Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 27, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CSU | |
Entity Registrant Name | CAPITAL SENIOR LIVING CORP | |
Entity Central Index Key | 1,043,000 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 30,474,463 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 9,186 | $ 34,026 |
Restricted cash | 13,372 | 13,297 |
Accounts receivable, net | 8,680 | 13,675 |
Property tax and insurance deposits | 12,912 | 14,665 |
Prepaid expenses and other | 3,978 | 6,365 |
Total current assets | 48,128 | 82,028 |
Property and equipment, net | 1,105,270 | 1,032,430 |
Other assets, net | 18,233 | 31,323 |
Total assets | 1,171,631 | 1,145,781 |
Current liabilities: | ||
Accounts payable | 3,975 | 5,051 |
Accrued expenses | 36,663 | 39,064 |
Current portion of notes payable, net of deferred loan costs | 16,482 | 17,889 |
Current portion of deferred income | 14,245 | 16,284 |
Current portion of capital lease and financing obligations | 2,806 | 1,339 |
Federal and state income taxes payable | 110 | 218 |
Customer deposits | 1,428 | 1,545 |
Total current liabilities | 75,709 | 81,390 |
Deferred income | 10,504 | 12,205 |
Capital lease and financing obligations, net of current portion | 49,857 | 37,439 |
Other long-term liabilities | 15,273 | 15,325 |
Notes payable, net of deferred loan costs and current portion | 935,345 | 882,504 |
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 – 30,478 and 30,012 in 2017 and 2016, respectively | 310 | 305 |
Additional paid-in capital | 177,610 | 171,599 |
Retained deficit | (89,547) | (51,556) |
Treasury stock, at cost – 494 shares in 2017 and 2016 | (3,430) | (3,430) |
Total shareholders’ equity | 84,943 | 116,918 |
Total liabilities and shareholders’ equity | $ 1,171,631 | $ 1,145,781 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 65,000,000 | 65,000,000 |
Common stock, shares issued | 30,478,000 | 30,012,000 |
Common stock, shares outstanding | 30,478,000 | 30,012,000 |
Treasury stock, shares | 494,000 | 494,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | ||||
Resident revenue | $ 117,318 | $ 111,436 | $ 350,026 | $ 331,643 |
Expenses: | ||||
Operating expenses (exclusive of facility lease expense and depreciation and amortization expense shown below) | 74,636 | 69,622 | 220,703 | 203,307 |
General and administrative expenses | 5,361 | 5,749 | 17,678 | 16,969 |
Facility lease expense | 13,943 | 15,500 | 42,498 | 46,150 |
Loss on facility lease termination | 12,858 | |||
Stock-based compensation expense | 1,962 | 2,479 | 5,833 | 7,482 |
Depreciation and amortization expense | 16,903 | 14,400 | 50,862 | 44,103 |
Total expenses | 112,805 | 107,750 | 350,432 | 318,011 |
Income (Loss) from operations | 4,513 | 3,686 | (406) | 13,632 |
Other income (expense): | ||||
Interest income | 19 | 15 | 51 | 50 |
Interest expense | (12,531) | (10,636) | (36,940) | (30,966) |
Loss on disposition of assets, net | (1) | (16) | (126) | (53) |
Other income | 1 | 6 | 233 | |
Loss before provision for income taxes | (7,999) | (6,951) | (37,415) | (17,104) |
Provision for income taxes | (133) | (126) | (394) | (403) |
Net loss | $ (8,132) | $ (7,077) | $ (37,809) | $ (17,507) |
Per share data: | ||||
Basic net loss per share | $ (0.28) | $ (0.24) | $ (1.28) | $ (0.61) |
Diluted net loss per share | $ (0.28) | $ (0.24) | $ (1.28) | $ (0.61) |
Weighted average shares outstanding — basic | 29,512 | 28,959 | 29,427 | 28,879 |
Weighted average shares outstanding — diluted | 29,512 | 28,959 | 29,427 | 28,879 |
Comprehensive loss | $ (8,132) | $ (7,077) | $ (37,809) | $ (17,507) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Activities | ||
Net loss | $ (37,809) | $ (17,507) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 50,862 | 44,103 |
Amortization of deferred financing charges | 1,216 | 870 |
Amortization of deferred lease costs and lease intangibles | 647 | 434 |
Amortization of lease incentives | (950) | (563) |
Deferred income | (899) | 15 |
Lease incentives | 5,159 | 5,858 |
Loss on facility lease termination | 12,858 | |
Loss on disposition of assets, net | 126 | 53 |
Provision for bad debts | 1,355 | 1,214 |
Stock-based compensation expense | 5,833 | 7,482 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,834) | (8,883) |
Property tax and insurance deposits | 1,753 | 1,189 |
Prepaid expenses and other | 2,387 | (2,112) |
Other assets | 5,149 | (462) |
Accounts payable | (1,076) | (1,053) |
Accrued expenses | (2,400) | (1,586) |
Other liabilities | 3,649 | 8,652 |
Federal and state income taxes receivable/payable | (108) | (97) |
Deferred resident revenue | (1,520) | (784) |
Customer deposits | (117) | (249) |
Net cash provided by operating activities | 42,281 | 36,574 |
Investing Activities | ||
Capital expenditures | (30,165) | (47,311) |
Cash paid for acquisitions | (85,000) | (109,750) |
Proceeds from disposition of assets | 16 | 32 |
Net cash used in investing activities | (115,149) | (157,029) |
Financing Activities | ||
Proceeds from notes payable | 66,584 | 112,492 |
Repayments of notes payable | (15,414) | (12,881) |
Increase in restricted cash | (75) | (133) |
Cash payments for capital lease and financing obligations | (2,117) | (989) |
Cash proceeds from the issuance of common stock | 66 | |
Excess tax benefits on stock options exercised | (27) | |
Purchases of treasury stock | (2,496) | |
Deferred financing charges paid | (950) | (1,830) |
Net cash provided by financing activities | 48,028 | 94,202 |
Decrease in cash and cash equivalents | (24,840) | (26,253) |
Cash and cash equivalents at beginning of period | 34,026 | 56,087 |
Cash and cash equivalents at end of period | 9,186 | 29,834 |
Cash paid during the period for: | ||
Interest | 35,108 | 30,056 |
Income taxes | $ 534 | $ 564 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION Capital Senior Living Corporation, a Delaware corporation (together with its subsidiaries, the “Company”), is one of the largest operators of senior housing communities in the United States in terms of resident capacity. The Company owns, operates and manages senior housing communities in geographically concentrated regions throughout the United States. As of September 30, 2017, the Company operated 129 senior housing communities in 23 states with an aggregate capacity of approximately 16,500 residents, including 83 senior housing communities that the Company owned and 46 senior housing communities that the Company leased. As of September 30, 2017, the Company also operated one home care agency. The accompanying consolidated financial statements include the financial statements of Capital Senior Living Corporation and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. The accompanying Consolidated Balance Sheet, as of December 31, 2016, has been derived from audited consolidated financial statements of the Company for the year ended December 31, 2016, and the accompanying unaudited consolidated financial statements, as of and for the three and nine month periods ended September 30, 2017 and 2016, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States have not been included pursuant to those rules and regulations. For further information, refer to the financial statements and notes thereto for the year ended December 31, 2016, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2017. In the opinion of the Company, the accompanying consolidated financial statements contain all adjustments (all of which were normal recurring accruals) necessary to present fairly the Company’s financial position as of September 30, 2017, results of operations for the three and nine month periods ended September 30, 2017 and 2016, and cash flows for the nine month periods ended September 30, 2017 and 2016. The results of operations for the three and nine month periods ended September 30, 2017, are not necessarily indicative of the results for the year ending December 31, 2017. