Exhibit 99.1
 | PRESS CONTACT: | |
| Ralph A. Beattie, Chief Financial Officer | ||
| Phone: 1-972-770-5600 |
FOR IMMEDIATE RELEASE
CAPITAL SENIOR LIVING CORPORATION
REPORTS FIRST QUARTER 2014 RESULTS
DALLAS – (BUSINESS WIRE) – May 6, 2014 – 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 first quarter of 2014. Company highlights for the first quarter include:
Operating and Financial Summary (seeNon-GAAP Financial Measures below)
| • | Revenue in the first quarter of 2014 increased 6.5% to $91.9 million, an increase of $5.6 million from the first quarter of 2013. |
| • | Average monthly rent for the consolidated communities increased 2.1% to $3,126 per occupied unit in the first quarter of 2014, an increase of $64 per occupied unit from the first quarter of 2013. |
| • | Adjusted net income for the first quarter of 2014 was $0.2 million or $0.01 per share, excluding non-recurring or non-economic items reconciled on the final page of this release. This compares to a net loss of $4.6 million, or $0.16 per share, before adjusting for these non-recurring or non-economic items. |
| • | Adjusted EBITDAR increased 1.7% to $31.0 million in the first quarter of 2014, excluding two continuing care retirement communities (“CCRC’s”) that are being re-positioned. |
| • | Adjusted Cash From Facility Operations (“CFFO”) was $7.9 million or $0.28 per share in the first quarter of 2014, excluding the two CCRC’s that are being re-positioned. Adjusted CFFO would have been approximately $0.35 per share if not for the unusual weather-related costs, real estate taxes and referral fees discussed later in this release. |
| • | The Company completed the acquisition of one senior living community in the first quarter for a purchase price of approximately $14.6 million. |
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“We are pleased to report positive results for the first quarter as we continue to recover from high levels of attrition in 2013, with growth in revenue, EBITDAR and occupancy,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “These improvements were achieved despite harsh winter weather; however, winter related expenses negatively impacted first quarter financial results. 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, to 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 first quarter of 2014, the Company completed the acquisition of a senior living community for a purchase price of approximately $14.6 million. This community enhances the Company’s geographic concentration around Ohio and is comprised of 78 units offering assisted living and memory care. |
Highlights of this transaction include:
| • | Incremental earnings of $0.2 million, or $0.01 per share. |
| • | Additional Adjusted CFFO of $0.5 million, or $0.02 per share. |
| • | Increases annual revenue by $4.5 million. |
| • | Average occupancy above 95%. |
| • | Average monthly rents are approximately $4,700. |
| • | The community was financed with approximately $11.0 million of non-recourse 12-year mortgage debt with a fixed interest rate of 5.43%. |
| • | The Company is expected to acquire approximately $84 million of high-quality senior living communities in regions with extensive operations in the second quarter of 2014, subject to customary closing conditions. In addition, the Company is conducting due diligence on approximately $34 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 third quarter of 2014. |
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Financial Results - First Quarter
For the first quarter of 2014, the Company reported revenue of $91.9 million, compared to revenue of $86.2 million in the first quarter of 2013. Resident and healthcare revenue increased from the first quarter of the prior year by approximately $5.4 million, or 6.4%, largely as a result of acquiring 11 communities since the first quarter of 2013. The number of consolidated communities increased from 99 in the first quarter of 2013 to 110 in the first quarter of 2014.
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 $3,126 per occupied unit in the first quarter of 2014, an increase of $64, or 2.1%, over the first quarter of 2013. Financial occupancy of the consolidated portfolio averaged 87.1% in the first quarter of 2014.
As a percentage of resident and healthcare revenue, operating expenses were 61.8% in the first quarter of 2014, compared to 59.1% in the first quarter of 2013. Margins were negatively impacted by a particularly harsh winter, including higher costs for utilities and snow removal. Margins were also negatively impacted by 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. Higher move-ins during the quarter resulted in higher referral fees to third parties. The unusual weather-related costs, along with higher real estate taxes and higher referral fees totaled approximately $1.6 million and increased operating expenses by 1.8% of revenue. Operating expenses for the first quarter of 2014 were $55.7 million, an increase of $5.6 million from the first quarter of 2013, primarily due to 11 additional communities now being consolidated.
