NASHVILLE, Tenn., May 6, 2021 /PRNewswire/ -- Brookdale Senior
Living Inc. (NYSE: BKD) ("Brookdale" or the "Company") announced
results for the quarter ended March 31, 2021.
HIGHLIGHTS
- Net move-ins and move-outs turned positive in March for the
first time since the COVID-19 pandemic began and remained positive
in April.
- Sequentially, monthly weighted average occupancy grew slightly
in March, and increased 50 basis points in April.
- First quarter revenue per occupied unit (RevPOR) increased by
2.9% year-over-year on a same community basis.
- All communities completed at least three vaccine clinics with a
93% resident vaccine acceptance rate. COVID-19 positive resident
caseload has decreased by 97% since the peak in mid-December 2020.
"We are pleased that our communities' occupancy began to grow
again by the end of the first quarter and confident in our ability
to continue to help our residents, patients and associates put the
COVID-19 pandemic behind them", said Lucinda ("Cindy") Baier,
Brookdale's President and CEO. "We recognized early the critically
important role vaccines would play in the recovery, and we
successfully advocated for priority vaccine access for those in our
communities and across our industry. Brookdale's resident vaccine
acceptance rate is 93% and we are pleased to continue helping
seniors to live meaningful and joyful lives. We expect to see
positive occupancy momentum in the coming months and believe we are
making progress on our path to recovery."
SUMMARY OF FIRST QUARTER RESULTS
Consolidated
The table below presents a summary of consolidated operating
results.
|
|
Year-Over-Year
Increase /
(Decrease)
|
|
|
Sequential
Increase /
(Decrease)
|
($ in
millions)
|
1Q
2021
|
1Q
2020
|
Amount
|
Percent
|
|
4Q
2020
|
Amount
|
Percent
|
Resident fee
revenue
|
$
|
664.4
|
|
$
|
782.7
|
|
$
|
(118.3)
|
(15.1)%
|
|
$
|
677.5
|
|
$
|
(13.1)
|
(1.9)%
|
Management fee
revenue
|
8.6
|
|
108.7
|
|
(100.1)
|
(92.1)%
|
|
10.2
|
|
(1.6)
|
(15.7)%
|
Other operating
income
|
10.7
|
|
—
|
|
10.7
|
NM
|
|
78.3
|
|
(67.6)
|
(86.3)%
|
Facility operating
expense
|
556.3
|
|
588.5
|
|
(32.2)
|
(5.5)%
|
|
576.8
|
|
(20.5)
|
(3.6)%
|
General and
administrative expense
|
49.9
|
|
54.6
|
|
(4.7)
|
(8.6)%
|
|
45.3
|
|
4.6
|
10.2%
|
Net income
(loss)
|
(108.3)
|
|
369.5
|
|
477.8
|
NM
|
|
(44.1)
|
|
(64.2)
|
(145.6)%
|
Adjusted EBITDA
(1)
|
35.0
|
|
185.1
|
|
(150.1)
|
(81.1)%
|
|
98.6
|
|
(63.6)
|
(64.5)%
|
Adjusted EBITDA,
excluding $100.0 million
management termination fee in 1Q 2020
|
35.0
|
|
85.1
|
|
(50.1)
|
(58.9)%
|
|
98.6
|
|
(63.6)
|
(64.5)%
|
|
|
(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.
-
- 1Q 2021 vs 1Q 2020:
-
- Consolidated RevPAR decreased $598, or 14.1%, to $3,631 as a result of a decrease in consolidated
weighted average occupancy of 1,360 basis points to 69.6%, offset
by an increase in consolidated RevPOR of $134, or 2.6%, to $5,219.
- The disposition of 13 communities through sales and conveyances
of owned communities and lease terminations since the beginning of
the first quarter of 2020 resulted in $15.3
million less in resident fees during the first quarter of
2021 compared to the first quarter of 2020.
- 1Q 2021 vs 4Q 2020:
-
- Consolidated RevPAR decreased $42, or 1.1%, to $3,631 as a result of a decrease in consolidated
weighted average occupancy of 310 basis points to 69.6%, offset by
an increase in consolidated RevPOR of $167, or 3.3%, to $5,219.
- Consolidated senior housing occupancy was 70.6% as of
March 31, 2021 compared to 71.5% as
of December 31, 2020.
