Full Press Release Details
| Capital Senior Living Corporation | ||||||||
| For Immediate Release | Contact: | Ralph A. Beattie | ||||||
| 972/770-5600 |
CAPITAL SENIOR LIVING CORPORATION
REACHES 100TH COMMUNITY MILESTONE
Acquisition of Two Communities for $32.8 Million;
Increases CFFO $0.07
DALLAS (BUSINESS WIRE) December 21, 2012 Capital Senior Living Corporation (the
Company ) (NYSE:CSU), one of the country s largest operators of senior living communities, today announced a significant milestone for the Company with the acquisition of its
100th community. The Company is completing the acquisition
of an additional senior living community; the purchase price for the two communities totals $32.8 million. These communities are in Missouri and Ohio, enhancing the Company s existing operations in these states. The levels of care offered at
these communities include independent living, assisted living and memory care. The two communities are being financed with approximately $24.6 million of 10-year fixed rate debt that is non-recourse to the Company with a blended interest rate of
Highlights of these transactions include:
With the closing of these two communities, the Company will have completed in 2012 the acquisition of 17 communities for a combined purchase price of $181.3 million. These communities are expected to
generate $0.34 of CFFO and 18% cash-on-cash return on invested capital in the first 12 months of ownership.
The Company is conducting due
diligence on additional transactions consisting of high-quality senior living communities in regions with extensive existing operations. Subject to completion of due diligence and customary closing conditions, the Company expects to acquire
additional communities in the first quarter of 2013.
We take great pride in achieving this milestone of 100 communities for the Company, our residents and
our shareholders, said Lawrence A. Cohen, Chief Executive Officer of the Company. These acquisitions continue the successful execution of our strategic plan for accretive growth and significantly enhance shareholder value. We continue
our geographic concentration by acquiring high-quality senior living communities in existing markets that generate meaningful increases in CFFO and earnings. Our competitive strengths enable us to execute on attractive acquisitions and benefit from
historically low interest rates. The exceptional returns generated by these acquisitions complement the positive results we are achieving in our operations with increases in occupancy and average monthly rents. As the value leader in providing
quality seniors housing and care at reasonable prices, we are well positioned to make further gains as a substantially all private-pay business in an industry that benefits from need-driven demand, limited new supply and a recovering housing
Capital Senior Living Corporation is one of the nation s largest operators of residential communities for senior adults. The Company s operating philosophy emphasizes a continuum of care, which
integrates independent living, assisted living and home care services, to provide residents the opportunity to age in place. With these transactions, the Company will operate 101 senior living communities in geographically concentrated regions with
an aggregate capacity of approximately 13,600 residents.
The forward-looking statements in this release are subject to certain risks and
uncertainties that could cause results to differ materially, including, but not without limitation to, the Company s ability to find suitable acquisition properties at favorable terms, financing, licensing, business conditions, risks of
downturns in economic conditions generally, satisfaction of closing conditions such as those pertaining to licensure, availability of insurance at commercially reasonable rates, and changes in accounting principles and interpretations among others,
and other risks and factors identified from time to time in our reports filed with the Securities and Exchange Commission.
release contains certain financial information not derived in accordance with generally accepted accounting principles (GAAP), including adjusted CFFO, adjusted CFFO per share and other items. The Company believes this information is useful to
investors and other interested parties. Such information should not be considered as a substitute for any measures derived in accordance with GAAP, and may not be comparable to other similarly titled measures of other companies.
Contact Ralph A. Beattie, Chief Financial Officer, at 972-770-5600 for more information.