General and administrative expenses as a percentage of revenues under management were 4.9% in the first quarter of 2014, excluding transaction costs of approximately $0.5 million.
Adjusted EBITDAR for the first quarter of 2014 was approximately $31.0 million, an increase of $0.5 million, or 1.7%, from the first quarter of 2013. Excluding the two CCRC’s being re-positioned, EBITDAR margin for the first quarter of 2014 was 34.7%. EBITDAR margin would have been 36.5% if not for the unusual weather-related costs, real estate taxes and referral fees discussed above.
Adjusted net income for the first quarter of 2014 was $0.2 million, excluding non-recurring or non-economic items reconciled on the final page of this release. This compares to a net loss of $4.6 million, or $0.16 per share, before adjusting for these non-recurring or non-economic items. Adjusted CFFO was $7.9 million or $0.28 per share in the first quarter of 2014. Adjusted CFFO would have been approximately $0.07 per share higher if not for the unusual weather-related costs, real estate taxes and referral fees discussed above.
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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 first quarter of 2014 increased 0.8% versus the first quarter of 2013. Same-community expenses increased 5.1% from the first quarter of the prior year. The increase in expenses was primarily due to higher costs from the harsh winter, including heating costs and snow removal, along with real estate taxes and referral fees. Excluding these unusual items, same community expenses increased 1.0% and net operating income increased 0.8% from the fourth quarter of 2013. Same-community occupancies were 86.9%, a 20 basis point sequential improvement from the fourth quarter of 2013. Average rents were $3,115 per occupied unit, or 1.2%, higher than the first quarter of the prior year.
Capital expenditures for the first quarter of 2014 were approximately $3.1 million, representing $2.2 million of investment spending and $0.9 million of recurring capital expenditures. If annualized, spending for recurring capital expenditures was approximately $325 per unit.
Balance Sheet
The Company ended the quarter with $23.0 million of cash and cash equivalents, including restricted cash. During the quarter, the Company invested $3.6 million of cash as equity to complete an acquisition and spent $3.1 million on capital improvements.
As of March 31, 2014, the Company financed its 60 owned communities with mortgages totaling $485.0 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.
The Company’s mortgage debt includes a loan portfolio of 15 assets totaling approximately $112.7 million as of March 31, 2014. Originally structured as 10-year fixed rate mortgages with a maturity date of July 2015, this loan portfolio has a blended fixed rate of 5.96%. The Company is pursuing a refinance of this loan portfolio to take advantage of lower interest rates and the appreciation in value of the Company’s owned communities. Based on current rates, the Company expects to lower the interest rate on this portfolio approximately 150 basis points. This anticipated refinancing is expected to close at the end of the second quarter of 2014, generating approximately $30 million in additional proceeds and lowering the Company’s overall borrowing costs. Additional cash is expected to be generated upon the planned sale of certain non-core owned communities in the third quarter of 2014. Cash on hand, cash flow from operations, net proceeds from this anticipated refinancing and community sales are expected to be sufficient for working capital, prudent reserves and equity needed to fund the Company’s acquisition program.
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Q1 2014 Conference Call Information
The Company will host a conference call with senior management to discuss the Company’s first quarter financial results. The call will be held on Tuesday, May 6, 2014 at 5:00 p.m. Eastern Time. The call-in number is 913-312-1227, confirmation code 3998352. A link to a simultaneous webcast of the teleconference will be available atwww.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 May 6, 2014 at 8:00 p.m. Eastern Time, until May 13, 2014 at 8:00 p.m. Eastern Time. To access the conference call replay, call 719-457-0820, confirmation code 3998352. The conference call will also be made available for playback via the Company’s corporate website,www.capitalsenior.com, beginning May 7, 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 113 senior living communities in geographically concentrated regions with an aggregate capacity of approximately 14,700 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, refinancing, community sales, 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, visitwww.capitalsenior.com.
