CSU - Earnings call transcript Q4 2018 | Sonida Senior Living, Inc.

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Operator

Good day, and welcome to the Capital Senior Living, Fourth Quarter and Full Year 2018 Earnings Release Conference Call. Today's conference is being recorded. The forward-looking statements in this release are subject to certain risks and uncertainties that could cause results to differ materially, including but not to the company's ability to generate sufficient cash flow to satisfy its debt and lease obligation and to fund the company's capital improvement projects to expand, redevelop or reposition it senior living community, the company's ability to obtain additional capital on terms acceptable to it, the company's ability to extend or refinance existing debt as such debt matures, the company's compliance with its debt and lease agreements, the company's ability to complete acquisition and disposition upon favorable terms to all, the risk of oversupply and increased competition in the markets which the company operates, the risk of increased competition for skilled workers due to wage pressure and changes in regulatory requirement. The departure of the company's key officers and personnel, the cost and difficulty of complying with applicable licensure, legislative oversight or regulatory changes, the risk associated with a decline in economic conditions generally, the adequacy and continued availability of the companies insurance policies, and the company's ability to recover any losses it sustains under such policy. Changes in accounting principles and interpretations and the other risks and factors identified from time to time in the company's reports filed with the Securities and Exchange Commission. would Living's turn President I to call time, Senior Capital and this like the to over At CEO, Ms. Lody. Kimberly ahead. go Please

Kimberly Lody

Thank our everyone. conference morning end you capital and Living's Senior XXXX Welcome results. call quarter fourth to discuss and your to good

XXXX during put the to our operating unemployment previous as next macroeconomic on of in focused XX management rates, the continue prevalent supply industry. year January you demand go XX appointment and on strengthening as objectives specific industry labor operating more priorities heavily a the and Therefore, many outpace many today to CEO, weeks comments costs. like drive of the company would that as described we this eight had quarter communications higher certainly drove today's be performance, Back questions of the Living has the will a same in Senior these foundation. top full details we company's expect while calls, on pressure financial to conditions Throughout and headwinds and I for you we its know, As initiatives most occupancy low about in operating to on improving continued On environment. I'd be reflect at those of the on call. our accomplish joined these the performance. fourth about ago and X, moment time, Because plans report and my predictable my earnings shared backdrop will today's performance the on forward about company's challenging consistent months. to emphasized indicated January, we and to

strengthening one our number operating urgency. so doing performance to with precision and be and continues Our priority

grow can actions four for SING, invest, are they stabilize, subsequent key nurture and under summarized strategies, or be and S-I-N-G plan Our short.

respect of our this is describe Carey deeply time, this will transformational this take as focus in long company's driver to the assessment, too respond a taken revenue, to conditions, efforts emerging in the XXXX now time my and you which particularly actions we are is deficiencies. we market performance, one occupancy. detail, main number at So is release our to First read took In a address at the to more these stabilize, let's have press morning's operating of in with disappointed of these primary we and

discussions, a while analytics corrective already change these item instituted their strategy First, wide have and robust of organizational uses accountability. under enterprise drive discipline The a action. new we management leadership. operations our in that status to reports, and nature and our is system efficacy indicators analytical our stabilized accelerated forecasting competency detailed The improved recurring have activities, in next management early

immediately, release in new indicated effective quality underway. a this for As the search press no And is engaged. Brett COO already the whom very pleased Lee longer I'm The we've candidates with of with with morning's company. is

operations team ways I operating we results. the we our ensure directly have and be management team. have fingertips, regional decisions our to same to their authority involved empower and At with we to accountability at community while deeply information and more make time, for each the our field to and working have While responsibilities assumed in been search, with that allow continue team structured are COO that that

experience Senior with and also as to important will Capital closer is to confident be that improve on now change experienced, the right operations disruptive. of management. the as of and leadership more am when leadership senior focused collective you XX of team another It include our note this, their that to well I living skilled, leaders one Living any has years total them tenure senior We even bring Because experience field to activities industry. our could are regional performance. in while

we strategy centered mix The utilization. combination stabilized of optimizing is utilization of positions, as our us month, community's this of as Earlier element reduce labor resident on are well each our initiative national staffing were on community organization standards and targets needs. standards by approximately business a our that implemented This focused none based to third and caregivers. labor allowed XXX whom

