Brookdale Incurs Loss in Q4 Due to Higher Costs, Shares Up 6%

Core Viewpoint - Brookdale Senior Living Inc. (BKD) reported a fourth-quarter loss of 37 cents per share, which was wider than the consensus estimate but narrower than the previous year's loss, with total revenues growing 3.5% year over year to $780.9 million, driven by higher resident and management fee revenues [2][5]. Financial Performance - Resident fees increased by 3.9% year over year to $744.4 million, surpassing the consensus estimate of $742.2 million, attributed to improved revenue per occupied unit (RevPOR) and occupancy [3][4]. - Management fees rose 4.1% year over year to $2.6 million, exceeding the consensus mark of $2.5 million [3]. - RevPOR advanced 4.2% year over year, while weighted average occupancy improved by 100 basis points to 79.4% [4]. - Total revenues and other operating income for the full year reached $3.1 billion, reflecting a 3.6% year-over-year growth [8]. Cost and Expenses - Facility operating expenses totaled $554.9 million, up 4.6% year over year, driven by inflationary pressures and higher insurance costs [4]. - General and administrative costs increased significantly by 15.9% year over year to $48.5 million [5]. Loss and EBITDA - The net loss for the fourth quarter was $83.9 million, an improvement from the previous year's loss of $91.2 million, attributed to better resident fees and reduced asset impairment expenses [5]. - Adjusted EBITDA rose 15.5% year over year to $98.5 million for the fourth quarter, and for the full year, it advanced 15.1% to $386.2 million [5][9]. Cash Flow and Debt - Net cash from operations increased by 54.3% year over year to $45.2 million in the fourth quarter, with adjusted free cash outflow improving to $11.5 million from $21.5 million in the prior year [7]. - As of December 31, 2024, cash and cash equivalents were $308.9 million, up 11.1% from the end of 2023, while total assets increased by 13.7% to $6.3 billion [6]. Future Outlook - Management projects RevPAR growth between 4.75% and 5.75% for 2025, with adjusted EBITDA expected to be in the range of $430 million to $445 million [10].