Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Q3 2020 Earnings Presentation
28 slides from Sonida Senior Living's earnings presentation, 2020
Slide 1: Capital Senior Living
Capital Senior Living A Leading Owner-Operator of Senior Living Communities and Services
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
Forward-Looking Statements & Non-GAAP Financial Measures Forward Looking Statements: The forward-looking statements in this presentation The forward-looking statements in this release are subject to certain risks and uncertainties that could cause the Company’s actual results and financial condition
Slide 3: Table of Contents
Table of Contents Sections Pages I. Company Overview 4 II. 3Q 2020 Highlights 5 III. COVID-19 Update 10 IV. Strategy Update 14 V. 3Q Financials 25 3
Slide 4: Capital Senior Living at a Glance
Capital Senior Living at a Glance 119 9,000+ 30+ $442MM 5,600+ Communities Residents Year 2019 Revenue Employees 66% Owned Served History 15+ Communities 22 5 - 14 Communities • Dallas-based Capital Senior Living is one of the nation’s largest States < 5 Communities operators of independent living,
Slide 5: 3Q 2020 Highlights
3Q 2020 Highlights D|ISGOVER thedifference
Slide 6: Summary of 3Q 2020 Same Store Operating Results
Summary of 3Q 2020 Same Store* Operating Results • YTD Revenue at 97% of last year. • YTD 2020 rates increased 1.3% vs. 2019. 3Q20 rates increased 0.6% over 3Q19. • YTD NOI margin remains strong at 32%. • Occupancy declined 190 bps in 3Q20 compared to 2Q20 due to the impacts of COVID-19. Occupancy •
Slide 7: 2020 Same Store Volume Statistics
2020 Same Store* Volume Statistics • 3Q20 move-ins significantly improved to 87% of prior year; communities are recovering • Highest COVID impact in April • In person tours have been limited due to COVID and state regulations • August & September move-outs elevated after several months below normal
Slide 8: Decelerating Declines in Same Store Month-End Occupancy
Decelerating Declines in Same Store* Month-End Occupancy 83.0% 2 bps (40) bps 82.6% 82.6% 82.0% 82.2% (151) bps 81.0% 24 bps 80.7% (93) bps 80.0% 80.0% (89) bps 79.8% 79.0% (83) bps 79.1% 78.0% 78.3% (72) bps 77.6% 77.0% 76.0% 75.0% JAN 20 FEB 20 MAR 20 APR 20 MAY 20 JUN 20 JUL 20 AUG 20 SEP 20 *Sam
Slide 9: Improving Labor Statistics
Improving Labor Statistics Workforce stability, consistency and confidence have been key to successful management during the COVID-19 pandemic. 9.6 Total Employee Turnover ppts September YTD YoY 5.3 Community Leadership Turnover ppts September YTD YoY 20 Average time from job posting to hire days Se
Slide 10: COVID-19 Update
10 A DISCOVER the difference
Slide 11: COVID Update
COVID Update • 100% of Capital Senior Living Communities are currently accepting new residents • Active cases remain low due to implementation of consistent and robust safety protocols. • All communities remain in high alert with COVID precautions and CDC guidelines in place New COVID Cases Trailing
Slide 12: COVID Response: Acting to Keep Residents Safe
COVID Response: Acting to Keep Residents Safe Foundation of CSL COVID-19 Response Multi-disciplinary COVID-19 task force Enhanced compensation to reward front line Regional staffing support for deployment in workers high-risk situations Multiple procurement partners ensures stable PPE supply chain f
Slide 13: COVID-19 Transition Plan
COVID-19 Transition Plan This outlines our policies as we begin easing some of the heightened safety measures and restrictions put in place to limit the spread of COVID-19. Each community will also have its own individualized Transition Plan depending on state and local mandates, trends in COVID-19
Slide 14: Strategy Update
Strategy Update 14
Slide 15: 2019-2021 Strategy
2019-2021 Strategy Financial and Operational Strategy designed to focus the organization on specific actions to improve the Company’s performance and position the Company’s owned portfolio for near- and long-term growth Reduce Leverage and Improve Liquidity FINANCIAL EXIT LEASES RESET DEBT RIGHTSIZE
Slide 16: Significant Actions since 2019 to Improve Operational Performance and Financial Foundation
