Exhibit 99.2
Brookdale Senior Living Inc. | |||||||
Corporate Overview - selected financial information | |||||||
As of March 31, 2015 |
Corporate Overview |
Brookdale Senior Living Inc. ("Brookdale") is the leading operator of senior living communities throughout the United States. The Company is committed to providing senior living solutions primarily within properties that are designed, purpose-built and operated to provide the highest quality service, care and living accommodations for residents. As of March 31, 2015, the Company operates independent living, assisted living and dementia-care communities and continuing care retirement centers ("CCRCs"), with 1,141 communities in 46 states and the ability to serve approximately 111,000 residents. Through its ancillary services program, the Company also offers a range of outpatient therapy, home health, personalized living and hospice services. |
Stock Listing |
Common Stock | |||||||||
NYSE: BKD |
Community Information |
Ownership Type | Number of Communities | Number of Units | Percentage of Q1 2015 Resident and Management Fees | Percentage of Q1 2015 Facility Operating Income | ||||||||||||
Owned | 422 | 37,116 | 38.7 | % | 36.7 | % | ||||||||||
Leased | 559 | 46,004 | 49.1 | % | 53.0 | % | ||||||||||
Brookdale Ancillary Services | N/A | N/A | 10.8 | % | 6.2 | % | ||||||||||
Managed | 160 | 27,458 | 1.4 | % | 4.1 | % | ||||||||||
Total | 1,141 | 110,578 | 100.0 | % | 100.0 | % | ||||||||||
Operating Type - By Segment | ||||||||||||||||
Retirement Centers | 99 | 17,423 | 15.3 | % | 19.0 | % | ||||||||||
Assisted Living | 837 | 55,115 | 57.9 | % | 60.3 | % | ||||||||||
CCRCs - Rental | 45 | 10,582 | 14.6 | % | 10.4 | % | ||||||||||
Brookdale Ancillary Services | N/A | N/A | 10.8 | % | 6.2 | % | ||||||||||
Management Services | 160 | 27,458 | 1.4 | % | 4.1 | % | ||||||||||
Total | 1,141 | 110,578 | 100.0 | % | 100.0 | % |
CFFO Per Share |
($ except where indicated) | FY 2014 | FY 2015 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year(2) | Q1 | |||||||||||||||||||
Reported CFFO | $ | 0.54 | $ | 0.61 | $ | 0.14 | $ | 0.28 | $ | 1.57 | $ | 0.48 | ||||||||||||
Add: integration, transaction-related and EMR roll-out costs (1) | 0.10 | 0.10 | 0.49 | 0.25 | 0.94 | 0.15 | ||||||||||||||||||
Adjusted CFFO | $ | 0.64 | $ | 0.71 | $ | 0.63 | $ | 0.53 | $ | 2.51 | $ | 0.63 | ||||||||||||
Weighted average shares (000's) | 124,478 | 125,058 | 159,003 | 183,432 | 183,678 | |||||||||||||||||||
Period end outstanding shares (excluding unvested restricted shares) (000's) | 124,816 | 125,408 | 183,410 | 183,486 | 184,143 |
(1) Integration, transaction-related and EMR roll-out costs include third party expenses directly related to the integration of Emeritus and corporate capital structure assessment activities (including shareholder relations advisory matters), as well as internal costs such as labor reflecting time spent by Company personnel on integration and transaction-related activity. Transaction costs include third party costs directly related to the acquisition of Emeritus and other acquisition and community leasing activity and are primarily comprised of legal, finance, consulting, professional fees and other third party costs. | |||||||||
