Brookdale Senior Living Inc. (NYSE:BKD) Q4 2023 Earnings Call Transcript February 21, 2024 9:00 AM ET Company Participants Jessica Hazel - Investor Relations Cindy Baier - President, Chief Executive Officer & Director Dawn Kussow - Executive Vice President & Chief Financial Officer Conference Call Participants Ben Hendrix - RBC Capital Markets Joanna Gajuk - Bank of America Josh Raskin - Nephron Research Operator Good morning, all and welcome to the Brookdale Fourth Quarter 2023 Earnings Call. All lines hav ...

100 110 120 130 (Jan 2014=100) 1Q 2024 RevPAR YOY Growth 6.25% to 6.75% Adjusted EBITDA $90 million to $95 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 inherent difficulty in forecasting the timing or amounts of items required to reconcile Adjusted EBITDA from the Company's net income (loss). Variability in the timing or amounts of items required to reconcile t ...

Operational Overview - As of December 31, 2023, the company operated a total of 652 communities with 55,628 units, representing 100% of total units[154] - The company managed 30 communities (4,579 units) on behalf of others, accounting for 8% of its senior housing capacity[134] - The company provides memory care services at 338 communities, totaling 9,015 memory care units, including 107 freestanding memory care communities[131] - The company operates 68 independent living communities with 12,563 units, which is 22.6% of total units[154] - The company’s CCRCs consist of 17 communities with 4,731 units, representing 8.5% of total units[154] - Approximately 80% of the units in independent living communities were independent living units, with the remaining being assisted living and memory care units[127] Financial Performance - The revenue from resident fees and management fees totaled $2,867,431, with Assisted Living and Memory Care contributing 68.3% of this revenue at $1,960,432[156] - Total resident fees and management fees revenue increased by $269,882 thousand, or 10.4%, from $2,597,549 thousand in 2022 to $2,867,431 thousand in 2023[269] - Adjusted EBITDA rose by $94,233 thousand, or 39.1%, from $241,305 thousand in 2022 to $335,538 thousand in 2023[269] - Net cash provided by operating activities increased significantly from $3,281 thousand in 2022 to $162,923 thousand in 2023, a change of $159,642 thousand[283] - Adjusted Free Cash Flow improved by $153,754 thousand, or 76.3%, from $(201,385) thousand in 2022 to $(47,631) thousand in 2023[283] - The segment's resident fees increased by 8.4% to $295.8 million for the year ended December 31, 2023, compared to $273.0 million in 2022, driven by a 9.1% increase in same community RevPOR and a 200 basis point increase in occupancy[297][304] Occupancy and Market Trends - The company recovered 890 basis points of weighted average consolidated senior housing occupancy by December 31, 2023, after losing 1,330 basis points during the pandemic[202] - The weighted average occupancy rate improved by 190 basis points, increasing from 75.5% in 2022 to 77.4% in 2023[280] - RevPAR increased by $469, or 11.4%, from $4,110 in 2022 to $4,579 in 2023[280] - Same community RevPAR rose by 8.5% to $5,714 in 2023, up from $5,267 in 2022, reflecting improved occupancy and pricing strategies[304] Labor and Employment - As of December 31, 2023, the company employed approximately 36,000 associates, with 70% being full-time[191] - Approximately half of eligible full-time associates participated in the company's medical plans in 2023[181] - The company has reduced reliance on contract labor to pre-pandemic levels in the second half of 2023[192] - The company’s retention of key community leaders increased in 2023 compared to 2022 due to strategic initiatives[196] - The company has experienced increased associate turnover and difficulty in filling positions, necessitating enhancements to pay and benefits[241] Financial Position and Debt - The company had outstanding $3.5 billion in mortgage financing and $230 million in 2.00% convertible senior notes due 2026 as of December 31, 2023[203] - The company has $3.7 billion in outstanding debt at a weighted average interest rate of 5.58%, with 91.9% of this debt being non-recourse property-level mortgage financings[323] - The increase in interest expense was 16.4%, amounting to $238.3 million, compared to $204.7 million in the previous year[308] - The company faces risks related to its significant indebtedness and lease obligations, which could adversely affect liquidity and operational capabilities[215] - Financial covenants in debt and lease documents require maintaining prescribed liquidity and leverage ratios, impacting the company's ability to obtain additional financing[223] Liquidity and Capital Management - As of December 31, 2023, the company's liquidity was reported at $340.7 million, exceeding the required minimum of $130 million[216] - The liquidity included $278.0 million of unrestricted cash and cash equivalents, $29.8 million of marketable securities, and $32.9 million available on the secured credit facility[324] - The decrease in liquidity was primarily due to debt repayment of $358.8 million and negative Adjusted Free Cash Flow of $47.6 million[324] - The company aims to enhance liquidity by increasing RevPAR, maintaining expense discipline, refinancing maturing debt, and monetizing underperforming assets[208] Regulatory and Market Risks - The regulatory environment for the senior living industry is intensifying, which could materially affect the company's operations and expansion plans[198] - The company is heavily dependent on mortgage financing from Fannie Mae and Freddie Mac, which may become less available due to ongoing reform efforts[204] - Labor union activities could lead to increased costs and reduced operational flexibility, adversely affecting results and cash flow[235] - Increases in market interest rates could significantly raise the costs of debt obligations, negatively impacting results and cash flow[230] - The company is subject to various federal, state, and local environmental laws, which could impose substantial liabilities exceeding the value of underlying assets[242] Legal and Environmental Concerns - Legal actions and liability claims could lead to increased operating costs and uninsured liabilities, adversely affecting financial condition[247] - The company is involved in litigation and claims that may require significant costs to defend and resolve, impacting overall financial health[253] - The company faces risks related to environmental contamination, which could materially impact financial condition and results of operations[242]

