Capital Senior Living Corporation Reports Second Quarter 2005 Earnings.DALLAS Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. -- 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 second quarter of fiscal 2005. Company highlights for the second quarter include: --Revenues of $24.4 million versus $23.0 million for the second quarter of last year, an increase of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. six percent. --Net loss (excluding treasury rate lock agreements) of $1.1 million, or a $0.04 loss per share, versus a loss of $1.6 million, or a $0.06 loss per share, in the second quarter of 2004. Net loss of $1.1 million, or a $0.04 loss per share, on non-cash mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. adjustments on treasury rate lock agreements. --Excluding the effect of the treasury rate lock agreements, cash earnings (net income plus depreciation and amortization) in the second quarter of 2005 were $2.0 million, or $0.08 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, versus $1.4 million, or $0.05 per diluted share, for the second quarter or 2004, an increase of 49 percent. --Adjusted 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 (income from operations plus depreciation and amortization) of $5.8 million, versus $4.5 million in the prior year period, an increase of over 27 percent. --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) on 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 of 90 percent. --Operating margins (before property taxes, insurance and management fees) of 47 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. --All community revenue increase of 6 percent versus the second quarter of the prior year. The Company reported a second quarter 2005 net loss of $2.2 million, or a loss of $0.08 per share, compared to a net loss of $1.6 million, or a loss of $0.06 per share, in the second quarter of 2004. Excluding the effect of the treasury rate lock agreements, the Company's loss improved from $0.06 per share in the second quarter of last year to $0.04 per share in the current quarter. "We are pleased to report continued growth in revenues and cash earnings," commented 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. "Occupancies and operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: both improved significantly from the second quarter of the prior year, enabling the Company to increase income from operations by over one million dollars." Operating and Financial Results For the second quarter of 2005, the Company reported revenues of $24.4 million, compared to revenues of $23.0 million in the second quarter of 2004, an increase of $1.4 million or approximately 6 percent. Resident and healthcare revenue increased from the second quarter of the prior year by approximately $1.0 million, or 4.4 percent, as a result of a 2.3 percent increase in the average monthly rent and a 1.3 percent increase in 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 in the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: properties. Management services revenue increased by approximately $0.4 million from the second quarter of the prior year, primarily due to the acquisition of CGI CGI in full Common Gateway Interface. Specification by which a Web server passes data between itself and an application program. Typically, a Web user will make a request of the Web server, which in turn passes the request to a CGI application program. Management in the third quarter of 2004, which resulted in the addition of 14 communities under management. Revenues under management increased approximately 27 percent to $41.1 million in the second quarter of 2005 from $32.3 million in the second quarter of 2004. Revenues under management include revenues generated by the company's consolidated communities, communities owned in joint ventures and communities owned by third parties that are managed by the Company. Even with the increase in revenues, 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. were equal to the comparable quarter of the prior year, reflecting over three percentage points of margin improvement. These improved operating margins, along with a combined increase of $0.4 million in general and administrative expenses and depreciation and amortization, resulted in income from operations of $2.6 million, compared to $1.6 million in the second quarter of the prior year, an increase of approximately 66 percent. General and administrative expenses as a percentage of revenues under management decreased in the second quarter of 2005 to 6 percent compared to 7 percent in the second quarter of 2004, primarily due to the addition of 14 communities