Capital Senior Living Corporation Reports Fourth Quarter and Full Year 2016 Results
Operating and Financial Summary (all amounts in this operating and financial summary exclude three communities that are undergoing repositioning, lease-up or significant renovation and conversion, unless otherwise noted; also, see Non-GAAP Financial Measures below and reconciliation of Non-GAAP measures to the most directly comparable GAAP measure on the final page of this release.)
- Revenue in the fourth quarter of 2016, including all communities, was
$115.8 million , an$8.3 million , or 7.7%, increase from the fourth quarter of 2015. Revenue for full year 2016 increased$35.3 million , or 8.6% to$447.4 million .- Revenue for consolidated communities, which excludes the three communities undergoing repositioning, lease-up or significant renovation and conversion, was
$111.3 million in fourth quarter of 2016, an increase of 7.9% as compared to the fourth quarter of 2015. For full year 2016, revenue for consolidated communities was$429.7 million , a 9.0% increase as compared to full year 2015. - Occupancy for the Company’s consolidated communities was 88.5% in the fourth quarter of 2016, an increase of 10 basis points from the third quarter of 2016 and a decrease of 70 basis points from the fourth quarter of 2015. Same-community occupancy was 88.5% in the fourth quarter of 2016, a 10 basis point decrease from the third quarter of 2016 and a 60 basis point decrease from the fourth quarter of 2015.
- Average monthly rent for the Company’s consolidated communities in the fourth quarter of 2016 was
$3,512 , an increase of$76 per occupied unit, or 2.2%, as compared to the fourth quarter of 2015. Same-community average monthly rent was$3,474 , an increase of$45 per occupied unit, or 1.3%, from the fourth quarter of 2015.
- Revenue for consolidated communities, which excludes the three communities undergoing repositioning, lease-up or significant renovation and conversion, was
- Income from operations, including all communities, was
$0.8 million in the fourth quarter of 2016 and$14.4 million for full year 2016. - The Company’s Net Loss for the fourth quarter of 2016, including all communities, was
$10.5 million , which includes non-cash amortization of resident leases of$3.4 million associated with communities acquired by the Company in the previous 12 months. Net Loss for full year 2016 was$28.0 million .- Excluding non-recurring or non-economic items, the Company’s adjusted net loss was
$2.3 million in the fourth quarter of 2016 and$3.9 million for full year 2016. - Adjusted EBITDAR was
$38.6 million in the fourth quarter of 2016, a 1.1% increase from the fourth quarter of 2015. Adjusted EBITDAR is a financial valuation measure, rather than a financial performance measure, used by management and others to evaluate the value of companies in the senior living industry. The three communities undergoing repositioning, lease-up or significant renovation and conversion, not included in Adjusted EBITDAR, generated an additional$0.7 million of EBITDAR in the fourth quarter of 2016. For full year 2016, Adjusted EBITDAR was$152.9 million , a 5.8% increase over full year 2015. The three communities undergoing repositioning generated an additional$3.2 million of EBITDAR for full year 2016. - Adjusted Cash From Facility Operations (“CFFO”) was
$12.2 million in the fourth quarter of 2016 compared to$12.8 million in the fourth quarter of 2015. For full year 2016, Adjusted CFFO was$48.3 million .
- Excluding non-recurring or non-economic items, the Company’s adjusted net loss was
- As previously disclosed, the Company completed the acquisition of one community during the fourth quarter at a purchase price of
$29.0 million . The Company’s total acquisitions completed in 2016 totaled approximately$138.4 million . - On
January 31, 2017 , the Company completed the purchase of four communities that it previously leased for a total purchase price of approximately$85 million . This transaction results in incremental annual CFFO of approximately$2.0 million .
