Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Q2 2023 Earnings Presentation
24 slides from Sonida Senior Living's earnings presentation, Aug 14, 2023
Slide 1: A Leading Owner-Operator of Senior Living Communities and Services
A Leading Owner-Operator of Senior Living Communities and Services Investor Presentation – August 14, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements which are subject to certain risks and uncertainties that could cause our actual results and financial condition of Sonida Senior Living, Inc. (the “Company,” “we,” “our” or “us”) to differ materially from those indicat
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains financial measures: (1) Adjusted Operating Expenses, (2) Community Net Operating Income, (3) Community Net Operating Income Margin, (4) Adjusted Community Net Operating Income, (5) Adjusted Community Net Operating Income Margin, (6) Revenue per
Slide 4: Leading Operator of Senior Housing and Services
Leading Operator of Senior Housing and Services 72 ~8,000 83.9% Communities Q2 2023 Weighted Average 3,600+ Resident 62 Owned Occupancy for Owned Employees Capacity 10 Managed Communities Attractive Markets and Resident Demographics Attractive Private Pay Revenue Mix(1) 15+ Communities 7073 Units 5
Slide 5: Q2 2023 Operating Highlights
Q2 2023 Operating Highlights Nine consecutive quarters of revenue growth Adjusted Community NOI(1) up 30.7% YoY and 15.8% QoQ Operating Margin(1) up 370 bps YoY and 240 bps QoQ YoY Q2 Resident Revenue increased 9.5% RevPOR excluding state grants increased 8.7% YoY and 3.6% QoQ (1) Adjusted Community
Slide 6: Q2 2023 Capitalization Highlights
Q2 2023 Capitalization Highlights Completed initial phase of debt restructuring covering 49 assets financed by Fannie Mae and Ally Bank Fannie Mae Key Terms ➢ All maturities will be extended to December 2026 or beyond ➢ All contractually required principal payments under the 37 Fannie Mae loans will
Slide 7: Q2 2023 Capitalization Highlights (continued)
Q2 2023 Capitalization Highlights (continued) Completed initial phase of debt restructuring covering 49 assets financed by Fannie Mae and Ally Bank Other Key Highlights ➢ Weighted average maturities extended 1+ year with nearest maturity coming in December 2026 (previously July 2024) ➢ Total cost of
Slide 8: Q2 2023 Financial Comparisons – Owned Communities
Q2 2023 Financial Comparisons – Owned Communities Adjusted Community NOI Margin increased 240bps from 20.9% in Q1 2023 to 23.3% in Q2 2023 Q2 2023 Q2 2022 Q1 2023 Weighted Average Occupancy 83.9% 82.7% 84.0% RevPAR(1,2) $3,300 $3,002 $3,282 RevPOR(1,3) $3,932 $3,629 $3,909 Resident Revenue(4) $57.0
Slide 9: Nine Consecutive Quarters of Occupancy Growth (Same-Store)
Nine Consecutive Quarters of Occupancy Growth (Same-Store) 85.4% 85.0% 85.0% 84.9% 84.4% 84.2% 84.2% 84.2% 84.2% 84.0% 83.7% 83.5% 83.2% 82.3% 82.2% 82.2% 81.3% 81.0% 79.7% 78.1% 76.7% 75.5% Q4 '19 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1' 23 Q2' 23 Weighted Average Occupancy End o
Slide 10: Q2 Delivers Continued Rate Expansion
Q2 Delivers Continued Rate Expansion Resident Rent Rate(1) Increases Level of Care “LoC” Program Impact • Simplified 4 level system with clear requirements Resident rent rates(1) • New monitoring tools implemented to reinforce timely increased $256 or LoC reviews based on company and state-specific
Slide 11: Revenue Growth Outpacing Total Cost of Labor
Revenue Growth Outpacing Total Cost of Labor • Three consecutive quarters of improvement as a percent Quarterly Labor Cost Trend as a Percent of Revenue(1) of revenue • YTD June 2023 labor cost as a percentage of revenue are down 144 basis points compared to YTD June 2022 • YTD June 2023 contract la
Slide 12: Cost Control Drives Further Margin Expansion
