Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q3 2021 Earnings Presentation
27 slides from Brookdale Senior Living's earnings presentation, Nov 4, 2021
Slide 1: Supplemental Information 3rd Quarter 2021
Supplemental Information 3rd Quarter 2021 Exhibit 99.2
Slide 2: Table of Contents
2 COVID-19 Financial Impact 3 Overview 4 Segment Overview 7 Senior Housing 8 G&A Expense 13 Capital Expenditures 14 Cash Facility Lease Payments 15 Capital Structure 16 Definitions 17 Appendices: Summary Financial Impact: COVID-19 20 Non-GAAP Financial Measures 23 Table of Contents
Slide 3: COVID-19 Financial Impact
3 COVID-19 Financial Impact 3Q 2021 ($ in 000s) Full Year 2020 Consolidated Total 1Q 2021 Consolidated Total 2Q 2021 Consolidated Total Independent Living Assisted Living and Memory Care CCRCs 3Q 2021 Consolidated Total YTD 2021 Consolidated Total Estimated lost resident fee revenue $ 281,100 $ 117,
Slide 4: Overview
4 Managed 4,913 Owned 31,783 Leased 21,026 Managed 34 Owned 348 Leased 300 682 communities 57,722 units (1) Adjusted EBITDA for the first quarter and full year of 2020 includes the $100.0 million management agreement termination fee payment received from Healthpeak Properties Inc. ("Healthpeak" or "
Slide 5: Consolidated results overview
5 2020 2021 3Q21 vs 3Q20 YTD 3Q21 vs YTD 3Q20 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Resident fee revenue $ 782,707 $ 731,629 $ 700,771 $ 677,460 $ 2,892,567 $ 664,350 $ 673,978 $ 600,095 (14.4) % (12.5) % Management fee revenue 108,715 6,076 5,669 10,230 130,690 8,566 4,998 3,621 (36.
Slide 6: Segment Overview
6 (1) Primarily consists of corporate capital expenditures, changes in working capital, Transaction and Organizational Restructuring Costs, lease payments for corporate offices and information technology systems and equipment, interest income, and state income tax provision. (2) G&A includes both di
Slide 7: Senior Housing
7 2020 2021 3Q21 vs 3Q20 YTD 3Q21 vs YTD 3Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Total Senior Housing, Health Care Services, and Management Services Revenue (1) $ 891,422 $ 737,705 $ 706,440 $ 687,690 $ 3,023,257 $ 672,916 $ 678,976 $ 603,716 (14.5) % (16.
Slide 8: Independent Living
8 2020 2021 3Q21 vs 3Q20 YTD 3Q21 vs YTD 3Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Independent Living Revenue $ 135,862 $ 130,278 $ 125,762 $ 120,696 $ 512,598 $ 118,782 $ 118,005 $ 119,584 (4.9) % (9.1) % Other operating income $ — $ — $ 96 $ 11,727 $ 11,82
Slide 9: Assisted Living and Memory Care
9 2020 2021 3Q21 vs 3Q20 YTD 3Q21 vs YTD 3Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Revenue $ 638,568 $ 599,485 $ 574,949 $ 555,272 $ 2,368,274 $ 548,304 $ 555,600 $ 569,606 (0.9) % (7.7) % Other operating income — 6,444 3,704 74,311 84,459 7,395 767 87 (97.7
Slide 10: Independent Living Same Community
10 2020 2021 3Q21 vs 3Q20 YTD 3Q21 vs YTD 3Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Independent Living Revenue $ 132,556 $ 127,065 $ 122,498 $ 117,457 $ 499,576 $ 115,625 $ 114,659 $ 115,999 (5.3) % (9.4) % Other operating income — — 96 11,440 11,536 1,327 1
Slide 11: Senior Housing Owned Portfolio
11 2020 2021 3Q21 vs 3Q20 YTD 3Q21 vs YTD 3Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Revenue $ 402,397 $ 376,140 $ 356,105 $ 338,806 $ 1,473,448 $ 336,160 $ 342,355 $ 350,664 (1.5) % (9.3) % Other operating income — 7,156 3,317 43,955 54,428 5,098 552 77 (97.
Slide 12: Senior Housing Leased Portfolio
12 2020 2021 3Q21 vs 3Q20 YTD 3Q21 vs YTD 3Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Revenue $ 285,491 $ 265,319 $ 254,763 $ 246,736 $ 1,052,309 $ 241,339 $ 244,310 $ 249,431 (2.1) % (8.8) % Other operating income — 2,542 1,556 34,336 38,434 3,054 234 12 (99.
