CSU
$3.63
Capital Senior Living
($.27)
(6.92%)
Earnings Details
3rd Quarter September 2019
Thursday, November 07, 2019 5:00:00 AM
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Summary

Capital Senior Living (CSU) Recent Earnings

Capital Senior Living (CSU) reported a 3rd Quarter September 2019 loss of $0.40 per share on revenue of $111.1 million. The consensus estimate was a loss of $0.28 per share on revenue of $113.8 million. Revenue fell 3.9% compared to the same quarter a year ago.

Capital Senior Living Corp provides senior living services to the elderly, including independent living, assisted living, skilled nursing and home care services.

Results
Reported Earnings
($0.40)
Earnings Whisper
-
Consensus Estimate
($0.28)
Reported Revenue
$111.1 Mil
Revenue Estimate
$113.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Capital Senior Living Corporation Reports 2019 Third Quarter Results

DALLAS, Nov. 07, 2019 (GLOBE NEWSWIRE) -- Capital Senior Living Corporation (the “Company”) (NYSE: CSU), one of the nation’s largest operators of senior housing communities, announced today operating and financial results for the third quarter ended September 30, 2019.

Third Quarter 2019 Highlights

  • Total move-ins for the third quarter increased 7% sequentially over the second quarter
  • Physical occupancy increased in August, September and October, which is expected to provide sequential same store occupancy improvement in the fourth quarter over the third quarter
  • On September 10, Brandon Ribar joined the company as Chief Operating Officer, bringing significant operational experience in healthcare and real estate
  • On October 1, the Company sold two non-core independent living communities for approximately $64.8 million, generating $14.8 million in net cash proceeds and eliminating $44.4 million of mortgage debt
  • On October 22, the Company entered into an agreement with HCP for the early termination of an underperforming nine-community master lease originally scheduled to mature in October 2020. The elimination of the 9 communities will result in a $13.8 million reduction in annual lease expense and annual CFFO improvement of approximately $3.1 million

“During the third quarter, we continued to transform Capital Senior Living by investing in our product, people and value proposition.  While our third quarter results reflect these investments and lower revenue from longstanding negative occupancy trends, we firmly believe that we are exiting the trough period and our turnaround plan has taken hold as occupancy trends are now improving.  We achieved 7% growth in sequential move-ins and, for the first time since mid-2018, move-ins are outpacing move-outs.  We expect to build on these improvements as we continue executing our plan,” said Kimberly S. Lody, President and Chief Executive Officer. 

“We also welcomed Brandon Ribar as our Chief Operating Officer during the quarter.  Brandon’s impressive operational and financial track record in the senior housing and skilled nursing sectors will be instrumental to the continued execution of our turnaround plan.  Our strategy is centered on establishing a foundation for long-term value creation.  We are confident that the transformative changes to improve the quality of our people, processes and product have established the fundamentals necessary for improved performance in 2020 and beyond,” Lody concluded.  

Operating and Financial Summary (all amounts in this operating and financial summary exclude two communities 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 third quarter of 2019, including all communities, was $111.1 million, a $4.5 million, or 3.9%, decrease, from the third quarter of 2018.  
    • Revenue for same communities, which excludes two communities undergoing lease-up or significant renovation and conversion and the Company’s two communities impacted by Hurricane Harvey, was $108.6 million in the third quarter of 2019, a decrease of 3.8%, versus the third quarter of 2018.
    • Occupancy for all communities was 81.3%, a decline of 120 basis points from the second quarter of 2019, and a decrease of 280 basis points from the third quarter of 2018.  Occupancy for same communities was 82.3% in the third quarter of 2019, a decrease of 130 basis points from the second quarter of 2019, and a decrease of 340 basis points when compared with the third quarter of 2018.
    • Average monthly rent for all communities was $3,632, an increase of $4 per occupied unit, or 0.1%, from the third quarter of 2018. Average monthly rent for same communities was $3,632, an increase of $7 per occupied unit, or 0.2%, from the third quarter of 2018.  Average monthly rent in the third quarter of 2019 was flat with the second quarter of 2019 for all communities and same communities.
  • Income (loss) from operations, including all communities, was $(8.1) million in the third quarter of 2019, versus $1.7 million in the third quarter of 2018.
  • The Company’s Net Loss for the third quarter of 2019, including all communities, was $20.7 million.
    • Excluding items noted and reconciled on the final page of this release, the Company’s adjusted net loss was $12.3 million in the third quarter of 2019.
    • Adjusted EBITDAR was $27.3 million in the third quarter of 2019 compared with $36.1 million in the comparable quarter last year. 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 $(1.2) million in the third quarter of 2019, compared with $8.1 million in the third quarter of 2018.          

