Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Q2 2018 Earnings Presentation
25 slides from Sonida Senior Living's earnings presentation, Jul 31, 2018
Slide 1: Capital Senior Living: A Leading Pure-Play Senior Housing Owner-Operator
Capital Senior Living A Leading Pure-Play Senior Housing Owner-Operator 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 is a financial valuation measure and Adjusted Net Income/(Loss) and Adjusted CFFO are financial performance measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures may have ma
Slide 4: Capital Senior Living Investment Rationale
Capital Senior Living Investment Rationale Attractively Positioned in the Highly Fragmented Senior Housing Market Focus on Real Estate Ownership Track Record of Strong Growth and Uniquely Positioned for Continued Success Twenty-eight year history of managing well in good and challenging times CSU ha
Slide 5: Attractively Positioned in the Highly Fragmented Senior Housing Market
Attractively Positioned in the Highly Fragmented Senior Housing Market 1
Slide 6: Top-10 Operator and Pure-Play Senior Housing Company
Top-10 Operator and Pure-Play Senior Housing Company Portfolio Mix (Average Units) As of June 30, 2018 AR. 173 AZ. 189 CT. 238 FL. 429 IA. 122 IL. 762 IN. 2,440 MI. 173 MN. 173 MO. 662 MS. 143 NC. 457 SC. 683 NE. 650 NJ. 98 NY. 603 OH. 2,372 TX. 3,990 VA. 455 CA. 408 CA. 408 AZ. 189 Resident Capacit
Slide 7: One of the Largest Senior Housing Owners by Percentage of Ownership
One of the Largest Senior Housing Owners by Percentage of Ownership Ownership Evolution Advantages to Real Estate Ownership Ownership of 10 Largest US Senior Housing Operators Value derived from owned real state and capture full benefit from operations Stronger margin profile Financed with attractiv
Slide 8: Pure-Play Private-Pay Senior Housing Model Similar to Multi-Family and Lodging
CSU’s Pure-Play Private-Pay Senior Housing Model has Many Similarities to the Multi-Family and Lodging Sectors, While Historically Providing Investors with Higher Returns Key Housing Sector Drivers Benchmarking the Housing Sector Senior Housing Yields Consistent High Investment Returns NCREIF Annual
Slide 9: The Senior Living Market Offers Attractive Long Term Fundamentals
The Senior Living 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% of the As
Slide 10: Limited Exposure to Top MSAs with Highest Levels of Construction
CSU Has Limited Exposure to the Top 10 MSAs with the Highest Levels of Construction Source: NIC MAP Data Service data as of 6/30/2018. Senior Housing Construction vs. Inventory Across the U.S. Top 10 Highest Construction in MSAs Total CSU communities in top 10 highest construction MSAs (~5.0% of tot
Slide 11: Focus on Real Estate Ownership
Focus on Real Estate Ownership 2
Slide 12: Long-Term Sustainable Growth Strategy with Focus on Real Estate Ownership
Executing a Long-Term, Sustainable Growth Strategy with a Focus on Real Estate Ownership Conversions Core Organic Growth Real Estate Ownership
Slide 13: Core Organic Growth Driven by Occupancy, Pricing and Cost Containment
Core Organic Growth Driven by Occupancy, Pricing Improvements and Cost Containment Core Organic Growth Occupancy and Average Monthly Rent Trends Average Rent Occupancy % New sales organization restructure and metric-driven growth plans Increase market and in-house rents and level of care charges Pro
Slide 14: Company Transformation Provides Strong Foundation for Growth
Company Transformation Provides Strong Foundation for Sustainable and Predictable Growth New Leadership in Operations, Human Resources, Sales and Marketing Restructure of our Sales and Marketing Organization Move to a more Centralized Operating Platform Rebasing of Expenses Scale Initiatives Impleme
Slide 15: Strategic Focus Areas
Strategic Focus Areas Shift to a consistent operating model Centralize functions to create economies of scale Implemented a front-end procurement platform to reduce costs and centralize certain Account Payable functions Negotiating national contracts across several cost categories Implement a common
Slide 16: AL is a Lower Cost Alternative for Post-Acute Care
AL is a Lower Cost Alternative for Post-Acute Care Acute Care Post-Acute Care Continuum Hospital $2,271/day Long-Term Care Hospital $1,512/day Inpatient Rehab Facility $1,456/day Skilled Nursing Property $508/day Home w/ Home Health Care $145/day Assisted Living $150/day Sources: 1999 - 2015 AHA Ann
Slide 17: Upholding Highest Standards of Core Pillars to Improve Resident Experience
Quality Uphold Highest Quality Standards Reduce Variation/Enhance Safety Service Maintain a Family-Centered Culture Implement Best Practices in Family Experience People Engage Colleagues Cultivate Talent Growth Serve New Residents Cost Move to Centralization/Standardization The Capital Operating Sys
Slide 18: CSU Received Top Scores in Resident Satisfaction
J.D. Power, a global marketing information company, recognized Capital Senior Living as one of the top senior living providers in the nation in their 2018 Senior Living Satisfaction Study The most important factors of satisfaction included: Community staff Convenient location Food and beverage Room,
Slide 19: Increasing Owned Portfolio Provides Increased Financial Flexibility
Increasing Owned Portfolio Provides Increased Financial Flexibility CSU achieved on average a 43.0% increase in property value over a 3 year period at communities on which it executed supplemental loans in 2015 through 2017, which provided financial flexibility through $73.4mm of proceeds for re-dep
Slide 20: Conversions Drive Significant Improvements in Key Financial Metrics
Conversions Drive Significant Improvements in Key Financial Metrics Revenue and NOI Growth – 2Q18 vs. 2Q14 (Period prior to Conversions)(1) Represents the 400 units with conversions completed as of 2Q15. Represents when the units are completed. Actual contributions of Revenue, EBITDAR and CFFO will
Slide 21: Track Record of Strong Growth and Uniquely Positioned for Continued Success
Track Record of Strong Growth and Uniquely Positioned for Continued Success 3
Slide 22: Strategy and Execution Can Deliver Strong Growth
Strategy and Execution Can Deliver Strong Growth Revenue (1) Adjusted EBITDAR Adjusted CFFO (2) Note: $ in millions. Excludes community reimbursement revenue and management services revenue. (2)Excludes prepaid resident rent and tax savings related to cost segregation studies in 2012 and 2013. ($ In
Slide 23: Balance Sheet as of June 30, 2018
Balance Sheet as of June 30, 2018 Assets Cash and Securities $ 24.3 Other Current Assets 31.6 Total Current Assets 55.9 Fixed Assets 1,079.8 Other Assets 17.9 Total Assets $ 1,153.6 Liabilities & Equity Current Liabilities $ 82.1 Long-Term Debt 930.0 Other Liabilities 72.0 Total Liabilities 1,084.1
Slide 24: Debt Maturities
Debt Maturities Average duration of debt is 5.8 years, with approximately 93% of all debt maturing in 2021 and after ($ In thousands) Attractive fixed rate non-recourse mortgage loans
Slide 25: Capital Senior Living Investment Rationale
Capital Senior Living Investment Rationale Attractively Positioned in the Highly Fragmented Senior Housing Market Focus on Real Estate Ownership Track Record of Strong Growth and Uniquely Positioned for Continued Success Twenty-eight year history of managing well in good and challenging times CSU ha
Capital Senior Living — Q2 2018 Earnings Presentation on 6ix