“The focused execution of our clear and differentiated real-estate strategy yielded solid results in the fourth quarter, including increases in revenue, occupancy, average monthly rent, EBITDAR and CFFO, as compared to the previous quarter,” said
“As we look forward to 2017 and beyond, we expect the continued execution of our strategic business plan to produce outstanding growth in all of our key metrics. In addition to core growth in our operations, our growth will be enhanced by the significant renovations we have made across our portfolio and even greater by the return of a significant number of units currently out of service due to conversions and repositionings. And, we have a robust acquisition pipeline that will allow us to continue to increase our ownership of high-quality senior housing communities in geographically concentrated regions. As such, we believe that we are well positioned to create long-term shareholder value as a larger company with scale, competitive advantages and a substantially all private-pay business model in a highly-fragmented industry that benefits from long-term demographics, need-driven demand, limited competitive new supply in our local markets, a strong housing market and a growing economy.”
Recent Investment Activity
- As previously reported, the Company completed the acquisition of one senior housing community for a purchase price of approximately
$29.0 million in early November. This community expands the Company’s operations inOhio and is comprised of 122 units offering independent living, assisted living and memory care services.Highlights of this transaction were previously reported in the third quarter earnings release in combination with two third quarter acquisitions and are shown below for this individual transaction:
- Increases annual Adjusted CFFO by approximately
$1.1 million . - Adds approximately
$0.4 million to earnings. - Increases annual revenue by approximately
$6.4 million . - Average monthly rent for the community is approximately
$4,500 .
The community was financed with approximately
$22.0 million of non-recourse mortgage debt with a term of 10 years at a fixed interest rate of approximately 4.2%. - Increases annual Adjusted CFFO by approximately
- The Company completed acquisitions of four senior housing communities that it previously leased for a combined purchase price of approximately
$85.0 million inJanuary 2017 . As the communities were previously leased, there is no increase to revenue or EBITDAR related to the transaction; however, the replacement of high cost lease expense, and subsequent annual escalators, with attractive debt financing results in an initial annual increase in Adjusted CFFO and earnings of approximately$2.0 million .The communities were financed with a 36-month, interest-only bridge loan for
$65.0 million with an initial variable interest rate of approximately 4.8%. Three of the four communities are currently undergoing renovation and conversion. The Company plans to obtain permanent financing based on the enhanced cash flow of the communities once the renovations and conversions are completed and occupancy reaches stabilization.Highlights of this transaction include:
- Replaces
$5.1 million of high cost rent expense with attractive debt financing, resulting in$2.0 million initial annual incremental savings - Eliminates annual 3% minimum rent escalators
- Increases the Company’s owned real estate to 83 owned communities or 64.3%
- Provides greater flexibility related to renovation or conversion opportunities and enhancement of real estate and shareholder value due to ownership of real estate
- Replaces
- The Company has a strong pipeline of near- to medium-term targets and is conducting due diligence on additional acquisitions of high-quality senior housing communities in states with extensive existing operations. With a strong reputation among sellers, the Company sources the majority of its acquisitions off-market and at attractive terms.
- During the fourth quarter of 2016, the Company completed supplemental loans on four communities that resulted in
$15.6 million in net cash proceeds, which recognizes the significant value that has been created in these communities since the date of their primary loans in 2014 and 2015. These loans have an average interest rate of 5.7% and mature coterminous with the original loans in 2024 through 2026.
Financial Results – Fourth Quarter
For the fourth quarter of 2016, the Company reported revenue of
Operating expenses for the fourth quarter of 2016 were
General and administrative expenses for the fourth quarter of 2016 were
Income from operations for the fourth quarter of 2016 was
The Company’s Non-GAAP financial measures exclude three communities that are undergoing repositioning, lease-up of higher-licensed units or significant renovation and conversion (see “Non-GAAP Financial Measures” below).
Adjusted EBITDAR for the fourth quarter of 2016 was
Adjusted CFFO was
Financial Results – Full Year
The Company reported 2016 revenue of
General and administrative expenses were
Income from operations for full year 2016 was
Adjusted EBITDAR was
Operating Activities
Same-community results exclude the three communities previously noted that are undergoing repositioning, lease-up or significant renovation and conversion, and transaction and other one-time costs.
Same-community revenue in the fourth quarter of 2016 increased 0.6% versus the fourth quarter of 2015. Due to conversion and refurbishment projects currently in progress at certain communities, fewer units were available for rent in the fourth quarter of this year than the fourth quarter of last year.