under management. Adjusted EBITDA (defined as income from operations plus depreciation and amortization) for the second quarter of 2005 was $5.8 million, compared to $4.5 million in the second quarter of 2004, an increase of $1.3 million or approximately 27 percent. Interest expense net of interest income was approximately $0.8 million higher in the second quarter of 2005 compared to the second quarter of 2004, primarily due to higher rates on the Company's variable rate debt. The Company's weighted average interest rate was 6.5% in the second quarter of 2005. For the first half of 2005, the Company produced revenues of $48.7 million, compared to revenues of $45.6 million in the first half of 2004, for an increase of $3.1 million or approximately 6.6 percent. The Company reported a net loss of $2.9 million, or $0.11 per share, in the first half of 2005 compared to a net loss of $3.6 million, or $0.15 per share, in the first half of the prior year. Excluding the effect of the treasury rate lock agreements, the Company's loss from operations improved from $0.15 per diluted share in the first half of 2004 to $0.08 per diluted share in the first half of 2005. Adjusted EBITDA for the first half of 2005 was $11.5 million, an increase of approximately $3.0 million or 34 percent from the prior year. Excluding the effect of the treasury rate lock agreements, the Company produced cash earnings of $4.2 million, or $0.16 per diluted share, in the first half of 2005 compared to cash earnings of $2.3 million, or $0.09 per diluted share, in the comparable prior year period. Capital Overview and Financing As part of the Company's strategy to convert variable rate debt to 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. fixed rates at attractive terms, the Company announced in July July: see month. that it has completed the refinancing Refinancing An extension and/or increase in amount of existing debt. of four communities known as the Independence Village properties with GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance Commercial Mortgage ("GMAC"). The new loans on the four properties total $39,150,000, equal to approximately 70% of their appraised value An appraised value (USA) or mortgage valuation (Australia) pertains to the assessed value of real property in the opinion of a qualified appraiser or valuer. It is usually used as a pre-qualification & risk-based pricing factor related to the issuance of mortgage loans by a of $56 million. The interest rate on these loans is fixed for the entire ten-year term at the rate of 5.46%. These new loans replace approximately $34 million of debt previously financed through GMAC at variable interest rates equal to LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 240 basis points (approximately 5.83% at the time of the refinancing). Consequently, the refinancing will increase the Company's available cash by approximately $4.6 million, while reducing the interest rate on the new loan amount by approximately 40 basis points and fixing it for ten years. In the second quarter of 2005, the Company recorded a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta loss of $1.6 million on treasury rate lock agreements with a previous lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. to Triad II, which was acquired by the Company in July of 2003. These rate lock agreements, along with interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. , were originally required by the lender to hedge the risk that the costs of future issuance of debt may be adversely affected by changes in interest rates. The debt related to these agreements was refinanced in the fourth quarter of 2004, no longer qualifying these agreements as an effective interest rate hedge. The Company reflects the interest rate lock agreements at fair value on the balance sheet and related gains and losses are reflected on the income statement. The mark-to-market value of these obligations generally moves in the opposite direction of the yield on the 10-year treasury note. During the second quarter, a reduction of over 50 basis points in the yield on the 10-year treasury note caused an increase of $1.6 million in the settlement amount of this obligation. Since June June: see month. 30, 2005, the yield on the 10-year treasury has increased and the Company has recovered approximately $1.0 million of the reported loss. These non-cash mark-to-market adjustments will continue until the settlement date of January January: see month. 