CSU - Earnings call transcript Q1 2019 | Sonida Senior Living, Inc.

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Operator

Good day and welcome to the Capital Senior Living First Quarter 2019 Earnings Release Conference Call. Today's conference is being recorded. All statements today, which are not historical facts, may be deemed to be forward-looking statements within the meaning of the federal securities laws. These statements are made as of today's date. And the company expressly disclaims any obligation to update these statements in the future. may from performance statements. and results differ forward-looking materially Actual today actual that differ Form Report release Certain SEC in from earlier the with factors on time, Factors company cause reports the well results Form the on the issued time earnings of these Report the the Quarterly contained could XX-Q. in to XX-K files Annual as and in are company including to as Risk detailed the harbor morning. press statement, capitalsenior.com/investor-relations today's for release found in full safe may see at which Please and an the be X-K furnished was filing this Also, call, non-GAAP present that please financial note during the company this measures. will

to For go Living's ahead. the Ms. today's turn most over Please reconciliations to also President from Kimberly this see Lody. non-GAAP press please of measure comparable release. and GAAP like time, CEO, the Capital each call Senior measure, At would I

Kim Lody

detail today's our we can renewed materials. investor share an strengthening update top to improved good growth. our Last operating various you XXXX find results. I Thank pleased achieving growing access conference top-line to we the and Today, on am occupancy our Living's you website, additional company commitment strategy. initiatives commitment talked to about to performance; company's consistent, on predictable and our presentation progress, Welcome additional quarter, with and call focus release those Senior two and and driving reaffirm on about and encourage to priorities: a I and the first where financial our provide foundation. our new quarter also Capital posted you press morning, and discuss to everyone. information Along have comments,

the first performance. operating on Let's focus

of we consistent XX.X% executing plan. metrics, occupancy essentially of with of and have margin basis, and are we occupancy QX margin I encouraged progress. in with NOI consolidated On on still quarter's XX.X%. the a am work are ahead, we NOI our by that While delivered our a And lot now previous

same-store line with QX Our XX.X%. in occupancy at also was

is are winter-related to of Capital the Living's encouraged indicator Considering levels the was overall yet is occupancy results largely industry, consistency development Senior the with business year an important quarterly sequential at of the quarter-to-quarter we move-outs, first consistent stabilize. typically is that these corresponding the difficult that most are quarter to While was not that the we expect, illnesses net the in QX reported unchanged due data. and that which the beginning as

continued previously our of part focus number performance, and a of As operational outlined immediate improving we impactful initiatives. on

will each response say of again, with team that new the which will our our operational executing. the are direction pleased improve speed While essential we I initiatives those us future. proposition our and understand in how To go serve at today, this how I performance, value markets is into value the I'm positioned organization's into our won't constituents it's to our and that proposition,

better we foremost, and communities. has to serve provided independent and and our are living our committed historically Owning operating operational First real has significant to strengthened our memory care living, our financial It estate and advantages. residents. assisted capacity owning

we this right care. personalization, comfort value. residents in we of provide Living's Senior the services with same right to can culture creation. owner/operator and right is believe communities, today opportunity and affordability believe their and mid-sized the middle-market flexibility While a of to highest while the strength optimize cultivating and We resident-centric consistency the utilize scale a and centralization residents we the at operating engagement, maintaining strong to We're is value mindset Capital sweet-spot, local our and time families, the for serving lease tertiary best our value-oriented that XX% long-term secondary performance model for communities and markets. provides attractive where

XXXX to and Nurture and stabilization of and on Invest, this XXXX and required Stabilize, strategic call. deliverable. agenda: plan, We last Grow that is our SING; for the are element strategic launched Another framework pillars improved or actions clear performance the ensuring earnings

have initiatives the our optimize to to high-impact this across We And execution. framework. implement business we further continue refined

organized We now for are success.

