Capital Senior Living Corporation (the “Company”) (NYSE:CSU), one of the country’s largest operators of senior living communities, today announced operating and financial results for the fourth quarter and full year 2013. 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 2013 increased 6.8% to $88.9 million, an increase of $5.7 million from the fourth quarter of 2012. Revenue for 2013 increased 12.8% to $350.4 million, an increase of $39.8 million from 2012.
- Average monthly rent for the consolidated communities increased 3.1% to $3,037 per occupied unit in the fourth quarter of 2013, an increase of $90 per occupied unit from the fourth quarter of 2012.
- Adjusted net income for the fourth quarter of 2013 was $1.2 million, or $0.04 per share, excluding non-recurring or non-economic items reconciled on the final page of this release. This compares to net loss of $2.4 million, or $0.08 per share, before adjusting for these non-recurring or non-economic items.
- Adjusted EBITDAR increased 1.8% to $29.7 million in the fourth quarter of 2013, excluding two continuing care retirement communities (“CCRC’s”) that are being re-positioned. Adjusted EBITDAR for 2013 increased 8.7% to $119.6 million.
- Adjusted Cash From Facility Operations (“CFFO”) increased 8.0% to $14.5 million, or $0.52 per share in the fourth quarter of 2013, excluding the two CCRC’s that are being re-positioned. This increase of $0.03 per share from the fourth quarter of 2012 includes tax savings from a cost segregation study of approximately $0.12 per share in the fourth quarter of 2013 compared to $0.09 per share in the fourth quarter of 2012. Adjusted CFFO increased 14.2% to $42.6 million, or $1.53 per share in 2013.
- The Company completed the acquisition of six senior living communities in the fourth quarter for a combined purchase price of approximately $96.7 million. In 2013, the Company completed the acquisition of 11 communities for a combined purchase price of $150.4 million. These 11 communities are expected to generate incremental annual Adjusted CFFO of approximately $0.20 per share.
“We are pleased to report positive results for the fourth quarter as we continue to recover from high levels of attrition in 2013,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “We are focused on reducing attrition and increasing occupancy by converting approximately 360 vacant independent living units to assisted living and memory care units. Once these converted units are stabilized, we expect overall occupancy to increase by approximately 300 basis points, approaching 90%.
“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 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
-
In the fourth quarter of 2013, the Company completed the acquisition
of six senior living communities for a combined purchase price of
approximately $96.7 million. Four communities enhance the Company’s
geographic concentration in Indiana and South Carolina and two
communities add the contiguous states of Wisconsin and Massachusetts
to the Company’s footprint. These communities comprise an aggregate of
538 units offering independent living, assisted living and memory care.
Highlights of these transactions include:- Incremental earnings of $1.6 million, or $0.05 per share.
- Additional Adjusted CFFO of $3.6 million, or $0.13 per share.
- Increases annual revenue by $22.0 million.
- Average occupancy above 95%.
- Average monthly rents are approximately $3,300.
- The six communities were financed with an aggregate of approximately $73.1 million of non-recourse 10-year mortgage debt with a blended fixed interest rate of 5.52%.
- The Company is conducting due diligence on approximately $100 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 first half of 2014.
Financial Results - Fourth Quarter
For the fourth quarter of 2013, the Company reported revenue of $88.9 million, compared to revenue of $83.3 million in the fourth quarter of 2012. Resident and healthcare revenue increased from the fourth quarter of the prior year by approximately $5.4 million, or 6.6%, largely as a result of acquiring 11 communities since the fourth quarter of 2012. The number of consolidated communities increased from 98 in the fourth quarter of 2012 to 109 in the fourth quarter of 2013.
During 2013, the Company decided to close the skilled nursing units in its two CCRC’s and convert this space to private-pay use. Excluding the two CCRC’s that are being re-positioned, average monthly rent for the consolidated communities was $3,037 per occupied unit in the fourth quarter of 2013, an increase of $90, or 3.1%, over the fourth quarter of 2012. Financial occupancy of the consolidated portfolio averaged 86.5% in the fourth quarter of 2013.