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Lease Accounting The Company determines whether to account for its leases as operating, capital or financing leases depending on the underlying terms of each lease agreement. This determination of classification is complex and requires significant judgment relating to certain information including the estimated fair value and remaining economic life of the community, the Company’s cost of funds, minimum lease payments and other lease terms. As of September 30, 2017, the Company leased 46 senior housing communities, 44 of which the Company classified as operating leases and two of which the Company classified as capital lease and financing obligations. The Company incurs lease acquisition costs and amortizes these costs over the term of the respective lease agreement. Certain leases entered into by the Company qualified as sale/leaseback transactions, and as such, any related gains have been deferred and are being amortized over the respective lease term. Facility lease expense in the Company’s Consolidated Statements of Operations and Comprehensive Loss includes rent expense plus amortization expense relating to leasehold acquisition costs slightly offset by the amortization of deferred gains and lease incentives. There are various financial covenants and other restrictions in the Company’s lease agreements. The Company was in compliance with all of its lease covenants at September 30, 2017. On January 31, 2017, the Company acquired the underlying real estate associated with four of its operating leases. For additional information refer to Note 3, “Acquisitions.” Credit Risk and Allowance for Doubtful Accounts The Company’s resident receivables are generally due within 30 days from the date billed. Accounts receivable are reported net of an allowance for doubtful accounts of $4.7 million and $4.3 million at September 30, 2017, and December 31, 2016, respectively, and represent the Company’s estimate of the amount that ultimately will be collected. The adequacy of the Company’s allowance for doubtful accounts is reviewed on an ongoing basis, using historical payment trends, write-off experience, analyses of receivable portfolios by payor source and aging of receivables, as well as a review of specific accounts, and adjustments are made to the allowance as necessary. Credit losses on resident receivables have historically been within management’s estimates, and management believes that the allowance for doubtful accounts adequately provides for expected losses. Employee Health and Dental Benefits, Workers’ Compensation, and Insurance Reserves The Company offers certain full-time employees an option to participate in its health and dental plans. The Company is self-insured up to certain limits and is insured if claims in excess of these limits are incurred. The cost of employee health and dental benefits, net of employee contributions, is shared between the corporate office and the senior housing communities based on the respective number of plan participants. Funds collected are used to pay the actual program costs including estimated annual claims, third-party administrative fees, network provider fees, communication costs, and other related administrative costs incurred by the plans. Claims are paid as they are submitted to the Company’s third-party administrator. The Company records a liability for outstanding claims and claims that have been incurred but not yet reported. This liability is based on the historical claim reporting lag and payment trends of health insurance claims. Management believes that the liability for outstanding losses and expenses is adequate to cover the ultimate cost of losses and expenses incurred at September 30, 2017; however, actual claims and expenses may differ. Any subsequent changes in estimates are recorded in the period in which they are determined. The Company uses a combination of insurance and self-insurance for workers’ compensation. Determining the reserve for workers’ compensation losses and costs that the Company has incurred as of the end of a reporting period involves significant judgments based on projected future events including potential settlements for pending claims, known incidents which may result in claims, estimates of incurred but not yet reported claims, changes in insurance premiums, estimated litigation costs and other factors. The Company regularly adjusts these estimates to reflect changes in the foregoing factors. However, since this reserve is based on estimates, the actual expenses incurred may differ from the amounts reserved. Any subsequent changes in estimates are recorded in the period in which they are determined. Income Taxes Income taxes are computed using the asset and liability method and current income taxes are recorded based on amounts refundable or payable in the current year. The effective tax rates for the three and nine month periods ended September 30, 2017 and 2016 differ from the statutory tax rates due to state income taxes, permanent tax differences, and changes in the deferred tax asset valuation allowance. The Company is impacted by the Texas Margin Tax (“TMT”), which effectively imposes tax on modified gross revenues for communities within the State of Texas. During each of the three and nine month periods ended September 30, 2017 and 2016, the Company consolidated 38 Texas communities, and the TMT increased the overall provision for income taxes. Deferred income taxes are recorded based on the estimated future tax effects of loss carryforwards and temporary differences between financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income in the years in which we expect those carryforwards and temporary differences to be recovered or settled. Management regularly evaluates the future realization of deferred tax assets and provides a valuation allowance, if considered necessary, based on such evaluation. As part of the evaluation, management has evaluated taxable income in carryback years, future reversals of taxable temporary differences, feasible tax planning strategies, and future expectations of income. Based upon this analysis, an adjustment to the valuation allowance of $3.1 million and $3.0 million was recorded during the third quarters of fiscal 2017 and 2016, respectively, to increase the valuation allowance provided to $50.0 million and $28.7 million at September 30, 2017 and 2016, respectively, and reduce the Company’s net deferred tax assets to the amount that is more likely than not to be realized. Cumulative adjustments to the valuation allowance for the first nine months of fiscal 2017 and 2016 were $19.1 million and $6.4 million, respectively. The adjustment to the valuation allowance during the first nine months of fiscal 2017 included an increase of $5.3 million for the adoption of ASU 2016-09, which was effective for the Company as of January 1, 2017, to recognize net operating loss carryforwards attributable to excess tax benefits on stock compensation that had not been previously recognized to additional paid in capital. However, in the event that we were to determine that it would be more likely than not that the Company would realize the benefit of deferred tax assets in the future in excess of their net recorded amounts, adjustments to deferred tax assets would increase net income in the period such determination was made . The Company evaluates uncertain tax positions through consideration of accounting and reporting guidance on criteria, measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition that is intended to provide better financial statement comparability among different companies. The Company is required to recognize a tax benefit in its financial statements for an uncertain tax position only if management’s assessment is that such position is “more likely than not” (i.e., a greater than 50% likelihood) to be upheld on audit based only on the technical merits of the tax position. The Company’s policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as income tax expense. The Company is generally no longer subject to federal and state income tax audits for tax years prior to 2013. Net Loss Per Share Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Potentially dilutive securities consist of unvested restricted shares and shares that could be issued under outstanding stock options. Potentially dilutive securities are excluded from the computation of net loss per common share if their effect is antidilutive. