Brookdale Announces Second Quarter 2024 Results

Core Insights - Brookdale Senior Living Inc. reported a 6.4% increase in consolidated revenue per available unit (RevPAR) for Q2 2024 compared to the same quarter last year, indicating a positive trend in occupancy and revenue growth [2][4] - The company achieved a 160 basis point increase in weighted average occupancy year-over-year, reflecting a recovery trajectory that surpasses pre-pandemic levels [2][4] - Leadership retention and associate turnover showed significant improvement, contributing to the company's operational stability and growth [2][3] Financial Performance - Resident fees for Q2 2024 reached $739.7 million, up from $710.2 million in Q2 2023, marking a 4.2% increase [4][23] - Facility operating expenses increased to $537.5 million in Q2 2024 from $531.1 million in Q2 2023, a rise of 1.2% [4][23] - Adjusted EBITDA for Q2 2024 was $97.8 million, a 20.2% increase from $81.4 million in Q2 2023 [4][23] Occupancy and Revenue Metrics - The same community operating margin increased by 160 basis points year-over-year, driven by a 6.0% revenue growth and a 3.6% increase in facility operating expenses [2][5] - RevPAR for Q2 2024 was $4,835, up from $4,544 in Q2 2023, reflecting a 6.4% increase [4][5] - Weighted average occupancy for Q2 2024 was 78.1%, compared to 76.5% in Q2 2023, indicating a recovery in occupancy rates [4][5] Liquidity and Cash Flow - Total liquidity as of June 30, 2024, was $345.8 million, consisting of $290.0 million in unrestricted cash and cash equivalents, $19.7 million in marketable securities, and $36.1 million available on the secured credit facility [7][10] - Net cash provided by operating activities for Q2 2024 was $55.7 million, a decrease from $63.8 million in Q2 2023 [10][7] - Adjusted Free Cash Flow for Q2 2024 was $(5.5) million, an improvement from $(7.5) million in Q2 2023 [8][10] Future Guidance - For Q3 2024, the company expects RevPAR year-over-year growth between 6.25% and 6.75% [8] - Adjusted EBITDA guidance for Q3 2024 is projected to be between $90 million and $95 million [8][12] Transaction Update - The company amended its master lease with Omega Healthcare Investors, allowing for up to $80 million in capital expenditure funding through December 31, 2037, with specific terms regarding rent adjustments [11]