Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Investor Presentation (February 2016)
27 slides from Sonida Senior Living's investor presentation, Feb 25, 2016
Slide 1: Executing a Clear, Differentiated Strategy to Drive Superior Shareholder Value
Capital Senior Living Executing a Clear, Differentiated Strategy to Drive Superior Shareholder Value Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements The forward-looking statements in this presentation 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 complete the refinancing of certain of our wholly owned comm
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDAR, Adjusted EBITDAR Margin, Adjusted Net Income and Adjusted CFFO are financial measures of operating performance that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures may have materia
Slide 4: Table of Contents
Table of Contents Executive Summary Key Investment Highlights Attractive Positioning in the Healthcare Real Estate Market Compelling Strategy to Drive Shareholder Value Accomplished Leadership Team Focused on Execution Track Record of Strong Growth and Uniquely Positioned for Continued Success Concl
Slide 5: Executive Summary
Executive Summary Need-driven demand, limited competitive new supply and an improving housing market and economy Highly fragmented industry with significant opportunities for a scale player Operating in metro areas with supportive supply and demand dynamics; protected by barriers to entry Straight f
Slide 6: CSU Key Investment Highlights
CSU Key Investment Highlights Value leader in geographically concentrated regions Highest percentage of wholly-owned communities among top operators Straight-forward private pay business model Need-driven demand, limited competitive new supply and improving housing market and economy Experienced man
Slide 7: CSU Has Significantly Outperformed a Broad Peer Group
CSU Has Significantly Outperformed a Broad Peer Group, Including Through Recent Market Dislocation Source: FactSet as of February 10, 2016. Note: GEN data begins 5/15/2007 and SEM data begins 9/25/2009. (1)A part of Post-Acute Index. CSU S&P500 HLS SEM KND BKD FVE GEN Total Shareholder Return (1) (1
Slide 8: Attractive Positioning in the Healthcare Real Estate Market
Attractive Positioning in the Healthcare Real Estate Market 1
Slide 9: The Healthcare Real Estate Market Offers Attractive Long Term Fundamentals
The Healthcare Real Estate Market Offers Attractive Long Term Fundamentals... U.S. population 75+ years old is expected to increase from ~6% of total current population to 12% by 2030 Current penetration rate implies demand growth of ~40K units per annum 75% of the Independent Living market and 63%
Slide 10: A Highly Constructive Current Operating Environment
Observations …and a Highly Constructive Current Operating Environment Estimated 70% of Americans who reach age 65 will need some form of long-term care in their lives for an average of three years Occupancy across the industry continues to strengthen while rents stabilize near 5-year highs Source: W
Slide 11: Best-In-Class Shareholder Returns and Premium Valuation
Best-In-Class Shareholder Returns and Premium Valuation Last Five Years Total Shareholder Returns AEV / 2016E EBITDAR CSU has delivered a total shareholder return of +123% over the last five years, significantly exceeding returns of the S&P 500 (+40%) and key peers (which delivered negative returns
Slide 12: Compelling Strategy to Drive Shareholder Value
Compelling Strategy to Drive Shareholder Value 2
Slide 13: CSU Benefits from Multiple Avenues for Growth
CSU Benefits from Multiple Avenues for Growth Core Organic Growth Conversions Accretive Acquisitions Occupancy improvement where opportunity exists Increasing average rents through level of care charges, markets rents and in-house rent increases Proactive expense management Cash flow enhancing renov
Slide 14: Core Organic Growth Driven by Occupancy, Pricing Improvements and Cost Containment
Core Organic Growth Driven by Occupancy, Pricing Improvements and Cost Containment Increasing Occupancy and Average Monthly Rent Trends Rent Management Initiatives Expense Management Initiatives Focus on occupancy improvement through marketing and price initiatives at communities with occupancy belo
