Brookdale Senior Living(BKD) - 2024 Q3 - Quarterly Report

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$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$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$141.2 million[133]. - The Assisted Living and Memory Care segment reported resident fees of $510.1 million, up 3.3$494.0 million[137]. - CCRC segment resident fees increased to $83.3 million, reflecting a 1.7$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$548.3 million for the three months ended September 30, 2024[122]. - Facility operating expense rose to $548.3 million, reflecting a 2.0$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$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].