Slide 13: G&A Expense
13 (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 14: Capital Expenditures
14 ($ in 000s, except for community level capital expenditures, net, per average unit) 2020 2021 3Q21 vs 3Q20 YTD 3Q21 vs YTD 3Q20 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Community level capital expenditures, including allocations Senior Housing Owned Portfolio $ 36,735 $ 12,011 $ 12,236 $ 14,633 $
Slide 15: Cash Facility Lease Payments
15 (1) Includes cash lease payments for leases of corporate offices and information technology systems and equipment. 2020 2021 3Q21 vs 3Q20 YTD 3Q21 vs YTD 3Q20 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Operating Lease Obligations Facility operating lease expense $ 64,481 $ 62,379 $ 51,6
Slide 16: Capital Structure
16 $491 $575 $439 $388 $646 $491 $553 $439 $381 $636 $22 $7 $9 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Total Liquidity ($ in millions) (1) Includes the carrying value of mortgage debt and other notes payable of which 98.3%, or $3.8 billion, represented non-recourse property-level mortgage financings
Slide 17: Definitions
17 Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: benefit/provision for income taxes, non-operating income/ expense items, and depreciation and amortization; and further adjusted to exclude income/expense associated with non-cash, non-opera
Slide 18: Definitions (continued)
18 RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding Health Care Services segment revenue, revenue for private duty services provided to seniors living outside
Slide 19: Appendices
19 Appendices Summary Financial Impact: COVID-19 20 Non-GAAP Financial Measures 23
Slide 20: Summary Financial Impact: COVID-19 Consolidated
20 Summary Financial Impact: COVID-19 Consolidated ($ in 000s) 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Full Year 2020 1Q 2021 2Q 2021 3Q 2021 YTD 2021 COVID-19 Cumulative 2020 and 2021 Independent Living Estimated lost resident fee revenue $ 600 $ 7,200 $ 12,600 $ 18,500 $ 38,900 $ 16,700 $ 17,700 $ 17,900
Slide 21: Summary Financial Impact: COVID-19 Consolidated cash flow
21 Summary Financial Impact: COVID-19 Consolidated Certain cash flow impacts on working capital from the CARES Act and other government grants and credits are shown below: 2020 2021 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 2020 1Q 2Q 3Q YTD 2021 Cumulative 2020 and 2021 Cash received (recouped) - Medicare
Slide 22: Summary Financial Impact: COVID-19 Same Community
22 Summary Financial Impact: COVID-19 Same Community ($ in 000s) 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Full Year 2020 1Q 2021 2Q 2021 3Q 2021 YTD 2021 COVID-19 Cumulative 2020 and 2021 Independent Living Estimated lost resident fee revenue $ 600 $ 6,900 $ 12,500 $ 18,000 $ 38,000 $ 16,500 $ 17,600 $ 17,90
Slide 23: Non-GAAP Financial Measures
23 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 24: Net income to Adjusted EBITDA reconciliation
24 2020 2021 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q Net income (loss) $ 369,497 $ (118,420) $ (124,993) $ (44,139) $ 81,945 $ (108,303) $ (83,604) $ 174,263 Provision (benefit) for income taxes (15,828) 8,504 14,884 (2,208) 5,352 752 (792) 15,279 Equity in (earnings) loss of unconsolidated ventu
Slide 25: Adjusted EBITDAR and Adjusted EBITDA Reconciliations
25 Adjusted EBITDAR; Adjusted EBITDA; and Adjusted EBITDA after Cash Financing Lease Payments Reconciliations Trailing Twelve Months Ended September 30, 2021($ in 000s) Net income (loss) $ (61,783) Provision (benefit) for income taxes 13,031 Equity in (earnings) loss of unconsolidated ventures (10,6
Slide 26: Net Debt and Adjusted Net Debt Reconciliations
26 Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of September 30, 2021 Long-term debt (including current portion) $ 3,857,459 Cash and cash equivalents (478,509) Marketable securities (157,936) Cash held as collateral against existing debt (18,652) Net Debt 3,202,362 Operating and fi
Slide 27: Adjusted Free Cash Flow Reconciliation
27 2020 2021 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q Net cash provided by (used in) operating activities $ 57,479 $ 151,840 $ (77,169) $ 73,499 $ 205,649 $ (23,857) $ 3,410 $ 7,200 Net cash provided by (used in) investing activities (247,927) (47,483) (48,554) (81,147) (425,111) (3,806) 1,561 203
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