Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q4 2020 Earnings Presentation
30 slides from Brookdale Senior Living's earnings presentation, Feb 24, 2021
Slide 1: Supplemental Information 4th Quarter 2020
Supplemental Information 4th Quarter 2020 Exhibit 99.2
Slide 2: Table of Contents
2 COVID-19 Financial Impact 4 Overview 5 Segment Overview 8 Senior Housing 9 Health Care Services 14 G&A Expense 15 Capital Expenditures 16 Cash Facility Lease Payments 17 Capital Structure 18 Definitions 19 Appendices: Pro-Forma Financial Information 22 2019 Lease Accounting Standard (ASC 842) Impa
Slide 3: Safe Harbor
3 SAFE HARBOR Certain statements in this Supplemental Information may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to various risks and uncertainties and include all statements regarding
Slide 4: COVID-19 Financial Impact
4 COVID-19 Financial Impact 4Q 2020 ($ in 000s) 1Q 2020 2Q 2020 3Q 2020 Independent Living Assisted Living and Memory Care CCRCs Health Care Services 4Q 2020 Full Year 2020 Estimated lost resident fee revenue (1) $ 5,800 $ 63,600 $ 91,600 $ 18,500 $ 65,400 $ 16,600 $ 19,600 $ 120,100 $ 281,100 Other
Slide 5: Overview
5 726 communities 63,111 units (1) The 2019 periods presented include the non-recurring, non-cash revenue and expense associated with the Company's adoption of the lease accounting standard effective January 1, 2019. See page 25 for additional information. (2) Adjusted EBITDA for the first quarter a
Slide 6: Consolidated Financial Results Overview
6 2019 2020 4Q20 vs. 4Q19 Full Year 20 vs. 19 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Resident fee revenue $ 809,479 $ 801,863 $ 801,237 $ 797,352 $ 3,209,931 $ 782,707 $ 731,629 $ 700,771 $ 677,460 $ 2,892,567 (15.0) % (9.9) % Management fee revenue 15,743 15,449 13,564 12
Slide 7: Overview Footnotes
7 (1) Subsequent to the end of the quarter, the Company entered into definitive agreements with affiliates of HCA Healthcare, Inc., providing for the sale of 80% of the Company's equity in its Health Care Services segment, as further described in the press release issued on February 24, 2021. (2) Pr
Slide 8: Segment Overview
8 2019 2020 4Q20 vs. 4Q19 Full Year 20 vs. 19 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Total Senior Housing, Health Care Services, and Management Services Revenue (1) $ 825,222 $ 817,312 $ 814,801 $ 809,704 $ 3,267,039 $ 891,422 $ 737,705 $ 706,440
Slide 9: Senior Housing
9 2019 2020 4Q20 vs. 4Q19 Full Year 20 vs. 19 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Independent Living Revenue $ 135,694 $ 135,951 $ 136,874 $ 136,039 $ 544,558 $ 135,862 $ 130,278 $ 125,762 $ 120,696 $ 512,598 (11.3) % (5.9) % Other operating in
Slide 10: Senior Housing Same Community Results
10 2019 2020 4Q20 vs. 4Q19 Full Year 20 vs. 19 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue $ 615,284 $ 610,422 $ 612,501 $ 613,145 $ 2,451,352 $ 627,630 $ 588,401 $ 565,106 $ 545,392 $ 2,326,529 (11.1) % (5.1) % Other operating income — — — — —
Slide 11: Independent Living Same Community Results
11 2019 2020 4Q20 vs. 4Q19 Full Year 20 vs. 19 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Independent Living Revenue $ 126,822 $ 126,563 $ 126,823 $ 125,521 $ 505,729 $ 127,944 $ 122,716 $ 118,384 $ 113,156 $ 482,200 (9.9) % (4.7) % Other operating in
Slide 12: Senior Housing Owned Portfolio
12 2019 2020 4Q20 vs. 4Q19 Full Year 20 vs. 19 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue $ 380,691 $ 375,900 $ 377,451 $ 373,793 $ 1,507,835 $ 402,397 $ 376,140 $ 356,105 $ 338,806 $ 1,473,448 (9.4) % (2.3) % Other operating income — — — — —
Slide 13: Senior Housing Leased Portfolio
13 2019 2020 4Q20 vs. 4Q19 Full Year 20 vs. 19 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue $ 317,256 $ 311,529 $ 312,001 $ 314,050 $ 1,254,836 $ 285,491 $ 265,319 $ 254,763 $ 246,736 $ 1,052,309 (21.4) % (16.1) % Other operating income — — — —
Slide 14: Health Care Services
14 2019 2020 4Q20 vs. 4Q19 Full Year 20 vs. 19 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue Home health $ 84,185 $ 85,233 $ 80,632 $ 77,440 $ 327,490 $ 65,948 $ 60,935 $ 61,586 $ 60,702 $ 249,171 (21.6) % (23.9) % Hospice 21,722 23,184 25,258 26,062 96,226 23,182 23,849
Slide 15: G&A Expense
15 (1) G&A includes both direct, incremental costs attributable to the segment or portfolio and allocated costs. G&A allocations are calculated using a methodology which the Company believes matches the type of general and administrative cost with the community, segment, or portfolio. Some of the al