Same-community expenses increased 1.6% from the fourth quarter of the prior year, excluding conversion costs in both periods. On the same basis, labor costs, including benefits, increased 2.1%, food costs decreased 3.8% and utilities increased 3.3%, all as compared to the fourth quarter of 2015, and same-community net operating income decreased 0.7% in the fourth quarter of 2016 as compared to the fourth quarter of 2015.
Capital expenditures for the fourth quarter of 2016 were
Balance Sheet
The Company ended the quarter with
As of
The Company’s cash on hand and cash flow from operations are expected to be sufficient for working capital, prudent reserves and the equity needed to fund the Company’s acquisition, conversion and renovation programs.
Q4 2016 Conference Call Information
The Company will host a conference call with senior management to discuss the Company’s fourth quarter and full year 2016 financial results. The call will be held on
For the convenience of the Company’s shareholders and the public, the conference call will be recorded and available for replay starting
Non-GAAP Financial Measures of Operating Performance
Adjusted EBITDAR is a financial valuation measure and Adjusted Net Income and Adjusted CFFO are financial performance measures that are not calculated in accordance with
Adjusted EBITDAR is a valuation measure commonly used by our management, research analysts and investors to value companies in the senior living industry. Because Adjusted EBITDAR excludes interest expense and rent expense, it allows our management, research analysts and investors to compare the enterprise values of different companies without regard to differences in capital structures and leasing arrangements.
The Company believes that Adjusted Net Income and Adjusted CFFO are useful as performance measures in identifying trends in day-to-day operations because they exclude the costs associated with acquisitions and conversions and other items that do not ordinarily reflect the ongoing operating results of our primary business. Adjusted Net Income and Adjusted CFFO provide indicators to management of progress in achieving both consolidated and individual business unit operating performance and are used by research analysts and investors to evaluate the performance of companies in the senior living industry.
The Company strongly urges you to review on the last page of this release the reconciliation of net loss to Adjusted EBITDAR and the reconciliation of net (loss) income to Adjusted Net (Loss) Income and Adjusted CFFO, along with the Company’s consolidated balance sheets, statements of operations, and statements of cash flows.
About the Company
Safe Harbor
The forward-looking statements in this release are subject to certain risks and uncertainties that could cause results to differ materially, including, but not without limitation to, the Company’s ability to find suitable acquisition properties at favorable terms, financing, refinancing, community sales, licensing, business conditions, risks of downturns in economic conditions generally, satisfaction of closing conditions such as those pertaining to licensure, availability of insurance at commercially reasonable rates, and changes in accounting principles and interpretations among others, and other risks and factors identified from time to time in our reports filed with the
For information about
| |
|||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| (unaudited, in thousands) | |||||||||||
| |
|||||||||||
| 2016 | 2015 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 34,026 | $ | 56,087 | |||||||
