Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q4 2022 Earnings Presentation
25 slides from Brookdale Senior Living's earnings presentation, Feb 21, 2023
Slide 1: Supplemental Information 4th Quarter 2022
Supplemental Information 4th 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 4,725 Owned 31,597 Leased 20,570 Managed 32 Owned 346 Leased 295 673 communities 56,892 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 $286.5 million gain on the sale. For periods beginning July 1, 2021, th
Slide 4: Segment Overview
4 2021 2022 4Q22 vs 4Q21 Full Year 22 vs 21 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year 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 $ 657,919 $ 2,585,529 8.7 % 9.1 % Health Care Services resident fee reve
Slide 5: Segment Overview: 4Q 2022 by portfolio
5 (1) Resident fee revenue excluded from definitions of RevPAR and RevPOR is $833 thousand. (2) All Other primarily includes communities operated by the Company pursuant to management agreements. (3) Facility operating expense includes the impact of Hurricane Ian and Winter Storm Elliott during the
Slide 6: Segment Overview (continued)
6 2021 2022 4Q22 vs 4Q21 Full Year 22 vs 21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year 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 $ 660,314 $
Slide 7: Senior Housing Segments
7 2021 2022 4Q22 vs 4Q21 Full Year 22 vs 21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Independent Living Revenue $ 118,782 $ 118,005 $ 119,584 $ 119,167 $ 475,538 $ 124,404 $ 125,578 $ 128,106 $ 129,705 $ 507,793 8.8 % 6.8 % Other operating income $
Slide 8: Senior Housing: Same Community
8 2021 2022 4Q22 vs 4Q21 Full Year 22 vs 21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue $ 551,591 $ 559,084 $ 573,015 $ 580,306 $ 2,263,996 $ 611,894 $ 617,055 $ 629,491 $ 636,857 $ 2,495,297 9.7 % 10.2 % Other operating income 7,336 763 88 236
Slide 9: Independent Living Same Community
9 2021 2022 4Q22 vs 4Q21 Full Year 22 vs 21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Independent Living Revenue $ 117,572 $ 116,715 $ 118,100 $ 117,685 $ 470,072 $ 122,846 $ 123,890 $ 126,389 $ 127,990 $ 501,115 8.8 % 6.6 % Other operating income 1,
Slide 10: Senior Housing Owned Portfolio
10 2021 2022 4Q22 vs 4Q21 Full Year 22 vs 21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue $ 336,160 $ 342,355 $ 350,664 $ 352,894 $ 1,382,073 $ 370,337 $ 374,231 $ 379,913 $ 386,244 $ 1,510,725 9.5 % 9.3 % Other operating income 5,098 552 77 196
Slide 11: Senior Housing Leased Portfolio
11 2021 2022 4Q22 vs 4Q21 Full Year 22 vs 21 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue $ 241,339 $ 244,310 $ 249,431 $ 252,531 $ 987,611 $ 266,637 $ 266,157 $ 270,335 $ 271,675 $ 1,074,804 7.6 % 8.8 % Other operating income 3,054 234 12 40 3,
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, per average unit) 2021 2022 4Q22 vs 4Q21 Full Year 22 vs 21 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Community level capital expenditures, including allocations Senior Housing Owned Portfolio $ 14,286 $ 16,973 $ 17,237 $ 25
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 4Q22 vs 4Q21 Full Year 22 vs 21 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Operating Lease Obligations Facility operating lease expense $ 44,418 $ 43
Slide 15: Capital Structure
15 $537 $476 $412 $396 $453 $529 $469 $405 $389 $448 $8 $7 $7 $7 $5 12/31/2021 03/31/2022 06/30/2022 09/30/2022 12/31/2022 Total Liquidity ($ in millions) (1) Includes the carrying amount of debt of which 92.0%, or $3.5 billion, represented non-recourse property-level mortgage financings. (2) The we
Slide 16: Definitions
16 Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: benefit/provision for income taxes, non-operating income/ expense items, and depreciation and amortization; and further adjusted to exclude income/expense associated with non-cash, non-opera
Slide 17: Definitions (continued)
17 RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue from the former Health Care Services segment, revenue for private duty services provided to seniors
Slide 18: Appendices
18 Appendices Summary Financial Impact: COVID-19 19 Non-GAAP Financial Measures 21
Slide 19: Summary Financial Impact: COVID-19
19 Summary Financial Impact: COVID-19 2020 2021 2022 ($ in 000s) Full Year 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Cumulative Independent Living Other operating income $ 11,823 $ 1,364 $ 111 $ 9 $ 28 $ 1,512 $ 2 $ 1,159 $ 9,520 $ 225 $ 10,906 $ 24,241 Facility operating expense $ 16,089 $ 3,047
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 4Q Full Year Independent Living Other operating income $ 1,345 $ 111 $ 8 $ 28 $ 1,492 $ 2 $ 1,146 $ 9,276 $ 225 $ 10,649 Facility operating expense $ 2,983 $ 1,364 $ 908 $ 431 $ 5,686 $ 1,310 $ 318 $ 424 $ 227
Slide 21: Non-GAAP Financial Measures
21 Non-GAAP Financial Measures This Supplemental Information contains the financial measures Adjusted EBITDA, 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 calculated in acco
Slide 22: Net Income to Income from Operations Reconciliation
22 2021 2022 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Net income (loss) $ (108,303) $ (83,604) $ 174,263 $ (81,720) $ (99,364) $ (100,032) $ (84,283) $ (28,374) $ (25,651) $ (238,340) Provision (benefit) for income taxes 752 (792) 15,279 (23,402) (8,163) (1,976) 1,190 (300) (473) (1,5
Slide 23: Adjusted EBITDA Reconciliations
23 Adjusted EBITDA and Adjusted EBITDA after Cash Financing Lease Payments Reconciliations Full Year 2022($ in 000s) Net income (loss) $ (238,340) Provision (benefit) for income taxes (1,559) Equity in (earnings) loss of unconsolidated ventures 10,782 Loss (gain) on debt modification and extinguishm
Slide 24: Net Debt and Adjusted Net Debt Reconciliations
24 Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of December 31, 2022 Long-term debt (including current portion) $ 3,850,142 Cash and cash equivalents (398,850) Marketable securities (48,680) Cash held as collateral against existing debt (14,132) Net Debt 3,388,480 Operating and fina
Slide 25: Adjusted Free Cash Flow Reconciliation
25 2021 2022 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Net cash provided by (used in) operating activities $ (23,857) $ 3,410 $ 7,200 $ (81,387) $ (94,634) $ (23,255) $ 11,577 $ 63,521 $ (48,562) $ 3,281 Net cash provided by (used in) investing activities (3,806) 1,561 203,974 (20,272)
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