(2) Full year CFFO for all periods is calculated as the sum of the quarterly amounts for the year. |
Investor Relations |
Ross Roadman | |||||||||
SVP, Investor Relations | |||||||||
Brookdale Senior Living Inc. | |||||||||
111 Westwood Place, Suite 400 | |||||||||
Brentwood, TN 37027 | |||||||||
Phone (615) 564-8104 | |||||||||
rroadman@brookdale.com | |||||||||
Note: See accompanying first quarter earnings release for non-GAAP financial measure definitions and reconciliations. |
1
Brookdale Senior Living Inc. | |||||||
Segment Financial Data | |||||||
As of March 31, 2015 |
Financial Data and Operating Information |
($ in 000s, except Senior Housing average monthly revenue per unit) |
Retirement Centers | FY 2014 (1) (2) | FY 2015 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | |||||||||||||||||||
Revenue | 132,349 | 133,441 | 155,227 | 161,295 | 582,312 | 163,486 | ||||||||||||||||||
Expenses | 76,119 | 76,550 | 88,022 | 92,738 | 333,429 | 94,077 | ||||||||||||||||||
Segment Operating Income | 56,230 | 56,891 | 67,205 | 68,557 | 248,883 | 69,409 | ||||||||||||||||||
Segment Operating Margin | 42.5 | % | 42.6 | % | 43.3 | % | 42.5 | % | 42.7 | % | 42.5 | % | ||||||||||||
Number of communities (period end) | 74 | 74 | 100 | 99 | 99 | 99 | ||||||||||||||||||
Total average units(4) | 14,161 | 14,162 | 16,594 | 17,315 | 15,558 | 17,369 | ||||||||||||||||||
Weighted average unit occupancy | 89.3 | % | 88.9 | % | 89.8 | % | 89.9 | % | 89.5 | % | 88.8 | % | ||||||||||||
Senior Housing average monthly revenue per unit(5) | $ | 3,490 | $ | 3,532 | $ | 3,472 | $ | 3,454 | $ | 3,485 | $ | 3,533 | ||||||||||||
Assisted Living | FY 2014 (2) | FY 2015 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | |||||||||||||||||||
Revenue | 277,431 | 277,230 | 516,640 | 614,262 | 1,685,563 | 617,344 | ||||||||||||||||||
Expenses | 172,439 | 172,984 | 328,486 | 403,165 | 1,077,074 | 397,361 | ||||||||||||||||||
Segment Operating Income | 104,992 | 104,246 | 188,154 | 211,097 | 608,489 | 219,983 | ||||||||||||||||||
Segment Operating Margin | 37.8 | % | 37.6 | % | 36.4 | % | 34.4 | % | 36.1 | % | 35.6 | % | ||||||||||||
Number of communities (period end) | 440 | 440 | 841 | 838 | 838 | 837 | ||||||||||||||||||
Total average units(4) | 22,435 | 22,463 | 45,260 | 55,241 | 36,350 | 55,073 | ||||||||||||||||||
Weighted average unit occupancy | 89.6 | % | 89.0 | % | 88.8 | % | 88.2 | % | 88.7 | % | 87.2 | % | ||||||||||||
Senior Housing average monthly revenue per unit(5) | $ | 4,599 | $ | 4,622 | $ | 4,286 | $ | 4,203 | $ | 4,356 | $ | 4,283 | ||||||||||||
CCRCs - Rental | FY 2014 (1) (2) (3) | FY 2015 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | |||||||||||||||||||
Revenue | 97,944 | 98,212 | 144,074 | 152,943 | 493,173 | 155,991 | ||||||||||||||||||
Expenses | 71,114 | 72,519 | 109,582 | 118,297 | 371,512 | 118,108 | ||||||||||||||||||
Segment Operating Income | 26,830 | 25,693 | 34,492 | 34,646 | 121,661 | 37,883 | ||||||||||||||||||
Segment Operating Margin | 27.4 | % | 26.2 | % | 23.9 | % | 22.7 | % | 24.7 | % | 24.3 | % | ||||||||||||
Number of communities (period end) | 26 | 26 | 45 | 45 | 45 | 45 | ||||||||||||||||||
Total average units(4) | 6,457 | 6,469 | 9,783 | 10,483 | 8,298 | 10,480 | ||||||||||||||||||
