Our Story Capital Senior Living Corporation 2001 Summary Annual Report Capital Senior Living has a long-term strategy founded on solid operating principles, supported by unexcelled management strength and fueled by unquestionable demographic trends that will drive demand for our senior living properties. In 2002, we enter a time of opportunity and potential growth. While our industry has recently experienced a period of capital constraint and consolidation, we have used this time wisely and have prepared well to take advantage of the opportunities now before us. This is an exciting time for our Company. America’s senior population continues its rapid expansion, and Independent Living continues to surpass both Skilled Nursing and Assisted Living as the leading housing preference for seniors. As such, demand for our services continues to rise. Our Company is strong. Our prospects are promising. Here is our story. CONTENTS: Shareholders’ Letter pg. 15 / Financial Results pg. 18 L A W R E N C E A . C O H E N – Chief Executive Officer (left) J A M E S A . S T R O U D – Chairman of the Company (right) My mom taught me how to quilt, just like her mother had taught her. Since all my children were boys, I never expected to have anyone to teach. So I was really excited when my granddaughter said she’d like to learn, and I’m proud to have the first quilt she made all by herself. —Edith, age 82 Our properties offer a high-quality living environment complete with 24-hour staffing, housekeeping, social activities, delicious restaurant-style meals and numerous other amenities for the enjoyment and well-being of our residents. – 5 – About 85 percent of our residents live independently and require minimal assistance with activities for daily living. My wife gave me this watch on our wedding day. With care, both my marriage and my watch have kept on ticking for over 50 years. Every day you have to take care of the things that matter–that’s what makes them last. —George, age 84 – 7 – I’ve never been able to have a real cat since I was allergic to them. Now I have a whole collection of cats, each precious for a different reason. I used to teach school, and one of my students gave me the first one. It’s more than a collec- tion of cats–it’s a collection of special memories. —Lucille, age 79 Our management team has 134 combined years of industry experience. – 9 – Our national platform provides a solid foundation for growth and is an important factor in attracting management contracts. Most people remember vacations by looking at photo albums. I just look in the cabinet at my plates. Some are from trips we took with the children; others were trips for the two of us. You really get a sense for the things that make this country great when you travel to all those places. —Margaret, age 86 – 11 – For awhile, I think, I held most of the records at my school for all the sports that I played. But it was the team accom- plishments that mattered to me the most. There’s no joy in playing your best on a day when the team loses. —Silas, age 81 Capital Senior Living has a successful record of achieving growth through multiple avenues: fulfilling the leasing potential of existing properties, acquiring new properties, expanding existing properties and attracting management contracts. – 13 – The strength of our management team, the quality of our properties and a long-term strategy based on substantiated demand have delivered our 10th consecutive year of profitability. Our Year To our fellow shareholders If the past prepares you for the future, then our company, Capital Senior Living, is well established for the exciting opportunities we see before us. A seasoned company with nearly a decade of continuous profitability, we entered 2001 with specific strate- gic initiatives. These initiatives were focused on strengthening our company during a period of industry-wide capital constraint and restructuring. Having expanded our resident capacity in previous years, we focused on leasing our existing properties, and emphasized earnings from recurring operations. The successful results of these initiatives are clearly demon- strated in our 2001 results. of the Capital Senior Living team that made these results possible. With similar resident capacity in 2001 to what we had in 2000, we increased revenues over 18 percent to $70.5 million, compared to $59.7 million in 2000. Our net income in 2001 was $2.8 million