Capital Senior Living Corporation Reports Fourth Quarter and Full Year 2008 Results.DALLAS -- 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, today announced operating results for the fourth quarter and full year 2008. Company highlights for the fourth quarter and 2008 fiscal year include: Financial Highlights - Fourth Quarter * Revenues were $48.0 million in the fourth quarter of 2008 compared to $48.2 million in the fourth quarter of 2007. * Adjusted EBITDAR Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring Costs - EBITDAR An indicator of a company's financial performance calculated as: = Revenue - Expenses (excluding tax, interest, depreciation, amortization, and restructuring costs) (income from operations plus depreciation and amortization and facility lease expense) was $13.7 million compared to $14.9 million in the prior year period. Adjusted EBITDAR in the fourth quarter of 2008 excludes unusual or non-operating items such as the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of preacquisition costs, property tax adjustments, separation pay, casualty losses and adjustments to deferred revenue as itemized on the last page of this release. Adjusted EBITDAR in the fourth quarter of 2007 excludes the write-off of preacquisition costs and property tax adjustments. * Adjusted EBITDAR margin was 28.5 percent compared to 30.9 percent in the fourth quarter of the prior year. * Net income reflected a loss of $0.2 million or $0.01 per share in the fourth quarter of 2008 compared to a profit of $1.3 million or $0.05 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share in the fourth quarter of 2007. * Adjusted net income was $0.8 million or $0.03 per diluted share, compared to adjusted net income of $1.8 million or $0.07 per diluted share in the fourth quarter of 2007. These comparisons exclude the adjustments to EBITDAR noted above along with excluding gains or losses on assets. These adjustments are listed on the last page of this release and reconciled to the most comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measure. * Adjusted cash earnings (adjusted net income plus depreciation and amortization) were $4.0 million or $0.15 per diluted share, versus $4.8 million or $0.18 per diluted share in the fourth quarter of 2007, with the adjustments noted above. Financial Highlights - Full Year * Revenues of $193.3 million increased $4.2 million or approximately 2.0 percent from the prior year. * Adjusted EBITDAR of $56.6 million increased 2.0 percent from the prior year. * Adjusted EBITDAR margin was 29.3 percent in both 2008 and 2007. * Net income was $3.7 million or $0.14 per diluted share compared to $4.4 million or $0.16 per diluted share in 2007. * Adjusted net income was $4.7 million or $0.18 per diluted share, versus adjusted net income of $5.2 million or $0.20 per diluted share in 2007. These comparisons exclude the adjustments noted above along with the write-off of deferred loan costs and non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. related to joint venture amortization in 2007. * Adjusted cash earnings were $17.1 million or $0.64 per diluted share, versus $16.5 million or $0.62 per diluted share in 2007, with the adjustments noted above. Operational Highlights - Fourth Quarter * Average physical occupancy rate Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) for the 57 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 was 88 percent. * Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: (before property taxes, insurance and management fees) were 48 percent in stabilized independent and assisted living as·sist·ed living 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. communities. * At communities under management, excluding the four communities undergoing conversions, same-store revenue increased 1.0 percent versus the fourth quarter of 2007 as a result of a 4.5 percent increase in average monthly rent. Same-store expenses, excluding the property tax adjustment and casualty losses, increased 1.1 percent and net income increased 0.9 percent from the comparable period of the prior year. "We made progress during the fourth quarter in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. ," said Lawrence 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. "Occupancy held relatively flat from the third quarter and average monthly rents increased 4.5 percent over the prior year and 1.4 percent sequentially from the third quarter. Our expense management and group purchasing limited growth in same-community expense, excluding adjustments, to 1.1 percent and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased sequentially from the third quarter. We are encouraged by the higher number of move-ins and deposits in the first two months of 2009 as compared to the same period in 2008. These results validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data our focus on providing seniors with quality housing and care at affordable rates, and delivering exceptional value in challenging economic times." OPERATING AND FINANCIAL RESULTS Fourth Quarter Results For the fourth quarter of 2008, the Company reported revenue of $48.0 million, compared to revenue of $48.2 million in the fourth quarter of 2007. The reduction is largely due to lower development fees in the fourth quarter of 2008 as the Company winds down its development pipeline. Resident and healthcare revenue increased from the fourth quarter of the prior year by approximately $0.5 million, or 1 percent. The number of consolidated communities increased from 49 in the fourth quarter of 2007 to 50 in the fourth quarter of 2008. Financial occupancy of the consolidated portfolio averaged 85.5 percent in the fourth quarter of 2008 with an average monthly rent of $2,506 per occupied unit. Excluding four communities with units being converted to higher levels of care, financial occupancy of the consolidated portfolio averaged 87.0 percent. Revenue under management was $55.7 million in the fourth quarter of 2008 compared to $55.9 million in the fourth quarter of 2007. Revenue under management includes revenue generated by the Company's consolidated communities, communities owned through joint ventures and communities owned by third parties that are managed by the Company. There were 64 communities under management in both periods. Operating expenses for the fourth quarter of 2008 increased by $0.8 million from the fourth quarter of 2007. As a percentage of resident and healthcare revenue, operating expenses were 63.5 percent in the fourth quarter of 2008 compared to 62.4 percent in the fourth quarter of 2007. Operating expenses for the quarter included approximately $0.4 million of casualty losses and real estate tax adjustments which applied to prior periods. Excluding these items, this quarter's operating margins would have been approximately equal to the fourth quarter of 2007. General and administrative expenses of $3.9 million were approximately $1.0 million higher than the fourth