NASHVILLE, Tenn., Aug. 5, 2021 /PRNewswire/ -- Brookdale Senior
Living Inc. (NYSE: BKD) ("Brookdale" or the "Company") announced
results for the quarter ended June 30, 2021.
HIGHLIGHTS
- Second quarter weighted average occupancy grew 90 basis points
sequentially and monthly weighted average occupancy has increased
for five consecutive months beginning in March.
- July's weighted average occupancy growth was nearly equal to
the entire second quarter's sequential growth.
- Revenue per occupied unit (RevPOR) increased 4.2%
year-over-year and was flat sequentially on a same community basis,
reflecting the Company's overall strong pricing discipline.
- Liquidity position strengthened by over $300 million with the successful completion of
the Health Care Services segment sale.
"Our progress is clear through five consecutive months of
occupancy growth," said Lucinda ("Cindy") Baier, Brookdale's
President and CEO. "As we build occupancy, I am pleased with the
positive results of our pricing strategy, which is critically
important as our industry is in a lease-up phase. We are committed
to making the necessary investments to accelerate occupancy
recovery and ensure that we are best positioned to continue to
provide high quality care and services. Building on our recent
success, we expect even stronger occupancy growth in the third
quarter and remain confident in the long-term growth opportunity
for Brookdale."
SUMMARY OF SECOND QUARTER RESULTS
Consolidated
The table below presents a summary of consolidated operating
results.
|
|
Year-Over-Year
Increase /
(Decrease)
|
|
|
Sequential
Increase /
(Decrease)
|
($ in
millions)
|
2Q
2021
|
2Q
2020
|
Amount
|
Percent
|
|
1Q
2021
|
Amount
|
Percent
|
Resident fee
revenue
|
$
|
674.0
|
|
$
|
731.6
|
$
|
(57.6)
|
(7.9)%
|
|
$
|
664.4
|
$
|
9.6
|
1.4%
|
Management fee
revenue
|
5.0
|
|
6.1
|
(1.1)
|
(18.0)%
|
|
8.6
|
(3.6)
|
(41.9)%
|
Other operating
income
|
1.3
|
|
26.7
|
(25.4)
|
(95.1)%
|
|
10.7
|
(9.4)
|
(87.9)%
|
Facility operating
expense
|
550.8
|
|
606.0
|
(55.2)
|
(9.1)%
|
|
556.3
|
(5.5)
|
(1.0)%
|
General and
administrative expense
|
52.4
|
|
52.5
|
(0.1)
|
(0.2)%
|
|
49.9
|
2.5
|
5.0%
|
Net income
(loss)
|
(83.6)
|
|
(118.4)
|
(34.8)
|
(29.4)%
|
|
(108.3)
|
(24.7)
|
(22.8)%
|
Adjusted EBITDA
(1)
|
33.1
|
|
44.7
|
(11.6)
|
(26.0)%
|
|
35.0
|
(1.9)
|
(5.4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted EBITDA is a
financial measure that is not calculated in accordance with GAAP.
See "Reconciliations of Non-GAAP Financial
Measures" for the Company's definition of such measure,
reconciliations to the most comparable GAAP financial measure, and
other important
information regarding the use of the Company's non-GAAP financial
measures.
|
- Resident fee revenue.
-
- 2Q 2021 vs 2Q 2020:
-
- Consolidated RevPAR decreased $262, or 6.6%, to $3,692 as a result of a decrease in consolidated
weighted average occupancy of 820 basis points to 70.5%, offset by
an increase in consolidated RevPOR of $215, or 4.3%, to $5,237. The increase in RevPOR was primarily the
result of in-place rent increases.
- The disposition of 13 communities through sales and conveyances
of owned communities and lease terminations since the beginning of
the second quarter of 2020 resulted in $12.5
million less in resident fees during the second quarter of
2021 compared to the second quarter of 2020.
- Revenue for the Health Care Services segment decreased
$2.9 million, as the Company's home
health average daily census decreased compared to the prior year
period primarily due to the COVID-19 pandemic and lower occupancy
in its communities.
- 2Q 2021 vs 1Q 2021: Consolidated RevPAR increased
$61, or 1.7%, to $3,692 as a result of an increase in consolidated
weighted average occupancy of 90 basis points to 70.5%, in addition
to an increase in consolidated RevPOR of $18, or 0.3%, to $5,237.
- Consolidated senior housing occupancy was 72.6% as of
June 30, 2021 compared to 70.6% as of March 31, 2021.
- The Company estimates that the COVID-19 pandemic resulted in
$109.5 million, $117.5 million, and $63.6
million of lost resident fee revenue for the second quarter
of 2021, first quarter of 2021, and second quarter of 2020,
respectively. The estimated lost resident fee revenue represents
the difference between the actual resident fee revenue for the
period and the Company's pre-pandemic expectations for the 2020
period.
- Management fee revenue.
-
- The decrease was primarily due to the transition of management
arrangements on certain former unconsolidated ventures in which the
Company sold its interest and interim management agreements on
formerly leased communities.
- Other operating income.
-
- The Company recognized $1.3
million of government grants and employee retention credits
as other operating income during the second quarter of 2021,
compared to $26.4 million from the
Provider Relief Fund and $0.3 million
from other government grants as other operating income during the
second quarter of 2020, and $9.0
million from employee retention credits and $1.7 million from government grants as other
operating income during the first quarter of 2021.
- Facility operating expense.
-
- 2Q 2021 vs 2Q 2020:
-
- Facility operating expense decreased $55.2 million, or 9.1%, primarily due to a
$50.9 million decrease in incremental
costs to respond to the COVID-19 pandemic, a decrease in labor
costs for home health services as a result of the lower census, and
a decrease in food costs due to reduced occupancy during the
period.
- The disposition of communities resulted in $12.9 million less in facility operating expenses
during the second quarter of 2021 compared to the second quarter of
2020.
- These decreases were partially offset by an increase in
contract labor costs due to a competitive labor market and an
increase in advertising costs as the Company scaled back
advertising during the prior year period as a result of the
pandemic.
- 2Q 2021 vs 1Q 2021: Facility operating expense
decreased $5.5 million, or 1.0%,
primarily due to a $17.6 million
decrease in incremental costs to respond to the COVID-19 pandemic,
partially offset by an increase in labor expense arising from
increased contract labor costs due to a competitive labor market
and wage rate increases and an increase in insurance expense
related to changes in estimates in general liability and
professional liability reserves.
