Capital Senior Living(US:SNDA)2024-08-12 20:04Revenue Growth - For the three months ended June 30, 2024, the Company generated resident revenue of $63.1 million, a 10.7% increase from $57.0 million in the same period of 2023[105] - For the six months ended June 30, 2024, resident revenue was $123.8 million, up 9.0% from $113.6 million in the prior year[105] - Resident revenue for Q2 2024 was $63.1 million, an increase of 10.7% from $57.0 million in Q2 2023, primarily due to increased occupancy and one additional community acquisition[131] - Managed community reimbursement revenue for Q2 2024 was $6.4 million, up 18.5% from $5.4 million in Q2 2023, attributed to managing more communities[131] - Managed community reimbursement revenue for the first half of 2024 was $12.5 million, up 21.4% from $10.3 million in the first half of 2023[133] Occupancy and Rental Rates - Weighted average occupancy for the same-store communities was 86.2% for the three months ended June 30, 2024, compared to 83.9% in 2023, indicating continued occupancy growth[105] - The average monthly rental rate for the three months ended June 30, 2024, was 8.4% higher than the same period in 2023[105] Expenses - Operating expenses for Q2 2024 were $46.0 million, a 2.9% increase from $44.7 million in Q2 2023, with labor costs contributing approximately $1.2 million to the increase[132] - General and administrative expenses for Q2 2024 rose to $9.2 million, up 39.4% from $6.6 million in Q2 2023, driven by increased labor and employee-related expenses[132] - Operating expenses for the first half of 2024 were $92.3 million, a 4.3% increase from $88.5 million in the first half of 2023, mainly due to labor cost increases[135] Debt and Financing Activities - The Company entered into a loan repurchase agreement in February 2024, purchasing $74.4 million in outstanding debt, resulting in a gain on debt extinguishment of $38.1 million[114] - Gain on extinguishment of debt for the first half of 2024 was $38.1 million, compared to $36.3 million in the same period of 2023, resulting from derecognition of notes payable[135] - The company expanded its loan facility with Ally by $24.8 million to partially fund the 2024 Loan Purchase, incurring deferred loan costs of $0.5 million[119] Cash Flow and Liquidity - As of June 30, 2024, the company had $9.5 million in unrestricted cash, with future liquidity dependent on operating performance and economic conditions[136] - Net cash used in operating activities for the six months ended June 30, 2024 was $1.6 million, a decrease of $7.2 million compared to $5.5 million provided in the same period of 2023[138] - Net cash used in investing activities for the six months ended June 30, 2024 was $42.7 million, primarily due to the acquisition of a new community for $11.1 million and unconsolidated entities for $22.3 million[139] - Net cash provided by financing activities for the six months ended June 30, 2024 was $50.4 million, mainly from the issuance of common stock generating $65.1 million[140] - The company completed a private placement in Q1 2024, issuing 5.0 million shares for gross cash proceeds of $47.8 million, which helped purchase outstanding debt at a discount[136] - The company entered into an At-the-Market Issuance Sales Agreement allowing for the sale of shares up to $75 million, with $17.4 million net proceeds received as of June 30, 2024[136] - The company is evaluating financial and capital raising transactions, including debt refinancings and equity offerings, to enhance liquidity[136] Acquisitions and Investments - The Company acquired a community in Macedonia, Ohio for $10.7 million in April 2024, financed by a $9.4 million mortgage loan[111] - The Company formed a joint venture in April 2024 to acquire four senior housing communities for $64.0 million, holding a 33.33% noncontrolling interest[112] Interest Expense - Interest expense for Q2 2024 was $9.0 million, an increase of 4.7% from $8.6 million in Q2 2023, primarily due to changes in fair value of the interest rate cap[132] Grants - The company received $2.4 million in grants during the six months ended June 30, 2023, due to financial distress impacts from COVID-19[138]