Exhibit 99.1
[OBJECT OMITTED] Capital
Senior
Living
Corporation
For Immediate Release Contact: Ralph A. Beattie
972/770-5600
CAPITAL SENIOR LIVING CORPORATION EXECUTES
MANAGEMENT CONTRACT/PURCHASE OPTION
DALLAS - (BUSINESS WIRE) - June 1, 2005 - Capital Senior Living Corporation (the
"Company") (NYSE:CSU), one of the country's largest operators of senior living
communities, today announced it has executed a management agreement with
Crescent Place Assisted Living, Inc. ("Crescent Place"). Crescent Place is an 80
unit assisted living community to be constructed in Cedar Hill, Texas on land
adjacent to Crescent Point Retirement Community, also managed by the Company.
Crescent Place is being developed by The Covenant Group of Texas ("TCG") and is
expected to be completed within the year.
The management agreement will commence six months prior to the opening of the
Crescent Place community and continue for a term of 15 years from the
commencement date, unless terminated earlier under specified conditions. The
management fee earned by the Company will be the greater of $5,500 per month or
five and one-half percent of gross revenues.
In addition, the Company has an option to purchase Crescent Place for a price of
approximately $8.0 million, subject to certain adjustments, through May of 2012.
The Company has a right of first refusal to acquire Crescent Place for a period
of 15 years.
"This transaction represents a further benefit to the Company from the
acquisition of CGI Management, Inc. last August," said James A. Stroud, Chairman
of the Company. "The strategic alliance which Capital and The Covenant Group
have formed will enable both partners to profitably expand their businesses."
"TCG's leadership as a successful senior living developer is complemented by
Capital's proven track record as a national operator of senior living
communities," added Lawrence A. Cohen, Chief Executive Officer. "Our alliance is
expected to provide Capital with a platform for additional external growth
through long-term management contracts and purchase options."
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ABOUT THE COMPANY
Capital Senior Living Corporation is one of the nation's largest operators of
residential communities for senior adults. The Company's operating philosophy
emphasizes a continuum of care, which integrates independent living, assisted
living and home care services, to provide residents the opportunity to age in
place.
The Company currently operates 54 senior living communities in 20 states with an
aggregate capacity of approximately 8,700 residents, including 39 senior living
communities which the Company owns or in which the Company has an ownership
interest, and 15 communities it manages for third parties. In the communities
operated by the company, 84 percent of residents live independently and 16
percent of residents require assistance with activities of daily living.
The forward-looking statements in this release are subject to certain risks and
uncertainties that could cause results to differ materially, including, but not
without limitation to, the Company's ability to find suitable acquisition
properties at favorable terms, financing, licensing, business conditions, risks
of downturns in economic conditions generally, satisfaction of closing
conditions such as those pertaining to licensure, availability of insurance at
commercially reasonable rates, and changes in accounting principles and
interpretations among others, and other risks and factors identified from time
to time in our reports filed with the Securities and Exchange Commission.
Contact Ralph A. Beattie, Chief Financial Officer, at 972-770-5600 or Matt
Hayden, Hayden Communications, Inc. at 858-456-4533 for more information.
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