Capital Senior Living (CSU) Misses Q3 EPS by 10c

Capital Senior Living (NYSE: CSU) reported Q3 EPS of ($0.24), $0.10 worse than the analyst estimate of ($0.14). Revenue for the quarter came in at $111.4 million versus the consensus estimate of $112.73 million.

“We made steady progress in the third quarter on important operational and corporate objectives related to positioning the Company for sustained solid growth, including the announcement of the pending strategic purchase of four communities we currently lease, as we look to continue to increase our real estate ownership,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “The Company’s third quarter results were impacted by two non-controllable items, attrition and healthcare claims. We experienced very strong demand at our communities in the third quarter of 2016, with same-community move-ins increasing 5.4% over the third quarter of 2015; however, same-community attrition increased an unusually high 9.5% during the quarter, which impacted our occupancy and revenue. We also experienced an unusual spike in healthcare claims in the third quarter, resulting in a significant increase in the Company’s G&A expense.

“We continue to have a robust acquisition pipeline that allows us to increase our ownership of high-quality senior housing communities in geographically concentrated regions and generate meaningful increases in our key performance metrics and real estate value. We closed on the acquisitions of two communities during the third quarter and on the acquisition of an additional community in November. We are also pleased to announce the pending acquisition of four communities that we currently lease, and we continue to pursue additional opportunities.

“We believe that we are well positioned to create long-term shareholder value as a larger company with scale, competitive advantages and a substantially all private-pay business model in a highly fragmented industry that benefits from long-term demographics, need-driven demand, limited competitive new supply in our local markets, a strong housing market and a growing economy.”

For earnings history and earnings-related data on Capital Senior Living (CSU) click here.

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