Full Press Release Details
CAPITAL SENIOR LIVING CORPORATION
REPORTS THIRD QUARTER 2015 RESULTS
(BUSINESS WIRE) November 3, 2015 Capital Senior Living Corporation (the Company ) (NYSE:CSU), one of the nation s largest operators of senior living communities, today announced operating and financial
results for the third quarter of 2015. Company highlights for the third quarter include:
Operating and Financial Summary (all amounts in
this operating and financial summary exclude four communities that are undergoing repositioning, lease-up or significant renovation and conversion, unless otherwise noted; also, see Non-GAAP Financial Measures below)
We continue to demonstrate the advantages of our
differentiated business strategy as we successfully execute on the multiple avenues of growth under our straightforward strategic plan. This produced substantial growth in all of our key metrics in the third quarter, including revenue, occupancy,
average monthly rent, NOI, Adjusted EBITDAR and Adjusted CFFO as compared to the prior year, said Lawrence A. Cohen, Chief Executive Officer of the Company. Our occupancy gains continue to outpace the industry, with same-community
occupancy increasing 70 basis points from the second quarter of 2015 and 60 basis points from the third quarter of 2014. We continue to see limited new supply and construction in our local markets. Also, our conversions of independent living units
to assisted living and memory care units continue to show timely progress.
Complementing this growth is a robust pipeline that allows us to
continue our disciplined and strategic acquisition program that increases our ownership of high-quality senior living communities in geographically concentrated regions and generates meaningful increases in CFFO, earnings and real estate value. We
have closed on nine such communities so far this year, and we continue to pursue additional opportunities.
We believe that we are well positioned
to make sustainable meaningful gains in shareholder value as a substantially all private-pay business in an industry that benefits from need-driven demand, limited new supply in our local markets, a strong housing market and an improving
Recent Investment Activity
highlights of the transactions include:
The communities were
financed with an aggregate of approximately $34.3 million of non-recourse 10-year mortgage debt at an average fixed interest rate of 4.39%. Initial funding for one of the acquisitions was purposely limited to accommodate a like-kind exchange
structure for tax purposes related to the Company s sale of its community in Kansas. Additional funding of approximately $2.6 million is expected in the first half of 2016 at a fixed interest rate of 4.25%.
Financial Results - Third
For the third quarter of 2015, the Company reported revenue of $104.4 million, compared to revenue of $98.5 million in the third quarter
of 2014, an increase of 6.0%. Excluding the revenue of the five communities the Company has sold since the third quarter of 2014 from all appropriate periods, revenues increased $8.9 million, or 9.4%, in the third quarter of 2015 as compared to the
third quarter of 2014, mostly due to the acquisition of 12 communities during or after the third quarter of 2014. Operating expenses for the third quarter of 2015 were $63.3 million, an increase of $3.5 million from the third quarter of 2014.
Revenue for consolidated communities excluding the four communities undergoing repositioning, lease-up or significant renovation and conversion increased 6.0%
in the third quarter of 2015 as compared to the third quarter of 2014. Net operating income for these communities increased 6.4% in the third quarter of 2015 as compared to the third quarter of 2014. These increases were achieved with less units
available for lease in the third quarter of 2015 than the third quarter of 2014 due to conversion and refurbishment projects currently in progress at certain communities during the third quarter of 2015.
General and administrative expenses for the third quarter of 2015 were $4.8 million, which includes $0.5 million of transaction and other one-time costs.
Excluding transaction and other one-time costs, general and administrative expenses decreased $0.6 million in the third quarter of 2015 as compared to the third quarter of 2014. As a percentage of revenues under management, general and
administrative expenses, excluding transaction and other one-time costs, were 4.1% in the third quarter of 2015 as compared to 4.9% in the third quarter of 2014.
