Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CAPITAL SENIOR LIVING CORP | d622256d8k.htm |
| EX-99.1 - EX-99.1 - CAPITAL SENIOR LIVING CORP | d622256dex991.htm |
 Capital Senior Living
Company Presentation
Exhibit 99.2 |
 2
Forward-Looking Statements
•
The forward-looking statements in this presentation are subject to certain risks
and
uncertainties
that
could
cause
results
to
differ
materially,
including,
but
not
without limitation to, the Company’s ability to complete the refinancing of
certain
of
our
wholly
owned
communities,
realize
the
anticipated
savings related
to such financing, find suitable acquisition properties at favorable terms,
financing,
licensing,
business
conditions,
risks
of
downturns
in
economic
conditions
generally,
satisfaction
of
closing
conditions
such
as
those
pertaining
to licensures, availability of insurance at commercially reasonable rates and
changes in accounting principles and interpretations among others, and other
risks and factors identified from time to time in our reports filed with the
Securities and Exchange Commission
•
The Company assumes no obligation to update or supplement forward-looking
statements in this presentation that become untrue because of new information,
subsequent events or
otherwise. |
 3
Investment Highlights
•
Value leader in providing quality seniors housing and care at
reasonable prices
•
Well positioned to make meaningful gains in shareholder value
•
Substantially all private pay with strong cash flow generation
•
Industry benefits from need-driven demand, limited new supply and
improving housing market
•
Achieving solid growth in occupancy, revenue and net operating
income
•
Executing on disciplined accretive growth initiatives through
acquisitions and conversions to higher levels of care
•
Solid balance sheet |
 4
Company Overview
•
Capital Senior Living operates 108 communities in geographically
concentrated regions with the capacity to serve 14,300 residents
|
 5
Resident Demographics at CSU Communities
•
Average age of resident: 85 years
•
Average age of resident moving in: 82 years
•
Average
stay
period:
2-3
years
•
Percent of female residents: 80%
•
Resident turnover is primarily attributed to death or need for
higher care |
 6
The Capital Advantage: Senior Living Options
Independent Living –
54% of Resident Capacity
•
Average 115 units per IL community with large common areas and
amenities
•
Supportive services, wellness programs, social, recreational and
educational events
•
Average monthly rate of $2,475
•
100% private pay
•
Average length of resident stay is 34 months |
 7
The Capital Advantage: Senior Living Options
Assisted Living-
46% of Resident Capacity
•
Average 66 units per community
•
73% of communities offer AL
•
Assistance with activities of daily living including medication
reminders, bathing, dressing and grooming
•
Average monthly rate of $3,677
•
Substantially all private pay
•
Average length of resident stay is 26 months |
 8
The Capital Advantage: Need Driven Demand
U.S. population 75+ years old is estimated to grow by 3.5 million from
2009 through 2015
•
Only 1.3 million units serving a population of 18.9 million seniors
•
Current 6.9% penetration rate implies demand growth of 40,000 units
per year
U.S. Seniors Population Trends (75+ years old)
(Population in
millions)
Implied demand growth of
40,000 units per year
Source: NIC Investment
Guide 2010 and U.S.
