Capital Senior Living Corporation Reports Fourth Quarter 2001 Earnings of Four Cents Per Share and Fiscal 2001 Earnings of 14 Cents Per Share.Business Editors DALLAS--(BUSINESS WIRE)--February 27, 2002 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 fourth quarter and fiscal year 2001. The Company reported fourth quarter earnings of $0.7 million or four cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. and full year earnings of $2.8 million, or 14 cents per share, consisting of 11 cents per share from operations and 3 cents per share from the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of non-core assets. Earnings for the fourth quarter of 2001 exceeded the fourth quarter of the prior year by 17 cents per share, due to the Company recording an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge of $3.4 million in the fourth quarter of 2000. The charge in the prior year resulted from the Company's decision to curtail cur·tail tr.v. cur·tailed, cur·tail·ing, cur·tails To cut short or reduce. See Synonyms at shorten. [Middle English curtailen, to restrict development of two planned communities Noun 1. planned community - a residential district that is planned for a certain class of residents residential area, residential district, community - a district where people live; occupied primarily by private residences , mark down parcels of land held for sale and write off costs related to its terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: merger with ILM II Senior Living, Inc. On a full year basis, the Company earned 14 cents per share in fiscal 2001 compared to reported earnings of six cents per share in the prior year. "I am pleased to report that the Company has now recorded its tenth Tenth can mean: In mathematics:
adj. 1. Hesitant or wavering: a halting voice. 2. Imperfect; defective: halting verse. 3. Limping; lame. development, focusing on lease-up, emphasizing earnings from recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. operations and increasing liquidity, are reflected in the fourth quarter and 2001 financial results. Current trends indicate that recurring earnings from operations will increase by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 30% in 2002." Operating and Financial Results For the fourth quarter of 2001, the Company had revenues of $17.1 million compared to revenues of $18.8 million for the same period in 2000. The lower revenues in the fourth quarter of 2001 were primarily due to the sale of the Cambridge Cambridge, city, Canada Cambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. Nursing Home in the third quarter of this year and lower development fees as the Company opened ten properties in the fourth quarter of last year. 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 fourth quarter of 2001 was $5.0 million compared to $0.7 million for the comparable period of the prior year. The Company earned net income of $0.7 million or four cents per share in the fourth quarter of 2001, compared to a net loss of $2.6 million or 13 cents per share in the fourth quarter of 2000. Earnings in the current quarter included gains on the sale of two parcels of land which contributed less than half a cent per share. Cash earnings, defined as net income plus depreciation, were $2.5 million or $0.13 per share for the fourth quarter of 2001, an increase of $3.4 million or $0.17 per share versus the fourth quarter of 2000. For the year ended December December: see month. 31, 2001, the Company had revenues of $70.5 million compared to $59.7 million the prior year, an increase of over 18%. EBITDA for 2001 was $20.4 million compared to EBITDA of $14.7 million in 2000. Net income for the current year was $2.8 million, or fourteen cents per share, compared to net income of $1.2 million or six cents per share in 2000. The current year's earnings include approximately $600,000 or three cents per share in gains from the disposition of non-core assets. Cash earnings for the year were $9.8 million or $0.50 per share, compared to cash earnings of $6.4 million or $0.33 per share in the prior year. As of December 31, 2001, the Company had $12.1 million in cash and cash equivalents, including $2.1 million in cash pledged pledge n. 1. A solemn binding promise to do, give, or refrain from doing something: signed a pledge never to reveal the secret; a pledge of money to a charity. 