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except for per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net loss $ (8,132 ) $ (7,077 ) $ (37,809 ) $ (17,507 ) Net loss allocated to unvested restricted shares — — — — Undistributed net loss allocated to common shares $ (8,132 ) $ (7,077 ) $ (37,809 ) $ (17,507 ) Weighted average shares outstanding – basic 29,512 28,959 29,427 28,879 Effects of dilutive securities: Employee equity compensation plans — — — — Weighted average shares outstanding – diluted 29,512 28,959 29,427 28,879 Basic net loss per share – common shareholders $ (0.28 ) $ (0.24 ) $ (1.28 ) $ (0.61 ) Diluted net loss per share – common shareholders $ (0.28 ) $ (0.24 ) $ (1.28 ) $ (0.61 ) Awards of unvested restricted stock representing approximately 957,000 and 1,028,000 shares were outstanding for the three months ended September 30, 2017 and 2016, respectively, and awards of unvested restricted stock representing approximately 884,000 and 1,038,000 shares were outstanding for the nine months ended September 30, 2017 and 2016, respectively, and were antidilutive. Treasury Stock The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ equity. All shares acquired by the Company have been purchased in open-market transactions. There were no repurchases of the Company’s common stock during the nine month period ended September 30, 2017. Recently Issued Accounting Guidance In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-01, Business Combinations – Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 3. ACQUISITIONS Fiscal 2017 Effective January 31, 2017 (the “Closing Date”), the Company acquired the underlying real estate through an asset acquisition associated with four of the senior housing communities previously leased from Ventas, Inc. (“Ventas”) for an acquisition price of $85.0 million (the “Four Property Lease Transaction”). The Company obtained interest only, bridge financing from Berkadia Commercial Mortgage LLC (“Berkadia”) for $65.0 million of the acquisition price with an initial variable interest rate of LIBOR plus 4.0% and a 36-month term, with the balance of the acquisition price paid from the Company’s existing cash resources. Additionally, the Company agreed to continue paying $2.3 million of the annual rents associated with the four communities acquired over the remaining lease term of the seven communities remaining in the Ventas Lease Portfolio. As such, the total additional lease payments to be paid over the remaining lease term were discounted back to the Closing Date utilizing a credit-adjusted risk-free rate to calculate $16.0 million for the fair value of the lease termination financing obligation. The fair value of the four communities acquired was determined to approximate $88.1 million. The fair values of the property, plant, and equipment of the acquired communities were determined utilizing a direct capitalization method considering facility net operating income and market capitalization rates. These fair value measurements were based on current market conditions as of the acquisition date and are considered Level 3 measurements (fair value measurements using significant unobservable inputs) within the fair value hierarchy of ASC 820-10, Fair Value Measurement As a result of this acquisition, the Company recorded additions to property and equipment of approximately $88.1 million within the Company’s Consolidated Balance Sheets which will be depreciated or amortized over the estimated useful lives. The purchase accounting for the Springfield Transaction and Cincinnati Transaction, as defined below, which closed during fiscal 2016, was finalized during the first quarter of fiscal 2017 and valuation adjustments resulted in the Company reclassifying approximately $1.3 million from property and equipment to other assets to reflect the final purchase price allocation. Fiscal 2016 Effective November 2, 2016, the Company closed the acquisition of one senior housing community located in Cincinnati, Ohio, for $29.0 million (the “Cincinnati Transaction”). The community consists of 45 independent living units and 77 assisted living units. The Company incurred approximately $0.2 million in transaction costs related to this acquisition which have been included in general and administrative expenses within the Company’s Consolidated Statements of Operations and Comprehensive Loss. The Company obtained financing from Fannie Mae for approximately $22.0 million of the acquisition price at a fixed interest rate of 4.24% with a 10-year term with the balance of the acquisition price paid from the Company’s existing cash resources. Effective September 30, 2016, the Company closed the acquisition of one senior housing community located in Springfield, Massachusetts, for $27.0 million (the “Springfield Transaction”). The community consists of 97 independent living units and 90 assisted living units. The Company incurred approximately $0.3 million in transaction costs related to this acquisition which have been included in general and administrative expenses within the Company’s Consolidated Statements of Operations and Comprehensive Loss. The Company obtained financing from Fannie Mae for $20.3 million of the acquisition price at a fixed interest rate of 4.10% with a 10-year term with the balance of the acquisition price paid from the Company’s existing cash resources. Effective September 27, 2016, the Company closed the acquisition of one senior housing community located in Kingwood, Texas for $18.0 million (the “Kingwood Transaction”). The community consists of 96 assisted living units. The Company incurred approximately $0.2 million in transaction costs related to this acquisition which have been included in general and administrative expenses within the Company’s Consolidated Statements of Operations and Comprehensive Loss. The Company obtained financing from Protective Life Insurance Company (“Protective Life”) for $13.0 million of the acquisition price at a fixed interest rate of 4.13% with a 15-year term with the balance of the acquisition price paid from the Company’s existing cash resources. Effective February 16, 2016, the Company closed the acquisition of two senior housing communities located in Pensacola, Florida, for $48.0 million (the “Pensacola Transaction”). The two communities consist of 179 assisted living units. The Company incurred approximately $0.3 million in transaction costs related to this acquisition which have been included in general and administrative expenses within the Company’s Consolidated Statements of Operations and Comprehensive Loss. The Company obtained financing from Protective Life for $35.0 million of the acquisition