Capital Senior Living Corporation (NYSE:CSU), one of the country’s largest operators of senior living communities, announced operating results for the first quarter of 2009 a few weeks ago that show the company is facing broad challenges ranging from slowing revenue growth from a a lack of new projects to higher taxes as a result of recently enacted tax programs in the state of Texas. While the company faced lower revenues, the company successfully addressed that problem by lowering overhead and operating expenses to compensate for the reduced revenues.
- Revenues were $48.0 million in the first quarter of 2009 compared to $48.5 million in the first quarter of 2008.
- Net income was $0.8 million or $0.03 per diluted share in the first quarter of 2009 compared to net income of $1.5 million or $0.06 per diluted share in the first quarter of 2008.
- The company had an average physical occupancy rate for the 58 stabilized communities at 87 percent
“We continue to make progress despite challenging economic conditions,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “Same-store revenue increased as a result of higher average monthly rents and our corporate and property level cost controls and reductions are contributing to positive operating performance. Both EBITDAR and EBITDAR margin improved sequentially from the fourth quarter of 2008. In addition, our first quarter move-ins and deposits from prospective residents
increased from both the previous quarter and the comparable quarter of the prior year. Attrition, which is typically higher in the first quarter, was less than that experienced in the first quarter of 2008. We are well-positioned to take advantage of opportunities in the current environment and maximize shareholder value through growth and profitability.”
For more information on CSU’s first quarter 2009 results, click here.