Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Investor Presentation (January 2011)
20 slides from Sonida Senior Living's investor presentation, Jan 7, 2011
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 is one of the nation's largest operators of senior living communities Solid Balance Sheet with no mortgage debt maturing until July 2015 Strong cash flow generation Well-positioned for accretive growth opportunities from acquisitions and conversions Industry ha
Slide 4: Company Overview: 77 communities in 23 states
Company Overview Capital Senior Living owns and/or operates 77 communities in 23 states with the ability to serve 11,000 residents Operates in geographically concentrated markets CA. 407 AR. 173 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
Slide 5: 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 6: The Capital Advantage: Senior Living Options - Assisted Living
The Capital Advantage: Senior Living Options Average 66 units per AL community Assistance with activities of daily living such as medication reminders, bathing, dressing and grooming Average monthly rate of $3,400 96% private pay Average length of resident stay is 26 months Assisted Living - 32% of
Slide 7: 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 8: The Capital Advantage: Favorable Demographics
The Capital Advantage: Favorable Demographics US population 75+ years old is estimated to grow by 3.5 million through 2015 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 2009 2015 East 18.9 22.4 (Popula
Slide 9: The Capital Advantage: Favorable Supply Trends
The Capital Advantage: Favorable Supply Trends Source: 2010 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 2009 14629 21895 24810 27007 22342 23566 11651 11165 9442 11513 1300
Slide 10: The Capital Advantage: 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) Nimble platform and organizational s
Slide 11: The Capital Advantage: Strategy
Focus on our core strengths Maximize the cash flow generated by our communities and 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 and acquisition of communities with levels o
Slide 12: 2011 Business Plan
2011 Business Plan Focused on operations, marketing and growth to enhance shareholder value through: Organic growth Disciplined expense management Accretive acquisitions and conversions Utilization of technology
Slide 13: 2011 Business Plan: Organic Growth
Increase average rents Improve occupancies Each 1% generates $3M of revenue and $2M of EBITDAR Convert 170 units to higher levels of care Incremental $5M of revenue and $3M of EBITDAR Cash flow enhancing renovations and refurbishments Internet marketing and web-site enhancements Implement software p
Slide 14: 2011 Business Plan: External Growth
2011 Business Plan : External Growth Strategic acquisitions of primarily AL communities to enhance geographic concentrations Debt $70.0 Equity $30.0 Revenue $24.0 EBITDAR $9.6 Cash Flow From Operations $4.2 First Year Return on Investment 14% (in millions) - - Example of a $100.0 million acquisition
Slide 15: Recent Significant Transactions
Recent Significant Transactions Incremental Impact Midwest I Q1 2010 Midwest II Q1 2010 Signature Senior Living Q3 2010 Spring Meadows Q1 2011 Total % Increase over 2009 Number of Properties 5 3 12 4 24 48% Revenue $10.5 $11.1 $31.1 $26.0 $78.7 41% EBITDAR $5.0 $3.6 $14.2 $12.2 $35.0 61% CFFO $0.3 $
Slide 16: Income Statement: Q3 YTD Comparison
Income Statement: Q3 YTD Comparison 2010 2009 Total Revenues $ 152.0 $ 143.3 Operating Expenses (85.6) (78.4) General & Administrative Expenses (8.6) (8.8) Other Expense (10.1) (13.4) EBITDAR $ 47.7 $ 42.7 % Margin 31.4% 29.8% Lease Expense (23.2) (19.4) Interest, Taxes and Other (21.8) (21.3) Net I
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 $ 39.4 Other Current Assets 23.1 Total Current Assets 62.5 Fixed Assets 296.6 Other Assets 25.7 TOTAL ASSETS $384.8 As of September 30, 2010 (in millions) LIABILITIES & EQUITY LIABILITIES & EQUITY Current Liabilities $ 34.3 Long-Term Debt 171.0 Other L
Slide 19: Investment Highlights
Investment Highlights Favorable demographics and attractive industry fundamentals Experienced management team with demonstrated ability to operate, acquire and create value Predominately private pay with minimal federal regulation Conversion initiatives with significant revenue and cash flow growth
Slide 20: Capital Senior Living Corporation
Capital Senior Living Corporation
Capital Senior Living — Investor Presentation (January 2011) on 6ix