that tasks. and in February, teams this late team. results. our improving management to performance. with we further for You realigning confident sizes may new back field I'm decision-making that structure. made that distractions our to accelerate in our authority improved Chief so I recall to leadership. reduced with maintain minimize focus tools our reports operations into frequent operational we eliminated and and excellent occupancy while regional our regions can we We top directly change discipline, burdensome to providing slowed reduced operational consistent the allow operating roles. by leaders. deliberately provided work and and I to leadership search to operating continue more and performers to operations in-person continue will on community residents. Operating administrative personally We Officer, our a day-to-day We see And promoted have by NOI a change We and our We unnecessary services oversight complemented or restored enhance emerging our our for of

data, utilization at Additionally, is our labor operating in where Optimizing we detailed accountability area every our another are and seeing instituted of management is positions QX level. along all our providing system with the alignment improvement. real-time robust analytics principles signs now in community-level of to

sales labor our Evidence labor in to select Our utilization first quarter. year-over-year And beginning addressing X.X% to that strategy, is the in making evaluation pressures wage sales caregiver markets tangible the property cost employee in level, changes our improve full development, commercial marketing deliver just managing and and while of excellence targets initiatives will increased and a of our impact. lead execution. that and generation process still are we completed early days have are

about We next initiatives these the on more will detail provide call.

on that contributing like this number on our of Carey already beforehand, immediate comment a goal. numbers focus key the but improving financial to foundation. actions the will let's priority detail, to company's Now, other review of in I'd are

closed in to necessary know, at Facility a XXXX. improve As flexibility with the of the on business. this activities we And us Credit provided the Master to you the financial end engage

have now our our divest communities upon closing. group that fit of We plans to meaningful those assets have strong provide strategy. and the marketing longer a for have portfolio completed of assets a owned to been This have We small valuations these we detailed portfolio that includes will net proceeds analysis and no believe company sale. also

to a We extend bridge of currently loan two working additional in years, our with matures $XX are lenders also for XXXX. million that one

for exiting doing these lease are we amenable landlord. do both to a so company, way considering leases they XXXX. We in that pool company expires also not seriously in communities had and in Because that the make nine the money currently is and the

I mention market Carey, housing the want Before turning call the industry. conditions senior over to in to

second the a row, quarter absorbed For units in inventory outpaced growth units.

headwinds remains XX X.X% continued this of we industry XX encouraging, at to construction And While is the months. high inventory. expect for next new

Our diligence navigating on we our while industry are in focus and improving can conditions the markets. things control

turn built our to encouraged improved I act Hendrickson. now that And executed of with it into of see transform while business, it with sheet. will and our urgency, by last The goal change benefit urgency Carey affect all taking stabilizing. correctly. making we an sustainable that I operating assure strength we emerging also XXXX in business to is is the for that We is done leadership, most is improving of continue you balance time And hold the we're to stakeholders. Officer, will take signs want to the sure right. is to along are with our make that Chief importantly, we the to are doing the of our over organization to performance we the in all Financial needed the call sure that

Carey Hendrickson

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

some since still that when lead the and need improve in aren't in the stabilization going personnel saw structure these organizational and in but and measures operations, include the the execution we encouraged we're the changes to signs months operating statistical they do, the statistical the the in financial There's believe on early will much marketing measures make performance implemented them we and our by and up, operations we new sales of years exclude leased include first we meaningful. to firmly forward, However, release of processes first of two to improve would in quarter the that results quarter can less and ahead. communities, and and in the