- The Company estimates that the COVID-19 pandemic resulted in
$117.5 million, $120.1 million, and $5.8
million of lost resident fee revenue for the first quarter
of 2021, fourth quarter of 2020, and first 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-COVID-19 expectations for the 2020
period.
- Management fee revenue.
-
- 1Q 2021 vs 1Q 2020: The decrease was primarily due to
$100.0 million of management
termination fees recognized for the first quarter of 2020 for the
management agreement termination fee payment received from
Healthpeak Properties, Inc. ("Healthpeak") in connection with the
sale of the Company's ownership interest in the entry fee CCRC
venture ("CCRC Venture").
- 1Q 2021 vs 4Q 2020: The decrease was primarily due to
the transition of management arrangements on 29 net communities
since October 1, 2020 for management
arrangements on certain former unconsolidated ventures in which the
Company sold its interest. The Company received an $8.6 million management agreement termination fee
payment during the fourth quarter of 2020, of which $5.0 million of management fee revenue was
recognized during the fourth quarter of 2020 and $3.6 million was recognized in the first quarter
of 2021. An additional $1.0 million
management agreement termination fee was received and recognized in
the first quarter of 2021.
- Other operating income.
-
- The Company recognized $9.0
million of employee retention credits and $1.7 million from government grants as other
operating income during the first quarter of 2021, compared to
$74.9 million of grants from the
Provider Relief Fund and $3.4 million
from other government grants as other operating income during the
fourth quarter of 2020.
- Facility operating expense.
-
- 1Q 2021 vs 1Q 2020:
-
- Facility operating expense decreased $32.2 million, or 5.5%, primarily due to a
decrease in labor costs for home health services as a result of the
lower census and as the Company adjusted its home health services
operational structure to better align its facility operating
expenses and business model with the new Patient-Driven Grouping
Model ("PDGM").
- The disposition of communities resulted in $13.6 million less in facility operating expenses
during the first quarter of 2021 compared to the first quarter of
2020.
- 1Q 2021 vs 4Q 2020: Facility operating expense decreased
$20.5 million, or 3.6%, primarily due
to a decrease in costs as a result of fewer days of expense during
the first quarter of 2021.
- The Company incurred $27.3
million, $30.5 million, and
$10.0 million of incremental direct
costs during the first quarter of 2021, fourth quarter of 2020, and
first 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.
-
- 1Q 2021 vs 1Q 2020: The decrease in general and
administrative expense was primarily attributable to a reduction in
the Company's corporate headcount, as it scaled its general and
administrative costs in connection with community dispositions and
a reduction in the Company's travel costs due to the pandemic.
- 1Q 2021 vs 4Q 2020: The increase in general and
administrative expense was primarily attributable to an increase in
incentive compensation costs and non-cash stock-based compensation
expense.
- Net income (loss).
-
- 1Q 2021 vs 1Q 2020: The change in net income (loss) was
primarily attributable to a $371.7
million decrease in net gain on sale of assets, primarily
resulting from the sale of the Company's interest in the entrance
fee CCRC venture during the first quarter of 2020, as well as the
net impact of the revenue, other operating income, and facility
operating expense factors previously discussed, partially offset by
a $67.5 million decrease in asset
impairment expense.
- 1Q 2021 vs 4Q 2020: The decrease in net loss was
primarily attributable to the net impact of the revenue, other
operating income, and facility operating expense factors previously
discussed.
- Adjusted EBITDA.
-
- 1Q 2021 vs 1Q 2020: The decrease in Adjusted EBITDA was
primarily attributable to the net impact of the revenue (including
the $100.0 million management
termination fee payment received from Healthpeak), other operating
income, and facility operating expense factors previously
discussed, partially offset by a $22.1
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, and the decrease in
general and administrative expense.
- 1Q 2021 vs 4Q 2020: The decrease in Adjusted EBITDA was
primarily attributable to the net impact of the revenue, other
operating income, and facility operating expense factors previously
discussed.
- COVID-19 Impact.
-
- Vaccine Clinics Completed. The Company elected to work
with CVS Health Corporation ("CVS") to administer vaccinations on
site to its residents and associates through the Pharmacy
Partnership for Long-Term Care Program offered through the U.S.
Centers for Disease Control and Prevention ("CDC"). The Company
hosted its first clinics on December 18,
2020 and had completed at least three vaccine clinics at all
of its communities by April 9, 2021.
Through April 30, 2021, our resident
vaccine acceptance rate was 93%, and our COVID-19 positive resident
caseload had decreased by 97% since the peak in mid-December 2020.