The Company s Non-GAAP financial measures exclude four communities that are undergoing repositioning, lease-up of higher-licensed units or significant
renovation and conversion (see Non-GAAP Financial Measures below). Also, as previously noted, beginning in 2015, the Company no longer includes the change in prepaid resident rent as a component of Adjusted CFFO as it is a non-economic
Adjusted EBITDAR for the third quarter of 2015 was approximately $36.4 million, an increase of $2.9 million, or 8.7%, from the third quarter
of 2014. This does not include EBITDAR of $0.8 million related to four communities undergoing repositioning, lease-up or significant renovation and conversion. The Adjusted EBITDAR margin for the third quarter of 2015 was 36.5%, which is a
record-high third quarter margin for the Company and an increase of 90 basis points from the third quarter 2014 margin of 35.6%.
The Company recorded net
income of $2.9 million in the third quarter. Excluding non-recurring or non-economic items reconciled on the final page of this release, the Company s adjusted net income was $0.3 million, or $0.01 per share, in the third
quarter of 2015. Adjusted CFFO was
$12.0 million, or $0.42 per share, in the third quarter of 2015, a 14.4% increase from the third quarter of the prior year. On a comparable basis, Adjusted CFFO was $10.5 million, or $0.37 per share, in the third quarter of 2014.
Operating Activities
Same-community results
exclude the four communities previously noted that are undergoing repositioning, lease-up or significant renovation and conversion, and transaction and other one-time costs.
Same-community revenue in the third quarter of 2015 increased 1.5% versus the third quarter of 2014. Due to conversion and refurbishment projects currently in
progress at certain communities, fewer units were available for rent in the third quarter of this year as compared to the third quarter of last year. With a like number of units available in both years, same-community revenue would have increased
approximately 2.5% in the third quarter of 2015 as compared to the third quarter of the prior year. Same-community expenses increased 1.4% from the third quarter of the prior year. Labor costs, including benefits, increased 0.8%, while food costs
decreased 1.5% and utilities increased 1.4% in the third quarter of 2015 as compared to the third quarter of the prior year. Same-community net operating income increased 1.7% in the third quarter of 2015 as compared to the third quarter of 2014.
With a like number of units available in both years, same-community net operating income would have increased approximately 3.5% from the third quarter of the prior year.
Capital expenditures for the third quarter of 2015 were $10.1 million, representing approximately $8.6 million of investment spending and approximately $1.5
million of recurring capital expenditures. If annualized, spending for recurring capital expenditures was approximately $505 per unit.
The Company ended the quarter with $47.8 million of cash and cash equivalents, including restricted cash, a decrease of $3.9 million since
June 30, 2015. During the third quarter of 2015, the Company invested $15.5 million of cash as equity to complete the acquisitions of three communities and spent $10.1 million on capital improvements.
As of September 30, 2015, the Company financed its owned communities with mortgages totaling $709.5 million at interest rates averaging 4.6%. All of the
Company s debt is at fixed interest rates, except for one bridge loan totaling approximately $11.8 million at September 30, 2015, at a current variable rate of approximately 4.65%. Otherwise, the Company has no mortgage maturities before
the third quarter of 2017.
The Company s cash on hand and
cash flow from operations are expected to be sufficient for working capital, prudent reserves and the equity needed to fund the Company s acquisition program.
Q3 2015 Conference Call Information
will host a conference call with senior management to discuss the Company s third quarter 2015 financial results. The call will be held on Tuesday, November 3, 2015, at 5:00 p.m. Eastern Time. The call-in number is 913-312-0720,
confirmation code 1077698. A link to a simultaneous webcast of the teleconference will be available at www.capitalsenior.com through Windows Media Player or RealPlayer.
For the convenience of the Company s shareholders and the public, the conference call will be recorded and available for replay starting November 3,
2015 at 8:00 p.m. Eastern Time, until November 12, 2015 at 8:00 p.m. Eastern Time. To access the conference call replay, call 719-457-0820, confirmation code 1077698. The conference call will also be made available for playback via the
Company s corporate website, www.capitalsenior.com, beginning November 4, 2015.
Non-GAAP Financial Measures
Adjusted EBITDAR, Adjusted EBITDAR Margin, Adjusted Net Income and Adjusted CFFO are financial measures of operating performance that are not calculated in
accordance with U.S. generally accepted accounting principles ( GAAP ). Non-GAAP financial measures may have material limitations in that they do not reflect all of the amounts associated with our results of operations as determined in
accordance with GAAP. As a result, these non-GAAP financial measures should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP. The Company believes that these
non-GAAP measures are useful in identifying trends in day-to-day performance because they exclude items that are of little or no significance to operations and provide indicators to management of progress in achieving optimal operating performance.
