % 52.7 % 58.0 % 51.2 % Leased
42.7 % 44.6 % 41.9 % 42.7 % 42.0 % 44.9 % Joint venture communities
(equity method) — 2.7 % — 4.6 % — 3.9 % Total
100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Independent
living 50.3 % 51.5 % 51.6 % 55.2 % Assisted living 49.7 % 47.3 %
48.4 % 44.7 % — 1.2 % — 0.0 % Total 100.0 % 100.0 %
100.0 % 100.0 %
Capital Senior Living
Corporation Supplemental Information (excludes 4 communities
being repositioned/leased up)
Selected Operating Results Q4 14 Q4 13
I. Owned communities Number of communities 64 56
Resident capacity 8,174 7,002 Unit capacity 6,398 5,226 Financial
occupancy (1) 89.1 % 87.3 % Revenue (in millions) 51.8 38.9
Operating expenses (in millions) (2) 29.3 22.1 Operating margin 44
% 43 % Average monthly rent 3,030 2,845
II. Leased
communities Number of communities 49 49 Resident capacity 6,107
6,072 Unit capacity 4,843 4,840 Financial occupancy (1) 86.5 % 86.3
% Revenue (in millions) 44.0 43.3 Operating expenses (in millions)
(2) 21.8 21.9 Operating margin 51 % 49 % Average monthly rent 3,499
3,452
III. Consolidated communities Number of communities
113 105 Resident capacity 14,281 13,074 Unit capacity 11,240 10,066
Financial occupancy (1) 87.9 % 86.8 % Revenue (in millions) 95.8
82.2 Operating expenses (in millions) (2) 51.1 44.0 Operating
margin 47 % 46 % Average monthly rent 3,229 3,135
IV.
Communities under management Number of communities 113 108
Resident capacity 14,281 13,748 Unit capacity 11,240 10,500
Financial occupancy (1) 87.9 % 87.0 % Revenue (in millions) 95.8
86.4 Operating expenses (in millions) (2) 51.0 46.3 Operating
margin 47 % 46 % Average monthly rent 3,229 3,155
V. Same
communities under management Number of communities 102 102
Resident capacity 13,086 13,056 Unit capacity 10,355 10,352
Financial occupancy (1) 87.5 % 86.9 % Revenue (in millions) 86.4
84.8 Operating expenses (in millions) (2) 45.3 45.5 Operating
margin 48 % 46 % Average monthly rent 3,179 3,145
VI. General
and Administrative expenses as a percent of Total Revenues under
Management Fourth Quarter (3) 4.1 % 5.2 % Fiscal Year (3) 4.5 %
5.2 %
VII. Consolidated Mortgage Debt Information (in thousands,
except for interest rates) (excludes insurance premium and
auto financing) Total fixed rate mortgage debt 577,310 453,641
Total variable rate mortgage debt 65,222 22,522 Weighted average
interest rate 4.69 % 5.25 % (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 and conversion costs incurred by the Company.
CAPITAL SENIOR LIVING CORPORATION NON-GAAP
RECONCILIATIONS (In thousands, except per share data)
Three Months Ended December 31, Fiscal Year
Ended December 31, 2014 2013 2014
2013 Adjusted EBITDAR Net income from operations $ 5,457 $
2,624 $ 13,900 $ 11,250 Depreciation and amortization expense
13,880 10,055 49,487 43,238 Stock-based compensation expense 1,586
1,164 7,262 4,322 Facility lease expense 14,808 14,173 59,332
56,986 Provision for bad debts 200 167 717 497 Casualty losses 166
161 748 543 Transaction and conversion costs 549 660 2,648 1,866
Communities being repositioned/leased up (683 ) 739
(1,494 ) 859 Adjusted EBITDAR $ 35,963
$ 29,743 $ 132,600 $ 119,561
Adjusted EBITDAR Margin Adjusted EBITDAR $ 35,963 $ 29,743 $
132,600 $ 119,561 Total revenues $ 100,160 $ 88,935 $
383,925 $ 350,362 Communities being repositioned/leased up
(4,308 ) (2,987 ) (14,381 ) (7,847 ) Adjusted
revenues $ 95,852 $ 85,948 $ 369,544 $ 342,515
Adjusted EBITDAR margin
37.5 % 34.6 % 35.9 % 34.9 % Adjusted
net income and net income per share Net loss $ (3,901 ) $ (2,395 )
$ (24,126 ) $ (16,504 ) Casualty losses, net of tax 105 101 471 342
Transaction and conversion costs, net of tax 346 416 1,668 1,176
Resident lease amortization, net of tax 3,013 1,937 10,460 10,774
Write-off of deferred loan costs and prepayment premium, net of tax
623 — 5,020 — Write-down of assets held for sale, net of tax 353 —
353 — Joint venture equity investment valuation gain, net of tax —
— (957 ) — Gain on disposition of assets, net of tax (501 ) (908 )
(494 ) (916 ) Deferred tax asset valuation allowance 993 1,297
8,456 8,810 Communities being repositioned/leased up, net of tax
429 756 1,578
1,170 Adjusted net income $ 1,460 $ 1,204 $
2,429 $ 4,852 Adjusted
net income per share $ 0.05 $ 0.04 $ 0.09 $
0.17 Diluted shares outstanding 28,390 27,966 28,305
27,871 Adjusted CFFO and Adjusted CFFO per share Net loss $
(3,901 ) $ (2,395 ) $ (24,126 ) $ (16,504 ) Non-cash charges, net
17,803 17,037 67,494 60,581 Recurring capital expenditures (1,101 )
(991 ) (4,257 ) (3,866 ) Casualty losses 166 161 748 749
Transaction and conversion costs 549 660 2,648 1,866 Tax impact of
Spring Meadows Transaction (106 ) (106 ) (424 ) (424 ) Communities
being repositioned/leased up, net of tax 138
237 746 631 Adjusted CFFO $
13,548 $ 14,603 $ 42,829 $ 43,033
Adjusted CFFO per share $ 0.48 $
0.52 $ 1.51 $ 1.54
Capital Senior Living CorporationCarey P. Hendrickson,
972-770-5600Chief Financial Officer
Capital Senior Living (NYSE:CSU)
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From Mar 2024 to Apr 2024
Capital Senior Living (NYSE:CSU)
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From Apr 2023 to Apr 2024