Full Press Release Details
CAPITAL SENIOR LIVING CORPORATION
REPORTS THIRD QUARTER 2014 RESULTS
(BUSINESS WIRE) November 4, 2014 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 2014. Company highlights for the third quarter include:
Operating and Financial Summary (see Non-GAAP
Financial Measures below)
Our third quarter results reflect the
positive momentum that continues to build in all of our important metrics, with higher revenue growth and lower expense growth in the third quarter than in the first two quarters of this year and continued solid increases in occupancy, Adjusted
EBITDAR and Adjusted CFFO, said Lawrence A. Cohen, Chief Executive Officer of the Company. Our same-community average monthly rent increased by 60 basis points in the third quarter of 2014 as compared to the second quarter, building on
the 70 basis point sequential increase in average monthly rent from the first quarter to the second quarter of 2014. Our same store occupancy increased 40 basis points from the second quarter of 2014 to the third quarter of 2014, the fourth
consecutive quarter to show a sequential gain. We continue to be focused on reducing attrition and are making steady progress on our work to convert approximately 360 vacant independent living units to assisted living and memory care units, which we
expect to improve overall occupancy by approximately 300 basis points once they are stabilized.
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 closed on three such communities in the third quarter and continue to pursue additional opportunities.
We believe that we are well
positioned to make meaningful gains in shareholder value as a substantially all private-pay business in an industry that benefits from need-driven demand, limited new supply, and an improving economy and housing market.
Recent Investment Activity
Highlights of this transaction include:
The community was financed
with approximately $10.4 million of non-recourse 10-year mortgage debt at a fixed interest rate of 4.70%.
Financial Results - Third Quarter
For the third quarter of 2014, the Company reported revenue of $98.5 million, compared to revenue of $88.0 million in the third quarter of 2013. Resident and
healthcare revenue increased from the third quarter of the prior year by approximately $12.1 million, or 14.1%, mostly due to the acquisition of 15 communities during or after the third quarter of 2013. As expected, community reimbursement revenue
and affiliated management revenue decreased approximately $1.6 million in the third quarter of 2014 as compared to the third quarter of 2013. The acquisition of three Ohio communities in which the Company previously held a 10 percent interest as a
joint venture on June 30, 2014, resulted in the elimination of these two revenue items as well as community reimbursement expense.
Operating expenses for the third
quarter of 2014 were $60.0 million, an increase of $7.1 million from the third quarter of 2013, primarily due to the acquisition of 15 communities during or after the third quarter of 2013.
General and administrative expenses for the third quarter of 2014 were $5.5 million in the third quarter of 2014, which includes $0.7 million of transaction
and other one-time costs. Excluding transaction and other one-time costs from the third quarters of 2014 and 2013, general and administrative expenses increased $0.2 million in the third quarter of 2014 over the third quarter of 2013. General and
administrative expenses, excluding transaction and other one-time costs, were 4.9% as a percentage of revenues under management in the third quarter of 2014, as compared to 5.2% in the third quarter of 2013.
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. Three communities were excluded in the previous quarter. During the third quarter of 2014, the Company began a significant renovation project at a community to convert IL units to AL units, which required vacating 45
units; thus, the Company removed this community from its non-GAAP measures and certain supplemental information beginning in the third quarter of 2014.
Adjusted EBITDAR for the third quarter of 2014 was approximately $33.5 million, an increase of $4.2 million, or 14.4%, from the third quarter of 2013. This
does not include EBITDAR of $0.6 million related to four communities undergoing repositioning, lease-up or significant renovation and conversion. The Adjusted EBITDAR margin for the third quarter of 2014 was 35.6%, an increase of 40 basis points
from the third quarter of 2013.
The Company had $0.7 million, or $0.02 per share, of adjusted net income for the third quarter of 2014, excluding
non-recurring or non-economic items reconciled on the final page of this release. This compares to a net loss of $5.8 million before adjusting for these non-recurring or non-economic items. Adjusted CFFO was $11.1 million, or $0.39 per share, in the
third quarter of 2014, an increase of 24.0%, or $2.2 million and $0.07 per share, versus the third quarter of 2013.
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 of $0.2 million.
Same-community revenue in the third quarter of 2014 increased 1.3% versus the third
quarter of 2013. Same-community expenses increased 1.6% from the third
quarter of the prior year. Labor costs, including benefits, were up approximately 2.3%, food costs increased 1.8% and utilities were flat as compared to the third quarter of the prior year.