| Restricted cash | 13,297 | 13,159 | |||||||||
| Accounts receivable, net | 13,675 | 9,254 | |||||||||
| Property tax and insurance deposits | 14,665 | 14,398 | |||||||||
| Prepaid expenses and other | 6,365 | 4,370 | |||||||||
| Total current assets | 82,028 | 97,268 | |||||||||
| Property and equipment, net | 1,032,430 | 890,572 | |||||||||
| Other assets, net | 31,323 | 31,193 | |||||||||
| Total assets | $ | 1,145,781 | $ | 1,019,033 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 5,051 | $ | 3,362 | |||||||
| Accrued expenses | 39,064 | 34,300 | |||||||||
| Current portion of notes payable, net of deferred loan costs | 17,889 | 13,634 | |||||||||
| Current portion of deferred income | 16,284 | 16,059 | |||||||||
| Current portion of capital lease and financing obligations | 1,339 | 1,257 | |||||||||
| Federal and state income taxes payable | 218 | 111 | |||||||||
| Customer deposits | 1,545 | 1,819 | |||||||||
| Total current liabilities | 81,390 | 70,542 | |||||||||
| Deferred income | 12,205 | 13,992 | |||||||||
| Capital lease and financing obligations, net of current portion | 37,439 | 38,835 | |||||||||
| Other long-term liabilities | 15,325 | 4,969 | |||||||||
| Notes payable, net of deferred loan costs and current portion | 882,504 | 754,949 | |||||||||
| Commitments and contingencies | |||||||||||
| Shareholders' equity: | |||||||||||
| Preferred stock, |
|||||||||||
| Authorized shares — 15,000; no shares issued or outstanding | — | — | |||||||||
| Common stock, |
|||||||||||
| Authorized shares — 65,000; issued and outstanding | |||||||||||
| shares 30,012 and 29,539 in 2016 and 2015, respectively | 305 | 299 | |||||||||
| Additional paid-in capital | 171,599 | 159,920 | |||||||||
| Retained deficit | (51,556 | ) | (23,539 | ) | |||||||
| |
(3,430 | ) | (934 | ) | |||||||
| Total shareholders' equity | 116,918 | 135,746 | |||||||||
| Total liabilities and shareholders' equity | $ | 1,145,781 | $ | 1,019,033 | |||||||
| |
|||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||
| (unaudited, in thousands, except per share data) | |||||||||||||||||||||
| Three Months Ended
|
Year Ended
|
||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
| Revenues: | |||||||||||||||||||||
| Resident and health care revenue | $ | 115,805 | $ | 107,529 | $ | 447,448 | $ | 412,177 | |||||||||||||
| Expenses: | |||||||||||||||||||||
| Operating expenses (exclusive of facility lease expense
and depreciation and amortization expense shown below) |
71,806 |
65,122 |
273,899 |
248,736 |
|||||||||||||||||
| General and administrative expenses | 6,702 | 4,869 | 23,671 | 20,351 | |||||||||||||||||
| Facility lease expense | 15,568 | 15,338 | 61,718 | 61,213 | |||||||||||||||||
| Provision for bad debts | 513 | 319 | 1,727 | 1,192 | |||||||||||||||||
| Stock-based compensation expense | 4,163 | 2,088 | 11,645 | 8,833 | |||||||||||||||||
| Depreciation and amortization | 16,295 | 14,032 | 60,398 | 53,017 | |||||||||||||||||
| Total expenses | 115,047 | 101,768 | 433,058 | 393,342 | |||||||||||||||||
| Income from operations | 758 | 5,761 | 14,390 | 18,835 | |||||||||||||||||
| Other income (expense): | |||||||||||||||||||||
| Interest income | 17 | 17 | 67 | 53 | |||||||||||||||||
| Interest expense | (11,241 | ) | (9,710 | ) | (42,207 | ) | (35,732 | ) | |||||||||||||
| Write-off of deferred loan costs and prepayment premiums | — | (1,793 | ) | — | (2,766 | ) | |||||||||||||||
| (Loss) Gain on disposition of assets, net | (12 | ) | (22 | ) | (65 | ) | 6,225 | ||||||||||||||
