Capital Senior Living(SNDA) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Sonida Senior Living reported strong Q2 2025 results, with resident revenue increasing 29.7% and net loss significantly reduced to $1.6 million, driven by rent growth and new community integration - CEO Brandon Ribar highlighted strong community NOI growth driven by rent increases and successful integration of recent acquisitions, positioning the company for future growth[3] Q2 2025 Key Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Resident Revenue | $81.8 | $63.1 | +$18.7 (+29.7%) | | Net Loss (attributable to Sonida) | $1.6 | $9.8 | -$8.2 | | Adjusted EBITDA | $14.1 | $11.4 | +$2.7 (+23.7%) | | Cash Flow from Operations (YTD) | $12.8 | -$1.6 | +$14.4 | - The company expanded its portfolio by acquiring two senior housing communities in May and June 2025, located in Florida (64 units) and Georgia (88 units)[5] Financial Performance The company's Q2 2025 financial performance showed significant top-line growth to $93.5 million, driven by acquisitions and higher rent rates, with substantial 'Other income' narrowing the net loss and positive operating cash flow Results of Operations Q2 2025 resident revenue increased 29.6% to $81.8 million due to new communities and higher rents, while operating expenses rose 33.5% to $61.4 million, with $9.1 million in 'Other income' significantly reducing net loss to $1.6 million - Resident revenue for Q2 2025 increased by $18.7 million (29.6%) year-over-year, primarily due to increased occupancy, higher average rent rates, and the addition of 18 operating communities acquired in 2024 and 2025[8] - Operating expenses for Q2 2025 rose by $15.4 million (33.5%) year-over-year, with $12.5 million attributable to newly acquired communities and $2.9 million from increased labor and other costs in the existing portfolio[9] - Other income for Q2 2025 was $9.1 million, which included $8.8 million from gross employee retention credits under the CARES Act, significantly impacting the bottom line[13] - The company reported a net loss attributable to Sonida shareholders of $1.6 million for Q2 2025, a substantial improvement from the $9.8 million loss in Q2 2024[14] Liquidity and Capital Resources As of June 30, 2025, Sonida held $14.1 million in cash and $32.9 million available on its credit facility, with year-to-date operating cash flow turning positive at $12.8 million, primarily sourced from operations, credit, and potential asset sales Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $12,755 | $(1,624) | $14,379 | | Net cash used in investing activities | $(37,471) | $(42,715) | $5,244 | | Net cash from financing activities | $19,326 | $50,372 | $(31,046) | - As of June 30, 2025, the Company had $75.0 million outstanding under its senior secured revolving credit facility, with an additional $32.9 million available for borrowing[15] - The company's principal sources of liquidity include cash flows from operations, its credit facility, and potential proceeds from equity offerings, debt refinancings, or asset sales[16] Consolidated Financial Statements The consolidated financial statements show Q2 2025 total revenues increased 33.2%, with total assets at $849.8 million and liabilities at $736.0 million as of June 30, 2025, reflecting a positive shift in operating cash flow Condensed Consolidated Statement of Operations (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total revenues | $93,525 | $70,207 | | Total expenses | $95,802 | $71,605 | | Net income (loss) | $(1,973) | $(9,816) | | Net income (loss) attributable to Sonida shareholders | $(1,563) | $(9,816) | | Diluted net loss per common share | $(0.16) | $(0.86) | Condensed Consolidated Balance Sheet Highlights | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $63,451 | $64,089 | | Property and equipment, net | $750,261 | $739,884 | | Total assets | $849,772 | $841,921 | | Total current liabilities | $74,583 | $75,615 | | Long-term debt, net | $660,163 | $635,904 | | Total liabilities | $736,006 | $712,312 | | Total Sonida shareholders' equity | $56,693 | $71,785 | Operational Metrics & Non-GAAP Measures Sonida's same-store portfolio showed steady Q2 2025 growth, with weighted average occupancy increasing 40 basis points to 86.5% and RevPAR/RevPOR