2. a. as additional collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although on certain loans. Cash balances will benefit in the first quarter of 2002 from the receipt of proceeds from the sale in December 2001 of the Amberleigh Retirement Community, which is expected to generate approximately $7.0 million of proceeds. "I am very pleased with the progress we made in 2001 towards the operating and financial goals we set forth for the year," stated 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. , Chief Executive Officer of the Company. "Leasing on our recently opened communities improved to 60 percent, and we increased our liquidity by successfully selling non-core assets. We are well positioned to continue our growth through the continued absorption absorption [Lat.,=sucking from], taking of molecules of one substance directly into another substance. It is contrasted with adsorption, in which the molecules adhere only to the surface of the second substance. of our communities in lease-up, improving the occupancies of our stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. communities, acquiring additional senior living communities in our recently formed venture with Blackstone Blackstone, river, c.50 mi (80 km) long, rising near Worcester, Mass., and flowing SE to Narragansett Bay at Providence, R.I. The river's clean water was a major factor in the early development of the area's textile industry. Real Estate Advisors and securing new management contracts." Lease-up of Communities The Company presently has in lease-up 20 senior living communities, including 16 in which it holds an ownership interest, with a capacity for nearly 3,000 residents, 90% of whom are independent. These 20 communities, 14 of which have opened since the fourth quarter of 2000, are leased to 60% as of December 31, 2001. In addition, the Company has its last planned development under construction, and it is expected to be completed by the end of the first quarter of 2002. The portfolio of stabilized communities is also performing as planned with an average 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 of 92% as of December 31, 2001. Fiscal 2001 Highlights Company highlights for fiscal 2001 include: -- Tenth consecutive year of profitability; -- Annual net income of $2.8 million and earnings per share of 14 cents; -- Annual cash earnings of $9.8 million and cash earnings per share of 50 cents; -- Average occupancy rate on stabilized communities of 92 percent; -- Same community revenue increase of 6.1 percent; -- Independent and assisted living community operating margins averaged 42 percent. Fiscal 2002 Outlook Looking ahead, the Company anticipates favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. comparisons in operating performance for each quarter of 2002 versus 2001. The Company produced net income from operations of 11 cents per share and gains from asset dispositions of 3 cents per share in 2001. If present operating trends continue and interest rates remain near current levels, net income from operations in 2002 would be expected to fall in a range of 14 to 16 cents per share, an increase of approximately 30% from 2001. This guidance does not include any potential contribution from acquisitions or additional management contracts. 4Q01 Conference Call Information Members of the Company's senior management team will discuss fourth quarter 2001 results via a telephone conference call on February February: see month. 27, 2002 at 11 a.m. Eastern Time. Conference call lines are limited. To reserve your space for the teleconference, please call 800/289-0579, confirmation code 478611. You will be given the actual dial-in number at that time. A link to a simultaneous webcast of the teleconference will be available at www.capitalsenior.com through Windows Media Player Digital jukebox software for Windows from Microsoft that plays a variety of audio, video and streaming formats including MP3, WMA, CD audio and MIDI. Starting with Version 6.2 in 1999, the Windows Media Rights Manager was added for securing copyrighted content. or RealPlayer A multimedia player from RealNetworks that plays RealAudio and RealVideo transmissions. Included is the technology (see RealJukebox) for organizing music files and creating MP3 files from audio CDs. , confirmation code 478611. For the convenience of the Company's shareholders and the public, the conference call will be recorded and available for replay starting February 27 at 1:00 p.m., until March 6 at 7:00 p.m. Central Time. To access the conference call replay, call 719/457-0820 (confirmation code 478611). 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 48 communities in 20 states with a total capacity of approximately 8,000 residents. In the communities operated by the Company, 85 percent of residents live independently and 15 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 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.
