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, Nov 5, 2020
Slide 1: Capital Senior Living: A Leading Owner-Operator of Senior Living Communities and Services
Exhibit 99.2 Capital Senior Living A Leading Owner-Operator of Senior Living Communities and ServicesExhibit 99.2 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 3Table 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 30+ 9,000+ $442MM 5,600+ Communities Year Residents 2019 Revenue Employees History 66% Owned Served 15+ Communities 22 • Dallas-based Capital Senior Living is one of the nation’s largest 5 - 14 Communities States < 5 Communities operators of independent living,
Slide 5: 3Q 2020 Highlights
3Q 2020 Highlights 53Q 2020 Highlights 5
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. • Move-in v
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 2 bps 83.0% (40) bps 82.6% 82.6% 82.0% 82.2% (151) bps 81.0% 24 bps 80.7% (93) bps 80.0% (89) bps 80.0% 79.8% 79.0% (83) bps 79.1% (72) bps 78.0% 78.3% 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
COVID-19 Update 10COVID-19 Update 10
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 Enhanced compensation to reward front line Regional staffing support for deployment in Multi-disciplinary COVID-19 task force workers high-risk situations Multiple procurement partners ensures Advanced disinfecting sup
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 14Strategy 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 EXIT LEASES RESET DEBT RIGHTSIZE PORTFOLIO
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 leases terminate on 12/31/20 • Master lease with 10/31/20 maturity • Master lease terminates 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 Resident Revenue by State Post Transitions 1 2 Today Post Transitions Texas, 23% Remaining, Communities 95 68 29% 61 Owned 60 Owned 34 Leased 0 Leased 0 Managed 8 Managed States 20 16 Ohio, 22% Units 8,920 5,634 Indiana, 16% 3Q 20Occupancy 77.6% 79.3% Wiscons
Slide 20: Continuing Owned Communities Occupancy Outperformance
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% 79.3% 80.0% 74.3% 75.0% 73.5% 70.9% 70.0% 65.0% Q2 17 Q3 17 Q4
Slide 21: Continuing Owned and Managed REVPOR Upward Trend
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 $3,541 $3,600 $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
(1) NOI Margin % 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% 37.6% 35.0% 32.7% 34.4% 29.4% 30.0% 25.0% 26.6% 20.0% 13.5% 15.0% 10.0% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 1
Slide 23: Continuing Owned & Managed Communities
Continuing Owned & Managed Communities Year Built / Year Built / City Expanded IL AL MC Total Community State City Expanded IL AL MC Total Community State 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 Annual G&A Costs operations to fit more concentrated footprint and improve operating efficiencies. Year G&A YoY • The Company has take
Slide 25: 3Q 2020 Financials
3Q 2020 Financials 253Q 2020 Financials 25
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% (1) Ending Occupancy 77.6% 80.0% 83.1% 77.6% 83.1% (2) RevPOR $3,731 $3,747 $3,708 $3,738 $3,697 Margin 28.7% 33.2% 32.3% 32.4% 34.5% (3) NOI (95 Properties) $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
1 Capital Structure, Debt Maturities 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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