Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q4 2018 Earnings Presentation
31 slides from Brookdale Senior Living's earnings presentation, Feb 13, 2019
Slide 1: Supplemental Information 4th Quarter 2018
Exhibit 99.2 Supplemental Information 4th Quarter 2018
Slide 2: Table of Contents
Table of Contents Financial Overview 3 Segment Overview 6 Senior Housing 7 Health Care Services 12 G&A Expense & Transaction Costs 13 Capital Expenditures 14 Cash Lease Payments 15 Unconsolidated Ventures 16 Debt & Liquidity 17 The Company reports information on five segments. Three segments Net Ass
Slide 3: Overview
Overview ($ in 000s) 2017 2018 YoY Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year B(W) Resident fee and management fee revenue $ 1,032,821 $ 956,512 $ 941,030 $ 925,622 $ 3,855,985 $ 924,947 $ 913,040 $ 858,707 $ 824,503 $ 3,521,197 (8.7)% Net income (loss) $ (126,361) $ (46,337) $ (413,929) $ 15,021 $
Slide 4: Adjusted EBITDA and Adjusted Free Cash Flow
Adjusted EBITDA and Adjusted Free Cash Flow (All amounts in 000s) 2017 2018 YoY Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year B(W) Resident fee and management fee revenue $ 1,032,821 $ 956,512 $ 941,030 $ 925,622 $ 3,855,985 $ 924,947 $ 913,040 $ 858,707 $ 824,503 $ 3,521,197 (8.7)% Less: Facility ope
Slide 5: Adjusted EBITDA and Adjusted Free Cash Flow Distribution Q4 2018
Adjusted EBITDA and Adjusted Free Cash Flow Distribution ($ in 000s) Q4 2018 Senior Senior Housing Housing Owned Leased Health Care Management Total Portfolio Portfolio Services Services Other (1) Resident fee and management fee revenue $ 824,503 $ 382,533 $ 315,938 $ 108,326 $ 17,706 $ — Less: Faci
Slide 6: Segment Overview
Segment Overview ($ in 000s, except RevPAR and RevPOR) 2017 2018 YoY Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year B(W) Total Senior Housing, Health Care Services and Management Services (1) Revenue $1,032,821 $ 956,512 $ 941,030 $ 925,622 $3,855,985 $ 924,947 $ 913,040 $ 858,707 $ 824,503 $3,521,197
Slide 7: Senior Housing Segments
Senior Housing Segments ($ in 000s, except RevPAR and RevPOR) 2017 2018 YoY Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year B(W) Independent Living Revenue $ 172,620 $ 162,248 $ 161,986 $ 157,342 $ 654,196 $ 158,397 $ 159,293 $ 144,631 $ 137,656 $ 599,977 (8.3)% Segment Operating Income $ 74,002 $ 67,29
Slide 8: Senior Housing: Same Community
Senior Housing: Same Community ($ in 000s, except RevPAR and RevPOR) 2017 (1) 2018 (1) YoY Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year B(W) Revenue $ 648,135 $ 640,755 $ 637,802 $ 639,082 $2,565,774 $ 647,347 $ 639,754 $ 640,513 $ 640,868 $2,568,482 0.1 % Community Labor Expense (266,221) (271,496)
Slide 9: Senior Housing: Owned Portfolio
Senior Housing: Owned Portfolio ($ in 000s, except RevPAR and RevPOR) 2017 2018 YoY Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year B(W) Resident fee revenue $ 388,310 $ 381,418 $ 376,896 $ 377,586 $1,524,210 $ 383,910 $ 388,108 $ 387,585 $ 382,533 $1,542,136 1.2 % Less: Facility operating expense (252,
Slide 10: Senior Housing: Leased Portfolio
Senior Housing: Leased Portfolio ($ in 000s, except RevPAR and RevPOR) 2017 2018 YoY Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year B(W) Resident fee revenue $ 516,645 $ 442,462 $ 435,392 $ 415,169 $1,809,668 $ 411,836 $ 398,008 $ 344,318 $ 315,938 $1,470,100 (18.8)% Less: Facility operating expense (3
Slide 11: Brookdale's Largest Markets - Competitive Summary