Contact Ralph A. Beattie Beattie is a surname, and may refer to:
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2001 2000
----------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 9,975 $ 22,875
Restricted cash 2,100 1,100
Accounts receivable, net 1,438 3,221
Accounts receivable from affiliates 366 3,764
Interest receivable from affiliates 6,072 2,074
Investment in limited partnership 5,774 --
Federal and state income taxes receivable 1,145 3,728
Deferred taxes 2,770 1,208
Prepaid expenses and other 1,218 1,935
----------- -----------
Total current assets 30,858 39,905
Property and equipment, net 196,821 204,764
Deferred taxes 7,540 8,872
Notes receivable -- 570
Notes receivable from affiliates 59,020 43,388
Investments in limited partnerships 1,827 6,526
Assets held for sale 4,924 6,920
Other assets, net 7,092 7,599
----------- -----------
Total assets $ 308,082 $ 318,544
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,040 $ 3,907
Accrued expenses 3,363 3,194
Current portion of notes payable 25,594 4,770
Customer deposits 1,144 1,012
----------- -----------
Total current liabilities 33,141 12,883
Deferred income 507 --
Deferred income from affiliates 1,750 2,241
Notes payable, net of current portion 149,202 176,507
Line of credit 7,553 7,553
Minority interest in consolidated
partnership 2,385 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 shares --
19,717,347 in 2001 and 2000 197 197
Additional paid-in capital 91,935 91,935
Retained earnings 21,412 18,656
----------- -----------
Total shareholders' equity 113,544 110,788
----------- -----------
Total liabilities and shareholders'
equity $ 308,082 $ 318,544
=========== ===========
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
------- ------- ------- -------
Revenues:
Resident and healthcare revenue $15,545 $15,965 $62,807 $49,185
Rental and lease income 566 1,549 3,619 4,603
Unaffiliated management services
revenue 493 488 1,971 2,271
Affiliated management services
revenue 474 350 1,743 1,040
Unaffiliated development fees (40) 87 -- 563
Affiliated development fees 62 334 403 1,992
------- ------- ------- -------
Total revenues 17,100 18,773 70,543 59,654
Expenses:
Operating expenses 8,828 9,514 37,214 29,530
General and administrative
expenses 3,022 4,094 12,002 11,116
Provision for bad debts 242 4,417 967 4,318
Depreciation and amortization 1,854 1,724 7,088 5,186
------- ------- ------- -------
Total expenses 13,946 19,749 57,271 50,150
------- ------- ------- -------
Income (loss) from operations 3,154 (976) 13,272 9,504
Other income (expense):
Interest income 1,165 1,659 5,914 5,981
Interest expense (3,053) (4,688) (14,888) (11,980)
Equity in the losses of
affiliates (53) -- (451) --
Gain (loss) on sale of assets 125 -- 2,550 (350)
------- ------- ------- -------
Income (loss) before income taxes,
minority interest in consolidated
partnership and extraordinary
charge 1,338 (4,005) 6,397 3,155
(Provision) benefit for income
taxes (517) 1,597 (1,871) (763)
------- ------- ------- -------
Income (loss) before minority
interest in consolidated
partnership and extraordinary
charge 821 (2,408) 4,526 2,392
Minority interest in consolidated
partnership (124) (210) (1,617) (1,153)
------- ------- ------- -------
Income (loss) before extraordinary
charge 697 (2,618) 2,909 1,239
Extraordinary charge, net of
minority interest and income tax
benefit of $187 and $94,
respectively -- -- (153) --
------- ------- ------- -------
Net income (loss) $697 $(2,618) $2,756 $1,239
======= ======= ======= =======
Per share data:
Basic earnings per share:
Income (loss) before
extraordinary charge $0.04 $(0.13) $0.15 $0.06
======= ======= ======= =======
Extraordinary charge $ -- $ -- $(0.01) $ --
======= ======= ======= =======
Net income (loss) $0.04 $(0.13) $0.14 $0.06
======= ======= ======= =======
Diluted earnings per share:
Income (loss) before
extraordinary charge $0.04 $(0.13) $0.15 $0.06
======= ======= ======= =======
Extraordinary charge $ -- $ -- $(0.01) $ --
======= ======= ======= =======
Net income (loss) $0.04 $(0.13) $0.14 $0.06
======= ======= ======= =======
Weighted average shares
outstanding - basic 19,717 19,717 19,717 19,717
======= ======= ======= =======
Weighted average shares
outstanding - diluted 19,773 19,717 19,734 19,724
======= ======= ======= =======
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