Advertising and promotion fees were $0.2 million higher due to initiatives aimed at increasing occupancy and revenue.
Same-community results continued to
show significant sequential improvement in the third quarter of 2014. Same-community revenues were up sequentially over the second quarter by 1.1% and were 1.8% higher than the first quarter. Same-community occupancies increased 40 basis points from
the second quarter to 87.4% and average rent increased $19, or 0.6%, to $3,159 per occupied unit from the second quarter to the third quarter. Same-community expenses were only $0.3 million higher than the second quarter of 2014, even with an
additional day of expense versus the second quarter and utilities costs that were $0.5 million higher, as expected, related to summer weather. Same-community net operating income was 1.5% higher than the second quarter of 2014.
Capital expenditures for the third quarter of 2014 were $5.5 million, representing approximately $4.3 million of investment spending and approximately $1.2
million of recurring capital expenditures. If annualized, spending for recurring capital expenditures was approximately $410 per unit.
The Company ended the quarter with $39.3 million of cash and cash equivalents, including restricted cash. During the quarter, the Company
invested $10.8 million of cash as equity to complete the acquisitions of three communities and spent $5.5 million on capital improvements.
September 30, 2014, the Company financed its 66 owned communities with mortgages totaling $623.9 million at interest rates averaging 4.7%. All of the Company s debt is at fixed interest rates, except for six bridge loans totaling
approximately $65.2 million at variable rates averaging 3.9%. The Company has no mortgage maturities before the third quarter of 2015.
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 2014 Conference Call Information
will host a conference call with senior management to discuss the Company s third quarter financial results. The call will be held on Tuesday, November 4, 2014, at 5:00 p.m. Eastern Time. The call-in number is 913-312-0419, confirmation
code 7261660. 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 Tuesday, November 4, 2014 at 8:00 p.m. Eastern Time, until Thursday, November 13, 2014 at 8:00 p.m. Eastern Time. To access
the conference call replay, call 719-457-0820, confirmation code 7261660. The conference call will also be made available for playback via the Company s corporate website, www.capitalsenior.com, beginning November 5, 2014.
Non-GAAP Financial Measures
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 flows.
Capital Senior 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 116 senior living communities in geographically concentrated regions with an aggregate capacity of approximately 15,000 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,
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
Contact Carey P. Hendrickson, Chief Financial Officer, at 972-770-5600 for more information.
CONSOLIDATED BALANCE SHEETS
| September 30, 2014 | December 31, 2013 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 27,816 | $ | 13,611 | ||||
| Restricted cash | 11,468 | 11,425 | ||||||
| Accounts receivable, net | 5,716 | 3,752 | ||||||
| Accounts receivable from affiliates | 6 | 416 | ||||||
| Federal and state income taxes receivable | 5,214 | 5,123 | ||||||
| Deferred taxes | 441 | 845 | ||||||
| Property tax and insurance deposits | 10,660 | 11,036 | ||||||
| Prepaid expenses and other | 3,525 | 6,605 | ||||||
| Total current assets | 64,846 | 52,813 | ||||||
| Property and equipment, net | 774,211 | 649,967 | ||||||
