Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q1 2021 Earnings Presentation
27 slides from Brookdale Senior Living's earnings presentation, May 6, 2021
Slide 1: Supplemental Information 1st Quarter 2021
Supplemental Information 1st Quarter 2021 Exhibit 99.2
Slide 2: Table of Contents
2 COVID-19 Financial Impact 3 Overview 4 Segment Overview 7 Senior Housing 8 Health Care Services 13 G&A Expense 14 Capital Expenditures 15 Cash Facility Lease Payments 16 Capital Structure 17 Definitions 18 Appendices: Summary Financial Impact: COVID-19 21 Non-GAAP Financial Measures 23 Table of Co
Slide 3: COVID-19 Financial Impact
3 COVID-19 Financial Impact 1Q 2021 ($ in 000s) 2020 Consolidated Total Independent Living Assisted Living and Memory Care CCRCs Health Care Services 1Q 2021 Consolidated Total Estimated lost resident fee revenue $ 281,100 $ 16,700 $ 62,900 $ 14,600 $ 23,300 $ 117,500 Other operating income 115,749
Slide 4: Overview
4 695 communities 59,598 units (1) Adjusted EBITDA for the first quarter and full year of 2020 includes the $100.0 million management agreement termination fee payment received from Healthpeak Properties Inc. ("Healthpeak" or "PEAK") related to the sale of Brookdale’s interest in the entry fee CCRC
Slide 5: Consolidated Overview
5 2020 2021 1Q21 vs. 1Q20 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Resident fee revenue $ 782,707 $ 731,629 $ 700,771 $ 677,460 $ 2,892,567 $ 664,350 (15.1) % Management fee revenue 108,715 6,076 5,669 10,230 130,690 8,566 (92.1) % Other operating income — 26,693 10,765 78,291 115,749 10,735 NM Fac
Slide 6: Overview footnotes
6 (1) The Company entered into definitive agreements with affiliates of HCA Healthcare, Inc., providing for the sale of 80% of the Company's equity in its Health Care Services segment, as further described in the press release issued on February 24, 2021. (2) Primarily consists of corporate capital
Slide 7: Segment Overview
7 2020 2021 1Q21 vs. 1Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Total Senior Housing, Health Care Services, and Management Services Revenue (1) $ 891,422 $ 737,705 $ 706,440 $ 687,690 $ 3,023,257 $ 672,916 (24.5) % Other operating income $ — $ 26,693 $ 10,765 $ 78,291 $
Slide 8: Senior Housing
8 2020 2021 1Q21 vs. 1Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Independent Living Revenue $ 135,862 $ 130,278 $ 125,762 $ 120,696 $ 512,598 $ 118,782 (12.6) % Other operating income $ — $ — $ 96 $ 11,727 $ 11,823 $ 1,364 NM Segment Operating Income $ 51,414 $ 41,038 $
Slide 9: Senior Housing Same Community
9 2020 2021 1Q21 vs. 1Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Revenue $ 643,232 $ 602,682 $ 579,036 $ 558,891 $ 2,383,841 $ 551,467 (14.3) % Other operating income — 7,044 3,856 74,959 85,859 7,554 NM Revenue and other operating income 643,232 609,726 582,892 633,850
Slide 10: Senior Housing Same Community by Type
10 2020 2021 1Q21 vs. 1Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Independent Living Revenue $ 132,556 $ 127,065 $ 122,498 $ 117,457 $ 499,576 $ 115,625 (12.8) % Other operating income — — 96 11,440 11,536 1,327 NM Community Labor Expense (48,247) (49,643) (48,085) (49,0
Slide 11: Senior Housing Owned Portfolio
11 2020 2021 1Q21 vs. 1Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Revenue $ 402,397 $ 376,140 $ 356,105 $ 338,806 $ 1,473,448 $ 336,160 (16.5) % Other operating income — 7,156 3,317 43,955 54,428 5,098 NM Facility operating expense (290,116) (301,459) (284,780) (286,816)
Slide 12: Senior Housing Leased Portfolio
12 2020 2021 1Q21 vs. 1Q20 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Revenue $ 285,491 $ 265,319 $ 254,763 $ 246,736 $ 1,052,309 $ 241,339 (15.5) % Other operating income — 2,542 1,556 34,336 38,434 3,054 NM Facility operating expense (194,426) (207,102) (191,417) (197,909)
Slide 13: Health Care Services
13 2020 2021 1Q21 vs. 1Q20 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Revenue Home health $ 65,948 $ 60,935 $ 61,586 $ 60,702 $ 249,171 $ 56,338 (14.6) % Hospice 23,182 23,849 22,997 25,439 95,467 24,499 5.7 % Outpatient Therapy 5,689 5,386 5,320 5,777 22,172 6,014 5.7 % Segment revenue 94,819 90,170
Slide 14: G&A Expense
