Financial Data and Key Metrics Changes - The company reported a same-store net operating income increase of 31% year-over-year and 19% sequentially, with operating margins expanding by 400 basis points to 28% [7][19] - Average occupancy for the second quarter improved by 220 basis points year-over-year to 86.2%, with June occupancy reaching 87.9% [5][17] - Revenue per occupied room (RevPOR) and revenue per available room (RevPAR) increased by 8.3% and 11.3% year-over-year, respectively [19] Business Line Data and Key Metrics Changes - The same-store owned portfolio achieved its highest occupancy in history, with a focus on improving underperforming communities [5][6] - Rate growth was driven by annual increases and a positive re-leasing spread, resulting in an 8.4% year-over-year rate growth [6][19] - Assisted living and memory care levels experienced double-digit rate increases, outpacing independent living [20] Market Data and Key Metrics Changes - The company continues to identify high-quality recently constructed communities for acquisition, deploying approximately $50 million in equity [10][12] - The market dynamics indicate a growing senior population against a backdrop of reduced construction activity, presenting opportunities for growth [16] Company Strategy and Development Direction - The company aims to achieve a portfolio-wide occupancy of 90% and believes normalized occupancy can exceed this level in the coming years [6] - Focus areas include strengthening local leadership, investing in capital for community performance, and stabilizing underperforming communities [7][8] - The company introduced an Operational Excellence Team to support the integration of new acquisitions and improve operational performance [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing recovery of the senior housing market and the company's ability to capitalize on growth opportunities [16][26] - The company is committed to achieving positive all-in cash flow by year-end and improving performance in recently acquired communities [26] - Management highlighted the importance of strong local leadership and talent retention for stabilizing challenged assets [13] Other Important Information - The total cost of labor declined by 2% sequentially, with a 3.3% year-over-year increase, indicating improved labor cost management [10][21] - The company has reduced its outstanding indebtedness by nearly $60 million year-over-year, focusing on deleveraging its balance sheet [24][25] Q&A Session Summary - No specific questions or answers were provided in the transcript, indicating the conclusion of the conference call without a Q&A segment [27]

Revenue Performance - Revenue for Q2 2024 was $63.1 million, an increase of $6.1 million or 10.7% compared to Q2 2023[10] - Same-store resident revenue increased by $5.7 million, or 10.0%, year-over-year[3] - Total revenues for the three months ended June 30, 2024, were $70.2 million, a 11.5% increase from $62.9 million in the same period of 2023[27] - Resident revenue for the six months ended June 30, 2024, was $123.8 million, up 9.8% from $113.6 million in the prior year[27] - Resident revenue for Q2 2024 reached $63,108,000, up from $56,960,000 in Q2 2023, indicating an increase of 10.5%[40] Occupancy and Community Performance - Weighted average occupancy for the same-store portfolio increased by 230 basis points to 86.2% from 83.9% in Q2 2023[3] - Same-store community net operating income for Q2 2024 was $17,681,000, an increase of $4,132,000 compared to Q2 2023's $13,549,000, representing a 30.5% growth[46] - The consolidated community net operating income margin improved to 28.2% in Q2 2024, compared to 23.8% in Q2 2023, marking a 4.4 percentage point increase[46] Financial Metrics - Adjusted EBITDA for Q2 2024 was $11.4 million, representing a year-over-year increase of $3.8 million or 50.6%[3] - The adjusted EBITDA for Q2 2024 was $11,350,000, up from $7,538,000 in Q2 2023, reflecting a 50.5% increase[45] - Community Net Operating Income for Q2 2024 was $17.7 million, an increase of $4.2 million compared to Q2 2023[3] - General and administrative expenses for Q2 2024 were $9,178,000, compared to $6,574,000 in Q2 2023, reflecting a 39.5% increase[40] - Interest expense for Q2 2024 was $8,964,000, slightly up from $8,558,000 in Q2 2023, showing a 4.8% increase[40] Loss and Cash Flow - Net loss for Q2 2024 was $9.8 million, a decrease of $2.4 million compared to a net loss of $12.2 million in Q2 2023[3] - The company reported a net income loss of $9,816,000 for Q2 2024, an improvement from a loss of $12,212,000 in Q2 2023[40] - Cash provided by financing activities was $50.4 million for the six months ended June 30, 2024, a significant increase from cash used in financing activities