In addition, these measures are used by many research analysts and investors to evaluate the performance and the value of companies in the senior living industry. The Company strongly urges you to review the reconciliation of net income from
operations to Adjusted EBITDAR and Adjusted EBITDAR Margin and the reconciliation of net loss to Adjusted Net Income and Adjusted CFFO, along with the Company s consolidated balance sheets, statements of operations, and statements of cash
Living Corporation is one of the nation s largest operators of residential communities for senior adults. The Company s operating strategy is to provide value to residents by providing quality senior living services at reasonable prices.
The Company s communities emphasize a continuum of care, which
integrates independent living,
assisted living, and home care services, to provide residents the opportunity to age in place. The Company operates 121 senior living communities in geographically concentrated regions with an aggregate capacity of approximately 15,400 residents.
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, refinancing, community sales, 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.
For information about Capital Senior Living, visit www.capitalsenior.com.
Contact Carey P. Hendrickson, Chief Financial Officer, at 972-770-5600 for more information.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
| September 30, | December 31, | |||||||
| 2015 | 2014 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 34,687 | $ | 39,209 | ||||
| Restricted cash | 13,155 | 12,241 | ||||||
| Accounts receivable, net | 8,272 | 5,903 | ||||||
| Accounts receivable from affiliates | 3 | 5 | ||||||
| Federal and state income taxes receivable | 137 | |||||||
| Deferred taxes | 129 | 460 | ||||||
| Assets held for sale | 35,761 | |||||||
| Property tax and insurance deposits | 12,163 | 12,198 | ||||||
| Prepaid expenses and other | 4,721 | 6,797 | ||||||
| Total current assets | 73,267 | 112,574 | ||||||
| Property and equipment, net | 848,019 | 747,613 | ||||||
| Other assets, net | 38,117 | 37,514 | ||||||
| Total assets | $ | 959,403 | $ | 897,701 | ||||
| LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 694 | $ | 2,540 | ||||
| Accounts payable to affiliates | 7 | |||||||
| Accrued expenses | 34,837 | 32,154 | ||||||
| Notes payable of assets held for sale | 15,076 | |||||||
| Current portion of notes payable | 14,055 | 33,664 | ||||||
| Current portion of deferred income and resident revenue | 14,224 | 14,603 | ||||||
| Current portion of capital lease and financing obligations | 1,145 | 1,054 | ||||||
| Federal and state income taxes payable | 219 | |||||||
| Customer deposits | 1,950 | 1,499 | ||||||
| Total current liabilities | 66,905 | 100,816 | ||||||
| Deferred income | 14,494 | 15,949 | ||||||
| Capital lease and financing obligations, net of current portion | 39,228 | 40,016 | ||||||
| Deferred taxes | 129 | 460 | ||||||
| Other long-term liabilities | 1,326 | 1,426 | ||||||
| Notes payable, net of current portion | 697,687 | 597,860 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders equity: | ||||||||
| Preferred stock, $.01 par value: | ||||||||
| Authorized shares 15,000; no shares issued or outstanding | ||||||||
| Common stock, $.01 par value: | ||||||||
| Authorized shares 65,000; issued and outstanding shares 29,519 and 29,097 in 2015 and 2014, respectively | 299 | 294 | ||||||
