CAPITAL SENIOR LIV ING cor p o r at i o n
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T O O uR FE L L O w S hA R EhO LdE R S
2007 EBITDAR $55.3 M, change 2006 to $40.5 from $40.6 to tie to press release
40.5
Total Revenue
(in $ millions)
200
150
100
50
0
189.1
159.1
126.4
05
06
07
Total Revenue
(in $ millions)
EBITDAR Comparison
(in $ millions)
189.1
2007 revenues $189.1 M
60
55.3
159.1
50
10
8
6
4
2
0
200
150
100
50
0
126.4
05
06
07
10
8
6
4
2
0
10
8
6
4
2
0
159.1
126.4
200
150
100
50
0
40.5
50
40
20
2007 revenues $189.1 M
2006-2007 same store comparison
Revenue growth 4.0%
Expense growth 1.2%
Net income growth 8.6%
2006-2007 same store comparison
26.1
20
10
Revenue growth 4.0%
Expense growth 1.2%
05
Net income growth 8.6%
06
07
0
Total Revenue
(in $ millions)
EBITDAR Comparison
(in $ millions)
Same Store Comparison
2006 -2007 (percentage change)
189.1
2007 revenues $189.1 M
60
55.3
10
8.6
40
30
8
30
26.1
2006-2007 same store comparison
4.0
4
6
05
06
07
10
Revenue growth 4.0%
Expense growth 1.2%
Net income growth 8.6%
05
06
07
0
2
0
1.2
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2007 EBITDAR $55.3 M, change 2006 to $40.5 from $40.6 to tie to press release
60
Same Store Comparison
2006 -2007 (percentage change)
Our 2007 business plan was focused on increasing shareholder value by
EBITDAR Comparison
(in $ millions)
providing income and asset growth, strengthening our balance sheet and
increasing the Company’s profitability. Our 2007 results demonstrate the
significant progress we made toward those important goals.
40.5
55.3
8.6
10
50
40
8
6
30
26.1
4.0
0
0
2
4
07
06
05
1.2
Our revenues, EBITDAR and net income all
20
increased significantly as a result of our management
focus on improving our operating results. Total revenue
10
for 2007 increased $30 million, or 19 percent, to
$189.1 million and adjusted EBITDAR was $55.3
million, an increase of 37 percent compared to 2006
n
c
o
results. Our net income for the year was $4.4 million,
m
e
versus a loss of $2.6 million in 2006. In addition, at
communities under management, same-community
revenues increased 4.0 percent over 2006 results, while
expenses only increased 1.2 percent. This resulted in
same-community net income growth of 8.6 percent
8
compared to 2006.
Same Store Comparison
2006 -2007 (percentage change)
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8.6
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10
i
6
2
4
1.2
4.0
Our 2007 business plan included external growth
through aquisitions and new development. During 2007
and the first quarter of 2008, we consummated three
joint ventures that are currently developing three
senior housing communities totaling 299 independent
living and 135 assisted living units. We anticipate
further external growth in 2008 including acquisi-
tions and additional development with strong capital
partners that provide the operational benefits of
regional clustering.
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We strengthened our balance sheet in 2007 by
further reducing our debt and average borrowing costs,
a continuation of an important initiative undertaken
in 2006. Further, we were able to leverage our national
platform and reduce expenses through the rollout of a
national group purchasing program that is designed to
provide ongoing expense efficiencies.
At the end of 2007, we operated 64 senior living
communities in 23 states with an aggregate capacity of
approximately 9,400 residents, including 37 senior living
communities which we own or have an ownership
interest, 25 leased communities, and two communities
we manage for third parties. In the communities we
operated in 2007, 70 percent of residents lived independ-
ently, 23 percent of residents required assistance with
activities of daily living and 7 percent of residents lived
in continuing care retirement communities.
We believe that we are well positioned to take
advantage of emerging opportunities in 2008. We have a
successful record of operations as well as a strong balance
sheet, a national operating platform and a talented,
experienced management team. We have therefore
structured our 2008 annual business plan to build
shareholder value by delivering internal growth and
expanding our external growth by pursuing aquisition
and development opportunities.
The focus of our 2008 plan is on increasing capacity
and levels of care to meet the needs of our residents with
an average age of 85. The key elements of this plan are
to increase levels of care and capacity through expan-
sions, conversions and new developments and to acquire
home care agencies in clustered markets to provide home
health and ancillary services. These investments typically
produce excellent returns on invested capital.
In addition, our 2008 plan includes the goals
to create organic growth from rental rate increases,
cost savings and occupancy growth, and to complete
accretive, geographically desirable acquisitions that are
becoming available in our highly fragmented industry.
We have already made progress on these initiatives.
