Capital Senior Living Corporation (the “Company”) (NYSE:CSU), one of the country’s largest operators of senior living communities, today announced operating results for the third quarter of 2011. Company highlights for the third quarter include:
- Adjusted Cash From Facility Operations (“CFFO”) was $5.7 million or $0.21 per share in the third quarter of 2011. Excluding a tax refund from amending tax returns in the third quarter of the prior year, CFFO increased 85% from the third quarter of 2010.
- Revenue increased 27.2% to $68.2 million in the third quarter of 2011, an increase of $14.6 million from the third quarter of 2010.
- Average monthly rent increased 10.3% to $2,924 per occupied unit in the third quarter of 2011, an increase of $272 per occupied unit from the third quarter of 2010. Sequentially, average monthly rent increased 1.1% per occupied unit from the second quarter of 2011.
- Consolidated average occupancy including 112 units converted to higher levels of care that are in lease-up was 84.7% in the third quarter of 2011, equal to the third quarter of 2010 with approximately 1,000 additional consolidated units in the current period. Sequentially, consolidated average occupancy was up 80 basis points from the second quarter of 2011.
- Adjusted EBITDAR increased 42.9% to $23.8 million in the third quarter of 2011, an increase of $7.2 million from the third quarter of 2010. EBITDAR margin improved to 34.9% from 31.1% in the third quarter of the prior year.
- The Company completed the acquisition of four senior living communities for a combined purchase price of $53 million.
- Subsequent to the end of the third quarter, the Company completed the acquisition of three additional senior living communities for a combined purchase price of approximately $30 million.
“We are very pleased to report positive third quarter results from the implementation of our strategic plan that is focused on operations, marketing and accretive growth,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “These initiatives have resulted in revenue growing 27% and EBITDAR increasing 43% versus the third quarter of the prior year. Average monthly rents increased by over 10% and EBITDAR margin improved 380 basis points. Excluding the effect of amending a tax return in the third quarter of last year, CFFO in the current quarter increased 85%. These results reflect the fundamental strength of our substantially all private-pay business as we benefit from need-driven demand and limited new supply. We are encouraged by our strong occupancy gains, with third quarter average occupancy growing by 80 basis points on a sequential basis. We are also excited about our acquisitions, which increase our ownership of high-quality senior living communities, enhance our geographic concentration and generate meaningful increases in CFFO and earnings.”