As a percentage of resident and healthcare revenue, operating expenses were 62.1% in the fourth quarter of 2013, compared to 59.8% in the fourth quarter of 2012. Margins were negatively impacted by higher utility costs from a particularly harsh winter and higher real estate taxes compared to the prior period which reflected multi-year tax adjustments from successful appeals coupled with higher tax assessments in the current quarter that are now under appeal. Operating expenses for the fourth quarter of 2013 were $54.1 million, an increase of $5.2 million from the fourth quarter of 2012, primarily due to 11 additional communities now being consolidated.
General and administrative expenses as a percentage of revenues under management were 5.2% in the fourth quarter of 2013, excluding transaction costs of approximately $0.7 million. Medical claims that had been abnormally high earlier in the year came back into line in the fourth quarter.
Adjusted EBITDAR for the fourth quarter of 2013 was approximately $29.7 million, an increase of $0.5 million, or 1.8%, from the fourth quarter of 2012. Excluding the two CCRC’s being re-positioned, EBITDAR margin for the fourth quarter of 2013 was 34.6%.
Adjusted net income for the fourth quarter of 2013 was $1.2 million, or $0.04 per share, excluding non-recurring or non-economic items reconciled on the final page of this release. This compares to a net loss of $2.4 million, or $0.08 per share, before adjusting for these non-recurring or non-economic items. Adjusted CFFO was $14.5 million or $0.52 per share in the fourth quarter of 2013. Adjusted CFFO in the fourth quarter of 2013 included a benefit of $0.12 per share from the cost segregation study completed earlier this year. This benefit was $0.09 per share in the fourth quarter of 2012.
Financial Results - Full Year
The Company reported 2013 revenue of $350.4 million compared to revenue of $310.5 million in 2012, an increase of $39.8 million or 12.8%. Operating expenses of $208.2 million in 2013 increased $25.2 million from the prior year.
General and administrative expenses in 2013 were $20.2 million compared to $16.1 million in 2012. Expenses in both years included approximately $1.9 million of transaction costs. Approximately half of the increase in 2013 was due to a higher level of medical claims paid under the Company’s self-insurance plan. The remainder was largely attributable to payroll and benefit costs to support growth. Excluding transaction costs, general and administrative expenses as a percentage of revenues under management were 5.2% in 2013.
Adjusted EBITDAR increased 8.7% to $119.6 million in 2013, an increase of $9.6 million from 2012. EBITDAR margin was 34.9% in 2013 excluding the two CCRC’s being re-positioned. The Company earned adjusted net income of $4.9 million, or $0.17 per share, in 2013 excluding the non-recurring or non-economic items reconciled on the final page of this release. This compares to a net loss of $16.5 million, or $0.58 per share, before adjusting for these non-recurring or non-economic items. Adjusted CFFO was $42.6 million, or $1.53 per share, in 2013, an increase of 14.2% from 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 CCRC’s are being re-positioned with formerly skilled nursing space being converted to 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 communities referenced above, same-community revenue in the fourth quarter of 2013 increased 0.9% versus the fourth quarter of 2012. Same-community expenses increased 3.3% and net operating income declined 2.5% from the fourth quarter of the prior year. The increase in expenses was due to higher utility costs from unusually cold weather and real estate tax adjustments received in the fourth quarter of 2012. Same-community occupancies were 85.9% and average rents were $68 per occupied unit, or 2.3%, higher than the fourth quarter of the prior year.
Capital expenditures for the fourth quarter of 2013 were approximately $3.7 million, representing $2.6 million of investment spending and $1.1 million of recurring capital expenditures. Spending in 2013 for recurring capital expenditures equaled $4.1 million, approximately $400 per unit.
Balance Sheet
The Company ended 2013 with $25.0 million of cash and cash equivalents, including restricted cash. During the year, the Company invested $38.1 million of cash as equity to complete 11 acquisitions and spent $13.6 million on capital improvements.
As of December 31, 2013, the Company financed its 59 owned communities with mortgages totaling $476.2 million at interest rates averaging 5.25%. All of the Company’s debt is at fixed interest rates, except three bridge loans totaling approximately $22.5 million at variable rates averaging 4.24%. The Company has no mortgage maturities before the third quarter of 2015.