Weighted average unit occupancy | 86.6 | % | 85.9 | % | 85.1 | % | 85.9 | % | 85.8 | % | 86.0 | % | ||||||||||||
Senior Housing average monthly revenue per unit(5) | $ | 5,839 | $ | 5,894 | $ | 5,740 | $ | 5,637 | $ | 5,757 | $ | 5,744 | ||||||||||||
CCRCs - Entry Fee | FY 2014 (2) (3) | FY 2015 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | |||||||||||||||||||
Revenue | 79,169 | 79,100 | 44,145 | - | 202,414 | - | ||||||||||||||||||
Expenses | 59,534 | 60,733 | 33,714 | - | 153,981 | - | ||||||||||||||||||
Segment Operating Income | 19,635 | 18,367 | 10,431 | - | 48,433 | - | ||||||||||||||||||
Segment Operating Margin | 24.8 | % | 23.2 | % | 23.6 | % | - | 23.9 | % | - | ||||||||||||||
Number of communities (period end) | 15 | 15 | - | - | - | - | ||||||||||||||||||
Total average units(4) | 5,527 | 5,534 | 2,954 | - | 3,504 | - | ||||||||||||||||||
Weighted average unit occupancy | 84.7 | % | 84.7 | % | 87.0 | % | - | 85.2 | % | - | ||||||||||||||
Senior Housing average monthly revenue per unit(5) | $ | 5,124 | $ | 5,091 | $ | 5,085 | $ | - | $ | 5,103 | $ | - | ||||||||||||
Total Senior Housing | FY 2014 (2) | FY 2015 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | |||||||||||||||||||
Revenue | 586,893 | 587,983 | 860,086 | 928,500 | 2,963,462 | 936,821 | ||||||||||||||||||
Expenses | 379,206 | 382,786 | 559,804 | 614,200 | 1,935,996 | 609,546 | ||||||||||||||||||
Operating Income | 207,687 | 205,197 | 300,282 | 314,300 | 1,027,466 | 327,275 | ||||||||||||||||||
Operating Margin | 35.4 | % | 34.9 | % | 34.9 | % | 33.9 | % | 34.7 | % | 34.9 | % | ||||||||||||
G&A Allocation(6) | 24,396 | 22,589 | 33,912 | 35,365 | 116,262 | 36,767 | ||||||||||||||||||
Adjusted Operating Income | 183,291 | 182,608 | 266,370 | 278,935 | 911,204 | 290,508 | ||||||||||||||||||
Adjusted Operating Margin | 31.2 | % | 31.1 | % | 31.0 | % | 30.0 | % | 30.7 | % | 31.0 | % | ||||||||||||
Number of communities (period end) | 555 | 555 | 986 | 982 | 982 | 981 | ||||||||||||||||||
Total average units(4) | 48,580 | 48,628 | 74,591 | 83,039 | 63,710 | 82,922 | ||||||||||||||||||
Weighted average unit occupancy | 88.6 | % | 88.1 | % | 88.5 | % | 88.3 | % | 88.3 | % | 87.4 | % | ||||||||||||
Senior Housing average monthly revenue per unit(5) | $ | 4,491 | $ | 4,518 | $ | 4,317 | $ | 4,220 | $ | 4,357 | $ | 4,305 |
2
Brookdale Senior Living Inc. | ||||||
Segment Financial Data | ||||||
As of March 31, 2015 |
Financial Data and Operating Information (continued) | |||||||
($ in 000s, except Senior Housing average monthly revenue per unit) |
Brookdale Ancillary Services | FY 2014 (2) | FY 2015 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | |||||||||||||||||||
Revenue | 63,417 | 65,534 | 95,426 | 113,458 | 337,835 | 115,411 | ||||||||||||||||||
Expenses | 50,664 | 52,629 | 77,280 | 93,799 | 274,372 | 92,669 | ||||||||||||||||||
Segment Operating Income | 12,753 | 12,905 | 18,146 | 19,659 | 63,463 | 22,742 | ||||||||||||||||||
Segment Operating Margin | 20.1 | % | 19.7 | % | 19.0 | % | 17.3 | % | 18.8 | % | 19.7 | % | ||||||||||||
G&A Allocation(6) | 5,642 | 5,908 | 5,709 | 9,050 | 26,309 | 8,251 | ||||||||||||||||||
