Capital Senior Living Shows Q2 Profit, Sees Portfolio Additions Ahead

Capital Senior Living Corporation (NYSE:CSU) announced results for the second quarter of 2010 last week that showed a seven percent increase in revenues to $50.5 million in Q2 2010 when compared to a year earlier.  The company’s Cash From Facility Operations (“CFFO”) increased 26 percent to $4.4 million and showed net income of $1.5 million for the quarter.  CSU expects to to add 12 high-quality leased assisted living communities in the third quarter of this year that will expand its resident capacity.  Some of the operating highlights include:

  • Same community occupancy increased 40 basis points during the second quarter of 2010, ending the quarter at 85 percent.
  • Operating margins were 49 percent in stabilized independent and assisted living communities.
  • At communities under management, excluding three communities undergoing conversions, same-store revenue increased 1.5 percent versus the second quarter of 2009 as a result of a 1.7 percent increase in average monthly rent. Same community expenses increased 0.5 percent and net income increased 3.0 percent from the comparable period of the prior year.

“Our disciplined expense management and execution of our strategic business plan are contributing to meaningful enhancements in shareholder value,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “We closed two transactions in the second quarter and anticipate closing a third significant transaction in the third quarter.  On a combined basis, these three transactions are expected to increase incremental annual revenues by approximately $52 million, a more than 25 percent increase, and EBITDAR by over $22 million; incremental EBITDAR margin is expected to exceed 43 percent; and CFFO for the Company should grow by approximately $3 million per year, equivalent to $0.11 per share. In addition, we are encouraged by the fact that new supply will be practically non-existent as demand continues to grow. We expect future occupancy gains to result in solid incremental margins and meaningful cash flow growth.”


Q2 2010 Capital Senior Living earnings release