providing in to XXXX facilities the winter-related the consolidated our pleased from and to quarter center illnesses, declined XXXX. and basis versus million strong the Kim observed of typically care a from XXXX NOI and of year, points NOI residents. I consolidated the earlier we've our we impacted And million XXXX. began steady most business the only progress. residents or prior a than $XX.X that the us X.X% these continue quarter that July XX.X% since quarter for fourth quarter mentioned Given through quarter of fourth XXXX a margin $X.X Senior at increased the the beginning quarter confidence the number or the in a was over $XXX.X of the this release quarter both million have total the Living. of decrease XXXX. our first XXXX. fourth million XXXX came as services morning, XX local with revenue strength quarter first as a quarter impacted making on to at flu excellent interruption that of reported incremental $XXX,XXX. tremendous were Operating back of our year. XXXX by Both occupancy transformation are $XXX,XXX foundation this the fourth to XXXX, which the other challenging and a year, as the lower for to expenses in is communities increase expected of the lesser occupancy to year expenses average occupancy of of that year-over-year, our Operating of communities online communities are in reimbursements showed the and they're approximately visited two quarter of the Also well with X.X% consolidated interruption, July million. first of basis in I of sequential launch $X.X a of teams in from from Capital first company's gives credit we and of The decrease hurricane million the the resident that is of admitting to this points solid increase including she In first first our noted $XX.X Harvey, community revenue the basis our in offset XX.X% in second quarter firsthand $XX.X partially same-community Business base greater and our XX two communities of first two rent and the related XXXX quarter slight by consistent is which of Hurricane financial we're normal quarter our

general administrative in to XXXX quarter first million for million quarter the Our the of $X.X compared XXXX. $X expenses first and were of

included $X.X XXXX separation costs of placement associated executive in quarter approximately and first and with marketing the of incremental roles. million certain The

$XXX,XXX other compared and costs XXXX. the in to our years, approximately of G&A decreased these transaction as quarter the quarter from first first expense Excluding both

in the in same revenue is as of expense XXXX, XXXX. first percentage as G&A the X.X% quarter management under was Our the a was which of it first quarter

of $XXX,XXX new quarter CFFO EBITDAR negative million of was of quarter adjusted standards. first the the quarter of XXXX. accounting $XX.X first in first related quarter impact of the quarter to compared adoption XXXX the in million XXXX. lease million of in a $XX.X net million XXXX to Our CFFO approximately first the $X.X XXXX the for CFFO included $XX.X to in of Adjusted compared first to was the

in impact or standard The and cash So $XXX,XXX, true us on from leases classification with by on there the no association accounting $X required resulted was There previously And this a no interest reduced CFFO from if impact accounted change. the leases. share. were reassessment. these result In which are new didn't basis CFFO of of were quarter two math, expense financing were year, with as was our first changes financing approximately per impact prior reassess lease to comparable one rent and do the quarter was was to for both lease the EBITDAR EBITDAR. of $X.XX which in interest associated leases expense, which was leases payments operating as classification, excluded change million, a expense expense first to the The their increased to cash change leases, related negative $XXX,XXX. the of approximately that $XXX,XXX by net to two was our

perform of Speaking of which the earnings. eight lease established impairment which it a leases, required an accounting beginning million use against of standard, community also the by associated asset with resulted analysis of charge us to $XX.X taken new standard, our was in the retained right impairment our

right So million, of use a which liability of asset of our million, now right use balance million of $XX.X sheet has is and $XXX.X current. $XXX.X

declined from across decline teams. at that occupancy metrics our the our Looking an the and quarter XXXX. of year, dynamics the XXXX community the Dallas as to rent of portfolio XXX the X.X% The greater in local XX of with XXXX, basis portfolio decline stabilization XX.X%. where decreased the basis first results. average increase first concentration communities Same-community occupancy. sequential of points. our than We in those as basis sign XX In quarter in There occupancy Again, the first quarter basis sequential from were we declined fourth modest financial monthly the of see was supply points market, variations of XXXX of our to our same-community on had points of performance revenues same-community a XX to basis competitive a compared in which communities, of sequential occupancy early in our slightly the we compared X.X% quarter is XXXX. the have quarter of of basis execution first but as fourth the XX with based overall only on points prior position markets markets, demand on quarter our largest a the

growing of on sequential in a XX We to a communities increase markets, points first sequential had Omaha, basis had have we Indianapolis, three from XX of points; points; four XXX which the basis of occupancy in or XXXX sequential basis the XXXX. fourth a quarter decline other where market: basis, more where and Cincinnati, the in of which occupancy occupancy increased XX.X% XX.X% quarter have

points. our which three while our basis Indiana, was Ohio, and rate points, in in it our at overall largest Texas XX greater portfolio increased declined XXX a occupancy than points, occupancy Looking states, down XX in at basis basis increased

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

of versus contract the increased cost prior Including expense XXXX X.X% over labor, labor our first increased of employee Our in the X.X% labor quarter year. the quarter first XXXX.