| Other income | — | — | 233 | 1 | |||||||||||||||||
| Loss before provision for income taxes | (10,478 | ) | (5,747 | ) | (27,582 | ) | (13,384 | ) | |||||||||||||
| Provision for income taxes | (32 | ) | (203 | ) | (435 | ) | (900 | ) | |||||||||||||
| Net loss | $ | (10,510 | ) | $ | (5,950 | ) | $ | (28,017 | ) | $ | (14,284 | ) | |||||||||
| Per share data: | |||||||||||||||||||||
| Basic net loss per share | $ | (0.36 | ) | $ | (0.21 | ) | $ | (0.97 | ) | $ | (0.50 | ) | |||||||||
| Diluted net loss per share | $ | (0.36 | ) | $ | (0.21 | ) | $ | (0.97 | ) | $ | (0.50 | ) | |||||||||
| Weighted average shares outstanding — basic | 29,000 | 28,749 | 28,909 | 28,688 | |||||||||||||||||
| Weighted average shares outstanding — diluted | 29,000 | 28,749 | 28,909 | 28,688 | |||||||||||||||||
| Comprehensive loss | $ | (10,510 | ) | $ | (5,950 | ) | $ | (28,017 | ) | $ | (14,284 | ) | |||||||||
| |
|||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (unaudited, in thousands) | |||||||||||
| Year Ended |
|||||||||||
| 2016 | 2015 | ||||||||||
| Operating Activities
Net loss |
$ |
(28,017 |
) |
$ |
(14,284 |
) |
|||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 60,398 | 53,017 | |||||||||
| Amortization of deferred financing charges | 1,193 | 1,029 | |||||||||
| Amortization of deferred lease costs and lease intangibles, net | 679 | 1,555 | |||||||||
| Amortization of lease incentives | (710 | ) | (134 | ) | |||||||
| Deferred income | (414 | ) | (677 | ) | |||||||
| Lease incentives | 7,530 | 2,464 | |||||||||
| Write-off of deferred loan costs and prepayment premiums | — | 2,766 | |||||||||
| Joint venture equity investment valuation gain | — | — | |||||||||
| (Loss) Gain on disposition of assets, net | 65 | (6,225 | ) | ||||||||
| Equity in earnings of unconsolidated joint ventures, net | — | — | |||||||||
| Write-down of assets held for sale | — | — | |||||||||
| Provision for bad debts | 1,727 | 1,192 | |||||||||
| Stock-based compensation expense | 11,645 | 8,833 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (2,505 | ) | (2,931 | ) | |||||||
| Accounts receivable from affiliates | — | 3 | |||||||||
| Property tax and insurance deposits | (267 | ) | (2,200 | ) | |||||||
| Prepaid expenses and other | (1,995 | ) | 2,427 | ||||||||
| Other assets | (2,228 | ) | (1,289 | ) | |||||||
| Accounts payable | 1,695 | 815 | |||||||||
| Accrued expenses | 4,798 | 2,146 | |||||||||
| Federal and state income taxes receivable/payable | 107 | (108 | ) | ||||||||
| Deferred resident revenue | (1,148 | ) | 176 | ||||||||
| Customer deposits | (274 | ) | 320 | ||||||||
| Net cash provided by operating activities | 52,279 | 48,895 | |||||||||
| Investing Activities
Capital expenditures |
(62,371 |
) |
(42,430 |
) |
|||||||
| Cash paid for acquisitions | (138,750 | ) | (162,460 | ) | |||||||
| Proceeds from SHPIII/CSL Transaction | — | — | |||||||||
| Proceeds from disposition of assets | 72 | 43,463 | |||||||||
| Distributions from joint ventures | — | — | |||||||||
| Net cash used in investing activities | (201,049 | ) | (161,427 | ) | |||||||
| Financing Activities
Proceeds from notes payable |
150,798 |
250,944 |
|||||||||
| Repayments of notes payable | (17,680 | ) | (115,896 | ) | |||||||
| Cash payments for capital lease and financing obligations | (1,314 | ) | (978 | ) | |||||||
| Increase in restricted cash | (138 | ) | (918 | ) | |||||||
| Cash proceeds from the issuance of common stock | 67 | 42 | |||||||||
| Excess tax benefits on stock options exercised | (27 | ) | (19 | ) | |||||||
| Purchases of treasury stock | (2,496 | ) | — | ||||||||