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)
| March 31, | December 31, | |||||||
| 2014 | 2013 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 11,601 | $ | 13,611 | ||||
Restricted cash | 11,431 | 11,425 | ||||||
Accounts receivable, net | 5,277 | 3,752 | ||||||
Accounts receivable from affiliates | 197 | 416 | ||||||
Federal and state income taxes receivable | 4,941 | 5,123 | ||||||
Deferred taxes | 708 | 845 | ||||||
Property tax and insurance deposits | 7,587 | 11,036 | ||||||
Prepaid expenses and other | 4,372 | 6,605 | ||||||
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Total current assets | 46,114 | 52,813 | ||||||
Property and equipment, net | 659,460 | 649,967 | ||||||
Investments in unconsolidated joint ventures | 1,009 | 1,010 | ||||||
Other assets, net | 38,099 | 41,759 | ||||||
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Total assets | $ | 744,682 | $ | 745,549 | ||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,356 | $ | 3,813 | ||||
Accounts payable to affiliates | 3 | 1 | ||||||
Accrued expenses | 25,996 | 29,321 | ||||||
Current portion of notes payable | 9,974 | 11,918 | ||||||
Current portion of deferred income | 11,418 | 11,215 | ||||||
Current portion of capital lease and financing obligations | 959 | 948 | ||||||
Customer deposits | 1,691 | 1,489 | ||||||
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Total current liabilities | 53,397 | 58,705 | ||||||
Deferred income | 17,502 | 18,021 | ||||||
Capital lease and financing obligations, net of current portion | 40,926 | 41,093 | ||||||
Deferred taxes | 708 | 845 | ||||||
Other long-term liabilities | 1,526 | 1,559 | ||||||
Notes payable, net of current portion | 475,888 | 467,376 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Preferred stock, $.01 par value: | — | — | ||||||
Common stock, $.01 par value: | 294 | 292 | ||||||
Additional paid-in capital | 145,151 | 143,721 | ||||||
Retained earnings | 10,224 | 14,871 | ||||||
Treasury stock, at cost – 350 shares | (934 | ) | (934 | ) | ||||
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Total shareholders’ equity | 154,735 | 157,950 | ||||||
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Total liabilities and shareholders’ equity | $ | 744,682 | $ | 745,549 | ||||
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CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited, in thousands, except per share data)
| Three Months Ended March 31, | ||||||||
| 2014 | 2013 | |||||||
Revenues: | ||||||||
Resident and health care revenue | $ | 90,174 | $ | 84,775 | ||||
Affiliated management services revenue | 208 | 185 | ||||||
Community reimbursement revenue | 1,475 | 1,265 | ||||||
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Total revenues | 91,857 | 86,225 | ||||||
Expenses: | ||||||||
Operating expenses (exclusive of facility lease expense and depreciation and amortization expense shown below) | 55,691 | 50,120 | ||||||
General and administrative expenses | 4,971 | 4,922 | ||||||
Facility lease expense | 14,794 | 14,270 | ||||||
Stock-based compensation expense | 1,360 | 996 | ||||||
Depreciation and amortization expense | 10,951 | 11,889 | ||||||
Community reimbursement expense | 1,475 | 1,265 | ||||||
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Total expenses | 89,242 | 83,462 | ||||||
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Income from operations | 2,615 | 2,763 | ||||||
Other income (expense): | ||||||||
Interest income | 12 | 104 | ||||||
Interest expense | (7,137 | ) | (5,684 | ) | ||||
Gain on disposition of assets, net | 4 | 1 | ||||||
Equity in earnings of unconsolidated joint ventures, net | 41 | 3 | ||||||
Other income | 8 | 12 | ||||||
