Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Q3 2023 Earnings Presentation
25 slides from Sonida Senior Living's earnings presentation, Nov 14, 2023
Slide 1: A Leading Owner-Operator of Senior Living Communities and Services
A Leading Owner-Operator of Senior Living Communities and Services Investor Presentation – November 14, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements which are subject to certain risks and uncertainties that could cause our actual results and financial condition of Sonida Senior Living, Inc. (the “Company,” “we,” “our” or “us”) to differ materially from those indicat
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains financial measures: (1) Adjusted Operating Expenses, (2) Community Net Operating Income, (3) Community Net Operating Income Margin, (4) Adjusted Community Net Operating Income, (5) Adjusted Community Net Operating Income Margin, (6) Revenue per
Slide 4: Leading Operator of Senior Housing and Services
Leading Operator of Senior Housing and Services 71 ~8,000 84.9% Communities Q3 2023 Weighted Average 3,700+ Resident 61 Owned Occupancy for Owned Employees Capacity 10 Managed Communities (1) Attractive Markets and Resident Demographics (1) Attractive Private Pay Revenue Mix (1) 15+ Communities 5 -
Slide 5: Q3 2023 Operating Highlights
Q3 2023 Operating Highlights Ten consecutive YoY Q3 Resident quarters of revenue Revenue increased growth 12.6% Adjusted Community NOI(1) up 42.2% YoY and 7.6% QoQ Operating Margin(1) up 520 bps YoY and 90 bps QoQ RevPOR excluding state grants increased 10.8% YoY and 3.2% QoQ (1) Adjusted Community
Slide 6: Q3 2023 Capitalization Highlights
Q3 2023 Capitalization Highlights Completed debt restructuring covering 49 assets financed by Fannie Mae and Ally Bank Fannie Mae Key Terms ➢ All maturities extended to December 2026 or beyond ➢ All contractually required principal payments under the 37 Fannie Mae loans were deferred for three years
Slide 7: Q3 2023 Capitalization Highlights (continued)
Q3 2023 Capitalization Highlights (continued) Completed debt restructuring covering 49 assets financed by Fannie Mae and Ally Bank Other Key Highlights ➢ Weighted average maturities extended 1+ year with nearest maturity coming in December 2026 (previously July 2024) ➢ Total cost of debt is 3.4% and
Slide 8: Q3 2023 Financial Comparisons – Owned Communities
Q3 2023 Financial Comparisons – Owned Communities Adjusted Community NOI Margin increased 90bps from 23.3% in Q2 2023 to 24.2% in Q3 2023 Q3 2023 Q3 2022 Q2 2023 Weighted Average Occupancy 84.9% 83.4% 83.9% RevPAR(1,2) 3,446 $3,032 $3,300 RevPOR(1,2) 4,061 $3,636 $3,932 Resident Revenue(2) $59.1 $52
Slide 9: Ten Consecutive Quarters of Occupancy Growth (Same-Store)
Ten Consecutive Quarters of Occupancy Growth (Same-Store) 86.9% 85.4% 85.0% 85.0% 85.0% 84.9% 84.4% 84.2% 84.2% 84.2% 84.2% 84.0% 83.7% 83.5% 83.2% 82.3% 82.2% 82.2% 81.3% 81.0% 79.7% 78.1% 76.7% 75.5% Q4 '19 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1' 23 Q2' 23 Q3' 23 Weighted Avera
Slide 10: Q3 Revenue Highlights
Q3 Revenue Highlights Resident Rent Rate(1) Increases Level of Care “LoC” Program Impact • Simplified 4 level system with clear requirements Resident rent rates(1) • New monitoring tools implemented to reinforce timely increased $353 or LoC reviews based on company and state-specific 10.4% YoY compa
Slide 11: Revenue Growth Continues to Outpace Labor Costs
Revenue Growth Continues to Outpace Labor Costs • 3 consecutive quarters of stabilized Labor Costs (1) at Labor Costs (1) Trend as a Percent of Revenue(2) 46% of revenue. • YTD September 2023 Labor Costs (1) as a percentage of revenue are down 140 basis points compared to YTD September 2022 broken o
Slide 12: Non-Labor Operating Cost Holding Steady
Non-Labor Operating Cost Holding Steady Total Operating Expense Excluding Labor Costs(1) Trend • Q3 2023 expense, at 27.2% of revenue, was 313 basis points lower than the previous 8-quarter average. • Food costs per financial occupied day for Q3 2023 decreased 4.3% YoY compared to Q3 2022. • YTD Sep