NASHVILLE, Tenn., Feb. 6, 2024 /PRNewswire/ -- Brookdale Senior Living Inc. (NYSE: BKD) plans to release its fourth quarter and full-year 2023 financial results after the market closes on Tuesday, February 20, 2024.  The Company also plans to discuss the results on a conference call scheduled for Wednesday, February 21, 2024 at 9:00 a.m. (ET). BROOKDALE SENIOR LIVING - EARNINGS CALLDate:  Wednesday, February 21, 2024Time:  9:00 a.m. (ET) / 8:00 a.m. (CT) brookdaleinvestors.comCall Within US: +1 (833) 470-14 ...

The Medical group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Brookdale Senior Living (BKD) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question.Brookdale Senior Living is a member of our Medical group, which includes 1077 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank c ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metr ...

Brookdale Senior Living Inc. (NYSE:BKD) Q3 2023 Earnings Conference Call November 7, 2023 9:00 AM ET Company Participants Jessica Hazel - Vice President-Investor Relations Cindy Baier - President and Chief Executive Officer Dawn Kussow - Executive Vice President and Chief Financial Officer Conference Call Participants Josh Raskin - Nephron Research Operator Good morning or good afternoon and welcome to the Brookdale Senior Living Third Quarter 2023 Earnings Call. My name is Adam and I will be your operator ...

2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 70.5% 72.5% 73.5% 73.4% 74.6% 76.4% 77.1% 76.3% 76.5% 77.6% 8 Quality Adjusted EBITDA Growth | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------------------|-------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|----------------|-------------------|--------------|----------------------- ...

Brookdale Senior Living, Inc. (NYSE:BKD) Q2 2023 Earnings Conference Call August 8, 2023 9:00 AM ET Company Participants Jessica Hazel - Vice President-Investor Relations Lucinda Baier - President, Chief Executive Officer and Director Dawn Kussow - Executive Vice President and Chief Financial Officer Conference Call Participants Ben Hendrix - RBC Capital Markets Joshua Raskin - Nephron Research LLC Joanna Gajuk - Bank of America Steven Valiquette - Barclays Investment Bank Operator Hello, everyone and welco ...

As of June 30, 2023, $72.6 million of letters of credit and no cash borrowings were outstanding under the Company's $80.0 million secured credit facility. The credit facility matures on January 15, 2024 and the Company has the option to extend the facility for two additional terms of one year each subject to the satisfaction of certain conditions. The Company also had a separate secured letter of credit facility providing up to $15.0 million of letters of credit as of June 30, 2023 under which $14.5 million ...