Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Q2 2015 Earnings Presentation
27 slides from Sonida Senior Living's earnings presentation, Aug 4, 2015
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
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 mat
Slide 4: Company Highlights
4 Company Highlights Value leader in geographically concentrated regions 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 dem
Slide 5: Company Overview
5 Company Overview • Capital Senior Living operates 119 communities in geographically concentrated regions with the capacity to serve 15,200 residents Number of residents by State Greater than 2,000 500 - 2,000 Less than 500 As of July 31, 2015 Resident Capacity By State
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 – 47% of Resident Capacity • Average 109 units per IL community with large common areas and amenities • Supportive services, wellness programs, social, recreational and educational events • Average monthly rate of $2,576 • 100% privat
Slide 8: The Capital Advantage: Senior Living Options (Assisted Living)
8 The Capital Advantage: Senior Living Options Assisted Living- 53% of Resident Capacity • Average 68 units per community • 79% of communities offer AL • Assistance with activities of daily living including medication reminders, bathing, dressing and grooming • Average monthly rate of $4,044 • Subst
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 • Only 1.3 million units serving a population of 18.9 million seniors • Current 6.9% penetration rate implies demand growth of 40,000 units per year U.S.
Slide 10: The Capital Advantage: Limited New Supply
10 The Capital Advantage: Limited New Supply Source: NIC MAP Trends Senior Housing All Markets
Slide 11: The Capital Advantage: Senior Housing Occupancy Trends
11 The Capital Advantage: Senior Housing Occupancy Trends Source: NIC MAP Trends All Markets Q2 15
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 reputatio
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 and value of our communities and our operations • Capitalize on the fragmented nature of the senior living industry to strategically aggregate l
Slide 14: 2015 Business Plan
14 2015 Business Plan Focused on operations, marketing and growth to enhance shareholder value through: Organic growth, including the conversion of units to higher levels of care and community renovations and refurbishment projects Proactive expense management Accretive acquisitions Utilization of t
Slide 15: 2015 Business Plan: Organic Growth
15 2015 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 $0.06 per share of CFFO • Convert units to higher levels of care • Cash flow value enhancing renovations and
Slide 16: Conversions: Significant Increases in Occupancy, Revenue and CFFO
16 Conversions: Significant Increases in Occupancy, Revenue and CFFO Occupancy Prior to Conversions (1) Planned IL to AL Conversions Occupancy After Conversions Annual Financial Impact IL AL Total Total Units 6,192 5,434 11,626 Occupied Units 5,287 4,869 10,156 Occupancy % 85.4% 89.6% 87.4% IL AL Va
Slide 17: Significant Occupancy Improvement after Conversion
17 Significant Occupancy Improvement after Conversion Number of Units Converted Occupancy prior to Conversion Occupancy at end of Q2 15 Third Quarter 2014 Conversions Waterford at Edison Lakes 69.0% 92.2% Waterford at Mansfield 84.5% 94.0% Autumn Glen 56.3% 81.6% Summit Point 95.4% 94.0% Fourth Quar
Slide 18: The Waterford at Thousand Oaks - Renovations
18 The Waterford at Thousand Oaks - Renovations New Entry Hall New Dining Room Old Entry Hall Old Dining Room
Slide 19: The Waterford on Huebner - Renovations
19 The Waterford on Huebner - Renovations New Entry Hall New Dining Room Old Entry Hall Old Dining Room
Slide 20: Community Portfolio Growth: 2010 to Present
20 Community Portfolio Growth: 2010 to Present 25 32 48 59 67 65 69 2010 2011 2012 2013 2014 Q1 15 Current Owned Leased Joint Venture Owned % 32.5% 38.1% 47.5% 52.7% 57.3% 56.5% 58.0%
Slide 21: 2015 Business Plan: External Growth
21 2015 Business Plan: External Growth 2011 2012 2013 2014 Jan – July 2015 Combined • Strategic acquisitions of high quality senior living communities to enhance geographic concentrations – 16.2% cash on cash returns * Based on share count at time of transaction (in millions except number of communi
Slide 22: Key Metrics: Consistent Significant Growth
22 Key Metrics: Consistent Significant Growth Revenue * Adjusted EBITDAR Adjusted EBITDAR Margin Adjusted CFFO per share ($ In Millions) ($ In Millions) $197 $257 $305 $343 $380 2010 2011 2012 2013 2014 * Excludes community reimbursement revenue and management services revenue $69 $92 $110 $120 $133
Slide 23: Comparative Operating and Financial Metrics
23 Comparative Operating and Financial Metrics Q2 15 Q2 14 % Increase Total Revenues $ 101.6 $ 93.4 8.7% Adjusted EBITDAR $ 35.7 $ 32.2 11.0% % Margin 36.8% 35.6% Adjusted CFFO $ 11.7 $ 9.6 22.3% Adjusted CFFO Per Share $ 0.41 $ 0.34 Note: EBITDAR and CFFO are as adjusted in press releases.
Slide 24: Balance Sheet
24 Balance Sheet ASSETS LIABILITIES & EQUITY • As of June 30, 2015 (in millions) Cash and Securities $ 51.7 Other Current Assets 23.8 Total Current Assets 75.5 Fixed Assets 811.1 Other Assets 35.4 TOTAL ASSETS $ 922.0 Current Liabilities $ 71.4 Long-Term Debt 660.2 Other Liabilities 55.9 Total Liabi
Slide 25: Debt Overview: 100% Mortgage Debt
25 Debt Overview : 100% Mortgage Debt Debt Maturities Weighted Average Interest Rate (In thousands ) $627,624 $0 $0 $0 $43,660 $0 $8,472 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 2021 & After 2020 2019 2018 2017 2016 2015 6.00% 5.79% 5.25% 5.25% 4.70% 4.64% 4.00% 4.50% 5.00%
Slide 26: Investment Highlights
26 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 •
Slide 27: Capital Senior Living
Capital Senior Living Company Presentation
Capital Senior Living — Q2 2015 Earnings Presentation on 6ix