and related and The apply the management. these will business fourth sales management stabilized implemented tool. item develops utilization is through As under continue monitor labor to to sales labor recently our the standards strategy

restructured approach eliminating those the into have communities. redeploying and sales corporate and our of our We by management resources managers, sales layer sales regional

changed major the together winning play role strong leading in we our of utilization aligned provide and separate so care. also each incentives. will of XXXX, customer tracking but of to implementations operational with that is longer activities goals, community have communities reporting our described. and to systems, based transparency, greater dining, directly and providing the our an will our not of communities leadership Fifth, of also Directors. systems I leadership just business strategies plans. A local plan to of is no is alongside our our element Establishing the with execution sales contact the our our completed of in Yardi. team on to experiencing focused that these leaders, is Director element structure, is member from with the of end initial operations, two communities related community's cohesive actions business, responsible but and only enterprise instead a facilities, programming, the We insights, for Executive leadership community Sales future critical and exceptional wide a position stabilize UltiPro The key across a initiatives reporting organization vertical teams aligned community the teams Consistent ensuring and are experiences, our and at transportation moving

rate of related limit we this Carey our Lastly, a on details maturities and interest risk. master transaction. quarter stabilize discuss strengthen facility our fourth our in foundation, more financial address the term to to to business near credit will our closed and the

analyze with strategy. portfolio continue our of recurring portfolio going business, and This We no of part certain activity will operations normal something our is to overall regular to plan divest part continue selectively forward. our evaluation as longer of our and also a communities that business we fit

We have focused our structure long-term can't I that the our of a sustainable improving to our flexibility importance us are the also business. in balance will we make capital sheet investments ensure invest allow that to growth. on in to appropriate overstate having

several we a top invest. strategy, nice As of our pillar next quarters sheet which balance the That to is a will for our provides course priority. next a addressing be chart the transition

talent. we foremost, and First are in investing our

has is various have marketing and few But execution. they these level the our developments highlighted sales traction successfully that certainly and revenue the some not produced of initiatives initiatives. in and there's these been drive we quite company occupancy because expertise This to right For of the commercial or want. results gained time experience haven't

our our respect and benefits track experience record on plans to to this and Mike's wellness were partnerships January. in people. elevate affordable employee further improve attractive lead our strategy we and while Chief morning's and support activities. sales competitive health we'll leadership competitive benefit to digital offerings component noted commercial executing Fryar communities and of extensive Mike excellence been As release, and and available Revenue a to sales support, for forward. me. have Under to fulfills analytics, improved with in COO and improve the With and the our need to Officer, restructured will care our establishing regard. CRM and traditional a The line strategies, marketing and enhance utilize Mike's going identifying Officer hired firsthand moving generating response retention provide focus training optimize this benefits The which sales of corporate our marketing, on to made top of new growth designs is The and opportunities minimizing Chief we base most focus affordable our drive Living's will be Investing all to efficiently revenue broader line the with I around. our Senior has functions report our recruitment and XXXX, important a in Revenue in premium plan company and Capital, wellness forward directly company's contributions claims. be experiences. will the our reported streamlined more absolutely in now employee permanently have plan resident's previously critical marketing

also redesigned business key new role, deployed compensation activities performance person's objectives, our each align We better programs our and have to overall for with field and teams goals. company

to as We as expect us changes turnover. allow talent top compete these more will reduce effectively for employee well

health industry complex residents our to is care and the with the second our to briefly Providing provide this now levels I The acuity. age we comes earlier a also invest that activities living resident of And about more. when The already in touched our a rising leading of higher residents. average senior age talking internal exercise as resident on physical of strategy more continue care, experience. of health our therapy, communities to daily XX. relates element and conditions and help strong health partnerships on based have for a will with of memory through our offering well to wellness high expertise, be and differentiation wellness providers quality as nursing We care, programming strategy. part living science, with

continue to these offerings. expanding We expect

a the of Lastly, to to different as community. units maintain all know, to our experience estate, upgrade physical also residents our transition real ongoing you and plans, levels in business capital in but investments only for or requires the not improve to care

prioritized investments The are of a grow. our last and these and elements two nurture or consistent improve competitive and disciplined have We to offering. plan in resources manner capital allocating our