Q4 2013 Conference Call Information
The Company will host a conference call with senior management to discuss the Company’s fourth quarter and full year 2013 financial results. The call will be held on Thursday, February 27, 2014 at 5:00 p.m. Eastern Time. The call-in number is 913-312-0395, confirmation code 6286856. 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 February 27, 2014 at 8:00 p.m. Eastern Time, until March 8, 2014 at 8:00 p.m. Eastern Time. To access the conference call replay, call 719-457-0820, confirmation code 6286856. The conference call will also be made available for playback via the Company’s corporate website, www.capitalsenior.com, beginning February 28, 2014.
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 112 senior living communities in geographically concentrated regions with an aggregate capacity of approximately 14,600 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.
For information about Capital Senior Living, visit www.capitalsenior.com.
| CAPITAL SENIOR LIVING CORPORATION | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (in thousands) | ||||||||||
| December 31, | December 31, | |||||||||
| 2013 | 2012 | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 13,611 | $ | 18,737 | ||||||
| Restricted cash | 11,425 | 10,179 | ||||||||
| Accounts receivable, net | 3,752 | 5,229 | ||||||||
| Accounts receivable from affiliates | 416 | 753 | ||||||||
| Federal and state income taxes receivable | 5,123 | 3,901 | ||||||||
| Deferred taxes | 845 | 1,443 | ||||||||
| Property tax and insurance deposits | 11,036 | 11,442 | ||||||||
| Prepaid expenses and other | 6,605 | 4,758 | ||||||||
| Total current assets | 52,813 | 56,442 | ||||||||
| Property and equipment, net | 649,967 | 527,159 | ||||||||
| Deferred taxes | — | 9,350 | ||||||||
| Investments in unconsolidated joint ventures | 1,010 | 1,074 | ||||||||
| Other assets, net | 41,759 | 42,917 | ||||||||
| Total assets | $ | 745,549 | $ | 636,942 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 3,813 | $ | 6,978 | ||||||
| Accounts payable to affiliates | 1 | 2 | ||||||||
| Accrued expenses | 29,321 | 24,445 | ||||||||
| Current portion of notes payable | 11,918 | 20,230 | ||||||||
| Current portion of deferred income | 11,215 | 8,193 | ||||||||
| Current portion of capital lease and financing obligations | 948 | 766 | ||||||||
| Customer deposits | 1,489 | 1,540 | ||||||||
| Total current liabilities | 58,705 | 62,154 | ||||||||
| Deferred income | 18,021 | 19,990 | ||||||||
| Capital lease and financing obligations, net of current portion | 41,093 | 42,146 | ||||||||
| Deferred taxes | 845 | — | ||||||||
| Other long-term liabilities | 1,559 | 1,692 | ||||||||
| Notes payable, net of current portion | 467,376 | 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 28,845 and 28,218 in 2013 and 2012, respectively | 292 | 286 | ||||||||
| Additional paid-in capital | 143,721 | 137,867 | ||||||||
| Retained earnings | 14,871 | 31,375 | ||||||||
Treasury stock, at cost – 350 shares in 2013 and 2012 | (934 | ) | (934 | ) | ||||||
| Total shareholders' equity | 157,950 | 168,594 | ||||||||
| Total liabilities and shareholders' equity | $ | 745,549 | $ | 636,942 | ||||||
| CAPITAL SENIOR LIVING CORPORATION | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
| Revenues: | |||||||||||||||||||||
| Resident and health care revenue | $ | 87,069 | $ | 81,687 | $ | 343,478 | $ | 304,848 | |||||||||||||
