form 8-k - capital senior · pdf fileitem 7.01 regulation ... by filing this current report on...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): June 1, 2010 Capital Senior Living Corporation (Exact name of registrant as specified in its charter) Registrant’s telephone number, including area code: (972) 770-5600 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Delaware 1-13445 75-2678809 (State or other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.) 14160 Dallas Parkway Suite 300 Dallas, Texas 75254 (Address of Principal Executive Offices) (Zip Code) (Former name or former address if changed since last report.)

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Page 1: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 1, 2010

Capital Senior Living Corporation (Exact name of registrant as specified in its charter)

Registrant’s telephone number, including area code: (972) 770-5600

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

� Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) � Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) � Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) � Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Delaware 1-13445 75-2678809

(State or other Jurisdiction of Incorporation)

(Commission File Number) (IRS Employer Identification No.)

14160 Dallas Parkway

Suite 300 Dallas, Texas 75254

(Address of Principal Executive Offices) (Zip Code)

(Former name or former address if changed since last report.)

Page 2: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

Item 7.01 Regulation FD Disclosure.

Attached hereto as Exhibit 99.1 is an updated slideshow presentation of Capital Senior Living Corporation (the “Company”).

The information being furnished under this Item 7.01 and Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The presentation contains, and may implicate, forward-looking statements regarding the Company and includes cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated.

In the presentation, the Company’s management utilized non-GAAP financial measures, including adjusted EBITDAR, adjusted CFFO, adjusted CFFO per share and other items. These non-GAAP financial measures are used by management to evaluate financial performance and resource allocation for its facilities and for the Company as a whole. These measures are commonly used as an analytical indicator within the senior housing industry, and also serve as a measure of leverage capacity and debt service ability. The Company has provided this information in order to enhance investors overall understanding of the Company’s financial performance and prospects. In addition, because the Company has historically provided this type of information to the investment community, the Company believes that including this information provides consistency in its financial reporting.

These non-GAAP financial measures should not be considered as measures of financial performance under generally accepted accounting principles, and items excluded from them are significant components in understanding and assessing financial performance. These measures should not be considered in isolation or as an alternative to net income, cash flows generated by operating, investing, or financing activities, earnings per share or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. Because these measures are not measurements determined in accordance with generally accepted accounting principles and are thus susceptible to varying calculations, these measures as presented may not be comparable to other similarly titled measures of other companies.

By filing this Current Report on Form 8-K, the Company does not acknowledge that disclosure of the information being furnished under this Item 7.01 and Exhibit 99.1 is required by Regulation FD or that the information was material or non-public before the disclosure. The Company assumes no obligation to update or supplement forward-looking statements in the presentation that become untrue because of new information, subsequent events or otherwise.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description99.1 Capital Senior Living Corporation Updated Slideshow Presentation.

Page 3: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signedon its behalf by the undersigned hereunto duly authorized.

Date: June 1, 2010 Capital Senior Living Corporation

By: /s/ Ralph A. Beattie Name: Ralph A. Beattie Title: Executive Vice President and Chief Financial Officer

Page 4: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

EXHIBIT INDEX

Exhibit No. Description99.1 Capital Senior Living Corporation Updated Slideshow Presentation.

Page 5: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

Exhibit 99.1

Capit al Senior Livin g Co rporat ion

Page 6: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

Forwar d -Lookin g Statements T he forwar d- looking s tatements in thi s pr esentatio n are su bject to certain r isk s and uncer tainties that could cause resu lts to diff er mater ially, includi ng, but not without l imitation to, the Company's ab ility to co mplete the ref inancing of cer tain of o ur wholl y owned communi ties, r ealize the anticipated savings related to such fi nan ci ng, find suit ab le acqui sit ion prop er ties at favorabl e t er ms , financing , licensin g, bus iness conditi ons, r isks of downtur ns in economic conditi ons g ener ally, satisf action of cl osin g conditions such as t hose per taining to l icen sur es , availabil ity of insur ance at co mmercially r easonable r ates and changes in accounting p rinciples and inter pretations among o thers , and other r isks and f actors identif ied fr om time t o time in ou r repor ts filed wit h the Securi ties and E xchange Commiss ion T he Com pan y assumes no obligati on to update or sup plement for ward- looking s tatements in thi s pr esentatio n that become untr ue because of new i nfor mation, subseq uen t events o r other wise.