identify grow Enabling subsequently well our just While to our activities drive in. will from and parallel business, we Many our how sources nurture leads that robust tours are we come These also of of and we the in grow of nurture move out are detailed I on as effective the CRM our in on commercial and to and and engaged party our will to a turn excellence data and in activities include timely these ensure on data, initiatives focus analysis strategies. manner. stabilize into of execute nurture to activities leads mentioned each third executing we communities. invest as in

focus We successful portfolio. best communities. provide that are many practices to our activities across existing XXX in these And our to significant our expect activities value each leveraging on impactful in of already commercial initial residents excellence we engaged

sustainable and over diligence affect taking and Senior of for the quickly XX stabilize busy Carey steps will we're act While to we first will I continue and call now as with urgency we necessary a our Officer, to weeks expect the the It's foundation. Capital been to year the XX Chief Financial conditions Living strengthen eight witness to improved months, our operating Hendrickson. turn to next performance to industry tough possible. as

Carey Hendrickson

are that the insurance And release communities press The significant restores as I'll discuss conversion. undergoing Kim. or impacted business continue up the economic the and after you, lease non-GAAP and measures since in our communities Hurricane Thank the non-GAAP results loss. to exclude by measures interruption renovation include noted Houston we Harvey two

measures statistical would make the up less two keys the results they're However, and that include of to since them communities these statistical include we the release in in exclude lease Houston meaningful. the measures

we're decrease or Operating than fourth expenses partially our XXXX rate. Casualty in expenses top line our $XX.X are and offset a nominal it higher related occupancy financial of year in increased noted, operating of for were million. quarter quarter million is total quarter $XXX.X of our decrease as The Kim quarter fourth reported key $X results million rent. fourth X.X% relates or XXXX, in in to to increase occupancy XXXX. particularly the by the and non-GAAP prior the which a the full company very of $X.X fourth million As results, The included not the consolidated of to lower disappointed $X.X year. revenue average X.X% million XXXX over drivers of

credit two expenses of Another our is of those XXXX. back the communities quarter the $X.X our admitting and for of million related having of CEO impacted that now quarter are Hurricane cost fourth General $X.X and quarter making the XXXX and transition interruption residents to XXXX steady the in our associated lesser compared $X administrative previous CEO. million The placement incremental communities, million business were progress. includes in of began approximately and Both service. $X of to communities in a fourth July new are increase million, with retirement to associated fourth with and XXXX

XXXX, fourth to bonus of transaction costs lower G&A expense of was in our other both and accruals. expense the fourth percentage management these years, X.X% $XXX,XXX the XXXX of as Excluding quarter G&A compared in X.X% revenue decreased the the quarter quarter compared to under from in of as fourth quarter fourth a with XXXX.

in the compared XXXX. Our quarter compared the was quarter quarter $XX.X our $X.X $XX.X million fourth quarter fourth to in CFFO in fourth XXXX. XXXX, million EBITDA fourth was million adjusted million $XX.X And of adjusted the in XXXX of to of the of

the prevailing some market, quarter the we above pricing at increase to markets in XXXX, quarter in our In to in our compared as basis November by and in decrease revenues and lower same markets. the as of XXX XX at to the residents compared Dallas market December. points XXXX from we same a have Looking declined competitive rates of There financial of portfolio overall fourth and performance we declines the X.X%, on declined results, in in basis September of XXXX community modest basis months the declined our fourth on approximately had moving our In rent as our basis improvement community in fourth rate third for of communities X.X% the a community of in quarter those occupancy across to same largest was XXXX. communities slow October. dynamics XXXX occupancy down in quarter sequential the The quarter communities, quarter portfolio fourth and supply XXX.X% points but of XXXX. did XXX demand position implemented with our was driven were concentration third see our our quarter compared average points. the and where the occupancy rates in fourth based November, same as to our new variations those XXX where We monthly

year-over-year, XXXX. markets We greater where flat other Omaha, XXXX Cincinnati, of and more a quarter to three significantly four the occupancy the market; fourth where in decline in our overall have in XX.X% we occupancy or showed the from was have of portfolio, increased Indianapolis, communities in year-over-year XX.X% where which growing fourth relatively quarter

rate at three than occupancy a Indiana, states, largest lesser portfolio Ohio for declined our portfolio. at our overall than occupancy our declined at in Looking greater Texas and overall a rate

approximately at the XX While approximately noted, the occupancy XXXX, increased Dallas occupancy quarter compared basis Texas not to the basis of of communities that declined as in fourth in Dallas points as our by are to market, fourth I XXX quarter XX XXXX. points

fourth the quarter community increased Our of same XXXX expenses in X.X%.

