Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q3 2022 Earnings Presentation
25 slides from Brookdale Senior Living's earnings presentation, Nov 7, 2022
Slide 1: Supplemental Information 3rd Quarter 2022
Supplemental Information 3rd Quarter 2022 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 Appendices: Summary Financial Impact: COVID-19 19 Non-GAAP Financial Measures 21 Table of Contents
Slide 3: Overview
3 Managed 4,605 Owned 31,588 Leased 20,570 Managed 31 Owned 346 Leased 295 672 communities 56,763 units (1) The Company sold 80% of its equity in its Health Care Services segment on July 1, 2021 (the "HCS Sale") and recognized a $286.5 million gain on the sale. For periods beginning July 1, 2021, th
Slide 4: Segment Overview
4 2021 2022 3Q22 vs 3Q21 YTD 3Q22 vs YTD 3Q21 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Senior Housing resident fee revenue $ 577,499 $ 586,665 $ 600,095 $ 605,425 $ 2,369,684 $ 636,974 $ 640,388 $ 650,248 8.4 % 9.3 % Health Care Services resident fee revenue 86,851 87,313 — — 174,164 — —
Slide 5: Segment Overview 3Q 2022
5 (1) Resident fee revenue excluded from definitions of RevPAR and RevPOR is $914 thousand. (2) All Other primarily includes communities operated by the Company pursuant to management agreements. (3) Adjusted EBITDA for the third quarter of 2022 includes $66.8 million of government grants and credit
Slide 6: Senior Housing Segments
6 2021 2022 3Q22 vs 3Q21 YTD 3Q22 vs YTD 3Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Total Senior Housing, Health Care Services, and All Other Revenue (1) $ 672,916 $ 678,976 $ 603,716 $ 608,838 $ 2,564,446 $ 640,303 $ 643,717 $ 653,215 8.2 % (0.9) % Other ope
Slide 7: Senior Housing Independent Living
7 2021 2022 3Q22 vs 3Q21 YTD 3Q22 vs YTD 3Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Independent Living Revenue $ 118,782 $ 118,005 $ 119,584 $ 119,167 $ 475,538 $ 124,404 $ 125,578 $ 128,106 7.1 % 6.1 % Other operating income $ 1,364 $ 111 $ 9 $ 28 $ 1,512 $
Slide 8: Senior Housing Same Community
8 2021 2022 3Q22 vs 3Q21 YTD 3Q22 vs YTD 3Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Revenue $ 551,591 $ 559,084 $ 573,015 $ 580,306 $ 2,263,996 $ 611,894 $ 617,055 $ 629,491 9.9 % 10.4 % Other operating income 7,336 763 88 236 8,423 359 8,011 64,522 NM NM Rev
Slide 9: Same Community Independent Living
9 2021 2022 3Q22 vs 3Q21 YTD 3Q22 vs YTD 3Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Independent Living Revenue $ 117,572 $ 116,715 $ 118,100 $ 117,685 $ 470,072 $ 122,846 $ 123,890 $ 126,389 7.0 % 5.9 % Other operating income 1,345 111 8 28 1,492 2 1,146 9,27
Slide 10: Senior Housing Owned Portfolio
10 2021 2022 3Q22 vs 3Q21 YTD 3Q22 vs YTD 3Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Revenue $ 336,160 $ 342,355 $ 350,664 $ 352,894 $ 1,382,073 $ 370,337 $ 374,231 $ 379,913 8.3 % 9.3 % Other operating income 5,098 552 77 196 5,923 300 5,240 38,372 NM NM Fac
Slide 11: Senior Housing Leased Portfolio
11 2021 2022 3Q22 vs 3Q21 YTD 3Q22 vs YTD 3Q21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Revenue $ 241,339 $ 244,310 $ 249,431 $ 252,531 $ 987,611 $ 266,637 $ 266,157 $ 270,335 8.4 % 9.3 % Other operating income 3,054 234 12 40 3,340 76 3,171 28,387 NM NM Facilit
Slide 12: General and Administrative Expense
12 (1) For 2022 periods, G&A allocations are calculated based on the proportional amount of resident fee revenue (consolidated and under management) attributable to the segment or portfolio. For 2021 periods, G&A allocations are calculated using a methodology which the Company believed matched the t
Slide 13: Capital Expenditures