We for continue markets, to experience wage pressure in certain particularly caregivers.

that we the overtime We have and made the wage adjustments at pressure, of a direct number the wage to most reductions in savings in slightly resulting increase investment. although in labor labor, of had much may lag the expect communities contracts significant offset

labor current better in our of in first we As through in to expect less call, the our the we we continue noted on and to that increase year. cost expense none positions This positions revenue levels. our eliminated approximately conference than operations field fourth XXX enforced in across February with quarter, the quarter reductions reduction our to labor the caregiver match

costs to decreased X.X% implemented quarter the in procurement Our platform XXXX. we in first April that due food centralized of the

Our utilities, - other X.X% the year. decreased cash of category, over first large last quarter cost

Our same-community to first X.X% the of decreased quarter as net income first of operating XXXX. in quarter compared XXXX the

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

spent capital $X.X we quarter, expenditures. first the During million on

three million long-term balance Facility. rate at expect debt X.X%. variable of a $XX was million our rates was mortgage totaled March XX, weighted the fixed at million Credit that interest of approximately under At Our approximately at of and debt debt rate XX our interest bridge March Master majority loans $XX $XXX the average

to we Kokomo, classified noted, charge community a on in recorded million. at of Indiana impairment of million May $X.X As The the our sheet related held-for-sale price of Kim on on $X sale and March was million. at proceeds $X.X cash our transaction X community. net closed as balance we the It XX, the generated

ongoing our divestiture. effort a and number our foundation we're portfolio, optimize continuing of of market our potential strengthen assets part financial As to for to limited

phases and and the due next agreements Some in diligence in of the XX final in sale communities expected with days. closings purchase are the the of

cash marketing those and for and meaningful expect assets to net We others proceeds. value strong generate

Our as in create on focus and years to will ahead. invest our for a for XXXX remain the in stabilize operations continuing platform growth we

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

experienced communities in declines to our occupancy communities in more we Also, a our many to expect continue and our to in operating average of necessary impacts results XXXX. to grow the our ability that place XXXX. in implemented late competitive adjustments the financial position market We we XXXX, rent rate our at reflect

As be a to year prior result, difficult to throughout we expect comparisons continue to XXXX. the

position will However, with as begin expect up XXXX, financial And we open results. growing for our call in we a to be enter I questions. to that, the

Operator

Thank first Vanacore you. We'll Instructions] question our with [Operator Stifel. from take Chad

Chad Vanacore

right, All thanks.

Could Carey, rate mentioned constrained the rates? that to for be to a compared the the you you quarter year. us were this your increases expected rate what mark-to-market comparison, in-place give So, just

Carey Hendrickson

the a in-place in less increased it's first say power in on would than when going in general, quarter. varied, have at I X% instance, markets by more occupancy - level It where rents have was increases Omaha, on rent other that. XX.X% Yes, But the in you about than market. in-place do you obviously, pricing what lot for you depends the a market

Chad Vanacore

All somewhere I in mark-to-market the would right. is negative then, that territory? And assume

Carey Hendrickson

mark-to-market? the sorry, I'm

Chad Vanacore

Yeah.

Carey Hendrickson

way that believe adjustments positive will That Yeah, overall fourth did quarter, so XXXX. the we of from at market have in us yeah, on quarter we do a line. you rate the first occupancy impact the with decline rate, the to we quarter because it made fourth in look - yeah, the the when did

Chad Vanacore

say fair right, trading off rate occupancy you're just to it's per stabilize things? to Okay. All

Kim Lody

That's right.

Carey Hendrickson

Yes.

