Capital Senior Living Corporation Reaches 100th Community Milestone

Fri Dec 21, 2012 6:00am EST

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http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20121221:nBw215077a

Acquisition of Two Communities for $32.8 Million;

Increases CFFO $0.07 per share


DALLAS--(Business Wire)--
Capital Senior Living Corporation (the "Company") (NYSE:CSU), one of the
country`s largest operators of senior living communities, today announced a
significant milestone for the Company with the acquisition of its 100th
community. The Company is completing the acquisition of an additional senior
living community; the purchase price for the two communities totals $32.8
million. These communities are in Missouri and Ohio, enhancing the Company`s
existing operations in these states. The levels of care offered at these
communities include independent living, assisted living and memory care. The two
communities are being financed with approximately $24.6 million of 10-year fixed
rate debt that is non-recourse to the Company with a blended interest rate of
4.40%. 

Highlights of these transactions include:

* Additional Cash From Facility Operations ("CFFO") of $1.8 million, or $0.07
per share. 
* Incremental earnings of $1.1 million, or $0.04 per share. 
* Increases annual revenue by approximately $9.2 million. 
* Average occupancy approximately 91%. 
* Average monthly rents are approximately $2,900.

With the closing of these two communities, the Company will have completed in
2012 the acquisition of 17 communities for a combined purchase price of $181.3
million. These communities are expected to generate $0.34 of CFFO and 18%
cash-on-cash return on invested capital in the first 12 months of ownership. 

The Company is conducting due diligence on additional transactions consisting of
high-quality senior living communities in regions with extensive existing
operations. Subject to completion of due diligence and customary closing
conditions, the Company expects to acquire additional communities in the first
quarter of 2013. 

"We take great pride in achieving this milestone of 100 communities for the
Company, our residents and our shareholders," said Lawrence A. Cohen, Chief
Executive Officer of the Company. "These acquisitions continue the successful
execution of our strategic plan for accretive growth and significantly enhance
shareholder value. We continue our geographic concentration by acquiring
high-quality senior living communities in existing markets that generate
meaningful increases in CFFO and earnings. Our competitive strengths enable us
to execute on attractive acquisitions and benefit from historically low interest
rates. The exceptional returns generated by these acquisitions complement the
positive results we are achieving in our operations with increases in occupancy
and average monthly rents. As the value leader in providing quality seniors
housing and care at reasonable prices, we are well positioned to make further
gains as a substantially all private-pay business in an industry that benefits
from need-driven demand, limited new supply and a recovering housing market." 

ABOUT THE COMPANY

Capital Senior Living Corporation is one of the nation`s largest operators of
residential communities for senior adults. The Company`s operating philosophy
emphasizes a continuum of care, which integrates independent living, assisted
living and home care services, to provide residents the opportunity to age in
place. With these transactions, the Company will operate 101 senior living
communities in geographically concentrated regions with an aggregate capacity of
approximately 13,600 residents. 

The forward-looking statements in this release are subject to certain risks and
uncertainties that could cause results to differ materially, including, but not
without limitation to, the Company`s ability to find suitable acquisition
properties at favorable terms, financing, licensing, business conditions, risks
of downturns in economic conditions generally, satisfaction of closing
conditions such as those pertaining to licensure, availability of insurance at
commercially reasonable rates, and changes in accounting principles and
interpretations among others, and other risks and factors identified from time
to time in our reports filed with the Securities and Exchange Commission.

This release contains certain financial information not derived in accordance
with generally accepted accounting principles (GAAP), including adjusted CFFO,
adjusted CFFO per share and other items.The Company believes this information is
useful to investors and other interested parties.Such information should not be
considered as a substitute for any measures derived in accordance with GAAP, and
may not be comparable to other similarly titled measures of other companies.

Capital Senior Living Corporation
Ralph A. Beattie, 972-770-5600
Chief Financial Officer 



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