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Loss before (provision) benefit for income taxes | (4,457 | ) | (2,801 | ) | ||||
(Provision) Benefit for income taxes | (190 | ) | 725 | |||||
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Net loss | $ | (4,647 | ) | $ | (2,076 | ) | ||
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Per share data: | ||||||||
Basic net loss per share | $ | (0.16 | ) | $ | (0.07 | ) | ||
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Diluted net loss per share | $ | (0.16 | ) | $ | (0.07 | ) | ||
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Weighted average shares outstanding — basic | 28,146 | 27,584 | ||||||
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Weighted average shares outstanding — diluted | 28,146 | 27,584 | ||||||
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Comprehensive loss | $ | (4,647 | ) | $ | (2,076 | ) | ||
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CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
| Three Months Ended March 31, | ||||||||
| 2014 | 2013 | |||||||
Operating Activities | ||||||||
Net loss | $ | (4,647 | ) | $ | (2,076 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 10,951 | 11,889 | ||||||
Amortization of deferred financing charges | 320 | 365 | ||||||
Amortization of deferred lease costs and lease intangibles | 308 | 325 | ||||||
Deferred income | (316 | ) | (1,070 | ) | ||||
Deferred income taxes | — | (175 | ) | |||||
Gain on disposition of assets, net | (4 | ) | (1 | ) | ||||
Equity in earnings of unconsolidated joint ventures, net | (41 | ) | (3 | ) | ||||
Provision for bad debts | 238 | 20 | ||||||
Stock based compensation expense | 1,360 | 996 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (1,763 | ) | (2,514 | ) | ||||
Accounts receivable from affiliates | 219 | 360 | ||||||
Property tax and insurance deposits | 3,449 | 2,559 | ||||||
Prepaid expenses and other | 2,233 | 2,292 | ||||||
Other assets | 438 | (493 | ) | |||||
Accounts payable | (455 | ) | (4,885 | ) | ||||
Accrued expenses | (3,325 | ) | (1,480 | ) | ||||
Federal and state income taxes receivable | 182 | (564 | ) | |||||
Customer deposits | 202 | 3 | ||||||
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Net cash provided by operating activities | 9,349 | 5,548 | ||||||
Investing Activities | ||||||||
Capital expenditures | (3,106 | ) | (2,135 | ) | ||||
Cash paid for acquisitions | (14,600 | ) | (6,741 | ) | ||||
Proceeds from disposition of assets | 4 | — | ||||||
Distributions from joint ventures | 42 | 42 | ||||||
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Net cash used in investing activities | (17,660 | ) | (8,834 | ) | ||||
Financing Activities | ||||||||
Proceeds from notes payable | 11,000 | 16,381 | ||||||
Repayments of notes payable | (4,432 | ) | (14,447 | ) | ||||
Increase in restricted cash | (6 | ) | (6 | ) | ||||
Cash payments for capital lease obligations | (156 | ) | (143 | ) | ||||
Cash proceeds from the issuance of common stock | 135 | 1,271 | ||||||
Excess tax benefits on stock options exercised | (63 | ) | (652 | ) | ||||
Deferred financing charges paid | (177 | ) | (132 | ) | ||||
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Net cash provided by financing activities | 6,301 | 2,272 | ||||||
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Decrease in cash and cash equivalents | (2,010 | ) | (1,014 | ) | ||||
Cash and cash equivalents at beginning of period | 13,611 | 18,737 | ||||||
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Cash and cash equivalents at end of period | $ | 11,601 | $ | 17,723 | ||||
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Supplemental Disclosures | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 6,429 | $ | 5,150 | ||||
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Income taxes | $ | 44 | $ | 23 | ||||
