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EX-99.2 - CAPITAL SENIOR LIVING CORPORATION UPDATED SLIDESHOW PRESENTATION. - CAPITAL SENIOR LIVING CORPd312754dex992.htm

Exhibit 99.1

 

LOGO  

Capital

Senior

Living

Corporation

         

 

For Immediate Release      Contact:         Ralph A. Beattie   
        972/770-5600   

CAPITAL SENIOR LIVING CORPORATION

REPORTS FOURTH QUARTER AND FULL YEAR 2011 RESULTS;

FOURTH QUARTER CFFO INCREASES 50% TO $0.31 PER SHARE

DALLAS – (BUSINESS WIRE) –March 7, 2012 – Capital Senior Living Corporation (the “Company”) (NYSE:CSU), one of the country’s largest operators of senior living communities, today announced operating results for the fourth quarter and full year 2011. Company highlights for the fourth quarter and full year include:

Fourth Quarter Highlights

 

   

Adjusted Cash From Facility Operations (“CFFO”) was $8.4 million, or $0.31 per share in the fourth quarter of 2011, an increase of 50.3%, or $0.10 per share from the fourth quarter of 2010. Adjusted CFFO would have been $6.6 million, or $0.24 per share in the fourth quarter of 2011 without tax savings resulting from bonus depreciation described below.

 

   

Adjusted EBITDAR increased 21.6% to $25.4 million in the fourth quarter of 2011, an increase of $4.5 million from the fourth quarter of 2010. EBITDAR margin improved to 35.7% from 34.9% in the fourth quarter of the prior year.

 

   

Revenue increased 18.8% to $71.2 million in the fourth quarter of 2011, an increase of $11.2 million from the fourth quarter of 2010.

 

   

Average monthly rent increased 5.5% to $2,908 per occupied unit in the fourth quarter of 2011, an increase of $152 per occupied unit from the fourth quarter of 2010.

 

   

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

 

   

The Company completed the acquisition of three senior living communities for a combined purchase price of $30 million.

 

   

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


CAPITAL/Page 2

 

Full Year Highlights

 

   

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

 

   

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

 

   

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

 

   

Sold partnership interests in the four Spring Meadows communities to Health Care REIT (“HCN”) in a $141.0 million transaction, resulting in sales proceeds, including incentive distributions, of approximately $17.0 million and incremental annual CFFO of approximately $0.03 per share from leasing the communities from HCN upon closing the sale.

 

   

Completed the purchase of seven high quality senior living communities for a combined purchase price of $83.4 million. These seven communities are expected to generate incremental annual CFFO of approximately $0.13 per share.

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


CAPITAL/Page 3

 

Recent Investment Activity

 

   

In the fourth quarter, the Company completed the acquisition of three senior living communities for a combined purchase price of approximately $30 million. Two of these communities are in South Carolina and one is in North Carolina, enhancing the Company’s geographic concentration in these states. Highlights of this transaction include:

 

   

Additional CFFO of $1.4 million, or $0.05 per share.

 

   

Incremental earnings of $0.7 million, or $0.03 per share.

 

   

Increases annual revenue by $8.0 million.

 

   

Average occupancy 92%.

 

   

Average monthly rents are approximately $2,900.

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

 

   

Subsequent to the end of the fourth quarter, the Company completed the acquisition of a senior living community in Texas for a purchase price of approximately $7 million. Highlights of this transaction include:

 

   

Additional CFFO of $0.4 million, or $0.02 per share.

 

   

Incremental earnings of $0.2 million, or $0.01 per share.

 

   

Increases annual revenue by $2.5 million.

 

   

Average occupancy 96%.

 

   

Average monthly rents are approximately $2,700.

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

 

   

The Company has completed due diligence on five additional high-quality senior living communities in Texas and Indiana. Subject to customary closing conditions, the Company expects to acquire these five additional communities later this month for a combined purchase price of approximately $49.0 million. These communities are projected to increase annual CFFO by approximately $0.09 per share.

