| Capital Senior Living Corporation | |||
| Ticker: | CSU | 14160 Dallas Parkway, Suite 300 | |
| Exchange: | New York Stock Exchange | Dallas, TX 75240 | |
| Industry: | Service (SIC Code 8361) | (972) 770-5600 | |
| # of Employees: | 1558 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/12/97 | |
| U.S. Shares: | 9,000,000 | Offer Date: | 10/30/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $11.00 - $13.00 | |
| Primary Shares: | 9,000,000 | Offer Price: | $13.50 | |
| Secondary Shares: | 0 | Gross Spread: | $0.84 | |
| Offering Amount: | $108,000,000 | Selling: | $0.50 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | 18,367,347 |
| Manager | Tier | Phone |
| Lehman Brothers Incorporated | Lead Manager | (212) 526-8100 |
| J.C. Bradford & Co. | Co-manager | (615) 748-9347 |
| Smith Barney Inc. | Co-manager | (212) 723-7300 |
| Issuer's Law Firm: | Jenkens & Gilchrist |
| Bank's Law Firm: | Rogers & Wells |
| Auditor: | Ernst & Young |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $19.90 | $15.07 | $9.51 | Assets: | $56.63 |
| Net Income: | $1.24 | $0.73 | $0.78 | Curr Assets: | $15.64 |
| EPS: | Liabilities: | $37.84 | |||
| Prior EPS: | Curr Liabilities: | $10.50 | |||
| Cash Flow/Oper: | Equity: | $18.79 | |||
| Cash Flow/Fin: | Cash: | $13.20 | |||
| Cash Flow/Inv: | Working Cap: | $5.14 | |||
| Business Description |
| The company is the second largest provider of senior living services in the U.S. in terms of 1996 resident capacity. The company currently owns interests in and/or operates 33 communities in 17 states with a capacity of approximately 5,000 residents. The Company is currently developing 17 new communities which will have a capacity of approximately 3,130 residents and is expanding 12 existing communities to accommodate 994 additional residents. The Company also operates one home health care agency. Approximately 93% of the Company's revenues and reimbursable expenses are derived from private pay sources. At June 30, 1997, communities which the Company operates and in which it owns interests had an occupancy rate of approximately 95%, its managed communities had an occupancy rate of approximately 95%, and its leased community had an occupancy rate of approximately 95%. The Company and its predecessors have provided senior living services since 1990. The senior living services industry encompasses a broad and diverse range of living accommodations and health care services that are provided primarily to persons 65 years of age or older. For the elderly who require limited services, care in independent living ("IL") residences, supplemented at times by home health care, offers a viable option. Most independent living residences and retirement centers typically offer community living together with a basic services package consisting of meals, housekeeping, laundry, security, transportation, social and recreational activities and health care monitoring. |
| Competition |
| The senior living services industry is highly competitive, and the Company expects that all segments of the industry will become increasingly competitive in the future. Although there are a number of substantial companies active in the senior living services industry, the industry continues to be very fragmented and characterized by numerous small operators. The Company believes that the primary competitive factors in the senior living services industry are: (i) reputation for and commitment to a high quality of care; (ii) quality of support services offered (such as home health care and food services); (iii) price of services; (iv) physical appearance and amenities associated with the communities; and (v) location. The Company competes with other companies providing independent living, assisted living, skilled nursing, home health care, and other similar service and care alternatives, some of whom may have greater financial resources than the Company. Because seniors tend to choose senior living communities near their homes, the Company's principal competitors are other senior living and long-term care communities in the same geographic areas as the Company's communities. The Company also competes with other health care businesses with respect to attracting and retaining nurses, technicians, aides, and other high quality professional and non-professional employees and managers. |
| Business Plan |
| The company's operating strategy is to provide high quality senior living services at an affordable price to its residents, while achieving and sustaining a strong, competitive position within its chosen markets, as well as to continue to enhance the performance of its operations. The company plans on implementing its operating strategy principally through the following methods: (I) Continue to Provide Broad Range of High-Quality Personalized Care, (ii) Offer Services Across a Range of Pricing Options, (iii) Maintain and Improve Occupancy Rates, (iv) Improve Operating Efficiencies, (v) Emphasize Employee Training and Retention and (vi) Utilize Comprehensive Information Systems. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to compete the Formation Transactions; to fund development activities; to fund the potential acquisition of additional interests in the company's existing senior living communities; and for general corporate purposes including working capital. |
| Name of Shareholder | % Owned Before | % Owned After |
| Jeffrey L. Beck | 47.60% | 24.30% |
| James A. Stroud | 47.60% | 24.30% |
| Officer Name | Title | Age |
| Jeffrey L. Beck | Co-Chairman and Chief Executive Officer | 52 |
| James A. Stroud | Co-Chairman, Chief Operating Officer, and Secretary | 47 |
| Kathleen L. Granzberg | Controller - Corporate | 36 |
| Robert F. Hollister | Controller - Property | 41 |
| Keith N. Johannessen | President | 40 |
| Lawrence A. Cohen | Vice Chairman and Chief Finanical Officer | 43 |
| Charles W. Allison | Vice President - Development | 48 |
| Rob L. Goodpaster | Vice President - National Marketing | 44 |
| David W. Beathard | Vice president - Operations | 40 |
| David R. Brickman | Vice President and General Counsel | 39 |