Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q2 2023 Earnings Presentation
23 slides from Brookdale Senior Living's earnings presentation, Aug 8, 2023
Slide 1: Investor Presentation August 7, 2023
Investor Presentation August 7, 2023
Slide 2: Forward-Looking Statements – Safe Harbor
Forward-Looking Statements – Safe Harbor Certain statements in this Investor Presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to various risks and uncertainties and include
Slide 3: About Brookdale
About Brookdale SENIOR LIVING
Slide 4: Brookdale at a Glance
Brookdale at a Glance 672 Communities in 41 States(3) OUR MISSION Enriching the Lives of those we serve with compassion, respect, excellence and integrity OUR VISION To be the nation’s First Choice States with Presence Brookdale Community in senior living Leader in Communities and Units Operated(4)
Slide 5: Offers a Broad Continuum of Services
Offers a Broad Continuum of Services INDEPENDENT LIVING HOME ASSISTED HEALTH LIVING HOSPICE MEMORY CARE OUTPATIENT SKILLED THERAPY NURSING TELEHEALTH RESPITE CARE BROOKDALE SERVICES THIRD-PARTY HEALTHCARE PROFESSIONAL(2) IN-HOME SERVICES SERVICES RESIDENT VENTURE PARTNER ENGAGEMENT SERVICES Ability
Slide 6: 2023 Strategic Priorities
2023 Strategic Priorities Get every available unit in service at the best profitable rate • Increase number of seniors we serve through targeted efforts to further recover occupancy • Implement appropriate pricing actions which consider inflationary pressures and competitive labor markets • Improve
Slide 7: Recent Growth & Expectations
Recent Growth & Expectations
Slide 8: Strong Revenue Recovery over Past Two Years
Strong Revenue Recovery over Past Two Years Monthly Weighted Average Consolidated Occupancy(1) 80% 770 bps growth since 2Q23 inflection point in March 2021 Weighted Avg. 76.5% 75% YOY Growth 190 bps December 2022 –Year end occupancy (77.0%) 70% December 2021 – Year end occupancy (73.6%) March 2021 –
Slide 9: Quality Adjusted EBITDA Growth
Quality Adjusted EBITDA Growth Execution of recovery strategy is delivering profitable and sustainable growth, even considering impact of recent changes in lease classification (mm) Recent changes in lease classification $125 Adj. EBITDA $88.6 reduce quarterly Adj. EBITDA (138% YOY Increase) Adj. EB
Slide 10: 2023 Third Quarter Guidance
2023 Third Quarter Guidance 3Q 2023 RevPAR YOY Growth 10.0% to 10.5% Adjusted EBITDA $73 million to $78 million Reconciliation of the non-GAAP financial measure included in the foregoing guidance to the most comparable GAAP financial measure is not available without unreasonable effort due to the in
Slide 11: Long-Term Organic Growth Opportunity
Long-Term Organic Growth Opportunity
Slide 12: Supply Trends Support Accelerated Revenue Growth
Supply Trends Support Accelerated Revenue Growth • Increasing material, labor, • Lower starts and opens enable and financing costs have • Inventory growth in 2022 was contributed to a slowdown in faster occupancy gains for its lowest since 2014(1). new construction. existing communities. U.S. CONSTR
Slide 13: Target Demographic is Growing
Target Demographic is Growing OPERATIONAL METRICS of our target senior population of our move-ins 17% of our residents are Baby Boomers 30% are under age 80 64% lives within 20 minutes of a Brookdale community(1) DEMOGRAPHIC TRENDS TARGET POPULATION(1) ~1 million new seniors enter 70% of adults age
Slide 14: Proven Leader Where Industry is Growing Fastest
Proven Leader Where Industry is Growing Fastest Higher Acuity Needs: Chronic conditions in residential care(1) Brookdale Mix(2) SNF Industry Mix(2) 3% High Blood High BloodPressure Pressure Alzheimer's Alzheimer's and SNF Other and otherDementias dementias IL 9% Depression Depression 27% AL AL 66% o
Slide 15: Brookdale is Best Positioned to Care for Seniors
Brookdale is Best Positioned to Care for Seniors UNAIDED BRAND AWARENESS(1) Brookdale Leadership Position Competitor A ~2X is Well Recognized Competitor B more mentions #1 in Customer Satisfaction Earned most senior living of Brookdale than among Assisted Living / community recognition Competitor C
Slide 16: Robust Revenue Opportunity
Robust Revenue Opportunity Returning to pre-pandemic occupancy Achieving our historic occupancy high of 84.5% would drive at least $295M of of 89.0% would drive at least $465M of incremental revenue(1) incremental revenue(1) Brookdale Quarterly Weighted Average Occupancy Historical high 1 (4Q 20
Slide 17: Excellent Operating Income Potential
Excellent Operating Income Potential (billions) Senior Housing Revenue(1) Returning to pre-pandemic occupancy and operating margin would deliver $3.1 $3.3 significant Operating Income Growth $2.8 $2.6 Key Considerations Represents annualized revenue impact of returning to pre- pandemic (84.5%) or hi
Slide 18: Strong Growth in 2023 and Beyond
Strong Growth in 2023 and Beyond Key Drivers of Growth 1 Accelerating Demographic • Significant organic growth opportunity by Growth driving a powerful pandemic recovery in the highly-rated, lower-cost care setting 2 Meaningful Positive Shift in Supply Trend • Positioned for outsized benefit through
Slide 19: Appendix & Endnotes
Appendix & Endnotes SENIOR LIVING
Slide 20: Appendix
Appendix Definition RevPAR, or average monthly senior housing resident fee revenue per available 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 com
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA — Definition and Reconciliation 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 furthe
Slide 22: Endnotes
Endnotes Slide Reference 1. National Investment Center for Seniors Housing & Care (NIC) IL, AL, and MC units, NIC Supply Set 2Q 2023 2. Brookdale’s Senior Housing segments’ resident fees for the trailing 12 months ending June 30, 2023 4 3. As of June 30, 2023 4. For Brookdale, units as of June 30, 2
Slide 23: Endnotes
Endnotes Normal Seasonality Sequential View 1Q 2Q 3Q 4Q Lower due to increased Historically highest Occupancy Sequential Begins to turn positive Remains flat to slightly incidence and severity of sequential growth period Change towards end of quarter positive to third quarter flu of the year Full-qu
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