- The Company incurred $9.7
million, $27.3 million, and
$60.6 million of incremental direct
costs during the second quarter of 2021, first quarter of 2021, and
second quarter of 2020, respectively, to respond to the COVID-19
pandemic, including costs for: acquisition of personal protective
equipment ("PPE"), medical equipment, and cleaning and disposable
food service supplies; enhanced cleaning and environmental
sanitation; increased employee-related costs, including labor,
workers compensation, and health plan expense; increased expense
for general liability claims; and COVID-19 testing of residents and
associates where not otherwise covered by government payor or
third-party insurance sources.
- General and administrative expense.
-
- 2Q 2021 vs 2Q 2020: The decrease in general and
administrative expense was primarily attributable to decreases in
transaction costs, non-cash stock-based compensation expense, and
organizational restructuring costs, partially offset by an increase
in incentive compensation costs.
- 2Q 2021 vs 1Q 2021: The increase in general and
administrative expense was primarily attributable to an increase in
incentive compensation costs, partially offset by decreases in
transaction and organizational restructuring costs.
- Net income (loss).
-
- 2Q 2021 vs 2Q 2020: The decrease in net loss was
primarily attributable to decreases in facility operating lease
expense, depreciation and amortization expense, non-cash asset
impairment expense, and provision for income taxes, as well as an
increase in equity in earnings of unconsolidated ventures compared
to the prior year period, partially offset by the net impact of the
revenue, other operating income, facility operating expense, and
general and administrative factors previously discussed.
- 2Q 2021 vs 1Q 2021: The decrease in net loss was
primarily attributable to an increase in equity in earnings of
unconsolidated ventures and a decrease in non-cash asset impairment
expense compared to the prior period, as well as the net impact of
the revenue, other operating income, facility operating expense,
and general and administrative expense factors previously
discussed.
- Adjusted EBITDA.
-
- The decrease in Adjusted EBITDA was primarily attributable to
the net impact of the revenue, other operating income, facility
operating expense, and general and administrative expense
(excluding non-cash stock based compensation expense and
transaction and organizational restructuring costs) factors
previously discussed.
- Additionally, partially offsetting the decrease in Adjusted
EBITDA for the second quarter of 2021 compared to the second
quarter of 2020 was a $21.4 million
decrease in cash facility operating lease payments, primarily
reflecting reduced cash lease payments as a result of the lease
restructuring transaction with Ventas, Inc. ("Ventas") on
July 26, 2020.
- COVID-19 Impact.
-
- Vaccine Update: By April 9,
2021, the Company completed at least three rounds of
COVID-19 vaccine clinics at all of its approximately 700
communities through the Pharmacy Partnership for Long-Term Care
Program offered through the U.S Centers for Disease Control and
Prevention ("CDC"). Upon completion of at least three vaccine
clinics at all of its communities by April
2021, the Company's resident vaccine acceptance rate was 93%
and its COVID-19 positive resident caseload had decreased by 97%
since the peak in mid-December 2020.
The Company continues to promote vaccine acceptance among its
residents and associates and to work with state and local
resources, including local health departments and pharmacies, to
ensure its residents and associates can access the vaccine. The
Company also continues to monitor guidance of the CDC and U.S. Food
and Drug Administration regarding the potential need for booster
doses of COVID-19 vaccines.
- Rebuilding Occupancy. The Company continues to execute
on key initiatives to rebuild occupancy lost due to the pandemic.
During the second quarter of 2021 substantially all, and as of
July 31, 2021 all, of the Company's
communities were open for visitors, new resident move-ins, and
prospective residents. The Company's consolidated senior housing
monthly net move-ins and move-outs turned positive in March 2021 for the first time since the pandemic
began. Beginning in March 2021, the
Company has achieved five consecutive months of weighted average
consolidated senior housing occupancy growth on a sequential basis.
According to data from the National Investment Center for the
Seniors Housing & Care Industry ("NIC"), seniors housing
occupancy increased 10 basis points from the first quarter to the
second quarter of 2021 for stabilized portfolios. The Company's
weighted average consolidated senior housing occupancy increased 90
basis points sequentially for the second quarter of 2021 compared
to the first quarter of 2021. The table below sets forth the
Company's consolidated occupancy trend during 2021.
|
Jan
2021
|
Feb
2021
|
Mar
2021
|
Apr
2021
|
May
2021
|
June
2021
|
July
2021
|
Weighted average
occupancy
|
70.0
|
%
|
69.4
|
%
|
69.4
|
%
|
69.9
|
%
|
70.5
|
%
|
71.2
|
%
|
72.0
|
%
|
Month-end
occupancy
|
70.4
|
%
|
70.1
|
%
|
70.6
|
%
|
71.1
|
%
|
71.6
|
%
|
72.6
|
%
|
73.3
|
%
|
Same Community Senior Housing (Independent Living (IL),
Assisted Living and Memory Care (AL/MC), and CCRCs)
The table below presents a summary of same community operating
results and metrics of the Company's consolidated senior housing
portfolio.(2)
|
|
|
Year-Over-Year
Increase /
(Decrease)
|
|
Sequential
Increase /
(Decrease)
|
($ in millions,
except RevPAR and
RevPOR)
|
2Q
2021
|
2Q
2020
|
Amount
|
Percent
|
1Q
2021
|
Amount
|
Percent
|
RevPAR
|
$
|
3,696
|
|
$
|
3,982
|
|
$
|
(286)
|
|
(7.2)%
|
$
|
3,643
|
|
$
|
53
|
|
1.5%
|
Weighted average
occupancy
|
70.4%
|
|
79.0%
|
|
(860) bps
|
n/a
|
69.5%
|
|
90 bps
|
n/a
|
RevPOR
|
$
|
5,252
|
|
$
|
5,040
|
|
$
|
212
|
|
4.2%
|
$
|
5,244
|
|
$
|
8
|
|
0.2%
|
Facility operating
expense
|
$
|
443.9
|
|
$
|
473.0
|
|
$
|
(29.1)
|
|
(6.2)%
|
$
|
446.3
|
|
$
|
(2.4)
|
|
(0.5)%
|
|
|
|
|
(2)
|
The same community
portfolio includes operating results and data for 637 communities
consolidated and operational for the full period in both
comparison years. Consolidated communities excluded from the same
community portfolio include communities acquired or disposed of
since
the beginning of the prior year, communities classified as assets
held for sale, certain communities planned for disposition,
certain
communities that have undergone or are undergoing expansion,
redevelopment, and repositioning projects, and certain communities
that
have experienced a casualty event that significantly impacts their
operations. To aid in comparability, same community operating
results
exclude natural disaster expense of $0.6 million, $0.2 million, and
$1.1 million for the second quarter of 2021, the second quarter of
2020,
and the first quarter of 2021, respectively.
|
- Resident fees.
