Capital Senior Living(SNDA) - 2024 Q1 - Quarterly Report

Revenue and Occupancy - For the three months ended March 31, 2024, the company generated resident revenue of approximately $60.7 million, an increase of 7.3$56.6 million for the same period in 2023[118]. - The weighted average occupancy for the company's owned communities increased to 85.9% in Q1 2024 from 83.9% in Q1 2023, indicating continued recovery in occupancy rates[119]. - The average monthly rental rate for the three months ended March 31, 2024, was 5.9% higher compared to the same period in 2023[119]. - Resident revenue for Q1 2024 was $60.7 million, an increase of$4.1 million or 7.3% compared to Q1 2023, primarily due to increased occupancy and average rent rates[139]. Financial Transactions and Capital Raising - The company completed the Protective Life Loan Purchase for a total outstanding principal balance of $74.4 million, funded by expanding its loan facility with Ally Bank by$24.8 million[121]. - The company raised approximately $47.7 million through a private placement of 5,026,318 shares of common stock at a price of$9.50 per share, with proceeds intended for working capital and community improvements[125]. - The company plans to use proceeds from the private placement for potential acquisitions of new communities and broader community programming[125]. - The company raised $10.3 million in April 2024 through an ATM Sales Agreement, significantly improving its liquidity position[148]. Debt Management - The company entered into Loan Modification Agreements with Fannie Mae, extending maturities on 18 community mortgages to December 2026, with no scheduled principal payments required until then[127]. - The company reported a gain on debt extinguishment totaling$38.1 million as a result of the Protective Life Loan Purchase[122]. - Gain on extinguishment of debt for Q1 2024 was $38.1 million, compared to$36.3 million in Q1 2023, related to derecognition of notes payable[143]. - Interest expense for Q1 2024 decreased to $8.6 million from$8.9 million in Q1 2023, primarily due to reduced debt balances[142]. Operating Expenses - Operating expenses for Q1 2024 were $46.3 million, up$2.5 million or 5.7% from Q1 2023, with labor costs contributing to the increase[140]. - General and administrative expenses for Q1 2024 were $7.2 million, a slight increase of$0.1 million from Q1 2023, driven by higher labor and employee-related expenses[141]. Cash Flow and Liquidity - Net cash used in operating activities for Q1 2024 was $4.1 million, a decrease of$7.4 million compared to net cash provided in Q1 2023[152]. - Net cash provided by financing activities for Q1 2024 was $29.1 million, primarily from common stock issuance and notes payable proceeds[154]. - As of March 31, 2024, the company had$24.2 million in unrestricted cash, with additional liquidity expected from ongoing operations and financing activities[145]. - The company expanded its SOFR-based interest rate cap for $24.8 million at a cost of$0.6 million to manage interest rate exposure[146]. Management and Operations - The company managed ten communities on behalf of Ventas, generating management fees based on gross revenues[120].