Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q1 2024 Earnings Presentation
20 slides from Brookdale Senior Living's earnings presentation, May 7, 2024
Slide 1: Supplemental Information 1st Quarter 2024
Supplemental Information 1st Quarter 2024 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 4,579 Owned 31,169 Leased 19,844 Managed 30 Owned 345 Leased 277 652 communities 55,592 units Important Note Regarding Non-GAAP Financial Measures • Adjusted EBITDA and Adjusted Free Cash Flow are financial measures that are not calculated in accordance with GAAP. See "Definitions" and "No
Slide 4: Segment Overview: Consolidated Results
4 2023 2024 1Q24 vs 1Q23 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Resident fee revenue $ 713,404 $ 710,161 $ 717,123 $ 716,582 $ 2,857,270 $ 744,241 4.3 % Management fee revenue 2,577 2,510 2,566 2,508 10,161 2,618 1.6 % Other operating income 2,328 4,122 2,623 — 9,073 — (100.0) % Facility operatin
Slide 5: Segment Overview: 1Q 2024 by Portfolio
5 (1) Resident fee revenue excluded from definitions of RevPAR and RevPOR is $1.1 million. (2) All Other primarily includes communities operated by the Company pursuant to management agreements. (3) Excluding non-cash stock-based compensation expense and Transaction and Organizational Restructuring
Slide 6: Segment Overview: Combined Segments and Senior Housing
6 2023 2024 1Q24 vs 1Q23 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Total Senior Housing and All Other Revenue (1) $ 715,981 $ 712,671 $ 719,689 $ 719,090 $ 2,867,431 $ 746,859 4.3 % Other operating income $ 2,328 $ 4,122 $ 2,623 $ — $ 9,073 $ — (100.0) % Combined Segment Op
Slide 7: Senior Housing Segments
7 2023 2024 1Q24 vs 1Q23 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Independent Living Revenue $ 140,602 $ 140,670 $ 141,234 $ 141,506 $ 564,012 $ 148,948 5.9 % Other operating income $ 54 $ 218 $ 215 $ — $ 487 $ — (100.0) % Segment Operating Income $ 46,833 $ 46,361 $ 44,70
Slide 8: Senior Housing Same Community
8 2023 2024 1Q24 vs 1Q23 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Revenue $ 685,944 $ 685,095 $ 691,884 $ 694,681 $ 2,757,604 $ 729,127 6.3 % Other operating income 2,215 4,050 2,445 — 8,710 — (100.0) % Community Labor Expense (331,475) (333,600) (336,760) (335,850) (1,337
Slide 9: Same Community by Segment
9 2023 2024 1Q24 vs 1Q23 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Independent Living Revenue $ 140,602 $ 140,670 $ 141,234 $ 141,506 $ 564,012 $ 148,948 5.9 % Other operating income 54 218 215 — 487 — (100.0) % Community Labor Expense (54,936) (55,093) (55,800) (55,283) (2
Slide 10: Senior Housing Owned Portfolio
10 2023 2024 1Q24 vs 1Q23 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Revenue $ 418,624 $ 416,298 $ 420,351 $ 419,830 $ 1,675,103 $ 440,231 5.2 % Other operating income 1,885 3,515 1,828 — 7,228 — (100.0) % Facility operating expense (319,727) (318,572) (322,472) (318,611) (1
Slide 11: Senior Housing Leased Portfolio
11 2023 2024 1Q24 vs 1Q23 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Revenue $ 294,780 $ 293,863 $ 296,772 $ 296,752 $ 1,182,167 $ 304,010 3.1 % Other operating income 443 607 795 — 1,845 — (100.0) % Facility operating expense (211,080) (212,546) (214,939) (211,853) (850,418
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) 2023 2024 1Q24 vs 1Q23 1Q 2Q 3Q 4Q Full Year 1Q B(W) Community level capital expenditures, including allocations (1) Senior Housing Owned Portfolio $ 27,135 $ 32,882 $ 23,066 $ 24,992 $ 108,075 $ 25,309 6.7 % Senior Ho
Slide 14: Cash Facility Lease Payments
14 (1) Classification of amounts prospectively impacted by lease amendments in the second quarter of 2023 with no impact to total cash facility lease payments. (2) Includes cash lease payments for leases of community support centers and information technology systems and equipment. 2023 2024 1Q24 vs
Slide 15: Capital Structure
15 (1) Amount excludes $29 million in deferred financing costs, net. (2) Reflects rates as of March 31, 2024. (3) Variable rate maturities include $320 million of mortgage debt with extension options to 2027. (4) Fixed rate maturities include $230 million of 2.00% convertible senior notes. (5) Exclu
Slide 16: Definitions
16 Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: benefit/provision for income taxes, non-operating income/ expense items, and depreciation and amortization; and further adjusted to exclude income/expense associated with non-cash, non-opera
Slide 17: Definitions (continued)
17 RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue for private duty services provided to seniors living outside of the Company's communities and entra
Slide 18: Appendix: Non-GAAP Financial Measures
18 2023 2024 Twelve Months Ended March 31, 2024($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q Net income (loss) $ (44,563) $ (4,526) $ (48,811) $ (91,170) $ (189,070) $ (29,581) $ (174,088) Provision (benefit) for income taxes 572 275 (1,876) 9,813 8,784 (40) 8,172 Equity in (earnings) loss of unconsolidated
Slide 19: Net Debt and Adjusted Net Debt Reconciliations
19 Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of March 31, 2024 Long-term debt (including current portion) $ 3,757,813 Cash and cash equivalents (318,549) Cash held as collateral against existing debt (3,323) Net Debt 3,435,941 Operating and financing lease obligations 983,528 Ope
Slide 20: Adjusted Free Cash Flow Reconciliation
20 2023 2024 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q Net cash provided by (used in) operating activities $ 24,042 $ 63,824 $ 45,763 $ 29,294 $ 162,923 $ (1,146) Net cash provided by (used in) investing activities (62,019) (41,891) (31,837) 22,383 (113,364) (6,946) Net cash provided by (used in) financi
Brookdale Senior Living — Q1 2024 Earnings Presentation on 6ix