of $6.3 million in the prior year[22] - Net cash used in operating activities was $(1,624) thousand for the six months ended June 30, 2024, compared to $5,537 thousand for the same period in 2023, indicating a decline in cash flow from operations[30] Investments and Acquisitions - The Company acquired nine communities in Q2 2024, enhancing market density and entering new markets[2] - A joint venture was established on July 1, 2024, acquiring four senior living communities for $12.5 million in cash and $21.8 million in financing[5] - The Company expanded its loan facility with Ally Bank by $24.8 million to partially fund the 2024 Loan Purchase[21] - The Company plans to use proceeds from the private placement for community improvements and working capital[18] Asset and Liability Management - Total assets increased to $652,247 thousand as of June 30, 2024, up from $621,460 thousand on December 31, 2023, representing a growth of 4.3%[29] - Total current liabilities decreased to $53,558 thousand as of June 30, 2024, down from $100,861 thousand at the end of 2023, a reduction of 47.0%[29] - The total shareholders' deficit improved to $(34,110) thousand as of June 30, 2024, from $(115,091) thousand at the end of 2023, indicating a positive shift in equity position[29] Stock and Financing Activities - The Company raised $17.4 million in net proceeds through an At-The-Market issuance sales agreement in Q2 2024[4] - The Company completed a private placement of 5,026,318 shares at $9.50 per share, raising gross cash proceeds of $47.7 million as of June 30, 2024[18] - Proceeds from the issuance of common stock amounted to $65,079 thousand during the six months ended June 30, 2024, indicating strong capital raising efforts[30] Other Financial Insights - The Company experienced a decrease in cash used in operating activities, reporting $(1.6) million for the six months ended June 30, 2024, compared to $5.5 million in the prior year[22] - Net cash used in investing activities increased to $(42,715) thousand for the six months ended June 30, 2024, compared to $(9,355) thousand for the same period in 2023, highlighting a significant rise in investment expenditures[30] - The average monthly revenue per available unit (RevPAR) and average monthly revenue per occupied unit (RevPOR) metrics were defined but specific values were not provided in the documents[25] - The company reported a Same-Store Net Operating Income margin that reflects the performance of its 61 owned continuing communities, providing insights into operational efficiency[36]

Financial Data and Key Metrics - Occupancy remained stable at just shy of 86%, in line with the prior quarter [4] - Revenue increased 2.4% sequentially and 7.3% year-over-year, reflecting operational strength [4] - Adjusted NOI increased by $3.5 million year-over-year, with a 360 basis point improvement in adjusted NOI margin [8] - Resident rates increased 10.1% year-over-year and 2.7% sequentially, with an annual average rate increase of 6.3% on an all-in basis [9] - Adjusted EBITDA increased more than 21% year-over-year and 2% sequentially [29] Business Line Performance - Magnolia Trails memory care units saw a year-over-year occupancy increase of 750 basis points, reaching nearly 88% in Q1 2024 [29] - The company implemented a new level of care initiative in several Magnolia Trails memory care locations, focusing on expense management and labor cost control [5] - The company has successfully addressed all resident leases with level of care assessments, ensuring appropriate revenue capture [9] Market Performance - The company grew occupancy by 200 basis points year-over-year to 85.9% [8] - RevPAR increased by 8.4% year-over-year, and resident revenue increased by 7.2% [8] - The company experienced positive momentum in occupancy and margin in key recovery communities, with sequential quarterly occupancy improvement of 240 basis points and 130 basis points of margin expansion [17] Strategic Direction and Industry Competition - The company is focusing on acquiring underperforming but quality assets at significant discounts to replacement costs, with investments set to close in Q2 [5] - The company plans to continue targeting similar opportunities through joint venture relationships with leading real estate investors [6] - The company is leveraging its differentiated approach to operating, owning, and investing in senior living communities to capitalize on near-term market dislocation [19] - The company is focusing on regional densification to benefit from scale and implement labor management tools without significant changes to G&A [30] Management Commentary on Operating Environment and Future Outlook - The company remains optimistic about its 2024 operating targets and has