 

   

The Company is conducting due diligence on additional transactions consisting of high-quality senior living communities in regions with existing extensive operations. Subject to completion of due diligence and customary closing conditions, the Company expects to acquire additional communities in the second quarter of 2012.

 


CAPITAL/Page 4

 

Quarterly Financial Results

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

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

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

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

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

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

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


CAPITAL/Page 5

 

Annual Financial Results

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

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

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

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

Operating Activities

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

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

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


CAPITAL/Page 6

 

Balance Sheet

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

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

Q4 2011 Conference Call Information

The Company will host a conference call with senior management to discuss the Company’s fourth quarter and full year 2011 financial results. The call will be held on Thursday, March 8, 2012 at 11:00 a.m. Eastern Time. The call-in number is 913-312-1469, confirmation code 9403823. A link to a simultaneous webcast of the teleconference will be available at www.capitalsenior.com through Windows Media Player or RealPlayer.

For the convenience of the Company’s shareholders and the public, the conference call will be recorded and available for replay starting March 8, 2012 at 2:00 p.m. Eastern Time, until March 17, 2012 at 2:00 p.m. Eastern Time. To access the conference call replay, call 719-457-0820, confirmation code 9403823. The conference call will also be made available for playback via the Company’s corporate website, www.capitalsenior.com.

About the Company

Capital Senior Living Corporation is one of the nation’s largest operators of residential communities for senior adults. The Company’s operating philosophy emphasizes a continuum of care, which integrates independent living, assisted living and home care services, to provide residents the opportunity to age in place. The Company currently operates 85 senior living communities in geographically concentrated regions with an aggregate capacity of approximately 12,000 residents.


CAPITAL/Page 7

 

Safe Harbor

The forward-looking statements in this release are subject to certain risks and uncertainties that could cause results to differ materially, including, but not without limitation to, the Company’s ability to find suitable acquisition properties at favorable terms, financing, licensing, business conditions, risks of downturns in economic conditions generally, satisfaction of closing conditions such as those pertaining to licensure, availability of insurance at commercially reasonable rates, and changes in accounting principles and interpretations among others, and other risks and factors identified from time to time in our reports filed with the Securities and Exchange Commission.

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

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


CAPITAL/Page 8

 

CAPITAL SENIOR LIVING CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands)

 

     December 31,     December 31,  
     2011     2010  

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 22,283      $ 31,248   

Restricted cash

     9,102        6,334   

Accounts receivable, net

     4,526        3,777   

Accounts receivable from affiliates

     708        911   

Federal and state income taxes receivable

     5,438        3,962   

Deferred taxes

     1,479        1,290   

Property tax and insurance deposits

     11,395        11,059   

Prepaid expenses and other

     6,068        4,896   
  

 

 

   

 

 

 

Total current assets

     60,999        63,477   

Property and equipment, net

     365,459        295,449   

Deferred taxes

     5,782        3,478   

Investments in unconsolidated joint ventures

     1,070        2,224   

Other assets, net

     29,016        18,153   
  

 

 

   

 

 

 

Total assets

   $ 462,326      $ 382,781   
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 2,297      $ 1,951   

Accounts payable to affiliates

     314        —     

Accrued expenses

     19,086        16,125   

Current portion of notes payable

     8,196        5,645   

Current portion of deferred income

     8,740        7,242   

Current portion of capital lease obligations

     50        135   

Customer deposits

     1,530        1,299   
  

 

 

   

 

 

 

Total current liabilities

     40,213        32,397   

Deferred income

     26,175        14,493   

Capital lease obligations, net of current portion

     31        83   

Other long-term liabilities

     1,826        1,959   

Notes payable, net of current portion

     224,940        170,026   

Commitments and contingencies

    

Shareholders’ equity:

    

Preferred stock, $.01 par value:

    

Authorized shares — 15,000; no shares issued or outstanding

     —          —     

Common stock, $.01 par value:

    

Authorized shares — 65,000; issued and outstanding shares 27,699 and 27,083 in 2011 and 2010, respectively

     280        274   

Additional paid-in capital

     135,301        133,014   

Retained earnings

     34,494        31,469   

Treasury stock, at cost – 350 shares in 2011 and 2010

     (934     (934
  

 

 

   

 

 

 

Total shareholders’ equity

     169,141        163,823   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 462,326      $ 382,781   
  

 

 

   

 

 

 

See accompanying notes to consolidated financial statements.