-
- 2Q 2021 vs 2Q 2020: Same community resident fees
decreased $43.3 million to
$559.4 million attributable to the
decrease in occupancy, partially offset by the increase in RevPOR.
The increase in RevPOR was primarily the result of in-place rent
increases.
- 2Q 2021 vs 1Q 2021: Same community resident fees
increased $7.9 million to
$559.4 million attributable to the
increase in occupancy and the increase in RevPOR.
- The Company estimates that the COVID-19 pandemic resulted in
$80.4 million, $91.2 million, and $44.2
million of lost resident fee revenue for the Company's same
community senior housing portfolio for the second quarter of 2021,
first quarter of 2021, and second quarter of 2020,
respectively.
- Facility operating expense.
-
- 2Q 2021 vs 2Q 2020: The year-over-year decrease was
primarily due to a $44.9 million
decrease in incremental costs to respond to the COVID-19 pandemic
and a decrease in food costs due to reduced occupancy during the
period, partially offset by an increase in contract labor costs due
to a competitive labor market and an increase in advertising costs
as the Company scaled back advertising during the prior year period
as a result of the pandemic.
- 2Q 2021 vs 1Q 2021: The decrease was primarily due to a
decrease in incremental costs to respond to the COVID-19 pandemic,
partially offset by an increase in labor expense arising from
increased contract labor costs due to a competitive labor market
and wage rate increases and an increase in insurance expense
related to changes in estimates in general liability and
professional liability reserves.
- The Company's same community senior housing portfolio incurred
$8.5 million, $25.2 million, and $53.4
million of incremental direct costs during the second
quarter of 2021, first quarter of 2021, and second quarter of 2020,
respectively, to respond to the COVID-19 pandemic.
LIQUIDITY
The table below presents a summary of the Company's net cash
provided by (used in) operating activities and Adjusted Free Cash
Flow.
|
|
Year-Over-Year
Increase /
(Decrease)
|
|
Sequential
Increase /
(Decrease)
|
($ in
millions)
|
2Q
2021
|
2Q
2020
|
Amount
|
Percent
|
1Q
2021
|
Amount
|
Percent
|
Net cash provided by
(used in) operating activities
|
$
|
3.4
|
|
$
|
151.8
|
|
$
|
(148.4)
|
|
(97.8)
|
%
|
$
|
(23.9)
|
|
$
|
27.3
|
|
NM
|
Adjusted Free Cash
Flow (3)
|
(54.7)
|
|
113.5
|
|
(168.2)
|
|
NM
|
(50.7)
|
|
(4.0)
|
|
(7.9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Adjusted Free Cash
Flow is a financial measure that is not calculated in accordance
with GAAP. See "Reconciliations of Non-GAAP Financial
Measures" for the Company's definition of such measure,
reconciliations to the most comparable GAAP financial measure and
other important
information regarding the use of the Company's non-GAAP financial
measures.
|
- Net cash provided by (used in) operating
activities.
-
- 2Q 2021 vs 2Q 2020: The decrease in net cash provided by
(used in) operating activities was primarily attributable to
$85.0 million of cash received under
the Medicare accelerated and advanced payment program during the
prior year period, a $33.8 million
decrease in government grants accepted compared to the prior year
period, and $26.5 million of the
employer portion of social security payroll taxes deferred during
the prior year period. These changes were partially offset by a
decrease in cash facility operating lease payments compared to the
prior year period.
- 2Q 2021 vs 1Q 2021: The change in net cash provided by
(used in) operating activities was primarily attributable to a
decrease in annual incentive compensation payments, a decrease in
annual insurance premium payments, and an increase in same
community revenue compared to the prior period.
- Adjusted Free Cash Flow.
-
- 2Q 2021 vs 2Q 2020: The $168.2
million decrease in Adjusted Free Cash Flow was primarily
attributable to the decrease in net cash provided by operating
activities and a $14.3 million
increase in non-development capital expenditures, net.
- 2Q 2021 vs 1Q 2021: The $4.0
million decrease in Adjusted Free Cash Flow was primarily
attributable to an $8.3 million
increase in non-development capital expenditures, net.
- Total Liquidity. Total liquidity of $387.8 million as of June 30, 2021 included
$280.7 million of unrestricted cash
and cash equivalents, $100.0 million
of marketable securities, and $7.1
million of availability on the Company's secured credit
facility. As described below, the Company sold 80% of its equity in
its Health Care Services segment on July 1,
2021, for net cash proceeds of $305.8
million at closing, which further enhanced the Company's
liquidity subsequent to June 30,
2021. Total liquidity as of June 30, 2021 decreased
$51.1 million from March 31, 2021, primarily attributable to the
negative $54.7 million of Adjusted
Free Cash Flow during the second quarter of 2021.
TRANSACTION UPDATE
- Health Care Services segment: On July 1, 2021, the Company sold 80% of its equity
in its Health Care Services segment pursuant to the Securities
Purchase Agreement (the "Purchase Agreement") with affiliates of
HCA Healthcare, Inc. At closing of the transaction, the Company
retained a 20% equity interest in the business. The Company
received net cash proceeds of $305.8
million at closing, which remains subject to a post-closing
net working capital adjustment as set forth in the Purchase
Agreement. Additionally, $10.0 million of the purchase price was
deposited into an escrow account as set forth in the Purchase
Agreement, the majority of which is expected to be released to the
Company upon completion of the post-closing net working capital
adjustment. Pursuant to the Purchase Agreement, the purchase price
of $400.0 million in cash was subject
to certain adjustments, including a reduction for the remaining
outstanding balance as of the closing of Medicare advance payments
and deferred payroll tax payments related to the Health Care
Services segment, which were $63.6
million and $8.9 million,
respectively.