or 14 cents a share compared to six cents per share in 2000. The 2001 earnings included approximately three cents from the disposition of non-core assets, part of our initiative to increase our liquidity. The remaining 11 cents per share, or an 83 percent increase over 2000 earnings, was directly a result of progress toward our financial and operating goals. During the year, our same community revenue increased 6.1 percent. We are extremely proud Our Philosophy Capital Senior Living provides some of the highest quality housing and retirement services available in the industry. Our beautifully appointed and affordable communities provide an environ- ment that is physically, mentally and emotionally stimulating for our residents. Our continuum of care philosophy is based on the belief that seniors should be able to choose an affordable lifestyle that best suits them. Understanding that our residents’ needs change as they age, we provide – 15 – different levels of care and services to meet those needs. The vast majority of our residents, 85 per- cent, live in independent living communities. These communities are ideal for seniors who do not require assistance with activities of daily living (ADLs), but who enjoy the availability of meals, house- keeping and transportation, as well as a variety of social, recreational and wellness programs. About 15 percent of our residents utilize assisted living services. These services include assistance with medication management, bathing, grooming, dressing and ambulation. Many of our commu- nities have assisted living facilities in place or have the ability to add them in the future. As residents’ needs increase from independent living to assisted living, they can take advantage of these services within the same community. This also means that residents are attracted to Capital Senior Living facilities at an earlier age and remain for a longer time. population more affluent than any time in history, and representing the fastest growing demographic group in the United States, demand for our well-appointed and affordable communities should continue to rise, and we anticipate that our occupancy rates will increase accordingly. 2001 Financial Accomplishments During 2001 we had significant financial accomplishments that will serve as a backdrop to our operational and growth objectives in 2002 and beyond. We maximized our liquidity and simplified our balance sheet. We extended the maturities on approximately $91 million of affiliate construction financing. Further, we generated $12 million in proceeds for the sale of invest- ment properties and land parcels. A very significant accomplishment came at the end of 2001 when we announced our joint venture with Blackstone Real Estate Advisors, an affiliate of the Blackstone Group, a leading global investment and advisory Our Communities At the end of 2001, Capital Senior Living owned and/or operated 48 communities in 20 states, a geographic dispersion that closely mirrors the population centers of the United States. These communities are grouped into five regions that are structured for administrative efficiency and potential expansion. There are 20 of our senior living communities, with a capacity of nearly 3,000 residents, which are currently in lease-up. These communities, 14 of which have opened since the fourth quarter of 2000, are leased to 60 percent as of the end of 2001. One additional new community will open at the end of the first quarter 2002. The leasing potential of these communities represents a major aspect of the Company’s growth strategy and one for which the capital investments have already been made. The demand for our stabilized communities exceeds industry averages. Our portfolio of stabilized communities has an average occupancy of 93 percent as of December 31, 2001. The industry average for independent living is 90 percent and for assisted living, 85.5 percent. With the elderly firm. This joint venture joins Blackstone’s financial strength with Capital Senior Living’s management and operational expertise. The goal of the joint venture is to seek to acquire in excess of $200 million in senior housing properties, which will be owned 90 percent by Blackstone and 10 percent by Capital Senior Living. Additionally, Capital Senior Living will earn manage- ment fees under long-term contracts and potential incentive payments. With the goal of becoming one of the more