Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q3 2023 Earnings Presentation
23 slides from Brookdale Senior Living's earnings presentation, Nov 7, 2023
Slide 1: Investor Presentation November 6, 2023
Investor Presentation November 6, 2023
Slide 2: Forward-Looking Statements – Safe Harbor
Forward-Looking Statements – Safe Harbor Certain statements in this Investor Presentation 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
Slide 3: About Brookdale
About Brookdale ¢ NZ BROOKDALE SENIOR LIVING —
Slide 4: Brookdale at a Glance
Brookdale at a Glance 672 0 I C.. Communities \..Ull 1111 U I II lit:::, in 111 41 "+ I States (3) OUR MISSION .:>lei Lt:::, , - , Enriching the Lives of those we serve with compassion, respect, excellence and integrity OUR VISION . To be the nation’s First Choice • States States with with Presence
Slide 5: Offers a Broad Continuum of Services
Offers a Broad Continuum of Services INDEPENDENT LIVING HOME ASSISTED HEALTH LIVING HOSPICE MEMORY CARE OUTPATIENT SKILLED THERAPY NURSING FOR COMMUNITY RESIDENTsm TELEHEALTH RESPITE CARE 0 BROOKDALE SERVICES HEALTHCARE 0 THIRD-PARTY SERVICES PROFESSIONAL(2) RESIDENT IN-HOME SERVICES 0 VENTURE SERVI
Slide 6: 2023 Strategic Priorities
2023 Strategic Priorities Get every available unit in service at the best profitable rate • Increase number of seniors we serve through targeted efforts to further recover occupancy • Implement appropriate pricing actions which consider inflationary pressures and competitive labor markets • Improve
Slide 7: Recent Growth & Expectations
Recent Growth & Expectations
Slide 8: Strong Revenue Recovery over Past Two Years
Strong Revenue Recovery over Past Two Years Monthly Weighted Average Consolidated Occupancy(1) 85% 3Q23 920 bps growth since inflection point in March 2021 80% Weighted Avg. 77.6% YOY Growth 120 bps 75% I I ■ ■ I I - December 2022 –Year 70% • I I I III December 2021 – Year end occupancy (77.0%) 65%
Slide 9: Quality Adjusted EBITDA Growth
Quality Adjusted EBITDA Growth Execution of recovery strategy is delivering profitable and sustainable growth, even considering impact of recent changes in lease classification Changes in lease classification reduced Prior year included ~$61M Guidance Midpoint (mm) quarterly Adj. EBITDA every quarte
Slide 10: 2023 Fourth Quarter Guidance
2023 Fourth Quarter Guidance 4Q 2023 RevPAR YOY Growth 9.5% to 10.0% Adjusted EBITDA $77 million to $82 million Reconciliation of the non-GAAP financial measure included in the foregoing guidance to the most comparable GAAP financial measure is not available without unreasonable effort due to the in
Slide 11: Long-Term Organic Growth Opportunity
Long-Term Organic Growth Opportunity
Slide 12: Supply Trends Support Accelerated Revenue Growth
Supply Trends Support Accelerated Revenue Growth • Increasing material, labor, • Lower starts and opens enable and financing costs have • Inventory growth in 2022 was contributed to a slowdown in faster occupancy gains for its lowest since 2014(1). new construction. existing communities. U.S. CONSTR
Slide 13: Target Demographic is Growing
Target Demographic is Growing DEMOGRAPHIC TRENDS ~1 million new seniors By 2029 adults age 64+ will TARGET POPULATION(3) (mm) enter target market age cohort exceed number of children(2) +58% (5 yrs.) every year through 2030(1) 4 +37% (13 yrs.) 70% of adults age 65+ develop 18% of our residents are s
Slide 14: Proven Leader Where Industry is Growing Fastest
Proven Leader Where Industry is Growing Fastest Higher Acuity Needs: Chronic conditions in residential care(1) Brookdale Mix(2) SNF Industry Mix(2) 3% High Blood High BloodPressure Pressure Alzheimer's and Alzheimer's SNF Other and otherDementias dementias IL 9% Depression 27% -- Depression AL AL ,-
Slide 15: Brookdale is Best Positioned to Care for Seniors
Brookdale is Best Positioned to Care for Seniors Leadership Position UNAIDED BRAND AWARENESS(1) Brookdale Competitor A ~2X e is Well Recognized Competitor B more mentions #1 in Customer Satisfaction Earned most senior living of Brookdale than in 2022 among Assisted Living / community recognition Com
Slide 16: Robust Revenue Opportunity
Robust Revenue Opportunity Returning to pre-pandemic occupancy Achieving our historic occupancy high of 84.5% would drive at least $250M of of 89.0% would drive at least $420M of incremental revenue(1) incremental revenue(1) Brookdale Quarterly Weighted Average Occupancy Historical high 0 1 (4Q
Slide 17: Excellent Operating Income Potential
Excellent Operating Income Potential (billions) Senior Housing Revenue(1) Returning to pre-pandemic occupancy and operating margin would deliver $3.1 $3.3 significant Operating Income Growth $2.9 $2.6 Key Considerations Represents annualized revenue impact of returning to pre- pandemic (84.5%) or hi
Slide 18: Strong Growth in 2023 and Beyond
Strong Growth in 2023 and Beyond Key Drivers of Growth 1 Accelerating Demographic • Significant organic growth opportunity by Growth driving a powerful pandemic recovery in the highly-rated, lower-cost care setting 2 Meaningful Positive Shift in Supply Trend • Positioned for outsized benefit through
Slide 19: Appendix & Endnotes
Appendix & Endnotes SENIOR LIVING
Slide 20: Appendix
Appendix Definition RevPAR, or average monthly senior housing resident fee revenue per available 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 com
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA — Definition and Reconciliation 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 furthe
Slide 22: Endnotes
Endnotes Slide Reference 1. National Investment Center for Seniors Housing & Care (NIC) IL, AL, and MC units, NIC Supply Set 3Q 2023 2. Brookdale’s Senior Housing segments’ resident fees for the trailing 12 months ending September 30, 2023 4 3. As of September 30, 2023 4. For Brookdale, units as of
Slide 23: Endnotes
Endnotes Normal Seasonality Sequential View 1Q 2Q 3Q 4Q Lower due to increased Historically highest Occupancy Sequential Begins to turn positive Remains flat to slightly incidence and severity of sequential growth period Change towards end of quarter positive to third quarter flu of the year Full-qu
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