Capital Senior Living Corporation Reports Third Quarter Earnings of Seven Cents Per Share Before Loss On Sale of Two HCP Properties.Business Editors DALLAS--(BUSINESS WIRE)--Oct. 25, 2000 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 and developers of senior living communities, announced today its operating results for the third quarter 2000. The results reflect significant progress toward the Company's previously announced strategic initiatives aimed at increasing ownership of assets and enhancing cash flows from operations. "We are pleased to have closed the merger with ILM Senior Living, Inc. ("ILM") during the quarter," 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. "These eight properties have increased resident capacity of owned communities by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1300 residents and are expected to increase revenues by more that $22 million and 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 by approximately $10.5 million over the next twelve months." The Company's merger agreement with ILM II Senior Living, Inc. ("ILM II") is still in force and the Company continues to negotiate financing to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. the merger. The Company and ILM II are discussing the modification A change or alteration in existing materials. Modification generally has the same meaning in the law as it does in common parlance. The term has special significance in the law of contracts and the law of sales. of certain terms of the merger agreement to accommodate closing the transaction. OPERATING AND FINANCIAL RESULTS For the third quarter 2000, the Company produced revenues of $16.0 million and net income before loss on sale of two properties of $1.3 million, or $0.07 per share. This compares to revenues of $16.6 million and net income of $4.4 million, or $0.22 per share for the same period in 1999. During the quarter, HealthCare Properties, L.P. ("HCP HCP, n healthcare provider, a professional who specializes in treating and managing a person's general or specific health needs. "), a limited partnership which owns nursing homes and rehabilitation rehabilitation: see physical therapy. centers, sold two properties held for sale at a combined loss of $653,000. Since Capital Senior Living owns 57% of the partnership interests, its share of the after tax loss was $227,000. Consequently, reported earnings on a 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: basis were $.05 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. for the quarter, $0.02 per share lower than if the properties had not been sold. Proceeds from the sale of the two properties totaled $2.2 million. The Company produced cash earnings (net income plus depreciation and amortization) of $2.5 million, or $0.13 per share for the quarter, compared to cash earnings of $5.5 million, or $0.28 per share for the third quarter of 1999. The Company's previously announced strategic initiatives resulted in a reduction of development fees in the third quarter 2000 of approximately $3.3 million compared to the same period in the prior year. The third quarter of 2000 is expected to be the last quarter in which the Company earns significant development fees, since projects begun as joint ventures are nearing completion. Third quarter 2000 resident and healthcare revenues increased by approximately $2.7 million compared to the same period in the prior year as the ILM merger was completed in the middle of the quarter. For the first nine months of 2000, the Company produced revenues of $40.9 million and net income of $3.9 million, or $0.20 per share. This compares to revenues of $48.0 million and net income of $12.2 million, or $0.62 per share for the same period in 1999. The Company produced cash earnings of $7.3 million, or $0.37 per share, compared to cash earnings of $15.6 million or $0.79 per share for the first nine months of 1999. The revenue difference between the comparative periods is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to reduced development fees of $9.5 million. As of September September: see month. 30, 2000, the Company had $27.9 million in cash and cash equivalents, $32.0 million in working capital, and $113.4 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. . "We continue to benefit from our focus on operations and marketing of our existing and new communities," 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. , the Company's Chief Executive Officer. "In addition, we are continuing to generate increased cash flow from our operations and the sale of non-core assets. We are also exploring ways to reduce our interest costs by retiring and refinancing Refinancing An extension and/or increase in amount of existing debt. at lower fixed rates certain of our floating rate debt. These sources of liquidity are expected to be sufficient to fund our current growth plans which include possible acquisitions and additional management agreements." HIGHLIGHTS FOR THE QUARTER Company highlights for third quarter 2000 include: -- Net income of $1.3 million and basic and diluted net income per share of $0.07 (before the loss on sale of two HCP properties); -- Cash earnings of $2.5 million, or $0.13 per share; -- Average occupancy rate on stabilized communities of 92 percent; -- Average occupancy rate on all communities (including those in lease up) of 84 percent; -- Same community revenue increase of 3 percent; -- Independent and assisted living community operating margins averaged 43 percent. ABOUT THE COMPANY Capital Senior Living Corporation is one of the nation's largest operators and developers 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 41 communities in 18 states with a total capacity of approximately 6,800 residents and is developing and/or constructing 18 communities with a total capacity of approximately 2,500 residents. Eleven of these new communities are scheduled to open during the fourth quarter 2000. Upon completion of all these developments, the Company is expected to increase its total capacity to approximately 9,300 residents. In the communities operated by the Company, 81 percent of residents live independently and 19 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.