14 (1) G&A includes both direct, incremental costs attributable to the segment or portfolio and allocated costs. G&A allocations are calculated using a methodology which the Company believes matches the type of general and administrative cost with the community, segment, or portfolio. Some of the al
Slide 15: Capital Expenditures
15 ($ in 000s, except for community level capital expenditures, net, per average unit) 2020 2021 1Q21 vs. 1Q20 1Q 2Q 3Q 4Q Full Year 1Q B(W) Community level capital expenditures, including allocations Senior Housing Owned Portfolio $ 36,735 $ 12,011 $ 12,236 $ 14,633 $ 75,615 $ 14,286 61.1 % Senior
Slide 16: Cash Facility Lease Payments
16 (1) Includes cash lease payments for leases of corporate offices and information technology systems and equipment. 2020 2021 1Q21 vs. 1Q20 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q B(W) Operating Lease Obligations Facility lease expense $ 64,481 $ 62,379 $ 51,620 $ 45,553 $ 224,033 $ 44,418 Operating
Slide 17: Capital Structure
17 Total Liquidity ($ in millions) $536 $600 $491 $575 $439 $501 $562 $491 $553 $439 $35 $38 $22 03/31/2020 06/30/2020 09/30/2020 12/31/2020 03/31/2021 (1) Includes the carrying value of mortgage debt and other notes payable of which 97.9%, or $3.8 billion, represented non-recourse property-level mo
Slide 18: Definitions
18 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 19: Definitions (continued)
19 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 Health Care Services segment revenue, revenue for private duty services provided to seniors living outside
Slide 20: Appendices
20 Appendices Summary Financial Impact: COVID-19 21 Non-GAAP Financial Measures 23
Slide 21: Summary Financial Impact: COVID-19 Consolidated
21 Summary Financial Impact: COVID-19 Consolidated The Company’s net cash provided by operating activities and Adjusted Free Cash Flow for 2020 include the benefit of temporary liquidity relief provided pursuant to the CARES Act, that includes: • The Company received $87.5 million under the Medicare
Slide 22: Summary Financial Impact: COVID-19 Same Community
22 Summary Financial Impact: COVID-19 Same Community The following table presents the known or estimated impacts related to the COVID-19 pandemic to the Company's Senior Housing Same Community quarterly and full year 2020 and first quarter 2021 results. Presentations of these impacts are intended to
Slide 23: Non-GAAP Financial Measures
23 Non-GAAP Financial Measures This Supplemental Information contains the financial measures Adjusted EBITDA, Adjusted EBITDAR, Adjusted EBITDA after cash financing lease payments, Adjusted Free Cash Flow, Net Debt, and Adjusted Net Debt (each as defined in the “Definitions” section), which are not
Slide 24: Adjusted EBITDA Reconciliation
24 2020 2021 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q Net income (loss) $ 369,497 $ (118,420) $ (124,993) $ (44,139) $ 81,945 $ (108,303) Provision (benefit) for income taxes (15,828) 8,504 14,884 (2,208) 5,352 752 Equity in (earnings) loss of unconsolidated ventures 1,008 (438) 293 1,244 2,107 531 Loss
Slide 25: Adjusted EBITDAR and Adjusted EBITDA Reconciliations
25 Adjusted EBITDAR; Adjusted EBITDA; and Adjusted EBITDA after Cash Financing Lease Payments Reconciliations Trailing Twelve Months Ended March 31, 2021($ in 000s) Net income (loss) $ (395,855) Provision (benefit) for income taxes 21,932 Equity in (earnings) loss of unconsolidated ventures 1,630 Lo
Slide 26: Net Debt and Adjusted Net Debt Reconciliations
26 Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of March 31, 2021 Long-term debt (including current portion) $ 3,889,791 Cash and cash equivalents (303,952) Marketable securities (134,933) Cash held as collateral against existing debt (18,652) Net Debt 3,432,254 Operating and financ
Slide 27: Adjusted Free Cash Flow Reconciliation
27 2020 2021 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q Net cash provided by (used in) operating activities $ 57,479 $ 151,840 $ (77,169) $ 73,499 $ 205,649 $ (23,857) Net cash provided by (used in) investing activities (247,927) (47,483) (48,554) (81,147) (425,111) (3,806) Net cash provided by (used in)
Brookdale Senior Living — Q1 2021 Earnings Presentation on 6ix