CAPITAL/Page 9

 

CAPITAL SENIOR LIVING CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

 

     Three Months Ended
December 31,
    Year Ended
December 31,
 
     2011     2010     2011     2010  

Revenues:

        

Resident and health care revenue

   $ 69,811      $ 56,683      $ 256,584      $ 196,936   

Unaffiliated management services revenue

     —          6        —          60   

Affiliated management services revenue

     145        419        883        2,044   

Community reimbursement revenue

     1,196        2,800        6,035        12,889   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     71,152        59,908        263,502        211,929   

Expenses:

        

Operating expenses (exclusive of facility lease expense and depreciation and amortization expense shown below)

     41,545        33,849        154,042        119,614   

General and administrative expenses

     3,641        2,534        13,198        11,535   

Facility lease expense

     13,466        11,036        52,233        34,253   

Stock-based compensation expense

     477        136        1,497        919   

Provision for bad debts

     70        35        287        174   

Depreciation and amortization

     6,383        3,543        18,299        14,030   

Community reimbursement expense

     1,196        2,800        6,035        12,889   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

     66,778        53,933        245,591        193,414   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     4,374        5,975        17,911        18,515   

Other income(expense):

        

Interest income

     20        16        102        48   

Interest expense

     (3,471     (2,802     (11,900     (11,242

(Loss)Gain on disposition of assets, net

     (10     —          171        —     

Gain on settlement of debt

     —          —          —          684   

Equity in (losses)earnings of unconsolidated joint ventures

     (141     (338     (760     (330
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before provision for income taxes

     772        2,851        5,524        7,675   

Provision for income taxes

     (426     (1,261     (2,499     (3,421
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 346      $ 1,590      $ 3,025      $ 4,254   
  

 

 

   

 

 

   

 

 

   

 

 

 

Per share data:

        

Basic net income per share

   $ 0.01      $ 0.06      $ 0.11      $ 0.16   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income per share

   $ 0.01      $ 0.06      $ 0.11      $ 0.16   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding — basic

     27,066        26,624        26,995        26,587   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding — diluted

     27,094        26,732        27,062        26,687   
  

 

 

   

 

 

   

 

 

   

 

 

 


CAPITAL/Page 10

 

CAPITAL SENIOR LIVING CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

     Year Ended
December 31,
 
     2011     2010  

Operating Activities

    

Net income

   $ 3,025      $ 4,254   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation

     18,299        14,030   

Amortization of deferred financing charges

     352        330   

Amortization of deferred lease costs, net

     1,710        1,005   

Deferred income

     (2,669     (3,034

Deferred income taxes

     (2,493     4,221   

Equity in losses(earnings) of unconsolidated joint ventures

     760        331   

Gain on settlement of debt

     —          (684

Gain on disposition of assets, net

     (171     —     

Provision for bad debts

     287        174   

Stock based compensation expense

     1,497        919   

Changes in operating assets and liabilities:

    

Accounts receivable

     (1,036     (611

Accounts receivable from affiliates

     203        (487

Property tax and insurance deposits

     (336     (2,584

Prepaid expenses and other

     (1,172     (931

Other assets

     (6,548     (2,670

Accounts payable

     660        (86

Accrued expenses

     2,961        3,838   

Federal and state income taxes receivable

     (1,476     (2,469

Customer deposits

     231        4   
  

 

 

   

 

 

 

Net cash provided by operating activities

     14,084        15,550   

Investing Activities

    

Capital expenditures

     (10,472     (8,447

Cash paid for acquisitions

     (83,450     (2,000

Proceeds from Spring Meadows Transaction

     15,844        —     

Contributions to joint ventures

     (801     —     

Distributions from joint ventures

     1,442        5,165   
  

 

