Capital Senior Living (CSU) Tops Q1 EPS by 36c, Revenues Miss

Capital Senior Living (NYSE: CSU) reported Q1 EPS of ($0.36), $0.36 better than the analyst estimate of ($0.72). Revenue for the quarter came in at $106.13 million versus the consensus estimate of $107.5 million.

Recent Highlights

• Operating expenses decreased $3.3 million in the first quarter of 2020 as compared to the fourth quarter of 2019, resulting in sequential improvements in several of the Company’s key financial metrics.
• Rent payments on 31 underperforming leased communities were reduced by 25% effective February 1, and six underperforming leased communities were converted to management agreements effective March 1, as a result of agreements reached with the Company’s landlords in the first quarter of 2020 for early termination of its Master Leases.
• The Company sold an underperforming non-core community on March 31, 2020, generating $6.9 million in net cash proceeds.
• Short-term forbearance agreements were reached with certain lenders resulting in lower debt payments beginning in April 2020.

“The sequential improvement in key financial metrics in the first quarter, along with lower lease and debt payments, has enabled us to focus our efforts on meeting the incremental challenges posed by the COVID-19 pandemic,” said Kimberly S. Lody, President and Chief Executive Officer. “During these last eight weeks, our community-level and central support teams have steadfastly cared for our residents’ physical, cognitive, and emotional well-being, and I am so proud of their dedication and heroism during this unprecedented time. While our financial results will be impacted by the pandemic for the next several months, we look forward to continuing our operational turnaround as market conditions stabilize.”

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

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