Capital Senior Living (NYSE: CSU) Executive Vice President and CFO Carey Hendrickson is making his exit.
Hendrickson is leaving the Dallas-based senior living operator to work as CFO of U.S. Physical Therapy (NYSE: USPH), a Houston-based operator of outpatient physical therapy clinics, according to a press release. He is set to remain CFO of Capital Senior Living through November 6.
Looking back at his time at Capital Senior Living, Hendrickson said he’s proud of the improvements made to the company’s business systems and analytics, and of working with the company’s executive team to build an operational platform for future success.
“In my six years with the company, I have never felt better about the operational side of our business than I do today,” Hendrickson told Senior Housing News. “I believe in the company’s strategy and the leaders that we have in place to execute against that strategy.”
Hendrickson also said he’s pleased with actions the company has taken to improve its financial foundation. Capital recently made the decision to exit all its triple-net leases with real estate investment trust (REIT) landlords and transfer the operations and ownership of 18 communities to Fannie Mae.
“Those actions have resulted in the reduction of approximately $470 million of long-term obligations and have improved our annual cash flow by more than $30 million,” Hendrickson said.
Hendrickson has worked as Capital’s CFO for six years, and has made numerous contributions to the company, according to CEO Kim Lody.
“He has been a valued member of the team helping to lead Capital Senior Living through this dynamic time,” Lody said in a press release. “We appreciate his support in ensuring a smooth transition, and wish him all the best going forward.”
The company has tapped an executive search firm to find a successor for the role. In the meantime, Capital has said that Tiffany Dutton, vice president of accounting and financial reporting, will assume new responsibilities for treasury and financial planning and analysis (FP&A) functions. She first joined the company in January.
“Tiffany Dutton is very strong and will be very helpful and instrumental in the transition,” Hendrickson said. “She has an excellent background in accounting, financial reporting, process improvement and efficiency, and is a very good leader of people.”
Hendrickson added: “I look forward to continuing to work with Kim [Lody] and Tiffany [Dutton] to ensure a smooth transition from a financial perspective.”
Hendrickson is not the only executive to leave Capital Senior Living in recent years. The company in early 2019 parted ways with its former COO, Brett Lee — roughly one month after Lody officially started her new role as CEO to succeed now-retired former CEO Larry Cohen.
With Lody at the helm, Capital is currently engaged in a turnaround effort. And Lody told Senior Housing News she believes the company will emerge from the pandemic a stronger operator on firmer financial footing.
“We’re about halfway through our three-year strategy and on track,” she said in an interview earlier this month.