Chad Vanacore

Good.

Okay. And up year-over-year, about is it that same-store then thinking was X.X% right? operating expense,

Carey Hendrickson

Yes, that's right.

Chad Vanacore

What's that main of expense in equation there? up only Labor was driver to the X.X%.

Carey Hendrickson

Yes. force year reduction Well, that February. it's really related in in the the in we had to early

of few market having amount adjustments making some of the At the the labor because cost few quarter. of is the in lessened going our make we So comments going did I caregiver - to are But our a still for difficulty my continuing market of forward. we the That's pressure, our have going Well, the increase, note including lessen of some hiring are those increase that labor when that a a quarter. to wage X.X%. we that in do have labor in wage fact obviously those first reflection first of increased little communities, of did bit in we be that to part the part. kind cost, of second did some make in we the more contract some and a first positions. adjustment,

having pretty so, labor with X.X% And even we're is I that quarter. overall, that to labor. reasonable supplement the still for increase first contracts But, think

Chad Vanacore

then, impact net in any And Are force early point noticeable any you you or change your can there right. move-ins of to jiggering all sales incentives? and upside Okay, there? any

Kim Lody

No, Chad.

additional think here early really a in is move-ins. can pleased really early strategy fourth What towards how of this the quarter. say that with to our and we're indicator as too translating has year-over-year We're for been we're sales the it's early. of couple of from I Officer well leads the tell Revenue too process terms into seeing four level months. is new as months that But sequentially into that it's both Chief I

Chad Vanacore

the there back I'll and right, stop in All Thanks. queue. hop

Carey Hendrickson

in They persons in the anecdotally sales from just been and anecdotally say, hey, visiting conversations, Kim the communities. and noted just are as they say Chad, would we've will I now more we us, revenue - move-outs have compensated on focused I Chad, conversions on they I have as out how move-ins. opposed based with had previously move-ins, because to to our were from

was at in focus level goal. the And of they overall revenue really community And which so top seeing level. we invested line, are the very are that

Chad Vanacore

that is your not compensated are being just move-ins, net now that move-ins, right? So people on

Kim Lody

based Actually, on their is revenue compensation is on Yeah. achieving based revenue. and target Chad, it

of focused or really necessarily team, that weren't people challenges had not So focused we are the and the on who resident about one talking our the experience with on sales controllable move-ins I'm necessarily, move-outs. just and

revenue are care absolutely each with because speak articulated be now them of this with whole rate, new focused compensation it's And when change. It's focused And to extremely everything that on. want that that and focused interesting, on they so really in everything comes the and a they're very directors, on incentive occupancy, controlling plan, with picture community. mindset sales total they you move-outs, fees, well level we that the

Chad Vanacore

Okay.

more rate? process, they Given have discretion over have they do control sales also over the that

Kim Lody

the best for of reasons rates They really, that a felt of the have we shareholders. of market in some throughout levels the appropriate was we in that did a rates And that company was were discounting And sure discussion. bit there the We XXXX. each on say, the was the process going went in our right competition not through of approach, concessions our of not the one or markets. that, and making interest QX I'll quite resetting that

able minimal to or that So sales rates we have we ability it their - discretion can put process utilize. encourage the community if the something a then is toolbox, at we is and there have to that in that overall amount they reduce move-in that, sooner. help are a amount fee but limited have to utilize that feel by - to the are toolbox a - they do it's competitive so move-ins very or directors place the specific to small can They accelerate

Chad Vanacore

period ongoing? So the more roll-off than will discount that in short rather

Kim Lody

That's right. Yeah. right. That's

Chad Vanacore

Thanks Okay. All right. a lot.

Kim Lody

Yeah.

Carey Hendrickson

Yeah.

Operator

of Gajuk of Joanna from question next our Bank take we'll And Instructions] [Operator America.