 

   

 

 

 

Net cash used in investing activities

     (77,437     (5,282

Financing Activities

    

Increase in restricted cash

     (2,768     (4,167

Proceeds from notes payable

     64,202        3,591   

Repayments of notes payable

     (6,737     (10,154

Lease incentive from Signature Transaction

     —          2,000   

Increase in capital lease obligations

     —          240   

Cash payments for capital lease obligations

     (137     (22

Deferred financing charges paid

     (968     —     

Cash proceeds from the issuance of common stock

     505        359   

Excess tax benefits on stock options exercised

     291        161   
  

 

 

   

 

 

 

Net cash provided by(used in) financing activities

     54,388        (7,992
  

 

 

   

 

 

 

(Decrease)Increase in cash and cash equivalents

     (8,965     2,276   

Cash and cash equivalents at beginning of period

     31,248        28,972   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 22,283      $ 31,248   
  

 

 

   

 

 

 

Supplemental Disclosures

    

Cash paid during the period for:

    

Interest

   $ 11,266      $ 10,949   
  

 

 

   

 

 

 

Income taxes

   $ 6,810      $ 2,328   
  

 

 

   

 

 

 


CAPITAL/Page 11

 

Capital Senior Living Corporation

Supplemental Information

 

     Communities     Resident Capacity     Units  
     Q4 11     Q4 10     Q4 11     Q4 10     Q4 11     Q4 10  

Portfolio Data

            

I. Community Ownership / Management

            

Consolidated communities

            

Owned

     32        25        4,832        4,052        4,051        3,501   

Leased

     49        45        6,318        5,514        5,050        4,377   

Joint Venture communities (equity method)

     3        7        674        1,434        433        1,061   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     84        77        11,824        11,000        9,534        8,939   

Independent living

         6,832        6,622        5,671        5,515   

Assisted living

         4,277        3,663        3,245        2,806   

Continuing Care Retirement Communities

         715        715        618        618   
      

 

 

   

 

 

   

 

 

   

 

 

 

Total

         11,824        11,000        9,534        8,939   

II. Percentage of Operating Portfolio

            

Consolidated communities

            

Owned

     38.1     32.5     40.9     36.9     42.5     39.2

Leased

     58.3     58.4     53.4     50.1     53.0     49.0

Joint venture communities (equity method)

     3.6     9.1     5.7     13.0     4.5     11.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     100.0     100.0     100.0     100.0     100.0     100.0

Independent living

         57.8     60.2     59.5     61.7

Assisted living

         36.2     33.3     34.0     31.4

Continuing Care Retirement Communities

         6.0     6.5     6.5     6.9
      

 

 

   

 

 

   

 

 

   

 

 

 

Total

         100.0     100.0     100.0     100.0


CAPITAL/Page 12

 

Capital Senior Living Corporation

Supplemental Information

 

     Q4 11     Q4 10  

Selected Operating Results

    

I. Owned communities

    

Number of communities

     32        25   

Resident capacity

     4,832        4,052   

Unit capacity

     4,051        3,501   

Financial occupancy (1)

     88.3     84.7

Revenue (in millions)

     26.7        20.6   

Operating expenses (in millions) (2)

     14.8        11.5   

Operating margin

     45     44

Average monthly rent

     2,451        2,319   

II. Leased communities

    

Number of communities

     49        45   

Resident capacity

     6,318        5,514   

Unit capacity

     5,050        4,377   

Financial occupancy (1)

     83.5     85.4

Revenue (in millions)

     43.0        36.0   

Operating expenses (in millions) (2)

     23.0        19.2   

Operating margin

     47     47

Average monthly rent

     3,288        3,088   

III. Consolidated communities

    

Number of communities

     81        70   

Resident capacity

     11,150        9,566   

Unit capacity

     9,101        7,878   

Financial occupancy (1)

     85.6     85.1

Revenue (in millions)

     69.7        56.6   

Operating expenses (in millions) (2)

