Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Investor Presentation (June 2010)
20 slides from Sonida Senior Living's investor presentation, Jun 1, 2010
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 10,000 residents 58 of these communities are owned or leased with resident capacity of 8,700 Achieved 95% approval rating in 2009 residents' satisfaction survey Owned Leased Joint Ventur
Slide 4: 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: 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 - 26% 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: Established Operating Platform (Resident Capacity by State)
The Capital Advantage: Established Operating Platform (Resident Capacity by State) CA. 407 AR. 321 AZ. 189 CT. 178 FL. 182 IA. 122 IL. 648 IN. 1,227 KS. 169 LA. 136 MI. 346 MN. 176 MO. 348 MS. 143 NC. 463 SC. 436 NE. 596 NJ. 98 NY. 387 OH. 1,228 OK. 143 TX. 2,088 VA. 153
Slide 8: 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: 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: Competitive Strengths
The Capital Advantage: Competitive Strengths Experienced on-site, regional, and corporate management Larger company economies of scale and systems that yield operating efficiencies in highly fragmented industry Strong institutional relationships (debt and equity) with flexible ownership structures N
Slide 11: Strategy
The Capital Advantage: Strategy Maximize the value of our operations. Enhance geographic concentration and maximize competitive strengths within each of our markets Increase levels of care through conversions to AL or MC units, acquisition of communities with levels of care and expansion of ancillar
Slide 12: 2010 Business Plan
2010 Business Plan Increase occupancy and rate Expense Management External Growth JV Acquisitions Leases Direct acquisitions into Company This 2010 Business Plan is focused on operations, growth and enhancing shareholder value.
Slide 13: 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 Seven communities are owned with joint venture partners Co-invest with joint venture partners to participate in economics: 10% Capit
Slide 14: 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 15: 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 16: Income Statement: Q1 Comparison
Income Statement: Q1 Comparison (in millions, except per share) 2010 2009 Resident & Health Care Revenue $42.9 $42.6 Other Revenue 5.0 5.4 Total Revenues $47.9 $48.0 Operating Expenses 26.3 26.0 General & Administrative Expenses 3.0 3.0 Other Expense 4.3 4.7 EBITDAR $14.3 $14.3 Lease Expense 6.4 6.4
Slide 17: Balance Sheet Strength
Since 2006, CSU has significantly strengthened its balance sheet Reduced total mortgage debt by $75.0 million Refinanced or retired $162 million of variable rate debt Reduced average interest rate from 7.5% to 6.0% fixed No mortgage maturities through July 2015 on all fixed rate debt Balance Sheet S
Slide 18: Balance Sheet
Balance Sheet ASSETS ASSETS Cash and Securities $ 35.8 Other Current Assets 14.6 Total Current Assets 50.4 Fixed Assets 298.8 Other Assets 28.7 TOTAL ASSETS $377.9 As of March 31, 2010 (in millions) LIABILITIES & EQUITY LIABILITIES & EQUITY Current Liabilities $ 29.4 Long-Term Debt 173.0 Other Liabi
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 — Investor Presentation (June 2010) on 6ix