CSU - Earnings call transcript Q1 2021 | Sonida Senior Living, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to Capital Senior Living's First Quarter 2021 Earnings Release Conference Call. Today's conference is being recorded. All statements today, which are not historical facts, may 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. Actual results and performance may differ materially from forward-looking statements.

reports that the actual issued to earnings as and as on factors are to earlier reports time, these with quarterly report well in files on factors detailed release the the including of the could from XX-Q. contained results cause differ today the risk Some SEC Company in time annual the Form the XX-K Company Form capitalsenior.com/investor-relations, which press today's full for was may X-K be the release at statement, see Please safe filing found the and morning. in furnished harbor this will please non-GAAP during Also, that this note measures. call, the Company present financial

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

Kimberly Lody

Thanks, quarter good first Welcome XXXX to earnings Devon, our afternoon, and everyone. call.

and Dutton, our from COVID-XX and Vice extraordinary Joining the President Chief Operating XXXX and March as me Officer; and impacts of Accounting ongoing The fought pandemic. Brandon our were unprecedented today our our Senior Ribar, XXXX to Finance. company Tiffany nation XX are of the March months

difficult operational and safety our importantly, are teams experienced clinical our times. what supported to rigorous, is most through residents Our communication incredibly comprehensive and us and our and those devotion decisive relentless of collective protocols, the well-being strengthened and

resident upon third began proud of of, height in volume quarter, by have XXXX, difficult do. meaningful began the the to for the business in could vaccination say community and in grateful considerably vaccination quarter cases made first I'm the visitors country move-ins have I residents the Senior monthly Despite teams of of communities. are of resumed Move-ins improve December and activities across battling to their February, April pandemic's in, most and implementing our grow in strategy the among March we few the improvement highest frontline activities. of months, in communities fourth but stabilize, pandemic to increased and same on-the-ground years. at our the be created employees see have be safely to and January invest of of leaders grips tour pleased on Our of they accepting from notably in Living. wave nonexistent. XX% with group and our March. last our our new and signs by time nurture are pandemic, volume Lead and during operating more the Active the levels virtually environment achieving we regional all to not COVID-XX that XX% months' to the all Capital and eased Today, began as three-year events. residents humbled started the XX in last in move-in and and and the all at two of portfolio nearly residents progress have recovery We social were most much COVID-XX the great

the We redefined have stabilized portfolio performance. its and

our communities, our in invested our have We and people, programs. our resident processes

low XXX was our the our is XX.X%. consistent plan, point. occupancy second XX.X%, in to April's at now at a for The was sales with average spot three-year occupancy week and from the basis we that occupancy occupancy XX.X% from Today's at XX.X%, steadily spot We point was have first February our and and improvement February increase XXX Occupancy XX.X%. point weekly since rebounded are generation a average and March has XX.X%, basis time. of the nurtured low lead with grow. at point activities beginning XX.X%, for and January quarter March

One of welcome XX% more -- services residents efforts with their needs by care to a Alzheimer's in to work number great of four care to the our our the serve and communities, families have to complemented And team of began by provide our of wonderful communities average be the of to memory care higher addition program disease program In memory of occupancy address We which residents the implementation our support differentiated end to such is operational the Early that expect level care positions dementia we are called residents. projected the multidisciplinary our of of these by XXXX positive December and promising results to marketing an in rate and in May, in external of end largest XX% in all our and Magnolia between program teams the and adding in experts. by XXXX. was it of on unique and further we year. communities terms XXXX. communities states our the Trails, developed memory increase the programming sales And of communities individuals internal of development. our

of great resident and actively the showing an of advanced new demonstrably engaging which versus emotional are participation wellness purposeful, offerings Aegis This well-being and average also activities the rate program physical, industry XX%. of with residents. improve is positive participating cognitive early we wellness Another our programming, utilizes were across partnership XX% educational portfolio evidence-based our example with wellness results residents implemented Therapies, to is in in the and implementing programs

of reputation to these others, continuous local from score of in We improvement According average the is reputation or families online scores. community. reputation.com and designed support look levers data reputation forward industry growth our the brands the first searching through each All seniors post-pandemic housing XXX. of housing know through thing when to communities' our from seniors services, the referrals of are is local the for whether

reputation XXXX, year. strategic the redefine steadily pandemic it initiatives And not but In COVID-XX fighting our was COVID Living's enough. throughout our of a Capital business portfolio, and our score is the completing increase. the XX% Before reputation daily today, the above XXX, score pandemic, to increased XXX began, collective good Senior while average, managing operations our

the residents for the their families. all and community us and nearly included We're foundational in reputations of pandemic strong behind with prospective of stabilize consideration Our to three-year business the our hard in third complete. strategy facilitate our the the year transformational being work more set

in invest our our to drive our continue programming and We teams, communities growth. to post-pandemic

and We we have a expect sequential good to improvement growth basis, NOI momentum months on continue ahead. the and in occupancy

improvement recovery factors continue I'll now tailwind, operating accelerating predict While to it's strong and trajectory, the development. turn demographic to in confident which the and our in the lower still for our improve, services call provide over to that construction the the occupancy demand and environment, will support steady starts detail early affordability and performance are Brandon markets on will we more our expectations. further NOI operating to

