Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q1 2022 Earnings Presentation
25 slides from Brookdale Senior Living's earnings presentation, May 5, 2022
Slide 1: Supplemental Information 1st Quarter 2022
Supplemental Information 1st Quarter 2022 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 Appendices: Summary Financial Impact: COVID-19 19 Non-GAAP Financial Measures 21 Table of Contents
Slide 3: Overview
3 Managed 4,842 Owned 31,635 Leased 20,846 Managed 33 Owned 347 Leased 298 678 communities 57,323 units (1) The Company sold 80% of its equity in its Health Care Services segment on July 1, 2021 (the "HCS Sale") and recognized a $286.5 million gain on the sale. For periods beginning July 1, 2021, th
Slide 4: Consolidated results and Adjusted EBITDA
4 2021 2022 1Q22 vs 1Q21 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Senior Housing resident fee revenue $ 577,499 $ 586,665 $ 600,095 $ 605,425 $ 2,369,684 $ 636,974 10.3 % Health Care Services resident fee revenue 86,851 87,313 — — 174,164 — N/A Management fee revenue 8,566 4,998 3,621 3,413 20,598
Slide 5: Segment Overview 1Q 2022
5 (1) Primarily consists of corporate capital expenditures, lease payments for corporate offices and information technology systems and equipment, state income tax (provision) benefit, Transaction and Organizational Restructuring Costs, changes in working capital, and interest income. (2) All Other
Slide 6: Segment Overview
6 2021 2022 1Q22 vs 1Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Total Senior Housing, Health Care Services, and All Other Revenue (1) $ 672,916 $ 678,976 $ 603,716 $ 608,838 $ 2,564,446 $ 640,303 (4.8) % Other operating income $ 10,735 $ 1,308 $ 89 $ 236 $ 12,368 $ 376 (
Slide 7: Senior Housing segment results
7 2021 2022 1Q22 vs 1Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Independent Living Revenue $ 118,782 $ 118,005 $ 119,584 $ 119,167 $ 475,538 $ 124,404 4.7 % Other operating income $ 1,364 $ 111 $ 9 $ 28 $ 1,512 $ 2 (99.9) % Segment Operating Income $ 37,329 $ 35,292 $ 36
Slide 8: Senior Housing Same Community
8 2021 2022 1Q22 vs 1Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Revenue $ 553,761 $ 561,366 $ 575,408 $ 582,834 $ 2,273,369 $ 614,441 11.0 % Other operating income 7,355 766 88 236 8,445 358 (95.1) % Revenue and other operating income 561,116 562,132 575,496 583,070 2,28
Slide 9: Same Community Independent Living
9 2021 2022 1Q22 vs 1Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Independent Living Revenue $ 117,572 $ 116,715 $ 118,100 $ 117,685 $ 470,072 $ 122,846 4.5 % Other operating income 1,345 111 8 28 1,492 2 (99.9) % Community Labor Expense (49,028) (49,617) (48,360) (48,848)
Slide 10: Senior Housing Owned Portfolio
10 2021 2022 1Q22 vs 1Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Revenue $ 336,160 $ 342,355 $ 350,664 $ 352,894 $ 1,382,073 $ 370,337 10.2 % Other operating income 5,098 552 77 196 5,923 300 (94.1) % Facility operating expense (280,235) (280,169) (287,180) (290,347) (1,
Slide 11: Senior Housing Leased Portfolio
11 2021 2022 1Q22 vs 1Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Revenue $ 241,339 $ 244,310 $ 249,431 $ 252,531 $ 987,611 $ 266,637 10.5 % Other operating income 3,054 234 12 40 3,340 76 (97.5) % Facility operating expense (189,046) (186,255) (193,243) (197,935) (766,47
Slide 12: General and Administrative Expense
12 (1) For 2022 periods, G&A allocations are calculated based on the proportional amount of resident fee revenue (consolidated and under management) attributable to the segment or portfolio. For 2021 periods, G&A allocations are calculated using a methodology which the Company believed matched the t
Slide 13: Capital Expenditures