Cost Control Drives Further Margin Expansion Quarterly Operating Expense Trend (Excluding Labor Costs(1)) • Non-labor operating expense for Q2 2023 was 230 basis points below the 8-quarter average • Food cost per occupied day for Q2 2023 increased 1.8% compared to Q1 2023 but decreased 11.5% YoY com
Slide 13: Debt Structure as of June 30, 2023
Debt Structure as of June 30, 2023 Protective Life Non-Compliant Fixed Rate All Other Fixed Rate 10.9% 59.4% As of June 30,2023 ($ in millions) Protective Life Compliant Fixed Rate All other Fixed Rate Debt $ 380.8 7.6% Protective Life Non-Compliant Fixed Rate(1) Protective Life Compliant Fixed Rate
Slide 14: Supplemental Investor Information Q2 2023
Supplemental Investor Information Q2 2023
Slide 15: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements which are subject to certain risks and uncertainties that could cause our actual results and financial condition of Sonida Senior Living, Inc. (the “Company,” “we,” “our” or “us”) to differ materially from those indicat
Slide 16: Table of Contents
Table of Contents 4 Financial Overview 5 Community NOI 6 Net Income (Loss) Walk Forward 7 Adjusted EBITDA Walk Forward 8 Capitalization 9 Geographical Breakdown 10 Financial and Key Metrics 11 Market Fundamentals 16
Slide 17: Financial Overview – Owned Communities
Financial Overview – 62 Owned Communities Note: Dollars in 000s. Numbers may vary due to rounding. (1) Resident Revenue, Community NOI, Community NOI Margin %, Net Income (loss), Adjusted EBITDA, REVPOR, and REVPAR include the impact of non-recurring state grants earned and received in the period, a
Slide 18: Community NOI – Owned Communities
Community NOI – 62 Owned Communities Note: Dollars in 000s. Numbers may vary due to rounding. (1) Includes Second Person and Level of care fees. (2) Community NOI and Other Income include the impact of non-recurring state grants earned and received in the period. (3) Includes benefits, overtime, pay
Slide 19: Net Income (Loss) Walk Forward
Net Income (Loss) Walk Forward Note: Dollars in 000s. Numbers may vary due to rounding. (1) Amounts are not calculated in accordance with GAAP. See page 3 for the Company’s disclosure regarding non-GAAP financial measures. . (2) Non-Operating Expenses include professional fees, settlement expense, n
Slide 20: Adjusted EBITDA Walk Forward
Adjusted EBITDA Walk Forward Note: Dollars in 000s. Numbers may vary due to rounding. (1) Represents the GAAP (gain) loss in connection with the extinguishment of debt as a result of the transition of legal ownership of two communities to Fannie Mae. (2) Includes Covid-19 relief revenue and grants r
Slide 21: Capitalization (as of June 30, 2023)
Capitalization (as of June 30, 2023) Debt (85.5%) Components of Total Capital Common Equity (8.4%) Preferred Equity (6.1%) Note: Dollars in 000s except for share price and strike price. Numbers may vary due to rounding. (1) Weighted average interest rate (2) Variable exposure is synthetically limite
Slide 22: Geographical Breakdown – Owned Communities
Geographical Breakdown – 62 Owned Communities South/Southwest Midwest East 18 Communities 36 Communities 8 Communities (1) Data based on Q2 2023 average 22
Slide 23: Financial and Key Metrics – Owned Communities
Financial and Key Metrics – 62 Owned Communities Note: Dollars in 000s. Numbers may vary due to rounding. (1) Includes Second Person Fees and Level of care fees. (2) Revenue includes non-recurring state grant revenue earned and received in Q2 2023 of $0.4M (3) Adjusted Operating Expense excludes pro
Slide 24: Market Fundamentals
Market Fundamentals Source: NIC MAP Vision as of August 10, 2023. Demographics data is current as of January 1, 2023. NIC MAP Vision Seniors Housing Inventory data is current as of the 2Q2023 Market Fundamentals update. Primary Markets Note: Dollars in 000s. Numbers may vary due to rounding. Tertiar