price at a fixed interest rate of 4.38% with a 10-year term with the balance of the acquisition price paid from the Company’s existing cash resources. Effective January 26, 2016, the Company closed the acquisition of three senior housing communities located in Colby, Park Falls, and Wisconsin Rapids, Wisconsin, for approximately $16.8 million (the “Pine Ridge Transaction”). The three communities consist of 138 assisted living units. The Company incurred approximately $0.1 million in transaction costs related to this acquisition which have been included in general and administrative expenses within the Company’s Consolidated Statements of Operations and Comprehensive Loss. The Company obtained financing from Protective Life for $11.3 million of the acquisition price at a fixed interest rate of 4.50% with a 10-year term with the balance of the acquisition price paid from the Company’s existing cash resources. As a result of these acquisitions, the Company recorded additions to property and equipment of approximately $126.0 million and other assets of approximately $12.8 million, primarily consisting of in-place lease intangibles, within the Company’s Consolidated Balance Sheets which will be depreciated or amortized over the estimated useful lives. |
Debt Transactions
Debt Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Transactions | 4. DEBT TRANSACTIONS On May 31, 2017, the Company renewed certain insurance policies and entered into a finance agreement totaling approximately $1.6 million. The finance agreement has a fixed interest rate of 2.76% with the principal being repaid over an 11-month term. On January 31, 2017, in conjunction with the Four Property Lease Transaction, the Company obtained $65.0 million of mortgage debt from Berkadia. The new mortgage loan is interest-only and has a 3-year term with an initial variable interest rate of LIBOR plus 4.00%. The Company incurred approximately $0.9 million in deferred financing costs related to this loan, which are being amortized over 3 years. The Company issued standby letters of credit, totaling approximately $3.9 million, for the benefit of Hartford Financial Services (“Hartford”) associated with the administration of workers compensation. The Company issued standby letters of credit, totaling approximately $6.7 million, for the benefit of Welltower, Inc. (“Welltower”), formerly Healthcare REIT, Inc. on certain leases between Welltower and the Company. The Company issued standby letters of credit, totaling approximately $2.8 million, for the benefit of HCP, Inc. (“HCP”) on certain leases between HCP and the Company. The senior housing communities owned by the Company and encumbered by mortgage debt are provided as collateral under their respective loan agreements. At September 30, 2017 and December 31, 2016, these communities carried a total net book value of approximately $1.0 billion and $935.6 million, respectively, with total mortgage loans outstanding, excluding deferred loan costs, of approximately $960.2 million and $907.2 million, respectively. In connection with the Company’s loan commitments described above, the Company incurred financing charges that were deferred and amortized over the terms of the respective notes. At September 30, 2017 and December 31, 2016, the Company had gross deferred loan costs of approximately $13.8 million and $12.8 million, respectively. Accumulated amortization was approximately $4.2 million and $3.0 million at September 30, 2017 and December 31, 2016, respectively. The Company was in compliance with all aspects of its outstanding indebtedness at September 30, 2017, and December 31, 2016. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Equity | 5. EQUITY Preferred Stock The Company is authorized to issue preferred stock in series and to fix and state the voting powers and such designations, preferences and relative participating, optional or other special rights of the shares of each such series and the qualifications, limitations and restrictions thereof. Such action may be taken by the Company’s board of directors without stockholder approval. The rights, preferences and privileges of holders of common stock are subject to the rights of the holders of preferred stock. No preferred stock was outstanding as of September 30, 2017 and December 31, 2016. Share Repurchases On January 22, 2009, the Company’s board of directors approved a share repurchase program that authorized the Company to purchase up to $10.0 million of the Company’s common stock. Purchases may be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or block trades, or by any combination of such methods, in accordance with applicable insider trading and other securities laws and regulations. The size, scope and timing of any purchases will be based on business, market and other conditions and factors, including price, regulatory and contractual requirements or consents, and capital availability. The repurchase program does not obligate the Company to acquire any particular amount of common stock and the share repurchase authorization has no stated expiration date. Shares of stock repurchased under the program will be held as treasury shares. Pursuant to this authorization, during fiscal 2009, the Company purchased 349,800 shares at an average cost of $2.67 per share for a total cost to the Company of approximately $0.9 million. On January 14, 2016, the Company announced that its board of directors approved a continuation of the share repurchase program. Pursuant to this authorization, during the first quarter of fiscal 2016, the Company purchased 144,315 shares of its common stock at an average cost of $17.29 per share for a total cost to the Company of approximately $2.5 million. All such purchases were made in open market transactions. The Company has not purchased any additional shares of its common stock pursuant to the Company’s share repurchase program during fiscal 2017. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 6. STOCK-BASED COMPENSATION The Company recognizes compensation expense for share-based stock awards to certain employees and directors, including grants of employee stock options and awards of restricted stock, in the Company’s Consolidated Statements of Operations and Comprehensive Loss based on their fair values. On May 8, 2007, the Company’s stockholders approved the 2007 Omnibus Stock and Incentive Plan for Capital Senior Living Corporation (as amended, the “2007 Plan”), which provides for, among other things, the grant of restricted stock awards, restricted stock units and stock options to purchase shares of the Company’s common stock. The 2007 Plan authorizes the Company to issue up to 4.6 million shares of common stock and the Company has reserved shares of common stock for future issuance pursuant to awards under the 2007 Plan. Effective May 8, 2007, the 1997 Omnibus Stock and Incentive Plan (as amended, the “1997 Plan”) was terminated and no additional shares will be granted under the 1997 Plan. Stock Options Although the Company has not granted stock options in recent years, the Company’s stock option program is a long-term retention program that is intended to attract, retain and provide incentives for employees, officers and directors and to more closely align stockholder interests with those of our employees and directors. The Company’s stock options generally vest over a period of one to five years and the related expense is amortized on a straight-line basis over the vesting period. No stock options were outstanding at September 30, 2017. Restricted Stock The Company may grant restricted stock awards and units to employees, officers, and directors in order to attract, retain, and provide