| Additional paid-in capital | 157,858 | 151,069 | ||||||
| Retained deficit | (17,589 | ) | (9,255 | ) | ||||
| Treasury stock, at cost 350 shares | (934 | ) | (934 | ) | ||||
| Total shareholders equity | 139,634 | 141,174 | ||||||
| Total liabilities and shareholders equity | $ | 959,403 | $ | 897,701 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(unaudited, in thousands, except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Revenues: | ||||||||||||||||
| Resident and healthcare revenue | $ | 104,420 | $ | 98,466 | $ | 304,648 | $ | 280,240 | ||||||||
| Affiliated management services revenue | 415 | |||||||||||||||
| Community reimbursement revenue | 17 | 3,110 | ||||||||||||||
| Total revenues | 104,420 | 98,483 | 304,648 | 283,765 | ||||||||||||
| Expenses: | ||||||||||||||||
| Operating expenses (exclusive of facility lease expense and depreciation and amortization expense shown below) | 63,649 | 59,992 | 184,487 | 171,268 | ||||||||||||
| General and administrative expenses | 4,751 | 5,515 | 15,482 | 15,137 | ||||||||||||
| Facility lease expense | 15,321 | 14,841 | 45,875 | 44,524 | ||||||||||||
| Stock-based compensation expense | 2,301 | 1,599 | 6,745 | 5,676 | ||||||||||||
| Depreciation and amortization | 12,722 | 13,840 | 38,985 | 35,607 | ||||||||||||
| Community reimbursement expense | 17 | 3,110 | ||||||||||||||
| Total expenses | 98,744 | 95,804 | 291,574 | 275,322 | ||||||||||||
| Income from operations | 5,676 | 2,679 | 13,074 | 8,443 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 12 | 12 | 36 | 40 | ||||||||||||
| Interest expense | (8,994 | ) | (8,255 | ) | (26,022 | ) | (22,785 | ) | ||||||||
| Write-off of deferred loan costs and prepayment premiums | (102 | ) | (973 | ) | (6,979 | ) | ||||||||||
| Joint venture equity investment valuation gain | 1,519 | |||||||||||||||
| Gain (Loss) on disposition of assets, net | 6,418 | (1 | ) | 6,247 | (11 | ) | ||||||||||
| Equity in earnings of unconsolidated joint ventures, net | 105 | |||||||||||||||
| Other income | 5 | 1 | 22 | |||||||||||||
| Income (Loss) before provision for income taxes | 3,010 | (5,560 | ) | (7,637 | ) | (19,646 | ) | |||||||||
| Provision for income taxes | (139 | ) | (199 | ) | (697 | ) | (579 | ) | ||||||||
| Net income (loss) | $ | 2,871 | $ | (5,759 | ) | $ | (8,334 | ) | $ | (20,225 | ) | |||||
| Per share data: | ||||||||||||||||
| Basic net income (loss) per share | $ | 0.10 | $ | (0.20 | ) | $ | (0.28 | ) | $ | (0.70 | ) | |||||
| Diluted net income (loss) per share | $ | 0.10 | $ | (0.20 | ) | $ | (0.28 | ) | $ | (0.70 | ) | |||||
| Weighted average shares outstanding basic | 28,732 | 28,371 | 28,668 | 28,273 | ||||||||||||
| Weighted average shares outstanding diluted | 28,733 | 28,371 | 28,668 | 28,273 | ||||||||||||
| Comprehensive income (loss) | $ | 2,871 | $ | (5,759 | ) | $ | (8,334 | ) | $ | (20,225 | ) |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
| Nine Months Ended September 30, | ||||||||
| 2015 | 2014 | |||||||
| Operating Activities | ||||||||
| Net loss | $ | (8,334 | ) | $ | (20,225 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 38,985 | 35,607 | ||||||
| Amortization of deferred financing charges | 853 | 999 | ||||||
| Amortization of deferred lease costs and lease intangibles | 987 | 922 | ||||||
| Deferred income | (308 | ) | (220 | ) | ||||