quarter versus the quarter XXXX. in of of X.X% increased costs labor employee Our fourth XXXX the fourth

particularly address amount number These in of We are experiencing select this communities also have the for that premium at labor. We wage most pressure greatest the a in wage certain communities caregivers. pay and markets, significant pressure contract of quarter. the had fourth

overtime may reductions categories labor the direct related most in XX XXXX, adjustments the labor but investing offset the savings also increase to expect reductions to investment. to So in much adjustments. in in the wage we communities We're of the expect those contract costs slightly wage in and lag costs of although implemented, additional cover

month to field XXX current levels. No noted, operations caregiver eliminated. this revenue approximately better positions our labor expense positions to Kim were match we across As eliminated our

labor force this lessen in with in to associated in XXXX. the the costs increase our savings expect labor reduction We

With of community fourth incremental that platform decrease to the operating compared over centralized we XXXX, to fourth cost in additional decreased food implemented due to of We of increased net XX.X% the income April in X.X% quarter fourth refinements we in Our the XXXX. the our of that the X.X% the to of that the year. XXXX forward. food quarter fourth savings fourth quarter result XXXX. as in last program going quarter expect in Utilities executed same procurement quarter

and quarter million the cash including of at equivalents cash. we ended sheet, restricted $XX.X Looking cash the with briefly balance

on the spent we in expenditures we $XX million approximately million $X and During year the fourth for of capital XXXX. spent full expenditures capital quarter,

total approximately mortgage December of and loans XX, million Our our million facility. was approximately rate long-term under million that a master debt bridge three debt at rates At balance for of was weighted at variable interest XX, at of average $XX $XXX.X XXXX, rate the debt December except then interest new credit majority $XX our X.X%. fixed

refinanced The XXXX, we our facility maturities, fixed communities, of of XX the All this first the is rate of master our payment for X.X%. of including interest approximately that XXXX rate was remaining December on closed on this debt all a XX in facility, initial credit rate term Speaking and debt the debt which the facility on year fixed facility in debt rate debt new at the $XX only and million interest a our the $XXX fixed credit the debt master plus rate of LIBOR and a maturities, our of months. our million, are The mortgage in approximately the interest the interest million variable has XXXX X.XX%. XXXX XX maturities. service is majority with at debt earliest X.XX% master and variable of rate $XXX long-term variable credit

the part communities debt considered under being transaction, of divestiture were for previously credit we refinance of As master the with facility. communities the that we that collateralized repaid cross also two additional

the a $X.X to and of accounting million now related One term GAAP communities communities All certain other the two right unencumbered. transaction debt on million. with required approximately resulted loan a extinguishment XX XX has is record bridge loan month the $XX.X our net off things an of cash of in the community considered, of million proceeds us $XX.X the costs. to the deferred charge previous and

master With debt the for facility prior the to be X.X earliest we're credit credit our considering rationalize debt X.X for facility, debt in average marketing communities XXXX the handful to expect our maturing of Kim We're and portfolio. facility as we rate of value. that did the which our of approximately long-term XXXX the in effort The ways completion master actively to foundation. portfolio XX% Similarly, her from our mentioned also which credit ongoing up release, fixed the duration date part years core now we and our the company's an is our consider with years, master was of is we after. to and to asset maturity in generate strong strengthen financial noted of a for in not to remarks,

opening the in operations we on Kim in XXXX As a will growth stabilizing investing our for noted create in in her and ahead. our focus comments, years be platform as

in results. performance, actions these an challenging. remains expect of that that predict But the drive to stronger particularly environment we We timing can't improved

financial many market XXXX conversations we So we at focus to our company of would on and as XXXX. XXXX, place business. this of more with the The higher our results we XXXX, shareholders to declines position our dampens is interest at XXXX. adjustments competitive in in starting the at in we to that operating our ability we its finished implemented in and intention our as don't future. think XX.X% into XXXX. is was juncture the Generally, providing point go December long-term XXXX for which drivers the guidance best occupancy Also, that or of XX%. at starting rate coming the reflect communities our of be considerably financial foreseeable occupancy our the to in into our expect we experienced a rent look average XXXX We communities of grow in our Also, late point,