New Supply (1) Brookdale's Largest 20 Markets - Competitive Summary Brookdale in NIC Markets Competition Within 20 Minute Drive Total Q4 2018 IL/AL/MC 5 Yr 5 Yr Projected Average Weighted New 1 Yr Projected Projected Age 75 + Pop Community Units Average Q4 2018 New Const. Const. Unit Opens % Current
Slide 12: Health Care Services
Health Care Services ($ in 000s) 2017 2018 YoY Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year B(W) Resident fee revenue (1) Home Health $ 92,241 $ 88,561 $ 87,315 $ 89,272 $ 357,389 $ 85,490 $ 83,818 $ 81,722 $ 81,033 $ 332,063 (7.1)% Hospice 13,346 15,441 17,328 18,248 64,363 19,327 19,676 20,574 21,2
Slide 13: G&A Expense & Transaction Costs
G&A Expense & Transaction Costs ($ in 000s) 2017 2018 YoY Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year B(W) G&A expense allocations (1) Senior Housing Owned Portfolio allocation $ 16,808 $ 17,580 $ 16,326 $ 15,176 $ 65,890 $ 16,616 $ 14,924 $ 15,061 $ 14,641 $ 61,242 7.1 % Senior Housing Leased Portf
Slide 14: Capital Expenditures
Capital Expenditures ($ in 000s, except for Community level capital expenditures, net, per weighted average unit) 2017 2018 YoY Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year B(W) Community level capital expenditures, including allocations (1) Senior Housing Owned Portfolio $ 14,549 $ 17,493 $ 18,523 $
Slide 15: Cash Lease Payments
Cash Lease Payments ($ in 000s) 2017 2018 YoY Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year B(W) Operating Leases Facility lease expense $ 88,807 $ 84,690 $ 84,437 $ 81,787 $ 339,721 $ 80,400 $ 81,960 $ 70,392 $ 70,542 $ 303,294 10.7 % Less: Straight-line lease income 4,704 4,816 4,775 6,695 20,990 8,
Slide 16: Unconsolidated Ventures
Unconsolidated Ventures Year Ended Year Ended December 31, December 31, ($ in 000s) 2017 Q4 2018 2018 Total Total CCRC Venture Other Ventures Total Resident fee revenue $ 1,354,444 $ 108,415 $ 106,482 $ 1,933 $ 792,923 Less: Facility operating expense (946,477) (82,138) (80,812) (1,326) (591,568) Le
Slide 17: Debt & Liquidity
Debt & Liquidity Debt Structure (1) As of December 31, 2018 ($ in 000s) Weighted Rate Fixed rate debt 4.97% Variable rate debt (2) 4.44% Total debt and line of credit 4.77% $1,107,413 $1,383,566 30.4% Balance (1) $2,256,614 38.0% $276,153 Total debt $ 3,640,180 62.0% 7.6% Fixed rate debt Total varia
Slide 18: Debt Maturity & Leverage
Debt Maturity & Leverage Debt Maturity Schedule Weighted Rate ($ in 000s) Debt (2) 2019 4.91% $2,100,000 2020 5.47% 2021 5.96% 2022 4.44% $1,400,000 2023 4.54% $2,029,810 Thereafter 4.50% Total 4.77% $700,000 Total Balance Debt (2) $ 3,640,180 $294,426 $387,499 $333,392 $320,718 $274,335 $0 (1) (1)
Slide 19: Net Asset Value Elements
Net Asset Value Elements ($ in 000s and are for the year ended December 31, 2018 unless otherwise noted) Senior Housing: Owned Portfolio (1) Owned Portfolio Operating Income $ 471,857 Less: G&A Portfolio Allocation (2) (61,242) Owned Portfolio Operating Income (Adjusted to Include G&A Portfolio Allo
Slide 20: Definitions
Definitions Adjusted EBITDA is a non-GAAP financial measure that the Company defines as net Combined Segment Operating Income is defined by the Company as resident fee income (loss) before provision (benefit) for income taxes; non-operating (income) and management fee revenue of the Company, less fa
Slide 21: Definitions