Joanna Gajuk

you. Thank morning. Good

discussion terms pricing. the of So that on I guess in

those degree. took XXXX lot in but of you're some in you to it limiting these maybe like obviously, XXXX, actions a So sounds

that is it against look pricing better say fair XXXX? to should So

Carey Hendrickson

late XXXX, to primarily. expect we certainly, the the were really in think, December made fourth and I market Well, - rate in quarter adjustments

XXXX. increases And then market we anticipate first of XXXX. of have in that the we'd part we'll in through rate So cycle all would

rate yes. And up to that expect I in just a for would so XXXX statement, pick in general therefore,

Joanna Gajuk

also statement have that All to right. made in the for markets currently just continue Because competition or year a that pressure a you you you to so. your expect next

down new that new markets? So construction so or you offset in seeing seeing maybe And happening acceleration some drilling constructions last the - any you're are that development your stabilization on are of in in market might opening some where on you new color seeing some new markets, of Or the asset year? sale actually this your markets?

Kim Lody

Yeah. market. Joanna, depending the I'd say, mixed it's pretty on particular

I are new think they're sort activities. are the that in where some ease, of or our seeing construction finished their of in but continues other there new markets, we markets leased-up constructions construction and

have space. I got the shiny successfully we We operators. think we've done We And that the how quarter competitive view how of know that of years be might to buildings, the we in nice care seniors. organization the construction again within in do. can new construction. mindset we and of this we have is first one new new can really pretty control and but advantage, It change that. here new things a what We XX experience strong control take

a portfolio. across have reputation We their great

We employees. have talented

have. these them many we operating We that have procedures and and many of into expertise don't new also scale place don't entrants that this have and of have, processes the

that So continue while, marketplace. is meaningful I in our is our will and conditions to the how focus own be proposition challenging, our really think, industry value on

Joanna Gajuk

I to guess, that. related And somewhat

for QX you year the $XX talked outlook about ago the CapEx the call, $XX months million million. So three on to

still I QX it hold, only QX? $X.X in million is guess, So was because, CapEx

Carey Hendrickson

million little in total still - million spend are somewhere Joanna, Yeah. say, and depending timing plans CapEx divestitures bit from We CapEx amount XXXX. typically we a slower generate any the I given would in in cash But to in we $XX our $XX our the between start of and on year.

and and competitive for would room those improvements allow $XX for as structured experience to communities rooms, needs and certain communities, to million HVAC, to the residents. $XX well elevators, And So necessary sustain then, of physical upgrades improve of $XX for $XX and our things. million million kinds as their turns for million at capital position that

be the So just depend generated divestitures. amount and of really our and to it's going cash the that would timing goal from on the

Joanna Gajuk

might I last squeeze If one.

cash negative the So QX. in actually was very

there should progression unusual, year? in we about through cash guess, how outflow the Was timing I any or So the think any issues QX?

Carey Hendrickson

our revenue our some normal XXXX at communities but of strong this that in Joanna. occupancy, then sell put It end today, as we our XXXX. Master the to Facility cash to position are - cash was where really we that and it we the place right, us in part the probably first gave limited of of position. the as looking with until Credit ongoing it optimization good you're position began just like do year also cash that believe and number portfolio, going will it get but in is we a negative better. in The we and remain cash No, And quarter we're top-line does add

with that our So have operations on improving and really like room that, we concentrate we the we need feel performance. to our

Joanna Gajuk

Thank you.

Operator

Hambly Dana from question with next our take Stephens. We'll

Dana Hambly

of Hey, I used commercial maybe actually that lack for little having you CSU. commercial the joined guess, a conceptualizing term me you tough that I is good there excellence, a bit and I excellence, just think could time morning. when a means. what I'm wonder more. Kim, break if you down

Kim Lody

excellence, the that and things to family. it Yes, think to probably their about all the resident think happy we do easiest way touch When Dana, commercial is about that.

engagement process of all their sort that and lead and of sales we that and on-boarding them. way within communities, process, then generation, in our our point end-to-end our the activities marketing an activities post to to beginning process moving the the the through from to process in, tour move-in, the So provide programming the residents

to touch are in a it's at that their of the that for we in points, that So value of and making family. executing every significant the one sure single best - of ability resident experience, and comprehensive those and with way way resident looking our full very a creates

Dana Hambly

you that like were the fourth now the like versus in place Okay. where And the getting capturing have the you're far and where time as as all helpful. real much feel even you maybe data you very That's systems in analytics, quarter?

