Financial Data and Key Metrics Changes - In Q3 2024, adjusted EBITDA grew 15% year-over-year to $92.2 million, which is roughly the midpoint of the previously provided guidance range [11][44] - Adjusted free cash flow for the third quarter was $14 million, an increase of $11 million compared to the prior year [48] - RevPAR increased by 5.9% over the prior year, with same-community RevPAR growing 5.6% [11][38] Business Line Data and Key Metrics Changes - The number of communities operating with the Brookdale HealthPlus program more than doubled, leading to improved clinical outcomes [8][21] - Same-community RevPOR grew 4.2%, which was an acceleration from the second quarter [16][39] - Labor expense as a percentage of revenue improved by 140 basis points compared to the prior year [40] Market Data and Key Metrics Changes - The company experienced a sequential occupancy growth of 80 basis points, which was better than historical seasonal trends [7][37] - Move-ins improved from the second quarter but remained below the prior year, primarily due to softness from two large paid third-party referral sources [12][70] - The industry experienced a sequential deceleration in average asking rent growth, while Brookdale's RevPOR growth accelerated [16][39] Company Strategy and Development Direction - The company is focused on returning to pre-pandemic occupancy levels while maintaining profitable occupancy growth [15][30] - Brookdale plans to acquire 41 communities to enhance cash flow and reduce exposure to escalating lease costs [24][26] - The strategic priorities for 2025 include maximizing occupancy, retaining top associates, and ensuring high-quality care [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future occupancy and adjusted EBITDA growth, despite challenges from third-party referral sources [18][34] - The company is committed to managing expenses while meeting resident needs and maintaining regulatory compliance [32][41] - Management noted that the competitive landscape has seen increased discounting, potentially influenced by external factors such as the presidential election [91] Other Important Information - The company successfully refinanced the majority of its debt maturities without extension options through 2026 [10][57] - Brookdale HealthPlus has shown significant clinical outcomes, including 80% fewer emergency room visits and 66% fewer hospitalizations compared to seniors living at home [21][99] - The company expects to close the acquisition transactions by year-end, which will be immediately accretive to adjusted free cash flow [54][55] Q&A Session Summary Question: Can you walk us through the income statement regarding the lease reclassification and its impact on 2025? - Management confirmed that the $8 million benefit to adjusted EBITDA in Q4 is a timing difference, with a corresponding increase in interest expense expected in 2025 [66][67] Question: What is the strategy regarding the pressured third-party referral sources? - Management clarified that the decline in move-ins from third-party sources is not cost-related and that they are implementing internal marketing strategies to offset this decline [70][74] Question: How should we interpret the RevPAR guidance and the competitive pricing environment? - Management indicated that while RevPAR is expected to grow, they anticipate a sequential decline in RevPOR due to changes in resident acuity [75][76] Question: What are the expectations for occupancy growth in Q4? - Management expects occupancy to increase sequentially, aligning with year-to-date RevPOR growth [84][85] Question: Can you elaborate on the impact of the Google algorithm change on third-party referrals? - Management noted that a recent Google algorithm change has negatively affected lead generation for one of the major third-party referral sources [87][88]