Significant Actions since 2019 to Improve the Company’s Operational Performance and Financial Foundation March 2020 • Reached agreements with all 3 landlords resulting in 25% rent reduction for 2020 effective Feb 1 and the early termination of all master leases by 12/31/20 January & February 2019 •
Slide 17: Exiting Underperforming NNN Leases to Focus on Core Owned Portfolio
Exiting Underperforming NNN Leases to Focus on Core Owned Portfolio • Master lease with 10/31/20 maturity • Master lease terminates on 12/31/20 • Master leases terminate on 12/31/20 date terminates on or before such date (one community transitioned on • Rent reduced to 75% of contractual • Rent redu
Slide 18: Reduced Financial Obligations, Stabilized Balance Sheet
Reduced Financial Obligations, Stabilized Balance Sheet In 2Q20, the Company entered into short-term debt forbearance agreements with several of its lenders to help mitigate the impact of the COVID-19 pandemic. • Fannie Mae: • The Company made reduced “net cash flow” payments April through July 2020
Slide 19: Transitioning to a More Focused Platform
Transitioning to a More Focused Platform Today1 Post Transitions2 Resident Revenue by State Post Transitions Remaining, Texas, 23% Communities 95 68 29% 61 Owned 60 Owned 34 Leased 0 Leased 0 Managed 8 Managed States 20 16 Transition Units 8,920 5,634 ~6 Months Indiana, Ohio, 22% 16% 3Q 20Occupancy
Slide 20: Continuing Owned Communities Occupancy Has Outperformed the Remainder of the Portfolio
Continuing Owned Communities Occupancy has Consistently Outperformed the Remainder of the Portfolio Continuing Owned (60) Continuing Managed (8) Transitioning Owned (18) Transitioning Leased (38) 95.0% 89.3% 90.0% 87.7% 85.0% 85.0% 83.0% 80.0% 79.3% 75.0% 74.3% 73.5% 70.9% 70.0% 65.0% Q2 17 Q3 17 Q4
Slide 21: Continuing Owned and Managed REVPOR Upward Trend Despite Market Volatility
Continuing Owned and Managed REVPOR Upward Trend Despite Market Volatility Continuing Owned (60) Continuing Managed (8) Transitioning Owned (18) Transitioning Leased (38) $4,400 $4,255 $4,185 $4,200 $4,000 $3,800 $3,582 $3,600 $3,541 $3,548 $3,501 $3,400 $3,440 $3,268 $3,200 Q2 17 Q3 17 Q4 17 Q1 18
Slide 22: NOI Margin % Disruption Due to COVID Pandemic
NOI Margin %(1) Disruption Due to COVID Pandemic Continuing Owned (60) Continuing Managed (8) Transitioning Owned (18) Transitioning Leased (38) 45.0% 42.1% 41.3% 40.0% 35.0%37.6% 32.7% 34.4% 30.0% 29.4% 25.0% 26.6% 20.0% 15.0% 13.5% 10.0% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19
Slide 23: Continuing Owned & Managed Communities
Continuing Owned & Managed Communities Year Built / Year Built / Community City State Expanded IL AL MC Total Community City State Expanded IL AL MC Total West Shores Hot Springs AR 1987 43 90 0 133 Dayton Dayton OH 2008 101 31 18 150 Cottonwood Village Cottonwood AZ 1986 88 51 21 160 Levis Commons
Slide 24: Resizing Overhead to Fit Slimmer Organization
Resizing Overhead to Fit Slimmer Organization • Capital Senior Living will condense its community portfolio from 119 in 3Q20 to 65-70 communities in 2021 and realign operations to fit more concentrated footprint and improve Annual G&A Costs operating efficiencies. Year G&A YoY • The Company has take
Slide 25: 3Q 2020 Financials
» DISCOVER the difference
Slide 26: Same Store Financial Results 3Q 2020
Same Store* Financial Results 3Q 2020 3Q20 2Q20 3Q19 YTD 20 YTD 19 Average Occupancy 78.0% 79.9% 82.6% 80.0% 83.5% Ending Occupancy (1) 77.6% 80.0% 83.1% 77.6% 83.1% RevPOR (2) $3,731 $3,747 $3,708 $3,738 $3,697 Margin 28.7% 33.2% 32.3% 32.4% 34.5% NOI (95 Properties) (3) $22.3 $26.7 $26.3 $74.9 $85
Slide 27: Balance Sheet as of September 30, 2020
Balance Sheet as of September 30, 2020 Assets ($ in millions) Liabilities & Equity ($ in millions) Cash and Securities $ 18.3 Current Liabilities $ 344.5 * Other Current Assets 22.8 Long-Term Debt 654.4 Total Current Assets 41.1 Other Liabilities 0.6 Fixed Assets 692.7 Total Liabilities 999.5 Other
Slide 28: Capital Structure, Debt Maturities and Liquidity
Capital Structure, Debt Maturities1 and Liquidity (as of Sept 30, 2020) • As of September 30, 2020, the Company had approximately $18.3 million of cash or cash equivalents • The Company has received approximately $0.7M in state COVID-19 relief grants through September 30, 2020 • The Company expects
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