Recent Transactions

Carey P. Hendrickson, the Company’s Chief Financial Officer, said: “We are strengthening our financial foundation through the sale of two non-core communities and an accretive early termination of a master lease.  We believe that together these transactions work to optimize our asset portfolio and improve our financial position. Consistent with our normal business practices, the Company continues to be engaged in various similar activities, including the marketing of a limited number of additional assets for potential divestiture and the refinancing of existing owned assets.”

Sale of Senior Living Communities

On October 1, 2019, the Company closed on the sale of two non-core communities located in Springfield, Missouri, and Peoria, Illinois, at a purchase price of $64.8 million.  The transaction resulted in approximately $14.8 million in net cash proceeds.  The two communities consisted of 314 independent living units and had CFFO contribution of $2.5 million in 2019 year-to-date. With the sale of these two communities, the Company also eliminated $44.4 million of mortgage debt and avoided significant near-term capital expenditures.

Transition of Lease Portfolio

On October 22, 2019, the Company entered into an agreement for the early termination of an underperforming nine-property master lease with HCP. The nine communities are part of a triple net master lease scheduled to mature in October 2020.  Four of the communities will transition to new operators as early as January 15, 2020, and five communities will be marketed for sale with closings expected in the first half of 2020.  These nine communities currently have approximately $13.8 million of annual cash lease expense that will be eliminated upon completion of the transitions and sales, with annual CFFO improvement of approximately $3.1 million.  The Company will pay an early termination fee of $1.0 million to HCP upon the completion of the transitions.  The Company will have one remaining six-property master lease with HCP that matures in 2026 which is unaffected by this transaction.

Financial Results - Third Quarter

For the third quarter of 2019, the Company reported revenue of $111.1 million, compared with revenue of $115.7 million in the third quarter of 2018. Revenue for consolidated communities excluding the two communities undergoing significant renovation and conversion, was $109.8 million, a decrease of 3.9%, in the third quarter of 2019 when compared with the third quarter of 2018.

Operating expenses for the third quarter of 2019 were $80.4 million, an increase of $4.2 million, or 5.5%, from the third quarter of 2018.  Operating expenses in the third quarter of 2019 included a $0.1 million business interruption insurance credit related to the Company’s two Houston communities impacted by Hurricane Harvey compared to a $1.3 million credit in the third quarter of 2018.  Business interruption coverage ended in July 2019.  The third quarter of 2019 also includes a $1.0 million insurance charge related to certain casualty claims.

General and administrative expenses for the third quarter of 2019 were $7.6 million versus $5.6 million in the third quarter of 2018. Excluding transaction and conversion costs in both periods (including $0.7 million related to separation and placement costs associated with the Company’s CEO and COO positions), general and administrative expenses increased $1.6 million in the third quarter of 2019 versus the third quarter of 2018, mostly related to higher healthcare claims expense.  As a percentage of revenues under management, general and administrative expenses, excluding transaction and conversion costs, were 5.6% in the third quarter of 2019.

Loss from operations for the third quarter of 2019 was $8.1 million.  This compares with income from operations of $1.7 million in the third 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).