incentives for such individuals and to more closely align stockholder and employee interests. For restricted stock awards and units without performance and market-based vesting conditions, the Company records compensation expense for the entire award on a straight-line basis over the requisite service period, which is generally a period of one to four years, unless the award is subject to certain accelerated vesting requirements. Restricted stock awards are considered outstanding at the time of grant since the holders thereof are entitled to dividends, upon vesting, and voting rights. For restricted stock awards with performance and market-based vesting conditions, total compensation expense is recognized over the requisite service period for each separately vesting tranche of the award as if the award is, in substance, multiple awards once the performance target is deemed probable of achievement. Performance goals are evaluated periodically, and if such goals are not ultimately met or it is not probable the goals will be achieved, no compensation expense is recognized and any previously recognized compensation expense is reversed for performance-based awards. The Company recognizes compensation expense of a restricted stock award over its respective vesting or performance period based on the fair value of the award on the grant date, net of actual forfeitures. A summary of the Company’s restricted stock awards activity and related information for the nine-month period ended September 30, 2017 is presented below: Outstanding at Beginning of Period Granted Vested Cancelled Outstanding at End of Period Shares 829,766 525,366 (335,690 ) (62,673 ) 956,769 The restricted stock outstanding at September 30, 2017 had an intrinsic value of approximately $12.0 million. During the nine month period ended September 30, 2017, the Company awarded 525,366 shares of restricted common stock to certain employees and directors of the Company, of which 194,652 shares were subject to performance and market-based vesting conditions. The average market value of the common stock on the date of grant was $13.57. These awards of restricted stock vest over a one to four-year period and had an intrinsic value of approximately $7.1 million on the date of grant. Additionally, during the nine-month period ended September 30, 2017, the Company awarded 26,787 restricted stock units to certain directors of the Company with an average market value of $13.44 on the date of grant. These awards of restricted stock units vest over a one-year period and had an intrinsic value of approximately $0.4 million on the date of grant. Unrecognized stock-based compensation expense is $10.6 million as of September 30, 2017. If all awards granted are earned, the Company expects this expense to be recognized over a one to three-year period for performance and market-based stock awards and a one to four-year period for nonperformance-based stock awards and units. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 7. CONTINGENCIES The Company has claims incurred in the normal course of its business. Most of these claims are believed by management to be covered by insurance, subject to normal reservations of rights by the insurance companies and possibly subject to certain exclusions in the applicable insurance policies. Whether or not covered by insurance, these claims, in the opinion of management, based on advice of legal counsel, should not have a material effect on the consolidated financial statements of the Company if determined adversely to the Company. The Company had two of its senior housing communities located in southeast Texas impacted by Hurricane Harvey during the third quarter of fiscal 2017. Both of these communities continue to remain fully vacated and are undergoing repairs. We maintain insurance coverage on these communities which includes damage caused by flooding. The insurance claim for this incident required a deductible of $100,000 that was expensed as a component of operating expenses in the Company’s Consolidated Statement of Operations and Comprehensive Loss in the third quarter of fiscal 2017. Through September 30, 2017, we have incurred approximately $0.4 million in clean-up and physical repair costs and we expect to incur additional repair costs which we believe are probable of being recovered through insurance proceeds. In addition to the repairs of physical damage to the buildings, the Company’s insurance coverage includes loss of business income (“Business Interruption”). Business Interruption includes reimbursement for lost revenue as well as incremental expenses incurred as a result of the hurricane. The Company received an initial payment from our insurance underwriters of approximately $1.0 million in September of which approximately $0.7 million related to Business Interruption through September 30, 2017, which has been included as a reduction to operating expenses during the third quarter of fiscal 2017. Based upon our initial assessment of the physical damages and insurance coverage, the Company currently estimates insurance proceeds will be sufficient to reimburse the Company for all damages and repair costs to fully restore the communities to their condition prior to the incident. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 8. FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts and fair values of financial instruments at September 30, 2017, and December 31, 2016, are as follows (in thousands): 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 9,186 $ 9,186 $ 34,026 $ 34,026 Restricted cash 13,372 13,372 13,297 13,297 Notes payable, excluding deferred loan costs 961,404 909,106 910,234 879,448 The following methods and assumptions were used in estimating the Company’s fair value disclosures for financial instruments: Cash and cash equivalents and Restricted cash: The carrying amounts reported in the Company’s Consolidated Balance Sheets for cash and cash equivalents and restricted cash approximate fair value, which represent level 1 inputs as defined in the accounting standards codification. Notes payable: The fair value of notes payable is estimated using discounted cash flow analysis, based on current incremental borrowing rates for similar types of borrowing arrangements, which represent level 2 inputs as defined in the accounting standards codification. The estimated fair value of these assets and liabilities could be affected by market changes and this effect could be material. |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Lease Accounting | Lease Accounting The Company determines whether to account for its leases as operating, capital or financing leases depending on the underlying terms of each lease agreement. This determination of classification is complex and requires significant judgment relating to certain information including the estimated fair value and remaining economic life of the community, the Company’s cost of funds, minimum lease payments and other lease terms. As of September 30, 2017, the Company leased 46 senior housing communities, 44 of which the Company classified as operating leases and two of which the Company classified as capital lease and financing obligations. The Company incurs lease acquisition costs and amortizes these costs over the term of the respective lease agreement. Certain leases entered into by the Company qualified as sale/leaseback transactions, and as such, any related gains have been deferred and are being amortized over the respective lease term. Facility lease expense in the Company’s Consolidated Statements of Operations and Comprehensive Loss includes rent expense plus amortization expense relating to leasehold acquisition costs slightly offset by the amortization of deferred gains and lease incentives. There are various financial covenants and other restrictions in the Company’s lease agreements. The Company was in compliance with all of its lease covenants at September 30, 2017. On January 31, 2017, the Company acquired the underlying real estate associated with four of its operating leases. For additional information refer to Note 3, “Acquisitions.” |
