Capital Senior Living(SNDA) - 2024 Q4 - Annual Report

Acquisitions and Investments - As of December 31, 2024, the Company owned, managed, or invested in 94 senior housing communities with an aggregate capacity of approximately 10,000 residents[206]. - The Company acquired a senior living community in Cincinnati for $16.3 million, funded by$18.3 million of senior mortgage debt[207]. - The Company closed the acquisition of two senior living communities in Atlanta for $29.0 million, recording$24.7 million in property and equipment[209][210]. - The Palm Acquisition involved eight senior living communities for a total cash purchase price of $102.9 million, with$89.2 million recorded in property and equipment[211][212]. - The Company entered into a non-recourse mortgage loan of $18.3 million for the Cincinnati Acquisition, with a fixed-interest-only rate of 3$267.8 million in 2024, an increase of $35.8 million or 15.4$232.0 million in 2023[243][253]. - Weighted average occupancy for the Company's communities was 86.4% in 2024, up from 84.6% in 2023, indicating continued occupancy growth[244][253]. - The average monthly rental rate for owned communities increased by 5.9% in 2024 compared to 2023[244][253]. - Management fee revenue rose by $1.2 million in 2024 due to managing more communities[254]. - Managed community reimbursement revenue increased by$12.0 million or 56.9% in 2024, totaling $33.1 million compared to$21.1 million in 2023[255]. Operating Expenses - Operating expenses for 2024 were $202.0 million, an increase of$24.7 million from $177.3 million in 2023, primarily due to labor cost increases[256]. - General and administrative expenses for the year ended December 31, 2024, increased by$7.8 million, or 24.2%, to $40.0 million compared to$32.2 million in 2023, primarily due to increased labor costs and stock-based compensation[257]. - Non-labor operating expenses increased by 2.4% for same-store communities in 2024, reflecting inflationary pressures[275]. - Labor costs, which historically comprise about two-thirds of total operating expenses, continued to rise due to competitive labor conditions and increased occupancy levels[276]. Debt and Financing - The Texas Loan Modification resulted in a discounted payoff of $18.3 million, recognizing a gain on debt extinguishment of$10.4 million for the year ended December 31, 2024[230]. - The Company has a senior secured revolving credit facility with a borrowing capacity of $150.0 million, borrowing$68.7 million at a weighted average interest rate of 7.3%[233]. - The Company completed a $40.2 million loan purchase and reduced notes payable by$49.6 million, resulting in a gain on debt extinguishment of $38.1 million[234]. - Interest expense increased by$0.9 million, or 2.4%, to $37.0 million for the year ended December 31, 2024, due to incremental borrowings for community acquisitions[261]. Cash Flow and Liquidity - Net cash used in operating activities was$1.8 million for the year ended December 31, 2024, compared to net cash provided of $10.7 million in 2023, a change of$12.5 million[268]. - Net cash used in investing activities was $208.9 million for the year ended December 31, 2024, primarily due to$172.5 million for acquisitions of new communities[269]. - Net cash provided by financing activities was $232.0 million for the year ended December 31, 2024, mainly from net proceeds of$190.5 million from the issuance of common stock[271]. - The company had an unrestricted cash balance of approximately $17.0 million as of December 31, 2024, with future liquidity dependent on operating performance and economic conditions[264]. Stock and Equity - In August 2024, the Company raised$124.1 million from a public offering of 4,300,000 shares at $27.00 per share[239]. - The Company entered into an At-the-Market Issuance Sales Agreement allowing for the sale of shares up to an aggregate offering price of$75.0 million[240]. Impairments and Losses - The Company recognized a non-cash impairment charge of $6.0 million in 2023, with no impairments on long-lived assets in 2024[249]. - The company reported a net loss of$3.3 million for the year ended December 31, 2024, a significant improvement from a net loss of $21.1 million in 2023[263].