clear line of sight into further growth opportunities [16] - The company expects to continue driving occupancy, rate, and margin improvement throughout the year [17] - The company is well-positioned to match revenues with the underlying cost of care, with new operating protocols and enhanced programming in place [9] - The company anticipates stabilizing utility costs later in 2024 when current rate contracts are up for renewal [10] Other Important Information - The company has raised nearly $60 million in equity capital, with approximately $35 million earmarked for transactions expected to close in the next 90 days [16] - The company has introduced an operational excellence team to focus on portfolio-wide initiatives and best practices for new communities [18] - The company is in compliance with all financial covenants required under its mortgages [11] - The company has added Lilly Donohue to its Board of Directors, bringing significant experience in senior living and real estate-based businesses [31] Q&A Session - No specific questions or answers were provided in the transcript [25]

A Leading Operator, Owner and Investor in Senior Living First Quarter 2024 A Leading Operator, Owner & Investor SNDA NYSE Listed Forward-Looking Statements The Company's ability to generate sufficient cash flows from operations, additional proceeds from equity issuances and debt financings, and proceeds from the sale of assets to satisfy its short- and long-term debt obligations and to fund the Company's acquisitions and capital improvement projects to expand, redevelop, and/or reposition its senior living ...

Revenue and Occupancy - For the three months ended March 31, 2024, the company generated resident revenue of approximately $60.7 million, an increase of 7.3% compared to $56.6 million for the same period in 2023[118]. - The weighted average occupancy for the company's owned communities increased to 85.9% in Q1 2024 from 83.9% in Q1 2023, indicating continued recovery in occupancy rates[119]. - The average monthly rental rate for the three months ended March 31, 2024, was 5.9% higher compared to the same period in 2023[119]. - Resident revenue for Q1 2024 was $60.7 million, an increase of $4.1 million or 7.3% compared to Q1 2023, primarily due to increased occupancy and average rent rates[139]. Financial Transactions and Capital Raising - The company completed the Protective Life Loan Purchase for a total outstanding principal balance of $74.4 million, funded by expanding its loan facility with Ally Bank by $24.8 million[121]. - The company raised approximately $47.7 million through a private placement of 5,026,318 shares of common stock at a price of $9.50 per share, with proceeds intended for working capital and community improvements[125]. - The company plans to use proceeds from the private placement for potential acquisitions of new communities and broader community programming[125]. - The company raised $10.3 million in April 2024 through an ATM Sales Agreement, significantly improving its liquidity position[148]. Debt Management - The company entered into Loan Modification Agreements with Fannie Mae, extending maturities on 18 community mortgages to December 2026, with no scheduled principal payments required until then[127]. - The company reported a gain on debt extinguishment totaling $38.1 million as a result of the Protective Life Loan Purchase[122]. - Gain on extinguishment of debt for Q1 2024 was $38.1 million, compared to $36.3 million in Q1 2023, related to derecognition of notes payable[143]. - Interest expense for Q1 2024 decreased to $8.6 million from $8.9 million in Q1 2023, primarily due to reduced debt balances[142]. Operating Expenses - Operating expenses for Q1 2024 were $46.3 million, up $2.5 million or 5.7% from Q1 2023, with labor costs contributing to the increase[140]. - General and administrative expenses for Q1 2024 were $7.2 million, a slight increase of $0.1 million from Q1 2023, driven by higher labor and employee-related expenses[141]. Cash Flow and Liquidity - Net cash used in operating activities for Q1 2024 was $4.1 million, a decrease of $7.4 million compared to net cash provided in Q1 2023[152]. - Net cash provided by financing activities for Q1 2024 was $29.1 million, primarily from common stock issuance and notes payable proceeds[154]. - As of March 31, 2024, the company had $24.2 million in unrestricted cash, with additional liquidity expected from ongoing operations and financing activities[145]. - The company expanded its SOFR-based interest rate cap for $24.8 million at a cost of $0.6 million to manage interest rate exposure[146]. Management and Operations - The company managed ten communities on behalf of Ventas, generating management fees based on gross revenues[120].