Page 7: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

Com pany Overview Capital S en ior L iving ow ns and/o r operates 66 commu nities in 23 s tates wi th the abilit y to ser ve 10,000 r esident s 58 o f these co mmuniti es are owned o r leased wi th res ident capacity of 8,700 Achieved 95% approval r ating in 2 009 res idents ' satis faction sur vey Owned Leased Join t Venture Managed 0.418 0.44 1 0.127 0.014 Independent li ving Assis ted liv ing CCRC 0.666 0.264 0.07 Uni ts b y Ownership T ype Res ident Capacity Mix

Page 8: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

The Capital Advantage: S enior L iving Op tions Average 131 uni ts per IL communit y with lar ge com mon areas and amenities Suppor tive services , wel lness pr ograms , so ci al , recreational, and edu cati onal events Av er age monthly rate of $2 ,200 100% private pay Aver age length of r esi den t st ay i s 34 months Independent L ivin g - 67% of Por tfoli o

Page 9: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

The Capital Advantage: S enior L iving Op tions Average 64 unit s per AL comm unity Ass istance with acti vities of daily living such as medication rem inders , bathing, dr ess ing and g roomin g Average monthl y rate of $3,300 96% private pay Av er age length of resi dent st ay is 2 6 months Assis ted L iving - 26% of Por tfoli o

Page 10: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

Resident Demogr aphics at CS U Co mmuniti es Average age of res ident: 85 years Average age of res ident movin g in: 82 year s Aver age s tay peri od: 2 -3 year s P ercent of female res idents : 80% Res ident tu rnover i s pr imaril y attrib uted to death or need for higher care

Page 11: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

The Capital Advantage: E s tablished Operating P latfor m (Res ident Capaci ty by St at e) CA. 407 AR. 321 AZ . 189 CT . 178 FL . 182 I A. 122 IL . 648 I N. 1,227 KS . 169 L A. 136 MI. 346 MN. 176 MO. 34 8 MS . 143 NC. 463 S C. 436 NE. 596 NJ. 98 NY. 387 OH. 1,2 28 OK. 143 T X. 2,088 VA. 1 53

Page 12: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

The Capital Advantage: F avorable Demogr aphics US populatio n 75+ years old is es timated to grow by 3 .8 milli on throu gh 2015 Only 1.8 milli on units ser ving a popu lation of 18.6 mill ion sen iors Curr ent 9.6% p enetr ation r at e implies demand gro wth of 45 ,000 units per y ear 2007 2015 E ast 18.6 22.4 ( Populati on MM) Sour ce: Center s f or Medicare & Medicaid Ser vices, Of fice of the Actuary US Seniors Po pulation T rends (75+ years old) I mplied d em an d growth of 45,000 units per year

Page 13: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

The Capital Advantage: F avorable Su pply T rends Source: 20 09 ASHA/NI C Seniors Hous ing Cons tru ct ion Tr ends Repor t 1985 19 86 1987 1988 1989 1990 199 1 1992 1993 1 994 1995 199 6 1997 1998 1 999 2000 200 1 2002 2003 2 004 2005 2006 2007 2008 15 499 21210 23 970 25228 244 33 22205 132 27 11202 977 7 12593 11437 18051 25481 35664 45392 39186 36575 2 0931 21112 1 6214 11123 13 766 11286 11 058 Net Growt h in Units - Priv at e P ay Senior s Hous ing ( IL /AL ) 76% decl ine

Page 14: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

The Capital Advantage: Comp et itive Str engths Exp er ienced on -site, r egional, and cor porate management L arger com pan y econ omies of scal e and sys tems that yield op er ating eff iciencies i n highly f ragmented i ndust ry St rong in stit utional r elationships (debt and equit y) with flexible own er sh ip st ructur es Nimb le platfor m and or gan izat ional s tructur e with regio nal operating center s i n geographically concentr ated markets Sol id reputati on in indu str y and 95% resi dent sati sf acti on Disciplined under writi ng and su ccessf ul execution of transactions Operate mult iple levels of care So lid balance sheet

Page 15: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

The Capital Advantage: S trategy Maximize the valu e o f our operations . E nhance g eog raphic concentrati on and maximize competi tive st rengths withi n each of our m arkets Increase levels of care thr ough convers ions to AL or MC units , acquis ition o f communi ties wi th levels of care and expans ion of ancillary services Cap italize on the fr agmented natur e of the senior l iving ind ustr y with i ts l imited access to capital, dem ographic demand and cons tr ai ned supp ly to s trategically exp an d operations L ev er age our exis ting b ase of o per ations , s trong i nsti tutional r elationships and proven t rack record.

Page 16: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

2010 Busi ness Plan I ncrease occupancy and r at e E xpense Management E xternal Growth JV Acquis ition s L eases Direct acquis itions into Com pany Thi s 2010 Bus iness Plan is focused on operati ons, g rowth and enhancing shar eh older value.