Company Operations - As of September 30, 2024, the company operates 648 senior living communities across 41 states, serving approximately 58,000 residents[111]. - The number of communities decreased by 22 to 619, representing a 3.4% decline compared to the prior year[129]. - The company operates 277 communities under long-term leases, with a total of 19,860 units[218]. Financial Performance - Resident fees for the three months ended September 30, 2024, increased by $26.6 million (3.7%) to $743.7 million compared to $717.1 million in the same period of 2023[122]. - Adjusted EBITDA for the same period rose by $12.0 million (15.0%) to $92.2 million from $80.2 million year-over-year[122]. - The company has experienced a net loss of $50.7 million for the three months ended September 30, 2024, compared to a net loss of $48.8 million in the same period of 2023[122]. - Net income for the three months ended September 30, 2024, was a loss of $50,734 thousand, compared to a loss of $48,811 thousand for the same period in 2023[231]. - Adjusted EBITDA for the three months ended September 30, 2024, was $92,237 thousand, an increase from $80,220 thousand in the same period of 2023[231]. - Adjusted Free Cash Flow for the three months ended September 30, 2024, was $13,853 thousand, significantly up from $2,544 thousand in the same period of 2023[236]. - Net cash provided by operating activities for the three months ended September 30, 2024, was $66,455 thousand, compared to $45,763 thousand for the same period in 2023[236]. Revenue and Occupancy - The increase in resident fees was driven by a 5.6% rise in same community RevPAR, which included a 4.2% increase in same community RevPOR and a 100 basis point increase in same community weighted average occupancy[122]. - RevPAR improved to $4,869, a 5.9% increase from $4,596 in the previous year[129]. - Weighted average occupancy increased by 130 basis points to 78.9% compared to 77.6% in the prior year[129]. - In the Independent Living segment, resident fees rose to $150.4 million, a 6.5% increase from $141.2 million[133]. - The Assisted Living and Memory Care segment reported resident fees of $510.1 million, up 3.3% from $494.0 million[137]. - CCRC segment resident fees increased to $83.3 million, reflecting a 1.7% rise from $81.9 million[142]. - The increase in resident fees in the Assisted Living and Memory Care segment was primarily due to a 4.4% increase in RevPOR and a 120 basis point increase in occupancy[173]. Expenses - Facility operating expenses increased by $10.9 million (2.0%) to $548.3 million for the three months ended September 30, 2024[122]. - Facility operating expense rose to $548.3 million, reflecting a 2.0% increase from $537.4 million in the same period last year[129]. - The overall increase in facility operating expenses was attributed to inflationary pressures and increased marketing costs, partially offset by a decrease in premium labor usage[134]. - Facility operating expenses for the Assisted Living and Memory Care segment rose to $1,122,766, an increase of $23,384 or 2.1% from the prior year[172]. - Facility operating expenses in the CCRCs segment decreased by $10,430 to $204,427, a reduction of 4.9% compared to the previous year[177]. Debt and Liquidity - As of September 30, 2024, the company had $3.7 billion of debt outstanding at a weighted average interest rate of 5.45%[198]. - The company has $100.0 million and $220.0 million of mortgage notes payable maturing in January 2025 and October 2025, respectively, with options to extend for one year[206]. - Total liquidity as of September 30, 2024, was $324,100,000, a decrease of $16,600,000 from $340,700,000 as of December 31, 2023[203]. - The company expects full-year 2024 non-development capital expenditures to be approximately $180.0 million, funded from cash on hand, cash flows from operations, and insurance reimbursements[212]. - The company amended its revolving credit agreement in December 2023, expanding the commitment amount to $100.0 million, maturing in January 2027[213]. - As of September 30, 2024, $58.5 million of letters of credit were outstanding under the $100.0 million secured credit facility, with $39.7 million available[214]. - The company is in compliance with the financial covenants of its debt agreements and long-term lease agreements as of September 30, 2024[225]. Acquisitions - The company entered into agreements to acquire 41 communities (2,789 units) for a total purchase price of $610.0 million, expected to close by year-end 2024[113]. - The acquisition is projected to decrease cash paid for operating and financing leases by approximately $46.6 million for the twelve months ending December 31, 2025[113]. - The company expects to recognize an approximately $33.0 million loss on extinguishment of the financing obligation upon closing of the reacquisition transaction[113].

Core Insights - Brookdale Senior Living (BKD) reported a quarterly loss of $0.22 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.16, marking a 37.50% earnings surprise [1] - The company generated revenues of $784.17 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.18%, but showing an increase from $757.29 million year-over-year [2] - Brookdale's stock has increased by approximately 7.6% since the beginning of the year, underperforming compared to the S&P 500's gain of 21.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $785.4 million, and for the current fiscal year, it is -$0.57 on revenues of $3.13 billion [7] - The estimate revisions trend for Brookdale is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Medical - Nursing Homes industry, to which Brookdale belongs, is currently in the top 8% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Occupancy and Performance Metrics - Brookdale Senior Living Inc. announced its consolidated occupancy for September 2024, with specific figures to be detailed in the press release[3] - The financial results for the quarter ended September 30, 2024, were disclosed, indicating key performance metrics[3] - The press release dated October 8, 2024, includes additional information regarding the company's operational performance[4]

NASHVILLE, Tenn., Nov. 6, 2024 /PRNewswire/ -- Brookdale Senior Living Inc. (NYSE: BKD) ("Brookdale" or the "Company") announced results for the quarter ended September 30, 2024. HIGHLIGHTS Third quarter consolidated weighted average occupancy grew 130 basis points over the prior year quarter and 80 basis points sequentially over the second quarter. Same community operating income increased 10.1% over the prior year period, when excluding prior period grant income, marking three years of consecutive quarter ...