- Community Restrictions. During the first quarter, the
Company continued evaluating restrictions on its communities on a
community-by-community basis, including based on regulatory
requirements and guidance, completion of baseline testing at the
community, and the presence of current confirmed COVID-19 positive
cases. The Company may revert to more restrictive measures if the
pandemic worsens, as necessary to comply with regulatory
requirements, or at the direction of state or local health
authorities. As of December 31, 2020,
89% of the Company's communities were accepting new move-ins. With
lower caseloads, restrictions on visits have been relaxed, and as
of April 30, 2021, 100% of the
Company's communities have opened for visitors and new
prospects.
- Occupancy. In the Company's consolidated seniors housing
portfolio, net move-ins and move-outs turned positive in
March 2021 for the first time since
the pandemic began. Move-ins increased sequentially each month
during the first quarter of 2021 and increased 29% for the first
quarter of 2021 compared to the fourth quarter of 2020. The
Company's consolidated senior housing portfolio's weighted average
occupancy decreased 310 basis points for the first quarter of 2021
from the fourth quarter of 2020. Weighted average occupancy for
March 2021 increased slightly
sequentially and for April 2021
increased 50 basis points sequentially, after having declined
sequentially each month from March
2020 through February 2021.
The table below sets forth the Company's consolidated occupancy
trend during the pandemic.
|
Mar
2020
|
Apr
2020
|
May
2020
|
Jun
2020
|
Jul
2020
|
Aug
2020
|
Sep
2020
|
Oct
2020
|
Nov
2020
|
Dec
2020
|
Jan
2021
|
Feb
2021
|
Mar
2021
|
Apr
2021
|
Weighted average
occupancy
|
82.7
|
%
|
80.4
|
%
|
78.4
|
%
|
77.4
|
%
|
76.4
|
%
|
75.2
|
%
|
74.3
|
%
|
73.8
|
%
|
72.8
|
%
|
71.5
|
%
|
70.0
|
%
|
69.4
|
%
|
69.4
|
%
|
69.9
|
%
|
Month-end
occupancy
|
82.2
|
%
|
80.0
|
%
|
78.5
|
%
|
77.8
|
%
|
76.6
|
%
|
75.5
|
%
|
75.0
|
%
|
74.1
|
%
|
73.1
|
%
|
71.5
|
%
|
70.4
|
%
|
70.1
|
%
|
70.6
|
%
|
71.1
|
%
|
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)
|
1Q
2021
|
1Q
2020
|
Amount
|
Percent
|
4Q
2020
|
Amount
|
Percent
|
RevPAR
|
$
|
3,643
|
$
|
4,249
|
$
|
(606)
|
(14.3)%
|
$
|
3,693
|
$
|
(50)
|
(1.4)%
|
Weighted average
occupancy
|
69.5%
|
83.4%
|
(1,390) bps
|
n/a
|
72.7%
|
(320) bps
|
n/a
|
RevPOR
|
$
|
5,244
|
$
|
5,097
|
$
|
147
|
2.9%
|
$
|
5,076
|
$
|
168
|
3.3%
|
Facility operating
expense
|
$
|
446.3
|
$
|
450.7
|
$
|
(4.4)
|
(1.0)%
|
$
|
458.8
|
$
|
(12.5)
|
(2.7)%
|
|
|
(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 (i) natural disaster expense of $1.1 million,
natural disaster-related insurance recoveries of $1.4 million, and
natural disaster expense of $1.6 million for the first quarter of
2021, the first quarter of 2020, and the fourth quarter of 2020,
respectively. As presented herein, same community facility
operating expense includes the direct costs incurred to respond to
the COVID-19 pandemic.
|
- Resident fees.
-
- 1Q 2021 vs 1Q 2020: Same community resident fees
decreased $91.8 million to
$551.5 million attributable to the
decrease in occupancy, partially offset by the increase in
RevPOR.
- 1Q 2021 vs 4Q 2020: Same community resident fees
decreased $7.4 million to
$551.5 million attributable to the
decrease in occupancy, partially offset by the increase in
RevPOR.
- The Company estimates that the COVID-19 pandemic resulted in
$91.2 million, $99.2 million, and $1.4
million of lost resident fee revenue for the Company's
consolidated same community senior housing portfolio for the first
quarter of 2021, fourth quarter of 2020, and first quarter of 2020,
respectively.