| Write-off of deferred loan costs and prepayment premiums | 973 | 6,979 | ||||||
| Joint venture equity investment valuation gain | (1,519 | ) | ||||||
| (Gain) Loss on disposition of assets, net | (6,247 | ) | 11 | |||||
| Equity in earnings of unconsolidated joint ventures | (105 | ) | ||||||
| Provision for bad debts | 873 | 517 | ||||||
| Stock-based compensation expense | 6,745 | 5,676 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (3,240 | ) | (2,481 | ) | ||||
| Accounts receivable from affiliates | 2 | 410 | ||||||
| Property tax and insurance deposits | 35 | 376 | ||||||
| Prepaid expenses and other | 2,076 | 3,080 | ||||||
| Other assets | (324 | ) | 756 | |||||
| Accounts payable | (1,853 | ) | 249 | |||||
| Accrued expenses | 2,683 | 3,203 | ||||||
| Federal and state income taxes receivable/payable | (356 | ) | (91 | ) | ||||
| Customer deposits | (1,526 | ) | 824 | |||||
| Deferred resident revenue | 451 | 117 | ||||||
| Net cash provided by operating activities | 32,475 | 35,085 | ||||||
| Investing Activities | ||||||||
| Capital expenditures | (23,665 | ) | (13,394 | ) | ||||
| Cash paid for acquisitions | (124,460 | ) | (145,555 | ) | ||||
| Proceeds from disposition of assets | 43,460 | 4 | ||||||
| Proceeds from SHPIII/CSL Transaction | 2,532 | |||||||
| Distributions from unconsolidated joint ventures | 102 | |||||||
| Net cash used in investing activities | (104,665 | ) | (156,311 | ) | ||||
| Financing Activities | ||||||||
| Proceeds from notes payable | 150,034 | 267,685 | ||||||
| Repayments of notes payable | (78,705 | ) | (128,553 | ) | ||||
| Increase in restricted cash | (914 | ) | (43 | ) | ||||
| Cash payments for capital lease and financing obligations | (697 | ) | (630 | ) | ||||
| Cash proceeds from the issuance of common stock | 42 | 169 | ||||||
| Excess tax benefits on stock option exercised | 7 | (82 | ) | |||||
| Deferred financing charges paid | (2,099 | ) | (3,115 | ) | ||||
| Net cash provided by financing activities | 67,668 | 135,431 | ||||||
| (Decrease) Increase in cash and cash equivalents | (4,522 | ) | 14,205 | |||||
| Cash and cash equivalents at beginning of period | 39,209 | 13,611 | ||||||
| Cash and cash equivalents at end of period | $ | 34,687 | $ | 27,816 | ||||
| Supplemental Disclosures | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 24,707 | $ | 20,873 | ||||
| Income taxes | $ | 1,028 | $ | 714 | ||||
| Non-cash transactions: | ||||||||
| Assumption of debt related to disposition of assets (Sedgwick Sale Transaction) | $ | 6,764 | $ |
Capital Senior Living Corporation
Supplemental Information
| Average | ||||||||||||||||||||||||
| Communities | Resident Capacity | Average Units | ||||||||||||||||||||||
| Q3 15 | Q3 14 | Q3 15 | Q3 14 | Q3 15 | Q3 14 | |||||||||||||||||||
| Portfolio Data | ||||||||||||||||||||||||
| I. Community Ownership / Management | ||||||||||||||||||||||||
| Consolidated communities | ||||||||||||||||||||||||
| Owned | 70 | 66 | 8,945 | 8,718 | 6,741 | 6,771 | ||||||||||||||||||
| Leased | 50 | 50 | 6,333 | 6,333 | 4,931 | 4,990 | ||||||||||||||||||
| Total | 120 | 116 | 15,278 | 15,051 | 11,672 | 11,761 | ||||||||||||||||||
| Independent living | 6,984 | 7,597 | 5,458 | 6,171 | ||||||||||||||||||||
| Assisted living | 8,294 | 7,454 | 6,214 | 5,590 | ||||||||||||||||||||
| Total | 15,278 | 15,051 | 11,672 | 11,761 | ||||||||||||||||||||