Core Insights - Brookdale Senior Living Inc. is set to release its third quarter 2024 financial results on November 6, 2024, after market close [1] - A conference call to discuss the results will take place on November 7, 2024, at 9:00 a.m. (ET) [1] - The company operates 648 communities across 41 states, serving approximately 58,000 residents as of September 30, 2024 [3] Company Overview - Brookdale Senior Living Inc. is the leading operator of senior living communities in the United States [3] - The company focuses on enriching the lives of seniors through various services, including independent living, assisted living, memory care, and continuing care retirement communities [3] - Brookdale emphasizes a mission of compassion, respect, excellence, and integrity in its operations [3]

Brookdale Senior Living Inc. (BKD) recently announced that its third-quarter 2024 weighted average occupancy grew 130 basis points (bps) from the year-ago level to 78.9%. The weighted average occupancy for the first and second quarters increased 160 bps year over year each. While its August 2024 weighted average occupancy grew 130 bps year over year to a new high (78.9%) for the company since it started on the recovery path in March 2021, the same for September grew 30 bps sequentially and 100 bps from a ye ...

Group 1 - The weighted average occupancy for September increased by 30 basis points sequentially to 79.2%, with month-end occupancy reaching 80.5% [1] - September marks the thirty-fifth consecutive month of year-over-year weighted average occupancy growth for the company [1] - The third quarter saw a weighted average occupancy increase of 130 basis points compared to the third quarter of 2023, and an increase of 80 basis points compared to the second quarter of 2024 [1] - Move-ins and move-outs in the third quarter were favorable compared to the second quarter [1] Group 2 - Brookdale Senior Living Inc. is the leading operator of senior living communities in the United States, focusing on enriching the lives of seniors with compassion and integrity [2] - The company operates 648 communities across 41 states as of September 30, 2024, with the capacity to serve approximately 58,000 residents [2] - Brookdale offers a range of living options including independent living, assisted living, memory care, and continuing care retirement communities [2]

Company Overview - Brookdale Senior Living operates senior living communities across the U.S., divided into three main segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs) [4] - The majority of the company's revenue is generated from the Assisted Living and Memory Care segment, which provides housing and support for daily activities [4] - Revenue is primarily obtained through accommodation fees and management fees as per contractual agreements [4] Financial Performance - The latest financial report indicates a revenue of $778 million and a net loss of $37.73 million, resulting in an earnings per share of -$0.17 [2] - The price-to-earnings ratio stands at -6.17, reflecting the company's current financial challenges [2] - The stock price experienced a significant drop of 5.04%, currently trading at $5.65 per share with a trading volume of 1.346 million shares [1] Market Context - The healthcare facilities sector has seen an overall decline of 0.58%, with Brookdale's stock being part of this trend [3] - Notable gains have been observed in stocks such as Regional Health Properties, Airsculpt Technologies, and Aveanna Healthcare Holdings, indicating a mixed performance within the sector [3] - Among the four institutions providing ratings for Brookdale, 50% recommend buying while 50% suggest selling, with no hold recommendations [2]

Company Overview - Brookdale Senior Living operates senior living communities across the United States, generating revenue primarily from assisted living and memory care segments through accommodation fees and management fees as per contracts [4] Financial Performance - The latest financial report indicates operating revenue of $778 million and a net loss of $37.73 million, resulting in earnings per share of -$0.17 and a price-to-earnings ratio of -6.85 [2] - The company's stock price recently declined by 5.14%, currently standing at $6.28 per share, with a trading volume of 829,865 shares and a turnover rate of 0.42% [1] Market Context - Within the healthcare facilities sector, there was an overall decline of 2.28%, while some stocks like Newgenivf Group Limited C/Wts, The Pennant Group, Inc., and Compass Pathways Plc experienced notable gains [3] - Among analyst ratings from four institutions, 50% recommended a buy for Brookdale, while 25% suggested holding and another 25% advised selling [2]