Adjusted EBITDAR for the third quarter of 2019 was $27.3 million, compared with $36.1 million in the third quarter of 2018. Adjusted CFFO was $(1.2) million in the third quarter of 2019 and $8.1 million in the third quarter of 2018.  CFFO for the third quarter of 2019 includes a negative net impact of $0.5 million related to the Company’s adoption of the new lease accounting standard (“ASC 842”) effective January 1, 2019.  There was no impact on Adjusted EBITDAR related to the adoption of the new lease standard.

Operating Activities

Same community results exclude two previously noted communities undergoing lease-up or significant renovation and conversion, as well as the two Houston communities impacted by Hurricane Harvey which are also in lease-up. Same-community results also exclude certain conversion costs.

Same-community revenue in the third quarter of 2019 decreased 3.8% versus the third quarter of 2018.

Same-community operating expenses increased 2.4% in the third quarter of 2019 versus the third quarter of 2018.  Same store labor costs, including benefits, increased 0.2% in the third quarter, food costs decreased 1.1% and utilities decreased 0.1%.  Same-community net operating income decreased 15.1% in the third quarter of 2019 when compared with the same period a year ago.

Capital expenditures were $6.5 million for the third quarter of 2019.

Balance Sheet

The Company ended the third quarter with $20.8 million of cash and cash equivalents, including restricted cash. As of September 30, 2019, the Company financed its owned communities with mortgages totaling $967.4 million, at interest rates averaging 4.8%. The majority of the Company’s debt is at fixed interest rates excluding two bridge loans totaling approximately $76 million, one of which matures in July 2020 and the other in October 2021, and approximately $50 million of long-term variable rate debt under the Company’s Master Credit Facility. The earliest maturity date for the Company’s fixed-rate debt is in 2022.

The Company’s cash on hand and cash flow from operations are expected to be sufficient for working capital and to fund the Company’s capital expenditures.

Q3 2019 Conference Call Information

The Company will host a conference call with senior management to discuss the Company’s 2019 third quarter financial results on Thursday, November 7, 2019, at 10:00 a.m. Eastern Time. To participate, dial 323-794-2093, and use confirmation code 4150059. A link to a simultaneous webcast of the teleconference will be available at www.capitalsenior.com.

For the convenience of the Company’s shareholders and the public, the conference call will be recorded and available for replay starting November 7, 2019 at 1:00 p.m. Eastern Time, until November 15, 2018 at 1:00 p.m. Eastern Time.  To access the conference call replay, call 719-457-0820, confirmation code 4150059.  The conference call will also be made available for playback via the Company’s corporate website at https://www.capitalsenior.com/investor-relations/conference-calls/

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 Company management, research analysts and investors to value companies in the senior living industry. Since Adjusted EBITDAR excludes interest expense and rent expense, it allows Company 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 the reconciliation of net loss to Adjusted EBITDAR and the reconciliation of net income/(loss) to Adjusted Net Income/(Loss) and Adjusted CFFO, along with the Company’s consolidated balance sheets, statements of operations, and statements of cash flows. This is included on the last page of this press release.

About the Company

Dallas-based Capital Senior Living Corporation is one of the nation’s largest operators of independent living, assisted living and memory care communities for senior adults. The Company’s 128 communities are home to nearly 11,800 residents across 23 states and provide compassionate, resident-centric service and care as well as engaging programming.  Capital Senior Living offers seniors the freedom and opportunity to successfully, comfortably and happily age in place.  For more information, visit www.capitalsenior.com or connect with the Company on Facebook.