| Affiliated management services revenue | 211 | 182 | 797 | 674 | |||||||||||||||||
| Community reimbursement revenue | 1,655 | 1,409 | 6,087 | 5,014 | |||||||||||||||||
| Total revenues | 88,935 | 83,278 | 350,362 | 310,536 | |||||||||||||||||
| Expenses: | |||||||||||||||||||||
| Operating expenses (exclusive of facility lease expense and depreciation and amortization expense shown below) | 53,888 | 48,651 | 207,744 | 182,286 | |||||||||||||||||
| General and administrative expenses | 5,209 | 5,191 | 20,238 | 16,114 | |||||||||||||||||
| Facility lease expense | 14,173 | 13,965 | 56,986 | 55,144 | |||||||||||||||||
| Stock-based compensation expense | 1,164 | 601 | 4,322 | 2,444 | |||||||||||||||||
| Provision for bad debts | 167 | 198 | 497 | 749 | |||||||||||||||||
| Depreciation and amortization | 10,055 | 10,160 | 43,238 | 35,130 | |||||||||||||||||
| Community reimbursement expense | 1,655 | 1,409 | 6,087 | 5,014 | |||||||||||||||||
| Total expenses | 86,311 | 80,175 | 339,112 | 296,881 | |||||||||||||||||
| Income from operations | 2,624 | 3,103 | 11,250 | 13,655 | |||||||||||||||||
| Other income (expense): | |||||||||||||||||||||
| Interest income | 13 | 17 | 151 | 453 | |||||||||||||||||
| Interest expense | (6,446 | ) | (5,323 | ) | (23,767 | ) | (18,022 | ) | |||||||||||||
| Gain (Loss) on disposition of assets, net | 1,442 | — | 1,454 | (19 | ) | ||||||||||||||||
| Equity in earnings (losses) of unconsolidated joint ventures | 57 | 24 | 133 | (217 | ) | ||||||||||||||||
| Other income | 6 | — | 34 | — | |||||||||||||||||
| Loss before (provision) benefit for income taxes | (2,304 | ) | (2,179 | ) | (10,745 | ) | (4,150 | ) | |||||||||||||
| (Provision) Benefit for income taxes | (91 | ) | 538 | (5,759 | ) | 1,031 | |||||||||||||||
| Net loss | $ | (2,395 | ) | $ | (1,641 | ) | $ | (16,504 | ) | $ | (3,119 | ) | |||||||||
| Per share data: | |||||||||||||||||||||
| Basic net loss per share | $ | (0.08 | ) | $ | (0.06 | ) | $ | (0.58 | ) | $ | (0.11 | ) | |||||||||
| Diluted net loss per share | $ | (0.08 | ) | $ | (0.06 | ) | $ | (0.58 | ) | $ | (0.11 | ) | |||||||||
| Weighted average shares outstanding — basic | 27,949 | 27,403 | 27,815 | 27,349 | |||||||||||||||||
| Weighted average shares outstanding — diluted | 27,949 | 27,403 | 27,815 | 27,349 | |||||||||||||||||
| Comprehensive loss | $ | (2,395 | ) | $ | (1,641 | ) | $ | (16,504 | ) | $ | (3,119 | ) | |||||||||
| CAPITAL SENIOR LIVING CORPORATION | ||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
| (in thousands) | ||||||||||
Year Ended | ||||||||||
| 2013 | 2012 | |||||||||
| Operating Activities | ||||||||||
| Net loss | $ | (16,504 | ) | $ | (3,119 | ) | ||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||
| Depreciation and amortization | 43,238 | 35,130 | ||||||||
| Amortization of deferred financing charges | 1,100 | 787 | ||||||||
| Amortization of deferred lease costs, net | 1,164 | 753 | ||||||||
| Deferred income | 1,053 | (1,816 | ) | |||||||
| Deferred income taxes | 10,793 | (3,532 | ) | |||||||
| Equity in (earnings) losses of unconsolidated joint ventures, net | (133 | ) | 218 | |||||||
| (Gain) Loss on disposition of assets, net | (1,454 | ) | 19 | |||||||
| Provision for bad debts | 497 | 749 | ||||||||
| Stock-based compensation expense | 4,322 | 2,444 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||
| Accounts receivable | 980 | (1,452 | ) | |||||||
| Accounts receivable from affiliates | 337 | (45 | ) | |||||||