| Investments in unconsolidated joint ventures | 1,010 | |||||||
| Other assets, net | 40,696 | 41,759 | ||||||
| Total assets | $ | 879,753 | $ | 745,549 | ||||
| LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,052 | $ | 3,813 | ||||
| Accounts payable to affiliates | 11 | 1 | ||||||
| Accrued expenses | 32,524 | 29,321 | ||||||
| Current portion of notes payable | 37,636 | 11,918 | ||||||
| Current portion of deferred income | 13,376 | 11,215 | ||||||
| Current portion of capital lease and financing obligations | 981 | 948 | ||||||
| Customer deposits | 1,606 | 1,489 | ||||||
| Total current liabilities | 90,186 | 58,705 | ||||||
| Deferred income | 16,464 | 18,021 | ||||||
| Capital lease and financing obligations, net of current portion | 40,430 | 41,093 | ||||||
| Deferred taxes | 441 | 845 | ||||||
| Other long-term liabilities | 1,459 | 1,559 | ||||||
| Notes payable, net of current portion | 587,285 | 467,376 | ||||||
| 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 29,095 and 28,845 in 2014 and 2013, respectively | 294 | 292 | ||||||
| Additional paid-in capital | 149,482 | 143,721 | ||||||
| Retained (deficit) earnings | (5,354 | ) | 14,871 | |||||
| Treasury stock, at cost 350 shares | (934 | ) | (934 | ) | ||||
| Total shareholders equity | 143,488 | 157,950 | ||||||
| Total liabilities and shareholders equity | $ | 879,753 | $ | 745,549 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited, in thousands, except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Revenues: | ||||||||||||||||
| Resident and health care revenue | $ | 98,466 | $ | 86,333 | $ | 280,240 | $ | 256,409 | ||||||||
| Affiliated management services revenue | 205 | 415 | 586 | |||||||||||||
| Community reimbursement revenue | 17 | 1,445 | 3,110 | 4,432 | ||||||||||||
| Total revenues | 98,483 | 87,983 | 283,765 | 261,427 | ||||||||||||
| Expenses: | ||||||||||||||||
| Operating expenses (exclusive of facility lease expense and depreciation and amortization expense shown below) | 59,992 | 52,936 | 171,268 | 154,186 | ||||||||||||
| General and administrative expenses | 5,515 | 5,026 | 15,137 | 15,029 | ||||||||||||
| Facility lease expense | 14,841 | 14,274 | 44,524 | 42,813 | ||||||||||||
| Stock-based compensation expense | 1,599 | 869 | 5,676 | 3,158 | ||||||||||||
| Depreciation and amortization | 13,840 | 10,533 | 35,607 | 33,183 | ||||||||||||
| Community reimbursement expense | 17 | 1,445 | 3,110 | 4,432 | ||||||||||||
| Total expenses | 95,804 | 85,083 | 275,322 | 252,801 | ||||||||||||
| Income from operations | 2,679 | 2,900 | 8,443 | 8,626 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 12 | 17 | 40 | 138 | ||||||||||||
| Interest expense | (8,255 | ) | (5,943 | ) | (22,785 | ) | (17,321 | ) | ||||||||
| Write-off of deferred loan costs and prepayment premiums | (6,979 | ) | ||||||||||||||
| Joint venture equity investment valuation gain | 1,519 | |||||||||||||||
| Loss on disposition of assets, net | (1 | ) | 13 | (11 | ) | 12 | ||||||||||
| Equity in earnings of unconsolidated joint ventures, net | 43 | 105 | 76 | |||||||||||||
| Other income | 5 | 10 | 22 | 28 | ||||||||||||
| Loss before provision for income taxes | (5,560 | ) | (2,960 | ) | (19,646 | ) | (8,441 | ) | ||||||||
| Provision for income taxes | (199 | ) | (7,003 | ) | (579 | ) | (5,668 | ) | ||||||||
| Net loss | $ | (5,759 | ) | $ | (9,963 | ) | $ | (20,225 | ) | $ | (14,109 | ) | ||||
| Per share data: | ||||||||||||||||
| Basic net loss per share | $ | (0.20 | ) | $ | (0.35 | ) | $ | (0.70 | ) | $ | (0.49 | ) | ||||
| Diluted net loss per share | $ | (0.20 | ) | $ | (0.35 | ) | $ | (0.70 | ) | $ | (0.49 | ) | ||||
| Weighted average shares outstanding basic | 28,371 | 27,911 | 28,273 | 27,769 | ||||||||||||