Safe Harbor

The forward-looking statements in this release are subject to certain risks and uncertainties that could cause the Company’s actual results and financial condition to differ materially, including, but not limited to, the Company’s ability to generate sufficient cash flows from operations, additional proceeds from debt refinancings, and proceeds from the sale of assets to satisfy its short and long-term debt and lease obligations and to fund the Company’s capital improvement projects to expand, redevelop, and/or reposition its senior living communities; the Company’s ability to obtain additional capital on terms acceptable to it; the Company’s ability to extend or refinance its existing debt as such debt matures; the Company’s compliance with its debt and lease agreements, including certain financial covenants, and the risk of cross-default in the event such non-compliance occurs; the Company’s ability to complete acquisitions and dispositions upon favorable terms or at all; the risk of oversupply and increased competition in the markets which the Company operates; the risk of increased competition for skilled workers due to wage pressure and changes in regulatory requirements; the departure of the Company’s key officers and personnel; the cost and difficulty of complying with applicable licensure, legislative oversight, or regulatory changes; the risks associated with a decline in economic conditions generally; the adequacy and continued availability of the Company’s insurance policies and the Company’s ability to recover any losses it sustains under such policies; changes in accounting principles and interpretations; and the other risks and factors identified from time to time in the Company’s reports filed with the Securities and Exchange Commission.

For information about Capital Senior Living, visit www.capitalsenior.com.

Investor Contact Carey P. Hendrickson, Chief Financial Officer, at 972-770-5600 or chendrickson@capitalsenior.com.

Press Contact Susan J. Turkell at 303-766-4343 or sturkell@capitalsenior.com.


CAPITAL SENIOR LIVING CORPORATION

CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)

 September 30,
2019
  December 31,
2018
 
ASSETS       
Current assets:       
Cash and cash equivalents$7,703  $31,309 
Restricted cash 13,073   13,011 
Accounts receivable, net 8,785   10,581 
Federal and state income taxes receivable 152   152 
Assets held for sale 24,366    
Property tax and insurance deposits 12,482   13,173 
Prepaid expenses and other 5,970   5,232 
Total current assets 72,531   73,458 
Property and equipment, net 978,224   1,059,049 
Operating lease right-of-use assets, net 231,910    
Deferred taxes, net 152   152 
Other assets, net 11,383   16,485 
Total assets$1,294,200  $1,149,144 
LIABILITIES AND SHAREHOLDERS EQUITY       
Current liabilities:       
Accounts payable$4,413  $9,095 
Accrued expenses 42,311   41,880 
Current portion of notes payable, net of deferred loan costs 126,179   14,342 
Current portion of deferred income 6,329   14,892 
Current portion of financing obligations 1,718   3,113 
Current portion of operating lease liabilities 46,801    
Federal and state income taxes payable 303   406 
Customer deposits 1,265   1,302 
Total current liabilities 229,319   85,030 
Deferred income    8,151 
Financing obligations, net of current portion 10,132   45,647 
Operating lease liabilities, net of current portion 214,950    
Other long-term liabilities    15,643 
Notes payable, net of deferred loan costs and current portion 836,589   959,408 
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 – 31,486 and 31,273 in 2019 and 2018, respectively 320   318 
Additional paid-in capital 189,435   187,879 
Retained deficit (183,115)  (149,502)
Treasury stock, at cost – 494 shares in 2019 and 2018 (3,430)  (3,430)
Total shareholders’ equity 3,210   35,265 
Total liabilities and shareholders’ equity$1,294,200  $1,149,144 


CAPITAL SENIOR LIVING CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited, in thousands, except per share data)  

 Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
 2019  2018  2019  2018 
Revenues:               
Resident revenue$111,110  $115,650  $338,412  $344,920 
Expenses:               
Operating expenses (exclusive of facility lease expense and depreciation and amortization expense shown below) 80,394   76,195   230,229   220,863 
General and administrative expenses 7,554   5,589   21,766   17,323 
Facility lease expense 14,233   14,077   42,706   42,515 
Stock-based compensation expense 898   2,095   1,558   6,603 
Depreciation and amortization expense 16,136   15,998   48,085   46,891 
Total expenses 119,215   113,954   344,344   334,195 
Income (loss) from operations (8,105)  1,696   (5,932)  10,725 
Other income (expense):               
Interest income 59   42   173   117 
Interest expense (12,562)  (12,705)  (37,728)  (37,771)
Write-off of deferred loan costs       (97)   
Write-down of assets held for sale       (2,340)   
Gain on disposition of assets, net       38   10 
Other income 1   7   8   2 
Loss before provision for income taxes (20,607)  (10,960)  (45,878)  (26,917)
Provision for income taxes (124)  (129)  (371)  (388)
Net loss$(20,731) $(11,089) $(46,249) $(27,305)
Per share data:               
Basic net loss per share$(0.68) $(0.37) $(1.53) $(0.92)
Diluted net loss per share$(0.68) $(0.37) $(1.53) $(0.92)
Weighted average shares outstanding — basic 30,324   29,877   30,236   29,779 
Weighted average shares outstanding — diluted 30,324   29,877   30,236   29,779 
Comprehensive loss$(20,731) $(11,089) $(46,249) $(27,305)