quarter of 2007. Approximately $0.6 million of the increase was the result of separation pay incurred as a result of discontinuing further development activities. An additional $0.2 million reflects the write-off of preacquisition costs for projects which are no longer being pursued. As a percentage of revenue under management, general and administrative expenses were 5.5 percent in the fourth quarter of 2008. Facility lease expenses were $6.3 million in the fourth quarter of 2008, approximately $0.2 million higher than the fourth quarter of 2007, reflecting 25 leased communities this quarter versus 24 last year, along with increases in contingent rent. The Company has reclassified the amortization of deferred gains on sale leaseback A transaction whereby land is sold and subsequently rented by the seller from the purchaser who is the new owner. transactions from gain on sale of assets to a reduction of facility lease expense to better conform with industry practice. Depreciation and amortization expense increased $0.3 million from the fourth quarter of the prior year, as a result of capital improvements and new information systems which became operational at the beginning of this year. Adjusted EBITDAR for the fourth quarter of 2008 was approximately $13.7 million, compared to $14.9 million in the fourth quarter of 2007. Adjusted EBITDAR margin was 28.5 percent for the period. Interest income was $0.1 million in the current quarter as the Company earned interest on cash balances and lease deposits. Interest expense was $3.0 million in the fourth quarter of 2008, compared to $3.1 million in the fourth quarter of 2007, reflecting lower debt outstanding due to principal amortization. The Company reported a pre-tax loss of approximately $0.4 million in the fourth quarter of 2008 compared to a pre-tax profit of approximately $2.6 million in the fourth quarter of 2007. Fourth quarter 2008 results include several infrequent in·fre·quent adj. 1. Not occurring regularly; occasional or rare: an infrequent guest. 2. non-operating items such as separation pay, casualty losses, write-off of preacquisition costs, property tax adjustments and other items identified on the last page of this release and reconciled to the most comparable GAAP measure. On an adjusted basis, the Company earned a pre-tax profit of $1.2 million in the fourth quarter of 2008 compared to a pre-tax profit of $3.0 million in the fourth quarter of 2007. Adjusted net income was $0.8 million or $0.03 per diluted share in the fourth quarter of 2008 versus adjusted net income of $1.8 million or $0.07 per diluted share in the fourth quarter of 2007. Adjusted cash earnings (adjusted net income plus depreciation and amortization) were $4.0 million or $0.15 per diluted share in the fourth quarter of 2008, versus $4.8 million or $0.18 per diluted share in the fourth quarter of 2007. Full Year Results For the 2008 fiscal year, the Company reported revenues of $193.3 million, compared to revenues of $189.1 million in the prior year, an increase of $4.2 million or approximately 2.0 percent. Reflecting the adjustments noted above, adjusted EBITDAR for 2008 was $56.6 million, an increase of $1.2 million or 2.0 percent from the $55.4 million reported in 2007. Adjusted net income was $4.7 million or $0.18 per diluted share and adjusted cash earnings were $17.1 million or $0.64 per diluted share. CAPITAL OVERVIEW AND FINANCING Capital expenditures in 2008 were approximately $8.1 million, including $4.6 million of 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. capital expenditures, $3.0 million of major projects or renovations and $0.5 million of information technology. The Company ended the year with approximately $25.9 million of cash and cash equivalents and approximately $185.8 million of mortgage debt at fixed interest rates averaging approximately 6.1 percent. With the exception of a $4.8 million mortgage maturing in September of 2009, the next closest maturity is July of 2015. In January of 2009, the Company announced that its Board of Directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: a stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program of up to $10 million of its common stock. Under the stock repurchase program, the Company is authorized to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. , from time to time, shares of its common stock in the open market and in privately negotiated transactions. The timing and extent to which the Company may repurchase its shares will depend upon market conditions and other corporate considerations. The Company anticipates that it will finance the repurchase program with available cash. Q408 CONFERENCE CALL INFORMATION The Company will host a conference call with senior management to discuss the Company's fourth quarter and full year 2008 results. The call will be held on Wednesday, March 11, 2009 at 11:00 a.m. Eastern Time. The call-in number is 913-312-0962, confirmation code 9944004. 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. To pre-check your system compatibility prior to our event go to this link: http://www.investorcalendar.com/aboutus/HelpDesk.asp For the convenience of the Company's shareholders and the public, the conference call will be recorded and available for replay starting March 11, 2009 at 2:00 p.m. Eastern Time, until March 18, 2009 at 8:00 p.m. Eastern Time. To access the conference call replay, call 719-457-0820, confirmation code 9944004. 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:
The Company currently operates 64 senior living communities in 23 states with an aggregate capacity of approximately 9,500 residents, including 38 senior living communities which the Company owns or in which the Company has an ownership interest, 25 leased communities and one community it manages for a third party. Resident capacities in the communities operated by the Company indicate that 69 percent of residents live independently, 24 percent of residents require assistance with activities of daily living and 7 percent of residents live in continuing care continuing care a professional convention that a veterinarian who is treating an animal is obliged to continue treating that case unless an arrangement is made with its custodian to transfer the care to another practitioner or to a specialist. retirement communities. 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 conditions generally, 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 , 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.
This release contains certain financial information not derived in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP), including adjusted EBITDAR, cash earnings, cash earnings 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. Reconciliation of this information to the most comparable GAAP measures is included as an attachment to this release. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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