OUTLOOK
Key factors that may impact the Company's financial performance
and liquidity for 2021 include:
- Senior Housing Occupancy: With sequential occupancy growth in
the last five consecutive months (March – July), the Company
expects sequential growth in the third quarter to accelerate. The
Company also expects to continue to publish monthly occupancy until
it returns to providing financial guidance, at which point it would
expect to return to its historical reporting practices.
- Facility Operating Expense: The Company expects similar
pandemic labor pressure, along with seasonally higher labor costs
in the third quarter.
- Non-development Capital Expenditures: The Company expects
non-development capital expenditures, net of lessor reimbursements,
to be approximately $140 million for
the full year 2021.
- Working Capital impacts related to Government Temporary
Liquidity Relief:
-
- Payroll Tax Deferral Program - The Company expects to pay
approximately $32 million of deferred
payments in both December 2021 and
2022.
- Medicare Advanced Payments - The Company expects recoupment of
approximately $5 million of advanced
payments in the second half of 2021.
SUPPLEMENTAL INFORMATION
The Company will post on its website at
www.brookdaleinvestors.com supplemental information relating to the
Company's second quarter 2021 results, an updated investor
presentation, and a copy of this earnings release. The supplemental
information and a copy of this earnings release will also be
furnished in a Form 8-K to be filed with the SEC.
EARNINGS CONFERENCE CALL
Brookdale's management will conduct a conference call to review
the financial results for the second quarter 2021 on August 6,
2021 at 9:00 AM ET. The conference
call can be accessed by dialing (833) 366-1368 (from within the
U.S.) or (639) 380-0044 (from outside of the U.S.) ten minutes
prior to the scheduled start and referencing "Brookdale".
A webcast of the conference call will be available to the public
on a listen-only basis at www.brookdaleinvestors.com. Please allow
extra time prior to the call to visit the site and download the
necessary software required to listen to the internet broadcast. A
replay of the webcast will be available through the website
following the call.
For those who cannot listen to the live call, a replay of the
webcast will be available until 11:59 PM
ET on Aug. 13, 2021 by dialing
(800) 585-8367 (from within the U.S.) or (416) 621-4642 (from
outside of the U.S.) and referencing access code "5243778".
ABOUT BROOKDALE SENIOR LIVING
Brookdale Senior Living Inc., the nation's premier operator of
senior living communities, is committed to its mission of enriching
the lives of the people it serves with compassion, respect,
excellence and integrity. The Company operates independent living,
assisted living, Alzheimer's and dementia care communities, and
through its comprehensive network of services, Brookdale helps to
provide seniors with care and services to support their lifestyle
in an environment that feels like home. The Company's expertise in
healthcare, hospitality and real estate provides our residents with
opportunities to improve wellness, pursue passions and stay
connected with friends and loved ones. The Company operates and
manages 685 communities in 41 states as of June 30, 2021, with
the ability to serve over 60,000 residents. Brookdale's stock
trades on the New York Stock Exchange under the ticker symbol BKD.
For more information, visit brookdale.com or connect with Brookdale
on Facebook at facebook.com/brookdaleseniorliving or Twitter
at twitter.com/brookdaleliving.
DEFINITIONS OF RevPAR AND RevPOR
RevPAR, or average monthly senior housing resident fee revenue
per available unit, is defined by the Company as resident fee
revenue for the corresponding portfolio for the period (excluding
Health Care Services segment revenue, revenue for private duty
services provided to seniors living outside of the Company's
communities, and entrance fee amortization), divided by the
weighted average number of available units in the corresponding
portfolio for the period, divided by the number of months in the
period.
RevPOR, or average monthly senior housing resident fee revenue
per occupied unit, is defined by the Company as resident fee
revenue for the corresponding portfolio for the period (excluding
Health Care Services segment revenue, revenue for private duty
services provided to seniors living outside of the Company's
communities, and entrance fee amortization), divided by the
weighted average number of occupied units in the corresponding
portfolio for the period, divided by the number of months in the
period.
SAFE HARBOR
Certain statements in this press release and the associated
earnings call 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 the Company's intent, belief
or expectations. Forward-looking statements are generally
identifiable by use of forward-looking terminology such as "may,"
"will," "should," "could," "would," "potential," "intend,"
"expect," "endeavor," "seek," "anticipate," "estimate," "believe,"
"project," "predict," "continue," "plan," "target," or other
similar words or expressions. These forward-looking statements are
based on certain assumptions and expectations, and the Company's
ability to predict results or the actual effect of future plans or
strategies is inherently uncertain. Although the Company believes
that expectations reflected in any forward-looking statements are
based on reasonable assumptions, it can give no assurance that its
assumptions or expectations will be attained and actual results and
performance could differ materially from those projected. Factors
which could have a material adverse effect on the Company's
operations and future prospects or which could cause events or
circumstances to differ from the forward-looking statements
include, but are not limited to, the impacts of the COVID-19
pandemic, including the response efforts of federal, state, and
local government authorities, businesses, individuals, and the
Company on the Company's business, results of operations, cash
flow, liquidity, and strategic initiatives, including plans for
future growth, which will depend on many factors, some of which
cannot be foreseen, including the duration, severity, and breadth
of the pandemic and any resurgence or variants of the disease, the
impact of COVID-19 on the nation's economy and debt and equity
markets and the local economies in the Company's markets, the
development, availability, utilization, and efficacy of COVID-19
testing, therapeutic agents, and vaccines and the prioritization of
such resources among businesses and demographic groups, government
financial and regulatory relief efforts that may become available
to business and individuals, including the Company's ability to
qualify for and satisfy the terms and conditions of financial
relief, perceptions regarding the safety of senior living