Kim Lody

conversion and system, the several about has the that our system to with that well all it. the speed having Yeah, Yardi on do to on the which and data, do analytics the feel of we're we're communities the other system, the we to capture it as based elements, able and data able which in evaluate of good now Yardi as CRM a element to at actually, the

first We robust we in And that we're have the really quarter feel the timeliness very the accuracy process only of get, the I spent very quite a also of instituting a able to about information for information lot the time of that that. but have. good here not

Dana Hambly

on next And, That's change, one-time $XXX,XXX accounting is carry going that or Okay. lease hit through is that XQ, for to few helpful. the the Carey, to the quarters?

Carey Hendrickson

That forward. going Dana, will be the norm now,

be forward. really XXXX, difference okay $XXX,XXX then how just in the quarter it's and so in comparison so a that'd each we're for that accounting in be in base, will will XXXX that the - So setting going it it lease, the new

Dana Hambly

year, year. lap next that we'll Next

Okay.

Carey Hendrickson

Yeah.

Dana Hambly

real year. $XX are sheet, far the sheet? Is you million, as loans, priority balance are said that those then, only And near-term for for on the balance the the the the next - as bridge

Carey Hendrickson

with also on loan or bridge million now when loan look that's financing And permanent that extend million besides that essentially And $XX community. comments her than Yeah, extend we so looking that we for right that's think that, in we're I have greater Kim loan. due later will to put $XX also in then, to have two bridge bridge that years. associated value That the we And an currently have either noted that it. would community that XXXX. is that

And with debt that at time. refinance so, permanent certainly could that we and

Dana Hambly

the think when accretive? a though some Okay. divestitures, it on so they're give Carey, where be And position our money, of would And might be revenue, detail they would take like for then, be flow in Kokomo, it you losing modeling? those do to even you'd on more cash

Carey Hendrickson

it's are Dana, there - a mix.

we for still They're contribution. the those do have in yet very will, diligence those about was the some will if I even of be just that I meaningful many. due diligence next that that will we even And significant we're of to update hard, process on close report perhaps quite good to in cash is. hope a But not strong of one the as some where provide that that - transactions to and sell getting due we going - quarter, comfortable inter-quarter ones that are an we do proceeds net able that of they the those. with before because have the properties cash and are result the up So in numbers, are you us. phase put CFFO I'm looking ones values and think talking But all

Dana Hambly

I that's appreciate the Okay, fair. question.

Carey Hendrickson

some say have I do contribution that like are otherwise, good to Dana, also do there And cash much not then, bet. we're You looking will that but have that Kokomo, are value. sell,

And so, it's looking a that at. mix we're of both

of cash Some portfolio fit don't some and strong can us. just then proceeds that for the it some generate

Dana Hambly

Thanks. understood. Okay,

Carey Hendrickson

you. Thank

Operator

questions at like turn further appears closing It the speakers Instructions] there remarks. additional any to to no back this I are time. for [Operator or conference our would

Kim Lody

our of want Nurture again drive shareholder Great, value. reiterate in Stabilize, Amy. precision closing, and diligence In urgency, our executing as sense long-term Invest, Okay. Grow, to strategy and I

developments. produce our enterprise desire. appreciate Living begin While time to and performance-focused We Thank these fully all portfolio, we're take the interest everyone. activities initiatives we many look your to our results we it hold anchored you the Capital across forward and of apprised keeping in take will in for you, be Senior to seeing of the

Carey Hendrickson

you. Thank

Operator

conference. today's you Thank concludes This your participation. for

You now disconnect. may

Sonida Senior Living (SNDA) 12 May 192019 Q1 Earnings call transcript