Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q1 2020 Earnings Presentation
27 slides from Brookdale Senior Living's earnings presentation, May 5, 2020
Slide 1: Supplemental Information 1st Quarter 2020
Exhibit 99.2 Supplemental Information 1st Quarter 2020
Slide 2: Table of Contents
Table of Contents Overview 4 Senior Housing 7 Health Care Services 11 G&A Expense 12 Capital Expenditures 13 Cash Facility Lease Payments 14 Capital Structure 15 Definitions 16 Appendices: Pro-Forma Financial Information 19 2019 Lease Accounting Standard (ASC 842) Impact 22 Non-GAAP Financial Measur
Slide 3: Safe Harbor
SAFE HARBOR Certain statements in this Supplemental Information 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 all statements regarding t
Slide 4: Overview
Overview 1Q20 vs. 2019 2020 1Q19 Better (B)/ ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q (Worse) (W) Resident fee and management fee revenue (1) $ 825,222 $ 817,312 $ 814,801 $ 809,704 $3,267,039 $ 891,422 8.0 % Net income (loss) (1) $ (42,606) $ (56,055) $ (78,508) $ (91,323) $ (268,492) $ 369,497 NM Net
Slide 5: Adjusted EBITDA and Adjusted Free Cash Flow
Adjusted EBITDA and Adjusted Free Cash Flow 1Q20 vs. 2019 2020 1Q19 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Resident fee and management fee revenue $ 825,222 $ 817,312 $ 814,801 $809,704 $3,267,039 $ 891,422 8.0 % Facility operating expense (586,094) (590,246) (615,717) (598,438) (2,390,495) (588,
Slide 6: Adjusted EBITDA and Adjusted Free Cash Flow Distribution 1Q 2020
Adjusted EBITDA and Adjusted Free Cash Flow Distribution 1Q 2020 Senior Senior Housing Housing Owned Leased Health Care Management ($ in 000s) Total Portfolio Portfolio Services Services Other (1) Resident fee and management fee revenue $ 891,422 $ 402,397 $ 285,491 $ 94,819 $ 108,715 $ — Facility o
Slide 7: Senior Housing: Same Community
Senior Housing: Same Community(1) 1Q20 vs. 2019 2020 1Q19 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Revenue $ 626,156 $ 621,261 $ 623,449 $ 624,028 $2,494,894 $ 638,984 2.0 % Community Labor Expenses (273,229) (276,286) (290,100) (288,803) (1,128,418) (288,960) (5.8) % Othe
Slide 8: Senior Housing Segments: Same Community
Senior Housing Segments: Same Community (1) 1Q20 vs. 2019 2020 1Q19 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Independent Living Revenue $126,822 $126,563 $126,823 $125,521 $ 505,729 $127,943 0.9 % Community Labor Expense (44,502) (45,749) (46,499) (46,552) (183,302) (46,29
Slide 9: Senior Housing Owned Portfolio
Senior Housing Owned Portfolio(1) 1Q20 vs. 2019 2020 1Q19 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Resident fee revenue $ 380,691 $ 375,900 $377,451 $373,793 $1,507,835 $402,397 5.7 % Facility operating expense (269,078) (271,222) (285,422) (273,557) (1,099,279) (290,116)
Slide 10: Senior Housing Leased Portfolio
Senior Housing Leased Portfolio(1) 1Q20 vs. 2019 2020 1Q19 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Resident fee revenue $ 317,256 $ 311,529 $ 312,001 $ 314,050 $1,254,836 $ 285,491 (10.0)% Facility operating expense (213,657) (213,757) (223,288) (218,241) (868,943) (194,4
Slide 11: Health Care Services
Health Care Services 1Q20 vs. 2019 2020 1Q19 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Resident fee revenue Home health $ 84,185 $ 85,233 $ 80,632 $ 77,440 $ 327,490 $ 65,948 (21.7)% Hospice 21,722 23,184 25,258 26,062 96,226 23,182 6.7 % Outpatient Therapy 5,625 6,017 5,895 6,007 23,544 5,689 1.1 %
Slide 12: G&A Expense
G&A Expense 1Q20 vs. Consolidated, unless otherwise noted 2019 2020 1Q19 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q B(W) G&A expense allocations (1) Senior Housing Owned Portfolio allocation $ 15,693 $ 16,875 $ 15,759 $ 13,553 $ 61,880 $ 18,635 (18.7)% Senior Housing Leased Portfolio allocation 13,078 13,
Slide 13: Capital Expenditures
Capital Expenditures 1Q20 vs. 2019 2020 1Q19 ($ in 000s, except for community level capital expenditures, net, per weighted average unit) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Community level capital expenditures, including allocations Senior Housing Owned Portfolio $ 24,967 $ 33,828 $ 33,144 $ 32,055 $ 123
Slide 14: Cash Facility Lease Payments
Cash Facility Lease Payments 1Q20 vs. 2019 2020 1Q19 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Operating Lease Obligations Facility lease expense $ 68,668 $ 67,689 $ 67,253 $ 66,056 $ 269,666 $ 64,481 Operating lease expense adjustment 4,383 4,429 4,814 5,827 19,453 6,733 Cash facility operating lea