3, 2006 or until the Company decides to convert the settlement amount of this obligation to a term note. The Company has an option to convert the settlement amount to a note with a five year term at an interest rate of LIBOR plus 250 basis points. The Company had total mortgage debt of $252.8 million on June 30, 2005 at a blended blend v. blend·ed or blent , blend·ing, blends v.tr. 1. To combine or mix so that the constituent parts are indistinguishable from one another: average borrowing rate of 6.5 percent. Approximately $210.5 million of debt was sensitive to changes in short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. rates prior to the refinancing announced in July. Subsequent to the refinancing, approximately 30% of the Company's debt is fixed and 70% is variable with partial interest rate caps in place. As of June 30, 2005, the Company had $15.8 million of cash, cash equivalents and restricted cash, and $146.8 million in shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. , equivalent to approximately $5.69 per share. The Company expects to receive net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $10 million in the third quarter of 2005 due to the GMAC refinancing discussed earlier and the sale/leaseback agreement with Ventas, Inc. ("Ventas"). Sale/Leaseback with Ventas As recently announced, the Company's joint venture with affiliates of 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 ("Blackstone") entered into a Purchase and Sale Agreement with Ventas to sell the six communities owned by the joint venture to Ventas for approximately $85 million. In addition, the Company executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. Master Lease Agreements with Ventas to lease these six communities from Ventas. The Ventas Leases each have an initial term of ten years, with two five year renewal options. The initial lease rate on the Ventas Leases will be 8 percent and will be subject to conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. escalation clauses escalation clause n → cláusula de reajuste de los precios escalation clause n → clause f d'indexation escalation clause n . The transaction is expected to close in the third quarter of 2005, subject to lender and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals and other customary closing conditions. The Company expects to record a gain on the sale of these six properties, which will be recognized over the initial lease term. Furthermore, the Company anticipates receiving net proceeds from the transaction which represent its equity interest and additional incentive payments from the joint venture. These proceeds are estimated to be approximately $6.5 million, subject to adjustments and prorations, compared to the Company's initial investment of approximately $1.6 million. Upon closing the transaction, the Company will begin consolidating the operations of the six communities in its consolidated statement of operations See Income statement. . "This quarter reflects continuing progress toward higher occupancies and rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. rates," said 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. "We began this year with an improved capital structure, including reduced debt, and an expanded portfolio of communities under management. The operating and financial improvements we are achieving are converging con·verge v. con·verged, con·verg·ing, con·verg·es v.intr. 1. a. To tend toward or approach an intersecting point: lines that converge. b. with better industry fundamentals, lower capitalization rates Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. and attractive interest rates to form a solid platform for future growth. These positive factors are contributing to an active acquisitions market, which we believe will accelerate the improvement of the Company's profitability." 2Q05 Conference Call Information The Company will host a conference call with senior management to discuss the Company's second quarter 2005 financial results. The call will be held on Tuesday Tuesday: see week. , August 9, 2005 at 11:00 am Eastern Time. The call-in call-in adj. Being in a format such that listeners or viewers are invited to have their telephone conversations with the host or guests on a show broadcast to other listeners: a call-in radio show. n. number is 719-457-2633. No confirmation number is required. 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. . For the convenience of the Company's shareholders and the public, the conference call will be recorded and available for replay starting August 9, 2005 at 2:00 pm Eastern Time, until August 16, 2005 at 8:00 pm Eastern Time. To access the conference call replay, call 719-457-0820, confirmation code 4207378. 