Core Points - Brookdale Senior Living made a $30,000 donation to Folds of Honor to support educational scholarships for families of fallen or disabled service members and first responders [1][3] - The donation reflects Brookdale's commitment to honoring veterans, including its residents and employees who have served in the U.S. Armed Forces [1][3] - Folds of Honor has awarded nearly 73,000 scholarships totaling over $340 million since its founding in 2007, with a mission to "Honor Their Sacrifice. Educate Their Legacy." [3][8] Company Overview - Brookdale Senior Living operates 623 communities across 41 states, serving approximately 57,000 residents as of September 30, 2025 [6] - The company focuses on enriching the lives of seniors through compassionate care, clinical expertise, and exceptional service [6] - Brookdale's stock trades on the New York Stock Exchange under the ticker symbol BKD [6] Folds of Honor Overview - Folds of Honor is a 501(c)(3) nonprofit organization providing educational scholarships to the spouses and children of U.S. military service members and first responders [8] - The organization supports various educational needs, including K-12 tuition, college, technical or trade school, and post-graduate work [8] - 91% of Folds of Honor's expenses fund its mission, and it has a strong rating as a charity [8]

Financial Data and Key Metrics Changes - The company reported a total portfolio NOI growth of 21% year-over-year, with adjusted EBITDA improving by more than 30% [8][19] - Same-store occupancy increased by 90 basis points sequentially to 87.7%, reaching an average of 88% in October, marking a portfolio high [8][10] - The company achieved a year-over-year REF core increase of 4.7% [16] Business Line Data and Key Metrics Changes - The 19 communities acquired in 2024 showed a sequential improvement of 370 basis points from Q2 to Q3, with average occupancy rising from 76.3% to 83.7% over the past 12 months [9][12] - The acquisition portfolio NOI increased by $900,000 or 22% on a sequential quarter basis [17] Market Data and Key Metrics Changes - The company noted that move-outs due to deaths have returned to normal operating levels, contributing to the occupancy increase [20] - The overall labor costs, excluding benefits, increased by 70 basis points from the previous quarter due to rapid occupancy spikes [22] Company Strategy and Development Direction - The company signed a merger agreement to acquire C&L Healthcare Properties for $1.8 billion, which is expected to enhance growth and shareholder value [5][6] - The company aims to recycle lower-growth assets into higher-return acquisitions, having acquired 23 assets over the last 18 months [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving margin expansion as occupancy levels approach 90% and emphasized the importance of technology in labor management [11][40] - The company is focused on retaining and developing talent to support growth, with favorable trends in employee turnover [14] Other Important Information - The company is in compliance with all financial covenants required under its mortgages and credit facility [26] - The total transaction costs related to the merger are estimated at $75 million, with $6 million incurred in the current quarter [35] Q&A Session Summary Question: Same-store occupancy trend below industry average - Management acknowledged the occupancy improvement to 89% and noted that the increase in move-ins from internal sources has been beneficial [32][34] Question: Recurring costs related to the merger - Management confirmed that transaction costs are expected to continue as part of the merger preparation [35] Question: Long-term RevPAR versus expense trends - Management indicated that higher occupancy levels will help push rates and expand margins, with a target of achieving over 30% margins [39][41] Question: Agency labor trends in the acquired portfolio - Management reported minimal contract labor and noted improvements in permanent staffing, contributing to NOI boosts [42]

Financial Data and Key Metrics Changes - Brookdale achieved a consolidated occupancy of 81.8% for Q3 2025, marking an improvement of 290 basis points year-over-year and 170 basis points sequentially [29][30] - Adjusted EBITDA for Q3 increased by 20% year-over-year to $111.1 million, with year-to-date adjusted EBITDA up 22.5% [35][36] - The company generated positive adjusted free cash flow of $21.8 million in Q3, a 57% increase compared to the prior year [16][35] Business Line Data and Key Metrics Changes - The occupancy growth was driven by targeted initiatives, including the SWAT team approach, which reduced the number of communities below 70% occupancy from 143 in Q1 to 89 in Q3 [13][14] - Revenue per available room (Rev Par) increased by 5.9% year-over-year, supported by a 2.2% increase in revenue per occupied room [31][32] Market Data and Key Metrics Changes - The senior living industry is experiencing strong demand due to the aging baby boomer population, with the first baby boomers turning 80 in 2026 [11][12] - New construction starts in the senior living sector are at record lows, contributing to a future scarcity of available units [12][52] Company Strategy and Development Direction - The company is focused on five strategic priorities: improving operating performance, optimizing the real estate portfolio, reinvesting capital, reducing leverage, and elevating quality for residents and associates [17][19] - A new regional operating structure has been implemented to enhance operational excellence and accountability across the organization [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture opportunities in the senior living market, emphasizing the importance of operational focus and strategic pricing [44][49] - The company anticipates mid-teen percentage growth in adjusted EBITDA over the next several years, driven by improved occupancy and effective capital deployment [24][74] Other Important Information - Brookdale plans to hold an investor day in early 2026 to provide more details on strategic priorities and expected results [23] - The company is transitioning 55 communities leased from Ventas and expects to complete these transitions by year-end 2025 [27][39] Q&A Session Summary Question: What areas of opportunity have been identified within the Brookdale portfolio? - The CEO noted that a clear picture of opportunities is evolving, with a focus on driving the business rather than reacting to it [43][44] Question: How is the company balancing pricing focus versus occupancy? - The CEO emphasized a more offensive posture, focusing on operational excellence and strategic pricing to drive occupancy and NOI growth [44][49] Question: What is the rationale behind the new FFO disclosure? - The CFO explained that the FFO metric provides additional insight into the company's performance and value compared to other real estate companies [57][59] Question: How will the organizational changes impact G&A costs? - The CEO indicated that the changes are expected to result in a net zero impact on G&A costs while enhancing operational focus [61][62] Question: What are the plans for addressing upcoming debt maturities? - The CFO stated that the company plans to extend and refinance bank debt due in 2026, focusing on managing upcoming maturities effectively [70][71]

