2019 was a reset year for Dallas-based Capital Senior Living as the company focused on strengthening fundamentals and preparing for long-term success, according to President and CEO Kimberly Lody, who spoke Tuesday on the senior living provider’s fourth-quarter 2019 and year-end earnings call.
For 2019 overall, the company, which operates 126 independent living, assisted living and memory care communities throughout the U.S., reported a net loss of $36 million.
Revenue stabilized in the fourth quarter of 2019 at $108.7 million, consistent with the revenue contributions for like communities in the third quarter of 2019. In October of last year, Capital Senior Living sold two non-core independent living communities, which generated $14.8 million in net cash proceeds and eliminated $44.4 million of mortgage debt. Also that month, the firm entered into an agreement with Healthpeak for the early termination of an underperforming nine-community master lease scheduled to mature in October 2020.
“We expect that the hard work and investments made in 2019 will begin to pay off in 2020, with improved employee retention, stable or improved occupancy and revenue, improved net operating income, and improved cash flow,” Lody said.
| COVID-19 requires ‘significant adjustments’ to operating model, Capital Senior Living says |
In terms of the company’s response to the COVID-19 pandemic, the company said in a press release Tuesday that through mid-March 2020, it had delivered results in line with expectations. The company expects increases in labor costs due to the need for premium labor to supplement staffing, and increases in costs for medical supplies. To offset costs from the pandemic, Capital Senior Living has reduced spending on non-essential supplies, travel costs and all other discretionary items and has ceased all non-critical capital expenditure projects.
On Monday, the company’s board of directors approved a temporary suspension of equity awards for directors and officers.
Read more about the earnings call here.
