Capital Senior Living Corporation Reports First Quarter 2001 Earnings.Business Editors DALLAS--(BUSINESS WIRE)--May 2, 2001 Capital Senior Living Corporation (NYSE NYSE See: New York Stock Exchange :CSU See DSU/CSU. 1. CSU - California State University. 2. CSU - Cleveland State University. 3. CSU - Channel Service Unit. ), one of the country's largest operators of senior living communities, announced today its operating results for the first quarter 2001. The results reflect the effects of previously announced strategic initiatives aimed at increasing ownership of assets and maximizing max·i·mize tr.v. max·i·mized, max·i·miz·ing, max·i·miz·es 1. To increase or make as great as possible: long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. shareholder value. "We are pleased to report that total revenues have increased over 44% versus the comparable quarter of the prior year," James A. Stroud This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , Chairman of the Company said. "Resident and healthcare revenues increased even more, with their 56% growth resulting from our increased ownership of senior living communities." OPERATING AND FINANCIAL RESULTS For the first quarter 2001, the Company had revenues of $18.0 million compared to revenues of $12.5 million for the same period in 2000. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the first quarter 2001 increased 25% to $6.7 million from $5.4 million for the prior year. The increases in revenues and EBITDA were offset by increases in interest expense, depreciation and amortization and start-up Start-up The earliest stage of a new business venture. costs associated with recently opened communities. Consequently, the Company had net income of $0.4 million, or $0.02 per share in the first quarter 2001, compared to net income of $1.5 million, or $0.07 per share for the same period in 2000. Cash earnings, defined as net income plus depreciation, were $2.2 million or $0.11 per share for the first quarter 2001, compared to cash earnings of $2.5 million, or $0.13 per share in the prior year period. As of March 31, 2001, the Company had $16.7 million in cash and cash equivalents, $19.2 million in working capital and $111.2 million in shareholder's equity. "Last year was a time of creating a foundation for future growth," Lawrence Lawrence. 1 City (1990 pop. 26,763), Marion co., central Ind., a residential suburb of Indianapolis, on the West Fork of the White River. It has light manufacturing. 2 City (1990 pop. 65,608), seat of Douglas co., NE Kans. A. Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. , the Company's Chief Executive Officer, said. "Along with completing a significant merger, the Company began operating sixteen new communities and one expansion in 2000, increasing capacity by 2100 residents. We currently have nineteen communities in lease-up plus an additional three Waterfords under construction, and have increased resident capacity by one-third in the last twelve months." 2001 OUTLOOK Looking ahead, the Company's growth for this year is expected to come from higher management services revenue from increased occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy levels in the recently opened communities and increases in resident and healthcare revenue at its owned communities. The Company anticipates quarterly increases in total revenues in the 1% to 3% range and full year earnings per share from operations to be in the range of eight to ten cents Ten Cents has several meanings:
HIGHLIGHTS FOR THE QUARTER Company highlights for first quarter 2001 include: -- Net income of $0.4 million and basic and diluted net income per share of $0.02; -- Cash earnings of $2.2 million, or $0.11 per share; -- Average occupancy rate on stabilized communities of 92 percent; -- Same community revenue increase of 2.7 percent; and -- Independent and assisted living community operating margins averaged 43 percent. 1Q01 CONFERENCE CALL INFORMATION Members of the Company's senior management team will discuss first quarter 2001 results via a telephone conference call on May 2, 2001 at 11 a.m. Eastern Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time. Conference call lines are limited. To reserve your space for the teleconference, please call 800/289-0579, confirmation code 551550. You will be given the actual dial-in number at that time. For the convenience of the Company's shareholders and the public, the conference call will be recorded and available for replay starting May 2 at 1:00 p.m., until May 9 at 7:00 p.m. To access the conference call replay, call 719/457-0820 (confirmation code 551550). The conference call will also be made available for playback Playback could mean:
ABOUT THE COMPANY 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 Continuum (pl. -tinua or -tinuums) can refer to:
n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. and home care services, to provide residents the opportunity to age in place. The Company currently owns and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. operates 51 communities in 21 states with a total capacity of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 8,400 residents. In the communities operated by the Company, 82 percent of residents live independently and 18 percent of residents require assistance with activities of daily living. The forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms, financing, licensing, business conditions, risks of downturns in economic condition generally, and satisfaction of closing conditions such as those pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to licensure licensure (lī´s  nsh . These and other risks are
detailed in the Company's reports filed with the Securities and
Exchange Commission.