Credit Risk and Allowance for Doubtful Accounts | Credit Risk and Allowance for Doubtful Accounts The Company’s resident receivables are generally due within 30 days from the date billed. Accounts receivable are reported net of an allowance for doubtful accounts of $4.7 million and $4.3 million at September 30, 2017, and December 31, 2016, respectively, and represent the Company’s estimate of the amount that ultimately will be collected. The adequacy of the Company’s allowance for doubtful accounts is reviewed on an ongoing basis, using historical payment trends, write-off experience, analyses of receivable portfolios by payor source and aging of receivables, as well as a review of specific accounts, and adjustments are made to the allowance as necessary. Credit losses on resident receivables have historically been within management’s estimates, and management believes that the allowance for doubtful accounts adequately provides for expected losses. |
Employee Health and Dental Benefits, Workers' Compensation, and Insurance Reserves | Employee Health and Dental Benefits, Workers’ Compensation, and Insurance Reserves The Company offers certain full-time employees an option to participate in its health and dental plans. The Company is self-insured up to certain limits and is insured if claims in excess of these limits are incurred. The cost of employee health and dental benefits, net of employee contributions, is shared between the corporate office and the senior housing communities based on the respective number of plan participants. Funds collected are used to pay the actual program costs including estimated annual claims, third-party administrative fees, network provider fees, communication costs, and other related administrative costs incurred by the plans. Claims are paid as they are submitted to the Company’s third-party administrator. The Company records a liability for outstanding claims and claims that have been incurred but not yet reported. This liability is based on the historical claim reporting lag and payment trends of health insurance claims. Management believes that the liability for outstanding losses and expenses is adequate to cover the ultimate cost of losses and expenses incurred at September 30, 2017; however, actual claims and expenses may differ. Any subsequent changes in estimates are recorded in the period in which they are determined. The Company uses a combination of insurance and self-insurance for workers’ compensation. Determining the reserve for workers’ compensation losses and costs that the Company has incurred as of the end of a reporting period involves significant judgments based on projected future events including potential settlements for pending claims, known incidents which may result in claims, estimates of incurred but not yet reported claims, changes in insurance premiums, estimated litigation costs and other factors. The Company regularly adjusts these estimates to reflect changes in the foregoing factors. However, since this reserve is based on estimates, the actual expenses incurred may differ from the amounts reserved. Any subsequent changes in estimates are recorded in the period in which they are determined. |
Income Taxes | Income Taxes Income taxes are computed using the asset and liability method and current income taxes are recorded based on amounts refundable or payable in the current year. The effective tax rates for the three and nine month periods ended September 30, 2017 and 2016 differ from the statutory tax rates due to state income taxes, permanent tax differences, and changes in the deferred tax asset valuation allowance. The Company is impacted by the Texas Margin Tax (“TMT”), which effectively imposes tax on modified gross revenues for communities within the State of Texas. During each of the three and nine month periods ended September 30, 2017 and 2016, the Company consolidated 38 Texas communities, and the TMT increased the overall provision for income taxes. Deferred income taxes are recorded based on the estimated future tax effects of loss carryforwards and temporary differences between financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income in the years in which we expect those carryforwards and temporary differences to be recovered or settled. Management regularly evaluates the future realization of deferred tax assets and provides a valuation allowance, if considered necessary, based on such evaluation. As part of the evaluation, management has evaluated taxable income in carryback years, future reversals of taxable temporary differences, feasible tax planning strategies, and future expectations of income. Based upon this analysis, an adjustment to the valuation allowance of $3.1 million and $3.0 million was recorded during the third quarters of fiscal 2017 and 2016, respectively, to increase the valuation allowance provided to $50.0 million and $28.7 million at September 30, 2017 and 2016, respectively, and reduce the Company’s net deferred tax assets to the amount that is more likely than not to be realized. Cumulative adjustments to the valuation allowance for the first nine months of fiscal 2017 and 2016 were $19.1 million and $6.4 million, respectively. The adjustment to the valuation allowance during the first nine months of fiscal 2017 included an increase of $5.3 million for the adoption of ASU 2016-09, which was effective for the Company as of January 1, 2017, to recognize net operating loss carryforwards attributable to excess tax benefits on stock compensation that had not been previously recognized to additional paid in capital. However, in the event that we were to determine that it would be more likely than not that the Company would realize the benefit of deferred tax assets in the future in excess of their net recorded amounts, adjustments to deferred tax assets would increase net income in the period such determination was made . The Company evaluates uncertain tax positions through consideration of accounting and reporting guidance on criteria, measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition that is intended to provide better financial statement comparability among different companies. The Company is required to recognize a tax benefit in its financial statements for an uncertain tax position only if management’s assessment is that such position is “more likely than not” (i.e., a greater than 50% likelihood) to be upheld on audit based only on the technical merits of the tax position. The Company’s policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as income tax expense. The Company is generally no longer subject to federal and state income tax audits for tax years prior to 2013. |
