Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q3 2023 Earnings Presentation
21 slides from Brookdale Senior Living's earnings presentation, Nov 6, 2023
Slide 1: Supplemental Information 3rd Quarter 2023
Supplemental Information 3rd 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 4,685 Owned 31,385 Leased 20,572 Managed 31 Owned 346 Leased 295 672 communities 56,642 units (1) Adjusted EBITDA includes government grants and credits recognized during the respective periods as presented in other operating income, including for the three months ended September 30, 2022,
Slide 4: Segment Overview: Consolidated Results
4 2022 2023 3Q23 vs 3Q22 YTD 3Q23 vs YTD 3Q22 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Resident fee revenue $ 636,974 $ 640,388 $ 650,248 $ 657,919 $ 2,585,529 $ 713,404 $ 710,161 $ 717,123 10.3 % 11.1 % Management fee revenue 3,329 3,329 2,967 2,395 12,020 2,577 2,510 2,566 (13.5) % (20
Slide 5: Segment Overview 3Q 2023
5 (1) Resident fee revenue excluded from definitions of RevPAR and RevPOR is $0.7 million. (2) All Other primarily includes communities operated by the Company pursuant to management agreements. (3) Excluding non-cash stock-based compensation expense and Transaction and Organizational Restructuring
Slide 6: Segment Overview: Senior Housing and All Other
6 2022 2023 3Q23 vs 3Q22 YTD 3Q23 vs YTD 3Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Total Senior Housing and All Other Revenue (1) $ 640,303 $ 643,717 $ 653,215 $ 660,314 $ 2,597,549 $ 715,981 $ 712,671 $ 719,689 10.2 % 10.9 % Other operating income $ 376 $ 8
Slide 7: Senior Housing: Independent Living
7 2022 2023 3Q23 vs 3Q22 YTD 3Q23 vs YTD 3Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Independent Living Revenue $ 124,404 $ 125,578 $ 128,106 $ 129,705 $ 507,793 $ 140,602 $ 140,670 $ 141,234 10.2 % 11.7 % Other operating income $ 2 $ 1,159 $ 9,520 $ 225 $ 10,
Slide 8: Senior Housing: Same Community
8 2022 2023 3Q23 vs 3Q22 YTD 3Q23 vs YTD 3Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Revenue $ 615,877 $ 621,611 $ 634,205 $ 642,189 $ 2,513,882 $ 696,364 $ 695,582 $ 702,703 10.8 % 11.9 % Other operating income 358 8,121 64,997 4,827 78,303 2,288 4,106 2,405
Slide 9: Independent Living Same Community
9 2022 2023 3Q23 vs 3Q22 YTD 3Q23 vs YTD 3Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Independent Living Revenue $ 124,404 $ 125,578 $ 128,106 $ 129,705 $ 507,793 $ 140,602 $ 140,670 $ 141,234 10.2 % 11.7 % Other operating income 2 1,159 9,520 225 10,906 54 218
Slide 10: Senior Housing Owned Portfolio
10 2022 2023 3Q23 vs 3Q22 YTD 3Q23 vs YTD 3Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Revenue $ 370,337 $ 374,231 $ 379,913 $ 386,244 $ 1,510,725 $ 418,624 $ 416,298 $ 420,351 10.6 % 11.6 % Other operating income 300 5,240 38,372 3,670 47,582 1,885 3,515 1,828
Slide 11: Senior Housing Leased Portfolio
11 2022 2023 3Q23 vs 3Q22 YTD 3Q23 vs YTD 3Q22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Revenue $ 266,637 $ 266,157 $ 270,335 $ 271,675 $ 1,074,804 $ 294,780 $ 293,863 $ 296,772 9.8 % 10.2 % Other operating income 76 3,171 28,387 1,253 32,887 443 607 795 (97.2)
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 3Q23 vs 3Q22 YTD 3Q23 vs YTD 3Q22 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Community level capital expenditures, including allocations (1) Senior Housing Owned Portfolio $ 20,907 $ 25,934 $ 24,568 $ 20,341 $
Slide 14: Cash Facility Lease Payments
14 (1) Classification of amounts prospectively impacted by lease amendments in the fourth quarter of 2022 and second quarter of 2023 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 a
Slide 15: Capital Structure
15 $396 $453 $439 $440 $405 09/30/2022 12/31/2022 03/31/2023 06/30/2023 09/30/2023 Total Liquidity ($ in millions) (1) Includes the carrying amount of debt of which 92.0%, or $3.5 billion, represented non-recourse property-level mortgage financings. (2) The weighted average fixed cap and swap rate i
Slide 16: Definitions
16 Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: benefit/provision for income taxes, non-operating income/ expense items, and depreciation and amortization; and further adjusted to exclude income/expense associated with non-cash, non-opera
Slide 17: Definitions (continued)
17 RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue for private duty services provided to seniors living outside of the Company's communities and entra
Slide 18: Appendix: Non-GAAP Financial Measures
18 Appendix: Non-GAAP Financial Measures This Supplemental Information contains the financial measures Adjusted EBITDA, Adjusted EBITDA after cash financing lease payments, Adjusted Free Cash Flow, Net Debt, and Adjusted Net Debt (each as defined in the "Definitions" section), which are not calculat
Slide 19: Adjusted EBITDA Reconciliation
19 2022 2023 Twelve Months Ended September 30, 2023($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q Net income (loss) $ (100,032) $ (84,283) $ (28,374) $ (25,651) $ (238,340) $ (44,563) $ (4,526) $ (48,811) $ (123,551) Provision (benefit) for income taxes (1,976) 1,190 (300) (473) (1,559) 572 275 (1,876)
Slide 20: Net Debt and Adjusted Net Debt Reconciliations
20 Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of September 30, 2023 Long-term debt (including current portion) $ 3,797,364 Cash and cash equivalents (331,716) Marketable securities (66,233) Cash held as collateral against existing debt (4,602) Net Debt 3,394,813 Operating and fina
Slide 21: Adjusted Free Cash Flow Reconciliation
21 2022 2023 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q Net cash provided by (used in) operating activities $ (23,255) $ 11,577 $ 63,521 $ (48,562) $ 3,281 $ 24,042 $ 63,824 $ 45,763 Net cash provided by (used in) investing activities (36,163) (43,838) 22,508 (9,936) (67,429) (62,019) (41,891) (31,8
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