Slide 16: Capital Expenditures
16 ($ in 000s, except for community level capital expenditures, net, per weighted average unit) 2019 2020 4Q20 vs. 4Q19 Full Year 20 vs. 19 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Community level capital expenditures, including allocations Senior Housing Owned Portfolio $ 24,967 $ 33,8
Slide 17: Cash Facility Lease Payments
17 (1) Includes cash lease payments for leases of corporate offices and information technology systems and equipment. 2019 2020 4Q20 vs. 4Q19 Full Year 20 vs. 19 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Operating Lease Obligations Facility lease expense $ 68,668 $ 67,689 $ 6
Slide 18: Capital Structure and Total Liquidity
18 Total Liquidity ($ in millions) $481 $536 $600 $491 $575 $309 $501 $562 $491 $553 $172 $35 $38 $22 12/31/2019 03/31/2020 06/30/2020 09/30/2020 12/31/2020 $0 $200 $400 $600 (1) Includes the carrying value of mortgage debt and other notes payable of which 98.2%, or $3.8 billion, represented non-rec
Slide 19: Definitions: Adjusted EBITDA
19 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 20: Definitions: RevPOR and Same Community
20 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 Health Care Services segment revenue and entrance fee amortization, and, for the 2019 periods, the addition
Slide 21: Appendices
21 Appendices Pro-Forma Financial Information 22 2019 Lease Accounting Standard (ASC 842) Impact 25 Non-GAAP Financial Measures 26
Slide 22: Pro-Forma Financial Information
22 During the period of January 1, 2020 to December 31, 2020, the Company: • terminated its triple-net lease obligations on an aggregate of 32 communities, including through the acquisition of 27 formerly leased communities and financed the acquisitions with $263.0 million of non-recourse mortgage d
Slide 23: Pro-Forma Fourth Quarter 2020
23 Pro-Forma Fourth Quarter 2020(1) Consolidated 4Q20 Actual Results Amounts Attributable to Transactions Completed during 4Q20 Actual Results Net of Amounts Attributable to Completed Transactions Amounts Attributable to Transactions Completed or Expected to be Completed after December 31, 2020 Actu
Slide 24: Pro-Forma Full Year 2020
24 Pro-Forma Full Year 2020(1) Consolidated Full Year Actual Results Amounts Attributable to Transactions Completed on or before December 31, 2020 Actual Results Net of Amounts Attributable to Completed Transactions Amounts Attributable to Transactions Completed or Expected to be Completed after Dec
Slide 25: 2019 Lease Accounting Standard (ASC 842) Impact
25 1Q 2019 2Q 2019 Q3 2019 4Q 2019 Full Year 2019 ($ in 000s, except RevPAR and RevPOR) Total Senior Housing Total Senior Housing Total Senior Housing Total Senior Housing Total Senior Housing Independent Living Assisted Living and Memory Care CCRCs Resident fee revenue $ 2,780 $ 5,299 $ 7,958 $ 10,
Slide 26: Non-GAAP Financial Measures
26 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 27: Adjusted EBITDA Reconciliation
27 2019 2020 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Net income (loss) $ (42,606) $ (56,055) $ (78,508) $ (91,323) $ (268,492) $ 369,497 $ (118,420) $ (124,993) $ (44,139) $ 81,945 Provision (benefit) for income taxes 679 633 (1,800) (1,781) (2,269) (15,828) 8,504 14,884 (2,208) 5,35
Slide 28: Adjusted EBITDAR and Adjusted EBITDA Reconciliations
28 Adjusted EBITDAR; Adjusted EBITDA; and Adjusted EBITDA after Cash Financing Lease Payments Reconciliations (1) Full Year 2020($ in 000s) Net income (loss) $ 81,945 Provision (benefit) for income taxes 5,352 Equity in (earnings) loss of unconsolidated ventures 2,107 Loss (gain) on debt modificatio
Slide 29: Net Debt and Adjusted Net Debt Reconciliations
29 Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of December 31, 2020 Long-term debt (including current portion) $ 3,915,988 Cash and cash equivalents (380,420) Marketable securities (172,905) Cash held as collateral against existing debt (18,652) Net Debt 3,344,011 Operating and fin
Slide 30: Cash Flow and Adjusted Free Cash Flow Reconciliation
30 2019 2020 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Net cash provided by (used in) operating activities $ (5,009) $ 64,128 $ 69,211 $ 88,082 $ 216,412 $ 57,479 $ 151,840 $ (77,169) $ 73,499 $ 205,649 Net cash provided by (used in) investing activities (100,073) 19,774 (70,056) (75,1
Brookdale Senior Living — Q4 2020 Earnings Presentation on 6ix