- Facility operating expense.
-
- 1Q 2021 vs 1Q 2020: The year-over-year decrease was
primarily due to decreases in food and supplies costs due to
reduced occupancy during the period, partially offset by an
increase in labor costs.
- 1Q 2021 vs 4Q 2020: The decrease was primarily due to a
decrease in costs as a result of fewer days of expense during the
first quarter of 2021.
- The Company's consolidated same community senior housing
portfolio incurred $25.2 million,
$26.5 million, and $9.1 million of incremental direct costs during
the first quarter of 2021, fourth quarter of 2020, and first
quarter of 2020, respectively, to respond to the COVID-19
pandemic.
Health Care Services
|
|
Year-Over-Year
Increase /
(Decrease)
|
|
Sequential
Increase /
(Decrease)
|
($ in
millions)
|
1Q
2021
|
1Q
2020
|
Amount
|
Percent
|
4Q
2020
|
Amount
|
Percent
|
Resident fee
revenue
|
$
|
86.9
|
|
$
|
94.8
|
|
$
|
(7.9)
|
|
(8.3)
|
%
|
$
|
91.9
|
|
$
|
(5.0)
|
|
(5.4)
|
%
|
Facility operating
expense
|
87.0
|
|
103.9
|
|
(16.9)
|
|
(16.3)
|
%
|
92.1
|
|
(5.1)
|
|
(5.5)
|
%
|
- Resident fee revenue.
-
- 1Q 2021 vs 1Q 2020: Health Care Services revenue
decreased primarily due to a decline of 16.9% in home health
average daily census primarily as a result of the pandemic and
lower occupancy in the Company's communities.
- 1Q 2021 vs 4Q 2020: Health Care Services revenue
decreased primarily due to a decline of 7.9% in home health average
daily census primarily as a result of the pandemic and lower
occupancy in the Company's communities and the severe winter storm
in Texas.
- The Company estimates that the COVID-19 pandemic resulted in
$23.3 million, $19.6 million, and $3.1
million of lost resident fee revenue for its Health Care
Services segment for the first quarter of 2021, fourth quarter of
2020, and first quarter of 2020, respectively.
- Facility operating expense.
-
- 1Q 2021 vs 1Q 2020: The decrease in facility operating
expense was primarily attributable to a decrease in labor costs for
home health services as a result of the lower census and as the
Company adjusted its home health services operational structure, to
better align its facility operating expenses and business model in
connection with PDGM.
- 1Q 2021 vs 4Q 2020: The decrease in facility operating
expense was primarily attributable to a decrease in labor costs for
home health services as a result of the lower census and due to a
decrease in costs as a result of fewer days of expense during the
first quarter of 2021.
- The Health Care Services segment incurred $1.4 million, $2.3
million, and $0.4 million of
incremental direct costs during the first quarter of 2021, fourth
quarter of 2020, and first quarter of 2020, respectively, to
respond to the COVID-19 pandemic.
LIQUIDITY
The table below presents a summary of the Company's net cash
provided by (used in) operating activities and Adjusted Free Cash
Flow.
($ in
millions)
|
1Q
2021
|
1Q
2020
|
Year-Over-
Year Increase /
(Decrease)
|
4Q
2020
|
Sequential
Increase /
(Decrease)
|
Net cash provided by
(used in) operating activities
|
$
|
(23.9)
|
|
$
|
57.5
|
|
$
|
(81.4)
|
|
$
|
73.5
|
|
$
|
(97.4)
|
|
Adjusted Free Cash
Flow (3)
|
(50.7)
|
|
5.2
|
|
(55.9)
|
|
19.9
|
|
(70.6)
|
|
|
|
(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.
-
- 1Q 2021 vs 1Q 2020: The change in net cash provided by
(used in) operating activities was attributable primarily to the
$100.0 million management agreement
termination fee payment received from Healthpeak in connection with
the sale of the Company's ownership interest in the CCRC Venture in
the prior year period and a decrease in same community revenue
compared to the prior year period. These changes were partially
offset by a decrease in cash payments for accounts payable and
accrued expenses compared to the prior year period.
- 1Q 2021 vs 4Q 2020: The change in net cash provided by
(used in) operating activities was primarily attributable to a
decrease in government grants accepted compared to the prior year
period.
- Adjusted Free Cash Flow.