communities during and after the pandemic, changes in demand for
senior living communities and the Company's ability to adapt its
sales and marketing efforts to meet that demand, the impact of
COVID-19 on the Company's residents' and their families' ability to
afford resident fees, including due to changes in unemployment
rates, consumer confidence, housing markets, and equity markets
caused by COVID-19, changes in the acuity levels of the Company's
new residents, the disproportionate impact of COVID-19 on seniors
generally and those residing in the Company's communities, the
duration and costs of the Company's response efforts, including
increased equipment, supplies, labor, litigation, testing,
vaccination clinic, and other expenses, potentially greater
associate attrition and use of contract labor due to the Company's
associate vaccine mandate, the impact of COVID-19 on the Company's
ability to complete financings, refinancings, or other transactions
or to generate sufficient cash flow to cover required interest and
lease payments and to satisfy financial and other covenants in its
debt and lease documents, increased regulatory requirements,
including unfunded, mandatory testing, increased enforcement
actions resulting from COVID-19, government action that may limit
the Company's collection or discharge efforts for delinquent
accounts, and the frequency and magnitude of legal actions and
liability claims that may arise due to COVID-19 or the Company's
response efforts; events which adversely affect the ability of
seniors to afford resident fees, including downturns in the
economy, housing market, consumer confidence, or the equity markets
and unemployment among resident family members; changes in
reimbursement rates, methods, or timing under governmental
reimbursement programs including the Medicare and Medicaid
programs; the impact of ongoing healthcare reform efforts; the
effects of senior housing construction and development, lower
industry occupancy (including due to the pandemic), and increased
competition; conditions of housing markets, regulatory changes,
acts of nature, and the effects of climate change in geographic
areas where the Company is concentrated; terminations of the
Company's resident agreements and vacancies in the living spaces it
leases, including due to the pandemic; limits on the Company's
ability to use net operating loss carryovers to reduce future tax
payments; failure to maintain the security and functionality of the
Company's information systems, to prevent a cybersecurity attack or
breach, or to comply with applicable privacy and consumer
protection laws, including HIPAA; the Company's ability to complete
its capital expenditures in accordance with its plans; the
Company's ability to identify and pursue development, investment
and acquisition opportunities and its ability to successfully
integrate acquisitions; competition for the acquisition of assets;
the Company's ability to complete pending or expected disposition,
acquisition, or other transactions on agreed upon terms or at all,
including in respect of the satisfaction of closing conditions, the
risk that regulatory approvals are not obtained or are subject to
unanticipated conditions, and uncertainties as to the timing of
closing, and the Company's ability to identify and pursue any such
opportunities in the future; risks related to the implementation of
the Company's strategy, including initiatives undertaken to execute
on the Company's strategic priorities and their effect on its
results; delays in obtaining regulatory approvals; disruptions in
the financial markets or decreases in the appraised values or
performance of the Company's communities that affect the Company's
ability to obtain financing or extend or refinance debt as it
matures and the Company's financing costs; the Company's ability to
generate sufficient cash flow to cover required interest and
long-term lease payments and to fund its planned capital projects;
the effect of the Company's non-compliance with any of its debt or
lease agreements (including the financial covenants contained
therein), including the risk of lenders or lessors declaring a
cross default in the event of the Company's non-compliance with any
such agreements and the risk of loss of the Company's property
securing leases and indebtedness due to any resulting lease
terminations and foreclosure actions; the effect of the Company's
indebtedness and long-term leases on the Company's liquidity; the
potential phasing out of LIBOR which may increase the costs of the
Company's debt obligations; the Company's ability to obtain
additional capital on terms acceptable to it; departures of key
officers and potential disruption caused by changes in management;
increased competition for or a shortage of personnel (including due
to the pandemic), wage pressures resulting from increased
competition, low unemployment levels, minimum wage increases and
changes in overtime laws, and union activity; environmental
contamination at any of the Company's communities; failure to
comply with existing environmental laws; an adverse determination
or resolution of complaints filed against the Company, including
class action and stockholder derivative complaints; the cost and
difficulty of complying with increasing and evolving regulation;
costs to respond to, and adverse determinations resulting from,
government reviews, audits and investigations; unanticipated costs
to comply with legislative or regulatory developments; the risks
associated with current global economic conditions and general
economic factors such as inflation, the consumer price index,
commodity costs, fuel and other energy costs, costs of salaries,
wages, benefits, and insurance, interest rates, and tax rates; the
impact of seasonal contagious illness or an outbreak of COVID-19 or
other contagious disease in the markets in which the Company
operates; actions of activist stockholders, including a proxy
contest; as well as other risks detailed from time to time in the
Company's filings with the Securities and Exchange Commission,
including those set forth in the Company's Annual Report on Form
10-K and Quarterly Reports on Form 10-Q. When considering
forward-looking statements, you should keep in mind the risk
factors and other cautionary statements in such SEC filings.
Readers are cautioned not to place undue reliance on any of these
forward-looking statements, which reflect management's views as of
the date of this press release and/or associated earnings call. The
Company cannot guarantee future results, levels of activity,
performance or achievements, and, except as required by law, it
expressly disclaims any obligation to release publicly any updates
or revisions to any forward-looking statements contained in this
press release and/or associated earnings call to reflect any change
in the Company's expectations with regard thereto or change in
events, conditions, or circumstances on which any statement is
based.