| Deferred financing charges paid | (2,501 | ) | (3,765 | ) | |||||||
| Net cash provided by financing activities | 126,709 | 129,410 | |||||||||
| (Decrease) Increase in cash and cash equivalents | (22,061 | ) | 16,878 | ||||||||
| Cash and cash equivalents at beginning of year | 56,087 | 39,209 | |||||||||
| Cash and cash equivalents at end of year | $ | 34,026 | $ | 56,087 | |||||||
| Supplemental Disclosures | |||||||||||
| Cash paid during the year for: | |||||||||||
| Interest | $ | 40,585 | $ | 33,642 | |||||||
| Income taxes | $ | 582 | $ | 1,039 | |||||||
| Non-cash operating, investing, and financing activities: | |||||||||||
| Notes payable assumed by purchaser through disposition of assets | $ | — | $ | 6,764 | |||||||
| |
|||||||||||||||||||||||||||
| Supplemental Information | |||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||
| Communities | Resident Capacity | Average Units | |||||||||||||||||||||||||
| Q4 16 | Q4 15 | Q4 16 | Q4 15 | Q4 16 | Q4 15 | ||||||||||||||||||||||
| Portfolio Data | |||||||||||||||||||||||||||
| I. Community Ownership / Management | |||||||||||||||||||||||||||
| Consolidated communities | |||||||||||||||||||||||||||
| Owned | 79 | 71 | 9,971 | 9,083 | 7,616 | 6,891 | |||||||||||||||||||||
| Leased | 50 | 50 | 6,333 | 6,333 | 4,901 | 4,906 | |||||||||||||||||||||
| Total | 129 | 121 | 16,304 | 15,416 | 12,517 | 11,797 | |||||||||||||||||||||
| Independent living | 6,965 | 6,984 | 5,295 | 5,337 | |||||||||||||||||||||||
| Assisted living | 9,339 | 8,432 | 7,222 | 6,460 | |||||||||||||||||||||||
| Total | 16,304 | 15,416 | 12,517 | 11,797 | |||||||||||||||||||||||
| II. Percentage of Operating Portfolio | |||||||||||||||||||||||||||
| Consolidated communities | |||||||||||||||||||||||||||
| Owned | 61.2 | % | 58.7 | % | 61.2 | % | 58.9 | % | 60.8 | % | 58.4 | % | |||||||||||||||
| Leased | 38.8 | % | 41.3 | % | 38.8 | % | 41.1 | % | 39.2 | % | 41.6 | % | |||||||||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
| Independent living | 42.7 | % | 45.3 | % | 42.3 | % | 45.2 | % | |||||||||||||||||||
| Assisted living | 57.3 | % | 54.7 | % | 57.7 | % | 54.8 | % | |||||||||||||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||
|
|
|||||||||
| Supplemental Information (excludes communities being repositioned/leased up) | |||||||||
| Selected Operating Results | Q4 16 | Q4 15 | |||||||
| I. Owned communities | |||||||||
| Number of communities | 77 | 69 | |||||||
| Resident capacity | 9,426 | 8,538 | |||||||
| Unit capacity (1) | 7,216 | 6,492 | |||||||
| Financial occupancy (2) | 89.5 | % | 90.8 | % | |||||
| Revenue (in millions) | 66.7 | 59.0 | |||||||
| Operating expenses (in millions) (3) | 42.0 | 36.5 | |||||||
| Operating margin (3) | 37 | % | 38 | % | |||||
| Average monthly rent | 3,444 | 3,338 | |||||||
| II. Leased communities | |||||||||
| Number of communities | 49 | 49 | |||||||
| Resident capacity | 6,107 | 6,107 | |||||||
| Unit capacity (1) | 4,715 | 4,720 | |||||||
| Financial occupancy (2) | 86.8 | % | 86.9 | % | |||||
| Revenue (in millions) | 44.5 | 44.0 | |||||||
| Operating expenses (in millions) (3) | 25.3 | 24.7 | |||||||
| Operating margin (3) | 43 | % | 44 | % | |||||
| Average monthly rent | 3,621 | 3,577 | |||||||
| III. Consolidated communities | |||||||||
| Number of communities | 126 | 118 | |||||||
| Resident capacity | 15,533 | 14,645 | |||||||
| Unit capacity (1) | 11,931 | 11,212 | |||||||
| Financial occupancy (2) | 88.5 | % | 89.2 | % | |||||
| Revenue (in millions) | 111.2 | 103.0 | |||||||
| Operating expenses (in millions) (3) | 67.3 | 61.2 | |||||||
