 Provides Update Related to COVID-19DALLAS, Aug. 06, 2020 GLOBE NEWSWIRE -- Capital Senior Living Corporation the Company NYSE: CSU, one of the nations largest operators of senior housing communities, announced today operating and financial results for the second quarter ended June 30, 2020. Recent Highlights Consolidated occupancy declined 240 bps in the second quarter of 2020 as compared to the first quarter of 2020 due to the impacts of COVID-19. The Company incurred 2.9 million of incremental COVID-19-related costs, which were mitigated by reductions in other expenses. The Company entered into short-term forbearance agreements with certain lenders, which provided 5.7 million of debt service payment deferrals in the second quarter of 2020. Agreements reached with REIT partners in the first quarter of 2020 reduced facility lease expense, resulting in a lesser Net Loss for the second quarter of 2020, which declined from 47.2 million in the first quarter of 2020 to 12.8 million in the second quarter of 2020, and a 0.8 million increase in Adjusted CFFO in the second quarter of 2020 as compared to the first quarter of 2020. As the next step in the Companys plan to restructure its balance sheet, the Company initiated a process in July 2020 which is intended to transfer the operations and ownership of 18 communities that are either underperforming or are in underperforming loan pools to Fannie Mae, the holder of non-recourse debt on such communities. The transfer will reduce the Companys debt by 216.3 million and improve annual cash flow by approximately 10 million. The Company is in negotiations with Fannie Mae related to an agreement that is intended to assure the orderly transition of such communities.During the second quarter we continued our intense operational focus on mitigating the effects of COVID-19 while remaining steadfast in our commitment to protect and care for our residents and employees, said Kimberly S. Lody, President and Chief Executive Officer. While occupancy declined during the second quarter, our physical occupancy trend improved each month, and in June we experienced positive net move-ins. In addition, our Adjusted CFFO increased sequentially in the second quarter due to reductions in facility lease expense, an outcome of the agreements reached with our REIT partners earlier this year. We announced today that we have made the decision to turn back 18 communities to Fannie Mae. These communities have been heavily impacted by the current COVID environment. With their unsustainably high debt load and generally difficult operating conditions, it did not make sense for us to continue incurring steep losses after debt service. While a difficult decision, turning back these communities to improve our operating performance and liquidity is in the best interest of the Company and its shareholders. We are working together with Fannie Mae to ensure a smooth transition of these communities to other operators.Ms. Lody continued, While we expect our financial results will continue to be impacted by the pandemic for the next several months, we believe that the strength of our operations teams, coupled with actions to improve our financial foundation, will further facilitate our operational turnaround as market conditions stabilize.Financial Results - Second QuarterFor the second quarter of 2020, the Company reported revenue of 101.5 million, compared with revenue of 113.1 million in the second quarter of 2019. The disposition of five communities during or since the second quarter of 2019 accounted for 5.8 million of the decrease, and the conversion of six formerly leased communities to management agreements effective March 1, 2020, accounted for 3.3 million of the decrease. Revenue in the second quarter of 2020 includes 0.5 million of COVID-19 relief related to Medicaid residents at one of our North Carolina communities. Total occupancy in the second quarter of 2020 was 77.6, a decrease of 480 basis points as compared to the second quarter of 2019, largely due to the impacts of COVID-19. Monthly average rent was 3,749, an increase of 3.3 as compared to the second quarter of 2019. As compared to the first quarter of 2020, total occupancy declined 240 basis points in the second quarter. Operating expenses for the second quarter of 2020 were 71.3 million, a decrease of 3.1 million as compared to the second quarter of 2019. The second quarter of 2019 included 3.9 million of operating expenses related to five communities disposed of during or since the second quarter of 2019 and 2.0 million for the six formerly leased communities that were converted to management agreements effective March 1, 2020. Also, the Company had 1.2 million in business interruption credits related to the Companys two communities