Capital Senior Living(US:SNDA)2023-08-14 17:10Revenue and Occupancy - For the three months ended June 30, 2023, the Company generated resident revenue of approximately $57.0 million, a 9.5% increase from $52.0 million in the same period of 2022 [127]. - The weighted average occupancy for the 62 communities owned by the Company was 83.9% for the three months ended June 30, 2023, compared to 82.7% for the same period in 2022, indicating continued recovery [128]. - The average monthly rental rate for the communities for the quarter ended June 30, 2023, was 8.3% higher compared to the same quarter in 2022 [128]. - Resident revenue for Q2 2023 was $57.0 million, an increase of $5.0 million or 9.5% compared to Q2 2022, primarily due to increased occupancy and average rent rates [149]. - The Company generated resident revenue of approximately $113.6 million for the six months ended June 30, 2023, representing a 10.5% increase from $102.8 million in the same period of 2022 [127]. - Resident revenue for the six months ended June 30, 2023, was $113.6 million, an increase of $10.8 million or 10.5% compared to the same period in 2022 [155]. Grants and Financial Support - The Company received approximately $0.4 million in various state grants during the quarter ended June 30, 2023, and $2.4 million for the six months ended June 30, 2023, due to financial distress impacts of COVID-19 [126]. - The company received grants of $2.4 million in the six months ended June 30, 2023, compared to $1.2 million in the same period of 2022 due to COVID-19 impacts [168]. Operating Expenses - Operating expenses for Q2 2023 were $44.7 million, an increase of $3.2 million or 7.7% compared to Q2 2022, driven by a $2.3 million increase in labor and employee-related expenses [151]. - Operating expenses for the six months ended June 30, 2023, were $88.5 million, an increase of $5.1 million or 6% compared to the same period in 2022 [157]. - General and administrative expenses for Q2 2023 were $6.6 million, a decrease of $2.8 million compared to Q2 2022, mainly due to a reduction in stock-based compensation [152]. - General and administrative expenses decreased to $13.6 million for the six months ended June 30, 2023, down $4.1 million from $17.7 million in 2022 [158]. - Managed community reimbursement revenue for Q2 2023 was $5.4 million, a decrease of $1.6 million compared to Q2 2022, due to managing fewer communities [150]. - Managed community reimbursement revenue for the six months ended June 30, 2023, was $10.3 million, a decrease of $3.8 million compared to the same period in 2022, due to managing fewer communities [156]. - Managed community reimbursement expense decreased to $10.3 million for the six months ended June 30, 2023, a decrease of $3.8 million from $14.1 million in 2022 [159]. Debt and Financing - The Company entered into a forbearance agreement with Fannie Mae, which will significantly reduce debt service payments and improve working capital [126]. - The terms of the Loan Modification Agreement with Fannie Mae include extending maturities on 18 community mortgages to December 2026 and reducing the monthly interest rate by 1.5% for 12 months [132]. - The Company entered into a $13.5 million equity commitment agreement with Conversant Investors for a term of 18 months, with a commitment fee of $675,000 [137]. - The Refinance Facility includes an initial term loan of $80.0 million, with an additional $10.0 million available as delayed loans upon meeting certain financial covenants [139]. - Interest expense for Q2 2023 was $8.6 million, an increase of $0.7 million compared to Q2 2022, primarily due to increased interest rates on variable rate mortgages [154]. - Interest expense increased to $17.4 million for the six months ended June 30, 2023, up $1.9 million from $15.5 million in 2022 due to higher interest rates [160]. - The Company incurred costs of $0.2 million related to debt restructuring for the six months ended June 30, 2023 [133]. Cash Flow and Liquidity - Net cash provided by operating activities was $5.5 million for the six months ended June 30, 2023, an increase of $7.6 million from net cash used of $2.1 million in 2022 [168]. - Net cash used in investing activities was $9.4 million for the six months ended June 30, 2023, compared to $24.5 million in 2022 [169]. - Net cash used in financing activities was $6.3 million for the six months ended June 30, 2023, down from $19.9 million in 2022 [170]. - The company had approximately $7.2 million of unrestricted cash balances on hand as of June 30, 2023, with future liquidity dependent on operating performance and economic conditions [163]. Workforce Challenges - The Company is facing workforce challenges, requiring the use of overtime, shift bonuses, and contract labor to support its senior living communities [130]. Gain on Debt Extinguishment - Gain on extinguishment of debt was $36.3 million for the six months ended June 30, 2023, compared to a loss of $0.6 million in the same period of 2022 [161].