active acquirers of senior housing during 2002, the joint venture’s first acquisition was announced on January 4. The Future After an extended, difficult period in our industry, we see exceptional potential in 2002 and beyond. There are three major strategies that should fuel our growth. First, we are focused on increasing our occupancy levels in our communities. In recent years, new development has been severely curtailed in our industry. This has both decreased our competition and increased demand for high-quality existing senior communities. In combination with the unquestioned growth of an affluent senior population, these trends will continue to drive demand for our communities and provide the momentum to increase our stabilized occupancy rates and generate significant revenue growth. Second, the recent industry consolidation and restructuring is providing the opportunity for leveraging Capital Senior Living’s management strength. A respected operator with a strong track record and an established national platform, Capital Senior Living has the strength, structure and experience to take over management contracts for under performing portfolios. Both of these growth strategies have two significant features. The first is that there is minimal, if any, capital requirement required for execution. Therefore, we have the potential of increasing income while maintaining a strong balance sheet. Second, these strategies use our existing infrastructure and therefore enhance our initiative of improv- ing our operating margins. The third strategy is growth through acquisition. Growth through our new joint venture with Blackstone should expand our national presence and provide additional revenue through long-term management contracts and incentive payments. In addition to the financial strength of our joint venture, we have the geographic diversity and the agility to pursue high-potential properties that may not be considered by other purchasers. In Conclusion It has been a challenging few years for our industry. The strength of our management team, the quality of our properties and a long-term strategy based on substantiated demand has helped us complete our 10th consecutive year of profitability. As tested by this down cycle, we have emerged a stronger company, poised for growth and return for our stakeholders. Thank you for your continued support. Sincerely, James A. Stroud Chairman of the Company Lawrence A. Cohen Chief Executive Officer – 16 – – 17 – Our Review S t r a t e g i c G e o g r a p h i c a l L o c a t i o n s E x i s t i n g C o m m u n i t i e s U n d e r C o n s t r u c t i o n Report of Ernst & Young LLP, Independent Auditors Consolidated Balance Sheets The Board of Directors and Shareholders Capital Senior Living Corporation We have audited, in accordance with auditing standards generally accepted in the United States, the consolidated balance sheets of Capital Senior Living Corporation at December 31, 2001 and 2000 and the related consolidated statements of income, shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2001 (not presented separately herein) and in our report dated February 8, 2002, except for Note 18, as to which the date is March 5, 2002, which, as to the year 1999, is based in part on the report of other independent auditors, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated financial statements is fairly stated in all material respects in relation to the consolidated financial statements from which it has been derived. Dallas, Texas February 8, 2002 Capital Senior Living Corporation I n t h o u s a n d s Assets Current assets: D e c e m b e r 3 1 , 2 0 0 1 2 0 0 0 Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounts receivable from affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest receivable from affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Investment in limited partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Federal and state income taxes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Prepaid expenses and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Property and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Note receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notes receivable from affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Investments in limited partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Liabilities and Shareholders’ Equity Current