| Property tax and insurance deposits | 406 | (47 | ) | |||||||
| Prepaid expenses and other | (1,847 | ) | 1,310 | |||||||
| Other assets | (1,745 | ) | 3,721 | |||||||
| Accounts payable | (3,166 | ) | 4,369 | |||||||
| Accrued expenses | 4,876 | 5,359 | ||||||||
| Federal and state income taxes receivable | (1,222 | ) | 1,537 | |||||||
| Customer deposits | (51 | ) | 10 | |||||||
| Net cash provided by operating activities | 42,644 | 46,395 | ||||||||
| Investing Activities | ||||||||||
| Capital expenditures | (13,562 | ) | (12,302 | ) | ||||||
| Cash paid for acquisitions | (150,391 | ) | (178,110 | ) | ||||||
| Proceeds from disposition of assets | 1,460 | 19 | ||||||||
| Contributions to joint ventures | — | (243 | ) | |||||||
| Distributions from joint ventures | 197 | 21 | ||||||||
| Net cash used in investing activities | (162,296 | ) | (190,615 | ) | ||||||
| Financing Activities | ||||||||||
| Proceeds from notes payable | 140,237 | 160,413 | ||||||||
| Repayments of notes payable | (23,539 | ) | (15,900 | ) | ||||||
| Cash payments for capital lease and financing obligations | (871 | ) | (499 | ) | ||||||
| Increase in restricted cash | (1,246 | ) | (1,077 | ) | ||||||
| Cash proceeds from issuance of common stock | 3,163 | 165 | ||||||||
| Excess tax benefits on stock options exercised | (1,625 | ) | (37 | ) | ||||||
| Deferred financing charges paid | (1,593 | ) | (2,391 | ) | ||||||
| Net cash provided by financing activities | 114,526 | 140,674 | ||||||||
| Decrease in cash and cash equivalents | (5,126 | ) | (3,546 | ) | ||||||
| Cash and cash equivalents at beginning of period | 18,737 | 22,283 | ||||||||
| Cash and cash equivalents at end of period | $ | 13,611 | $ | 18,737 | ||||||
| Supplemental Disclosures | ||||||||||
| Cash paid during the period for: | ||||||||||
| Interest | $ | 21,953 | $ | 16,620 | ||||||
| Income taxes | $ | 702 | $ | 4,719 | ||||||
| Non-cash operating, investing, and financing activities: | ||||||||||
| 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 | ||||||
| Notes payable assumed through acquisitions | $ | — | $ | 3,240 | ||||||
| Supplemental Information | ||||||||||||||||||||||||||
| Average | ||||||||||||||||||||||||||
| Communities | Resident Capacity | Average Units | ||||||||||||||||||||||||
| Q4 13 | Q4 12 | Q4 13 | Q4 12 | Q4 13 | Q4 12 | |||||||||||||||||||||
| Portfolio Data | ||||||||||||||||||||||||||
| I. Community Ownership / Management | ||||||||||||||||||||||||||
| Consolidated communities | ||||||||||||||||||||||||||
| Owned | 59 | 48 | 7,611 | 6,675 | 5,911 | 5,431 | ||||||||||||||||||||
| Leased | 50 | 50 | 6,298 | 6,298 | 5,213 | 5,039 | ||||||||||||||||||||
| Joint Venture communities (equity method) | 3 | 3 | 674 | 674 | 443 | 433 | ||||||||||||||||||||
| Total | 112 | 101 | 14,583 | 13,647 | 11,567 | 10,903 | ||||||||||||||||||||
| Independent living | 7,277 | 7,213 | 5,888 | 6,003 | ||||||||||||||||||||||
| Assisted living | 6,761 | 5,719 | 5,226 | 4,282 | ||||||||||||||||||||||
| CCRC’s | 545 | 715 | 453 | 618 | ||||||||||||||||||||||
| Total | 14,583 | 13,647 | 11,567 | 10,903 | ||||||||||||||||||||||
| II. Percentage of Operating Portfolio | ||||||||||||||||||||||||||
| Consolidated communities | ||||||||||||||||||||||||||
| Owned | 52.7 | % | 47.5 | % | 52.2 | % | 48.9 | % | 51.1 | % | 49.8 | % | ||||||||||||||
| Leased | 44.6 | % | 49.5 | % | 43.2 | % | 46.2 | % | 45.1 | % | 46.2 | % | ||||||||||||||