Financial Performance - In Q1 2024, Sonida Senior Living reported resident revenue of $60.7 million, an increase of $4.1 million or 7.3% compared to Q1 2023[7]. - Net income for Q1 2024 was $27.0 million, which includes a $38.1 million gain on debt extinguishment[4]. - Adjusted EBITDA for Q1 2024 was $9.5 million, representing a year-over-year increase of 21.5%[4]. - Community Net Operating Income (NOI) for Q1 2024 was $14.9 million, up from $13.4 million in Q1 2023, reflecting a margin of 24.6%[4]. - For the three months ended March 31, 2024, total revenues increased to $67,438,000, up 8.8% from $62,073,000 in the same period of 2023[31]. - Resident revenue for the same period was $60,737,000, representing a 7.5% increase compared to $56,606,000 in 2023[31]. - Net income attributable to common stockholders for Q1 2024 was $22,835,000, an increase of 15.5% from $19,765,000 in Q1 2023[31]. - Adjusted EBITDA for Q1 2024 was $9,473,000, compared to $7,794,000 in Q1 2023, marking a growth of 21.6%[46]. - The company reported a net income of $27,019,000 in Q1 2024, compared to $24,145,000 in Q1 2023, reflecting a growth of 11.9%[41]. Occupancy and Community Metrics - The weighted average occupancy for the consolidated portfolio increased by 200 basis points to 85.9% year-over-year[4]. - The weighted average occupancy rate improved to 85.9% in Q1 2024, up from 83.9% in Q1 2023, showing a 2.0% increase[49]. - The number of communities decreased to 61 in Q1 2024 from 62 in Q1 2023, while unit capacity slightly declined to 5,692 from 5,747[49]. - Community Net Operating Income for Q1 2024 was $14,915,000, an increase from $13,402,000 in Q1 2023, representing a growth of 11.2%[41]. - The Community Net Operating Income Margin improved to 24.6% in Q1 2024, up from 23.7% in Q1 2023, indicating a 0.9% increase[41]. - Adjusted Community Net Operating Income for Q1 2024 was $14,915,000, compared to $11,365,000 in Q1 2023, indicating a significant increase of 31.8%[41]. Cash and Capital Management - The company raised gross cash proceeds of $47.8 million from a private placement of 5,026,318 shares at $9.50 per share[4]. - An additional $10.3 million of net proceeds were raised in April 2024 through an At-the-Market Issuance Sales Agreement[4]. - Cash and cash equivalents as of March 31, 2024, were $24,211,000, significantly up from $4,082,000 at the end of 2023[33]. - Total assets increased to $636,277,000 as of March 31, 2024, compared to $621,460,000 at the end of 2023[33]. - Total liabilities decreased to $627,804,000 as of March 31, 2024, down from $688,009,000 at the end of 2023[33]. - The company’s total current liabilities decreased to $56,497,000 as of March 31, 2024, from $100,861,000 at the end of 2023[33]. Operating Expenses and Debt Management - Operating expenses increased by $2.5 million or 5.7% to $46.3 million in Q1 2024, primarily due to increased labor costs[8]. - The company completed the Protective Life Loan Purchase for $40.2 million, reducing notes payable by $49.6 million[4]. - Total variable rate mortgage debt increased to $162,114,000 in Q1 2024 from $137,453,000 in Q4 2023[49]. - Total fixed rate debt decreased to $418,275,000 in Q1 2024 from $500,721,000 in Q4 2023[49]. Strategic Focus - Sonida Senior Living plans to use new capital for working capital, community improvements, and potential acquisitions[16]. - The company is focused on expanding its senior living communities and improving operational performance despite market challenges[28].

