Capital Senior Living President and CEO Kimberly S. Lody

Capital Senior Living said it incurred approximately $1.4 million in COVID-related costs in the third quarter, making its 2020 COVID-related cost total to date $4.6 million. Total operating expenses for the quarter were $65.2 million.

COVID-19 expenses were related to the procurement of additional personal protective equipment, cleaning and disposable food service supplies, enhanced cleaning, infection control, environmental sanitation costs, increased labor expenses for hazard pay at certain communities with COVID-19-positive residents, and testing of residents and employees.

To mitigate those new expenses, the company said it has reduced spending on non-essential supplies, travel and other discretionary items.

Aid received from federal, state governments

Capital said it received $100,000 in COVID-19 relief funds from state relief programs in Wisconsin and Ohio in the third quarter to offset COVID-19-related costs incurred by communities in those states. The company also has been approved for relief from a CARES Act Provider Relief Fund for eligible Medicaid providers and expects to receive approximately $8 million in the fourth quarter.

Additionally, the Capital is using the payroll tax deferral program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to defer the employer portion of payroll taxes from April through December 2020. Half of the deferred payroll taxes will be due by December 2021, with the other half due by December 2022.

In the third quarter, the company deferred $2.3 million in payroll taxes under the program, bringing the total of deferred payroll taxes to $5 million through the first nine months of 2020.

Move-ins improving

“I’m pleased that all of our communities are accepting new residents and have returned to more normalized operations while also diligently following state and federal guidelines,” President and CEO Kimberly S. Lody said.

The number of move-ins in the third quarter as compared with the third quarter of 2019 improved to 88%, up from second quarter 2020 move-ins of 75% as compared to the second quarter of 2019, Capital said.

Total occupancy in the third quarter was 76.1%, a 5.2% year-over-year decrease that largely was due to the effects of COVID-19, Capital said. Total occupancy declined 1.5% in the third quarter compared with the previous quarter.

Same-community occupancy in the third quarter was 78%, a decrease of 4.6% compared with the third quarter of 2019 and 1.9% compared with the second quarter of 2020. Same-community revenue in the third quarter was $77.8 million, a decrease of 4.8% versus the third quarter of 2019, primarily due to the effect of COVID-19 on the company’s occupancy since March.