CAPITAL SENIOR LIVING CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(unaudited, in thousands)

 Common Stock  Additional
Paid-In
  Retained  Treasury     
 Shares  Amount  Capital  Deficit  Stock  Total 
   
Balance at December 31, 2017 30,505  $310  $179,459  $(95,906) $(3,430) $80,433 
Restricted stock awards (cancellations), net 628   6   (6)         
Stock-based compensation       1,949         1,949 
Net loss          (7,156)     (7,156)
Balance at March 31, 2018 31,133  $316  $181,402  $(103,062) $(3,430) $75,226 
Restricted stock awards (cancellations), net 45   1   (1)         
Stock-based compensation       2,559         2,559 
Net loss          (9,060)     (9,060)
Balance at June 30, 2018 31,178  $317  $183,960  $(112,122) $(3,430) $68,725 
Restricted stock awards (cancellations), net 1   1   (1)         
Stock-based compensation       2,095         2,095 
Net loss          (11,089)     (11,089)
Balance at September 30, 2018 31,179  $318  $186,054  $(123,211) $(3,430) $59,731 
                        
 Balance at December 31, 2018 31,273  $318  $187,879  $(149,502) $(3,430) $35,265 
Adoption of ASC 842          12,636      12,636 
Restricted stock awards (cancellations), net (150)  (2)  2          
Stock-based compensation       (978)        (978)
Net loss          (12,984)     (12,984)
 Balance at March 31, 2019 31,123  $316  $186,903  $(149,850) $(3,430) $33,939 
Restricted stock awards (cancellations), net 346   4   (4)         
Stock-based compensation       1,638         1,638 
Net loss          (12,534)     (12,534)
 Balance at June 30, 2019 31,469  $320  $188,537  $(162,384) $(3,430) $23,043 
Restricted stock awards, net 17                
Stock-based compensation       898         898 
Net loss          (20,731)     (20,731)
 Balance at September 30, 2019 31,486  $320  $189,435  $(183,115) $(3,430) $3,210 


CAPITAL SENIOR LIVING CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)

 Nine Months Ended September 30, 
 2019  2018 
Operating Activities       
Net loss$(46,249) $(27,305)
Adjustments to reconcile net loss to net cash provided by operating activities:       
Depreciation and amortization 48,085   46,891 
Amortization of deferred financing charges 1,237   1,281 
Amortization of deferred lease costs and lease intangibles    638 
Amortization of lease incentives    (1,426)
Deferred income 790   (712)
Operating lease expense adjustment (4,285)   
Write-off of deferred loan costs 97    
Write-down of assets held for sale 2,340    
Gain on disposition of assets, net (38)  (10)
Provision for bad debts 2,182   2,254 
Stock-based compensation expense 1,558   6,603 
Changes in operating assets and liabilities:       
Accounts receivable (385)  (2,076)
Property tax and insurance deposits 690   1,935 
Prepaid expenses and other (2,001)  1,685 
Other assets (373)  1,267 
Accounts payable (4,683)  1,205 
Accrued expenses 430   (3,073)
Other liabilities    (1,908)
Federal and state income taxes receivable/payable (103)  (84)
Deferred resident revenue (6)  (198)
Customer deposits (38)  (96)
Net cash (used in)/provided by operating activities (752)  26,871 
Investing Activities       
Capital expenditures (14,271)  (17,954)
Proceeds from disposition of assets 4,888   22 
Net cash used in investing activities (9,383)  (17,932)
Financing Activities       
Proceeds from notes payable 5,268   1,740 
Repayments of notes payable (16,884)  (16,844)
Cash payments for financing obligations (1,095)  (2,054)
Deferred financing charges paid (698)  (87)
Net cash used in financing activities (13,409)  (17,245)
Decrease in cash and cash equivalents (23,544)  (8,306)
Cash and cash equivalents and restricted cash at beginning of period 44,320   31,024 
Cash and cash equivalents and restricted cash at end of period$20,776  $22,718 
Supplemental Disclosures       
Cash paid during the period for:       
Interest$35,723  $36,345 
Income taxes$505  $546 