Condensed
Consolidated Statements of Operations
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
(in thousands,
except per share data)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
|
|
|
|
|
|
|
Resident
fees
|
$
|
673,978
|
|
|
$
|
731,629
|
|
|
$
|
1,338,328
|
|
|
$
|
1,514,336
|
|
Management
fees
|
4,998
|
|
|
6,076
|
|
|
13,564
|
|
|
114,791
|
|
Reimbursed costs
incurred on behalf of managed communities
|
43,008
|
|
|
101,511
|
|
|
108,802
|
|
|
224,228
|
|
Other operating
income
|
1,308
|
|
|
26,693
|
|
|
12,043
|
|
|
26,693
|
|
Total revenue and
other operating income
|
723,292
|
|
|
865,909
|
|
|
1,472,737
|
|
|
1,880,048
|
|
|
|
|
|
|
|
|
|
Expense
|
|
|
|
|
|
|
|
Facility operating
expense (excluding facility depreciation and
amortization of $77,921, $86,971, $155,195, and $171,272,
respectively)
|
550,846
|
|
|
606,034
|
|
|
1,107,158
|
|
|
1,194,516
|
|
General and
administrative expense (including non-cash stock-
based compensation expense of $4,527, $6,119, $9,310, and
$12,076, respectively)
|
52,400
|
|
|
52,518
|
|
|
102,343
|
|
|
107,113
|
|
Facility operating
lease expense
|
43,864
|
|
|
62,379
|
|
|
88,282
|
|
|
126,860
|
|
Depreciation and
amortization
|
83,591
|
|
|
93,154
|
|
|
167,482
|
|
|
183,892
|
|
Asset
impairment
|
2,078
|
|
|
10,290
|
|
|
12,755
|
|
|
88,516
|
|
Costs incurred on
behalf of managed communities
|
43,008
|
|
|
101,511
|
|
|
108,802
|
|
|
224,228
|
|
Total operating
expense
|
775,787
|
|
|
925,886
|
|
|
1,586,822
|
|
|
1,925,125
|
|
Income (loss) from
operations
|
(52,495)
|
|
|
(59,977)
|
|
|
(114,085)
|
|
|
(45,077)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
341
|
|
|
2,243
|
|
|
762
|
|
|
3,698
|
|
Interest
expense:
|
|
|
|
|
|
|
|
Debt
|
(35,425)
|
|
|
(38,974)
|
|
|
(70,776)
|
|
|
(80,737)
|
|
Financing lease
obligations
|
(11,492)
|
|
|
(11,892)
|
|
|
(22,875)
|
|
|
(25,174)
|
|
Amortization of
deferred financing costs and debt discount
|
(2,140)
|
|
|
(1,556)
|
|
|
(4,013)
|
|
|
(2,871)
|
|
Gain (loss) on debt
modification and extinguishment, net
|
—
|
|
|
(157)
|
|
|
—
|
|
|
19,024
|
|
Equity in earnings
(loss) of unconsolidated ventures
|
13,946
|
|
|
438
|
|
|
13,415
|
|
|
(570)
|
|
Gain (loss) on sale
of assets, net
|
(79)
|
|
|
(1,029)
|
|
|
1,033
|
|
|
371,810
|
|
Other non-operating
income (loss)
|
2,948
|
|
|
988
|
|
|
4,592
|
|
|
3,650
|
|
Income (loss) before
income taxes
|
(84,396)
|
|
|
(109,916)
|
|
|
(191,947)
|
|
|
243,753
|
|
Benefit (provision)
for income taxes
|
792
|
|
|
(8,504)
|
|
|
40
|
|
|
7,324
|
|
Net income
(loss)
|
(83,604)
|
|
|
(118,420)
|
|
|
(191,907)
|
|
|
251,077
|
|
Net (income) loss
attributable to noncontrolling interest
|
19
|
|
|
19
|
|
|
37
|
|
|
37
|
|
Net income (loss)
attributable to Brookdale Senior Living Inc.
common stockholders
|
$
|
(83,585)
|
|
|
$
|
(118,401)
|
|
|
$
|
(191,870)
|
|
|
$
|
251,114
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to Brookdale Senior
Living Inc. common stockholders:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.45)
|
|
|
$
|
(0.65)
|
|
|
$
|
(1.04)
|
|
|
$
|
1.37
|
|
Diluted
|
$
|
(0.45)
|
|
|
$
|
(0.65)
|
|
|
$
|
(1.04)
|
|
|
$
|
1.37
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
185,182
|
|
|
183,178
|
|
|
184,600
|
|
|
183,682
|
|
Diluted
|
185,182
|
|
|
183,178
|
|
|
184,600
|
|
|
183,862
|
|
Condensed
Consolidated Balance Sheets
|
|
(in
thousands)
|
June 30,
2021
|
|
December 31,
2020
|
Cash and cash
equivalents
|
$
|
280,675
|
|
|
$
|
380,420
|
|
Marketable
securities
|
99,977
|
|
|
172,905
|
|
Restricted
cash
|
30,766
|
|
|
28,059
|
|
Accounts receivable,
net
|
52,906
|
|
|
109,221
|
|
Assets held for
sale
|
238,357
|
|
|
16,061
|
|
Prepaid expenses and
other current assets, net
|
78,250
|
|
|
66,937
|
|
Total current
assets
|
780,931
|
|
|
773,603
|
|
Property, plant and
equipment and leasehold intangibles, net
|
4,984,864
|
|
|
5,068,060
|
|
Operating lease
right-of-use assets
|
706,357
|
|
|
788,138
|
|
Other assets,
net
|
130,797
|
|
|
271,957
|
|
Total
assets
|
$
|
6,602,949
|
|
|
$
|
6,901,758
|
|
|
|
|
|
Current portion of
long-term debt
|
$
|
218,332
|
|
|
$
|
68,885
|
|
Current portion of
financing lease obligations
|
21,055
|
|
|
19,543
|
|
Current portion of
operating lease obligations
|
143,053
|
|
|
146,226
|
|
Liabilities held for
sale
|
102,545
|
|
|
—
|
|
Other current
liabilities
|
412,337
|
|
|
456,079
|
|
Total current
liabilities
|
897,322
|
|
|
690,733
|
|
Long-term debt, less
current portion
|
3,655,441
|
|
|
3,847,103
|
|
Financing lease
obligations, less current portion
|
536,720
|
|
|
543,764
|
|
Operating lease
obligations, less current portion
|
761,587
|
|
|
819,429
|
|
Other
liabilities
|
135,744
|
|
|
198,000
|
|
Total
liabilities
|
5,986,814
|
|
|
6,099,029
|
|
Total Brookdale
Senior Living Inc. stockholders' equity
|
613,877
|
|
|
800,434
|
|
Noncontrolling
interest
|
2,258
|
|
|
2,295
|
|
Total
equity
|
616,135
|
|
|
802,729
|
|
Total liabilities and
equity
|
$
|
6,602,949
|
|
|
$
|
6,901,758
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
Six Months Ended
June 30,
|
(in
thousands)
|
2021
|
|
2020
|
Cash Flows from
Operating Activities
|
|
|
|
Net income
(loss)
|
$
|
(191,907)
|
|
|
$
|
251,077
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating
activities:
|
|
|
|
Loss (gain) on debt
modification and extinguishment, net
|
—
|
|
|
(19,024)
|
|
Depreciation and
amortization, net
|
171,495
|
|
|
186,763
|
|
Asset
impairment
|
12,755
|
|
|
88,516
|
|
Equity in (earnings)
loss of unconsolidated ventures
|
(13,415)
|
|
|
570
|
|
Distributions from
unconsolidated ventures from cumulative share of net
earnings
|
5,355
|
|
|
—
|
|
Amortization of
entrance fees
|
(876)
|
|
|
(925)
|
|
Proceeds from deferred
entrance fee revenue
|
2,298
|
|
|
85
|
|
Deferred income tax
(benefit) provision
|
(704)
|
|
|
(15,253)
|
|
Operating lease
expense adjustment
|
(9,990)
|
|
|
(14,954)
|
|
Loss (gain) on sale of
assets, net
|
(1,033)
|
|
|
(371,810)
|
|
Non-cash stock-based
compensation expense
|
9,310
|
|
|
12,076
|
|
Other
|
(4,007)
|
|
|
(1,800)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
(1,267)
|
|
|
12,995
|
|
Prepaid expenses and
other assets, net
|
1,605
|
|
|
20,162
|
|
Prepaid insurance