-
- 1Q 2021 vs 1Q 2020: The $55.9
million decrease in Adjusted Free Cash Flow was attributable
to the change in net cash provided by operating activities,
partially offset by a $33.1 million
decrease in non-development capital expenditures, net.
- 1Q 2021 vs 4Q 2020: The $70.6
million decrease in Adjusted Free Cash Flow was attributable
to the change in net cash provided by operating activities,
excluding $18.8 million of changes in
prepaid insurance premiums financed with notes payable, partially
offset by a $7.2 million decrease in
non-development capital expenditures, net.
- Total Liquidity. Total liquidity of $438.9 million as of March
31, 2021 included $304.0
million of unrestricted cash and cash equivalents and
$134.9 million of marketable
securities. Total liquidity as of March 31,
2021 decreased $136.6 million
from December 31, 2020, primarily
attributable to the negative $50.7
million of Adjusted Free Cash Flow and $38.3 million of payments of mortgage debt during
the first quarter of 2021. The current portion of long-term debt as
of March 31, 2021 was $224.9 million, which primarily includes
$172.6 million of non-recourse
mortgage debt maturing in the first quarter of 2022. The Company
has no remaining non-recourse mortgage debt maturities in
2021.
TRANSACTION UPDATE
- Health Care Services segment: On February 24, 2021, the Company entered into a
Securities Purchase Agreement (the "Purchase Agreement") with
affiliates of HCA Healthcare, Inc., providing for the sale of 80%
of the Company's equity in its Health Care Services segment for a
purchase price of $400 million in
cash, subject to certain adjustments set forth in the Purchase
Agreement, including a reduction for the remaining outstanding
balance as of the closing of Medicare advanced payments and
deferred payroll tax payments related to the Health Care Services
segment, which were $75.2 million and
$8.9 million, respectively, as of
March 31, 2021. The closing of the
sale transaction is anticipated to occur in the early second half
of 2021, subject to receipt of applicable regulatory approvals and
satisfaction of other customary closing conditions set forth in the
Purchase Agreement. Pursuant to the Purchase Agreement, at closing
of the transaction, the Company will retain a 20% equity interest
in the business. There can be no assurance that the transaction
will close or, if it does, when the actual closing will occur.
OUTLOOK
Key factors that may impact the Company's financial performance
and liquidity for 2021 include:
- Senior Housing Occupancy: With sequential occupancy growth in
March, the Company expects, on a sequential basis, growth in the
second quarter and stronger growth in the third quarter of 2021.
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.
- Pandemic-related Expenses: With significantly lower COVID-19
cases, the Company expects to reduce pandemic-related expenses more
than 50% in the second quarter, compared to the $27.3 million reported in the first quarter of
2021.
- 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, excluding Health Care Services segment repayments
impacted by the transaction described above:
-
- 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 $6 million of advanced
payments related to the CCRCs segment during 2021, beginning in the
second quarter.
SUPPLEMENTAL INFORMATION
The Company will post on its website at
www.brookdale.com/investor supplemental information relating to the
Company's first 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 first quarter 2021 on May 7,
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.brookdale.com/investor. 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 will be
available until 11:59 PM ET on
May 14, 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 "7695118".
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 695 communities in 42 states as of March 31, 2021, with the ability to serve
approximately 60,000 residents and 16,000 patients. 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 or Twitter.