Brandon Ribar

Thank afternoon. good Kim, you, and

more our safety of than COVID levels, XX% our The and producing extremely first of while for the of the communities, baseline our vaccinated, an are cases perspective. portfolio zero in in XXXX low communities. at recovery communities, quarter operating many achievements the now of opportunities our currently provided remain residents aggregate, for Most metric of resident at from recognize owned our cases to and post-COVID celebrate important sitting

communities. employee outcomes efforts and to recognize our service and also We We levels frontline keep nearly continue healthy. our witnessed throughout our my steadfast consistent, across many I these employee care local to their compassionate X. energy to environment joy experience providers and months, in and and the our firsthand active fellow that cases accompany base, attribute and renewed vaccination safe Throughout moments increased of and the our all leadership staff travels residents are and recent and of open after and have more

adjust safe increased from We and for enjoyable activities manner. operating in-person to continue and to a model groups our accommodate larger family in and dining communal visits members

encouraging we these further of a with results, the rate environment April in and integrity results teams. as grow our leadership in to achieving volume sales the and referenced. first for these our while eases, the was are displayed continues focus move-in business The primary occupancy, energizing the maintaining to their strong pleased the Turning of operating ability continuation as of QX operations stability results Kim growth as quarter and local

For move-in year from XXXX. any rate QX February cases $X,XXX, pandemic. to our December, than and volume January was from during of in of national X.X% levels highest at onetime in change other during strong resulted decline the begin the the rate offered QX, ensure a average concessions COVID to increased point sequential The of

Our March XX% rate at by move-ins February. $X,XXX increased X% month-over-month, increased and March from

increase their average was X%. Our And in-place place rent rent in-place as residents increases QX, take in renew leases. our

of We increase continue level this expect throughout year. to the

of requiring our advanced continue daily and increased Kim engagement restrictions in near will and Trails operating on of The a advanced the care and referenced, each the resident pace. nearly memory Therapies residents to loosening will public impact communities renewed implementation the Aegis since programs April of our May partnership were levels implementation of of saw impact cases in with As recovery XXXX. the our wellness an and rollout front. resident focus enjoyable ongoing services provided all further shelter or accelerated on COVID-XX continue The March at at X, deliver the programming programming Magnolia each COVID lowest XXXX, with occupancy living and which safe, a positively environment, healthy states to the to move-out of care month place. in supporting and in

trends the sustain previous national We of occupancy further months. two continued in improvement are optimistic the landscape will the the

a on QX of our delivered lead our growth conversion strategic development sales and training inside have tour capabilities to in programs We continue The in move-in and XXXX, and of execution team of our expansion in sales robust focus improved quality. priorities. sales ratios indicator key improvement

May remains even mid- high volume Our reflect early in as tour Results increased indicators to in has volume from and the of percentage efforts. these April to March, progress significantly XXXX. lead move-in in each XXs, on the

additional continued a CARES pay real in decline COVID-XX Act include efforts. XX% communities longer staff while premium front, revenue-generating the our X.X% to sequential the complete the of in impact the no Texas received due our costs to March cases under direct operating of in in in fee, management in decrease winter in cost These Use holding on $XXX,XXX QX reimbursement component of the QX quarter. in a by and labor success and a A the labor to costs of total thus taxes. include in nearly the Both labor expenses expense labor show far sequential and not decrease X.X% decreased labor compensation investing year-over-year pay and basis current beginning approximately insurance premium model to stat X% do QX. is but XXXX. elimination material in environment continuing COVID, approximately estate costs in excluding includes in onetime QX On labor labor for led also results a mid-February. further in storm due stable of of related QX,

benefits operating competitive local continue and while in the well-being Our their occupancy residents related environment communities as the ensure landscape throughout unfolds. impact political consistent evolving on safety the and staff. unemployment have address changes model expense wage our adjust ensuring diligently and across to service monitoring teams our to our to consistent maintained safety staffing to a of summary, residents availability. We're the the and industries pandemic operating of the closely model In nation

expense the in from will increases, continue Occupancy impacts food months front XXXX. and variable tailwinds ongoing primarily the improvement in on optimistic the remain increases of As the We while COVID supply-related will remains of come. the in recovery labor consist items, occupancy support industry to constant. QX occupancy will

the outreach the industry in excited enjoyable efforts in delivers the and and XXXX. I outperforming am to trajectory experience lead future recovery successfully of half Our consistent to the thankful and residents ensure attract leadership safe continue that programming an the our occupancy through grow second goal and teams has resident-based to field CSL is recovery.

turn Tiffany a the our call to of I'll to over detailed review provide Now financials.