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 54 senior living communities in 20 states with an aggregate capacity of approximately 8,700 residents, including 39 senior living communities which the Company owns or in which the Company has an ownership interest, and 15 communities it manages for third parties. In the communities operated by the company, 84 percent of residents live independently and 16 percent of residents require assistance with activities of daily living. This release contains certain financial information not derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. 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 GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), including adjusted EBITDA, 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 See attach a file. to this release. 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.
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2005 2004
----------- ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $15,359 $19,515
Restricted cash 483 --
Accounts receivable, net 2,542 2,073
Accounts receivable from affiliates 284 1,220
Federal and state income taxes receivable 2,496 2,018
Deferred taxes 642 642
Assets held for sale 520 1,008
Property tax and insurance deposits 4,006 2,731
Prepaid expenses and other 4,116 2,766
----------- ------------
Total current assets 30,448 31,973
Property and equipment, net 376,053 381,051
Deferred taxes 9,182 7,565
Investments in limited partnerships 3,284 3,202
Assets held for sale 1,514 1,026
Other assets, net 8,507 6,358
----------- ------------
Total assets $428,988 $431,175
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,976 $2,162
Accounts payable to affiliates -- 318
Accrued expenses 8,324 7,478
Deferred income 789 680
Current portion of notes payable 10,263 42,242
Customer deposits 1,957 1,936
----------- ------------
Total current liabilities 23,309 54,816
Deferred income from affiliates 85 125
Other long-term liabilities 7,770 6,909
Notes payable, net of current portion 250,759 219,526
Minority interest in consolidated partnership 251 252
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 -- 25,805
and 25,751 in
2005 and 2004, respectively 258 258
Additional paid-in capital 125,169 124,963
Retained earnings 21,387 24,326
----------- ------------
Total shareholders' equity 146,814 149,547
----------- ------------
Total liabilities and shareholders'
equity $428,988 $431,175
=========== ============
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except earnings per share)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
Revenues:
Resident and health care
revenue $23,486 $22,493 $46,860 $44,605
Unaffiliated management
services revenue 403 41 796 81
Affiliated management
services revenue 547 483 1,018 957
-------- --------- --------- ---------
Total revenues 24,436 23,017 48,674 45,643
-------- --------- --------- ---------
Expenses:
Operating expenses (exclusive
of depreciation and
amortization shown below) 16,207 16,238 32,286 32,717
General and administrative
expenses 2,469 2,253 4,839 4,336
Depreciation and amortization 3,147 2,951 6,281 5,908
-------- --------- --------- ---------
Total expenses 21,823 21,442 43,406 42,961
-------- --------- --------- ---------
Income from operations 2,613 1,575 5,268 2,682
Other income (expense):
Interest income 34 158 57 321
Interest expense (4,521) (3,831) (8,751) (7,915)
Loss on treasury rate lock
agreement (1,620) -- (1,353) --
Other income 124 73 234 140
-------- --------- --------- ---------
Loss before income taxes and
minority interest in
consolidated partnership (3,370) (2,025) (4,545) (4,772)
Benefit for income taxes 1,191 422 1,605 1,096
-------- --------- --------- ---------
Loss before minority interest
in consolidated partnership (2,179) (1,603) (2,940) (3,676)
Minority interest in
consolidated partnership (2) 7 1 34
-------- --------- --------- ---------
Net loss $(2,181) $(1,596) $(2,939) $(3,642)
======== ========= ========= =========
Per share data:
Basic loss per share $(0.08) $(0.06) $(0.11) $(0.15)
======== ========= ========= =========
Diluted loss per share $(0.08) $(0.06) $(0.11) $(0.15)
======== ========= ========= =========
Weighted average shares
outstanding -- basic 25,776 25,668 25,765 24,683
======== ========= ========= =========
Weighted average shares
outstanding -- diluted 25,776 25,668 25,765 24,683
======== ========= ========= =========
CAPITAL SENIOR LIVING CORPORATION
RECONCILATION OF NON GAAP ITEMS
(unaudited, in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -----------------
2005 2004 2005 2004
---------- -------- -------- --------
Reconciliation of cash earnings
excluding loss on treasury rate
locks:
Net loss $(2,181) $(1,596) $(2,939) $(3,642)
Depreciation and