Slide 13: Debt Structure as of September 30, 2023
Debt Structure as of September 30, 2023 Fixed Rate Protective Life 69.0% Non-Compliant Fixed Rate As of September 30,2023 ($ in millions) 8.8% Fixed Rate $ 437.6 Protective Life Non-Compliant Fixed Rate(1) Variable Rate (fully hedged) 55.8 137.3 4.9% Effective weighted Insurance and Other 3.5 averag
Slide 14: Supplemental Investor Information
Supplemental Investor Information Q3 2023
Slide 15: Table of Contents
Table of Contents 3 Forward Looking Statements Disclosure 4 Non-GAAP Financial Measures 5 Financial Overview 6 Community NOI 7 Net Income (Loss) Walk Forward 8 Adjusted EBITDA Walk Forward 9 Capitalization 10 Geographical Breakdown 11 Financial and Key Metrics 12 Market Fundamentals 2
Slide 16: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements which are subject to certain risks and uncertainties that could cause our actual results and financial condition of Sonida Senior Living, Inc. (the “Company,” “we,” “our” or “us”) to differ materially from those indicat
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains financial measures: (1) Adjusted Operating Expenses, (2) Community Net Operating Income, (3) Community Net Operating Income Margin, (4) Adjusted Community Net Operating Income, (5) Adjusted Community Net Operating Income Margin, (6) Revenue per
Slide 18: Financial Overview – Owned Communities
Financial Overview – Owned Communities Note: Dollars in 000s. Numbers may vary due to rounding. (1) Resident Revenue, Community NOI, Community NOI Margin %, Net Income (loss), Adjusted EBITDA, REVPOR, and REVPAR include the impact of non-recurring state grants earned and received in the period, as f
Slide 19: Community NOI – Owned Communities
Community NOI – Owned Communities Note: Dollars in 000s. Numbers may vary due to rounding. (1) Includes Second Person and Level of care fees. (2) Community NOI and Other Income include the impact of non-recurring state grants earned and received in the period. (3) Includes benefits, overtime, payrol
Slide 20: Net Income (Loss) Walk Forward
Net Income (Loss) Walk Forward Note: Dollars in 000s. Numbers may vary due to rounding. (1) Amounts are not calculated in accordance with GAAP. See page 4 for the Company’s disclosure regarding non-GAAP financial measures. . (2) Non-Operating Expenses include professional fees, settlement expense, n
Slide 21: Adjusted EBITDA Walk Forward
Adjusted EBITDA Walk Forward Note: Dollars in 000s. Numbers may vary due to rounding. (1) Casualty losses relate to non-recurring insured claims for unexpected events. (2) Transaction and conversion costs relate to legal and professional fees incurred for transactions, restructure projects, or relat
Slide 22: Capitalization as of September 30, 2023
Capitalization as of September 30, 2023 Net Debt (84.0%) Components of Total Capital Common Note: Dollars in 000s except for share price and strike price. Numbers may vary due to rounding. Equity (1) Weighted average interest rate (9.6%) (2) Variable exposure is synthetically limited with interest r
Slide 23: Geographical Breakdown – Owned Communities
Geographical Breakdown – Owned Communities South/Southwest Midwest East 18 Communities 35 Communities 8 Communities (1) Data based on Q3 2023 average and excludes the Shaker Heights community, which was sold in August of 2023. 10
Slide 24: T3M: Financial and Key Metrics – Owned Communities
T3M: Financial and Key Metrics – Owned Communities Note: Dollars in 000s. Numbers may vary due to rounding. Financial data presented is September 2023 trailing 3-month results. (1) Includes Second Person Fees and Level of care fees. (2) Revenue includes non-recurring state grant revenue earned and r
Slide 25: Market Fundamentals
Market Fundamentals Source: NIC MAP Vision as of November 8, 2023. Demographics data is current as of January 1, 2023. NIC MAP Vision Seniors Housing Inventory data is current as of the 3Q2023 Market Fundamentals update. Note: Dollars in 000s. Numbers may vary due to rounding. Primary (1) Based on a