| Joint venture communities (equity method) | 2.7 | % | 3.0 | % | 4.6 | % | 4.9 | % | 3.8 | % | 4.0 | % | ||||||||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Independent living | 49.9 | % | 52.9 | % | 50.9 | % | 55.1 | % | ||||||||||||||||||
| Assisted living | 46.4 | % | 41.9 | % | 45.2 | % | 39.3 | % | ||||||||||||||||||
| CCRC’s | 3.7 | % | 5.2 | % | 3.9 | % | 5.6 | % | ||||||||||||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||
Capital Senior Living Corporation | ||||||
| Supplemental Information (excludes CCRC’s being re-positioned) | ||||||
| Selected Operating Results | Q4 13 | Q4 12 | ||||
| I. Owned communities | ||||||
| Number of communities | 57 | 46 | ||||
| Resident capacity | 7,066 | 5,960 | ||||
| Unit capacity | 5,457 | 4,571 | ||||
| Financial occupancy (1) | 87.0 | % | 89.2 | % | ||
| Revenue (in millions) | 39.4 | 31.9 | ||||
| Operating expenses (in millions) (2) | 22.4 | 17.5 | ||||
| Operating margin | 43 | % | 45 | % | ||
| Average monthly rent | 2,764 | 2,606 | ||||
| II. Leased communities | ||||||
| Number of communities | 50 | 50 | ||||
| Resident capacity | 6,298 | 6,298 | ||||
| Unit capacity | 5,213 | 5,207 | ||||
| Financial occupancy (1) | 85.9 | % | 86.9 | % | ||
| Revenue (in millions) | 44.7 | 44.2 | ||||
| Operating expenses (in millions) (2) | 22.7 | 22.0 | ||||
| Operating margin | 49 | % | 50 | % | ||
| Average monthly rent | 3,326 | 3,253 | ||||
| III. Consolidated communities | ||||||
| Number of communities | 107 | 96 | ||||
| Resident capacity | 13,364 | 12,258 | ||||
| Unit capacity | 10,670 | 9,778 | ||||
| Financial occupancy (1) | 86.5 | % | 88.0 | % | ||
| Revenue (in millions) | 84.1 | 76.0 | ||||
| Operating expenses (in millions) (2) | 45.1 | 39.5 | ||||
| Operating margin | 46 | % | 48 | % | ||
| Average monthly rent | 3,037 | 2,947 | ||||
| IV. Communities under management | ||||||
| Number of communities | 110 | 99 | ||||
| Resident capacity | 14,038 | 12,932 | ||||
| Unit capacity | 11,113 | 10,219 | ||||
| Financial occupancy (1) | 86.6 | % | 87.6 | % | ||
| Revenue (in millions) | 88.3 | 79.7 | ||||
| Operating expenses (in millions) (2) | 47.4 | 41.6 | ||||
| Operating margin | 46 | % | 48 | % | ||
| Average monthly rent | 3,058 | 2,966 | ||||
| V. Same communities under management | ||||||
| Number of communities | 89 | 89 | ||||
| Resident capacity | 11,886 | 11,886 | ||||
| Unit capacity | 9,761 | 9,748 | ||||
| Financial occupancy (1) | 85.9 | % | 87.2 | % | ||
| Revenue (in millions) | 75.9 | 75.3 | ||||
| Operating expenses (in millions) (2) | 40.2 | 39.1 | ||||
| Operating margin | 47 | % | 48 | % | ||
| Average monthly rent | 3,018 | 2,950 | ||||
| VI. General and administrative expenses as a percent of total revenues under management | ||||||
| Fourth Quarter (3) | 5.2 | % | 5.2 | % | ||
| Fiscal Year (3) | 5.2 | % | 4.5 | % | ||
| VII. Consolidated mortgage debt information (in thousands, except for interest rates) | ||||||
| Total fixed rate mortgage debt | 453,641 | 349,309 | ||||
| Total variable rate mortgage debt | 22,522 | 11,550 | ||||
| Weighted average interest rate | 5.25 | % | 5.27 | % | ||
(1) Financial occupancy represents actual days occupied divided by total number of available days during the month of the quarter. | ||||||
(2) Excludes management fees, insurance and property taxes. | ||||||
(3) Excludes transaction costs incurred by the Company. | ||||||