13 ($ in 000s, except for community level capital expenditures, net, per average unit) 2021 2022 3Q22 vs 3Q21 YTD 3Q22 vs YTD 3Q21 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Community level capital expenditures, including allocations Senior Housing Owned Portfolio $ 14,286 $ 16,973 $ 17,237 $ 25,203 $
Slide 14: Cash Facility Lease Payments
14 (1) Includes cash lease payments for leases of corporate offices and information technology systems and equipment. 2021 2022 3Q22 vs 3Q21 YTD 3Q22 vs YTD 3Q21 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q B(W) B(W) Operating Lease Obligations Facility operating lease expense $ 44,418 $ 43,864 $ 43,2
Slide 15: Capital Structure
15 $646 $537 $476 $412 $396 $636 $529 $469 $405 $389 $9 $8 $7 $7 $7 09/30/2021 12/31/2021 03/31/2022 06/30/2022 09/30/2022 Total Liquidity ($ in millions) (1) Includes the carrying amount of debt of which 93.9%, or $3.6 billion, represented non-recourse property-level mortgage financings. (2) The we
Slide 16: Definitions
16 Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: benefit/provision for income taxes, non-operating income/ expense items, and depreciation and amortization; and further adjusted to exclude income/expense associated with non-cash, non-opera
Slide 17: Definitions (continued)
17 RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue from the former Health Care Services segment, revenue for private duty services provided to seniors
Slide 18: Appendices
18 Appendices Summary Financial Impact: COVID-19 19 Non-GAAP Financial Measures 21
Slide 19: Summary Financial Impact: COVID-19
19 Summary Financial Impact: COVID-19 2020 2021 2022 ($ in 000s) Full Year 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q YTD 2022 Cumulative Independent Living Other operating income $ 11,823 $ 1,364 $ 111 $ 9 $ 28 $ 1,512 $ 2 $ 1,159 $ 9,520 $ 10,681 $ 24,016 Facility operating expense $ 16,089 $ 3,047 $ 1,449 $
Slide 20: Summary Financial Impact: COVID-19 Same Community
20 Summary Financial Impact: COVID-19 2021 2022 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q YTD 2022 Independent Living Other operating income $ 1,345 $ 111 $ 8 $ 28 $ 1,492 $ 2 $ 1,146 $ 9,276 $ 10,424 Facility operating expense $ 2,983 $ 1,364 $ 908 $ 431 $ 5,686 $ 1,310 $ 318 $ 424 $ 2,052 Assiste
Slide 21: Non-GAAP Financial Measures
21 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 22: Adjusted EBITDA Reconciliation
22 2021 2022 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q Net income (loss) $ (108,303) $ (83,604) $ 174,263 $ (81,720) $ (99,364) $ (100,032) $ (84,283) $ (28,374) Provision (benefit) for income taxes 752 (792) 15,279 (23,402) (8,163) (1,976) 1,190 (300) Equity in (earnings) loss of unconsolidated ve
Slide 23: Adjusted EBITDAR Reconciliations Twelve Months Ended September 30, 2022
23 Adjusted EBITDAR; Adjusted EBITDA; and Adjusted EBITDA after Cash Financing Lease Payments Reconciliations Twelve Months Ended September 30, 2022($ in 000s) Net income (loss) $ (294,409) Provision (benefit) for income taxes (24,488) Equity in (earnings) loss of unconsolidated ventures 10,900 Loss
Slide 24: Net Debt and Adjusted Net Debt Reconciliations
24 Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of September 30, 2022 Long-term debt (including current portion) $ 3,819,929 Cash and cash equivalents (299,201) Marketable securities (89,504) Cash held as collateral against existing debt (14,132) Net Debt 3,417,092 Operating and fin
Slide 25: Adjusted Free Cash Flow Reconciliation
25 2021 2022 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q Net cash provided by (used in) operating activities $ (23,857) $ 3,410 $ 7,200 $ (81,387) $ (94,634) $ (23,255) $ 11,577 $ 63,521 Net cash provided by (used in) investing activities (3,806) 1,561 203,974 (20,272) 181,457 (36,163) (43,838) 22,50
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