Capital Senior Living Corp. (NYSE:CSU) Q1 2019 Earnings Conference Call Transcript

May 09, 2019 • 10:00 am ET

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Capital Senior Living Corp. (NYSE:CSU) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Capital Senior Living First Quarter 2019 Earnings Release Conference Call. Today's conference is being recorded.

All statements today, which are not historical facts, may be deemed to be forward-looking statements within the meaning of the federal securities laws. These statements are made as of today's date and the Company expressly disclaims any obligation to update these statements in the future. Actual results and performance may differ materially from forward-looking statements. Certain of these factors that could cause actual results to differ are detailed in the earnings release the Company issued earlier today as well as in the reports the Company filed with the SEC from time to time including the risk factors contained in the annual report on Form 10-K and quarterly report on Form 10-Q. Please see today's press release for the full safe harbor statement, which may be found at capitalsenior.com/investor-relations and was furnished in an 8-K filing this morning.

Also please note that during this call, the Company will present non-GAAP financial measures. For reconciliations of each non-GAAP measure from the most comparable GAAP measure, please also see today's press release.

At this time, I would like to turn the call over to Capital Senior Living's President and CEO Ms. Kimberly Lody. Please go ahead.

Executive
Kim Lody

Thank you, and good morning, everyone. Welcome to Capital Senior Living's conference call to discuss our first quarter 2019 results. Along with today's press release and comments, we have also posted a new investor presentation to our website where you can find additional information about the Company and our strategy. I encourage you to access those materials.

Last quarter, we talked about our renewed commitment and focus on two top priorities, driving consistent, predictable and improved operating performance and strengthening the Company's financial foundation. Today, I am pleased to share an update on our progress, provide additional detail on various initiatives and reaffirm our commitment to growing occupancy and achieving top line growth.

Let's first focus on the operating performance. While we still have a lot of work ahead, we are now executing on our plan and I am encouraged by our progress. On a consolidated basis, we delivered occupancy and NOI margin in Q1 that are essentially consistent with the previous quarter's metric with occupancy of 83.1% and NOI margin of 35.1%. Our same-store occupancy was also in line with Q4 at 84.4%. While these results are not yet at the levels we expect, the quarter-to-quarter consistency is an important indicator that the business is beginning to stabilize.

Considering that the first quarter of the year is typically the most difficult due to winter-related illnesses and corresponding move-outs, we are encouraged that Capital Senior Living's sequential quarterly occupancy development was consistent with that of the overall industry, which was largely unchanged as reported in the Q1 net data.

As part of our continued focus on improving operational performance, we previously outlined a number of immediate and impactful initiatives. While I won't go into each of those