liabilities: Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Current portion of notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Customer deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deferred income from affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notes payable, net of current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Line of credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Minority interest in consolidated partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Commitments and contingencies Shareholders’ equity: Preferred stock, $.01 par value: $ 9,975 2,100 1,438 366 6,072 5,774 1,145 2,770 1,218 30,858 196,821 7,540 – 59,020 1,827 4,924 7,092 $ 308,082 $ 3,040 3,363 25,594 1,144 33,141 507 1,750 149,202 7,553 2,385 $ 22,875 1,100 3,221 3,764 2,074 – 3,728 1,208 1,935 39,905 204,764 8,872 570 43,388 6,526 6,920 7,599 $ 318,544 $ 3,907 3,194 4,770 1,012 12,883 – 2,241 176,507 7,553 8,572 Authorized shares –15,000,000; no shares issued or outstanding . . . . . . . . . . . . . . . – – Common stock, $.01 par value: Authorized shares –65,000,000 Issued and outstanding shares–19,717,347 in 2001 and 2000 . . . . . . . . . . . . . . . . . Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total shareholders’equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total liabilities and shareholders’equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 91,935 21,412 113,544 $ 308,082 197 91,935 18,656 110,788 $ 318,544 – 20 – – 21 – Consolidated Statements of Income Consolidated Statements of Shareholders’ Equity A d d i t i o n a l P a i d - I n C a p i t a l $ 91,740 195 – 91,935 – 91,935 – $ 91,935 R e t a i n e d E a r n i n g s $ 12,579 – 4,838 17,417 1,239 18,656 2,756 $ 21,412 To t a l $104,516 195 4,838 109,549 1,239 110,788 2,756 $113,544 Capital Senior Living Corporation Ye a r E n d e d D e c e m b e r 3 1 , Capital Senior Living Corporation I n t h o u s a n d s , e x c e p t p e r s h a r e d a t a 2 0 0 1 2 0 0 0 1 9 9 9 I n t h o u s a n d s C o m m o n S t o c k S h a r e s A m o u n t Non cash compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Balance at January 1, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,717 – – Balance at December 31, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . 19,717 – Balance at December 31, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . 19,717 – Balance at December 31, 2001 . . . . . . . . . . . . . . . . . . . . . . . . . 19,717 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 197 – – 197 – 197 – $ 197 Revenues: Resident and health care revenue . . . . . . . . . . . . . . . . . . . . . $ 62,807 3,619 Rental and lease income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,971 Unaffiliated management services revenue . . . . . . . . . . . . . . 1,743 Affiliated management services revenue . . . . . . . . . . . . . . . . – Unaffiliated development fees . . . . . . . . . . . . . . . . . . . . . . . . 403 Affiliated development fees . . . . . . . . . . . . . . . . . . . . . . . . . . 70,543 Total revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Expenses: Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . General and administrative expenses . . . . . . . . . . . . . . . . . . Provision for bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other income (expense): 37,214 12,002 967 7,088 57,271 13,272 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Equity in the losses of affiliates . . . . . . . . . . . . . . . . . . . . . . . Gain (loss) on sale of properties . . . . . . . . . . . . . . . . . . . . . . 5,914 (14,888) (451) 2,550 Income before income taxes, minority interest in consolidated partnership and extraordinary charge . . . . . . Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . Income before minority interest in consolidated partnership and extraordinary charge . . . . . . . . Minority interest in consolidated partnership . . . . . . . . . . . . . . Income before extraordinary charge . . . . . . . . . . . . . . . . . . . . . Extraordinary charge, net of minority interest and 6,397 (1,871) 4,526 (1,617) 2,909 income tax benefit of $187 and $94, respectively . . . . . . . . . (153) Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,756 Per share data: Basic earnings per share: Income before extraordinary charge . . . . . . . . . . . . . . . . . $ Extraordinary charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Diluted earnings per share: Income before extraordinary charge . . . . . . . . . . . . . . . . . $ Extraordinary charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Weighted average shares outstanding–basic . . . . . . . . . . . . . Weighted average shares outstanding–diluted . . . . . . . . . . . . 