Capital Senior Living(US:SNDA)2024-11-13 13:19Financial Performance - Same-store resident revenue increased by $3.9 million, or 6.6%, year-over-year, totaling $66.9 million for Q3 2024[3] - Net loss attributable to Sonida stockholders improved to $13.8 million in Q3 2024 from $18.4 million in Q3 2023, a $4.6 million improvement[3] - Adjusted EBITDA for Q3 2024 was $10.1 million, an increase of $0.8 million, or 8.7%, year-over-year[3] - Resident revenue for the three months ended September 30, 2024, was $66.951 million, up from $59.117 million in the same period last year, representing a 3.1% increase[28] - Total revenues for the nine months ended September 30, 2024, reached $212.395 million, compared to $189.602 million for the same period in 2023, reflecting a 12.0% growth[28] - Net income attributable to Sonida shareholders for the nine months ended September 30, 2024, was $3.445 million, compared to a net loss of $6.478 million in the same period last year[28] - Net income for the nine months ended September 30, 2024, was $2,938,000, compared to a net loss of $(6,478,000) in 2023, indicating a significant improvement[31] - Net loss for Q3 2024 was $14,265, compared to a loss of $18,411 in Q3 2023, showing an improvement of 15.5%[40] Occupancy and Community Operations - Weighted average occupancy for the owned same-store portfolio rose 210 basis points to 87.0% from 84.9% in Q3 2023[3] - Managed community reimbursement revenue increased by $1.6 million, or 32.0%, to $6.6 million for Q3 2024 compared to Q3 2023[14] - Same-store community net operating income margin improved to 26.7% in Q3 2024, up from 24.8% in Q3 2023, an increase of 1.9%[45] - Consolidated community net operating income for Q3 2024 was $16,812, up $2,122 from $14,690 in Q3 2023, a growth of 14.4%[45] - The company operated 83 senior housing communities with an aggregate capacity of approximately 9,100 residents as of September 30, 2024[25] Expenses and Liabilities - Operating expenses for Q3 2024 were $50.5 million, an increase of $6.0 million, or 13.5%, year-over-year[15] - Operating expenses for the nine months ended September 30, 2024, increased by $9.8 million, or 7.4%, to $142.8 million compared to $133.0 million for the same period in 2023[17] - General and administrative expenses rose by $5.9 million to $28.2 million for the nine months ended September 30, 2024, primarily due to increased labor and employee-related expenses[17] - General and administrative expenses for Q3 2024 were $11,793, compared to $8,615 in Q3 2023, an increase of 37.8%[40] - Total expenses for the three months ended September 30, 2024, were $79.662 million, an increase from $73.998 million in the prior year, marking a 7.6% rise[28] - Total liabilities decreased to $660.287 million as of September 30, 2024, from $688.009 million at the end of 2023, showing a reduction of 4.0%[30] Cash Flow and Financing - The company raised $130.4 million in gross proceeds from a public offering of 4,300,000 shares at a price of $27.00 per share in August 2024[20] - As of September 30, 2024, the company had $24.9 million of unrestricted cash, with future liquidity dependent on operating performance and economic conditions[22] - The company entered into a senior secured revolving credit facility for $75.0 million, with an additional commitment of up to $75.0 million from RBC[6] - The company closed on an additional $75 million commitment under its Credit Facility, bringing the total commitment to $150 million[21] - Net cash provided by operating activities was $1.4 million for the nine months ended September 30, 2024, a decrease of $9.3 million compared to $10.6 million in 2023[22] - The cash, cash equivalents, and restricted cash at the end of the period totaled $43,788,000, compared to $21,152,000 at the end of the previous year, marking a 106.5% increase[31] - The company’s net cash provided by financing activities was $178,809,000, a substantial increase from $(7,441,000) in the prior year[31] Acquisitions and Portfolio Expansion - The company expanded its portfolio by 30% in the last six months, acquiring 19 senior living communities[2] - The acquisition of eight senior living communities in the Southeast was finalized for $102.9 million, approximately $185,000 per unit, with an in-place occupancy of 85%[8] Debt and Interest - Fannie Mae agreed to extend the maturities on $220.1 million of debt from December 1, 2026, to January 1, 2029[7] - Total variable rate mortgage debt increased to $171,531 in Q3 2024 from $137,320 in Q3 2023[45] - Interest expense for Q3 2024 was $9,839, slightly up from $9,020 in Q3 2023, an increase of 9.1%[40] - The company recorded a gain on extinguishment of debt of $38.1 million for the nine months ended September 30, 2024, compared to $36.3 million for the same period in 2023[18] Other Financial Metrics - The company recorded interest income of $853,000 for the three months ended September 30, 2024, compared to $139,000 in the same period last year[28] - The company incurred a provision for bad debt of $1,510,000, which is significantly higher than the $582,000 recorded in the previous year[31] - Provision for bad debt increased to $629 in Q3 2024 from $249 in Q3 2023, a rise of 152.2%[44] - The company reported a loss on derivative instruments of $3,285,000, which increased from $1,958,000 in the previous year[31] - Capital expenditures for the nine months ended September 30, 2024, were $17,936,000, up from $14,168,000 in 2023, indicating a 19.5% increase[31]