Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q3 2024 Earnings Presentation
20 slides from Brookdale Senior Living's earnings presentation, Nov 6, 2024
Slide 1: Supplemental Information 3rd Quarter 2024
Supplemental Information 3rd Quarter 2024 Exhibit 99.2
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
Slide 3: Overview
3 Managed 4,362 Owned 30,977 Leased 19,860 Managed 29 Owned 342 Leased 277 648 communities 55,199 units (1) Brookdale has entered into agreements to acquire 41 communities (2,789 units) from three current triple-net lease portfolios. Important Note Regarding Non-GAAP Financial Measures • Adjusted EB
Slide 4: Segment Overview
4 2023 2024 3Q24 vs 3Q23 YTD 3Q24 vs YTD 3Q23 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Resident fees $ 713,404 $ 710,161 $ 717,123 $ 716,582 $ 2,857,270 $ 744,241 $ 739,709 $ 743,729 3.7 % 4.1 % Management fees 2,577 2,510 2,566 2,508 10,161 2,618 2,616 2,676 4.3 % 3.4 % Other operating
Slide 5: Adjusted EBITDA and Adjusted Free Cash Flow Distribution 3Q 2024
5 (1) Resident fee revenue excluded from definitions of RevPAR and RevPOR is $1.2 million. (2) All Other primarily includes communities operated by the Company pursuant to management agreements. (3) Excluding non-cash stock-based compensation expense and Transaction and Organizational Restructuring
Slide 6: Segment Overview
6 2023 2024 3Q24 vs 3Q23 YTD 3Q24 vs YTD 3Q23 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Total Senior Housing and All Other Revenue (1) $ 715,981 $ 712,671 $ 719,689 $ 719,090 $ 2,867,431 $ 746,859 $ 742,325 $ 746,405 3.7 % 4.1 % Other operating income $ 2,328 $ 4
Slide 7: Senior Housing
7 2023 2024 3Q24 vs 3Q23 YTD 3Q24 vs YTD 3Q23 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Independent Living Revenue $ 140,602 $ 140,670 $ 141,234 $ 141,506 $ 564,012 $ 148,948 $ 149,542 $ 150,380 6.5 % 6.2 % Other operating income $ 54 $ 218 $ 215 $ — $ 487 $ — $
Slide 8: Senior Housing Same Community
8 2023 2024 3Q24 vs 3Q23 YTD 3Q24 vs YTD 3Q23 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Revenue $ 685,944 $ 685,095 $ 691,884 $ 694,681 $ 2,757,604 $ 729,127 $ 725,865 $ 730,861 5.6 % 6.0 % Other operating income 2,215 4,050 2,445 — 8,710 — — — (100.0) % (100.0)
Slide 9: Independent Living Same Community
9 2023 2024 3Q24 vs 3Q23 YTD 3Q24 vs YTD 3Q23 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Independent Living Revenue $ 140,602 $ 140,670 $ 141,234 $ 141,506 $ 564,012 $ 148,948 $ 149,542 $ 150,380 6.5 % 6.2 % Other operating income 54 218 215 — 487 — — — (100.0) %
Slide 10: Senior Housing Owned Portfolio
10 2023 2024 3Q24 vs 3Q23 YTD 3Q24 vs YTD 3Q23 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Revenue $ 418,624 $ 416,298 $ 420,351 $ 419,830 $ 1,675,103 $ 440,231 $ 435,741 $ 436,238 3.8 % 4.5 % Other operating income 1,885 3,515 1,828 — 7,228 — — — (100.0) % (100.0)
Slide 11: Senior Housing Leased Portfolio
11 2023 2024 3Q24 vs 3Q23 YTD 3Q24 vs YTD 3Q23 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Revenue $ 294,780 $ 293,863 $ 296,772 $ 296,752 $ 1,182,167 $ 304,010 $ 303,968 $ 307,491 3.6 % 3.4 % Other operating income 443 607 795 — 1,845 — — — (100.0) % (100.0) % Fac
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
Slide 13: Capital Expenditures
13 ($ in 000s, except for community level capital expenditures, per average unit) 2023 2024 3Q24 vs 3Q23 YTD 3Q24 vs YTD 3Q23 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Community level capital expenditures, including allocations (1) Senior Housing Owned Portfolio $ 27,135 $ 32,882 $ 23,066 $ 24,992 $
Slide 14: Cash Facility Lease Payments
14 (1) Classification of amounts prospectively impacted by lease amendments in the second quarter of 2023 with no impact to total cash facility lease payments. (2) Includes cash lease payments for leases of community support centers and information technology systems and equipment. 2023 2024 3Q24 vs
Slide 15: Capital Structure
15 (1) Amount excludes $25 million in deferred financing costs, net. (2) Reflects rates as of September 30, 2024. (3) Variable rate maturities include $320 million of mortgage debt with extension options to 2027. (4) Fixed rate maturities include $230 million of 2.00% convertible senior notes. On Oc
Slide 16: Definitions
16 Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: benefit/provision for income taxes, non-operating income/ expense items, and depreciation and amortization; and further adjusted to exclude income/expense associated with non-cash, non-opera
Slide 17: Definitions (continued)
17 RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue for private duty services provided to seniors living outside of the Company's communities and entra
Slide 18: Appendix: Non-GAAP Financial Measures
18 2023 2024 Twelve Months Ended September 30, 2024($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q Net income (loss) $ (44,563) $ (4,526) $ (48,811) $ (91,170) $ (189,070) $ (29,581) $ (37,742) $ (50,734) $ (209,227) Provision (benefit) for income taxes 572 275 (1,876) 9,813 8,784 (40) 449 677 10,899 Equ
Slide 19: Net Debt and Adjusted Net Debt Reconciliations
19 Net Debt and Adjusted Net Debt Reconciliations Appendix: Non-GAAP Financial Measures (continued) ($ in 000s) As of September 30, 2024 Long-term debt (including current portion) $ 3,706,022 Cash and cash equivalents (254,711) Marketable securities (29,701) Cash held as collateral against existing
Slide 20: Adjusted Free Cash Flow Reconciliation
20 2023 2024 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q Net cash provided by (used in) operating activities $ 24,042 $ 63,824 $ 45,763 $ 29,294 $ 162,923 $ (1,146) $ 55,670 $ 66,455 Net cash provided by (used in) investing activities (62,019) (41,891) (31,837) 22,383 (113,364) (6,946) (68,457) (58,1
Brookdale Senior Living — Q3 2024 Earnings Presentation on 6ix