XXXX. expect manage expenses the be increase X% We operating X% range able in to to to our to in

difficult XXXX. we throughout moderate occupancy and challenges a comparisons year to we be and expect increasing expect the the to With expenses, prior rate

enter we expect be we position to our a financial However, growing results. XXXX, in begin to as

and And results a will lot making back operationally the work call more I'll the we and better We predictable the to Kim. ahead. firmly turn that now over changes to in we're years believe result organizationally in have but do, of

Kimberly Lody

in operating of and to reiterate sense Thanks, grow our urgency; improve strategy diligence Carey. performance. want closing, company's I invest, of stabilize, executing In and to significantly nurture our precision the

in performance enterprise these become apprised the focused time results. initiatives you hold Thank produce the to implemented, many of have to We to across for you. been take and developments. will our While portfolio keeping to look forward anchored it take efforts

Carey Hendrickson

the we'll Jeff And for questions. now open call

Operator

ahead. our take from question you. Chad Instructions] We will [Operator Vanacore Please from go first Thank Stifel.

Chad Vanacore

Thanks. morning Kim and Good Carey.

performances just at So - looking your

Carey Hendrickson

Chad. morning Good

Chad Vanacore

you? drop EDs Hey, there concern, few issue the was severe particular there concentrated than were areas loss any in how competition Sales occupancy or of new out are Directors a more company performance Looking this or or quarter, whether thought of and communities? across this at a that's more is then we spread .Are

Carey Hendrickson

of and not I'll the variation Chad, stab in we There as take first Dallas and XXX rest challenging, that the the say this was execute Indianapolis is my down execute I'd basis certainly was XX - basis at lot our Texas that points. in well noted is down have XXX points, market results forward. some to of environment greater better another a I did was Yeah, in comments, going we we was had and we've but up but than points. basis competition it

of to decline in and So it want anything was in Indianapolis really Kim, lot variation across else Dallas you a was there portfolio. add? our markets, but

Kimberly Lody

with we've respect improving Yeah about to clear resulted holding our were poor execution to and transparency add this respond accountable my results. lens I'll already slow is we'll on the and that systems The put the ourselves changing business implement along conditions. market skills forward and And inconsistent for to and really execution. exact just in And our issue. with assessment that this to in are direction into with and improving Chad, place and continue that in that discipline processes we

So a top is us. for priority it

Chad Vanacore

slow the you from months poor say, the execution, that? at going next low per you XX respond look that's learn to hanging you fruit change when what say? consistent in and and what's did to So And

Kimberly Lody

my I remarks, had really of of execution. is, as I really of terms that sales the are think marketing Yeah, drive we to in competency and in depth couple there expertise not things. have One and a mentioned

organization. have operates the of Mike we or continuing I as And each and mentioned, so, and community it's Officer, communities, and Within quite that doing for communities, situation different. each I of focus greater Revenue across Chief them a have what the the in is they're will one the the to addition the scenario exactly do mean, well with do Fryar, today. leads In those doing much unique market environment those that leadership places together communities they're existing strong to got prospective engagement that place those through we've to conversation sure residents working team it in families nurture with is is that about Senior and that is and the residents they making generate and that Living. and leads, make that other with solid so at that come Capital choices really each leadership on

Chad Vanacore

in concessions so should about that about you think outlook as Alright, on line we when or more constrained, mentioned think maybe your about rate should prepared pricing as thinking XXXX? we being on about the that coming we remarks through holding rate

Carey Hendrickson

I were we of we like complete rates. at November where our say where It's in did markets in we and was wouldn't more to of market XXXX - we of look market just Chad, we felt - what our a pricing the above all certain market concessions. did kind pricing prevailing adjusted

rate discount we points they rates level in know, those grow grow for XXXX. during in tremendous for these renew, us quite residents will rate markets year. - increases that with new to during have residences place. a it we're Certainly renewal, But to for lower our they the the you rate as existing bit –with As certain dampen be and kind up of when our our we ability go going in the at around the them fact will pricing difficult different that normal where that's will at into did to the have the just market adjustments amount for X% existing year, place put that we've but probably come

