Brookdale Senior Living Inc. · NYSE:BKD

Brookdale Senior Living — Q2 2023 Earnings Presentation

21 slides from Brookdale Senior Living's earnings presentation, Aug 7, 2023

  1. Slide 1: Supplemental Information 2nd Quarter 2023

    Supplemental Information 2nd Quarter 2023 Exhibit 99.2

  2. Slide 2: Table of Contents

    2 Overview 3 Segment Overview 6 Senior Housing 7 General and Administrative ("G&A") Expense 12 Capital Expenditures 13 Cash Facility Lease Payments 14 Capital Structure 15 Definitions 16 Appendix: Non-GAAP Financial Measures 18 Table of Contents

  3. Slide 3: Overview

    3 Managed 4,685 Owned 31,356 Leased 20,584 Managed 31 Owned 346 Leased 295 672 communities 56,625 units Important Note Regarding Non-GAAP Financial Measures • Adjusted EBITDA and Adjusted Free Cash Flow are financial measures that are not calculated in accordance with GAAP. See "Definitions" and "No

  4. Slide 4: Segment Overview

    4 2022 2023 2Q23 vs 2Q22 YTD 2Q23 vs YTD 2Q22 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Resident fee revenue $ 636,974 $ 640,388 $ 650,248 $ 657,919 $ 2,585,529 $ 713,404 $ 710,161 10.9 % 11.4 % Management fee revenue 3,329 3,329 2,967 2,395 12,020 2,577 2,510 (24.6) % (23.6) % Other operati

  5. Slide 5: Segment Overview by Portfolio 2Q 2023

    5 (1) Resident fee revenue excluded from definitions of RevPAR and RevPOR is $0.8 million. (2) All Other primarily includes communities operated by the Company pursuant to management agreements. (3) Excluding non-cash stock-based compensation expense and Transaction and Organizational Restructuring

  6. Slide 6: Senior Housing

    6 2022 2023 2Q23 vs 2Q22 YTD 2Q23 vs YTD 2Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Total Senior Housing and All Other Revenue (1) $ 640,303 $ 643,717 $ 653,215 $ 660,314 $ 2,597,549 $ 715,981 $ 712,671 10.7 % 11.3 % Other operating income $ 376 $ 8,411 $ 66,759

  7. Slide 7: Independent Living

    7 2022 2023 2Q23 vs 2Q22 YTD 2Q23 vs YTD 2Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Independent Living Revenue $ 124,404 $ 125,578 $ 128,106 $ 129,705 $ 507,793 $ 140,602 $ 140,670 12.0 % 12.5 % Other operating income $ 2 $ 1,159 $ 9,520 $ 225 $ 10,906 $ 54 $ 21

  8. Slide 8: Senior Housing Same Community

    8 2022 2023 2Q23 vs 2Q22 YTD 2Q23 vs YTD 2Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Revenue $ 617,402 $ 623,053 $ 635,660 $ 643,693 $ 2,519,808 $ 698,060 $ 697,345 11.9 % 12.5 % Other operating income 358 8,130 65,147 4,827 78,462 2,289 4,107 (49.5) % (24.6) % R

  9. Slide 9: Independent Living Same Community

    9 2022 2023 2Q23 vs 2Q22 YTD 2Q23 vs YTD 2Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Independent Living Revenue $ 124,404 $ 125,578 $ 128,106 $ 129,705 $ 507,793 $ 140,602 $ 140,670 12.0 % 12.5 % Other operating income 2 1,159 9,520 225 10,906 54 218 (81.2) % (76

  10. Slide 10: Senior Housing Owned Portfolio

    10 2022 2023 2Q23 vs 2Q22 YTD 2Q23 vs YTD 2Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Revenue $ 370,337 $ 374,231 $ 379,913 $ 386,244 $ 1,510,725 $ 418,624 $ 416,298 11.2 % 12.1 % Other operating income 300 5,240 38,372 3,670 47,582 1,885 3,515 (32.9) % (2.5) % F

  11. Slide 11: Senior Housing Leased Portfolio

    11 2022 2023 2Q23 vs 2Q22 YTD 2Q23 vs YTD 2Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Revenue $ 266,637 $ 266,157 $ 270,335 $ 271,675 $ 1,074,804 $ 294,780 $ 293,863 10.4 % 10.5 % Other operating income 76 3,171 28,387 1,253 32,887 443 607 (80.9) % (67.7) % Facil

  12. Slide 12: General and Administrative Expense

    12 (1) G&A allocations are calculated based on the proportional amount of resident fee revenue (consolidated and under management) attributable to the segment or portfolio. G&A allocations presented herein exclude non-cash stock-based compensation expense and Transaction and Organizational Restructu

  13. Slide 13: Capital Expenditures

    13 ($ in 000s, except for community level capital expenditures, per average unit) 2022 2023 2Q23 vs 2Q22 YTD 2Q23 vs YTD 2Q22 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Community level capital expenditures, including allocations (1) Senior Housing Owned Portfolio $ 20,907 $ 25,934 $ 24,568 $ 20,341 $ 91,

  14. Slide 14: Cash Facility Lease Payments

    14 (1) Classification of amounts prospectively impacted by lease amendments in the fourth quarter of 2022 and second quarter of 2023 with no impact to total cash facility lease payments. See page 4. (2) Includes cash lease payments for leases of corporate offices and information technology systems a

  15. Slide 15: Capital Structure

    15 $412 $396 $453 $439 $440 06/30/2022 09/30/2022 12/31/2022 03/31/2023 06/30/2023 Total Liquidity ($ in millions) (1) Includes the carrying amount of debt of which 91.8%, or $3.5 billion, represented non-recourse property-level mortgage financings. (2) The weighted average fixed cap and swap rate i

  16. Slide 16: Definitions

    16 Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: benefit/provision for income taxes, non-operating income/ expense items, and depreciation and amortization; and further adjusted to exclude income/expense associated with non-cash, non-opera

  17. Slide 17: Definitions (continued)

    17 RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue for private duty services provided to seniors living outside of the Company's communities and entra

  18. Slide 18: Appendix: Non-GAAP Financial Measures

    18 Appendix: Non-GAAP Financial Measures This Supplemental Information contains the financial measures Adjusted EBITDA, Adjusted EBITDA after cash financing lease payments, Adjusted Free Cash Flow, Net Debt, and Adjusted Net Debt (each as defined in the "Definitions" section), which are not calculat

  19. Slide 19: Adjusted EBITDA Reconciliation

    19 2022 2023 Twelve Months Ended June 30, 2023($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q Net income (loss) $ (100,032) $ (84,283) $ (28,374) $ (25,651) $ (238,340) $ (44,563) $ (4,526) $ (103,114) Provision (benefit) for income taxes (1,976) 1,190 (300) (473) (1,559) 572 275 74 Equity in (earnings) los

  20. Slide 20: Net Debt and Adjusted Net Debt Reconciliations

    20 Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of June 30, 2023 Long-term debt (including current portion) $ 3,814,289 Cash and cash equivalents (336,576) Marketable securities (96,196) Cash held as collateral against existing debt (8,439) Net Debt 3,373,078 Operating and financing

  21. Slide 21: Adjusted Free Cash Flow Reconciliation

    21 2022 2023 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q Net cash provided by (used in) operating activities $ (23,255) $ 11,577 $ 63,521 $ (48,562) $ 3,281 $ 24,042 $ 63,824 Net cash provided by (used in) investing activities (36,163) (43,838) 22,508 (9,936) (67,429) (62,019) (41,891) Net cash provided

Brookdale Senior Living — Q2 2023 Earnings Presentation on 6ix