Capital Senior Living Corporation to Acquire Remaining Interests in 12 Communities; Increases Resident Capacity of Wholly Owned Communities by 1,670.Business Editors DALLAS--(BUSINESS WIRE)--March 31, 2003 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 that it has executed Partnership Interest Purchase Agreements to purchase the remaining interests in Triad Senior Living II, L.P., Triad Senior Living III, L.P., Triad Senior Living IV, L.P., and Triad Senior Living V, L.P., (the "Triad Entities"). The Company currently has an approximate 1% limited partnership interest in each of the Triad Entities. The Triad Entities own twelve communities with a combined resident capacity of approximately 1,670 residents. The resident capacity mix is 95% independent living and 5% 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. , with all revenues derived from private pay sources. The Company will purchase the partnership interests of the general partner and other third party limited partnership interests of the Triad Entities for approximately $1.7 million in cash plus liabilities assumed. If the transaction had been completed as of December 31, 2002, the Company would have increased its assets by approximately $189.0 million and would have increased its liabilities by approximately $129.0 million, after eliminating intercompany balances of approximately $60.0 million, representing advances from the Company. Upon completion of this transaction, which the Company expects to take place by the end of the second fiscal quarter of 2003, the Company will wholly own each partnership. The purchase agreements are subject to customary terms and conditions. "We are pleased to increase by 64% the resident capacity of communities owned entirely by the Company," 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. "Transition issues should be minimal as the Company has been involved with these communities since their inception through development and management." These twelve communities produced $13.0 million of revenues in 2002 and, if owned during that period, would have increased the Company's resident revenues by 23%. Of the twelve communities acquired, eleven opened between November 2000 and January 2002. These eleven communities improved their lease-up levels to 69% as of March 31, 2003 from 40% the previous year. The last community, which opened in May of 2002, was leased to 78% as of March 31, 2003. "We believe the acquisition of these partnership interests will greatly simplify our balance sheet and provide greater transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. ," 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 said. "Our revenues will increase significantly and, while these properties are not yet breaking even, we have captured 100% of any future upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside ." The Company plans to discuss further the expected benefits of this acquisition along with earnings guidance during its first quarter results conference call on April 30, 2003. 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 of care, which integrates independent living, assisted living and home care services, to provide residents the opportunity to age in place. The Company currently owns and/or operates 43 communities in 20 states with a total capacity of approximately 6,900 residents. In the communities operated by the Company, 86 percent of residents live independently and 14 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.
Contact Ralph A. Beattie, Chief Financial Officer, at 972/770-5600 or Matt Hayden, President of Hayden Communications, Inc. at 760/487-1137 for more information. |
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