Exhibit 99.2
| Capital Senior Living Corporation |
| Forward-Looking Statements The forward-looking statements in this presentation 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 complete the refinancing of certain of our wholly owned communities, realize the anticipated savings related to such financing, 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 licensures, 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 The Company assumes no obligation to update or supplement forward-looking statements in this presentation that become untrue because of new information, subsequent events or otherwise. 2 |
| Investment Highlights Value leader in providing quality seniors housing and care at reasonable prices Substantially all private pay with strong cash flow generation Industry benefits from need-driven demand, limited new supply and recovering housing market Improving occupancy and revenue growth Executing on accretive growth initiatives through acquisitions and conversions to higher levels of care Solid balance sheet 3 |
| Company Overview Capital Senior Living operates 101 communities in geographically concentrated regions with the capacity to serve 13,600 residents CA. 408 AR. 173 AZ. 189 CT. 178 FL. 226 IA. 122 IL. 650 IN. 1,903 KS. 169 LA. 136 MI. 346 MN. 173 MO. 526 MS . 143 NC. 593 SC. 614 NE. 599 NJ. 98 NY. 387 OH. 2,035 OK. 143 TX. 3,683 VA. 153 4 Resident Capacity |
| Resident Demographics at CSU Communities Average age of resident: 85 years Average age of resident moving in: 82 years Average stay period: 2-3 years Percent of female residents: 80% Resident turnover is primarily attributed to death or need for higher care 5 |
| The Capital Advantage: Senior Living Options Average 118 units per IL community with large common areas and amenities Supportive services, wellness programs, social, recreational, and educational events Average monthly rate of $2,420 100% private pay Average length of resident stay is 34 months Independent Living - 53% of Resident Capacity 6 |
| The Capital Advantage: Senior Living Options Average 61 units per AL community 71% of communities offer AL units Assistance with activities of daily living such as medication reminders, bathing, dressing and grooming Average monthly rate of $3,640 Substantially all private pay Average length of resident stay is 26 months Assisted Living - 42% of Resident Capacity 7 |
| The Capital Advantage: Need-driven Demand U.S. population 75+ years old is estimated to grow by 3.5 million from 2009 through 2015 Only 1.3 million units serving a population of 18.9 million seniors Current 6.9% penetration rate implies demand growth of 40,000 units per year (Population in millions) Source: NIC Investment Guide 2010 and U.S. Census Bureau U.S. Seniors Population Trends (75+ years old) Implied demand growth of 40,000 units per year 8 |
| The Capital Advantage: Limited New Supply Source: Seniors NIC MAP100 Trends 9 |
| The Capital Advantage: Senior Housing Occupancy Trends Source: Seniors NIC MAP100 Trends 10 |
| The Capital Advantage: Competitive Strengths Value leader in geographically concentrated regions Experienced on-site, regional, and corporate management Larger company economies of scale and proprietary systems that yield operating efficiencies in highly fragmented industry Strong institutional relationships (debt and equity) Solid reputation in industry and 95% resident satisfaction Employer of choice Solid balance sheet Strong Board of Directors 11 |
| The Capital Advantage: Strategy Focus on our core strengths Maximize the cash flow generated by our communities and our operations Acquire communities in geographically concentrated regions and maximize competitive strengths within each of our markets Increase levels of care through conversions to AL or Memory Care units Capitalize on the fragmented nature of the senior living industry to strategically aggregate local and regional operators Attract and retain the best talent in the senior living industry 12 |
| 2013 Business Plan Focused on operations, marketing and growth to enhance shareholder value through: Organic growth Proactive expense management Accretive acquisitions and unit conversions Utilization of technology 13 |
| 2013 Business Plan: Organic Growth Increase average rents Each 3% increase generates $10.0M of revenue Improve occupancies Each 1% generates $3M of revenue, $2M of EBITDAR and $0.05 per share of CFFO Convert units to higher levels of care Incremental $6M of revenue and $3.6M of EBITDAR Cash flow enhancing renovations and refurbishments eMarketing and website enhancements Implement software programs to optimize care plans and levels of care charges 14 |
| Operating Performance 15 Improving Occupancy Trends Same Community Financial Occupancy |
| 2013 Business Plan: External Growth Strategic acquisitions of high quality senior living communities to enhance geographic concentrations - 18% cash on cash returns (in millions except number of communities and units) 16 Q1/Q2 2012 Q4 2012 2012 Purchase Price $75.6 $105.7 $181.3 Communities 7 10 17 Units 563 804 1,367 Debt $54.8 $74.7 $129.5 Equity $20.8 $31.0 $51.8 First Year Revenue $19.4 $29.6 $49.0 First Year EBITDAR $8.0 $11.0 $19.0 First Year Cash Flow from Operations (CFFO) $3.8 $5.4 $9.2 First Year CFFO per share $0.14 $0.20 $0.34 |
| Operating Performance 17 Revenue and EBITDAR growth EBITDAR increased 92% on a 63% increase in revenue EBITDAR margin increased from 29.9% in Q1 2010 to 35.1% in Q3 2012 $ in millions |
| Income Statement: Q3 12 Comparison 2012 2011 % Increase Total Revenues $ 78.0 $ 68.2 14.4% Operating Expenses (46.3) (40.5) General & Administrative Expenses (3.1) (2.8) Other Expense (1.2) (1.1) EBITDAR $ 27.4 $ 23.8 15.0% % Margin 35.1% 34.9% Lease Expense (13.8) (13.7) Interest, Taxes and Other (11.8) (8.4) Net Income $ 1.8 $ 1.7 Earnings Per Share $ 0.07 $ 0.06 CFFO $8.9 $5.9 51.6% CFFO Per Share $ 0.33 $0.22 As adjusted in press releases (in millions, except per share) 18 |
| Balance Sheet ASSETS ASSETS Cash and Securities $ 57.5 Other Current Assets 19.3 Total Current Assets 76.8 Fixed Assets 435.8 Other Assets 48.8 TOTAL ASSETS $561.4 LIABILITIES & EQUITY LIABILITIES & EQUITY Current Liabilities $ 45.2 Long-Term Debt 281.7 Other Liabilities 64.6 Total Liabilities 391.5 Stockholders' Equity 169.9 TOTAL LIABILITIES & EQUITY $561.4 As of September 30, 2012 (in millions) 19 |
| Investment Highlights Value leader in geographically concentrated regions Need-driven demand, limited new supply and recovering housing market Experienced management team with demonstrated ability to operate, acquire and create shareholder value Substantially all private pay with minimal federal regulation Accretive acquisitions in highly fragmented industry Conversions to higher levels of care with significant revenue and cash flow growth Strong cash flow generation Solid balance sheet 20 |
| Capital Senior Living Corporation |