Exhibit 99.1
 | 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. |
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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.”
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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. |
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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.
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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.
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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 atwww.capitalsenior.comthrough 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.
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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.
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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 | ||||||
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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 | ||||||
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Total assets | $ | 462,326 | $ | 382,781 | ||||
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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 | ||||||
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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 | ) | ||||
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Total shareholders’ equity | 169,141 | 163,823 | ||||||
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Total liabilities and shareholders’ equity | $ | 462,326 | $ | 382,781 | ||||
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See accompanying notes to consolidated financial statements.
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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 | ||||||||||||
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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 | ||||||||||||
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Total expenses | 66,778 | 53,933 | 245,591 | 193,414 | ||||||||||||
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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 | ) | ||||||||
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Income before provision for income taxes | 772 | 2,851 | 5,524 | 7,675 | ||||||||||||
Provision for income taxes | (426 | ) | (1,261 | ) | (2,499 | ) | (3,421 | ) | ||||||||
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Net income | $ | 346 | $ | 1,590 | $ | 3,025 | $ | 4,254 | ||||||||
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Per share data: | ||||||||||||||||
Basic net income per share | $ | 0.01 | $ | 0.06 | $ | 0.11 | $ | 0.16 | ||||||||
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Diluted net income per share | $ | 0.01 | $ | 0.06 | $ | 0.11 | $ | 0.16 | ||||||||
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Weighted average shares outstanding — basic | 27,066 | 26,624 | 26,995 | 26,587 | ||||||||||||
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Weighted average shares outstanding — diluted | 27,094 | 26,732 | 27,062 | 26,687 | ||||||||||||
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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 | ||||||
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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 | ||||||
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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 | ||||||
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Net cash provided by(used in) financing activities | 54,388 | (7,992 | ) | |||||
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(Decrease)Increase in cash and cash equivalents | (8,965 | ) | 2,276 | |||||
Cash and cash equivalents at beginning of period | 31,248 | 28,972 | ||||||
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Cash and cash equivalents at end of period | $ | 22,283 | $ | 31,248 | ||||
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Supplemental Disclosures | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 11,266 | $ | 10,949 | ||||
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Income taxes | $ | 6,810 | $ | 2,328 | ||||
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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 | ||||||||||||||||||
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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 | ||||||||||||||||||||
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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 | % | ||||||||||||
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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 | % | ||||||||||||||||
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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 | ||||||||||||
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Adjusted EBITDAR | $ | 25,428 | $ | 20,906 | $ | 92,328 | $ | 68,602 | ||||||||
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Adjusted EBITDAR Margin | ||||||||||||||||
Adjusted EBITDAR | $ | 25,428 | $ | 20,906 | $ | 92,328 | $ | 68,602 | ||||||||
Total revenues | 71,152 | 59,908 | 263,502 | 211,929 | ||||||||||||
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Adjusted EBITDAR margin | 35.7 | % | 34.9 | % | 35.0 | % | 32.4 | % | ||||||||
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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 | ) | |||||||||||
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Adjusted net income | $ | 2,035 | $ | 2,005 | $ | 6,877 | $ | 4,660 | ||||||||
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Adjusted net income per share | $ | 0.08 | $ | 0.08 | $ | 0.25 | $ | 0.17 | ||||||||
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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 | ) | |||||||||||
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Adjusted CFFO | $ | 8,410 | $ | 5,597 | $ | 25,099 | $ | 17,127 | ||||||||
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Adjusted CFFO per share | $ | 0.31 | $ | 0.21 | $ | 0.93 | $ | 0.64 | ||||||||
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