13 ($ in 000s, except for community level capital expenditures, net, per average unit) 2021 2022 1Q22 vs 1Q21 1Q 2Q 3Q 4Q Full Year 1Q B(W) Community level capital expenditures, including allocations Senior Housing Owned Portfolio $ 14,286 $ 16,973 $ 17,237 $ 25,203 $ 73,699 $ 20,907 (46.3) % Senior
Slide 14: Cash Facility Lease Payments
14 (1) Includes cash lease payments for leases of corporate offices and information technology systems and equipment. 2021 2022 1Q22 vs 1Q21 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Operating Lease Obligations Facility operating lease expense $ 44,418 $ 43,864 $ 43,226 $ 42,850 $ 174,358 $ 41,564 O
Slide 15: Capital Structure
15 $439 $388 $646 $537 $476 $439 $381 $636 $529 $469 $7 $9 $8 $7 03/31/2021 06/30/2021 09/30/2021 12/31/2021 03/31/2022 Total Liquidity ($ in millions) (1) Includes the carrying amount of debt of which 93.7%, or $3.6 billion, represented non-recourse property-level mortgage financings. (2) Amount in
Slide 16: Definitions
16 Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: benefit/provision for income taxes, non-operating income/ expense items, and depreciation and amortization; and further adjusted to exclude income/expense associated with non-cash, non-opera
Slide 17: Definitions (continued)
17 RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue from the former Health Care Services segment, revenue for private duty services provided to seniors
Slide 18: Appendices
18 Appendices Summary Financial Impact: COVID-19 19 Non-GAAP Financial Measures 21
Slide 19: Summary Financial Impact: COVID-19
19 Summary Financial Impact: COVID-19 2020 2021 2022 ($ in 000s) Full Year 1Q 2Q 3Q 4Q Full Year 1Q Cumulative Independent Living Other operating income $ 11,823 $ 1,364 $ 111 $ 9 $ 28 $ 1,512 $ 2 $ 13,337 Facility operating expense $ 16,089 $ 3,047 $ 1,449 $ 938 $ 430 $ 5,864 $ 1,335 $ 23,288 Assis
Slide 20: Summary Financial Impact: COVID-19 Same Community
20 Summary Financial Impact: COVID-19 2021 2022 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q Independent Living Other operating income $ 1,345 $ 111 $ 8 $ 28 $ 1,492 $ 2 Facility operating expense $ 2,983 $ 1,364 $ 908 $ 431 $ 5,686 $ 1,310 Assisted Living and Memory Care Other operating income $ 4,930 $ 61
Slide 21: Non-GAAP Financial Measures
21 Non-GAAP Financial Measures This Supplemental Information contains the financial measures Adjusted EBITDA, Adjusted EBITDAR, 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
Slide 22: Adjusted EBITDA reconciliation
22 2021 2022 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q Net income (loss) $ (108,303) $ (83,604) $ 174,263 $ (81,720) $ (99,364) $ (100,032) Provision (benefit) for income taxes 752 (792) 15,279 (23,402) (8,163) (1,976) Equity in (earnings) loss of unconsolidated ventures 531 (13,946) 1,474 1,547 (10,394)
Slide 23: Adjusted EBITDAR and Adjusted EBITDA Reconciliations
23 Adjusted EBITDAR; Adjusted EBITDA; and Adjusted EBITDA after Cash Financing Lease Payments Reconciliations Trailing Twelve Months Ended March 31, 2022($ in 000s) Net income (loss) $ (91,093) Provision (benefit) for income taxes (10,891) Equity in (earnings) loss of unconsolidated ventures (6,031)
Slide 24: Net Debt and Adjusted Net Debt Reconciliations
24 Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of March 31, 2022 Long-term debt (including current portion) $ 3,848,535 Cash and cash equivalents (289,247) Marketable securities (179,260) Cash held as collateral against existing debt (18,406) Net Debt 3,361,622 Operating and financ
Slide 25: Adjusted Free Cash Flow Reconciliation
25 2021 2022 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q Net cash provided by (used in) operating activities $ (23,857) $ 3,410 $ 7,200 $ (81,387) $ (94,634) $ (23,255) Net cash provided by (used in) investing activities (3,806) 1,561 203,974 (20,272) 181,457 (36,163) Net cash provided by (used in) financi
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