previously impacted by Hurricane Harvey in the second quarter of 2019 but did not have any such credits in the second quarter of 2020. Operating expenses for the second quarter of 2020 included 2.9 million of costs directly related to COVID-19, primarily for employee hazard pay, specialized sterilization services and personal protective equipment. General and administrative expenses for the second quarter of 2020 were 6.5 million versus 6.6 million in the second quarter of 2019. Excluding transaction and conversion costs in both periods, general and administrative expenses decreased 0.8 million in the second quarter of 2020 versus the second quarter of 2019 due to lower healthcare claims under the Companys self-insured healthcare plan. As a percentage of revenues under management, general and administrative expenses, excluding transaction and conversion costs, were 5.4 in the second quarter of 2020.Net loss for the second quarter of 2020 was 12.8 million as compared to 12.5 million for the second quarter of 2019.Adjusted EBITDAR for the second quarter of 2020 was 23.9 million. Adjusted EBITDAR excluding COVID-19 relief and expenses was 26.3 million. Adjusted CFFO for the second quarter of 2020 was 0.5 million. Adjusted CFFO excluding COVID-19 relief and expenses was 2.9 million. See Non-GAAP Financial Measures below. Same Community ResultsSame community results exclude the five non-core communities the Company has disposed of during or since the second quarter of 2019 and the six Healthpeak communities converted to management agreements effective March 1, 2020. Same-community results also exclude COVID-19 relief of 0.5 million and COVID-19 expenses of 2.9 million in the second quarter of 2020.Same-community revenue in the second quarter of 2020 was 98.9 million, a decrease of 4.4 versus the second quarter of 2019, primarily due to the impact of COVID-19 on the Companys occupancy in the second quarter of 2020. Same-community occupancy in the second quarter was 77.6, a decrease of 460 basis points as compared to the second quarter of 2019 and average monthly rent was 3,729, an increase of 0.6 as compared to the second quarter of 2019. As compared to the first quarter of 2020, same-community occupancy declined 230 basis points in the second quarter. Same-community operating expenses decreased 0.3 in the second quarter of 2020 versus the second quarter of 2019. Same store labor costs, including benefits, increased 2.1 million, or 4.9, while all other expense categories declined 2.4 million on a combined basis. Contract labor decreased 1.4 million, with other significant decreases in food, advertising and promotion, repairs and maintenance, and supplies. Same-community net operating income decreased 13.9 in the second quarter of 2020 when compared with the second quarter of 2019. Same-community net operating income decreased 0.8 million, or 2.7, in the second quarter of 2020 as compared to the first quarter of 2020. COVID-19 UpdateSince the onset of COVID-19, the Company has responded swiftly, thoughtfully and aggressively to the unprecedented challenges raised by the pandemic. The Company has relentlessly focused on the safety and wellbeing of its residents, employees and caregivers. In an effort to protect its residents and employees and slow the spread of COVID-19, and in response to quarantines, shelter-in-place orders and other limitations imposed by federal, state and local governments, the Company has restricted or limited access to its communities, including limitations on in-person prospective resident tours and, in certain cases, new resident admissions. Access restrictions have resulted in declines in the occupancy levels at the Companys communities, which has, and will continue to, negatively impact revenues and operating results in the near- to mid-term. During the second half of March, new resident leads, visits, and move-in activity began to decline compared to typical levels. This trend intensified in April and began to adversely impact occupancy as move-ins for the month of April were approximately 45 of average pre-COVID move-ins. The Companys consolidated senior housing occupancy decreased from 79.9 at March 31, 2020, to 78.7 at April 30, 2020. While the number of move-ins increased by 51 in May as compared to April, move-ins for the month remained significantly lower than normal at approximately 68 of average pre-COVID move-ins. Occupancy declined to 77.4 at May 31, 2020. June move-ins returned to pre-COVID levels and exceeded move-outs for the month. Occupancy at June 30, 2020, increased to 77.7. During the COVID crisis, the Company has incurred significant additional operating costs and expenses in order to implement enhanced infection control protocols and otherwise care for its residents. 