Definitions Non-Development Capital Expenditures is comprised of corporate and Segment Operating Income is defined by the Company as segment revenues less community-level capital expenditures, including those related to maintenance, segment facility operating expenses. Segment Operating Income does
Slide 22: Appendix
Appendix Consolidated Statements of Cash Flows 23 Non-GAAP Financial Measures 24 Freedom Village Bradenton Bradenton, FL 22
Slide 23: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows ($ in 000s) 2017 2018 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Cash Flows from Operating Activities Net income (loss) $ (126,361) $ (46,337) $ (413,929) $ 15,021 $ (571,606) $ (457,234) $ (165,509) $ (37,140) $ 131,531 $ (528,352) Adjustments to reconcile net income (los
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures This Supplemental Information contains financial measures utilized by management to evaluate the Company’s operating performance and liquidity that are not calculated in accordance with GAAP, including Adjusted EBITDA; the Company's Proportionate Share of Adjusted EBITDA
Slide 25: Adjusted EBITDA Reconciliation
Non-GAAP Financial Measures (Continued) Adjusted EBITDA Reconciliation ($ in 000s) 2017 2018 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Net income (loss) $ (126,361) $ (46,337) $ (413,929) $ 15,021 $ (571,606) $ (457,234) $ (165,509) $ (37,140) $ 131,531 $ (528,352) Provision (benefit) for income taxes 84,028
Slide 26: Adjusted EBITDAR and Adjusted EBITDA Reconciliations
Non-GAAP Financial Measures (Continued) Adjusted EBITDAR; Adjusted EBITDA; and Adjusted EBITDA after cash capital and financing lease payments Reconciliations (excluding transaction and organizational restructuring costs) ($ in 000s) Year Ended December 31, 2018 Net income (loss) $ (528,352) Benefit
Slide 27: Net Debt and Adjusted Net Debt Reconciliations
Non-GAAP Financial Measures (Continued) Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of December 31, 2018 Long-term debt (including current portion) $ 3,640,180 Line of credit Less: cash and cash equivalents (398,267) Less: marketable securities (14,855) Less: cash held as collatera
Slide 28: Adjusted Free Cash Flow Reconciliation
Non-GAAP Financial Measures (Continued) Adjusted Free Cash Flow Reconciliation ($ in 000s) 2017 2018 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Net cash provided by operating activities $ 66,773 $ 133,759 $ 93,791 $ 84,036 $ 378,359 $ 37,964 $ 60,620 $ 71,924 $ 33,453 $ 203,961 Net cash (used in) provided by i
Slide 29: Proportionate Share of Adjusted EBITDA of Unconsolidated Ventures
Non-GAAP Financial Measures (Continued) Brookdale's Proportionate Share of Adjusted EBITDA of Unconsolidated Ventures For purposes of this presentation, amounts for each line item represent the aggregate amounts of such line items for all the Company's unconsolidated ventures. ($ in 000s) 2017 2018
Slide 30: Proportionate Share of Adjusted Free Cash Flow of Unconsolidated Ventures
Non-GAAP Financial Measures (Continued) Brookdale's Proportionate Share of Adjusted Free Cash Flow of Unconsolidated Ventures For purposes of this presentation, amounts for each line item represent the aggregate amounts of such line items for all the Company's unconsolidated ventures. ($ in 000s) 20
Slide 31: Brookdale Senior Living Inc.
Brookdale Senior Living Inc. 111 Westwood Place, Suite 400 Brentwood, TN 37027 (615) 221-2250 www.brookdale.com
Brookdale Senior Living — Q4 2018 Earnings Presentation on 6ix