0.15 (0.01) 0.14 0.15 (0.01) 0.14 19,717 19,734 $ 49,185 4,603 2,271 1,040 563 1,992 59,654 29,530 11,116 4,318 5,186 50,150 9,504 5,981 (11,980) – (350) 3,155 (763) 2,392 (1,153) 1,239 – 1,239 0.06 – 0.06 0.06 – 0.06 19,717 19,724 $ $ $ $ $ $ $ $ 41,071 4,304 2,695 456 1,341 14,086 63,953 24,470 9,212 15,896 4,671 54,249 9,704 5,822 (7,089) – 748 9,185 (2,992) 6,193 (1,355) 4,838 – 4,838 0.25 – 0.25 0.24 – 0.24 19,717 19,806 $ $ $ $ $ $ $ – 22 – – 23 – Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows ( c o n t i n u e d ) Capital Senior Living Corporation I n t h o u s a n d s Ye a r E n d e d D e c e m b e r 3 1 , Capital Senior Living Corporation Ye a r E n d e d D e c e m b e r 3 1 , 2 0 0 1 2 0 0 0 1 9 9 9 I n t h o u s a n d s 2 0 0 1 2 0 0 0 1 9 9 9 Financing Activities 3,207 Proceeds from notes payable and line of credit . . . . . . . . . . . . . (6,119) Repayments of notes payable and line of credit . . . . . . . . . . . . (1,000) Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,617) Distributions to minority partners . . . . . . . . . . . . . . . . . . . . . . (3) Deferred financing charges paid . . . . . . . . . . . . . . . . . . . . . . . . (11,532) Net cash (used in) provided by financing activities . . . . . . . . . . (12,900) Decrease in cash and cash equivalents . . . . . . . . . . . . . . . . . . . Cash and cash equivalents at beginning of year . . . . . . . . . . . . 22,875 Cash and cash equivalents at end of year . . . . . . . . . . . . . . . . . $ 9,975 Supplemental Disclosures Cash paid during the year for: Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,931 Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 744 125,248 (30,033) (1,100) (3,958) (3,730) 86,427 (10,113) 32,988 $ 22,875 $ 10,609 $ 619 61,506 (48,981) – (1,198) (742) 10,585 (2,839) 35,827 $ 32,988 $ 6,476 $ 10,276 Operating Activities Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,756 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amortization of deferred financing charges . . . . . . . . . . . Minority interest in consolidated partnership . . . . . . . . . . Deferred income from affiliates . . . . . . . . . . . . . . . . . . . . . Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deferred income taxes (benefit) . . . . . . . . . . . . . . . . . . . . . Equity in the losses of affiliates . . . . . . . . . . . . . . . . . . . . . (Gain) loss on sale of properties . . . . . . . . . . . . . . . . . . . . Provision for bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . Extraordinary charge, net of minority interest and income tax benefit of $187 and 94, respectively . . . . . . . . . . . . . Non cash compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . Changes in operating assets and liabilities, net of acquisitions: Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . Accounts receivable from affiliates . . . . . . . . . . . . . . . Interest receivable from affiliates . . . . . . . . . . . . . . . . Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Prepaid expenses and other . . . . . . . . . . . . . . . . . . . . . Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . Federal and state income taxes receivable/payable . . . Customer deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . Net cash provided by operating activities . . . . . . . . 6,890 198 891 1,617 (491) 507 (230) 451 (2,550) 967 153 _ 816 3,398 (3,998) 570 717 (633) (867) 363 2,677 132 14,334 Investing Activities Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cash paid for acquisitions, net of cash acquired of $2,060 in 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proceeds from sale of properties . . . . . . . . . . . . . . . . . . . . . . . . Advances to affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proceeds from (investments in) limited partnerships . . . . . . . . Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . (2,138) – 4,787 (17,100) (1,251) (15,702) $ 1,239 $ 4,838 5,094 92 495 1,153 456 – 346 – 350 4,318 – – (955) 5,291 (1,240) (570) (1,427) 191 1,395 1,067 2,307 101 19,703 (3,121) (102,014) 4,504 (18,209) 2,597 (116,243) 4,567 104 519 1,355 992 (115) (30) – (748) 15,896 – 195 (1,012) (12,464) (645) – (60) (1,504) (268) (872) (7,704) 59 3,103 (1,887) – 2,740 (22,794) 5,414 (16,527) – 24 – – 25 – E l d e r l y p o p u l a t i o n g r o w t h p o p u l a t i o n 6 5 + ( m i l l i o n s ) 6 . 5 2 0 . 0 2 2 . 0 7 3 . 3 5 1 . 0 4 3 . 5 3 1 . 1 3 E l d e r l y p o p u l a t i o n g r o w t h p o p u l a t i o n 8 5 + ( m i l l i o n s ) 8 . 8 0 . 7 0 . 6 3 . 4 0 . 3 2 . 4 2 . 1 1970 1980 1990 2000 2010 2020 2030 1970 1980 1990 2000 2010 2020 2030 R e s i d e n t m i x I n d e p e n d e n t l i v i n g 85% 15% R e q u i r e s a s s i s t a n c e Company Management Board of Directors JAMES A. STROUD Chairman of the Company LAWRENCE A. COHEN Chief Executive Officer KEITH N. JOHANNESSEN President and Chief Operating Officer RALPH A. BEATTIE Executive Vice President and Chief Financial Officer ROB L. GOODPASTER Vice President, National Marketing DAVID W. BEATHARD Vice President, Operations GLEN H. CAMPBELL Vice President, Development DAVID R. BRICKMAN Vice President and General Counsel PAUL T. LEE Vice President, Finance JERRY D. LEE Corporate Controller ROBERT F. HOLLISTER Property Controller JAMES A. STROUD 1 Chairman of the Board, Capital Senior Living Corporation Dallas, Texas LAWRENCE A. COHEN 1 Vice Chairman of the Board, Capital Senior Living Corporation New York, New York KEITH N. JOHANNESSEN Capital Senior Living Corporation Dallas, Texas GORDON I. GOLDSTEIN, M.D. 2,3 Former Chairman, Dallas Anesthesiology Associates Dallas, Texas CRAIG F. HARTBERG 3 Retired First Vice President, Bank One, Texas, N.A. Dallas, Texas JAMES A. MOORE 1,2,3 President, Moore Diversified Services, Inc. Fort Worth, Texas VICTOR W. NEE, PH.D. 2 Professor, Department of Aerospace and Mechanical Engineering, University of Notre Dame, South Bend, Indiana 1 Member of the Board’s Executive Committee 2 Member of the Board’s Compensation Committee 3 Member of the Board’s Audit Committee – 26 – – 27 – Corporate Information Regional Information Form 10-K A copy of Capital Senior Living Corporation’s 2001 annual report to the SEC on Form 10-K is available without charge upon written request to the Investor Relations Department at corporate headquarters. It can also be found on the SEC’s web site, www.edgar.com. Annual Shareholders Meeting May 16, 2002 at 10 a.m. Central Time Addison Conference & Theatre Centre 15650 Addison Road Addison, Texas 75001 (972) 452-6200 Profile Capital Senior Living Corporation is com- mitted to providing quality housing and services based on the highest standards of excellence in the industry. Our goal is to enrich the daily lives of our senior residents by providing an environment that stimulates them physically, mentally, and emotionally. Therefore, each community offers a relaxed atmosphere of warmth and caring that promotes companionship among residents and staff. Each community’s employees are personally committed to serving residents and treating them with dignity and respect. CORPORATE HEADQUARTERS EASTERN REGIONAL OFFICE 14160 Dallas Parkway, Suite 300 186 Old Stagecoach Road Dallas, Texas 75254 (972) 770-5600 (972) 770-5666 fax main@capitalsenior.com NEW YORK OFFICE 237 Park Avenue, 21st Floor New York, New York 10017 (212) 551-1770 (212) 551-1774 fax CORPORATE WEB SITE www.capitalsenior.com Shareholder Information Ridgefield, Connecticut 06877 (203) 894-9406 (203) 894-9407 fax SOUTHEASTERN REGIONAL OFFICE 6061 Palmetto Circle North Boca Raton, Florida 33433 (561) 417-8579 (561) 417-8376 fax MIDWESTERN REGIONAL OFFICE 2820 South 80th Omaha, Nebraska 68124 (402) 926-2884 (402) 926-2891 fax STOCK EXCHANGE LISTING WESTERN REGIONAL OFFICE Capital Senior Living Corporation Common 5757 Cypress Avenue Stock is listed on the New York Stock Exchange Carmichael, California 95608 and trades under the symbol CSU. SHARES OUTSTANDING 19.7 million TRANSFER AGENT AND REGISTRAR Mellon Investor Services LLC 85 Challenger Road Ridgefield, New Jersey 07660 (800) 635-9270 www.melloninvestor.com AUDITORS Ernst & Young LLP 2121 San Jacinto, Suite 1500 Dallas, Texas 75201 (214) 969-8000 (916) 480-0634 (916) 486-4375 fax SOUTHWESTERN REGIONAL OFFICE 14160 Dallas Parkway, Suite 300 Dallas, Texas 75254 (972) 770-5600 (972) 770-5666 fax main@capitalsenior.com – 28 – Capital Senior Living Corporation 14160 Dallas Parkway, Suite 300 Dallas, Texas 75254 (972) 770-5600 fax (972) 770-5666 www.capitalsenior.com