Chad Vanacore

me. for then, more Alright, just question one

XXXX. You in mentioned limited number of dispositions

highlighted kind I encumbered. or of two companies that communities are you that think you two

should an many changes we EBITDAR? in in how of expected disposed or So give idea proceeding expect XXXX? us be to Maybe

Carey Hendrickson

don't how exactly many. I Chad, Yeah, know

those that to marketing we forward. which is goes. marketing on come measures, that but on more I that It's to communities we handful depend Our impacts can the to end process a CFFO do do a and move on significant end currently it, going dominance not those and up we're how of impact expected of EBITDAR assets divesting be on as

Chad Vanacore

I'll taking for the you thank questions. the queue. Alright, back hop in

Carey Hendrickson

You bet.

Operator

We take question ahead. you. Please go Gajuk of next from Bank now Thank can Joanna from America. our

Unidentified Analyst

cutting Yeah. Hi, color cost a was provide initiatives. you so is little wondering more just if this actually. for Bradley I on bit Joanna could on

reduced I the there But you force by and know XXX had that labor any field is to the sales So reorganized way quantify positions. impact?

Carey Hendrickson

reduction characterized, force, going in be the food we're this benefit will and from that other other the are there of to labor to in there initiatives force, help but initiatives, in put I expect noted expect as the to procurement other well. the Bradley Bradley, to at overtime quantify offset for also point. we not so are In in savings place the minimize wage the number continue we market a that to meaningful one it's But XXXX, portion to key place. wanting we it to communities we've our redeployed of XXXX, wage a community caregivers adjustments. initiative adjustments how cost the it's reduction in labor But But from savings on some in increase need make we personnel. certain contract

XXXX. one have of noted that full I We started more And in XXXX. we savings, quarter those X% down food in have brought those our of as costs been, because April

XXXX and Obviously, have services. of we'll this telecom, But as be food. during won't related we then first have to XXXX. continuing in quantification that put place similar year some in contracts internet to across vendor other as we additional it savings savings great multiple another first so we're position of also and we be those nationalize savings to continue refinements. And changes quarter. this our the television to hires, initiative. implementation then to of to And And a initiatives and in expect yet, in the and a our don't to face related I most hope have to but regional And notably, do

final don't savings but We meaningful, out those be worked to have we the details expect yet.

that at quantify this point. So said, I can't as I

Unidentified Analyst

then annualized million that All including for color. right, that a about cost employed? no three what had previously kind is I so that makes longer the or quarters mentioned guess, savings? this is Thanks Is in sense. you of

Carey Hendrickson

to for $XXX,XXX Bradley, It's referencing full implementation. sure but year for what probably not I'm the for It's to $XXX,XXX per that initiative. you're quarter. about first the that about was of food full,

to was it XXXX, XXX be in first and there'll about XXX the another quarter. in So XXX

Unidentified Analyst

Okay, That sense. got it. makes

guess starting is to where you at more to - you get grow way XXXX again, health trying it? the financial have starting to sort were grow just CFFO that the I mentioned So is to there, look of where had that is you're target to see some a

Carey Hendrickson

going to place. expect of we're enter think currently We're initiatives remarks. our depend is my I we that emphasize of to financial in to a growing and that, urgency. on results, XXXX the we with the sense working as I It's but certainly have of the a in be when to position begin traction as timing some And in noted putting we

Kimberly Lody

take traction. enterprise initiatives that still wide we're in the change here would just it will have we initiatives and early days put while place, put in gain and I place jump that we take the confident time is to And hold say, and in does and in

impact a for exact of predict the us the timing and it's little activities. So premature exact those to

Carey Hendrickson

All appreciate you. right, I that. Thank

Operator

Instructions] ahead. We Thank Hambly question Stephens. from our next from Dana Please [Operator go you. can take

