Capital Senior Living reiterated its belief that conditions related to COVID-19 “raise substantial doubt about the company’s ability to continue as a going concern” in a document filed Monday with the Securities and Exchange Commission.
Capital Senior Living plans to transfer operations and ownership of 18 senior living communities to Fannie Mae, the company announced Thursday. The move follows several steps Capital announced in May “to improve its liquidity position and address uncertainty about its ability to continue as a going concern.”
Assisted living communities would be required to report confirmed or suspected cases of COVID-19 to federal, state and local health officials, as well as to residents and their families — and would have one day to do it — under legislation announced by two U.S. senators and one congresswoman. The report on which the bill is based, however, “falls short” and is “misleading,” according to one association representing operators.
Although COVID-19’s negative effects present “substantial” concerns about the company’s future, Capital Senior Living executives said Thursday that the company’s turnaround strategy creates “a path to long-term value.”
COVID-19’s negative effects on occupancy, revenues and expenses “raise substantial doubt about the company’s ability to continue as a going concern,” Capital Senior Living said Thursday in a press release issued before its first-quarter earnings call.
Capital Senior Living files registration statement for issuance of up to $150 million in securities … First quarter senior living M&A activity falls to lowest in two years … Vincent Development receives approval to develop Minnesota senior living facilityn … Holland Construction building $39 million seniors housing facility near St. Louis
Assisted living facilities have come under increased scrutiny during the COVID-19 pandemic. Challenges include deepening financial pressures, sicker residents, limited oversight and too few employees. Home to more than 800,000 people nationwide, the facilities now face a crisis that could force some operators into bankruptcy, roil the industry and even close some facilities, Kaiser Health News reported Thursday.
Capital Senior Living has made “significant adjustments” to its operating model in response to the COVID-19 pandemic, Chief Operating Officer Brandon Ribar said Tuesday on the company’s fourth-quarter and full-year 2019 earnings call.
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.
In light of the current economic conditions, the Board of Directors for Capital Senior Living on Monday approved a temporary suspension of equity awards to any director or officer of the company. The Compensation Committee also reported that it would not increase the annual base salaries of Capital Senior Living’s executive officers for 2020.