3Q00 CONFERENCE CALL INFORMATION Members of the Company's senior management team will discuss third quarter 2000 results via a telephone conference call today, October October: see month. 25, 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 704833. 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 from Wednesday Wednesday: see week. , October 25, at 2 p.m. Eastern Time through Wednesday, November November: see month. 1 at 8 p.m. Eastern Time. To access the conference call replay, call 719/457-0820 (confirmation code 704833). The conference call will also be made available for playback Playback could mean:
Contact Ralph A. Beattie Beattie is a surname, and may refer to:
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
--------- --------- --------- ---------
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Revenues:
Resident and healthcare
revenue $ 12,955 $ 10,304 $ 33,220 $ 30,816
Rental and lease income 1,032 993 3,054 3,188
Unaffiliated management
services revenue 523 641 1,783 1,983
Affiliated management
services revenue 285 113 690 341
Unaffiliated
development fees 106 355 476 1,202
Affiliated development
fees 1,139 4,154 1,658 10,455
--------- --------- --------- ---------
Total revenues 16,040 16,560 40,881 47,985
Expenses:
Operating expenses 7,696 6,270 20,016 18,262
General and
administrative expenses 2,571 2,130 6,923 6,486
Depreciation and
amortization 1,460 1,143 3,462 3,397
--------- --------- --------- ---------
Total expenses 11,727 9,543 30,401 28,145
--------- --------- --------- ---------
Income from operations 4,313 7,017 10,480 19,840
Other income (expense):
Gain (loss) on sale of
assets (653) 760 (350) 760
Interest income 1,489 1,798 4,322 5,190
Interest expense (3,322) (1,899) (7,292) (4,867)
--------- --------- --------- ---------
Income before income
taxes and minority
interest in
consolidated partnership 1,827 7,676 7,160 20,923
Provision for
income taxes (655) (2,793) (2,360) (7,781)
--------- --------- --------- ---------
Income before minority
interest in consolidated
partnership 1,172 4,883 4,800 13,142
Minority interest in
consolidated partnership (99) (497) (943) (920)
--------- --------- --------- ---------
Net income $ 1,073 $ 4,386 $ 3,857 $ 12,222
========= ========= ========= =========
Net income per share:
Basic $ 0.05 $ 0.22 $ 0.20 $ 0.62
========= ========= ========= =========
Diluted $ 0.05 $ 0.22 $ 0.20 $ 0.62
========= ========= ========= =========
Weighted average shares
outstanding - basic 19,717 19,717 19,717 19,717
========= ========= ========= =========
Weighted average shares
outstanding - diluted 19,717 19,871 19,727 19,835
========= ========= ========= =========
CAPITAL SENIOR LIVING CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2000 1999
---------------- ----------------
ASSETS (Unaudited) (Audited)
Current assets:
Cash and cash equivalents $ 27,858 $ 32,988
Accounts receivable, net 3,381 3,392
Accounts receivable from affiliates 4,778 9,055
Interest receivable 1,007 834
Federal and state income taxes
receivable 4,269 6,035
Deferred taxes 565 910
Prepaid expenses and other 2,517 508
---------------- ----------------
Total current assets 44,375 53,722
Property and equipment, net 205,189 104,723
Deferred taxes 9,213 9,516
Notes receivable 569 --
Notes receivable from affiliates 38,902 30,596
Investments in limited partnerships 9,595 9,123
Assets held for sale 7,945 9,549
Other assets 8,577 4,647
---------------- ----------------
Total assets $ 324,365 $ 221,876
================ ================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,436 $ 2,512
Accrued expenses 2,382 2,127
Current portion of notes payable 4,537 1,199
Customer deposits 1,044 911
---------------- ----------------
Total current liabilities 12,399 6,749
Deferred income 231 --
Deferred income from affiliates 2,490 1,785
Notes payable, net of current
portion 178,229 58,416
Line of credit 8,353 34,000
Minority interest in consolidated
partnership 9,257 11,377
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
September 30, 2000 and
December 31, 1999 197 197
Additional paid-in capital 91,935 91,935
Retained earnings 21,274 17,417
---------------- ----------------
Total shareholders' equity 113,406 109,549
---------------- ----------------
Total liabilities and
shareholders' equity $ 324,365 $ 221,876
================ ================
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