| Weighted average shares outstanding diluted | 28,371 | 27,911 | 28,273 | 27,769 | ||||||||||||
| Comprehensive loss | $ | (5,759 | ) | $ | (9,963 | ) | $ | (20,225 | ) | $ | (14,109 | ) |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
| Nine Months Ended September 30, | ||||||||
| 2014 | 2013 | |||||||
| Operating Activities | ||||||||
| Net loss | $ | (20,225 | ) | $ | (14,109 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 35,607 | 33,183 | ||||||
| Amortization of deferred financing charges | 999 | 822 | ||||||
| Amortization of deferred lease costs and lease intangibles | 922 | 978 | ||||||
| Deferred income | 604 | (344 | ) | |||||
| Deferred income taxes | 5,505 | |||||||
| Write-off of deferred loan costs and prepayment premiums | 6,979 | |||||||
| Joint venture equity investment valuation gain | (1,519 | ) | ||||||
| Loss (Gain) on disposition of assets, net | 11 | (12 | ) | |||||
| Equity in earnings of unconsolidated joint ventures | (105 | ) | (76 | ) | ||||
| Provision for bad debts | 517 | 330 | ||||||
| Stock-based compensation expense | 5,676 | 3,158 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (2,481 | ) | 241 | |||||
| Accounts receivable from affiliates | 410 | 433 | ||||||
| Property tax and insurance deposits | 376 | (1,058 | ) | |||||
| Prepaid expenses and other | 3,080 | (867 | ) | |||||
| Other assets | 756 | (3,101 | ) | |||||
| Accounts payable | 249 | (4,424 | ) | |||||
| Accrued expenses | 3,203 | 4,142 | ||||||
| Federal and state income taxes receivable/payable | (91 | ) | 3,523 | |||||
| Customer deposits | 117 | (22 | ) | |||||
| Net cash provided by operating activities | 35,085 | 28,302 | ||||||
| Investing Activities | ||||||||
| Capital expenditures | (13,394 | ) | (9,888 | ) | ||||
| Cash paid for acquisitions | (145,555 | ) | (53,741 | ) | ||||
| Proceeds from disposition of assets | 4 | 18 | ||||||
| Proceeds from SHPIII/CSL Transaction | 2,532 | |||||||
| Distributions from unconsolidated joint ventures | 102 | 97 | ||||||
| Net cash used in investing activities | (156,311 | ) | (63,514 | ) | ||||
| Financing Activities | ||||||||
| Proceeds from notes payable | 267,685 | 56,939 | ||||||
| Repayments of notes payable | (128,553 | ) | (20,534 | ) | ||||
| Increase in restricted cash | (43 | ) | (1,239 | ) | ||||
| Cash payments for capital lease and financing obligations | (630 | ) | (558 | ) | ||||
| Cash proceeds from the issuance of common stock | 169 | 2,761 | ||||||
| Excess tax benefits on stock option exercised | (82 | ) | (1,445 | ) | ||||
| Deferred financing charges paid | (3,115 | ) | (684 | ) | ||||
| Net cash provided by financing activities | 135,431 | 35,240 | ||||||
| Increase in cash and cash equivalents | 14,205 | 28 | ||||||
| Cash and cash equivalents at beginning of period | 13,611 | 18,737 | ||||||
| Cash and cash equivalents at end of period | $ | 27,816 | $ | 18,765 | ||||
| Supplemental Disclosures | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 20,873 | $ | 16,058 | ||||
| Income taxes | $ | 714 | $ | 677 |
Capital Senior Living Corporation
Supplemental Information
| Average | ||||||||||||||||||||||||
| Communities | Resident Capacity | Average Units | ||||||||||||||||||||||
| Q3 14 | Q3 13 | Q3 14 | Q3 13 | Q3 14 | Q3 13 | |||||||||||||||||||
| Portfolio Data | ||||||||||||||||||||||||
| I. Community Ownership / Management | ||||||||||||||||||||||||
| Consolidated communities | ||||||||||||||||||||||||
| Owned | 66 | 53 | 8,718 | 7,089 | 6,772 | 5,599 | ||||||||||||||||||
| Leased | 50 | 50 | 6,333 | 6,298 | 4,989 | 5,026 | ||||||||||||||||||
| Joint Venture communities (equity method) | 3 | 674 | 435 | |||||||||||||||||||||