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 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, the impact of COVID-19 on
the Company's ability to complete financings, refinancings, or
other transactions (including dispositions and the Company's
pending Health Care Services transaction) 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
(including the Company's pending Health Care Services transaction)
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
March
31,
|
(in thousands,
except per share data)
|
2021
|
|
2020
|
Revenue
|
|
|
|
Resident
fees
|
$
|
664,350
|
|
|
$
|
782,707
|
|
Management
fees
|
8,566
|
|
|
108,715
|
|
Reimbursed costs
incurred on behalf of managed communities
|
65,794
|
|
|
122,717
|
|
Other operating
income
|
10,735
|
|
|
—
|
|
Total revenue and
other operating income
|
749,445
|
|
|
1,014,139
|
|
|
|
|
|
Expense
|
|
|
|
Facility operating
expense (excluding facility depreciation and amortization of
$77,274 and
$84,301, respectively)
|
556,312
|
|
|
588,482
|
|
General and
administrative expense (including non-cash stock-based compensation
expense of $4,783
and $5,957, respectively)
|
49,943
|
|
|
54,595
|
|
Facility operating
lease expense
|
44,418
|
|
|
64,481
|
|
Depreciation and
amortization
|
83,891
|
|
|
90,738
|
|
Asset
impairment
|
10,677
|
|
|
78,226
|
|
Costs incurred on
behalf of managed communities
|
65,794
|
|
|
122,717
|
|
Total operating
expense
|
811,035
|
|
|
999,239
|
|
Income (loss) from
operations
|
(61,590)
|
|
|
14,900
|
|
|
|
|
|
Interest
income
|
421
|
|
|
1,455
|
|
Interest
expense:
|
|
|
|
Debt
|
(35,351)
|
|
|
(41,763)
|
|
Financing lease
obligations
|
(11,383)
|
|
|
(13,282)
|
|
Amortization of
deferred financing costs and debt discount
|
(1,873)
|
|
|
(1,315)
|
|
Gain (loss) on debt
modification and extinguishment, net
|
—
|
|
|
19,181
|
|
Equity in earnings
(loss) of unconsolidated ventures
|
(531)
|
|
|
(1,008)
|
|
Gain (loss) on sale
of assets, net
|
1,112
|
|
|
372,839
|
|
Other non-operating
income (loss)
|
1,644
|
|
|
2,662
|
|
Income (loss) before
income taxes
|
(107,551)
|
|
|
353,669
|
|
Benefit (provision)
for income taxes
|
(752)
|
|
|
15,828
|
|
Net income
(loss)
|
(108,303)
|
|
|
369,497
|
|
Net (income) loss
attributable to noncontrolling interest
|
18
|
|
|
18
|
|
Net income (loss)
attributable to Brookdale Senior Living Inc. common
stockholders
|
$
|
(108,285)
|
|
|
$
|
369,515
|
|
|
|
|
|
Net income (loss) per
share attributable to Brookdale Senior Living Inc. common
stockholders:
|
|
|
|
Basic
|
$
|
(0.59)
|
|
|
$
|
2.01
|
|
Diluted
|
$
|
(0.59)
|
|
|
$
|
2.00
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
Basic
|
184,011
|
|
|
184,186
|
|
Diluted
|
184,011
|
|
|
184,522
|
|
Condensed
Consolidated Balance Sheets
|
|
(in
thousands)
|
March 31,
2021
|
|
December 31,
2020
|
Cash and cash
equivalents
|
$
|
303,952
|
|
|
$
|
380,420
|
|
Marketable
securities
|
134,933
|
|
|
172,905
|
|
Restricted
cash
|
26,503
|
|
|
28,059
|
|
Accounts receivable,
net
|
52,588
|
|
|
109,221
|
|
Assets held for
sale
|
247,627
|
|
|
16,061
|
|
Prepaid expenses and
other current assets, net
|
90,949
|
|
|
66,937
|
|
Total current
assets
|
856,552
|
|
|
773,603
|
|
Property, plant and
equipment and leasehold intangibles, net
|
5,018,409
|
|
|
5,068,060
|
|
Operating lease
right-of-use assets
|
743,346
|
|
|
788,138
|
|
Other assets,
net
|
127,846
|
|
|
271,957
|
|
Total
assets
|
$
|
6,746,153
|
|
|
$
|
6,901,758
|
|
|
|
|
|
Current portion of
long-term debt
|
$
|
224,890
|
|
|
$
|
68,885
|
|
Current portion of
financing lease obligations
|
20,083
|
|
|
19,543
|
|
Current portion of
operating lease obligations
|
140,339
|
|
|
146,226
|
|
Liabilities held for
sale
|
116,142
|
|
|
—
|
|
Other current
liabilities
|
397,508
|
|
|
456,079
|
|
Total current
