Brookdale Senior Living(BKD)2025-05-07 20:19Company Operations - As of March 31, 2025, the company operates 647 senior living communities across 41 states, serving approximately 58,000 residents[94]. Financial Performance - The company reported a net loss of $65.0 million for the three months ended March 31, 2025, an increase of $35.4 million, or 119.7%, compared to the net loss of $29.6 million in the same period in 2024[103]. - Adjusted EBITDA for the three months ended March 31, 2025, was $124.1 million, reflecting an increase of $26.5 million, or 27.2%, compared to $97.6 million in the same period in 2024[103]. - Resident fees for the three months ended March 31, 2025, increased by $33.2 million, or 4.5%, compared to the same period in 2024, driven by a 2.8% increase in same community RevPOR and a 130 basis point increase in same community weighted average occupancy[103]. - Resident fees increased by 4.5% to $777,454,000 in Q1 2025 from $744,241,000 in Q1 2024[109]. - Facility operating expenses rose by 2.7% to $556,987,000 in Q1 2025 compared to $542,550,000 in Q1 2024[109]. - The increase in net loss was attributed to the loss on extinguishment of financing obligations, increased facility operating expenses, and higher interest expenses, despite the rise in resident fees[106]. Segment Performance - In the Independent Living segment, resident fees grew by 5.5% to $157,117,000 in Q1 2025 from $148,948,000 in Q1 2024[111]. - Assisted Living and Memory Care segment resident fees increased by 4.4% to $533,379,000 in Q1 2025 compared to $510,872,000 in Q1 2024[114]. - CCRC segment resident fees rose by 3.0% to $86,958,000 in Q1 2025 from $84,421,000 in Q1 2024[118]. Expenses and Costs - Facility operating expenses rose by $14.4 million, or 2.7%, primarily due to a 3.2% increase in same community facility operating expenses, influenced by wage rate increases and higher utilities costs[104]. - General and administrative expenses increased by 4.7% to $47,874,000 in Q1 2025 from $45,732,000 in Q1 2024[121]. - Interest expense increased by 12.7% to $65,031,000 in Q1 2025 compared to $57,687,000 in Q1 2024[121]. Cash Flow and Liquidity - The company reported a net cash provided by operating activities of $23.4 million for the three months ended March 31, 2025, compared to a net cash used of $1.1 million in the same period of 2024, representing an increase of $24.5 million[130]. - The company experienced a significant increase in net cash used in investing activities, totaling $(326.8) million, primarily due to $311.0 million paid for the acquisition of formerly leased communities[131]. - The company had total liquidity of $306.0 million as of March 31, 2025, which included $239.7 million of unrestricted cash and cash equivalents, a decrease of $83.3 million from $389.3 million as of December 31, 2024[137]. - As of March 31, 2025, the company’s current liabilities exceeded current assets by $101.7 million, indicating potential liquidity challenges[138]. Debt and Financing - As of March 31, 2025, the company had $4.3 billion of debt outstanding at a weighted average interest rate of 5.21%, with 87.7% of total debt representing non-recourse property-level mortgage financings[135]. - The company had $3.1 billion of long-term debt with a weighted average fixed interest rate of 4.59% as of March 31, 2025[168]. - The company also had $1.2 billion of long-term variable rate debt with a weighted average interest rate of 6.78% as of March 31, 2025[168]. - The company completed the refinancing of all mortgage debt maturities due in 2025, but faces potential challenges in obtaining refinancing for 2026 and later maturities[140]. - The company is in compliance with the financial covenants of its debt agreements and long-term leases as of March 31, 2025[156]. Future Expectations - The company expects organizational restructuring costs related to recent senior leadership changes to be approximately $5,000,000 in Q2 2025[122]. - The company expects its full-year 2025 non-development capital expenditures to be between $175.0 million and $180.0 million, funded from cash on hand, cash equivalents, and cash flows from operations[145]. - The company anticipates an annual interest expense increase of $3.6 million for a 100 basis point increase in SOFR as of March 31, 2025[171]. Tax and Deferred Benefits - The company recorded an aggregate deferred tax benefit of $15.9 million for the three months ended March 31, 2025, partially offset by a $14.7 million increase in the valuation allowance[126].