premiums financed with notes payable
|
(8,785)
|
|
|
(11,664)
|
|
Trade accounts payable
and accrued expenses
|
2,131
|
|
|
(18,692)
|
|
Refundable fees and
deferred revenue
|
(8,918)
|
|
|
80,688
|
|
Operating lease assets
and liabilities for lessor capital expenditure
reimbursements
|
15,506
|
|
|
10,509
|
|
Net cash provided by
(used in) operating activities
|
(20,447)
|
|
|
209,319
|
|
Cash Flows from
Investing Activities
|
|
|
|
Change in lease
security deposits and lease acquisition deposits, net
|
(75)
|
|
|
3,304
|
|
Purchase of marketable
securities
|
(119,914)
|
|
|
(149,236)
|
|
Sale and maturities of
marketable securities
|
192,995
|
|
|
108,750
|
|
Capital expenditures,
net of related payables
|
(79,538)
|
|
|
(112,863)
|
|
Acquisition of assets,
net of related payables and cash received
|
—
|
|
|
(446,688)
|
|
Investment in
unconsolidated ventures
|
(5,359)
|
|
|
(356)
|
|
Proceeds from sale of
assets, net
|
9,646
|
|
|
300,539
|
|
Proceeds from notes
receivable
|
—
|
|
|
1,140
|
|
Net cash provided by
(used in) investing activities
|
(2,245)
|
|
|
(295,410)
|
|
Cash Flows from
Financing Activities
|
|
|
|
Proceeds from
debt
|
21,022
|
|
|
473,460
|
|
Repayment of debt and
financing lease obligations
|
(72,970)
|
|
|
(303,920)
|
|
Proceeds from line of
credit
|
—
|
|
|
166,381
|
|
Purchase of treasury
stock, net of related payables
|
—
|
|
|
(18,123)
|
|
Payment of financing
costs, net of related payables
|
(172)
|
|
|
(7,469)
|
|
Payments of employee
taxes for withheld shares
|
(4,444)
|
|
|
(3,951)
|
|
Other
|
10
|
|
|
146
|
|
Net cash provided by
(used in) financing activities
|
(56,554)
|
|
|
306,524
|
|
Net increase
(decrease) in cash, cash equivalents, and restricted
cash
|
(79,246)
|
|
|
220,433
|
|
Cash, cash
equivalents, and restricted cash at beginning of period
|
465,148
|
|
|
301,697
|
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
|
385,902
|
|
|
$
|
522,130
|
|
Reconciliations of Non-GAAP Financial Measures
This earnings release contains the financial measures Adjusted
EBITDA and Adjusted Free Cash Flow, which are not calculated in
accordance with U.S. generally accepted accounting principles
("GAAP"). Presentations of these non-GAAP financial measures are
intended to aid investors in better understanding the factors and
trends affecting the Company's performance and liquidity. However,
investors should not consider these non-GAAP financial measures as
a substitute for financial measures determined in accordance with
GAAP, including net income (loss), income (loss) from operations,
or net cash provided by (used in) operating activities. Investors
are cautioned that amounts presented in accordance with the
Company's definitions of these non-GAAP financial measures may not
be comparable to similar measures disclosed by other companies
because not all companies calculate non-GAAP measures in the same
manner. Investors are urged to review the following reconciliations
of these non-GAAP financial measures from the most comparable
financial measures determined in accordance with GAAP.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP performance measure that the
Company defines as net income (loss) excluding: benefit/provision
for income taxes, non-operating income/expense items, and
depreciation and amortization; and further adjusted to exclude
income/expense associated with non-cash, non-operational,
transactional, cost reduction, or organizational restructuring
items that management does not consider as part of the Company's
underlying core operating performance and that management believes
impact the comparability of performance between periods. For the
periods presented herein, such other items include non-cash
impairment charges, gain/loss on facility lease termination and
modification, operating lease expense adjustment, amortization of
deferred gain, change in future service obligation, non-cash
stock-based compensation expense, and transaction and
organizational restructuring costs. Transaction costs include those
directly related to acquisition, disposition, financing, and
leasing activity, and stockholder relations advisory matters, and
are primarily comprised of legal, finance, consulting, professional
fees, and other third party costs. Organizational restructuring
costs include those related to the Company's efforts to reduce
general and administrative expense and its senior leadership
changes, including severance.
The Company believes that presentation of Adjusted EBITDA as a
performance measure is useful to investors because (i) it is one of
the metrics used by the Company's management for budgeting and
other planning purposes, to review the Company's historic and
prospective core operating performance, and to make day-to-day
operating decisions; (ii) it provides an assessment of operational
factors that management can impact in the short-term, namely
revenues and the controllable cost structure of the organization,
by eliminating items related to the Company's financing and capital
structure and other items that management does not consider as part
of the Company's underlying core operating performance and that
management believes impact the comparability of performance between
periods; and (iii) the Company believes that this measure is used
by research analysts and investors to evaluate the Company's
operating results and to value companies in its industry.
Adjusted EBITDA has material limitations as a performance
measure, including: (i) excluded interest and income tax are
necessary to operate the Company's business under its current
financing and capital structure; (ii) excluded depreciation,
amortization and impairment charges may represent the wear and tear
and/or reduction in value of the Company's communities, goodwill,
and other assets and may be indicative of future needs for capital
expenditures; and (iii) the Company may incur income/expense
similar to those for which adjustments are made, such as gain/loss
on sale of assets, facility lease termination and modification, or
debt modification and extinguishment, non-cash stock-based
compensation expense, and transaction and other costs, and such
income/expense may significantly affect the Company's operating
results.