liabilities
|
898,962
|
|
|
690,733
|
|
Long-term debt, less
current portion
|
3,664,901
|
|
|
3,847,103
|
|
Financing lease
obligations, less current portion
|
539,071
|
|
|
543,764
|
|
Operating lease
obligations, less current portion
|
797,311
|
|
|
819,429
|
|
Other
liabilities
|
150,801
|
|
|
198,000
|
|
Total
liabilities
|
6,051,046
|
|
|
6,099,029
|
|
Total Brookdale
Senior Living Inc. stockholders' equity
|
692,830
|
|
|
800,434
|
|
Noncontrolling
interest
|
2,277
|
|
|
2,295
|
|
Total
equity
|
695,107
|
|
|
802,729
|
|
Total liabilities and
equity
|
$
|
6,746,153
|
|
|
$
|
6,901,758
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
Three Months Ended
March 31,
|
(in
thousands)
|
2021
|
|
2020
|
Cash Flows from
Operating Activities
|
|
|
|
Net income
(loss)
|
$
|
(108,303)
|
|
|
$
|
369,497
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating
activities:
|
|
|
|
Loss (gain) on debt
modification and extinguishment, net
|
—
|
|
|
(19,181)
|
|
Depreciation and
amortization, net
|
85,764
|
|
|
92,053
|
|
Asset
impairment
|
10,677
|
|
|
78,226
|
|
Equity in (earnings)
loss of unconsolidated ventures
|
531
|
|
|
1,008
|
|
Amortization of
entrance fees
|
(364)
|
|
|
(377)
|
|
Proceeds from deferred
entrance fee revenue
|
670
|
|
|
343
|
|
Deferred income tax
(benefit) provision
|
319
|
|
|
(21,767)
|
|
Operating lease
expense adjustment
|
(4,664)
|
|
|
(6,733)
|
|
Loss (gain) on sale of
assets, net
|
(1,112)
|
|
|
(372,839)
|
|
Non-cash stock-based
compensation expense
|
4,783
|
|
|
5,957
|
|
Other
|
(1,416)
|
|
|
(1,460)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
(5,768)
|
|
|
(2,033)
|
|
Prepaid expenses and
other assets, net
|
(6,769)
|
|
|
(1,696)
|
|
Prepaid insurance
premiums financed with notes payable
|
(12,985)
|
|
|
(17,434)
|
|
Trade accounts payable
and accrued expenses
|
(500)
|
|
|
(47,919)
|
|
Refundable fees and
deferred revenue
|
7,717
|
|
|
(2,254)
|
|
Operating lease assets
and liabilities for lessor capital expenditure
reimbursements
|
7,563
|
|
|
4,088
|
|
Net cash
provided by (used in) operating activities
|
(23,857)
|
|
|
57,479
|
|
Cash Flows from
Investing Activities
|
|
|
|
Change in lease
security deposits and lease acquisition deposits, net
|
(62)
|
|
|
3,211
|
|
Purchase of marketable
securities
|
(79,932)
|
|
|
(89,414)
|
|
Sale and maturities of
marketable securities
|
117,995
|
|
|
50,000
|
|
Capital expenditures,
net of related payables
|
(40,361)
|
|
|
(69,385)
|
|
Acquisition of assets,
net of related payables and cash received
|
—
|
|
|
(446,688)
|
|
Investment in
unconsolidated ventures
|
(5,206)
|
|
|
(268)
|
|
Proceeds from sale of
assets, net
|
3,760
|
|
|
304,617
|
|
Net cash
provided by (used in) investing activities
|
(3,806)
|
|
|
(247,927)
|
|
Cash Flows from
Financing Activities
|
|
|
|
Proceeds from
debt
|
18,575
|
|
|
471,785
|
|
Repayment of debt and
financing lease obligations
|
(49,924)
|
|
|
(263,226)
|
|
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
|
(87)
|
|
|
(5,815)
|
|
Payments of employee
taxes for withheld shares
|
(4,329)
|
|
|
(3,898)
|
|
Other
|
203
|
|
|
146
|
|
Net cash
provided by (used in) financing activities
|
(35,562)
|
|
|
347,250
|
|
Net increase
(decrease) in cash, cash equivalents, and restricted
cash
|
(63,225)
|
|
|
156,802
|
|
Cash, cash
equivalents, and restricted cash at beginning of period
|
465,148
|
|
|
301,697
|
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
|
401,923
|
|
|
$
|
458,499
|
|
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)
|
March 31,
2021
|
|
December 31,
2020
|
|
March 31,
2020
|
Net income
(loss)
|
$
|
(108,303)
|
|
|
$
|
(44,139)
|
|
|
$
|
369,497
|
|
Provision (benefit)
for income taxes
|
752
|
|
|
(2,208)
|
|
|
(15,828)
|
|
Equity in (earnings)
loss of unconsolidated ventures