Page 17: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

Growth I nitiatives : Joint Ventu re Acquis itions Joint ventur e partners Blackst one Real E s tate Advisors GE Healthcar e F inancial Ser vices P rudential Real E state I nvesto rs Seven communi ties ar e o wned with joi nt venture par tners Co -invest with joint venture par tners to parti ci pate in economics : 10% Capit al Senior Livi ng 90% JV Par tners Ear n management fees , retur n on equity investm ent and potential for addi tional incentiv es

Page 18: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

Example of Jo int Ventur e E conomics Ventur e CS U Partner NOI $ 9, 000,000 Cap Rate 9.0% P urchase P rice $100,0 00,000 Debt $ 70, 000,000 E quity $ 3 0,000,000 $3,0 00,000 $27,00 0,000 Revenues $ 2 7,000,000 Mgt. F ees (5% ) $1 ,350,000 ROE (14.8% ) $ 44 5,000 $ 4,005, 000 Tot al Fir st Year Retur n $1,795,0 00 $ 4,005,000 Total Retur n % 59 .8% 14.8 %

Page 19: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

Growth I nitiatives : Acquis itio n/Lease Transactions Year 1 Year 2 $ Increase % In cr ease Revenue $25,000,000 $26,000,000 $ 1,000,000 4.0 % Operati ng Exp ense $15,000 ,000 $15,300,0 00 $300,000 2 .0% E BIT DAR $1 0,000,000 $10 ,700,000 $700 ,000 7.0% Lease E xpense $8,000,000 $ 8,200,000 $20 0,000 2.5% EBIT DA $2,000 ,000 $2,500,00 0 $500,000 25 .0% E xample of $100 mill ion acquis ition/l ease transaction: Compl et ed 29 acquisi tion/lease transact ions for a t otal value of $ 334 mill ion s ince Q4 2005

Page 20: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

Income Statem ent : Q1 Compari son ( in mil lions , excep t per share) 201 0 2009 Resi den t & Health Care Revenue $42.9 $42.6 Other Revenue 5.0 5.4 T otal Revenues $ 47.9 $48.0 Oper at ing E xpenses 26.3 26.0 Gener al & Admi nist rative E xpenses 3.0 3.0 Ot her E xpense 4.3 4. 7 EBIT DAR $14.3 $14. 3 Lease E xpense 6.4 6.4 Depreciatio n & Amor tization 3.5 3 .3 Other E xpense 0 .3 0.3 Incom e from Operations $4.1 $4 .3 Other I ncome / (E xpense) (2.9 ) (2.9 ) T axes & Minor ity I nteres ts ( 0.5) ( 0.6) Net Income $0.7 $0 .8 Ear nings Per S har e $0.03 $0.03 CF FO Per Share $0. 15 $0.15

Page 21: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

Since 2006, CSU h as s ignif icant ly s trengthened it s balance sheet Reduced to tal mort gag e d ebt by $75.0 m illion Refi nan ced or retir ed $162 mi llion of variable r ate deb t Redu ced aver ag e i nteres t rate fr om 7.5% to 6.0% fix ed No mort gag e m at uriti es thr ough July 2015 on all fix ed rate debt Balance Sheet Str ength

Page 22: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

Balance Sheet AS SET S AS SE TS Cash and Secur ities $ 35.8 Other Cur rent Asset s 14.6 Total Cur rent Asset s 50.4 Fixed Assets 298.8 Ot her Assets 28.7 T OTAL ASS ET S $377 .9 As of Mar ch 31, 2010 (in mi llions) L IABIL IT IE S & E QUIT Y L IABIL IT IE S & E QUIT Y Current Liabil ities $ 29.4 L ong -Term Debt 173.0 Other Liabil ities 16.0 To tal Liabi lities 218.4 St ockholders ' Equi ty 159.5 T OTAL L IABIL IT IE S & E QUIT Y TOT AL LIA BI LI TI ES & EQUI TY $3 77.9

Page 23: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

Investment Highl ights Favorabl e d em ographics and attractiv e i ndust ry f undamentals Con vers ion initi at ives wi th si gnificant r evenue and margin growth S tron g same -stor e community net income gr owth Acquis ition op portuni ties i n highly f ragmented i ndust ry E xis ting inf ras tructur e resu lts in low mar ginal integr ation cos t Pr edo minately pr ivate pay with mi nimal f eder al regulatio n Financial lever ag e t hrough j oint ventur e partners and RE ITS Exp er ienced management team with dem ons trated abilit y to operate, acquir e and develop

Page 24: FORM 8-K - Capital Senior · PDF fileItem 7.01 Regulation ... By filing this Current Report on Form 8-K, ... 20 09 ASHA/NIC Seniors Housing Constru ct ion Trends Report 1985 19 86

Capit al Senior Livin g Co rporat ion