Core Insights - The Pennant Group reported Q3 CY2025 revenue of $229 million, a 26.8% year-on-year increase, exceeding analyst estimates of $222.3 million by 3% [1][6] - The company raised its full-year revenue guidance to $930 million at the midpoint, which is 3.5% above analysts' expectations [1][6] - Non-GAAP profit for the quarter was $0.30 per share, surpassing the consensus estimate of $0.29 by 4.6% [1][6] Financial Performance - Adjusted EBITDA was reported at $17.35 million, slightly below analyst estimates of $18.17 million, resulting in a 7.6% margin [6] - Operating margin decreased to 4.5% from 6% in the same quarter last year [6] - Sales volumes increased by 36.2% year-on-year, compared to a 38.5% increase in the same quarter last year [6] Management Commentary - Management highlighted strong operational execution in home health, hospice, and senior living as key growth drivers, achieving "new highs in revenue, census, occupancy and earnings" [3][4] - The company is focusing on scaling its Southeast operations and improving margins through occupancy gains, with COO John Gochnour noting significant latent upside in the senior living segment [4][5] - Management acknowledged margin pressures due to higher costs and transition-related expenses but emphasized robust organic growth and effective acquisition integration [5]

Investor Presentation November 6, 2025 Leading senior living operator in the United States Forward-Looking Statements – Safe Harbor Certain statements in this Investor Presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to various risks and uncertainties and include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations. Forwar ...

Core Viewpoint - Wall Street has issued negative forecasts for certain stocks, which is uncommon as financial institutions typically avoid making negative comments that could impact their other revenue streams [1] Group 1: Stocks to Sell - **Brookdale (BKD)** - Consensus price target is $8.25, indicating a -9.4% implied return from the current trading price of $9.11 per share [3][5] - Operates over 650 senior living communities serving approximately 59,000 residents across 41 states [3] - **S&T Bancorp (STBA)** - Consensus price target is $40.40, suggesting a 6.4% implied return from the current price of $37.98 per share [6][8] - Trades at 1x forward price-to-book ratio [8] Group 2: Stock to Buy - **Nelnet (NNI)** - Revenue has declined by 2.6% annually over the last five years, with earnings per share decreasing more than revenue due to shareholder dilution [9] - Annual net interest income growth of 4.3% over the last five years is below industry standards [10] - Consensus price target is $130, indicating a 0.2% implied return [11]

Core Insights - Brookdale Senior Living reported Q3 CY2025 revenue of $813.2 million, which was a 3.7% year-on-year increase but fell short of analyst expectations of $827.4 million [1][7] - The company experienced a GAAP loss of $0.48 per share, significantly missing the consensus estimate of a loss of $0.17 [1][7] - Adjusted EBITDA was $111.1 million, exceeding analyst estimates of $106.1 million, with a margin of 13.7% [7] Company Overview - Brookdale operates over 650 senior living communities across 41 states, serving approximately 59,000 residents [4] - The company offers various services including independent living, assisted living, memory care, and continuing care retirement communities [4] Revenue Growth - Over the last five years, Brookdale's sales declined at an annual rate of 2.6%, indicating poor business quality [5] - However, the company has shown an annualized revenue growth of 4.3% over the last two years, which is an improvement compared to the five-year trend [6] Financial Performance - The operating margin for Q3 was -6.6%, a decline from 1.4% in the same quarter last year [7] - Free cash flow margin improved to 14.1%, up from 1.5% in the same quarter last year [7] - Market capitalization stands at $2.20 billion [7] Future Outlook - Analysts project a revenue decline of 3.4% over the next 12 months, indicating potential demand headwinds for Brookdale's products and services [8]

