Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q1 2023 Earnings Presentation
21 slides from Brookdale Senior Living's earnings presentation, May 8, 2023
Slide 1: Supplemental Information 1st Quarter 2023
Supplemental Information 1st Quarter 2023 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 4,725 Owned 31,598 Leased 20,584 Managed 32 Owned 346 Leased 295 673 communities 56,907 units Important Note Regarding Non-GAAP Financial Measures • Adjusted EBITDA and Adjusted Free Cash Flow are financial measures that are not calculated in accordance with GAAP. See "Definitions" and "No
Slide 4: Consolidated Results
4 2022 2023 1Q23 vs 1Q22 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Resident fee revenue $ 636,974 $ 640,388 $ 650,248 $ 657,919 $ 2,585,529 $ 713,404 12.0 % Management fee revenue 3,329 3,329 2,967 2,395 12,020 2,577 (22.6) % Other operating income 376 8,411 66,759 4,923 80,469 2,328 NM Facility ope
Slide 5: Segment Overview 1Q 2023
5 (1) Resident fee revenue excluded from definitions of RevPAR and RevPOR is $1.1 million. (2) All Other primarily includes communities operated by the Company pursuant to management agreements. (3) Adjusted EBITDA for the first quarter of 2023 includes $2.3 million of government grants and credits
Slide 6: Segment Overview
6 2022 2023 1Q23 vs 1Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Total Senior Housing and All Other Revenue (1) $ 640,303 $ 643,717 $ 653,215 $ 660,314 $ 2,597,549 $ 715,981 11.8 % Other operating income $ 376 $ 8,411 $ 66,759 $ 4,923 $ 80,469 $ 2,328 NM Combined Segment
Slide 7: Senior Housing Segments
7 2022 2023 1Q23 vs 1Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Independent Living Revenue $ 124,404 $ 125,578 $ 128,106 $ 129,705 $ 507,793 $ 140,602 13.0 % Other operating income $ 2 $ 1,159 $ 9,520 $ 225 $ 10,906 $ 54 NM Segment Operating Income $ 37,684 $ 38,709 $ 46
Slide 8: Senior Housing Same Community
8 2022 2023 1Q23 vs 1Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Revenue $ 617,848 $ 623,473 $ 636,112 $ 644,127 $ 2,521,560 $ 698,556 13.1 % Other operating income 358 8,136 65,283 4,827 78,604 2,289 NM Revenue and other operating income 618,206 631,609 701,395 648,954 2
Slide 9: Independent Living Same Community
9 2022 2023 1Q23 vs 1Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Independent Living Revenue $ 124,404 $ 125,578 $ 128,106 $ 129,705 $ 507,793 $ 140,602 13.0 % Other operating income 2 1,159 9,520 225 10,906 54 NM Community Labor Expense (51,787) (53,229) (53,865) (55,084)
Slide 10: Senior Housing Owned Portfolio
10 2022 2023 1Q23 vs 1Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Revenue $ 370,337 $ 374,231 $ 379,913 $ 386,244 $ 1,510,725 $ 418,624 13.0 % Other operating income 300 5,240 38,372 3,670 47,582 1,885 NM Facility operating expense (304,715) (307,694) (314,480) (319,835)
Slide 11: Senior Housing Leased Portfolio
11 2022 2023 1Q23 vs 1Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Revenue $ 266,637 $ 266,157 $ 270,335 $ 271,675 $ 1,074,804 $ 294,780 10.6 % Other operating income 76 3,171 28,387 1,253 32,887 443 NM Facility operating expense (208,049) (205,970) (211,030) (211,832) (83
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) 2022 2023 1Q23 vs 1Q22 1Q 2Q 3Q 4Q Full Year 1Q B(W) Community level capital expenditures, including allocations (1) Senior Housing Owned Portfolio $ 20,907 $ 25,934 $ 24,568 $ 20,341 $ 91,750 $ 27,135 (29.8) % Senior
Slide 14: Cash Facility Lease Payments
14 (1) Classification of amounts in 2023 prospectively impacted by a lease amendment in the fourth quarter of 2022, with no impact to total cash facility lease payments. See page 4. (2) Includes cash lease payments for leases of corporate offices and information technology systems and equipment. 202
Slide 15: Capital Structure
15 $476 $412 $396 $453 $439 03/31/2022 06/30/2022 09/30/2022 12/31/2022 03/31/2023 Total Liquidity ($ in millions) (1) Includes the carrying amount of debt of which 91.6%, or $3.5 billion, represented non-recourse property-level mortgage financings. (2) The weighted average fixed cap and swap rate i
Slide 16: Definitions
16 Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: benefit/provision for income taxes, non-operating income/ expense items, and depreciation and amortization; and further adjusted to exclude income/expense associated with non-cash, non-opera
Slide 17: Definitions (continued)
17 RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue for private duty services provided to seniors living outside of the Company's communities and entra
Slide 18: Appendix: Non-GAAP Financial Measures
18 Appendix: Non-GAAP Financial Measures This Supplemental Information contains the financial measures Adjusted EBITDA, Adjusted EBITDA after cash financing lease payments, Adjusted Free Cash Flow, Net Debt, and Adjusted Net Debt (each as defined in the "Definitions" section), which are not calculat
Slide 19: Adjusted EBITDA Reconciliation
19 2022 2023 Twelve Months Ended March 31, 2023($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q Net income (loss) $ (100,032) $ (84,283) $ (28,374) $ (25,651) $ (238,340) $ (44,563) $ (182,871) Provision (benefit) for income taxes (1,976) 1,190 (300) (473) (1,559) 572 989 Equity in (earnings) loss of unconsolid
Slide 20: Net Debt and Adjusted Net Debt Reconciliations
20 Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of March 31, 2023 Long-term debt (including current portion) $ 3,859,965 Cash and cash equivalents (362,235) Marketable securities (69,009) Cash held as collateral against existing debt (10,705) Net Debt 3,418,016 Operating and financi
Slide 21: Adjusted Free Cash Flow Reconciliation
21 2022 2023 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q Net cash provided by (used in) operating activities $ (23,255) $ 11,577 $ 63,521 $ (48,562) $ 3,281 $ 24,042 Net cash provided by (used in) investing activities (36,163) (43,838) 22,508 (9,936) (67,429) (62,019) Net cash provided by (used in) financi
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