Tiffany Dutton

Good everyone. Brandon. afternoon, you, Thank

of has and of nears and wave the team to we and Although job country health continued mitigate our end quarter revenues, overall COVID-XX the environment their remained occupancy control move-ins on do and results continuing in while The our began COVID-XX the on an our and staff pandemic of the but our excellent to results end the the impact as increases cost we within residents our challenging, of to of operating operations of safety has in as impact the XXXX first pandemic. members. reflect to our the managing prioritize the traffic quarter, the neared see third

to pursuant from funds We million receipt also benefited the funding January CARES distribution $X.X general of XXXX. in the in relief Phase relief provider Act X

our our The reflects business, two of dispose [Technical with first quarter balance stabilize positive over position. associated improve also completed actions Difficulty] of continued sheet the impacts the to we years past course

or of an $XX.X Our of and related in with compared certain of to million the community XXXX. of XXXX million million reported quarter XXXX, was quarter the sales operating XX the fees the in first management these reimbursement first managed revenues related associated that behalf. million revenue communities for were million. the on to decrease throughout increase costs of $XX.X was the $XXX.X revenue the partially first we of by paid reimbursement $XX.X to properties in of offset $XX.X conversions Most their quarter

You'll see that our is on $XX.X same million. for a expense statement there income corresponding the

million $XX.X $X.X and Operating decrease Our compared occupancy the of is a quarter decrease slight a of expenses in decrease million. when XXXX. first in management approximately due revenue The the remainder $XX.X levels quarter in that fee first the XXXX the of in of were referenced. Brandon revenues quarter lower million, first to was to rates

in As all in quarter discussing part of decrease than accounted XXXX XX first the fewer or a for first These expenses in I combined when we basis. mentioned XXXX. of our quarter communities the the majority we revenue, XX on the had communities for of of decline had

of of the have the which once portfolio that portfolio, comprise our will owned to results communities now XX go-forward communities transitions the Turning all continuing completed. been consists

Our decreased Compared the compared first XXXX year, X.X%. continuing of $X.X XX.X% million in decreased million of the $X.X XXXX. revenue or first communities' of to to quarter quarter or fourth the last quarter revenues

occupancy XXX the company. this of quarter our move-ins for compared clinics to fourth that point vaccination our the success third earlier XXXX; the of an pandemic, to The however, to have and impacted contributed decline wave of our basis referenced the increases which inflection industry in point year, led Kim

expenses, last focus the including leads, quality our occupancy community managing labor team's navigated of fourth costs to compared the the begin metrics, for to improve to on on exclude tight of operations of operating the which positive of slightly of have quarter cost the which pandemic. our Continuing reputation We Although sales the was a resulted actions to have labor year in as in increased lingering market. we and our XX.X%, to indicates quarter continuing into we costs April, average environment. due as momentum impact score communities in XX.X% managing community the quarter occupancy taken move key the COVID-related $XXX,XXX visibility in our our first XXXX post-COVID focus and to offset decreased the of successfully success in

XXXX, remainder increase Compared utilities quarter Our employee to labor our costs to quarter X.X%. decreased $XXX,XXX combined investments sequentially initiatives or occupancy categories primarily other the of during the decreased and advertising quarter. increase marketing and expenses increase or which to X.X%. of from an expenses in the in $XXX,XXX The X.X%, first or continuing $XXX,XXX expense resulted during

labor as funding with $X.X premium was included, we Our COVID-XX continuing cost expenses, define was million, which less NOI net community relief operating operating of exclusive margin, income and our revenues and XX.X%.

incentive employee terminations programs and benefits year. lease health by executed transaction which and bonus that compared of were is expenses first $X.X XXXX increases first employee to of the partially the increase higher related XXXX. primarily quarter and and million in insurance million administrative retention offset quarter and were Our approximately in last $X.X due claims, to to costs, decreases of amendments were $XXX,XXX the and general The for in

$X.X the the of During in of Provider receipt Phase EBITDAR relief the Adjusted other Fund first which income from the quarter of of X earlier. that $X.X funding first XXXX, million discussed of we quarter I million, recognized in funds CFFO Relief includes expenses XXXX. and first When the $X.X expenses, in $X.X million was CFFO million. adjusted million first are COVID-XX negative for quarter the was a relief Adjusted $X.X was million. $X.X COVID XXXX excluded, was quarter. of EBITDAR, Adjusted excluding

million liquidity, in the March to $XX.X that we XX, now noted unrestricted at XXXX. release Turning had we cash of