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Capital Senior Living Corporation
Supplemental Information
| Communities | Average Resident Capacity | Average Units | ||||||||||||||||||||||
| Q1 14 | Q1 13 | Q1 14 | Q1 13 | Q1 14 | Q1 13 | |||||||||||||||||||
Portfolio Data | ||||||||||||||||||||||||
I. Community Ownership / Management | ||||||||||||||||||||||||
Consolidated communities | ||||||||||||||||||||||||
Owned | 60 | 49 | 7,689 | 6,744 | 6,124 | 5,417 | ||||||||||||||||||
Leased | 50 | 50 | 6,333 | 6,298 | 5,024 | 5,029 | ||||||||||||||||||
Joint Venture communities (equity method) | 3 | 3 | 674 | 674 | 434 | 433 | ||||||||||||||||||
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Total | 113 | 103 | 14,696 | 13,716 | 11,582 | 10,879 | ||||||||||||||||||
Independent living | 7,597 | 7,185 | 6,220 | 6,180 | ||||||||||||||||||||
Assisted living | 7,099 | 5,816 | 5,362 | 4,531 | ||||||||||||||||||||
Continuing Care Retirement Communities | — | 715 | — | 168 | ||||||||||||||||||||
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Total | 14,696 | 13,716 | 11,582 | 10,879 | ||||||||||||||||||||
II. Percentage of Operating Portfolio | ||||||||||||||||||||||||
Consolidated communities | ||||||||||||||||||||||||
Owned | 53.1 | % | 48.0 | % | 52.3 | % | 49.2 | % | 52.9 | % | 49.8 | % | ||||||||||||
Leased | 44.2 | % | 49.0 | % | 43.1 | % | 45.9 | % | 43.4 | % | 46.2 | % | ||||||||||||
Joint Venture communities (equity method) | 2.7 | % | 3.0 | % | 4.6 | % | 4.9 | % | 3.7 | % | 4.0 | % | ||||||||||||
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Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
Independent living | 51.7 | % | 52.4 | % | 53.7 | % | 56.8 | % | ||||||||||||||||
Assisted living | 48.3 | % | 42.4 | % | 46.3 | % | 41.7 | % | ||||||||||||||||
Continuing Care Retirement Communities | — | 5.2 | % | — | 1.5 | % | ||||||||||||||||||
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Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||
CAPITAL/Page 11
Capital Senior Living Corporation
Supplemental Information (excludes 2 communities being re-positioned)
| Q1 14 | Q1 13 | |||||||
Selected Operating Results | ||||||||
I. Owned communities | ||||||||
Number of communities | 58 | 47 | ||||||
Resident capacity | 7,144 | 6,029 | ||||||
Unit capacity | 5,675 | 4,800 | ||||||
Financial occupancy (1) | 87.9 | % | 88.4 | % | ||||
Revenue (in millions) | 42.9 | 34.9 | ||||||
Operating expenses (in millions) (2) | 24.7 | 19.1 | ||||||
Operating margin | 43 | % | 45 | % | ||||
Average monthly rent | 2,865 | 2,744 | ||||||
II. Leased communities | ||||||||
Number of communities | 50 | 50 | ||||||
Resident capacity | 6,333 | 6,298 | ||||||
Unit capacity | 5,024 | 5,029 | ||||||
Financial occupancy (1) | 86.1 | % | 86.6 | % | ||||
Revenue (in millions) | 44.5 | 44.1 | ||||||
Operating expenses (in millions) (2) | 22.6 | 21.7 | ||||||
Operating margin | 49 | % | 51 | % | ||||
Average monthly rent | 3,428 | 3,372 | ||||||
III. Consolidated communities | ||||||||
Number of communities | 108 | 97 | ||||||
Resident capacity | 13,477 | 12,327 | ||||||
Unit capacity | 10,700 | 9,829 | ||||||
Financial occupancy (1) | 87.1 | % | 87.5 | % | ||||
Revenue (in millions) | 87.4 | 79.0 | ||||||
Operating expenses (in millions) (2) | 47.3 | 40.8 | ||||||
Operating margin | 46 | % | 48 | % | ||||
Average monthly rent | 3,126 | 3,062 | ||||||
IV. Communities under management | ||||||||
Number of communities | 111 | 100 | ||||||
Resident capacity | 14,151 | 13,001 | ||||||
Unit capacity | 11,133 | 10,262 | ||||||
Financial occupancy (1) | 87.1 | % | 87.2 | % | ||||
Revenue (in millions) | 91.5 | 82.7 | ||||||
Operating expenses (in millions) (2) | 49.6 | 42.9 | ||||||
Operating margin | 46 | % | 48 | % | ||||
