Capital Senior Living Announces Q4 and 2008 Results

Capital Senior Living, NYSE:CSU, announced its results for the fourth quarter of 2008 and its full year results that showed an increase in year over year revenues by 2% and a small decrease in net income between 2007 and 2008. Some of the expenses incurred that led to lower profitability were the result of discontinuation of development activities including separation pay for those activities.


Operating Highlights include:

  • Average physical occupancy rate for the 57 stabilized communities was 88 percent.
  • Operating margins (before property taxes, insurance and management fees) were 48 percent in stabilized independent and assisted living communities.
  • 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.

    “We made progress during the fourth quarter in spite of the economic downturn,” said Lawrence A. Cohen, 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 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 our focus on providing seniors with quality housing and care at affordable rates, and delivering exceptional value in challenging economic times.”

    For the full earnings release, click here.