Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Q2 2014 Earnings Presentation
23 slides from Sonida Senior Living's earnings presentation, Aug 5, 2014
Slide 1: Capital Senior Living Company Presentation
Capital Senior Living Company Presentation Exhibit 99.2
Slide 2: Forward-Looking Statements
2 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 co
Slide 3: Non-GAAP Financial Measures
3 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 mater
Slide 4: Investment Highlights
4 Investment Highlights Value leader in providing quality seniors housing and care at reasonable prices Well positioned to make meaningful gains in shareholder value Substantially all private pay with strong cash flow generation Industry benefits from need-driven demand, limited new supply and impro
Slide 5: Company Overview
5 Company Overview Owned 57% Capital Senior Living operates 115 communities in geographically concentrated regions with the capacity to serve 15,000 residents Resident Capacity By State Property Ownership Structure Number of residents by State Greater than 2,000 500 - 2,000 Less than 500 Leased 43%
Slide 6: Resident Demographics at CSU Communities
6 Resident Demographics at CSU Communities Average age of resident: 85 years Average age of resident moving in: 82 years Average stay period: 2-3 years Percent of female residents: 80% Resident turnover is primarily attributed to death or need for higher care
Slide 7: The Capital Advantage: Senior Living Options (Independent Living)
7 The Capital Advantage: Senior Living Options Average 113 units per IL community with large common areas and amenities Supportive services, wellness programs, social, recreational and educational events Average monthly rate of $2,454 100% private pay Average length of resident stay is 31 months Ind
Slide 8: The Capital Advantage: Senior Living Options (Assisted Living)
8 The Capital Advantage: Senior Living Options Assisted Living- 49% of Resident Capacity Average length of resident stay is 24 months Substantially all private pay Average monthly rate of $3,940 Assistance with activities of daily living including medication reminders, bathing, dressing and grooming
Slide 9: The Capital Advantage: Need Driven Demand
9 The Capital Advantage: Need Driven Demand Source: 2010 Census Summary File 1 and U.S. Census Bureau, Population Division U.S. Seniors Population Trends (75+ years old) 15,000 17,500 20,000 22,500 25,000 27,500 30,000 32,500 35,000 2010 2015 2020 2025 2030 Current 6.9% penetration rate implies dema
Slide 10: The Capital Advantage: Limited New Supply
10 The Capital Advantage: Limited New Supply Source: NIC MAP Trends All Markets Q2 14
Slide 11: The Capital Advantage: Senior Housing Occupancy Trends
11 The Capital Advantage: Senior Housing Occupancy Trends Source: NIC MAP Trends All Markets Q2 14
Slide 12: The Capital Advantage: Competitive Strengths
12 The Capital Advantage: Competitive Strengths Value leader in geographically concentrated regions Experienced on-site, regional and corporate management Larger company economies of scale and proprietary systems that yield operating efficiencies in highly fragmented industry Solid reputation in ind
Slide 13: The Capital Advantage: Strategy
13 The Capital Advantage: Strategy Focus on our core strengths Capitalize on competitive strengths within each of our regions to maximize the cash flow generated by our communities and our operations Capitalize on the fragmented nature of the senior living industry to strategically aggregate local a
Slide 14: 2014 Business Plan
2014 Business Plan 14 Focused on Operations, marketing and growth to enhance shareholder value through: Organic growth Proactive expense Management Accretive acquisitions, unit conversions and community refurbishment projects Utilization of technology
Slide 15: 2014 Business Plan: Organic Growth
15 2014 Business Plan: Organic Growth Increase average rents Each 3% increase generates $10.8M of revenue Improve occupancies Each 1% generates $4.0M of revenue, $2.8M of EBITDAR and $0.06 per share of CFFO Convert units to higher levels of care Cash flow enhancing renovations and refurbishments New
Slide 16: Solving to Achieve 90% Occupancy
16 Solving to Achieve 90% Occupancy Q2 2014 (1) Planned IL to AL Conversions Occupancy After Conversions Stabilize IL AL Total Total Units 5,898 5,231 11,129 Occupied Units 5,036 4,689 9,725 Occupancy % 85.4% 89.6% 87.4% IL AL Units (360) At 90% Stabilized Occupancy Note: Conversions are subject to
Slide 17: Canton Regency Remodel Concepts
17 Canton Regency Remodel Concepts Concept Atrium Existing Atrium Concept Bistro Concept Internet Cafe
Slide 18: 2014 Business Plan: External Growth
18 2014 Business Plan: External Growth 2011 2012 2013 Q2 14 YTD Combined Strategic acquisitions of high quality senior living communities to enhance geographic concentrations – 16.3% cash on cash returns * Based on share count at time of transaction (in millions except number of communities) Purchas
Slide 19: Operating Performance
19 Operating Performance Revenue and EBITDAR growth EBITDAR increased 125.2% on an 95.0% increase in revenue EBITDAR margin increased from 29.9% in Q1 2010 to 35.6% in Q2 2014 * As adjusted in Q4 2013 earnings release
Slide 20: Comparative Operating Metrics
20 Comparative Operating Metrics Q2 14 YTD 2013 2012 % Increase (1) As adjusted in press releases Total Revenues $ 185.3 $ 350.4 $ 310.5 12.8% Adjusted EBITDAR (1) $ 62.9 $ 119.6 $ 110.0 8.7% % Margin (1) 35.1% 34.9% 35.4% Adjusted CFFO (1) $ 18.1 $ 42.6 $ 37.3 14.2% Adjusted CFFO Per Share (1) $ 0.
Slide 21: Balance Sheet
21 Balance Sheet ASSETS LIABILITIES & EQUITY As of June 30, 2014 (in millions) Cash and Securities $ 39.4 Other Current Assets 24.8 Total Current Assets 64.2 Fixed Assets 732.6 Other Assets 44.1 TOTAL ASSETS $ 840.9 Current Liabilities $ 52.8 Long-Term Debt 580.7 Other Liabilities 59.8 Total Liabili
Slide 22: Investment Highlights
22 Investment Highlights Value leader in geographically concentrated regions Substantially Need-driven demand , limited new supply and improving housing market and economy Experienced management team with demonstrated ability to operate, acquire and create shareholder value Accretive acquisitions Co
Slide 23: Capital Senior Living
Capital Senior Living Company Presentation
Capital Senior Living — Q2 2014 Earnings Presentation on 6ix