Slide 15: Conversions Drive Significant Occupancy Improvements and CFFO per Share Accretion
Conversions Drive Significant Occupancy Improvements and CFFO per Share Accretion History of Driving Significant Occupancy Improvements Through Accretive Conversions Recently Completed an Additional 400 Conversions and Identified 300 Incremented Units for Conversion Occupancy CFFO per Share Accretio
Slide 16: Track Record of Executing Highly Accretive Acquisitions
Track Record of Executing Highly Accretive Acquisitions and a Robust Pipeline for the Future Year 1 Cash-On-Cash Returns With a positive reputation among sellers and ability to offer certainty of closing, CSU is able to source the majority of its acquisitions on a bilateral basis Pipeline allows for
Slide 17: Accomplished Leadership Team Focused on Execution
Accomplished Leadership Team Focused on Execution 3
Slide 18: CSU's Experienced and Accomplished Management Team
CSU’s Experienced and Accomplished Management Team has Delivered the Company’s Leading Results… Larry Cohen Chief Executive Officer Served as CEO since May 1999 and CFO from November 1996 to May 1999 From 1991 to 1996, Mr. Cohen was President and CEO of Paine Webber Properties Inc. Founding member a
Slide 19: Highly Qualified and Engaged Board of Directors
Highly Qualified and Engaged Board of Directors With Unmatched Industry Experience CSU has best-in-class Board composition Board Member Affiliation Notable Experience Lawrence A. Cohen CEO and Vice Chairman · CEO and Vice Chairman of Capital Senior Living · Founding member and Chairman of the Americ
Slide 20: Track Record of Strong Growth and Uniquely Positioned for Continued Success
Track Record of Strong Growth and Uniquely Positioned for Continued Success
Slide 21: Strategy and Execution Have Delivered Strong Growth
Strategy and Execution Have Delivered Strong Growth Revenue (1) Adjusted EBITDAR ($ In Millions) ($ In Millions) Adjusted EBITDAR Margin Adjusted CFFO per Share (2) 20.7% CAGR 15.8% CAGR 15.9% CAGR Excludes community reimbursement revenue and management services revenue. (2)Excludes prepaid resident
Slide 22: Healthy Balance Sheet to Support Future Initiatives
Healthy Balance Sheet to Support Future Initiatives Assets Cash and Securities $ 56.1 Other Current Assets 41.2 Total Current Assets 97.3 Fixed Assets 890.6 Other Assets 31.1 Total Assets $ 1,019.0 Liabilities & Equity Current Liabilities $ 70.5 Long-Term Debt 754.9 Other Liabilities 57.9 Total Liab
Slide 23: Availability of Attractive Financing for Growth Initiatives
Debt Maturities Weighted Average Interest Rate CSU has ample financial capacity to pursue all initiatives contemplated under its growth strategy No near term debt maturities Acquisitions typically financed at 75% LTV Renewed $10 million share repurchase authorization underscores commitment to shareh
Slide 24: Strategy Poised to Deliver ~50% EBITDAR Growth and 20%+ CFFO per Share Growth
Strategy Poised to Deliver ~50% EBITDAR Growth and 20%+ CFFO per Share Growth CAGR: 20%+ Note: This chart illustrates the potential financial impact of successful execution of our strategic plan; it is not intended as financial guidance. Please see Capital Senior Living’s disclosure related to forwa
Slide 25: Conclusion
Conclusion R the difference
Slide 26: CSU has a Clear and Differentiated Strategy to Drive Industry-Leading Growth
CSU has a Clear and Differentiated Strategy to Drive Industry-Leading Growth and Superior Shareholder Value Need-driven demand, limited competitive new supply and an improving housing market and economy Highly fragmented industry with significant opportunities for a scale player Operating in metro a
Slide 27: CSU Key Investment Highlights
CSU Key Investment Highlights Value leader in geographically concentrated regions Highest percentage of wholly-owned communities among top operators Straight-forward private pay business model Need-driven demand, limited new supply and improving housing market and economy Experienced management team
Capital Senior Living — Investor Presentation (February 2016) on 6ix