Capital Senior Living Corporation (CSU) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $7.08 million, or $ 0.24 a share in the quarter, against a net profit of $2.87 million, or $0.10 a share in the last year period. On adjusted basis, net loss for the quarter stood at $0.68 million, or $0.02 a share compared with a net profit of $0.32 million, or $0.01 a share in the last year period.

Revenue during the quarter grew 6.72 percent to $111.44 million from $104.42 million in the previous year period. Total expenses were 96.69 percent of quarterly revenues, up from 94.56 percent for the same period last year. That has resulted in a contraction of 213 basis points in operating margin to 3.31 percent.

Operating income for the quarter was $3.69 million, compared with $5.68 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $37.99 million compared with $36.42 million in the prior year period. At the same time, adjusted EBITDA margin contracted 79 basis points in the quarter to 34.09 percent from 34.88 percent in the last year period.

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."

The company has spent $157.03 million cash to meet investing activities during the nine month period as against cash outgo of $104.66 million in the last year period.

Cash flow from financing activities was $94.20 million for the nine month period, up 39.21 percent or $26.53 million, when compared with the last year period.

Cash and cash equivalents stood at $29.83 million as on Sep. 30, 2016, down 13.99 percent or $4.85 million from $34.69 million on Sep. 30, 2015.

Working capital drops significantly

Capital Senior Living Corporation has witnessed a decline in the working capital over the last year. It stood at $2.06 million as at Sep. 30, 2016, down 67.59 percent or $4.30 million from $6.36 million on Sep. 30, 2015. Current ratio was at 1.03 as on Sep. 30, 2016, down from 1.10 on Sep. 30, 2015.

Days sales outstanding went up to 13 days for the quarter compared with 7 days for the same period last year.