| II. Percentage of Operating Portfolio | ||||||||||||||||||||||||
| Consolidated communities | ||||||||||||||||||||||||
| Owned | 58.3 | % | 56.9 | % | 58.5 | % | 57.9 | % | 57.8 | % | 57.6 | % | ||||||||||||
| Leased | 41.7 | % | 43.1 | % | 41.5 | % | 42.1 | % | 42.2 | % | 42.4 | % | ||||||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
| Independent living | 45.7 | % | 50.5 | % | 46.8 | % | 52.5 | % | ||||||||||||||||
| Assisted living | 54.3 | % | 49.5 | % | 53.2 | % | 47.5 | % | ||||||||||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Capital Senior Living Corporation
Supplemental Information (excludes communities being repositioned/leased up)
Selected Operating Results
| Q3 15 | Q3 14 | |||||||
| I. Owned communities | ||||||||
| Number of communities | 67 | 63 | ||||||
| Resident capacity | 8,336 | 8,109 | ||||||
| Unit capacity (1) | 6,293 | 6,275 | ||||||
| Financial occupancy (2) | 90.3 | % | 89.0 | % | ||||
| Revenue (in millions) | 55.6 | 50.1 | ||||||
| Operating expenses (in millions) (3) | 31.3 | 28.3 | ||||||
| Operating margin | 44 | % | 44 | % | ||||
| Average monthly rent | 3,259 | 2,993 | ||||||
| II. Leased communities | ||||||||
| Number of communities | 49 | 49 | ||||||
| Resident capacity | 6,107 | 6,107 | ||||||
| Unit capacity (1) | 4,758 | 4,841 | ||||||
| Financial occupancy (2) | 87.0 | % | 86.2 | % | ||||
| Revenue (in millions) | 44.1 | 43.9 | ||||||
| Operating expenses (in millions) (3) | 22.2 | 21.8 | ||||||
| Operating margin | 50 | % | 50 | % | ||||
| Average monthly rent | 3,551 | 3,503 | ||||||
| III. Consolidated communities | ||||||||
| Number of communities | 116 | 112 | ||||||
| Resident capacity | 14,443 | 14,216 | ||||||
| Unit capacity (1) | 11,051 | 11,116 | ||||||
| Financial occupancy (2) | 88.9 | % | 87.8 | % | ||||
| Revenue (in millions) | 99.7 | 94.0 | ||||||
| Operating expenses (in millions) (3) | 53.5 | 50.1 | ||||||
| Operating margin | 46 | % | 47 | % | ||||
| Average monthly rent | 3,382 | 3,211 | ||||||
| IV. Communities under management | ||||||||
| Number of communities | 116 | 112 | ||||||
| Resident capacity | 14,443 | 14,216 | ||||||
| Unit capacity (1) | 11,051 | 11,116 | ||||||
| Financial occupancy (2) | 88.9 | % | 87.8 | % | ||||
| Revenue (in millions) | 99.7 | 94.0 | ||||||
| Operating expenses (in millions) (3) | 53.5 | 50.2 | ||||||
| Operating margin | 46 | % | 47 | % | ||||
| Average monthly rent | 3,382 | 3,211 | ||||||
| V. Same communities under management | ||||||||
| Number of communities | 104 | 104 | ||||||
| Resident capacity | 13,074 | 13,074 | ||||||
| Unit capacity (1) | 10,184 | 10,275 | ||||||
| Financial occupancy (2) | 88.6 | % | 88.0 | % | ||||
| Revenue (in millions) | 90.4 | 89.0 | ||||||
| Operating expenses (in millions) (3) | 47.9 | 47.3 | ||||||
| Operating margin | 47 | % | 47 | % | ||||
| Average monthly rent | 3,338 | 3,280 | ||||||
| VI. General and Administrative expenses as a percent of Total Revenues under Management | ||||||||
| Third Quarter (4) | 4.1 | % | 4.9 | % | ||||
| First nine months (4) | 4.5 | % | 4.7 | % | ||||
| VII. Consolidated Mortgage Debt Information (in thousands, except interest rates) (excludes insurance premium and auto financing) | ||||||||
| Total fixed rate mortgage debt | 697,729 | 558,726 | ||||||
| Total variable rate mortgage debt | 11,800 | 65,222 | ||||||
| Weighted average interest rate | 4.6 | % | 4.7 | % |
