Capital Senior Living Corporation (NYSE:CSU), a national operators of senior living communities, announced operating results for the second quarter of 2009 a few weeks ago. The company’s revenues and earnings were slightly below 2008 level at $47.2 million for revenue in Q2 2009 versus $49 million in Q2 2008. The company’s occupancy rate for its 58 stabilized communities was 86 percent and operating margins (before property taxes, insurance and management fees) were 49 percent in stabilized independent and assisted living communities. At the company’s communities under management, excluding three communities undergoing conversions, same-store revenue increased 0.7 percent versus the second quarter of 2008 as a result of a 3.8 percent increase in average monthly rent and same community expenses decreased 1.3 percent and net income increased 3.6 percent
from the comparable period of the prior year.
“While the seniors housing market is not immune to the effects of the national economic slowdown, the cost reduction programs we have implemented at the corporate and property levels and increases in average monthly rents are contributing to positive operating performance,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “Tight control of expenses enabled us to improve margins versus the comparable period of the prior year despite lower occupancies. We are encouraged by occupancy gains in the last two months. When occupancies return to historic levels, revenue growth is expected to result in significant incremental margin contributions. We are well-positioned to take advantage of opportunities in the current environment and maximize shareholder value through growth and profitability.”
For the full earnings details, click here.