Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q4 2021 Earnings Presentation
27 slides from Brookdale Senior Living's earnings presentation, Feb 14, 2022
Slide 1: Supplemental Information 4th Quarter 2021
Supplemental Information 4th 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 4Q 2021 ($ in 000s) Full Year 2020 Consolidated Total 1Q 2021 Consolidated Total 2Q 2021 Consolidated Total 3Q 2021 Consolidated Total Independent Living Assisted Living and Memory Care CCRCs 4Q 2021 Consolidated Total YTD 2021 Consolidated Total Estimated lost resident f
Slide 4: Overview
4 Managed 4,824 Owned 31,636 Leased 20,949 Managed 33 Owned 347 Leased 299 679 communities 57,409 units (1) Adjusted EBITDA for the first quarter and full year of 2020 includes the $100.0 million management agreement termination fee payment received from Healthpeak Properties Inc. ("Healthpeak" or "
Slide 5: Consolidated Results
5 2020 2021 4Q21 vs 4Q20 Full Year 21 vs 20 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Resident fee revenue $ 782,707 $ 731,629 $ 700,771 $ 677,460 $ 2,892,567 $ 664,350 $ 673,978 $ 600,095 $ 605,425 $ 2,543,848 (10.6) % (12.1) % Management fee revenue 108,715 6,076 5,669 10,2
Slide 6: Consolidated Results Footnotes
6 (1) Primarily consists of changes in working capital, corporate capital expenditures, Transaction and Organizational Restructuring Costs, lease payments for corporate offices and information technology systems and equipment, interest income, and state income tax (provision) benefit. (2) Primarily
Slide 7: Segment Overview
7 2020 2021 4Q21 vs 4Q20 Full Year 21 vs 20 ($ 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 All Other Revenue (1) $ 891,422 $ 737,705 $ 706,440 $ 687,690 $ 3,023,257 $ 672,916 $ 678,976 $ 603,716 $ 608,838 $
Slide 8: Senior Housing Segments
8 2020 2021 4Q21 vs 4Q20 Full Year 21 vs 20 ($ 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 $ 135,862 $ 130,278 $ 125,762 $ 120,696 $ 512,598 $ 118,782 $ 118,005 $ 119,584 $ 119,167 $ 475,538 (1.3) % (7.2) % Other operating incom
Slide 9: Senior Housing Same Community
9 2020 2021 4Q21 vs 4Q20 Full Year 21 vs 20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue $ 631,424 $ 593,339 $ 568,544 $ 548,938 $ 2,342,245 $ 542,041 $ 549,142 $ 563,115 $ 570,160 $ 2,224,458 3.9 % (5.0) % Other operating income — 6,084 3,598 7
Slide 10: Independent Living Same Community
10 2020 2021 4Q21 vs 4Q20 Full Year 21 vs 20 ($ 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 $ 132,556 $ 127,065 $ 122,498 $ 117,457 $ 499,576 $ 115,625 $ 114,659 $ 115,999 $ 115,679 $ 461,962 (1.5) % (7.5) % Other operating inco
Slide 11: Senior Housing Owned Portfolio
11 2020 2021 4Q21 vs 4Q20 Full Year 21 vs 20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue $ 402,397 $ 376,140 $ 356,105 $ 338,806 $ 1,473,448 $ 336,160 $ 342,355 $ 350,664 $ 352,894 $ 1,382,073 4.2 % (6.2) % Other operating income — 7,156 3,317
Slide 12: Senior Housing Leased Portfolio
12 2020 2021 4Q21 vs 4Q20 Full Year 21 vs 20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue $ 285,491 $ 265,319 $ 254,763 $ 246,736 $ 1,052,309 $ 241,339 $ 244,310 $ 249,431 $ 252,531 $ 987,611 2.3 % (6.1) % Other operating income — 2,542 1,556 34
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 4Q21 vs 4Q20 Full Year 21 vs 20 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 $ 36,735 $ 12,011 $ 12,236
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 4Q21 vs 4Q20 Full Year 21 vs 20 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Operating Lease Obligations Facility operating lease expense $ 64,481 $ 62
Slide 16: Capital Structure
16 $575 $439 $388 $646 $537 $553 $439 $381 $636 $529 $22 $7 $9 $8 12/31/2020 03/31/2021 06/30/2021 09/30/2021 12/31/2021 Total Liquidity ($ in millions) (1) Includes the carrying amount of mortgage debt and convertible notes of which 94.1%, or $3.6 billion, represented non-recourse property-level mo
Slide 17: Definitions
17 Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: benefit/provision for income taxes, non-operating income/ expense items, and depreciation and amortization; and further adjusted to exclude income/expense associated with non-cash, non-opera
Slide 18: Definitions (continued)
18 RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue from the former Health Care Services segment, revenue for private duty services provided to seniors
Slide 19: Appendices
19 Appendices Summary Financial Impact: COVID-19 20 Non-GAAP Financial Measures 23
Slide 20: Summary Financial Impact: COVID-19 Consolidated
20 Summary Financial Impact: COVID-19 Consolidated ($ in 000s) 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Full Year 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Full Year 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,
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 1Q 2Q 3Q 4Q Full Year Cumulative 2020 and 2021 Cash received (recouped) - Medicare a
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 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Full Year 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 $ 1
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 Income from Operations Reconciliation
24 2020 2021 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Net income (loss) $ 369,497 $ (118,420) $ (124,993) $ (44,139) $ 81,945 $ (108,303) $ (83,604) $ 174,263 $ (81,720) $ (99,364) Provision (benefit) for income taxes (15,828) 8,504 14,884 (2,208) 5,352 752 (792) 15,279 (23,402) (8,16
Slide 25: Adjusted EBITDAR and Adjusted EBITDA Reconciliations
25 Adjusted EBITDAR; Adjusted EBITDA; and Adjusted EBITDA after Cash Financing Lease Payments Reconciliations Full Year 2021($ in 000s) Net income (loss) $ (99,364) Provision (benefit) for income taxes (8,163) Equity in (earnings) loss of unconsolidated ventures (10,394) Loss (gain) on debt modifica
Slide 26: Net Debt and Adjusted Net Debt Reconciliations
26 Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of December 31, 2021 Long-term debt (including current portion) $ 3,841,212 Cash and cash equivalents (347,031) Marketable securities (182,393) Cash held as collateral against existing debt (18,406) Net Debt 3,293,382 Operating and fin
Slide 27: Cash Flow and Adjusted Free Cash Flow Reconciliation
27 2020 2021 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Net cash provided by (used in) operating activities $ 57,479 $ 151,840 $ (77,169) $ 73,499 $ 205,649 $ (23,857) $ 3,410 $ 7,200 $ (81,387) $ (94,634) Net cash provided by (used in) investing activities (247,927) (47,483) (48,554) (
Brookdale Senior Living — Q4 2021 Earnings Presentation on 6ix