rising 5.0% and 4.4% respectively, supported by non-GAAP measures like NOI and Adjusted EBITDA for core performance insights Same-Store Portfolio Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Weighted Average Occupancy | 86.5% | 86.1% | +40 bps | | RevPAR (per unit) | $3,797 | - | +5.0% | | RevPOR (per unit) | $4,388 | - | +4.4% | | Community NOI (in millions) | $16.7 | $16.4 | +1.8% | | Community NOI Margin | 28.0% | 29.0% | -100 bps | Same-Store Portfolio Performance (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | RevPAR (per unit) | $3,797 | - | +2.3% | | RevPOR (per unit) | $4,388 | - | +2.7% | | Community NOI (in millions) | $16.7 | - | +$0.6 | | Community NOI Margin | 28.0% | 27.5% | +50 bps | - The company uses non-GAAP measures like Net Operating Income (NOI) and Adjusted EBITDA to help investors understand core operational performance by excluding items related to financing, capital structure, and non-recurring events[37][38] Non-GAAP Reconciliations The company provides detailed non-GAAP reconciliations, showing Q2 2025 Same-Store Community Net Operating Income at $16.7 million and Adjusted EBITDA at $14.1 million, both reconciled from the net loss by excluding various adjustments Adjusted EBITDA Reconciliation (Q2 2025 vs Q2 2024) | Metric (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net loss | $(1,973) | $(9,816) | | Adjustments (Depreciation, Interest, etc.) | $16,066 | $21,166 | | Adjusted EBITDA | $14,093 | $11,350 | Same-Store Community NOI Reconciliation (Q2 2025) | Metric (in thousands) | Amount | | :--- | :--- | | Net loss | $(1,973) | | Adjustments (G&A, Interest, Depreciation, etc.) | $23,209 | | Consolidated community NOI | $21,236 | | Less: NOI for non same-store communities | $(4,516) | | Same-store community NOI | $16,720 | Business Updates & Outlook Post-quarter, Sonida saw positive momentum with July same-store occupancy reaching 88.2%, secured a new $137.0 million term loan for financial flexibility, and is expanding with a $15.6 million community acquisition in Texas - Same-store community occupancy for July 2025 reached 88.2%, an increase of 60 basis points from June, indicating positive operational momentum[6] - On August 7, 2025, the company entered into a new $137.0 million senior secured term loan with Ally Bank, with an initial draw of $122.0 million. The loan has a 36-month maturity and a variable interest rate of SOFR plus 2.65%[6] - In July 2025, the company signed a purchase and sale agreement to acquire a community in Texas for $15.6 million, contingent upon customary closing conditions[6] Appendix The appendix provides supplementary information, including investor conference call details, a corporate profile of Sonida Senior Living, and definitions for key operational metrics like RevPAR, RevPOR, and Same-Store Community Portfolio Company Profile Sonida Senior Living, based in Dallas, is a prominent owner, operator, and investor in senior housing, with a portfolio of 96 communities across 20 states and a capacity of approximately 10,150 residents as of June 30, 2025 - As of June 30, 2025, Sonida owned, managed, or invested in 96 senior housing communities across 20 states, with an aggregate capacity of about 10,150 residents[21] Definitions This section defines key performance indicators such as RevPAR (Revenue Per Available Unit) and RevPOR (Revenue Per Occupied Unit), along with the 'Same-Store Community Portfolio' for consistent year-over-year comparisons - RevPAR is defined as resident revenue divided by the weighted average number of available units over the period[31] - RevPOR is defined as resident revenue divided by the weighted average number of occupied units over the period[32] - The Same-Store Community Portfolio consists of communities that have been consolidated and operational for the full year in both the current and prior comparison periods, excluding recent acquisitions and properties undergoing repositioning[33] Conference Call Information Sonida Senior Living will host a conference call on August 11, 2025, at 11:00 a.m. Eastern Time to discuss its Q2 2025 financial results, with a webcast and replay available - The conference call to discuss Q2 2025 financial results is scheduled for August 11, 2025, at 11:00 a.m. Eastern Time[19]