Financial Data and Key Metrics Changes - The company reported revenues of $229 million for Q3 2025, an increase of $48.4 million, or 26.8% year-over-year [5] - Adjusted EBITDA was $17.3 million, up $2.2 million, or 14.5% compared to the prior year quarter [5] - Adjusted EPS increased to $0.30, reflecting a $0.04 increase, or 15.4% year-over-year [5] - Full-year revenue guidance was raised to between $911.4 million and $948.6 million, with adjusted EBITDA expected between $70.9 million and $73.8 million [10][25] Business Line Data and Key Metrics Changes - Home Health and Hospice segment revenue reached $173.6 million, a 27.9% increase, with adjusted EBITDA of $26.8 million, up 22.7% [12] - Senior Living segment revenue was $55.5 million, up 23.2% year-over-year, with adjusted EBITDA increasing 26.2% [15] - Same-store occupancy in senior living reached 81.8%, with all-store occupancy at 80.9% [15] Market Data and Key Metrics Changes - The average CMS reported star rating for home health was 4.1, compared to the industry average of three stars [12] - Potentially preventable hospitalizations decreased to 8.4%, below the national average of 9.9% [12] - Hospice quality composite score improved to 97%, exceeding the national average of 92% [12] Company Strategy and Development Direction - The company is focused on integrating the recently acquired UnitedHealth Amedisys operations and enhancing local leadership [5][33] - There is a strong emphasis on empowering local clinical leaders to drive operational success and improve clinical outcomes [9][12] - The company plans to continue pursuing acquisition opportunities in senior living and home health, maintaining a disciplined approach [23][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term value of home health services despite current regulatory uncertainties [19] - The company anticipates some lumpiness in results due to integration efforts but expects significant long-term potential from recent acquisitions [6][10] - Management highlighted the importance of local leadership and community engagement in driving operational success [9][48] Other Important Information - The company closed on a $100 million term loan to enhance balance sheet capacity [24] - The acquisition of UnitedHealth Amedisys included 54 locations with trailing 12-month revenues of $189.3 million [21] - The company is actively advocating against proposed regulatory changes that could negatively impact the industry [9][18] Q&A Session Summary Question: What are the top priorities for integration after the Amedisys transaction? - The focus is on identifying and elevating leaders, ensuring exceptional support for agencies, and developing a joint venture with the University of Tennessee [33][34] Question: How should we think about margins in senior living going forward? - As occupancy increases, there is an expectation for improved margins, with a focus on operational efficiency and revenue quality [38] Question: What dynamics are affecting margin guidance? - NCI growth and elevated G&A expenses are impacting EBITDA margins, with adjustments made for these factors [40][41] Question: What is driving the increase in hospice length of stay? - The increase reflects a return to pre-pandemic levels and improved identification of appropriate patients for hospice services [42][43] Question: How is the internal reception of the Amedisys assets? - Employees have shown excitement and commitment, with minimal turnover and strong performance during the transition [46][49] Question: What is the competitive landscape for senior living acquisitions? - There is increased activity in the senior living space, with a mix of opportunities within the company's target range [60][62]

Core Insights - The Pennant Group's shares fell 7.8% following mixed third-quarter results, with revenue growth overshadowed by weaknesses in profitability metrics [1] - Revenue increased by 26.8% year-over-year to $229 million, and adjusted earnings per share were $0.30, both exceeding analyst expectations [1] - Adjusted EBITDA missed analyst expectations, and operating margin decreased to 4.5% from 6% in the same quarter last year [1] - Despite raising the full-year revenue outlook, the decline in key profitability metrics negatively impacted investor sentiment [1] Financial Performance - The Pennant Group's revenue grew to $229 million, a 26.8% increase from the previous year [1] - Adjusted earnings per share were reported at $0.30, surpassing analyst estimates [1] - Adjusted EBITDA did not meet analyst expectations, indicating potential concerns about profitability [1] - Operating margin fell to 4.5%, down from 6% in the same quarter of the prior year [1] Market Reaction - The stock is considered to have low volatility, with only six moves greater than 5% in the past year, indicating that the market views the recent news as significant [3] - The stock has decreased by 11.6% since the beginning of the year and is currently trading at $23.38, which is 30.9% below its 52-week high of $33.83 [5] - A previous notable stock movement occurred when Jefferies initiated coverage with a 'Buy' rating and a $30 price target, reflecting optimism about the home health sector [4]

Group 1 - The Pennant Group, Inc. will participate in the 2025 Stephens Annual Investment Conference on November 19, 2025 [1] - Key executives including the CFO, COO, and President of the Senior Living segment will engage in a fireside chat during the conference [2] - A live webcast of the event will be available for interested parties [2] Group 2 - The Pennant Group operates 141 home health and hospice agencies and 61 senior living communities across multiple states in the U.S. [3] - Each operating subsidiary within the Pennant Group functions independently with its own management and assets [3] - The company emphasizes that it does not directly operate the individual businesses under its umbrella [3]