Average monthly rent | 3,145 | 3,079 | ||||||
V. Same communities under management | ||||||||
Number of communities | 99 | 99 | ||||||
Resident capacity | 12,962 | 12,932 | ||||||
Unit capacity | 10,244 | 10,245 | ||||||
Financial occupancy (1) | 86.9 | % | 87.2 | % | ||||
Revenue (in millions) | 83.2 | 82.5 | ||||||
Operating expenses (in millions) (2) | 44.6 | 42.8 | ||||||
Operating margin | 46 | % | 48 | % | ||||
Average monthly rent | 3,115 | 3,077 | ||||||
VI. General and Administrative expenses as a percent of Total Revenues under Management | ||||||||
First Quarter (3) | 4.9 | % | 5.1 | % | ||||
VII. Consolidated Mortgage Debt Information (in thousands, except interest rates) (excludes insurance premium and auto financing) | ||||||||
Total fixed rate mortgage debt | 462,445 | 363,956 | ||||||
Total variable rate mortgage debt | 22,522 | — | ||||||
Weighted average interest rate | 5.25 | % | 5.24 | % | ||||
| (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. |
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CAPITAL SENIOR LIVING CORPORATION
NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
| Three Months Ended March 31, | ||||||||
| 2014 | 2013 | |||||||
Adjusted EBITDAR |
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Net income from operations | $ | 2,615 | $ | 2,763 | ||||
Depreciation and amortization expense | 10,951 | 11,889 | ||||||
Stock-based compensation expense | 1,360 | 996 | ||||||
Facility lease expense | 14,794 | 14,270 | ||||||
Provision for bad debts | 238 | 20 | ||||||
Casualty losses | 314 | 88 | ||||||
Transaction costs | 487 | 424 | ||||||
CCRC’s being repositioned | 208 | — | ||||||
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Adjusted EBITDAR | $ | 30,967 | $ | 30,450 | ||||
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Adjusted EBITDAR Margin | ||||||||
Adjusted EBITDAR | $ | 30,967 | $ | 30,450 | ||||
Total revenues | $ | 91,857 | $ | 86,225 | ||||
CCRC’s being repositioned | (2,709 | ) | — | |||||
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Adjusted revenues | $ | 89,148 | $ | 86,225 | ||||
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Adjusted EBITDAR margin | 34.7 | % | 35.3 | % | ||||
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Adjusted net income and net income per share | ||||||||
Net loss | $ | (4,647 | ) | $ | (2,076 | ) | ||
Casualty losses, net of tax | 198 | 55 | ||||||
Transaction costs, net of tax | 307 | 267 | ||||||
Resident lease amortization, net of tax | 2,205 | 3,602 | ||||||
Gain on disposition of assets, net of tax | (3 | ) | (1 | ) | ||||
Deferred tax asset valuation allowance | 1,692 | — | ||||||
CCRC’s being repositioned, net of tax | 503 | — | ||||||
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Adjusted net income | $ | 255 | $ | 1,847 | ||||
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Adjusted net income per share | $ | 0.01 | $ | 0.07 | ||||
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Diluted shares outstanding | 28,153 | 27,708 | ||||||
Adjusted CFFO and Adjusted CFFO per share | ||||||||
Net loss | $ | (4,647 | ) | $ | (2,076 | ) | ||
Non-cash charges, net | 12,816 | 12,346 | ||||||
Recurring capital expenditures | (1,028 | ) | (948 | ) | ||||
Casualty losses, net of tax | 198 | 55 | ||||||
Transaction costs | 487 | 424 | ||||||
Tax impact of Spring Meadows Transaction | (106 | ) | (106 | ) | ||||
Tax impact of lease modification | — | — | ||||||
CCRC’s being repositioned, net of tax | 179 | — | ||||||
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Adjusted CFFO | $ | 7,899 | $ | 9,695 | ||||
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Adjusted CFFO per share | $ | 0.28 | $ | 0.35 | ||||
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****