NON-GAAP RECONCILIATIONS
(In thousands, except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Adjusted EBITDAR | ||||||||||||||||
| Net income from operations | $ | 5,676 | $ | 2,679 | $ | 13,074 | $ | 8,443 | ||||||||
| Depreciation and amortization expense | 12,722 | 13,840 | 38,985 | 35,607 | ||||||||||||
| Stock-based compensation expense | 2,301 | 1,599 | 6,745 | 5,676 | ||||||||||||
| Facility lease expense | 15,321 | 14,841 | 45,875 | 44,524 | ||||||||||||
| Provision for bad debts | 329 | 145 | 873 | 517 | ||||||||||||
| Casualty losses | 306 | 167 | 827 | 582 | ||||||||||||
| Transaction and conversion costs | 543 | 858 | 2,007 | 2,098 | ||||||||||||
| Communities being repositioned/leased up | (776 | ) | (618 | ) | (2,127 | ) | (971 | ) | ||||||||
| Adjusted EBITDAR | $ | 36,422 | $ | 33,511 | $ | 106,259 | $ | 96,476 | ||||||||
| Adjusted EBITDAR Margin | ||||||||||||||||
| Adjusted EBITDAR | $ | 36,422 | $ | 33,511 | $ | 106,259 | $ | 96,476 | ||||||||
| Total revenues | $ | 104,420 | $ | 98,483 | $ | 304,648 | $ | 283,765 | ||||||||
| Communities being repositioned/leased up | (4,648 | ) | (4,370 | ) | (13,431 | ) | (10,073 | ) | ||||||||
| Adjusted revenues | $ | 99,772 | $ | 94,113 | $ | 291,217 | $ | 273,692 | ||||||||
| Adjusted EBITDAR margin | 36.5 | % | 35.6 | % | 36.5 | % | 35.2 | % | ||||||||
| Adjusted net income and net income per share | ||||||||||||||||
| Net income (loss) | $ | 2,871 | $ | (5,759 | ) | $ | (8,334 | ) | $ | (20,225 | ) | |||||
| Casualty losses, net of tax | 193 | 105 | 521 | 367 | ||||||||||||
| Transaction and conversion costs, net of tax | 342 | 541 | 1,264 | 1,322 | ||||||||||||
| Resident lease amortization, net of tax | 1,908 | 3,250 | 6,827 | 7,447 | ||||||||||||
| Write-off of deferred loan costs and prepayment premium, net of tax | 64 | 613 | 4,397 | |||||||||||||
| Joint venture equity investment valuation gain, net of tax | (957 | ) | ||||||||||||||
| Loss (Gain) on disposition of assets, net of tax | (4,043 | ) | 1 | (3,936 | ) | 7 | ||||||||||
| Deferred tax asset valuation allowance | (1,306 | ) | 2,068 | 3,044 | 7,463 | |||||||||||
| Tax impact of 4 property sale | 1 | 292 | ||||||||||||||
| Communities being repositioned/leased up, net of tax | 289 | 485 | 995 | 1,049 | ||||||||||||
| Adjusted net income | $ | 319 | $ | 691 | $ | 1,286 | $ | 870 | ||||||||
| Adjusted net income per share | $ | 0.01 | $ | 0.02 | $ | 0.04 | $ | 0.03 | ||||||||
| Diluted shares outstanding | 28,733 | 28,374 | 28,670 | 28,277 | ||||||||||||
| Adjusted CFFO and Adjusted CFFO per share | ||||||||||||||||
| Net loss | $ | 2,871 | $ | (5,759 | ) | $ | (8,334 | ) | $ | (20.225 | ) | |||||
| Non-cash charges, net | 9,466 | 16,134 | 42,861 | 48,867 | ||||||||||||
| Recurring capital expenditures | (1,109 | ) | (1,090 | ) | (3,291 | ) | (3,155 | ) | ||||||||
| Casualty losses | 306 | 167 | 827 | 582 | ||||||||||||
| Transaction and conversion costs | 543 | 858 | 2,007 | 2,098 | ||||||||||||
| Tax impact of 4 property sale | 1 | 292 | ||||||||||||||
| Tax impact of Spring Meadows Transaction | (106 | ) | (106 | ) | (318 | ) | (318 | ) | ||||||||
| Communities being repositioned/leased up, net of tax | (14 | ) | 246 | ) | 143 | 683 | ||||||||||
| Adjusted CFFO | $ | 11,958 | $ | 10,450 | $ | 34,187 | $ | 28,532 | ||||||||
| Adjusted CFFO per share | $ | 0.42 | $ | 0.37 | $ | 1.19 | $ | 1.01 |