     37.8        30.7   

Operating margin

     46     46

Average monthly rent

     2,908        2,756   

IV. Communities under management

    

Number of communities

     84        77   

Resident capacity

     11,824        11,000   

Unit capacity

     9,534        8,939   

Financial occupancy (1)

     84.7     83.0

Revenue (in millions)

     72.6        64.9   

Operating expenses (in millions) (2)

     39.7        35.3   

Operating margin

     45     46

Average monthly rent

     2,924        2,852   

V. Same Store communities under management

    

(excludes 1 community with a conversion and 3 communities in lease up)

    

Number of communities

     73        73   

Resident capacity

     10,144        10,144   

Unit capacity

     8,365        8,365   

Financial occupancy (1)

     85.4     84.9

Revenue (in millions)

     63.6        61.8   

Operating expenses (in millions) (2)

     34.1        33.1   

Operating margin

     46     46

Average monthly rent

     2,913        2,848   

VI. General and Administrative expenses as a percent of Total Revenues under Management

    

Fourth Quarter (3)

     4.3     3.9

Fiscal Year (3)

     4.4     4.8

VII. Consolidated Mortgage Debt Information (in thousands, except for interest rates)

    

(excludes insurance premium and auto financing)

    

Total fixed rate debt

     229,263        173,965   

Weighted average interest rate

     5.8     6.0

 

(1) Financial occupancy represents actual days occupied divided by total number of available days during the month of the quarter.
(2) Excludes management fees, insurance and property taxes.
(3) Excludes transaction costs incurred by the Company.


CAPITAL/Page 13

 

CAPITAL SENIOR LIVING CORPORATION

NON-GAAP RECONCILIATIONS

 

     Three Months Ended December 31,     Year Ended December 31,  
     2011     2010     2011     2010  

Adjusted EBITDAR

        

Net income from operations

   $ 4,374      $ 5,975      $ 17,911      $ 18,515   

Depreciation and amortization expense

     6,383        3,543        18,299        14,030   

Stock-based compensation expense

     477        136        1,497        919   

Facility lease expense

     13,466        11,036        52,233        34,253   

Provision for bad debts

     70        35        287        174   

Casualty losses

     112        99        711        260   

Transaction costs

     546        82        1,390        451   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDAR

   $ 25,428      $ 20,906      $ 92,328      $ 68,602   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDAR Margin

        

Adjusted EBITDAR

   $ 25,428      $ 20,906      $ 92,328      $ 68,602   

Total revenues

     71,152        59,908        263,502        211,929   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDAR margin

     35.7     34.9     35.0     32.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income and net income per share

        

Net income

   $ 346      $ 1,590      $ 3,025      $ 4,254   

Casualty losses, net of tax

     71        62        448        164   

Transaction costs, net of tax

     344        52        876        284   

Resident lease amortization, net of tax

     1,268        301        2,636        389   

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

     6        —          (108     —     

Gain on settlement of debt, net of tax

     —          —          —          (431
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

   $ 2,035      $ 2,005      $ 6,877      $ 4,660   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income per share

   $ 0.08      $ 0.08      $ 0.25      $ 0.17   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted shares outstanding

     27,094        26,732        27,062        26,687   

Adjusted CFFO and Adjusted CFFO per share

        

Net cash provided by operating activities

   $ 1,913      $ 2,067      $ 14,084      $ 15,550   

Changes in operating assets and liabilities

     6,980        4,080        6,513        5,996   

Recurring capital expenditures

     (792     (664     (2,964     (2,331

Casualty losses, net of tax

     71        62        448        164   

Transaction costs, net of tax

     344        52        876        284   

Tax impact of Spring Meadows Transaction

     (106     —          6,142        —     

Tax impact from amended returns

     —          —          —          (2,536
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted CFFO

   $ 8,410      $ 5,597      $ 25,099      $ 17,127   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted CFFO per share

   $ 0.31      $ 0.21      $ 0.93      $ 0.64   
  

 

 

   

 

 

   

 

 

   

 

 

 

****