Unidentified Analyst

like here guess first just that them the maybe on just new will Revenue areas and is prior initially, Jacob up strategy is Kim. to Dana you of some the how about question that welcome, the perhaps some Officer. and elaborate changes sales following on on thanks. looks the again, the for and revamping you're focus differ? efforts This you made COO on new now talk can Can Hey, on position Chief your I

Kimberly Lody

to of think about umbrella do categorize Yeah, as happy would Mike you when that, will I I commercial think as the those that lead Chief Revenue Officer, excellence. our activities

from and the the piece developing to can't the leads experience enough execution emphasize includes that then really go-to-market taking resident improve strategy the So business. detailed of that. of everything those resident I experience through plans about them our to

And families. operates with unique points market as mix touch a earlier, it. I to and mentioned community day feel We and residents every of a their single unique each of have thousands one and our in of sort has communities

the those So capturing making is are in communities leveraging local sure and those really that important. differences we

in Carey some and and costs engaged significant opportunities. So the technology and like one that of mentioned internet have to of the where that. terms we of reducing television That's around were things some some in, activities areas - make expect

the simply So with save is direction best doing that not working. on different to is resident those really the also sales market of make a in align and to sure took needs a The the we what team across Director as focus I will of individual focused closely we conditions. only because not deliver. but greater decision executing experience possible we initiatives, that, it is be that that them. feel as they're to to result but only overall enterprise the element, way individual those a the wasn't close to have key that element in of local conditions those and given they're management a made reason team will with the possible were those we as community money critical And part more is communities making Sales sales those resources like

Unidentified Analyst

period a of on talk a the guess here short does and you maybe that, give just key it following like changes turnover the it guess about just sound I positions Can local time. empowering the in of of sort any of Got around or your levels? leader. I up concern lot color on in you're some facility the is

is there? anything you this guessing can but positive just share for I'm a that, So

Kimberly Lody

than employee be. our in with like to is would it turnover industry, we is higher Yeah, which line the generally

the pretty across that's consistent that industry. think I

sure. color board why short a disruptive, executive team initiatives focused is the And direction reason strong look we really actions fast to I retention a than solid recruiting, hit person part wanted which when everyone, the I forward. with the field to really improve very Other view of And their don't a to on period of leadership color, in field we're changes hiring we confident to and turnover. mean, on for of it for so that I lot I provide additional new me ground a and not taken the them allowed was as was lot ability I there's quickly. change team, have are emphasize the make of that number management team going really management, working of execute this But am time very on hiring, just on on that to that's our the and at of three in When the a these running lot and a executing to plan organization. joined employees I and that. that we've of able a I also at really

Unidentified Analyst

share have path following should Great some thing part of don't of and it think sort you thinking you the we up And done want then expect about program of of on forward? XXXX? a the at in part I know sort facilities? about on that, as CapEx kind your should a CapEx. how review to new large if point we of invest And of

Carey Hendrickson

communities identify that - we have And do current go a needs needs to be go all and future are certain five Carey, years. in to physical to nurse at we kinds elevators, and sufficient $XX at to we'll that's million HVAC, to needs are our that feel residents. and communities other for fire $XX position is upgrades infrastructure - always of their I believe and right is improvements infrastructure looking and to And bit sustain you Thanks. million allows so process of physical sprinkler select This pressing approximately next we're and amount year per this did for This needs like necessary CapEx million so for planning competitive like Yeah, necessary. noted our we XXXX, we a to million million we in but call and CapEx alarm, XXXX. year and about We around the CapEx have spend make experience $XX the roofs, then $XX allocating systems, of improve the our turns room elevated through as and $XX the things million forward. improvements $XX this million $XX the communities, little systems, and then to most from total currently the at to those our cover that

Unidentified Analyst

Great, Kim, it Carey. Thank and I'll you, leave there.

Carey Hendrickson

you. Thank

Operator

Thank this you. [Operator Instructions] It questions appears time. there further no at are

for hand to back like to hosts closing I'd remarks. the So any or our additional call

Kimberly Lody

this Well, will forward look to on keeping our forward. we for joining I updated progress want our And you. us thank going call to Thank conference for morning. you everyone

Carey Hendrickson

you. Thank

Operator

This for today's gentlemen, concludes participation. your call. Thank Ladies disconnect. you you and may now

Sonida Senior Living (SNDA) 1 Mar 192018 Q4 Earnings call transcript