Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q2 2022 Earnings Presentation
25 slides from Brookdale Senior Living's earnings presentation, Aug 8, 2022
Slide 1: Supplemental Information 2nd Quarter 2022
Supplemental Information 2nd 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 4,810 Owned 31,603 Leased 20,567 Managed 33 Owned 346 Leased 295 674 communities 56,980 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 $286.5 million gain on the sale. For periods beginning July 1, 2021, th
Slide 4: Segment Overview: Combined Segment Operating Income
4 2021 2022 2Q22 vs 2Q21 YTD 2Q22 vs YTD 2Q21 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Senior Housing resident fee revenue $ 577,499 $ 586,665 $ 600,095 $ 605,425 $ 2,369,684 $ 636,974 $ 640,388 9.2 % 9.7 % Health Care Services resident fee revenue 86,851 87,313 — — 174,164 — — N/A N/A Mana
Slide 5: Segment Overview 2Q 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: Senior Housing, Health Care Services and All Other
6 2021 2022 2Q22 vs 2Q21 YTD 2Q22 vs YTD 2Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) 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 $ 643,717 (5.2) % (5.0) % Other operating inco
Slide 7: Senior Housing: Independent Living
7 2021 2022 2Q22 vs 2Q21 YTD 2Q22 vs YTD 2Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Independent Living Revenue $ 118,782 $ 118,005 $ 119,584 $ 119,167 $ 475,538 $ 124,404 $ 125,578 6.4 % 5.6 % Other operating income $ 1,364 $ 111 $ 9 $ 28 $ 1,512 $ 2 $ 1,159 NM
Slide 8: Senior Housing: Same Community
8 2021 2022 2Q22 vs 2Q21 YTD 2Q22 vs YTD 2Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Revenue $ 552,104 $ 559,667 $ 573,689 $ 580,972 $ 2,266,432 $ 612,602 $ 617,730 10.4 % 10.7 % Other operating income 7,343 763 88 236 8,430 358 8,015 NM 3.3 % Revenue and other o
Slide 9: Same Community: Independent Living
9 2021 2022 2Q22 vs 2Q21 YTD 2Q22 vs YTD 2Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Independent Living Revenue $ 117,572 $ 116,715 $ 118,100 $ 117,685 $ 470,072 $ 122,846 $ 123,890 6.1 % 5.3 % Other operating income 1,345 111 8 28 1,492 2 1,146 NM (21.2) % Commu
Slide 10: Senior Housing Owned Portfolio
10 2021 2022 2Q22 vs 2Q21 YTD 2Q22 vs YTD 2Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Revenue $ 336,160 $ 342,355 $ 350,664 $ 352,894 $ 1,382,073 $ 370,337 $ 374,231 9.3 % 9.7 % Other operating income 5,098 552 77 196 5,923 300 5,240 NM (1.9) % Facility operating
Slide 11: Senior Housing Leased Portfolio
11 2021 2022 2Q22 vs 2Q21 YTD 2Q22 vs YTD 2Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Revenue $ 241,339 $ 244,310 $ 249,431 $ 252,531 $ 987,611 $ 266,637 $ 266,157 8.9 % 9.7 % Other operating income 3,054 234 12 40 3,340 76 3,171 NM (1.2) % Facility operating exp
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 2Q22 vs 2Q21 YTD 2Q22 vs YTD 2Q21 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Community level capital expenditures, including allocations Senior Housing Owned Portfolio $ 14,286 $ 16,973 $ 17,237 $ 25,203 $ 73
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 2Q22 vs 2Q21 YTD 2Q22 vs YTD 2Q21 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Operating Lease Obligations Facility operating lease expense $ 44,418 $ 43,864 $ 43,226
Slide 15: Capital Structure
15 $388 $646 $537 $476 $412 $381 $636 $529 $469 $405 $7 $9 $8 $7 $7 06/30/2021 09/30/2021 12/31/2021 03/31/2022 06/30/2022 Total Liquidity ($ in millions) (1) The Company accepted approximately $60 million of Phase 4 grants from the Public Health and Social Services Emergency Fund ("PRF") on August
Slide 16: Definitions
16 Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: benefit/provision for income taxes, non-operating income/ expense items, and depreciation and amortization; and further adjusted to exclude income/expense associated with non-cash, non-opera
Slide 17: Definitions (continued)
17 RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue from the former Health Care Services segment, revenue for private duty services provided to seniors
Slide 18: Appendices
18 Appendices Summary Financial Impact: COVID-19 19 Non-GAAP Financial Measures 21
Slide 19: Summary Financial Impact: COVID-19
19 Summary Financial Impact: COVID-19 2020 2021 2022 ($ in 000s) Full Year 1Q 2Q 3Q 4Q Full Year 1Q 2Q YTD 2022 Cumulative Independent Living Other operating income $ 11,823 $ 1,364 $ 111 $ 9 $ 28 $ 1,512 $ 2 $ 1,159 $ 1,161 $ 14,496 Facility operating expense $ 16,089 $ 3,047 $ 1,449 $ 938 $ 430 $
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 2Q YTD 2022 Independent Living Other operating income $ 1,345 $ 111 $ 8 $ 28 $ 1,492 $ 2 $ 1,146 $ 1,148 Facility operating expense $ 2,983 $ 1,364 $ 908 $ 431 $ 5,686 $ 1,310 $ 318 $ 1,628 Assisted Living and Memor
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 2Q Net income (loss) $ (108,303) $ (83,604) $ 174,263 $ (81,720) $ (99,364) $ (100,032) $ (84,283) Provision (benefit) for income taxes 752 (792) 15,279 (23,402) (8,163) (1,976) 1,190 Equity in (earnings) loss of unconsolidated ventures 531 (13,946)
Slide 23: Adjusted EBITDAR and Adjusted EBITDA Reconciliations
23 Adjusted EBITDAR; Adjusted EBITDA; and Adjusted EBITDA after Cash Financing Lease Payments Reconciliations Twelve Months Ended June 30, 2022($ in 000s) Net income (loss) $ (91,772) Provision (benefit) for income taxes (8,909) Equity in (earnings) loss of unconsolidated ventures 10,354 Loss (gain)
Slide 24: Net Debt and Adjusted Net Debt Reconciliations
24 Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of June 30, 2022 Long-term debt (including current portion) $ 3,834,160 Cash and cash equivalents (238,757) Marketable securities (165,481) Cash held as collateral against existing debt (15,717) Net Debt 3,414,205 Operating and financi
Slide 25: Adjusted Free Cash Flow Reconciliation
25 2021 2022 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q Net cash provided by (used in) operating activities $ (23,857) $ 3,410 $ 7,200 $ (81,387) $ (94,634) $ (23,255) $ 11,577 Net cash provided by (used in) investing activities (3,806) 1,561 203,974 (20,272) 181,457 (36,163) (43,838) Net cash provided
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