Company Operations - As of December 31, 2023, the Company operated 71 senior housing communities across 18 states, with a total capacity of approximately 8,000 residents[200]. - Weighted average occupancy for the communities owned by the Company was 84.6% for the year ended December 31, 2023, compared to 83.0% in 2022, indicating a recovery in occupancy rates[220]. - The average monthly rental rate for owned communities increased by 9.6% for the year ended December 31, 2023, compared to the previous year[221]. Financial Performance - The Company generated resident revenue of approximately $232.0 million for the year ended December 31, 2023, an increase of approximately $23.3 million or 11.2% compared to $208.7 million in the prior year[219]. - Total revenues for 2023 were $255.3 million, compared to $238.4 million in 2022[243]. - The company reported a net loss of $21.1 million for 2023, significantly improved from a net loss of $54.4 million in 2022[255]. Expenses and Costs - Operating expenses increased to $177.3 million in 2023, up $5.7 million from 2022, with labor costs rising approximately $7.2 million[246]. - General and administrative expenses rose to $32.2 million, an increase of $1.9 million or 6.3% year-over-year[247]. - Labor costs accounted for approximately two-thirds of total operating expenses[269]. - Labor expenses in the community portfolio increased by approximately $7.2 million, or 6.9%, in 2023 compared to 2022[269]. - The increase in labor costs was driven by merit and market wage rate adjustments, higher occupancy, and increased use of premium labor[269]. Debt and Financing - The Company incurred restructuring costs of $0.7 million in the year ended December 31, 2023, related to the Fannie Mae loan modification[205]. - The Company has extended maturities on 18 community mortgages to December 2026, with no scheduled principal payments required until then[206]. - The Company is required to escrow 50% of Net Cash Flow less Debt Service for the first twelve months following the Loan Modification Agreements[206]. - The Company drew down $10.0 million from the Equity Commitment as of December 31, 2023, with $3.5 million remaining[204]. - The Company entered into a private placement transaction on February 1, 2024, selling 5,026,318 shares of common stock at a price of $9.50 per share, raising approximately $47.7 million[232][233]. - The Company plans to use proceeds from the private placement for capital expenditures, working capital, potential acquisitions, and other corporate purposes[234]. Impairments and Losses - The Company recognized a non-cash impairment charge of $6.0 million to its property and equipment during the year ended December 31, 2023[239]. - The company recorded a non-cash impairment charge of $6.0 million in 2023, compared to $1.6 million in 2022[249]. - The Company sold the Shaker Heights property for $1.0 million in August 2023, resulting in a loss of $0.2 million[224]. Grants and Relief Funds - The Company received approximately $9.1 million in grants from the Provider Relief Fund in the year ended December 31, 2022, to address COVID-19 related expenses[214]. - The Company incurred approximately $0.1 million and $0.4 million in direct costs related to COVID-19 for the years ended December 31, 2023 and 2022, respectively[213]. Market Conditions and Future Outlook - The company expects to continue facing inflationary pressures in 2024, impacting future revenues and operating results[268]. - The unemployment rate in the United States remained at or below 4.0% throughout 2023 and 2022, contributing to labor pressures[269]. - The company anticipates continued labor cost pressures in 2024 due to ongoing competitive labor conditions and expected increases in hours worked[269]. - The company may need to enhance pay and benefits packages to attract and retain employees amid competition and inflationary pressures[269].