| Operating margin (3) | 39 | % | 41 | % | |||||
| Average monthly rent | 3,512 | 3,436 | |||||||
| IV. Communities under management | |||||||||
| Number of communities | 126 | 118 | |||||||
| Resident capacity | 15,533 | 14,645 | |||||||
| Unit capacity (1) | 11,931 | 11,212 | |||||||
| Financial occupancy (2) | 88.5 | % | 89.2 | % | |||||
| Revenue (in millions) | 111.2 | 103.0 | |||||||
| Operating expenses (in millions) (3) | 67.3 | 61.2 | |||||||
| Operating margin (3) | 39 | % | 41 | % | |||||
| Average monthly rent | 3,512 | 3,436 | |||||||
| |
|||||||||
| Number of communities | 116 | 116 | |||||||
| Resident capacity | 14,443 | 14,443 | |||||||
| Unit capacity (1) | 11,090 | 11,087 | |||||||
| Financial occupancy (2) | 88.5 | % | 89.1 | % | |||||
| Revenue (in millions) | 102.3 | 101.7 | |||||||
| Operating expenses (in millions) (3) | 61.3 | 60.4 | |||||||
| Operating margin (3) | 40 | % | 41 | % | |||||
| Average monthly rent | 3,474 | 3,429 | |||||||
| VI. General and Administrative expenses as a percent of Total Revenues under Management | |||||||||
| Fourth quarter (4) | 4.1 | % | 3.6 | % | |||||
| Fiscal year (4) | 4.4 | % | 4.3 | % | |||||
| VII. Consolidated Mortgage Debt Information (in thousands, except interest rates) | |||||||||
| (excludes insurance premium and auto financing) | |||||||||
| Total fixed rate mortgage debt | 895,469 | 763,427 | |||||||
| Total variable rate mortgage debt | 11,742 | 11,800 | |||||||
| Weighted average interest rate | 4.6 | % | 4.6 | % | |||||
| (1) | Due to conversion and refurbishment projects currently in progress at certain communities, unit capacity is lower in Q4 16 than Q4 15 for same communities under management, which affects all groupings of communities. | |
| (2) | Financial occupancy represents actual days occupied divided by total number of available days during the month of the quarter. | |
| (3) | Excludes management fees, provision for bad debts and transaction and conversion costs. | |
| (4) | Excludes transaction and conversion costs. | |
| |
|||||||||||||||||||||
| NON-GAAP RECONCILIATIONS | |||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||
| Three Months Ended |
Fiscal Year Ended |
||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
| Adjusted EBITDAR | |||||||||||||||||||||
| Net loss | $ | (10,510 | ) | $ | (5,950 | ) | $ | (28,017 | ) | $ | (14,284 | ) | |||||||||
| Depreciation and amortization expense | 16,295 | 14,032 | 60,398 | 53,017 | |||||||||||||||||
| Stock-based compensation expense | 4,163 | 2,088 | 11,645 | 8,833 | |||||||||||||||||
| Facility lease expense | 15,568 | 15,338 | 61,718 | 61,213 | |||||||||||||||||
| Provision for bad debts | 513 | 319 | 1,727 | 1,192 | |||||||||||||||||
| Casualty losses | 202 | 424 | 1,271 | 1,250 | |||||||||||||||||
| Interest income | (17 | ) | (17 | ) | (67 | ) | (53 | ) | |||||||||||||
| Interest expense | 11,241 | 9,710 | 42,207 | 35,732 | |||||||||||||||||
| Write-off of deferred loan costs and prepayment premiums | - | 1,793 | - | 2,766 | |||||||||||||||||
| Loss (Gain) on disposition of assets, net | 12 | 22 | 65 | (6,225 | ) | ||||||||||||||||
| Other income | - | - | (233 | ) | (1 | ) | |||||||||||||||
| Provision for income taxes | 32 | 203 | 435 | 900 | |||||||||||||||||
| Transaction and conversion costs | 1,859 | 1,256 | 4,922 | 3,262 | |||||||||||||||||
| Communities excluded due to repositioning/lease up | (733 | ) | (1,015 | ) | (3,167 | ) | (3,141 | ) | |||||||||||||
| Adjusted EBITDAR | $ | 38,625 | $ | 38,203 | $ | 152,904 | $ | 144,461 | |||||||||||||
