Brookdale Announces Second Quarter 2016 Results
August 11, 2016
NASHVILLE–Brookdale Senior Living Inc. (NYSE: BKD) ("Brookdale" or the "Company") today reported financial and operating results for the second quarter of 2016. Highlights included:
•Total revenue was $1.3 billion for the second quarter of 2016, an increase of 1.7% from the second quarter of 2015.
•Net loss of $35.5 million for the second quarter of 2016 compared to $84.8 million for the second quarter of 2015.
•Adjusted EBITDA(1) was $218.6 million in the second quarter of 2016, excluding integration, transaction, transaction-related and strategic project costs, an increase of 0.6% from the second quarter of 2015.
•Net cash provided by operating activities was $107.5 million for the second quarter of 2016, an increase of 6.7% from the second quarter of 2015.
•Adjusted CFFO(1) was $123.4 million for the second quarter of 2016, an increase of 12.2% from the second quarter of 2015.
•Continuing its portfolio rationalization initiative, the Company entered into agreements to dispose of certain communities, which is expected to lower leverage and provide added liquidity.
•Reaffirmed full-year 2016 Adjusted CFFO guidance range, expressed on an aggregate basis.
Andy Smith, Brookdale's President and CEO, said, "Our mission, to enrich the lives of those we serve, is perfectly aligned with the tremendous opportunity to meet the demographic surge of seniors in America. We have the size, scale and depth of product offerings that no one else can match, and we have a three year plan to build upon these advantages to grow shareholder value. Our plan is based on continuously improving our execution. So, I'm pleased that we showed executional improvement with strong move-in momentum as the second quarter progressed, continued solid cost control and cost synergy attainment, and the beginnings of a recovery in our ancillary business. We also entered into a number of agreements recently for transactions that will simplify our business as well as have positive economic impact on our leverage and balance sheet."
Financial Results
Total revenue for the second quarter of 2016 was $1.3 billion compared to $1.2 billion for the prior year period. During the fifteen months ended June 30, 2016, the Company disposed of a total of 30 communities, either through sales or lease terminations. These communities generated $4.9 million of revenue in the second quarter of 2016 compared to $18.6 million of revenue in the prior year period.
Resident fees of $1.1 billion for the second quarter of 2016 were a 1.0% increase over the second quarter of 2015. Average monthly revenue per occupied unit for the consolidated senior housing portfolio was $4,476 in the second quarter of 2016, an increase of 3.3% compared with the second quarter of 2015. Weighted average occupancy for all consolidated communities during the second quarter of 2016 was 85.8%, compared to 86.5% during the second quarter of 2015.
Facility operating expenses for the second quarter of 2016 were $693.1 million, a decline of $1.9 million, or 0.3%, from the second quarter of 2015. The decrease was primarily due to the impact of the community dispositions and a decrease in general and professional liability insurance expense of approximately $10.8 million. Brookdale's consolidated operating margin was 34.3% for the second quarter of 2016 versus 33.4% for the second quarter of 2015.
Net loss attributable to Brookdale common stockholders for the second quarter of 2016 was $35.5 million, or $0.19 per share, versus net loss attributable to Brookdale common stockholders of $84.5 million, or $0.46 per share, for the second quarter of 2015. Weighted average shares outstanding were 185.8 million for the quarter ended June 30, 2016. Net loss for the second quarter of 2016 was $35.5 million, versus net loss of $84.8 million for the second quarter of 2015.
Net cash provided by operating activities for the second quarter of 2016 was $107.5 million, an increase of $6.7 million, or 6.7%, compared with the second quarter of 2015.