Capital Senior Living Corporation 
Supplemental Information 
 
     Average  
 Communities Resident Capacity Average Units
 Q3 19 Q3 18 Q3 19 Q3 18 Q3 19 Q3 18
Portfolio Data 
I. Community Ownership / Management 
Consolidated communities 
Owned82  83  10,629  10,767  8,168  8,224 
Leased46  46  5,756  5,756  4,389  4,413 
Total128  129  16,385  16,523  12,557  12,637 
                  
Independent living      6,879  6,879  4,725  5,007 
Assisted living      9,506  9,644  7,832  7,630 
Total      16,385  16,523  12,557  12,637 
                  
II. Percentage of Operating Portfolio                 
Consolidated communities                 
Owned64.1% 64.3% 64.9% 65.2% 65.0% 65.1%
Leased35.9% 35.7% 35.1% 34.8% 35.0% 34.9%
Total100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
                  
Independent living      42.0% 41.6% 37.6% 39.6%
Assisted living      58.0% 58.4% 62.4% 60.4%
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   
  Q3 19 Q3 18
 I. Owned communities   
  Number of communities  78    79 
  Resident capacity  10,110    10,248 
  Unit capacity  7,724    7,779 
  Financial occupancy (1)84.2% 87.0%
  Revenue (in millions)68.9  71.6 
  Operating expenses (in millions) (2)48.8  48.1 
  Operating margin (2)29% 33%
  Average monthly rent  3,533    3,525 
 II. Leased communities   
  Number of communities  46    46 
  Resident capacity  5,756    5,756 
  Unit capacity  4,389    4,413 
  Financial occupancy (1)78.8% 83.2%
  Revenue (in millions)39.6  42.0 
  Operating expenses (in millions) (2)26.0  25.7 
  Operating margin (2)34% 39%
  Average monthly rent  3,818    3,817 
 III. Consolidated communities   
  Number of communities  124    125 
  Resident capacity  15,866    16,004 
  Unit capacity    12,114    12,192 
  Financial occupancy (1)82.3% 85.6%
  Revenue (in millions)108.6  113.6 
  Operating expenses (in millions) (2)74.8  73.8 
  Operating margin (2)31% 35%
  Average monthly rent  3,632    3,628 
 IV. Same-store communities     
  Number of communities  124  124 
  Resident capacity  15,866   15,866 
  Unit capacity   12,114   12,114 
  Financial occupancy (1)82.3% 85.7%
  Revenue (in millions)108.6  112.8 
  Operating expenses (in millions) (2)74.8  73.1 
      Operating margin (2)31% 35%
      Average monthly rent  3,632   3,625 
 V. General and Administrative expenses as a percent of Total Revenues under Management     
  Third quarter (3)5.6% 4.0%
  Year to date (3)5.3% 4.4%
 VI. Consolidated Mortgage Debt Information (in thousands, except interest rates)   
   (excludes insurance premium financing)   
  Total fixed rate mortgage debt  841,047    873,992 
  Total variable rate mortgage debt  126,322    76,319 
  Weighted average interest rate4.84% 4.78%
      
   
 (1) Financial occupancy represents actual days occupied divided by total number of available days during the quarter.
 (2) Excludes management fees, provision for bad debts and transaction and conversion costs. 
 (3) Excludes transaction and conversion costs.