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2001 2000
-------------- --------------
ASSETS (Unaudited) (Audited)
Current assets:
Cash and cash equivalents $ 16,725 $ 23,975
Accounts receivable, net 3,108 3,221
Accounts receivable from affiliates 4,005 3,764
Interest receivable 2,994 2,074
Federal and state income taxes receivable 3,718 3,728
Deferred taxes 1,208 1,208
Prepaid expenses and other 954 1,935
-------------- --------------
Total current assets 32,712 39,905
Property and equipment, net 204,002 204,764
Deferred taxes 8,771 8,872
Notes receivable 570 570
Notes receivable from affiliates 47,309 43,388
Investments in limited partnerships 6,247 6,526
Assets held for sale 6,920 6,920
Other assets 7,726 7,599
-------------- --------------
Total assets $ 314,257 $ 318,544
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,618 $ 3,907
Accrued expenses 3,275 3,194
Current portion of notes payable 6,547 4,770
Customer deposits 1,025 1,012
-------------- --------------
Total current liabilities 13,465 12,883
Deferred income from affiliates 2,161 2,241
Notes payable, net of current portion 173,222 176,507
Line of credit 7,553 7,553
Minority interest in consolidated
partnership 6,641 8,572
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.01 par value:
Authorized shares 15,000,000;
no shares issued or outstanding. -- --
Common stock, $.01 par value:
Authorized shares 65,000,000;
issued and outstanding
19,717,347 at March 31, 2001
and December 31, 2000 197 197
Additional paid-in capital 91,935 91,935
Retained earnings 19,083 18,656
-------------- --------------
Total shareholders' equity 111,215 110,788
-------------- --------------
Total liabilities and
shareholders' equity $ 314,257 $ 318,544
============== ==============
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except earnings per share)
Three Months Ended March 31,
--------------------------------
2001 2000
--------------- ---------------
(Unaudited) (Unaudited)
Revenues:
Resident and healthcare revenue $ 16,040 $ 10,267
Rental and lease income 1,031 993
Unaffiliated management services
revenue 504 726
Affiliated management services
revenue 387 120
Unaffiliated development fees 24 241
Affiliated development fees 57 163
--------------- ---------------
Total revenues 18,043 12,510
Expenses:
Operating expenses 9,304 6,234
General and administrative expenses 3,114 2,147
Depreciation and amortization 1,743 1,034
--------------- ---------------
Total expenses 14,161 9,415
--------------- ---------------
Income from operations 3,882 3,095
Other income (expense):
Interest income 1,541 1,378
Interest expense (4,249) (1,959)
Equity in losses of affiliates (253) --
Gain on sale of properties -- 303
--------------- ---------------
Income before income taxes and
minority interest in
consolidated partnership 921 2,817
Provision for income taxes (262) (890)
--------------- ---------------
Income before minority interest in
consolidated partnership 659 1,927
Minority interest in consolidated
partnership (232) (455)
--------------- ---------------
Net income $ 427 $ 1,472
=============== ===============
Net income per share:
Basic $ 0.02 $ 0.07
=============== ===============
Diluted $ 0.02 $ 0.07
=============== ===============
Weighted average shares
outstanding -- basic 19,717 19,717
=============== ===============
Weighted average shares
outstanding -- diluted 19,717 19,746
=============== ===============
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