| Total | 116 | 106 | 15,051 | 14,061 | 11,761 | 11,060 | ||||||||||||||||||
| Independent living | 7,597 | 7,554 | 6,171 | 6,183 | ||||||||||||||||||||
| Assisted living | 7,454 | 6,337 | 5,590 | 4,743 | ||||||||||||||||||||
| Skilled nursing | 170 | 134 | ||||||||||||||||||||||
| Total | 15,051 | 14,061 | 11,761 | 11,060 | ||||||||||||||||||||
| II. Percentage of Operating Portfolio | ||||||||||||||||||||||||
| Consolidated communities | ||||||||||||||||||||||||
| Owned | 56.9 | % | 50.0 | % | 57.9 | % | 50.4 | % | 57.6 | % | 50.6 | % | ||||||||||||
| Leased | 43.1 | % | 47.2 | % | 42.1 | % | 44.8 | % | 42.4 | % | 45.4 | % | ||||||||||||
| Joint Venture communities (equity method) | 2.8 | % | 4.8 | % | 4.0 | % | ||||||||||||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
| Independent living | 50.5 | % | 53.7 | % | 52.5 | % | 55.9 | % | ||||||||||||||||
| Assisted living | 49.5 | % | 45.1 | % | 47.5 | % | 42.9 | % | ||||||||||||||||
| Skilled nursing | 1.2 | % | 1.2 | % | ||||||||||||||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Capital Senior Living Corporation
Supplemental Information
| Selected Operating Results | Q3 14 | Q3 13 | ||||||
| I. Owned communities (excludes 3 communities being repositioned/leased up) | ||||||||
| Number of communities | 63 | 50 | ||||||
| Resident capacity | 8,109 | 6,310 | ||||||
| Unit capacity | 6,275 | 4,969 | ||||||
| Financial occupancy (1) | 89.0 | % | 86.9 | % | ||||
| Revenue (in millions) | 50.1 | 36.2 | ||||||
| Operating expenses (in millions) (2) | 28.3 | 20.4 | ||||||
| Operating margin | 44 | % | 44 | % | ||||
| Average monthly rent | 2,993 | 2,795 | ||||||
| II. Leased communities (excludes 1 community being repositioned/leased up) | ||||||||
| Number of communities | 49 | 49 | ||||||
| Resident capacity | 6,107 | 6,072 | ||||||
| Unit capacity | 4,841 | 4,839 | ||||||
| Financial occupancy (1) | 86.2 | % | 86.5 | % | ||||
| Revenue (in millions) | 43.9 | 43.4 | ||||||
| Operating expenses (in millions) (2) | 21.8 | 21.4 | ||||||
| Operating margin | 50 | % | 51 | % | ||||
| Average monthly rent | 3,503 | 3,457 | ||||||
| III. Consolidated communities (excludes 4 communities being repositioned/leased up) | ||||||||
| Number of communities | 112 | 99 | ||||||
| Resident capacity | 14,216 | 12,382 | ||||||
| Unit capacity | 11,116 | 9,808 | ||||||
| Financial occupancy (1) | 87.8 | % | 86.7 | % | ||||
| Revenue (in millions) | 94.0 | 79.6 | ||||||
| Operating expenses (in millions) (2) | 50.1 | 41.8 | ||||||
| Operating margin | 47 | % | 47 | % | ||||
| Average monthly rent | 3,211 | 3,121 | ||||||
| IV. Communities under management (excludes 4 communities being repositioned/leased up) | ||||||||
| Number of communities | 112 | 102 | ||||||
| Resident capacity | 14,216 | 13,056 | ||||||
| Unit capacity | 11,116 | 10,244 | ||||||
| Financial occupancy (1) | 87.8 | % | 86.8 | % | ||||
| Revenue (in millions) | 94.0 | 83.7 | ||||||
| Operating expenses (in millions) (2) | 50.2 | 44.0 | ||||||
| Operating margin | 47 | % | 47 | % | ||||
| Average monthly rent | 3,211 | 3,140 | ||||||
| V. Same communities under management (excludes 4 communities being repositioned/leased up) | ||||||||
| Number of communities | 100 | 100 | ||||||
| Resident capacity | 12,941 | 12,911 | ||||||
| Unit capacity | 10,223 | 10,225 | ||||||
| Financial occupancy (1) | 87.4 | % | 86.7 | % | ||||
| Revenue (in millions) | 84.6 | 83.5 | ||||||
| Operating expenses (in millions) (2) | 44.7 | 43.9 | ||||||
| Operating margin | 47 | % | 47 | % | ||||
| Average monthly rent | 3,159 | 3,139 | ||||||
| VI. General and Administrative expenses as a percent of Total Revenues under Management | ||||||||
