Text
Jul 16, 2015
Other Firms
Experience
Attentiveness
Proactive
Accessibility
Responsive
Healthcare focused IR
PoorExcellent Good
THE PROCESS
Planning: IR Audit, Message Alignment
Analysis: Current/Prospective shareholders
Execution: Market-the-Market - Buy/Sell-Side
Improve VisibilityEnhance Credibility
OUR GOAL
transparency
management access
analyst coverage
institutional investorsguidance
responsiveness
industry knowledge
investor conferences
non-deal roadshows
analyst meetings
ANALYSIS
• Gaps in view
•Disparate shareholder composition
• Volatility risk
• Credibility risk
Company’s View vs. Street’s View
Income GARP
Momentum Growth
Value
Industry Fundamentals
Com
pany
Val
uatio
n
PLANNING
• Perception study
• IR Audit
•Message refinement
•Marketing plan
Preliminary Valuation & Analysis
EBITDA compared with EV/EBITDA• CSU is currently trading at a multiple only slightly above its peers, however it should command a slightly higher multiple
given the EBITDA margin it generates. This would be the same when using EBITDAR; the company also trades at a
premium to its peer group. Nonetheless, the EBITDA margin relative to its EV multiple is quite narrow suggesting that
the company may have additional upside.
2010 EBITDA MarginEV/2010 EBITDA
0
5
10
15
20
CSU ESC SUNH ENSG SKH ODSY
10.113.7
5.9 5.5 5.9 6.2
15.817.8
8.8
13.5 14.6 14.2
Cockrell Group Valuation Matrix• Solid industry fundamentals combined with a high trading multiple suggests that CSU shares should attract more
GROWTH oriented investors.
Income GARP
Momentum Growth
Value
Industry Fundamentals
Com
pany
Val
uatio
n
CSU Assessment!
5
CSU Historical Shareholder composition
• It is always good to have some Momentum money in the stock. This creates volatility, which propagates trading
activity and opportunities to attract new investors to the stock.
3/09
6/09
9/09
12/09
YTD 2010
0%
10%
20%
30%
40%
Momentum GrowthGARP
Value Income
SpecialtyIndex
CSU Turnover• Low turnover likely due to low liquidity of share price, which stagnates share price performance. Introducing new
investors to the story will create an opportunity for legacy shareholders to exit the position.
3/09
6/09
9/09
12/09
YTD 2010
0%
20%
40%
60%
80%
Low
Moderate
HighCSU Assessment!
8
Capital Senior Living
Assessment
Prepared for: ! Larry Cohen, Vice Chairman & CEO
!!
Ralph Beattie, CFO
Prepared by: ! Rich Cockrell, President of The Cockrell Group
Friday, February 19, 2010
Proposal number: CSU - 1.0
Cockrell Group 1230 Peachtree Street 18th Floor Atlanta, GA 30309 T 404.942.3369 F 866.880.1512 W cockrellgroup.com
Investor introductions are facilitated through the sell-side.
70%
73%
Conflict of interest when equity sales teams arrange non-deal roadshows...
EXECUTIONMarket-the-Market: Meeting investors in the right markets
1
2 3 4
5
6
GARP concentration Mixed asset pools
Small-to-mid cap companies has budget of less than $1 million
47%
80%
Reported IR budget between $250k and $1million
$120k IRO with at least 5 years experience
50% Benefits & Bonus Compensation
$50k IR Services and Administration