Financial Data and Key Metrics Changes - The company achieved over 10% revenue growth on a same-store basis and doubled adjusted EBITDA year-over-year from $17 million in 2022 to $34 million in 2023 [51] - Cash flow from operations exceeded $10 million in 2023, a $13 million improvement from 2022 [29] - The annualized NOI and margin for Q4 2023 were $66.8 million and 27.4% respectively, with an effective NOI margin of 25.7% when excluding non-recurring credits [65] - The company expanded its NOI margin by 520 basis points year-over-year, or 460 basis points on an adjusted basis [77] Business Line Data and Key Metrics Changes - The company focused on driving occupancy improvement in underperforming assets that account for 40% of all vacant units [6] - The company successfully raised base resident rates by 8.3% year-over-year [78] - Contract labor decreased nearly $6 million year-over-year, with a focus on optimizing labor hours amidst higher occupancy levels [20] Market Data and Key Metrics Changes - The company continues to focus on the Midwest, Southeast, and South as primary markets for expansion [8] - More than half of the portfolio averaged occupancy of 90% or greater during Q4 2023 [54] - The company anticipates a 12 to 18 month payback on capital investments for approximately 100 additional units in 2024 [55] Company Strategy and Development Direction - The company aims to build exceptional teams and deliver value to residents, translating efforts into margin improvement through operational excellence [3] - The strategic focus includes further margin expansion through rate and occupancy growth, with nearly 80% of private pay residents experiencing rate increases [31] - The company is positioned to capitalize on near-term dislocation in the market, with approximately $18 billion in senior living debt maturing in 2024 and 2025 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the industry and the Sonida platform, emphasizing the importance of leadership retention and effective rollout of new resident programming [11] - The company is encouraged by consistent improvement across all significant KPIs over the last 12 months, expecting continued revenue and margin growth [45] - Management highlighted the importance of a strong local leadership team for the financial success of communities [9] Other Important Information - The company completed significant investments in its real estate portfolio and expanded the number of units to meet increasing demand for memory care services [5] - The company has clear visibility on transactions including more than 700 units expected to close in Q2 2024 [58] - The company has de-levered by $55 million since January 2023, including a $5 million paydown in connection with the Fannie Mae modification [62] Q&A Session Summary Question: Current occupancy as of today compared to end of Q4 - Management did not disclose the current occupancy figure [47][83] Question: Any forecast for occupancy by the end of the year - Management did not provide specific guidance at this time but indicated a goal of continued progress similar to 2023 [21][84] Question: How did real estate taxes decrease by a million dollars - Management explained that aggressive monitoring and consolidation of vendor relationships led to favorable pricing and one-time credits that will result in lower taxes moving forward [74][87]

Revenue Performance - Resident revenue for Q4 2023 was $59.3 million, an increase of $5.9 million or 11.2% compared to Q4 2022[5] - For the full year 2023, resident revenue was $232.0 million, an increase of $23.3 million or 11.2% compared to 2022[10] - Total revenues for 2023 were $255,322 thousand, up 7.0% from $238,433 thousand in 2022, driven primarily by an increase in resident revenue to $232,032 thousand from $208,703 thousand[32] - Resident revenue increased to $232,032,000 in 2023, compared to $208,700,000 in 2022, marking an increase of about 11.2%[42] Financial Performance - Adjusted EBITDA for Q4 2023 was $9.3 million, representing a year-over-year increase of 103.5%[9] - Adjusted EBITDA for the year was $33,904,000, significantly higher than $16,981,000 in 2022, representing an increase of approximately 99%[47] - The company reported a net loss of $(21,107) thousand for 2023, an improvement from a net loss of $(54,401) thousand in 2022[32] - Net loss for Q4 2023 was $14.6 million, an improvement from a net loss of $16.6 million in Q4 2022[8] Operating Efficiency - Community Net Operating Income margin improved to 27.4% in Q4 2023 from 19.3% in Q4 2022[3] - The adjusted community net operating income margin improved to 24.0% in 2023 from 19.0% in 2022, indicating enhanced operational efficiency[42] - Consolidated community net operating income for the year was $57,899,000, up from $41,000,000 in 2022, reflecting a year-over-year increase of approximately 41%[42] - Consolidated community net operating income reached $16,260, a significant increase of $5,936 from $10,324 in Q4 2022[49] Cash Flow and Liquidity - In 2023, the company