|
531
|
|
|
1,244
|
|
|
1,008
|
|
Loss (gain) on debt
modification and extinguishment, net
|
—
|
|
|
211
|
|
|
(19,181)
|
|
Loss (gain) on sale
of assets, net
|
(1,112)
|
|
|
(513)
|
|
|
(372,839)
|
|
Other non-operating
(income) loss
|
(1,644)
|
|
|
(1,050)
|
|
|
(2,662)
|
|
Interest
expense
|
48,607
|
|
|
49,451
|
|
|
56,360
|
|
Interest
income
|
(421)
|
|
|
(494)
|
|
|
(1,455)
|
|
Income (loss) from
operations
|
(61,590)
|
|
|
2,502
|
|
|
14,900
|
|
Depreciation and
amortization
|
83,891
|
|
|
87,513
|
|
|
90,738
|
|
Asset
impairment
|
10,677
|
|
|
10,579
|
|
|
78,226
|
|
Loss (gain) on
facility lease termination and modification,
net
|
—
|
|
|
(2,303)
|
|
|
—
|
|
Operating lease
expense adjustment
|
(4,664)
|
|
|
(4,000)
|
|
|
(6,733)
|
|
Non-cash stock-based
compensation expense
|
4,783
|
|
|
2,535
|
|
|
5,957
|
|
Transaction and
organizational restructuring costs
|
1,884
|
|
|
1,778
|
|
|
1,981
|
|
Adjusted
EBITDA(1)
|
$
|
34,981
|
|
|
$
|
98,604
|
|
|
$
|
185,069
|
|
$100.0 million
management termination fee
|
—
|
|
|
—
|
|
|
(100,000)
|
|
Adjusted EBITDA,
excluding $100.0 million management
termination fee
|
$
|
34,981
|
|
|
$
|
98,604
|
|
|
$
|
85,069
|
|
|
|
(1)
|
Adjusted EBITDA
includes:
|
|
- $10.7 million and $78.3 million benefit for
the three months ended March 31, 2021 and December 31, 2020,
respectively, of Provider Relief Funds and other government grants
and credits recognized in other operating income
- $100.0 million benefit for the three months
ended March 31, 2020 for the management agreement termination fee
payment received from Healthpeak in connection with the sale of the
Company's ownership interest in the CCRC Venture
|
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)
|
March 31,
2021
|
|
December 31,
2020
|
|
March 31,
2020
|
Net cash provided
by (used in) operating activities
|
$
|
(23,857)
|
|
|
$
|
73,499
|
|
|
$
|
57,479
|
|
Net cash provided by
(used in) investing activities
|
(3,806)
|
|
|
(81,147)
|
|
|
(247,927)
|
|
Net cash provided by
(used in) financing activities
|
(35,562)
|
|
|
(20,279)
|
|
|
347,250
|
|
Net increase
(decrease) in cash, cash equivalents, and
restricted cash
|
$
|
(63,225)
|
|
|
$
|
(27,927)
|
|
|
$
|
156,802
|
|
|
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
$
|
(23,857)
|
|
|
$
|
73,499
|
|
|
$
|
57,479
|
|
Changes in prepaid
insurance premiums financed with notes
payable
|
12,985
|
|
|
(5,823)
|
|
|
17,434
|
|
Changes in assets and
liabilities for lessor capital expenditure
reimbursements under operating leases
|
(7,563)
|
|
|
(8,602)
|
|
|
(4,088)
|
|
Non-development
capital expenditures, net
|
(27,450)
|
|
|
(34,643)
|
|
|
(60,556)
|
|
Payment of financing
lease obligations
|
(4,789)
|
|
|
(4,556)
|
|
|
(5,087)
|
|
Adjusted Free Cash
Flow (1)
|
$
|
(50,674)
|
|
|
$
|
19,875
|
|
|
$
|
5,182
|
|
|
|
(1)
|
Adjusted Free Cash
Flow includes transaction and organizational restructuring costs of
$1.9 million, $1.8 million, and $2.0 million for the three months
ended March 31, 2021, December 31, 2020, and March 31,
2020, respectively. Additionally, Adjusted Free Cash Flow
includes:
|
|
- $1.7 million benefit for the three months
ended March 31, 2021 from Provider Relief Funds and other
government grants accepted
- $77.2 million benefit for the three months
ended December 31, 2020 from Provider Relief Funds and other
government grants accepted
- $22.6 million benefit for the three months
ended December 31, 2020 from payroll taxes deferred
- $100.0 million benefit for the three months
ended March 31, 2020 for the management agreement termination fee
payment received from Healthpeak in connection with the sale of the
Company's ownership interest in the CCRC Venture
|
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SOURCE Brookdale Senior Living Inc.