amortization 3,147 2,951 6,281 5,908
Loss on treasury rate
locks, net of tax 1,053 -- 879 --
---------- -------- -------- --------
Adjusted cash earnings $2,019 $1,355 $4,221 $2,266
========== ======== ======== ========
Reconciliation of cash earnings
excluding loss on treasury rate
locks per diluted share:
Net loss per diluted
share $(0.08) $(0.06) $(0.11) $(0.15)
Depreciation and
amortization per diluted
share 0.12 0.11 0.24 0.24
Loss on treasury rate
locks per diluted share 0.04 -- 0.03 --
---------- -------- -------- --------
Adjusted cash earnings
per diluted share $0.08 $0.05 $0.16 $0.09
========== ======== ======== ========
Reconciliation of net loss
excluding loss on treasury rate
locks:
Net loss $(2,181) $(1,596) $(2,939) $(3,642)
Loss on treasury rate
locks, net of tax 1,053 -- 879 --
---------- -------- -------- --------
Adjusted net loss $(1,128) $(1,596) $(2,060) $(3,642)
---------- -------- -------- --------
Reconciliation of net loss
excluding the loss on treasury
rate locks per diluted share:
Net loss per diluted share $(0.08) $(0.06) $(0.11) $(0.15)
Loss on treasury rate
locks per diluted share 0.04 -- 0.03 --
---------- -------- -------- --------
Adjusted net loss per
diluted share $(0.04) $(0.06) $(0.08) $(0.15)
---------- -------- -------- --------
Adjusted EBITDA reconciliation:
Income from operations $2,613 $1,575 $5,268 $2,682
Depreciation and
amortization 3,147 2,951 6,281 5,908
---------- -------- -------- --------
Adjusted EBITDA $5,760 $4,526 $11,549 $8,590
========== ======== ======== ========
Reconciliation of shareholders'
equity per outstanding share:
Shareholders' equity $146,814
Common shares outstanding
at June 30, 2005 25,805
----------
Shareholders' equity
per outstanding share $5.69
==========
Capital Senior Living Corporation
Supplemental Information
Resident
Communities Capacity Units
----------------- ------------- -------------
Q2 05 Q2 04 Q2 05 Q2 04 Q2 05 Q2 04
-------- -------- ------ ------ ------ ------
Portfolio Data
I. Community Ownership
/ Management
Consolidated
communities 29 31 4,831 4,831 4,324 4,324
Joint Venture
communities (equity
method) 10 10 1,867 1,867 1,576 1,576
Third party
communities managed 15 1 1,970 156 1,688 152
-------- -------- ------ ------ ------ ------
Total 54 42 8,668 6,854 7,588 6,052
Independent living 7,313 5,925 6,324 5,164
Assisted living 1,185 759 1,095 719
Skilled nursing 170 170 169 169
------ ------ ------ ------
Total 8,668 6,854 7,588 6,052
II. Percentage of
Operating Portfolio
Consolidated
communities 53.7% 73.8% 55.7% 70.5% 57.0% 71.4%
Joint venture
communities (equity
method) 18.5% 23.8% 21.5% 27.2% 20.8% 26.0%
Third party
communities managed 27.8% 2.4% 22.7% 2.3% 22.2% 2.5%
-------- -------- ------ ------ ------ ------
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Independent living 84.4% 86.4% 83.3% 85.3%
Assisted living 13.7% 11.1% 14.4% 11.9%
Skilled nursing 2.0% 2.5% 2.2% 2.8%
------ ------ ------ ------
Total 100.0% 100.0% 100.0% 100.0%
Selected Operating
Results
I. Consolidated communities
Number of communities 29 31
Resident capacity 4,831 4,831
Unit capacity 4,324 4,324
Financial occupancy(1) 86.3% 85.2%
Revenue (in millions) 23.4 22.4
Operating expenses
(in millions)(2) 14.3 14.0
Operating margin 39% 38%
Average monthly rent 2,098 2,050
II. Waterford / Wellington
communities
Number of communities(3) 17 17
Resident capacity 2,426 2,426
Unit capacity 2,132 2,132
Financial occupancy(1) 88.2% 86.0%
Revenue (in millions) 10.1 9.4
Operating expenses
(in millions)(2) 6.0 6.0
Operating margin 41% 36%
Average monthly rent 1,800 1,737
III. Total Portfolio
Number of communities 54 42
Resident capacity 8,668 6,854
Unit capacity 7,588 6,052
Financial occupancy(1) 85.1% 83.2%
Revenue (in millions) 41.1 32.3
Operating expenses
(in millions)(2) 23.8 19.3
Operating margin 42% 40%
Average monthly rent 2,130 2,160
IV. Consolidated Debt Information (in
thousands, except for interest rates)
Excludes insurance
premium financing
Fixed rate debt 42,328 68,483
Variable rate debt,
with a floor - 50,928
Variable rate debt,
with a cap 184,108 35,111
Variable rate debt,
no cap or floor 26,401 104,610
-------- --------
Total debt 252,837 259,132
-------- --------
Fixed rate debt -
weighted average
rate 8.1% 7.8%
Variable rate debt -
weighted average
rate 6.2% 4.6%
Total debt -
weighted average
rate 6.5% 5.4%
(1) Financial occupancy represents actual days occupied divided by
total number of available days during the quarter.
(2) Excludes management fees, insurance and property taxes.
(3) Excludes Canton and Towne Centre expansions which were each
consolidated with their main campus in December 2004.
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