Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Q2 2020 Earnings Presentation
16 slides from Sonida Senior Living's earnings presentation, Sep 1, 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: Operational & Financial Highlights for Q2 2020
Operational & Financial Highlights for Q2 2020 • Due primarily to the impacts of COVID-19, same-community occupancy declined 230 bps in the second quarter of 2020 as compared to the first quarter of 2020, significantly outperforming public peers which reported an average decline of approximately 450
Slide 4: Q2 Same Store Peer Performance Comparisons
Q2 Same Store Peer Performance Comparisons Occupancy Revenue Q2 20 Q1 20 B / (W) bps Q2 20 Q1 20 B / (W) % CSU 77.6% 79.9% (230) CSU $ 98,900 $ 101,600 $ (2,700) (2.7%) Welltower 82.7% 86.8% (410) Welltower $ 651,467 $ 701,533 $ (50,066) (7.1%) HCP 79.1% 84.6% (550) HCP $ 93,923 $ 101,423 $ (7,500)
Slide 5: Resident and Employee Health is Priority #1
Resident and Employee Health is Priority #1 Strong Operational Response to COVID-19 Real-Time Changes to Operating Model • Expanded our supply network and fortified community supply stock of masks, gowns, gloves, face shields, sanitizer and other critical items through eight regional supply hubs • D
Slide 6: Capital Senior Living at a Glance
Capital Senior Living at a Glance 124 12,000+ 30+ $442MM 6,600+ Communities Residents Year 2019 Revenue Employees 63% Owned Served History 15+ Communities 23 5 - 14 Communities • Dallas-based Capital Senior Living is one of the nation’s largest States < 5 Communities operators of independent living,
Slide 7: 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 solid near- and long-term growth Reduce Leverage and Improve Liquidity FINANCIAL EXIT LEASES RESET DEBT RIG
Slide 8: Strong Operator of Trusted Senior Living Communities
Strong Operator of Trusted Senior Living Communities Total # of Communities Operated Occupancy % 129 129 129 126 • Historical Revenue and NOI 121 88 88 113 117 87 87 87 growth largely through 101 86 85 acquisition. 84 77 83 83 • In 2014, the company began 80 converting assets from independent living
Slide 9: CSU Enjoys Economies of Scale in a Highly-Fragmented Market
CSU Enjoys Economies of Scale in a Highly-Fragmented Market During the last 18 months, as a “top ten” operator, Capital Senior Housing Operators (by Units) Senior Living has executed numerous operational upgrades 15.7% to 3.2% • Implement broad operational best practices Top 10 • Establish portfolio
Slide 10: Market Forces: Aligning Strategy with Key Needs
Market Forces: Aligning Strategy with Key Needs Growth in target demographics Rise in dementia and other Macroeconomic conditions and Growth in Population by Select Cohorts conditions requiring constant care target demographic access to 10.00% & monitoring individual wealth 8.00% Yield Curve for U.S
Slide 11: Real Estate Ownership a Key Differentiator
Real Estate Ownership a Key Differentiator Ownership Evolution Real Estate Ownership Provides Flexibility and Opportunities 124 Total Value derived from owned real estate while capturing full Properties benefit from operations 77 Total Properties • Stronger margin profile • Financed with attractive
Slide 12: Balance Sheet as of June 30, 2020
Balance Sheet as of June 30, 2020 Assets ($ in millions) Liabilities & Equity ($ in millions) Cash and Securities $ 28.8 Current Liabilities $ 317.6 * Other Current Assets 22.7 Long-Term Debt 690.5 Total Current Assets 51.5 Other Liabilities 0.6 Fixed Assets 895.1 Total Liabilities 1,008.7 Other Ass
Slide 13: Debt Maturities
Debt Maturities • Average duration of debt is 5.5 years $297,790 • Approximately 81% of all debt matures in 2024 and after. $156,681 $119,163 $82,992 $38,038 $10,691 $0 2020 2021 2022 2023 2024 2025 2026 & After $ in thousands Note: Excludes $216.3 million of debt associated with 18 communities in p
Slide 14: All NNN Leases Terminate On or Before 12/31/2020
All NNN Leases Terminate On or Before 12/31/2020 CSU Portfolio • Master lease with 10/31/20 • Master lease terminates on • Master leases terminate on Owned Leased maturity date terminates on or 12/31/20 12/31/20 before such date (one community transitioned on 1/15/20, others • Rent reduced to 75% of
Slide 15: Strong and Experienced Leadership
Strong and Experienced Leadership Kim Lody Carey Hendrickson Brandon Ribar Mike Fryar David Brickman Jeremy Falke Chief Executive Officer, President Executive VP Executive VP Senior VP Senior VP Senior VP and Director Chief Financial Officer Chief Operating Officer Chief Revenue Officer General Coun
Slide 16: Investment Rationale
Investment Rationale 30-years of experience caring Solid strategy, structure, for seniors standards and focus Significant opportunity for near- Sizeable, fragmented term operational improvement markets with unmet needs and long-term growth Owner-operator model Top talent and emerging culture of prov
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