| Third Quarter (3) | 4.9 | % | 5.2 | % | ||||
| First nine months (3) | 4.7 | % | 5.2 | % | ||||
| VII. Consolidated Mortgage Debt Information (in thousands, except interest rates) | ||||||||
| (excludes insurance premium and auto financing) | ||||||||
| Total fixed rate mortgage debt | 558,726 | 382,531 | ||||||
| Total variable rate mortgage debt | 65,222 | 13,022 | ||||||
| Weighted average interest rate | 4.7 | % | 5.2 | % |
NON-GAAP RECONCILIATIONS
(In thousands, except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Adjusted EBITDAR | ||||||||||||||||
| Net income from operations | $ | 2,679 | $ | 2,900 | $ | 8,443 | $ | 8,626 | ||||||||
| Depreciation and amortization expense | 13,840 | 10,533 | 35,607 | 33,183 | ||||||||||||
| Stock-based compensation expense | 1,599 | 869 | 5,676 | 3,158 | ||||||||||||
| Facility lease expense | 14,841 | 14,274 | 44,524 | 42,813 | ||||||||||||
| Provision for bad debts | 145 | 89 | 517 | 330 | ||||||||||||
| Casualty losses | 167 | 142 | 582 | 382 | ||||||||||||
| Transaction and conversion costs | 858 | 360 | 2,098 | 1,205 | ||||||||||||
| Communities being repositioned/leased up | (618 | ) | 120 | (971 | ) | 120 | ||||||||||
| Adjusted EBITDAR | $ | 33,511 | $ | 29,287 | $ | 96,476 | $ | 89,817 | ||||||||
| Adjusted EBITDAR Margin | ||||||||||||||||
| Adjusted EBITDAR | $ | 33,511 | $ | 29,287 | $ | 96,476 | $ | 89,817 | ||||||||
| Total revenues | $ | 98,483 | $ | 87,983 | $ | 283,765 | $ | 261,427 | ||||||||
| Communities being repositioned/leased up | (4,370 | ) | (4,860 | ) | (10,073 | ) | (4,860 | ) | ||||||||
| Adjusted revenues | $ | 94,113 | $ | 83,123 | $ | 273,692 | $ | 256,567 | ||||||||
| Adjusted EBITDAR margin | 35.6 | % | 35.2 | % | 35.2 | % | 35.0 | % | ||||||||
| Adjusted net income and net income per share | ||||||||||||||||
| Net loss | $ | (5,759 | ) | $ | (9,963 | ) | $ | (20,225 | ) | $ | (14,109 | ) | ||||
| Casualty losses, net of tax | 105 | 89 | 367 | 241 | ||||||||||||
| Transaction and conversion costs, net of tax | 541 | 227 | 1,322 | 759 | ||||||||||||
| Resident lease amortization, net of tax | 3,250 | 2,471 | 7,447 | 8,837 | ||||||||||||
| Write-off of deferred loan costs and prepayment premium, net of tax | 4,397 | |||||||||||||||
| Joint venture equity investment valuation gain, net of tax | (957 | ) | ||||||||||||||
| (Gain)Loss on disposition of assets, net of tax | 1 | (8 | ) | 7 | (8 | ) | ||||||||||
| Deferred tax asset valuation allowance | 2,068 | 7,513 | 7,463 | 7,513 | ||||||||||||
| Communities being repositioned/leased up, net of tax | 485 | 414 | 1,049 | 414 | ||||||||||||
| Adjusted net income | $ | 691 | $ | 743 | $ | 870 | $ | 3,647 | ||||||||
| Adjusted net income per share | $ | 0.02 | $ | 0.03 | $ | 0.03 | $ | 0.13 | ||||||||
| Diluted shares outstanding | 28,374 | 27,937 | 28,228 | 27,839 | ||||||||||||
| Adjusted CFFO and Adjusted CFFO per share | ||||||||||||||||
| Net loss | $ | (5,759 | ) | $ | (9,963 | ) | $ | (20,225 | ) | $ | (14,109 | ) | ||||
| Non-cash charges, net | 16,805 | 19,093 | 49,691 | 43,544 | ||||||||||||
| Recurring capital expenditures | (1,090 | ) | (970 | ) | (3,155 | ) | (2,875 | ) | ||||||||
| Casualty losses | 167 | 142 | 582 | 382 | ||||||||||||
| Transaction and conversion costs | 858 | 360 | 2,098 | 1,205 | ||||||||||||
| Tax impact of Spring Meadows Transaction | (106 | ) | (106 | ) | (318 | ) | (318 | ) | ||||||||
| Communities being repositioned/leased up, net of tax | 225 | 394 | 447 | 394 | ||||||||||||
| Adjusted CFFO | $ | 11,100 | $ | 8,950 | $ | 29,120 | $ | 28,223 | ||||||||
| Adjusted CFFO per share | $ | 0.39 | $ | 0.32 | $ | 1.03 | $ | 1.01 |