Specifically, we intend to convert 256 independent living
units in eight communities to units of assisted living
and dementia care by the second quarter of 2008. We
had already completed 70 of these conversions by the
end of 2007. In addition, we are planning to expand
three communities, adding a total of 180 assisted
living, 60 dementia care, and 30 independent living
units. The expansions are planned to begin in the
second half of 2008.
We are proud of the positive results we achieved in
2007 and we believe that our plan for 2008, supported
by positive industry dynamics, holds the potential for
increasing shareholder value. Throughout 2008, we
will assess the viability of acquisition and development
prospects while we seek to maximize internal growth
and operating metrics.
We thank you for your support.
2007 EBITDAR $55.3 M, change 2006 to $40.5 from $40.6 to tie to press release
James A. Stroud
Chairman of the Board
Lawrence A. Cohen
Chief Executive Officer
Company Management
Board of Directors
Regional Information
Lawrence a. cohen
Chief Executive Officer
James a. stroud
Chairman of the Company
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, General Counsel
and Secretary
GLoria m. hoLLand
Vice President, Finance
Jerry d. Lee
Corporate Controller
roBert F. hoLLister
Property Controller
Shareholder Information
stocK exchanGe ListinG
Capital Senior Living Corporation Common
Stock is listed on the New York Stock Exchange
and trades under the symbol CSU.
transFer aGent and reGistrar
BNY Mellon Shareowner Services
P.O. Box 358015
Pittsburgh, Pennsylvania 15252-8015
or
480 Washington Boulevard
Jersey City, New Jersey 07310-1900
(800) 635-9270
TDD for hearing impaired: (800) 231-5469
Foreign shareowners: (201) 680-6578
TDD foreign shareowners: (201) 680-6610
www.bnymellon.com/shareowner/isd
auditors
Ernst & Young LLP
2100 Ross Avenue, Suite 1500
Dallas, Texas 75201
(214) 969-8000
James a. stroud
Chairman of the Board
Capital Senior Living Corporation
Dallas, Texas
Lawrence a. cohen
Vice Chairman of the Board
Capital Senior Living Corporation
New York, New York
Keith n. Johannessen
President and Chief Operating Officer
Capital Senior Living Corporation
Dallas, Texas
craiG F. hartBerG 1,2,3
Retired First Vice President
Bank One, Texas, N.A.
Baton Rouge, Louisiana
JiLL m. KrueGer 2
President and CEO
Health Resources Alliance, Inc.
Oakbrook, Illinois
James a. moore 1,2,3
President
Moore Diversified Services, Inc.
Fort Worth, Texas
victor w. nee, ph.d .1,3
Professor Emeritus
Department of Aerospace & Mechanical Engineering
University of Notre Dame
Scottsdale, Arizona
1 Member of the Board’s Compensation Committee
2 Member of the Board’s Audit Committee
3 Member of the Board’s Nominating Committee
Corporate Information
corporate headquarters
14160 Dallas Parkway, Suite 300
Dallas, Texas 75254
(972) 770-5600
(972) 770-5666 fax
main@capitalsenior.com
new yorK oFFice
300 Park Avenue, Suite 1700
New York, New York 10022
(212) 551-1770
(212) 551-1774 fax
corporate weB site
www.capitalsenior.com
eastern reGionaL oFFice
186 Old Stagecoach Road
Ridgefield, Connecticut 06877
(203) 894-9406
(203) 894-9407 fax
centraL pLains reGionaL oFFice
1913 E. Highway 34
Plattsmouth, Nebraska 68048
(402) 296-0618
(866) 731-0053 fax
western reGionaL oFFice
5757 Cypress Avenue
Carmichael, California 95608
(916) 480-0634
(916) 486-4375 fax
midwestern reGionaL oFFice
2650 Hemford Falls Court, #200
St. Louis, Missouri 63129
(314) 846-8517
(314) 846-5495 fax
southwestern and texas
reGionaL oFFices
14160 Dallas Parkway, Suite 300
Dallas, Texas 75254
(972) 770-5600
(972) 770-5666 fax
daLLas reGionaL oFFice
2222 Walter Smith Road
Azle, Texas 76020
(817) 237-2496
(817) 237-3496 fax
Form 10-K
A copy of Capital Senior Living Corporation’s
2007 annual report to the SEC on Form
10-K is included herein and is available without
charge upon written request to the Investor
Relations Department at corporate headquarters.
It can also be found on the Company’s web site,
www.capitalsenior.com.
Annual Shareholders Meeting
May 15, 2008 at 10:00 am, Eastern Time
Waldorf Astoria Hotel
301 Park Avenue
New York, New York 10022-6897
(212) 355-3000
Capital Senior living Corpor ation
14160 Dallas Parkway, Suite 300
Dallas, Texas 75254
(972) 770-5600 fax (972) 770-5666
www.capitalsenior.com