| CAPITAL SENIOR LIVING CORPORATION | |||||||||||||||||||||
| NON-GAAP RECONCILIATIONS (excludes CCRC’s being re-positioned) | |||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||
| Three Months Ended December 31, | Fiscal Year Ended December 31, | ||||||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
| Adjusted EBITDAR | |||||||||||||||||||||
| Net income from operations | $ | 2,624 | $ | 3,103 | $ | 11,250 | $ | 13,655 | |||||||||||||
| Depreciation and amortization expense | 10,055 | 10,160 | 43,238 | 35,130 | |||||||||||||||||
| Stock-based compensation expense | 1,164 | 601 | 4,322 | 2,444 | |||||||||||||||||
| Facility lease expense | 14,173 | 13,965 | 56,986 | 55,144 | |||||||||||||||||
| Provision for bad debts | 167 | 198 | 497 | 749 | |||||||||||||||||
| Casualty losses | 161 | 441 | 543 | 976 | |||||||||||||||||
| Transaction costs | 660 | 735 | 1,866 | 1,899 | |||||||||||||||||
| CCRC's being re-positioned | 739 | - | 859 | - | |||||||||||||||||
| Adjusted EBITDAR | $ | 29,743 | $ | 29,203 | $ | 119,561 | $ | 109,997 | |||||||||||||
| Adjusted EBITDAR Margin | |||||||||||||||||||||
| Adjusted EBITDAR | $ | 29,743 | $ | 29,203 | $ | 119,561 | $ | 109,997 | |||||||||||||
| Total revenues | $ | 88,935 | $ | 83,278 | $ | 350,362 | $ | 310,536 | |||||||||||||
| CCRC's being re-positioned | (2,987 | ) | - | (7,847 | ) | - | |||||||||||||||
| Adjusted revenues | $ | 85,948 | $ | 83,278 | $ | 342,515 | $ | 310,536 | |||||||||||||
| Adjusted EBITDAR margin | 34.6 | % | 35.1 | % | 34.9 | % | 35.4 | % | |||||||||||||
| Adjusted net income and net income per share | |||||||||||||||||||||
| Net loss | $ | (2,395 | ) | $ | (1,641 | ) | $ | (16,504 | ) | $ | (3,119 | ) | |||||||||
| Casualty losses, net of tax | 101 | 278 | 342 | 615 | |||||||||||||||||
| Transaction costs, net of tax | 416 | 463 | 1,176 | 1,196 | |||||||||||||||||
| Resident lease amortization, net of tax | 1,937 | 2,775 | 10,774 | 9,003 | |||||||||||||||||
| (Gain) Loss on disposition of assets, net of tax | (908 | ) | - | (916 | ) | 12 | |||||||||||||||
| Deferred tax asset valuation allowance | 1,297 | - | 8,810 | - | |||||||||||||||||
| CCRC's being re-positioned, net of tax | 756 | - | 1,170 | - | |||||||||||||||||
| Adjusted net income | $ | 1,204 | $ | 1,875 | $ | 4,852 | $ | 7,707 | |||||||||||||
| Adjusted net income per share | $ | 0.04 | $ | 0.07 | $ | 0.17 | $ | 0.28 | |||||||||||||
| Diluted shares outstanding | 27,966 | 27,514 | 27,871 | 27,434 | |||||||||||||||||
| Adjusted CFFO and Adjusted CFFO per share | |||||||||||||||||||||
| Net loss | $ | (2,395 | ) | $ | (1,641 | ) | $ | (16,504 | ) | $ | (3,119 | ) | |||||||||
| Non-cash charges, net | 17,037 | 15,090 | 60,581 | 34,752 | |||||||||||||||||
| Recurring capital expenditures | (991 | ) | (894 | ) | (3,866 | ) | (3,373 | ) | |||||||||||||
| Casualty losses, net of tax | 101 | 278 | 342 | 615 | |||||||||||||||||
| Transaction costs | 660 | 735 | 1,866 | 1,899 | |||||||||||||||||
| Tax impact of Spring Meadows Transaction | (106 | ) | (106 | ) | (424 | ) | (424 | ) | |||||||||||||
| Tax impact of lease modification | - | - | - | 6,983 | |||||||||||||||||
| CCRC's being re-positioned, net of tax | 237 | - | 631 | - | |||||||||||||||||
| Adjusted CFFO | $ | 14,543 | $ | 13,462 | $ | 42,626 | $ | 37,333 | |||||||||||||
| Adjusted CFFO per share | $ | 0.52 | $ | 0.49 | $ | 1.53 | $ | 1.36 | |||||||||||||
Contacts:
Ralph A. Beattie, 1-972-770-5600
Chief
Financial Officer