Census Bureau |
 9
The Capital Advantage: Limited New Supply
Source: Seniors NIC MAP100 Trends |
 10
The Capital Advantage: Senior Housing Occupancy Trends
Source: Seniors NIC MAP100 Trends |
 11
The Capital Advantage: Competitive Strengths
•
Value leader in geographically concentrated regions
•
Experienced on-site, regional and corporate management
•
Larger company economies of scale and proprietary systems
that yield operating efficiencies in highly fragmented industry
•
Solid reputation in industry and 95% resident satisfaction
•
Employer of choice
•
Solid balance sheet
•
Strong Board of Directors |
 12
The Capital Advantage: Strategy
•
Focus on our core strengths
•
Capitalize on competitive strengths within each of our regions
to maximize the cash flow generated by our communities and
our operations
•
Capitalize on the fragmented nature of the senior living
industry to strategically aggregate local and regional operators
in geographically concentrated regions
•
Increase levels of care through conversions to Assisted Living
or Memory Care units
•
Attract and retain the best talent in the senior living industry
|
 13
2013 Business Plan
•
Focused on Operations, marketing and growth to enhance
shareholder value through:
•
Organic growth
•
Proactive expense Management
•
Accretive acquisitions and unit conversions
•
Utilization of technology |
 14
2013 Business Plan: Organic Growth
•
Increase average rents
•
Each 3% increase generates $10.4M of revenue
•
Improve occupancies
•
Each 1% generates $3.5M of revenue, $2.5M of EBITDAR and $0.06 per
share of CFFO
•
Convert units to higher levels of care
•
Cash flow enhancing renovations and refurbishments
•
New branding strategy, eMarketing and website enhancements
•
Implement software programs to optimize care plans and level of
care changes |
 15
Operating Performance
•
Same-store comparable trends |
 16
2013 Business Plan: External Growth
•
Strategic acquisitions of high quality senior living communities
to
enhance
geographic
concentrations
-
17%
cash
on
cash
returns
(in millions except number of communities and units)
2012
2013 YTD
Combined
Purchase Price
$181.3
$85.4
$266.7
Communities
17
7
24
Units
1,367
493
1,860
Debt
$129.5
$63.7
$193.1
Equity
$51.8
$21.7
$73.5
First Year Revenue
$49.1
$20.5
$69.6
First Year EBITDAR
$19.1
$8.4
$27.5
First Year Cash Flow from
Operations (CFFO)
$9.1
$3.7
$12.8
First Year CFFO per share
$0.34
$0.13
$0.47 |
 17
Operating Performance
•
Revenue and EBITDAR growth
•
EBITDAR increased 104.9% on an 83.7% increase in revenue
•
EBITDAR margin increased from 29.9% in Q1 2010 to 35.2% in Q3
2013
*
As adjusted in Q3 2013 earnings release |
 18
Income Statement: September YTD Comparison
As adjusted in press releases
2013
2012
% Increase
Total Revenues
$ 261.4
$ 227.3
15.0%
Operating Expenses
(153.5)
(133.1)
General & Administrative Expenses
(13.8)
(9.7)
Other Expense
(4.3)
(3.7)
EBITDAR
$ 89.8
$ 80.8
11.1%
% Margin
35.0%
35.6%
Lease Expense
(42.8)
(41.2)
Interest, Taxes and Other
(43.4)
(33.8)
Net Income
$ 3.6
$ 5.8
Earning Per Share
$0.13
$0.21
CFFO
$ 28.1
$ 23.9
17.6%
CFFO Per Share
$1.01
$0.87 |
 19
Balance Sheet
•
As of September 30, 2013 (in millions)
ASSETS
Cash and Securities
$ 30.2
Other Current Assets
25.1
Total Current Assets
55.3
Fixed Assets
565.9
Other Assets
48.7
TOTAL ASSETS
$ 669.9
LIABILITIES & EQUITY
Current Liabilities
$ 54.4
Long-Term Debt
387.7
Other Liabilities
61.3
Total Liabilities
503.4
Stockholders’
Equity
166.5
TOTAL LIABILITIES &
EQUITY
$ 669.9 |
 20
Investment Highlights
•
Value
leader
in
geographically
concentrated
regions
•
Substantially
all
private
pay
•
Need-driven
demand,
limited
new
supply
and
improving
housing
market
•
Experienced
management
team
with
demonstrated
ability
to
operate,
acquire
and
create
shareholder
value
•
Accretive
acquisitions
in
highly
fragmented
industry
•
Conversions
to
higher
levels
of
care
with
significant
revenue
and
cash
flow
growth
•
Strong
cash
flow
generation
•
Solid
balance
sheet |
 Capital Senior Living
Company Presentation |