Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Q4 2014 Earnings Presentation
25 slides from Sonida Senior Living's earnings presentation, Feb 26, 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 co
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 mater
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 IN. 2,247 OH. 2,060 TX. 3,720 Company Overview MA. 68 AR. CT. FL. IA. IL. KS. LA. MI. MN. MO. MS. NC. SC. NE. NJ. NY. OK. VA. CA. Resident Capacity By State AZ. GA. WI. MA. Number of residents by State Greater than 2,000 500 - 2,000 Less than 500 Capital Senior Living operates 114 communities in g
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 – 48% of Resident Capacity Average 107 units per IL community with large common areas and amenities Supportive services, wellness programs, social, recreational and educational events Average monthly rate of $2,487 100% private pay Av
Slide 8: The Capital Advantage: Senior Living Options (Assisted Living)
8 The Capital Advantage: Senior Living Options Assisted Living- 52% of Resident Capacity Average 65 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 $3,992 Substantially a
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 Source: 2
Slide 10: The Capital Advantage: Limited New Supply
10 The Capital Advantage: Limited New Supply Source: NIC MAP Trends All Markets Q4 14
Slide 11: The Capital Advantage: Senior Housing Occupancy Trends
11 The Capital Advantage: Senior Housing Occupancy Trends Source: NIC MAP Trends All Markets Q4 14
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 reputation in ind
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 local a
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 $0.06 per share of CFFO Convert units to higher levels of care Cash flow and value enhancing renovations and refurbis
Slide 16: Solving to Achieve 90% Occupancy
16 Solving to Achieve 90% Occupancy Occupancy Prior to Conversions (1) Planned IL to AL Conversions Occupancy After Conversions Stabilize IL AL Total Total Units 6,192 5,434 11,626 Occupied Units 5,287 4,869 10,156 Occupancy % 85.4% 89.6% 87.4% IL AL Units (360) At 90% Stabilized Occupancy Note: Con
Slide 17: Canton Regency Remodel Concepts
17 Canton Regency Remodel Concepts Existing Atrium Concept Atrium Concept Bistro Concept Internet Cafe
Slide 18: Community Portfolio Growth: 2009 to Present
18 Community Portfolio Growth: 2009 to Present Owned % 37.9% 32.5% 38.1% 47.5% 52.7% 57.3% 56.1%
Slide 19: 2015 Business Plan: External Growth
19 2015 Business Plan: External Growth 2011 2012 2013 2014 2015 YTD Combined Strategic acquisitions of high quality senior living communities to enhance geographic concentrations – 16.2% cash on cash returns * Based on share count at time of transaction (in millions except number of communities) Pur
Slide 20: Historical Key Metrics
20 Historical Key Metrics Revenue * Adjusted EBITDAR Adjusted EBITDAR Margin Adjusted CFFO per share ($ In Millions) ($ In Millions) * Excludes community reimbursement revenue and management services revenue * Excludes tax savings related to cost segregation studies of $0.25 in 2012 and $0.14 in 201
Slide 21: Comparative Operating and Financial Metrics
21 Comparative Operating and Financial Metrics Q4 14 Q4 13 % Increase Note: EBITDAR and CFFO are as adjusted in press releases. Total Revenues $ 100.2 $ 88.9 12.6% Adjusted EBITDAR $ 36.0 $ 29.7 20.9% % Margin 37.5% 34.6% Adjusted CFFO $ 13.5 $ 11.2* 20.5% Adjusted CFFO Per Share $ 0.48 $ 0.40* 20.0
Slide 22: Balance Sheet
22 Balance Sheet ASSETS LIABILITIES & EQUITY As of December 31, 2014 (in millions) Cash and Securities $ 51.5 Other Current Assets 61.1 Total Current Assets 112.6 Fixed Assets 747.2 Other Assets 37.9 TOTAL ASSETS $ 897.7 Current Liabilities $ 100.8 Long-Term Debt 597.9 Other Liabilities 57.8 Total L
Slide 23: Debt Overview: 100% Mortgage Debt
23 Debt Overview : 100% Mortgage Debt Debt Maturities Weighted Average Interest Rate (In thousands ) Average duration of debt is 8 years, with approximately 92% of all debt maturing in 2021 and after Weighted Average Interest Rate has decreased 133 bps since 2010
Slide 24: Investment Highlights
24 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 Accretive
Slide 25: Capital Senior Living
Capital Senior Living Company Presentation
Capital Senior Living — Q4 2014 Earnings Presentation on 6ix