Slide 15: Capital Structure
Capital Structure Total Liquidity Debt Structure (1) Debt ($ in millions) ($ in millions) ($ in millions) Maturity Weighted Rate Variable rate debt with 2020 $ 70 4.45% interest rate caps 2021 333 5.98% $600 $530 $536 Fixed rate 2022 350 4.14% $479 $481 $455 debt $1,266 2023 230 4.19% ) s n $400 o $
Slide 16: Definitions
Definitions Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net Lease Coverage is calculated based on the trailing-twelve months Leased Portfolio income (loss) excluding: benefit/provision for income taxes, non-operating income/ Operating Income, excluding resident fee
Slide 17: Definitions
Definitions RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is Segment Operating Income (Loss) is defined by the Company as segment revenue less defined by the Company as resident fee revenue for the corresponding portfolio for the segment facility operating expense
Slide 18: Appendices
Appendices Pro-Forma Financial Information 19 Lease Accounting Standard (ASC 842) Impact 22 Non-GAAP Financial Measures 23 18
Slide 19: Pro-Forma Financial Information
Pro-Forma Financial Information During the period of April 1, 2019 to March 31, 2020, the Company acquired 26 formerly leased communities and financed the acquisitions with $251.9 million of non-recourse mortgage debt, modified the terms of the amended and restated master lease with Healthpeak, sold
Slide 20: Pro-Forma Trailing Twelve Months
Pro-Forma Trailing Twelve Months Amounts Attributable Actual Results Amounts Attributable Less: Impact of Actual Results Trailing Twelve to Transactions Net of Amounts to Transactions Lease Standard Net of Amounts Months Ended Completed on Attributable to Completed or Expected Adopted on Attributabl
Slide 21: Pro-Forma First Quarter 2020
Pro-Forma First Quarter 2020 Actual Results Amounts Net of Amounts Amounts Attributable Attributable to Attributable to Actual Results Transactions the Lease Transactions Net of Amounts Completed or Standard and Completed Attributable to Expected to be Completed and 1Q 2020 Actual during Completed C
Slide 22: 2019 Lease Accounting Standard (ASC 842) Impact
2019 Lease Accounting Standard (ASC 842) Impact The Company’s adoption of the lease accounting standard, effective January 1, 2019, impacted the timing of the revenue and cost recognition associated with its residency agreements. For the full year 2019, the impact of the adoption and application to
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures This Supplemental Information contains the financial measures Adjusted EBITDA, Adjusted EBITDAR, Adjusted EBITDA after cash financing lease payments, Adjusted Free Cash Flow, Net Debt, and Adjusted Net Debt (each as defined in the “Definitions” section), which are not cal
Slide 24: Non-GAAP Financial Measures (continued): Adjusted EBITDA Reconciliation
Non-GAAP Financial Measures (continued) Adjusted EBITDA Reconciliation 2019 2020 Trailing Twelve Months Ended ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q March 31, 2020 Net income (loss) $ (42,606) $ (56,055) $ (78,508) $ (91,323) $(268,492) $369,497 $ 143,611 Provision (benefit) for income taxes 679 633 (
Slide 25: Adjusted EBITDAR and Adjusted EBITDA Reconciliations
Non-GAAP Financial Measures (continued) Adjusted EBITDAR; Adjusted EBITDA; and Adjusted EBITDA after Cash Financing Lease Payments Reconciliations (1) Trailing Twelve Months Ended ($ in 000s) March 31, 2020 Net income (loss) $ 143,611 Provision (benefit) for income taxes (18,776) Equity in (earnings
Slide 26: Net Debt and Adjusted Net Debt Reconciliations
Non-GAAP Financial Measures (continued) Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of March 31, 2020 Long-term debt (including current portion) $ 3,727,556 Line of credit 166,381 Cash and cash equivalents (392,674) Marketable securities (108,039) Cash held as collateral against ex
Slide 27: Adjusted Free Cash Flow Reconciliation
Non-GAAP Financial Measures (continued) Adjusted Free Cash Flow Reconciliation 2019 2020 Trailing Twelve Months Ended ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q March 31, 2019 Net cash provided by (used in) operating activities $ (5,009) $ 64,128 $ 69,211 $ 88,082 $ 216,412 $ 57,479 $ 278,900 Net cash pro
Brookdale Senior Living — Q1 2020 Earnings Presentation on 6ix