generated $10,683 thousand in net cash from operating activities, a significant improvement from a cash outflow of $(2,578) thousand in 2022[23] - Net cash provided by operating activities was $10,683,000 in 2023, compared to a cash used of $2,578,000 in 2022, indicating a positive cash flow shift[36] - Cash and cash equivalents decreased to $4,082 thousand as of December 31, 2023, down from $16,913 thousand in 2022[34] - The company experienced a decrease in cash and cash equivalents, ending the year with $17,750,000 compared to $30,742,000 at the beginning of the year, a decline of about 42%[36] Debt and Capital Management - The company recorded a gain on extinguishment of debt of $36.3 million for the year ended December 31, 2023, compared to a loss of $0.6 million in 2022[13] - The company is exploring financial and capital raising transactions, including debt refinancings and asset sales, to meet its capital requirements[24] - Future liquidity will depend on operating performance and economic conditions, with principal sources expected to be cash flows from operations and proceeds from equity financings[23] - Total fixed rate debt decreased to $492,998 from $535,303 year-over-year[49] Capital Expenditures and Investments - Capital expenditures for the year were $17,938,000, down from $24,562,000 in 2022, indicating a reduction in investment spending[36] - The company issued $10,000,000 in common stock during the year, contributing to its financing activities[36] Community and Occupancy Metrics - Weighted average occupancy increased by 200 basis points to 85.9% in Q4 2023 compared to Q4 2022[3] - The number of communities decreased to 61 from 62 year-over-year, with a unit capacity of 5,700, down from 5,776[49] - RevPAR rose to $3,470, an increase of $389 compared to $3,081 in Q4 2022[49] - Consolidated community net operating income, net of general and administrative expenses, was $6,314, an increase of $2,713 from $3,601 in Q4 2022[49] Asset and Liability Management - The company’s total assets decreased to $621,460 thousand in 2023 from $661,268 thousand in 2022, indicating a decline of approximately 6.0%[34] - The company’s total liabilities were $688,009 thousand as of December 31, 2023, down from $719,432 thousand in 2022, a reduction of about 4.3%[34] - The company has $3.5 million remaining in an equity commitment as of December 31, 2023, part of a $13.5 million equity commitment with Conversant[23] Impairments and Write-downs - The company reported a long-lived asset impairment of $5,965,000 in 2023, compared to $1,588,000 in 2022, reflecting increased asset write-downs[36]

Financial Data and Key Metrics Changes - The company reported a year-over-year margin improvement of nearly 600 basis points, with September margin exceeding 25% [7] - NOI for Q3 was $14.7 million, reflecting a margin increase of 100 basis points to 24.9%, with a year-over-year NOI increase of $4.7 million [24] - RevPOR and RevPAR increased by 13% and 18% on an annualized basis, respectively [23] Business Line Data and Key Metrics Changes - Portfolio occupancy improved by 100 basis points sequentially and 150 basis points year-over-year to 84.9% [7] - Memory care occupancy improved to approximately 88% at the end of October, compared to an average of 83% in 2022 [14] - The company experienced a 9% increase in rent renewals year-over-year [25] Market Data and Key Metrics Changes - The percentage of Medicaid revenues as part of total revenues increased from 9% to 11% due to recent Medicaid rate increases [25] - Labor costs as a percentage of revenue decreased from 48% in 2022 to 46.4% in Q3 [27] - Non-labor expenses remained flat over the last 15 months despite inflation [28] Company Strategy and Development Direction - The company aims to maximize portfolio performance with a target of 30% NOI margins [9] - There is a commitment to strengthen the balance sheet by reducing leverage metrics and enhancing cash flow [9] - The company plans to grow through accretive acquisitions and strategic third-party management opportunities [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued revenue and margin growth, anticipating meaningful earnings growth in 2024 [32] - The company is positioned to take advantage of organic and inorganic opportunities in the marketplace [35] - Stability in labor and increases in average occupancy nationally are seen as positive indicators for industry recovery [17] Other Important Information - The company delivered cash flow from operations exceeding $10 million for the first nine months of the year, a $7.8 million improvement from the same period in 2022 [13] - The company has executed modifications on Fannie Mae loan agreements, resulting in nearly $40 million of cash savings [39] - The company is in compliance with all financial covenants required under its mortgages, except for three communities with Protective Life [37] Q&A Session Summary - The Q&A session was not detailed in the provided content, and thus no specific questions and answers can be summarized.