Adjusted Segment Operating Income | 7,111 | 6,997 | 12,437 | 10,609 | 37,154 | 14,491 | ||||||||||||||||||
Adjusted Segment Operating Margin | 11.2 | % | 10.7 | % | 13.0 | % | 9.4 | % | 11.0 | % | 12.6 | % | ||||||||||||
Brookdale units served: | ||||||||||||||||||||||||
Outpatient Therapy consolidated | 37,974 | 38,328 | 37,899 | 36,843 | 40,740 | |||||||||||||||||||
Home Health consolidated | 34,518 | 35,061 | 33,254 | 37,006 | 44,239 | |||||||||||||||||||
Outpatient Therapy non-consolidated | 14,138 | 13,942 | 18,716 | 17,164 | 18,920 | |||||||||||||||||||
Home Health non-consolidated | 12,819 | 12,336 | 16,036 | 18,954 | 19,258 | |||||||||||||||||||
Total Brookdale units served: | ||||||||||||||||||||||||
Outpatient Therapy | 52,112 | 52,270 | 56,615 | 54,007 | 59,660 | |||||||||||||||||||
Home Health | 47,337 | 47,397 | 49,290 | 55,960 | 63,497 | |||||||||||||||||||
Outpatient Therapy treatment codes | 812,632 | 798,754 | 762,993 | 679,057 | 636,413 | |||||||||||||||||||
Home Health average census | 5,084 | 5,257 | 10,314 | 12,723 | 13,767 |
Total Senior Housing and Brookdale Ancillary Services | FY 2014 (2) | FY 2015 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | |||||||||||||||||||
Revenue | 650,310 | 653,517 | 955,512 | 1,041,958 | 3,301,297 | 1,052,232 | ||||||||||||||||||
Expenses | 429,870 | 435,415 | 637,084 | 707,999 | 2,210,368 | 702,215 | ||||||||||||||||||
Operating Income | 220,440 | 218,102 | 318,428 | 333,959 | 1,090,929 | 350,017 | ||||||||||||||||||
Operating Margin | 33.9 | % | 33.4 | % | 33.3 | % | 32.1 | % | 33.0 | % | 33.3 | % | ||||||||||||
G&A Allocation(6) | 30,038 | 28,497 | 39,621 | 44,415 | 142,571 | 45,018 | ||||||||||||||||||
Adjusted Operating Income | 190,402 | 189,605 | 278,807 | 289,544 | 948,358 | 304,999 | ||||||||||||||||||
Adjusted Operating Margin | 29.3 | % | 29.0 | % | 29.2 | % | 27.8 | % | 28.7 | % | 29.0 | % |
Management Services | FY 2014 (2) | FY 2015 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | |||||||||||||||||||
Revenue (Management Fees) | 7,402 | 7,489 | 10,428 | 16,920 | 42,239 | 15,097 | ||||||||||||||||||
Expenses (G&A Allocation)(6) | 6,116 | 5,649 | 7,453 | 10,732 | 29,950 | 9,755 | ||||||||||||||||||
Segment Operating Income | 1,286 | 1,840 | 2,975 | 6,188 | 12,289 | 5,342 | ||||||||||||||||||
Segment Operating Margin | 17.4 | % | 24.6 | % | 28.5 | % | 36.6 | % | 29.1 | % | 35.4 | % | ||||||||||||
Number of communities (period end) | 92 | 92 | 161 | 161 | 161 | 160 | ||||||||||||||||||
Total average units(4) | 17,140 | 16,978 | 20,919 | 27,318 | 20,589 | 27,185 | ||||||||||||||||||
Weighted average occupancy | 86.3 | % | 86.8 | % | 86.3 | % | 86.4 | % | 86.5 | % | 86.5 | % | ||||||||||||
Senior Housing average monthly revenue per unit(5) | $ | 3,706 | $ | 3,701 | $ | 3,949 | $ | 4,236 | $ | 3,943 | $ | 4,277 |
Total Senior Housing, Brookdale Ancillary and Management Services | FY 2014 (2) | FY 2015 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | |||||||||||||||||||
Revenue | 657,712 | 661,006 | 965,940 | 1,058,878 | 3,343,536 | 1,067,329 | ||||||||||||||||||
Expenses | 429,870 | 435,415 | 637,084 | 707,999 | 2,210,368 | 702,215 | ||||||||||||||||||
Operating Income | 227,842 | 225,591 | 328,856 | 350,879 | 1,133,168 | 365,114 | ||||||||||||||||||
