Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Investor Presentation (May 2016)
26 slides from Sonida Senior Living's investor presentation, May 3, 2016
Slide 1: Capital Senior Living Executing a Clear, Differentiated Strategy to Drive Superior Shareholder Value
Capital Senior Living Executing a Clear, Differentiated Strategy to Drive Superior Shareholder Value Exhibit 99.2
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: Non-GAAP Financial Measures
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 materia
Slide 4: Table of Contents
Table of Contents Executive Summary Key Investment Highlights Attractive Positioning in the Senior Living Market Compelling Strategy to Drive Shareholder Value Accomplished Leadership Team Focused on Execution Track Record of Strong Growth and Uniquely Positioned for Continued Success Conclusion
Slide 5: Executive Summary
Executive Summary Long-term demographics, need-driven demand, limited competitive new supply and an improving housing market and economy Highly fragmented industry with significant opportunities for a scale player Operating in metro areas with supportive supply and demand dynamics; protected by barr
Slide 6: CSU Has Outperformed a Broad Peer Group, Including Through Recent Market Dislocation
CSU Has Outperformed a Broad Peer Group, Including Through Recent Market Dislocation Source: FactSet as of April 29, 2016. Note: GEN data begins 5/15/2007 and SEM data begins 9/25/2009. (1)A part of Post-Acute Index. CSU S&P500 HLS SEM KND BKD FVE GEN Stock Price Performance
Slide 7: Attractive Positioning in the Senior Living Market
Attractive Positioning in the Senior Living Market 1
Slide 8: The Senior Living Market Offers Attractive Long Term Fundamentals...
The Senior Living Market Offers Attractive Long Term Fundamentals... U.S. population 75+ years old is expected to increase from ~6% of total current population to 12% by 2030 Current penetration rate implies demand growth of ~40K units per annum 75% of the Independent Living market and 63% of the As
Slide 9: ...and a Highly Constructive Current Operating Environment
Observations …and a Highly Constructive Current Operating Environment Estimated 70% of Americans who reach age 65 will need some form of long-term care in their lives for an average of three years Occupancy across the industry continues to strengthen while rents are near 7-year highs Source: Wall St
Slide 10: Best-In-Class Shareholder Returns and Premium Valuation
Best-In-Class Shareholder Returns and Premium Valuation Last Five Years Total Shareholder Returns AEV / 2016E EBITDAR CSU has delivered a total shareholder return of +116% over the last five years, significantly exceeding returns of the S&P 500 (+69%) and key peers (which delivered negative returns
Slide 11: Compelling Strategy to Drive Shareholder Value
Compelling Strategy to Drive Shareholder Value 2
Slide 12: CSU Benefits from Multiple Avenues for Growth
CSU Benefits from Multiple Avenues for Growth Core Organic Growth Conversions Accretive Acquisitions Occupancy improvement where opportunity exists Increasing average rents through level of care charges, markets rents and in-house rent increases Proactive expense management Cash flow enhancing renov
Slide 13: Core Organic Growth Driven by Occupancy, Pricing Improvements and Cost Containment
Core Organic Growth Driven by Occupancy, Pricing Improvements and Cost Containment Increasing Occupancy and Average Monthly Rent Trends Rent Management Initiatives Expense Management Initiatives Focus on occupancy improvement through marketing and price initiatives at communities with occupancy belo
Slide 14: Conversions Drive Significant Occupancy Improvements and CFFO per Share Accretion
Conversions Drive Significant Occupancy Improvements and CFFO per Share Accretion History of Driving Significant Occupancy Improvements Through Accretive Conversions Have Completed 500 Conversions and Identified 200 Incremental Units for Conversion Occupancy CFFO per Share Accretion Pre-Conversion 1
Slide 15: Track Record of Executing Highly Accretive Acquisitions and a Robust Pipeline
Track Record of Executing Highly Accretive Acquisitions and a Robust Pipeline for the Future Year 1 Cash-On-Cash Returns With a positive reputation among sellers and ability to offer certainty of closing, CSU is able to source the majority of its acquisitions on a bilateral basis Pipeline allows for
Slide 16: Transformation: Wholly-Owned Portfolio Growth
Transformation: Wholly-Owned Portfolio Growth Owned % 32.5% 60.3% 77 Total Properties 126 Total Properties As of May 3, 2016
Slide 17: Accomplished Leadership Team Focused on Execution
Accomplished Leadership Team Focused on Execution 3
Slide 18: CSU's Experienced and Accomplished Management Team
CSU’s Experienced and Accomplished Management Team has Delivered the Company’s Leading Results… Larry Cohen Chief Executive Officer Served as CEO since May 1999 and CFO from November 1996 to May 1999 From 1991 to 1996, Mr. Cohen was President and CEO of Paine Webber Properties Inc. Founding member a
Slide 19: Highly Qualified and Engaged Board of Directors With Unmatched Industry Experience
Highly Qualified and Engaged Board of Directors With Unmatched Industry Experience CSU has best-in-class Board composition Board Member Affiliation Notable Experience Lawrence A. Cohen CEO and Vice Chairman · CEO and Vice Chairman of Capital Senior Living · Founding member and Chairman of the Americ
Slide 20: Track Record of Strong Growth and Uniquely Positioned for Continued Success
Track Record of Strong Growth and Uniquely Positioned for Continued Success
Slide 21: Strategy and Execution Have Delivered Strong Growth
Strategy and Execution Have Delivered Strong Growth Revenue (1) Adjusted EBITDAR ($ In Millions) ($ In Millions) Adjusted EBITDAR Margin Adjusted CFFO per Share (2) 20.7% CAGR 15.8% CAGR 15.9% CAGR Excludes community reimbursement revenue and management services revenue. (2)Excludes prepaid resident
Slide 22: Healthy Balance Sheet to Support Future Initiatives
Healthy Balance Sheet to Support Future Initiatives Assets Cash and Securities $ 45.0 Other Current Assets 23.5 Total Current Assets 68.5 Fixed Assets 953.4 Other Assets 31.2 Total Assets $ 1,053.1 Liabilities & Equity Current Liabilities $ 66.9 Long-Term Debt 796.7 Other Liabilities 59.7 Total Liab
Slide 23: Availability of Attractive Financing for Growth Initiatives
Debt Maturities Weighted Average Interest Rate CSU has ample financial capacity to pursue all initiatives contemplated under its growth strategy No near term debt maturities Acquisitions typically financed at 75% LTV Renewed $10 million share repurchase authorization underscores commitment to shareh
Slide 24: Strategy Poised to Deliver ~50% EBITDAR Growth and 20%+ Annual CFFO per Share Growth
Strategy Poised to Deliver ~50% EBITDAR Growth and 20%+ Annual CFFO per Share Growth CAGR: 20%+ Note: This chart illustrates the potential financial impact of successful execution of our strategic plan; it is not intended as financial guidance. Please see Capital Senior Living’s disclosure related t
Slide 25: Conclusion
A 5 ha Capeted. Conclusion
Slide 26: CSU has a Clear and Differentiated Strategy to Drive Industry-Leading Growth
CSU has a Clear and Differentiated Strategy to Drive Industry-Leading Growth and Superior Shareholder Value Long-term demographics, need-driven demand, limited competitive new supply and an improving housing market and economy Highly fragmented industry with significant opportunities for a scale pla
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