Net Loss Per Share | Net Loss Per Share Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Potentially dilutive securities consist of unvested restricted shares and shares that could be issued under outstanding stock options. Potentially dilutive securities are excluded from the computation of net loss per common share if their effect is antidilutive. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except for per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net loss $ (8,132 ) $ (7,077 ) $ (37,809 ) $ (17,507 ) Net loss allocated to unvested restricted shares — — — — Undistributed net loss allocated to common shares $ (8,132 ) $ (7,077 ) $ (37,809 ) $ (17,507 ) Weighted average shares outstanding – basic 29,512 28,959 29,427 28,879 Effects of dilutive securities: Employee equity compensation plans — — — — Weighted average shares outstanding – diluted 29,512 28,959 29,427 28,879 Basic net loss per share – common shareholders $ (0.28 ) $ (0.24 ) $ (1.28 ) $ (0.61 ) Diluted net loss per share – common shareholders $ (0.28 ) $ (0.24 ) $ (1.28 ) $ (0.61 ) Awards of unvested restricted stock representing approximately 957,000 and 1,028,000 shares were outstanding for the three months ended September 30, 2017 and 2016, respectively, and awards of unvested restricted stock representing approximately 884,000 and 1,038,000 shares were outstanding for the nine months ended September 30, 2017 and 2016, respectively, and were antidilutive. |
Treasury Stock | Treasury Stock The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ equity. All shares acquired by the Company have been purchased in open-market transactions. There were no repurchases of the Company’s common stock during the nine month period ended September 30, 2017. |
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-01, Business Combinations – Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except for per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net loss $ (8,132 ) $ (7,077 ) $ (37,809 ) $ (17,507 ) Net loss allocated to unvested restricted shares — — — — Undistributed net loss allocated to common shares $ (8,132 ) $ (7,077 ) $ (37,809 ) $ (17,507 ) Weighted average shares outstanding – basic 29,512 28,959 29,427 28,879 Effects of dilutive securities: Employee equity compensation plans — — — — Weighted average shares outstanding – diluted 29,512 28,959 29,427 28,879 Basic net loss per share – common shareholders $ (0.28 ) $ (0.24 ) $ (1.28 ) $ (0.61 ) Diluted net loss per share – common shareholders $ (0.28 ) $ (0.24 ) $ (1.28 ) $ (0.61 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Restricted Common Stock Awards Activity and Related Information | A summary of the Company’s restricted stock awards activity and related information for the nine-month period ended September 30, 2017 is presented below: Outstanding at Beginning of Period Granted Vested Cancelled Outstanding at End of Period Shares 829,766 525,366 (335,690 ) (62,673 ) 956,769 |
Fair Value of Financial Instr17
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of financial instruments at September 30, 2017, and December 31, 2016, are as follows (in thousands): 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 9,186 $ 9,186 $ 34,026 $ 34,026 Restricted cash 13,372 13,372 13,297 13,297 Notes payable, excluding deferred loan costs 961,404 909,106 910,234 879,448 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | Sep. 30, 2017CommunityStateResidentIndependent_Living_Unit |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Senior housing communities operated by company | 129 |
Number of states in which senior housing communities operated | State | 23 |
Aggregate capacity of residents in company operated senior housing communities | Resident | 16,500 |
Senior housing communities owned by company | 83 |
Senior housing communities on lease by company | 46 |
Number of home care agency | Independent_Living_Unit | 1 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2017USD ($)Communityshares | Sep. 30, 2016USD ($)Communityshares | Mar. 31, 2016shares | Sep. 30, 2017USD ($)Communityshares | Sep. 30, 2016USD ($)Communityshares | Dec. 31, 2009shares | Jan. 31, 2017Community | Dec. 31, 2016USD ($) | |
Accounting Policies [Line Items] | ||||||||
Senior housing communities on lease by company | Community | 46 | 46 | ||||||
Communities on operating lease | Community | 44 | 44 | ||||||
Senior housing communities on capital lease and financing obligations | Community | 2 | 2 | ||||||
Resident receivables due period | 30 days | |||||||
Allowance for doubtful accounts | $ 4.7 | $ 4.7 | $ 4.3 | |||||
Adjustments to valuation allowance | $ 3.1 | $ 3 | ||||||
Uncertain tax position maximum percentage | 50.00% | |||||||
Outstanding unvested restricted stock | shares | 957,000 | 1,028,000 | 884,000 | 1,038,000 | ||||
Repurchase of common stock | shares | 144,315 | 0 | 349,800 | |||||
ASU 2016-09 [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Cumulative tax effect adjustment to retained earnings | $ 0.2 | |||||||
Valuation Allowance, Operating Loss Carryforwards [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Adjustments to valuation allowance | 19.1 | $ 6.4 | ||||||
Deferred tax assets valuation allowance | $ 50 | $ 28.7 | 50 | $ 28.7 | ||||
Deferred Compensation, Share-based Payments [Member] | Valuation Allowance, Operating Loss Carryforwards [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Adjustments to valuation allowance | $ 5.3 | |||||||
Texas [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Number of communities consolidated | Community | 38 | 38 | 38 | 38 | ||||
Ventas [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Acquisition of senior housing community | Community | 4 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies - Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounting Policies [Abstract] | ||||
Net loss | $ (8,132) | $ (7,077) | $ (37,809) | $ (17,507) |
Net loss allocated to unvested restricted shares | 0 | 0 | 0 | 0 |
Undistributed net loss allocated to common shares | $ (8,132) | $ (7,077) | $ (37,809) | $ (17,507) |
Weighted average shares outstanding – basic | 29,512 | 28,959 | 29,427 | 28,879 |
Effects of dilutive securities: | ||||
Employee equity compensation plans | 0 | 0 | 0 | 0 |
Weighted average shares outstanding – diluted | 29,512 | 28,959 | 29,427 | 28,879 |
Basic net loss per share – common shareholders | $ (0.28) | $ (0.24) | $ (1.28) | $ (0.61) |
Diluted net loss per share – common shareholders | $ (0.28) | $ (0.24) | $ (1.28) | $ (0.61) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Millions | Jan. 31, 2017USD ($)Community | Nov. 02, 2016USD ($)CommunityIndependent_Living_UnitAssisted_Living_Unit | Sep. 30, 2016USD ($)CommunityIndependent_Living_UnitAssisted_Living_Unit | Sep. 27, 2016USD ($)CommunityAssisted_Living_Unit | Feb. 16, 2016USD ($)CommunityAssisted_Living_Unit | Jan. 26, 2016USD ($)CommunityAssisted_Living_Unit | Mar. 31, 2017USD ($) | Sep. 30, 2017USD ($) |
Business Acquisition [Line Items] | ||||||||
Additions to property and equipment | $ 126 | |||||||
Other Asset [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite lived intangible asset acquired in place leases during period | $ 12.8 | |||||||
Ventas [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition cost | $ 85 | |||||||
Number of acquisition closed | Community | 4 | |||||||
Payments for rent | $ 2.3 | |||||||
Number of remaining lease communities | Community | 7 | |||||||
Lease termination obligation | $ 16 | |||||||
Estimated fair value of the acquired entities | 88.1 | |||||||
Business acquisition, aggregate consideration | 101 | |||||||
Loss on facility lease termination | $ 12.9 | |||||||
Transaction cost related to acquisition | 0.4 | |||||||
Additions to property and equipment | 88.1 | |||||||
Reclassification of property and equipment to other assets | $ 1.3 | |||||||
Ventas [Member] | Bridge Loan [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition cost | $ 65 | |||||||
Initial variable interest rate | 4.00% | |||||||
Bridge loan period | 36 months | |||||||
Ventas [Member] | Minimum [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Long term fixed interest rate | 7.25% | |||||||
