Capital Senior Living Corporation (NYSE:CSU) reported revenues increased 24.9% to $59.8 million in the first quarter of 2011, an increase of $11.9 million from the prior year.
During the period, adjusted cash from facility operations increased 48.0% to $5.8 million or $0.21 per share, an increase of $0.06 per share from the first quarter of 2010. Adjusted EBITDAR increased 43.1% to $20.5 million and the EBITDAR margin improved to 34.3% from 29.9% in the first quarter of the prior year.
“We are pleased to report positive results for the first quarter, which is typically a challenging period,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “We increased average rents by nearly nine percent and tightly controlled expenses. Our occupancy grew by 140 basis points, our EBITDAR margin increased 440 basis points and CFFO grew by 48%.
The company said the business benefited from need-driven demand and virtually no new supply in an improving economy.
“We are also excited about our acquisition pipeline, which is expected to increase our ownership of high-quality senior living communities, enhance our geographic concentration, generate meaningful increases in CFFO and be immediately accretive to earnings,” said Cohen.
CSU said it has started the due diligence process on a number of transactions consisting of high-quality senior living communities, which it expects to acquire during the third quarter of 2011.