Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q2 2021 Earnings Presentation
27 slides from Brookdale Senior Living's earnings presentation, Aug 5, 2021
Slide 1: Supplemental Information 2nd Quarter 2021
Supplemental Information 2nd 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 2Q 2021 ($ in 000s) Full Year 2020 Consolidated Total 1Q 2021 Consolidated Total Independent Living Assisted Living and Memory Care CCRCs Health Care Services 2Q 2021 Consolidated Total YTD 2021 Consolidated Total Estimated lost resident fee revenue $ 281,100 $ 117,500 $
Slide 4: Overview
4 Managed 6,157 Owned 31,783 Leased 21,038 Managed 37 Owned 348 Leased 300685 communities 58,978 units (1) Adjusted EBITDA for the first quarter and full year of 2020 includes the $100.0 million management agreement termination fee payment received from Healthpeak Properties Inc. ("Healthpeak" or "P
Slide 5: Consolidated Results Overview
5 2020 2021 2Q21 vs. 2Q20 YTD 2Q21 vs YTD 2Q20 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Resident fee revenue $ 782,707 $ 731,629 $ 700,771 $ 677,460 $ 2,892,567 $ 664,350 $ 673,978 (7.9) % (11.6) % Management fee revenue 108,715 6,076 5,669 10,230 130,690 8,566 4,998 (17.7) % (88.2) % Other
Slide 6: Segment Overview
6 (1) On July 1, 2021, the Company sold 80% of its equity in its Health Care Services segment for net proceeds of $305.8 million at closing. (2) Primarily consists of corporate capital expenditures, changes in working capital, Transaction and Organizational Restructuring Costs, lease payments for co
Slide 7: Senior Housing Results
7 2020 2021 2Q21 vs. 2Q20 YTD 2Q21 vs YTD 2Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 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 (8.0) % (17.0) % Other op
Slide 8: Independent Living
8 2020 2021 2Q21 vs. 2Q20 YTD 2Q21 vs YTD 2Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Independent Living Revenue $ 135,862 $ 130,278 $ 125,762 $ 120,696 $ 512,598 $ 118,782 $ 118,005 (9.4) % (11.0) % Other operating income $ — $ — $ 96 $ 11,727 $ 11,823 $ 1,364 $
Slide 9: Senior Housing Same Community
9 2020 2021 2Q21 vs. 2Q20 YTD 2Q21 vs YTD 2Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Revenue $ 643,232 $ 602,682 $ 579,036 $ 558,891 $ 2,383,841 $ 551,467 $ 559,415 (7.2) % (10.8) % Other operating income — 7,044 3,856 74,959 85,859 7,554 769 (89.1) % 18.2 % Rev
Slide 10: Independent Living Same Community
10 2020 2021 2Q21 vs. 2Q20 YTD 2Q21 vs YTD 2Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Independent Living Revenue $ 132,556 $ 127,065 $ 122,498 $ 117,457 $ 499,576 $ 115,625 $ 114,659 (9.8) % (11.3) % Other operating income — — 96 11,440 11,536 1,327 110 NM NM Co
Slide 11: Senior Housing Owned Portfolio
11 2020 2021 2Q21 vs. 2Q20 YTD 2Q21 vs YTD 2Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Revenue $ 402,397 $ 376,140 $ 356,105 $ 338,806 $ 1,473,448 $ 336,160 $ 342,355 (9.0) % (12.8) % Other operating income — 7,156 3,317 43,955 54,428 5,098 552 (92.3) % (21.0) %
Slide 12: Senior Housing Leased Portfolio
12 2020 2021 2Q21 vs. 2Q20 YTD 2Q21 vs YTD 2Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Revenue $ 285,491 $ 265,319 $ 254,763 $ 246,736 $ 1,052,309 $ 241,339 $ 244,310 (7.9) % (11.8) % Other operating income — 2,542 1,556 34,336 38,434 3,054 234 (90.8) % 29.3 % Fa
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 2Q21 vs. 2Q20 YTD 2Q21 vs YTD 2Q20 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Community level capital expenditures, including allocations Senior Housing Owned Portfolio $ 36,735 $ 12,011 $ 12,236 $ 14,633 $ 7
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 2Q21 vs. 2Q20 YTD 2Q21 vs YTD 2Q20 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q B(W) B(W) Operating Lease Obligations Facility operating lease expense $ 64,481 $ 62,379 $ 51,620
Slide 16: Capital Structure and Total Liquidity
16 Total Liquidity ($ in millions) $600 $491 $575 $439 $694 $562 $491 $553 $439 $381 $38 $22 $7 $306 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 (1) Includes the carrying value of mortgage debt and other notes payable of which 98.1%, or $3.8 billion, represented non-recourse property-level mortgage fina
Slide 17: Definitions: Adjusted EBITDA
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: RevPOR and Same Community
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
20 Summary Financial Impact: COVID-19 Consolidated Health Care Services Estimated lost resident fee revenue $ 3,100 $ 14,800 $ 15,100 $ 19,600 $ 52,600 $ 23,300 $ 27,700 $ 51,000 $ 103,600 Other operating income $ — $ 16,995 $ 5,892 $ — $ 22,887 $ 2,583 $ 522 $ 3,105 $ 25,992 Facility operating expe
Slide 21: Summary Financial Impact: COVID-19 Cash Flow Impacts
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 YTD 2021 Cumulative 2020 and 2021 Cash received (recouped) - Medicare adv
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 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 $ 34,100 $ 72,1
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: Adjusted EBITDA Reconciliation
24 2020 2021 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q Net income (loss) $ 369,497 $ (118,420) $ (124,993) $ (44,139) $ 81,945 $ (108,303) $ (83,604) Provision (benefit) for income taxes (15,828) 8,504 14,884 (2,208) 5,352 752 (792) Equity in (earnings) loss of unconsolidated ventures 1,008 (438) 293
Slide 25: Adjusted EBITDAR and EBITDA Trailing Twelve Months Reconciliations
25 Adjusted EBITDAR; Adjusted EBITDA; and Adjusted EBITDA after Cash Financing Lease Payments Reconciliations Trailing Twelve Months Ended June 30, 2021($ in 000s) Net income (loss) $ (361,039) Provision (benefit) for income taxes 12,636 Equity in (earnings) loss of unconsolidated ventures (11,878)
Slide 26: Net Debt and Adjusted Net Debt Reconciliations
26 Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of June 30, 2021 Long-term debt (including current portion) $ 3,873,773 Cash and cash equivalents (280,675) Marketable securities (99,977) Cash held as collateral against existing debt (18,652) Net Debt 3,474,469 Operating and financin
Slide 27: Adjusted Free Cash Flow Reconciliation
27 2020 2021 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q Net cash provided by (used in) operating activities $ 57,479 $ 151,840 $ (77,169) $ 73,499 $ 205,649 $ (23,857) $ 3,410 Net cash provided by (used in) investing activities (247,927) (47,483) (48,554) (81,147) (425,111) (3,806) 1,561 Net cash provi
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