Ventas [Member] | Maximum [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Long term fixed interest rate | 8.50% | |||||||
Cincinnati, Ohio [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition cost | $ 29 | |||||||
Number of acquisition closed | Community | 1 | |||||||
Long term fixed interest rate | 4.24% | |||||||
Transaction cost related to acquisition | $ 0.2 | |||||||
Number of independent living units | Independent_Living_Unit | 45 | |||||||
Number of assisted living units | Assisted_Living_Unit | 77 | |||||||
Long term finance | $ 22 | |||||||
Maximum period for expansion of permanent financing | 10 years | |||||||
Springfield Massachusetts [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition cost | $ 27 | |||||||
Number of acquisition closed | Community | 1 | |||||||
Long term fixed interest rate | 4.10% | |||||||
Transaction cost related to acquisition | $ 0.3 | |||||||
Number of independent living units | Independent_Living_Unit | 97 | |||||||
Number of assisted living units | Assisted_Living_Unit | 90 | |||||||
Long term finance | $ 20.3 | |||||||
Maximum period for expansion of permanent financing | 10 years | |||||||
Kingwood Texas [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition cost | $ 18 | |||||||
Number of acquisition closed | Community | 1 | |||||||
Long term fixed interest rate | 4.13% | |||||||
Transaction cost related to acquisition | $ 0.2 | |||||||
Number of assisted living units | Assisted_Living_Unit | 96 | |||||||
Long term finance | $ 13 | |||||||
Maximum period for expansion of permanent financing | 15 years | |||||||
Pensacola Florida [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition cost | $ 48 | |||||||
Number of acquisition closed | Community | 2 | |||||||
Long term fixed interest rate | 4.38% | |||||||
Transaction cost related to acquisition | $ 0.3 | |||||||
Number of assisted living units | Assisted_Living_Unit | 179 | |||||||
Long term finance | $ 35 | |||||||
Maximum period for expansion of permanent financing | 10 years | |||||||
Colby Park Falls [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition cost | $ 16.8 | |||||||
Number of acquisition closed | Community | 3 | |||||||
Long term fixed interest rate | 4.50% | |||||||
Transaction cost related to acquisition | $ 0.1 | |||||||
Number of assisted living units | Assisted_Living_Unit | 138 | |||||||
Long term finance | $ 11.3 | |||||||
Maximum period for expansion of permanent financing | 10 years |
Debt Transactions - Additional
Debt Transactions - Additional Information (Detail) - USD ($) $ in Millions | May 31, 2017 | Jan. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
Mortgage debt | $ 960.2 | $ 907.2 | ||
Deferred financing cost | 13.8 | 12.8 | ||
Net book value of housing communities | 1,000 | 935.6 | ||
Accumulated amortization | 4.2 | $ 3 | ||
Hartford Financial Services [Member] | ||||
Debt Instrument [Line Items] | ||||
Letters of credit | 3.9 | |||
Welltower, Inc. [Member] | ||||
Debt Instrument [Line Items] | ||||
Letters of credit | 6.7 | |||
HCP, Inc. [Member] | ||||
Debt Instrument [Line Items] | ||||
Letters of credit | $ 2.8 | |||
Ventas [Member] | Mortgage Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, repayment term | 3 years | |||
Mortgage debt | $ 65 | |||
Debt instrument, variable rate basis | LIBOR | |||
Deferred financing cost | $ 0.9 | |||
Deferred financing costs amortization period | 3 years | |||
Ventas [Member] | LIBOR [Member] | Mortgage Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, spread on variable rate | 4.00% | |||
2.76% Insurance Financing Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Insurance finance agreement, outstanding amount | $ 1.6 | |||
Debt instrument, fixed interest rate | 2.76% | |||
Debt instrument, repayment term | 11 months |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Sep. 30, 2017 | Dec. 31, 2009 | Dec. 31, 2016 | Jan. 22, 2009 | |
Equity [Abstract] | |||||
Preferred stock, shares outstanding | 0 | 0 | |||
Authorization for purchase of company's common stock | $ 10,000,000 | ||||
Purchase common stock shares | 144,315 | 0 | 349,800 | ||
Average cost of per share | $ 17.29 | $ 2.67 | |||
Purchase common stock value | $ 2,500,000 | $ 900,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | May 08, 2007 | Sep. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options vesting period, Minimum | 1 year | |
Stock options vesting period, Maximum | 5 years | |
Number of stock options outstanding | 0 | |
Period of recognition for compensation expense, Minimum | 1 year | |
Period of recognition for compensation expense, Maximum | 4 years | |
Unrecognized stock based compensation expense, net of estimated forfeitures | $ 10,600,000 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense recognized | 0 | |
Restricted stock outstanding, intrinsic value | $ 12,000,000 | |
Restricted common stock, Granted | 525,366 | |
Performance and market based restricted stock, Granted | 194,652 | |
Average market value of common stock awarded to certain employees and directors of company | $ 13.57 | |
Restricted stock award vesting period, Minimum | 1 year | |
Restricted stock award vesting period, Maximum | 4 years | |
Restricted stock outstanding | $ 7,100,000 | |
Restricted Stock [Member] | Directors [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted common stock, Granted | 26,787 | |
Average market value of common stock awarded to certain employees and directors of company | $ 13.44 | |
Restricted stock outstanding | $ 400,000 | |
Restricted stock award vesting period | 1 year | |
Performance and Market Based Stock Awards [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected period of expenses | 1 year | |
Performance and Market Based Stock Awards [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected period of expenses | 3 years | |
Nonperformance Based Stock Awards [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected period of expenses | 1 year | |
Nonperformance Based Stock Awards [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected period of expenses | 4 years | |
2007 Omnibus Stock and Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Authorized shares of common stock | 4,600,000 | |
1997 Omnibus Stock and Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of additional shares granted under the plan | 0 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Awards Activity and Related Information (Detail) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding at Beginning of Period | 829,766 |
Shares, Granted | 525,366 |
Shares, Vested | (335,690) |
Shares, Cancelled | (62,673) |
Shares, Outstanding End of Period | 956,769 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended |
Sep. 30, 2017USD ($)Community | Sep. 30, 2017USD ($)Community | |
Loss Contingencies [Line Items] | ||
Senior housing communities owned by company | Community | 83 | 83 |
Hurricane related expenses deductible for insurance claim | $ 100,000 | |
Clean-up and physical repair costs | 400,000 | |
Initial payment received from insurance underwriters | $ 1,000,000 | |
Business interruption insurance recoveries | $ 700,000 | |
Texas [Member] | ||
Loss Contingencies [Line Items] | ||
Senior housing communities owned by company | Community | 2 | 2 |
Fair Value of Financial Instr27
Fair Value of Financial Instruments - Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted cash | $ 13,372 | $ 13,297 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 9,186 | 34,026 |
Restricted cash | 13,372 | 13,297 |
Notes payable, excluding deferred loan costs | 961,404 | 910,234 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 9,186 | 34,026 |
Restricted cash | 13,372 | 13,297 |
Notes payable, excluding deferred loan costs | $ 909,106 | $ 879,448 |