Phase quarters and Provider expenses X As are call, Relief million we COVID-XX we year. the received to to grants of the received for and Funds fund funding second in of lost earnings The approximately our intended first during year-end January revenues announced of we distribution XXXX. pursuant $X.X general this relief

additional additional senior not Although to continue announced, funding grants living government regarding monitor the been developments we yet diligently to industry. has

as for soon funding We becomes as available. additional will it apply

We to underperforming of of ownership progress continue Mae. transfer XX properties to the with Fannie

debt communities of quarter, ownership end transferred During three $XX Since of Fannie Mae we and a are the our those At of first successfully accrued of notes related $XXX.X of March the XX, in to communities. on current Mae, legal liabilities three extinguishment and active extinguishment million communities to expected accrued the and of properties. ownership the recognized to our to related December of on loans, bridge in the gains we in gain on of and remaining lenders debt million related million interest expect to the our transfer those as currently transferred occur XXXX. that to legal completed totaling scheduled ownership interest of of two regarding of quarter, properties. mature sheet $X included is recognize Also, balance $XX.X the Fannie in the are remaining we throughout have the on the payable which discussions additional million properties XXXX, we refinancing two extension we XX with

third our of transformational final We year and strategy. in are the

of financial foundation the As remainder two last the are during to platform toward of we we improvements operating made results look the years. we beginning have and XXXX, realize to significant the our

to growth. final Magnolia as our new Trails well and as plan investments positioned of continued wellness have our transformational Our us the move and phase in sales programming marketing into

are the second our Although will have ask That the the with Devon, results months ahead. now half in operator, our still that we pleased of to we we line about our since questions. for recovery, open in improvements concludes early the and remarks. I March are optimistic prepared the in seen are occupancy

Operator

time, with with of this Please question-and-answer question. Our Valiquette will proceed Instructions] question a line first we Barclays. comes be your At the [Operator conducting session. Steven from

Steven Valiquette

Just the X have slide a few questions in Slide deck. on

First, the expect was look of wasn't depending XX% both NOI same but talked trending I And the I think here. from couple dollars a roughly NOI you prepared and quarter dollars upward 'XX, the the, in you about in improve to it, the margin. NOI here? that first sequentially do from on the the both on have sure then questions I of follow-up call at if we and answer. comments, If margin topic

Kimberly Lody

Yes.

start I'll in. can then and jump So Brandon

So here, growth because one really of around business. leverage operating to will the key is the the incremental items occupancy provide Steve, it

think model I labor as last we we've would ensure really mentioned we went before, in through to year, enough we pandemic our staffing. communities our maintained the that have

in And improvement, around that to occupancy occupancy the per about place think is we like the month XX%. revenue. labor about in occupancy have improvement. that the believe we And should $XXX,XXX so about And point as incremental you absorb operating flow-through leverage, of given each feel we be

And on NOI incremental XXX about that would points $X.X be and we basis every in an million so about dollars. expect million incremental revenue in $X.X annualized would basis,

Steven Valiquette

of year. Great. X talked Okay. the about -- couple you the was rent little in That's was March bit of helpful. rent the Also like corner, first on sounded it guys months trending right-hand of Page concessions better a year-over-year. where the average It upper up in some the

numbers look 'XX, at the a of right RevPOR even part year-over-year that should X? year versus ago that, as the be could specifically the we Slide or calendar rest assume rent about think we As in we for of upper growing

Brandon Ribar

dependent. on rate resident. year a -- think will going the anniversary are Yes. do in-place because the for that it's date market the have to Steven, be But increases I bit we it throughout

that rate We the have the X% we we'll have then the will look approximately well, increase as begun and be as at recover that decline is rate. to a front able them need for expectation it at the see concessions on versus continued And XXXX. our to as

Steven Valiquette

might I this. missed some have question. on final Then comments Great. Okay.

expense cetera. the NOI, how But G&A million trend run on expenses, quarterly go higher Or efforts, that Is So about a should for think know million other the increased reasons? perhaps run et below rate good for basis $X around still I quarter, of forward? we sales a could some that lower about talked G&A once going we rate? the of or expense you $X.X marketing

Kimberly Lody

Yes.

some, really of first is Steve, that the And the run quarter. which Our the to to communities, in year. it, anticipated end QX we improve last expectation, the it call extraordinary we'll had transition being will transitions by continue the of G&A in rate here occurred expenses year. transitioned most related of those had throughout the

there bit to transitions and through was accounting get a quite get work the so finished of of off. those And those

level deck weeks would at had continue QX we will down to sort the So that a the year our and of throughout be ago. run G&A we just expect rate put that the in few

Operator

for on back There are comments. the I to to further questions queue. no closing turn over like would floor any Lody the Ms.

Kimberly Lody

our concludes That Thank earnings you, everyone, and call for day. great a have today.

Sonida Senior Living (SNDA) 13 May 212021 Q1 Earnings call transcript