The table below reconciles the Company's Adjusted EBITDA from
its net income (loss).
|
Three Months
Ended
|
(in
thousands)
|
June 30,
2021
|
|
March 31,
2021
|
|
June 30,
2020
|
Net income
(loss)
|
$
|
(83,604)
|
|
|
$
|
(108,303)
|
|
|
$
|
(118,420)
|
|
Provision (benefit)
for income taxes
|
(792)
|
|
|
752
|
|
|
8,504
|
|
Equity in (earnings)
loss of unconsolidated ventures
|
(13,946)
|
|
|
531
|
|
|
(438)
|
|
Loss (gain) on debt
modification and extinguishment, net
|
—
|
|
|
—
|
|
|
157
|
|
Loss (gain) on sale
of assets, net
|
79
|
|
|
(1,112)
|
|
|
1,029
|
|
Other non-operating
(income) loss
|
(2,948)
|
|
|
(1,644)
|
|
|
(988)
|
|
Interest
expense
|
49,057
|
|
|
48,607
|
|
|
52,422
|
|
Interest
income
|
(341)
|
|
|
(421)
|
|
|
(2,243)
|
|
Income (loss) from
operations
|
(52,495)
|
|
|
(61,590)
|
|
|
(59,977)
|
|
Depreciation and
amortization
|
83,591
|
|
|
83,891
|
|
|
93,154
|
|
Asset
impairment
|
2,078
|
|
|
10,677
|
|
|
10,290
|
|
Operating lease
expense adjustment
|
(5,326)
|
|
|
(4,664)
|
|
|
(8,221)
|
|
Non-cash stock-based
compensation expense
|
4,527
|
|
|
4,783
|
|
|
6,119
|
|
Transaction and
organizational restructuring costs
|
689
|
|
|
1,884
|
|
|
3,368
|
|
Adjusted
EBITDA(1)
|
$
|
33,064
|
|
|
$
|
34,981
|
|
|
$
|
44,733
|
|
|
|
|
|
(1)
|
Adjusted EBITDA
includes $1.3 million, $10.7 million, and $26.7 million benefit for
the three months ended June 30, 2021, March 31, 2021,
and June 30, 2020, respectively, of Provider Relief Funds and
other government grants and credits recognized in other operating
income.
|
Adjusted Free Cash Flow
Adjusted Free Cash Flow is a non-GAAP liquidity measure that the
Company defines as net cash provided by (used in) operating
activities before: distributions from unconsolidated ventures from
cumulative share of net earnings, changes in prepaid insurance
premiums financed with notes payable, changes in operating lease
liability for lease termination, cash paid/received for gain/loss
on facility lease termination and modification, and lessor capital
expenditure reimbursements under operating leases;
plus: property insurance proceeds and proceeds from refundable
entrance fees, net of refunds; less: non-development capital
expenditures and payment of financing lease obligations.
Non-development capital expenditures are comprised of corporate and
community-level capital expenditures, including those related to
maintenance, renovations, upgrades, and other major building
infrastructure projects for the Company's communities and is
presented net of lessor reimbursements. Non-development capital
expenditures do not include capital expenditures for: community
expansions, major community redevelopment and repositioning
projects, and the development of new communities.
The Company believes that presentation of Adjusted Free Cash
Flow as a liquidity measure is useful to investors because (i) it
is one of the metrics used by the Company's management for
budgeting and other planning purposes, to review the Company's
historic and prospective sources of operating liquidity, and to
review the Company's ability to service its outstanding
indebtedness, pay dividends to stockholders, engage in share
repurchases, and make capital expenditures, including development
capital expenditures; and (ii) it provides an indicator to
management to determine if adjustments to current spending
decisions are needed.
Adjusted Free Cash Flow has material limitations as a liquidity
measure, including: (i) it does not represent cash available for
dividends, share repurchases, or discretionary expenditures since
certain non-discretionary expenditures, including mandatory debt
principal payments, are not reflected in this measure; (ii) the
cash portion of non-recurring charges related to gain/loss on
facility lease termination generally represent charges/gains that
may significantly affect the Company's liquidity; and (iii) the
impact of timing of cash expenditures, including the timing of
non-development capital expenditures, limits the usefulness of the
measure for short-term comparisons.
The table below reconciles the Company's Adjusted Free Cash Flow
from its net cash provided by (used in) operating activities.
|
Three Months
Ended
|
(in
thousands)
|
June 30,
2021
|
|
March 31,
2021
|
|
June 30,
2020
|
Net cash provided
by (used in) operating activities
|
$
|
3,410
|
|
|
$
|
(23,857)
|
|
|
$
|
151,840
|
|
Net cash provided by
(used in) investing activities
|
1,561
|
|
|
(3,806)
|
|
|
(47,483)
|
|
Net cash provided by
(used in) financing activities
|
(20,992)
|
|
|
(35,562)
|
|
|
(40,726)
|
|
Net increase
(decrease) in cash, cash equivalents, and restricted cash
|
$
|
(16,021)
|
|
|
$
|
(63,225)
|
|
|
$
|
63,631
|
|
|
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
$
|
3,410
|
|
|
$
|
(23,857)
|
|
|
$
|
151,840
|
|
Distributions from
unconsolidated ventures from cumulative
share of net earnings
|
(5,355)
|
|
|
—
|
|
|
—
|
|
Changes in prepaid
insurance premiums financed with notes
payable
|
(4,200)
|
|
|
12,985
|
|
|
(5,770)
|
|
Changes in assets and
liabilities for lessor capital expenditure
reimbursements under operating leases
|
(7,943)
|
|
|
(7,563)
|
|
|
(6,421)
|
|
Non-development
capital expenditures, net
|
(35,795)
|
|
|
(27,450)
|
|
|
(21,521)
|
|
Payment of financing
lease obligations
|
(4,864)
|
|
|
(4,789)
|
|
|
(4,677)
|
|
Adjusted Free Cash
Flow (1)
|
$
|
(54,747)
|
|
|
$
|
(50,674)
|
|
|
$
|
113,451
|
|
(1)
|
Adjusted Free Cash
Flow includes transaction and organizational restructuring costs of
$0.7 million, $1.9 million, and $3.4 million for the three
months ended June 30, 2021, March 31, 2021, and June 30, 2020,
respectively. Additionally, Adjusted Free Cash Flow
includes:
|
|
- $0.4 million, $1.7 million, and $34.2 million
benefit for the three months ended June 30, 2021, March 31, 2021,
and June 30, 2020,
respectively, from Provider Relief Funds and other government
grants accepted
- $14.3 million recoupment of
accelerated/advanced Medicare payments for the three months ended
June 30, 2021
- $85.0 million benefit from
accelerated/advanced Medicare payments received for the three
months ended June 30, 2020
- $26.5 million benefit from payroll taxes
deferred for the three months ended June 30, 2020
|
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SOURCE Brookdale Senior Living Inc.