| Adjusted Revenues | |||||||||||||||||||||
| Total revenues | $ | 115,805 | $ | 107,529 | $ | 447,448 | $ | 412,177 | |||||||||||||
| Communities excluded due to repositioning/lease up | (4,532 | ) | (4,417 | ) | (17,730 | ) | (17,848 | ) | |||||||||||||
| Adjusted revenues | $ | 111,273 | $ | 103,112 | $ | 429,718 | $ | 394,329 | |||||||||||||
| Adjusted net (loss) income and Adjusted net (loss) income per share | |||||||||||||||||||||
| Net loss | $ | (10,510 | ) | $ | (5,950 | ) | $ | (28,017 | ) | $ | (14,284 | ) | |||||||||
| Casualty losses | 202 | 424 | 1,271 | 1,250 | |||||||||||||||||
| Transaction and conversion costs | 4,888 | 1,256 | 7,719 | 3,262 | |||||||||||||||||
| Resident lease amortization | 3,401 | 3,526 | 12,993 | 14,363 | |||||||||||||||||
| Write-off of deferred loan costs and prepayment premium | - | 1,793 | - | 2,766 | |||||||||||||||||
| Loss (Gain) on disposition of assets, net | 12 | 22 | 65 | (6,225 | ) | ||||||||||||||||
| Tax impact of Non-GAAP adjustments (37%) | (3,146 | ) | (2,598 | ) | (8,158 | ) | (5,704 | ) | |||||||||||||
| Deferred tax asset valuation allowance | 2,170 | 1,942 | 8,569 | 4,986 | |||||||||||||||||
| Tax impact of 4 property sale | - | 59 | - | 351 | |||||||||||||||||
| Communities excluded due to repositioning/lease up | 700 | 302 | 1,694 | 1,298 | |||||||||||||||||
| Adjusted net (loss) income | $ | (2,283 | ) | $ | 776 | $ | (3,864 | ) | $ | 2,063 | |||||||||||
| Diluted shares outstanding | 29,000 | 29,158 | 28,909 | 29,001 | |||||||||||||||||
| Adjusted net (loss) income per share | $ | (0.08 | ) | $ | 0.03 | $ | (0.13 | ) | $ | 0.07 | |||||||||||
| Adjusted CFFO | |||||||||||||||||||||
| Net (loss) income | $ | (10,510 | ) | $ | (5,950 | ) | $ | (28,017 | ) | $ | (14,284 | ) | |||||||||
| Non-cash charges, net | 22,647 | 20,959 | 82,113 | 63,820 | |||||||||||||||||
| Lease incentives | (1,672 | ) | (2,464 | ) | (7,530 | ) | (2,464 | ) | |||||||||||||
| Recurring capital expenditures | (1,183 | ) | (1,122 | ) | (4,634 | ) | (4,413 | ) | |||||||||||||
| Casualty losses | 202 | 424 | 1,271 | 1,250 | |||||||||||||||||
| Transaction and conversion costs | 2,737 | 1,256 | 5,568 | 3,262 | |||||||||||||||||
| Tax impact of 4 property sale | - | 59 | - | 351 | |||||||||||||||||
| Tax impact of Spring Meadows Transaction | (106 | ) | (106 | ) | (424 | ) | (424 | ) | |||||||||||||
| Communities excluded due to repositioning/lease up | 49 | (243 | ) | (43 | ) | (101 | ) | ||||||||||||||
| Adjusted CFFO | $ | 12,164 | $ | 12,813 | $ | 48,304 | $ | 46,997 | |||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170228006714/en/
Chief Financial Officer
Source:
Insurance Jobs Up By 9,000 in January, Report Says
Centene Corporation To Present At Two Upcoming Healthcare Conferences
Advisor News
- The first 5 years of your career could determine the next 50
- Help child-free clients plan for their later years
- When new investment trends emerge, Gen Z is most likely generation to be first in
- Could ‘plain English’ become an advisor’s secret weapon?
- IRI urges Senate action on 403(b) parity legislation
More Advisor NewsAnnuity News
- Nationwide adds mutual fund-linked strategy to New Heights Select FIA
- NUNN INTRODUCES BILL TO CUT RED TAPE, GIVE IOWANS CLEARER INSURANCE INFORMATION
- NAIC working group pressed to accelerate annuity illustration overhaul
- State Auditor James Brown Kicks Off Life Insurance Awareness Month With Policy Locator Tool
- Wink: Annuity sales post strong Q2, led by MYGAs and structured products
More Annuity NewsHealth/Employee Benefits News
Life Insurance News