Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Q3 2014 Earnings Presentation
23 slides from Sonida Senior Living's earnings presentation, Nov 4, 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 IN. 2,247 TX. 3,720 OH. 2,060 Owned 58% Leased 42% Capital Senior Living operates 116 communities in geographically concentrated regions with the capacity to serve 15,100 residents Number of residents by State Greater than 2,000 500 - 2,000 Less than 500 AR. AZ. IA. IL. KS. LA. MI
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 Independent Living – 51% of Resident Capacity Average 115 units per IL community with large common areas and amenities Supportive services, wellness programs, social, recreational and educational events Average monthly rate of $2,422 100% private pay Av
Slide 8: The Capital Advantage: Senior Living Options (Assisted Living)
8 The Capital Advantage: Senior Living Options Assisted Living- 49% of Resident Capacity Average 68 units per community 75% of communities offer AL Assistance with activities of daily living including medication reminders, bathing, dressing and grooming Average monthly rate of $4,020 Substantially a
Slide 9: The Capital Advantage: Need Driven Demand
9 The Capital Advantage: Need Driven Demand U.S. population 75+ years old is estimated to be 12% of the population by 2030 compared to 6% in 2012 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
Slide 10: The Capital Advantage: Limited New Supply
10 The Capital Advantage: Limited New Supply Source: NIC MAP Trends All Markets Q3 14 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Absorption Inventory Growth
Slide 11: The Capital Advantage: Senior Housing Occupancy Trends
11 The Capital Advantage: Senior Housing Occupancy Trends Source: NIC MAP Trends All Markets Q3 14 86.0% 87.0% 88.0% 89.0% 90.0% 91.0% 92.0% IL Communities AL Communities
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
14 2014 Business Plan 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 $11.8M 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 Q3 2014 (1) Planned IL to AL Conversions Occupancy After Conversions Stabilize IL AL Total Total Units 5,775 5,341 11,116 Occupied Units 4,944 4,816 9,760 Occupancy % 90.2% 87.8% IL AL Units (360) At 90% Stabilized Occupancy IL AL Total Total Units 5,415 5,701 11,
Slide 17: Canton Regency Remodel Concepts
17 Canton Regency Remodel Concepts Existing Atrium Concept Atrium Concept Bistro Concept Internet Cafe
Slide 18: 2014 Business Plan: External Growth
18 2014 Business Plan: External Growth 2011 2012 2013 Q3 14 YTD Combined Strategic acquisitions of high quality senior living communities to enhance geographic concentrations – 16.4% 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 has increased at an 18.0% CAGR on a 15.2% CAGR in revenue since the beginning of 2010. EBITDAR margin increased from 29.9% in Q1 2010 to 35.6% in Q3 2014. * As adjusted in press releases 24.0% 26.0% 28.0% 30.0% 32.0% 34.0% 36.0% 38.0% $0.0
Slide 20: Comparative Operating Metrics
20 Comparative Operating Metrics Q3 14 Q3 13 % Increase Note: EBITDAR and CFFO are as adjusted in press releases. Total Revenues $ 98.5 $ 88.0 11.9% Adjusted EBITDAR $ 33.5 $ 29.3 14.4% % Margin 35.6% 35.2% Adjusted CFFO $ 11.1 $ 8.9 24.0% Adjusted CFFO Per Share $ 0.39 $ 0.32
Slide 21: Balance Sheet
21 Balance Sheet ASSETS LIABILITIES & EQUITY As of September 30, 2014 (in millions) Cash and Securities $ 39.3 Other Current Assets 25.5 Total Current Assets 64.8 Fixed Assets 774.2 Other Assets 40.8 TOTAL ASSETS $ 879.8 Current Liabilities $ 90.2 Long-Term Debt 587.3 Other Liabilities 58.8 Total Li
Slide 22: Investment Highlights
22 Investment Highlights Value leader in geographically concentrated regions Substantially all private pay 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
Slide 23: Capital Senior Living
Capital Senior Living Company Presentation
Capital Senior Living — Q3 2014 Earnings Presentation on 6ix