Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Q3 2009 Earnings Presentation
20 slides from Sonida Senior Living's earnings presentation, Nov 5, 2009
Slide 1: Capital Senior Living Corporation
CAPITAL SENIOR LIVING CORPORATION
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: Company Overview
Company Overview Capital Senior Living owns and/or operates 66 communities in 23 states with the ability to serve 9,800 residents 50 of these communities are owned or leased with resident capacity of 7,701 Achieved 95% approval rating in 2008 residents' satisfaction survey Owned Leased Joint Venture
Slide 4: The Capital Advantage: Senior Living Options - Independent Living
The Capital Advantage: Senior Living Options Average 131 units per IL community with large common areas and amenities Supportive services, wellness programs, social, recreational, and educational events Average monthly rate of $2,200 100% private pay Average length of resident stay is 34 months Inde
Slide 5: The Capital Advantage: Senior Living Options - Assisted Living
The Capital Advantage: Senior Living Options Average 64 units per AL community Assistance with activities of daily living such as medication reminders, bathing, dressing and grooming Average monthly rate of $3,300 96% private pay Average length of resident stay is 26 months Assisted Living - 24% of
Slide 6: Resident Demographics at CSU Communities
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: Established Operating Platform
The Capital Advantage: Established Operating Platform (Resident Capacity by State) CA. 408 AR. 315 AZ. 182 CT. 165 FL. 175 IA. 116 IL. 608 IN. 1,185 KS. 169 LA. 136 MI. 350 MN. 179 MO. 334 MS. 136 NC. 447 SC. 341 NE. 596 NJ. 98 NY. 394 OH. 1,171 OK. 136 TX. 2,037 VA. 106
Slide 8: The Capital Advantage: Favorable Demographics
The Capital Advantage: Favorable Demographics US population 75+ years old is estimated to grow by 3.8 million through 2015 Only 1.8 million units serving a population of 18.6 million seniors Current 9.6% penetration rate implies demand growth of 45,000 units per year 2007 2015 East 18.6 22.4 (Popula
Slide 9: The Capital Advantage: Favorable Supply Trends
The Capital Advantage: Favorable Supply Trends Source: 2009 ASHA/NIC Seniors Housing Construction Trends Report 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 15499 21210 23970 25228 24433 22205 13227 11202 9777 12593 11437 180
Slide 10: The Capital Advantage: Proven Track Record
The Capital Advantage: Proven Track Record Same Store Analysis for Communities Under Management Same Store Average Revenue growth of 5.3%, with 11.3% Average Net Operating Income growth since 2004 2004 2005 2006 2007 2008 Revenue 119 123.6 134.9 214.4 218.7 Net Operating Income 52.9 55.2 63.7 97.6 9
Slide 11: 2009 Business Plan
2009 Business Plan Organic growth from rate increases and cost controls and reductions Increase levels of care through assisted living conversions Procure management agreements Opportunistic acquisitions Stock repurchase program
Slide 12: Growth Initiatives: Joint Venture Acquisitions
Growth Initiatives: Joint Venture Acquisitions Joint venture partners Blackstone Real Estate Advisors GE Healthcare Financial Services Prudential Real Estate Investors Fifteen communities are owned with joint venture partners Co-invest with joint venture partners to participate in economics: 5% - 15
Slide 13: Example of Joint Venture Economics
Example of Joint Venture Economics Venture CSU Partner NOI $ 9,000,000 Cap Rate 9.0% Purchase Price $100,000,000 Debt $ 70,000,000 Equity $ 30,000,000 $3,000,000 $27,000,000 Revenues $ 27,000,000 Mgt. Fees (5%) $1,350,000 ROE (14.8%) $ 445,000 $ 4,005,000 Total First Year Return $1,795,000 $ 4,005,0
Slide 14: Growth Initiatives: Acquisition/Lease Transactions
Growth Initiatives: Acquisition/Lease Transactions Year 1 Year 2 $ Increase % Increase Revenue $25,000,000 $26,000,000 $1,000,000 4.0% Operating Expense $15,000,000 $15,300,000 $300,000 2.0% EBITDAR $10,000,000 $10,700,000 $700,000 7.0% Lease Expense $8,000,000 $8,200,000 $200,000 2.5% EBITDA $2,000
Slide 15: Capital Advantage: Financial Growth
Capital Advantage: Financial Growth Revenue and Adjusted EBITDAR ($ in millions) Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Revenue 31.5 32.1 33.9 37.1 43 46.2 Adjusted EBITDAR 8.4 8.8 9.6 10.3 11.9 13.2 Adjusted EBITDAR Margin % 0.3 0.3 0.3 0.3 0.3 0.3 2004 2005 2006 2007 2008 Revenue 93.3 105.2 159.1 189
Slide 16: Income Statement: Q3 Comparison
Income Statement: Q3 Comparison (in millions, except per share) 2009 2008 Resident & Health Care Revenue $42.8 $43.2 Other Revenue 5.3 4.5 Total Revenues $48.1 $47.7 Operating Expenses 26.7 27.3 Reimbursement expense 4.6 3.4 General & Administrative Expenses 2.5 2.4 EBITDAR $14.3 $14.6 Lease Expense
Slide 17: Since 2006, CSU has significantly strengthened its balance sheet
Since 2006, CSU has significantly strengthened its balance sheet Reduced total mortgage debt by $70.0 million Refinanced or retired $162 million of variable rate debt Reduced average interest rate from 7.5% to 6.1% fixed No significant maturities through July 2015 on all fixed rate debt Balance Shee
Slide 18: Balance Sheet
Balance Sheet ASSETS ASSETS Cash and Securities $ 30.6 Other Current Assets 18.1 Total Current Assets 48.7 Fixed Assets 302.4 Other Assets 31.3 TOTAL ASSETS $382.4 As of September 30, 2009 (in millions) LIABILITIES & EQUITY LIABILITIES & EQUITY Current Liabilities $ 32.9 Long-Term Debt 174.8 Other L
Slide 19: Investment Highlights
Investment Highlights Favorable demographics and attractive industry fundamentals Conversion initiatives with significant revenue and margin growth Strong same-store community net income growth Acquisition opportunities in highly fragmented industry Existing infrastructure results in low marginal in
Slide 20: Capital Senior Living Corporation
CAPITAL SENIOR LIVING CORPORATION
Capital Senior Living — Q3 2009 Earnings Presentation on 6ix