CAPITAL SENIOR LIVING CORPORATION
NON-GAAP RECONCILIATIONS
(In thousands, except per share data)
         
  Three Months Ended September 30 Nine Months Ended September 30,
  2019 2018 2019 2018
Adjusted EBITDAR       
 Net loss$  (20,731) $  (11,089) $  (46,249) $  (27,305)
 Depreciation and amortization expense  16,136   15,998   48,085   46,891
 Stock-based compensation expense  898   2,095   1,558   6,603
 Facility lease expense  14,233   14,077   42,706   42,515
 Provision for bad debts  569   800   2,182   2,254
 Interest income  (59)   (42)   (173)   (117)
 Interest expense  12,562   12,705   37,728   37,771
 Write-off of deferred loan costs and prepayment premiums  -    -    97   - 
 Write down of assets held for sale  -    -    2,340   - 
 Gain on disposition of assets, net  -    (7)   (38)   (10)
 Other expense (income) (1)     (8)   (2)
 Provision for income taxes  124   129   371   388
 Casualty losses  1,460   337   1,985   766
 Transaction and conversion costs  1,386   1,047   2,346   1,885
 Employee placement and separation costs  690   -    2,586   - 
 Employee benefit reserve adjustments  -    -    -    690
 Communities excluded due to repositioning/lease-up  78   71   115   95
 Adjusted EBITDAR$  27,345 $  36,121 $  95,631 $  112,424
Adjusted Revenues       
 Total revenues$  111,110 $  115,650 $  338,412 $  344,920
 Communities excluded due to repositioning/lease-up   (1,353)    (1,475)    (3,903)    (4,249)
 Adjusted revenues$  109,757 $  114,175 $  334,509 $  340,671
Adjusted net loss and Adjusted net loss per share       
 Net loss$  (20,731) $  (11,089) $  (46,249) $  (27,305)
 Casualty losses  1,460    337   1,985   766
 Transaction and conversion costs  1,386    1,078   2,363   1,959
 Employee placement and separation costs  690    -    2,586   - 
 Employee benefit reserve adjustments  -     -    -    690
 Write-off of deferred loan costs and prepayment premiums  -     -    97   - 
 Write down of assets held for sale  -     -    2,340   - 
 Gain on disposition of assets  -     (7)   (38)   (10)
 Tax impact of Non-GAAP adjustments (25%)  (884)    (352)   (2,333)   (679)
 Deferred tax asset valuation allowance  5,113    2,737   10,776   6,256
 Communities excluded due to repositioning/lease-up  693    702   1,970   1,996
 Adjusted net loss$  (12,273) $  (6,594) $  (26,503) $  (16,327)
 Diluted shares outstanding 30,324  29,877  30,236  29,779
 Adjusted net loss per share$  (0.40) $  (0.22) $  (0.88) $  (0.55)
Adjusted CFFO       
 Net loss$  (20,731) $  (11,089) $  (46,249) $  (27,305)
 Non-cash charges, net   16,736    18,584   51,966   55,520
 Operating lease payment adjustment to normalize lease commitments   -     -    (910)   - 
 Recurring capital expenditures   (1,148)    (1,186)   (3,445)   (3,559)
 Casualty losses   1,460    337   1,985   766
 Transaction and conversion costs   1,386    575   2,363   1,304
 Employee placement and separation costs   690    503   2,586   655
 Employee benefit reserve adjustments   -     -    -    690
 Communities excluded due to repositioning/lease-up   416    421   1,211   1,129
 Adjusted CFFO$  (1,191) $   8,145 $   9,507 $  29,200
         

Investor Contact:
Carey Hendrickson, Chief Financial Officer
Phone: 1-972-770-5600
chendrickson@capitalsenior.com

Press Contact:
Susan J. Turkell, 303-766-4343,
sturkell@capitalsenior.com

 

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Source: Capital Senior Living Corporation