Operating Margin | 34.6 | % | 34.1 | % | 34.0 | % | 33.1 | % | 33.9 | % | 34.2 | % | ||||||||||||
G&A Allocation (6) | 36,154 | 34,146 | 47,074 | 55,147 | 172,521 | 54,773 | ||||||||||||||||||
Adjusted Operating Income | 191,688 | 191,445 | 281,782 | 295,732 | 960,647 | 310,341 | ||||||||||||||||||
Adjusted Operating Margin | 29.1 | % | 29.0 | % | 29.2 | % | 27.9 | % | 28.7 | % | 29.1 | % |
3
Brookdale Senior Living Inc. | ||||||
Segment Financial Data | ||||||
As of March 31, 2015 |
Financial Data and Operating Information (continued) | |||||||
($ in 000s, except Senior Housing average monthly revenue per unit) |
(1) During the quarter ended December 31, 2014, one community was moved from the Retirement Centers segment to the CCRCs - Rental segment to more accurately reflect the underlying product offering of the community. The movement did not change the Company's reportable segments, but it did impact the financial data and operating information reported within the Retirement Centers and CCRCs - Rental segments. Prior quarters have not been recast. | |||||||
(2) The third quarter of 2014 represents the first quarter of results that include the operations of Emeritus, which the Company acquired on July 31, 2014, as well as the impact from the transactions with HCP, Inc., which closed on August 29, 2014. Results from the third and fourth quarter of 2014 reflect the impact of those transactions, and results from the first and second quarter of 2014 reflect legacy Brookdale on a stand-alone basis. | |||||||
(3) In connection with the transactions completed with HCP on August 29, 2014, the Company contributed all but two of its entry fee CCRCs to the entry fee CCRC venture with HCP, at which time the communities were deconsolidated. The results of the entry fee CCRCs contributed to the venture are reported in the Company's CCRCs - Entry Fee segment for the time periods prior to being contributed to the venture. The results of the two remaining entry fee CCRCs are reported in the Company's CCRCs - Rental segment beginning with the third quarter of 2014. The Company no longer reports operating results for a CCRCs – Entry Fee segment. | |||||||
(4) Senior Housing total average units operated represents the average number of units operated during the period, excluding equity homes. | |||||||
(5) Average monthly revenue per unit represents the average of total monthly revenues, excluding amortization of entrance fees and Brookdale Ancillary Services segment revenue, divided by average occupied units. | |||||||
(6) Excludes non-cash stock-based compensation expense and integration, transaction-related and EMR roll-out costs. |
4
Brookdale Senior Living Inc. | |||||||
Senior Housing Data by Ownership Type | |||||||
As of March 31, 2015 |
Financial Data and Operating Information | ||||
($ in 000s, except Senior Housing average monthly revenue per unit) |
Owned Properties | FY 2014 (1) | FY 2015 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | |||||||||||||||||||
Revenue | 277,700 | 277,748 | 369,078 | 385,654 | 1,310,180 | 412,555 | ||||||||||||||||||
Expenses | 182,706 | 184,773 | 247,359 | 260,901 | 875,739 | 278,658 | ||||||||||||||||||
Segment Operating Income | 94,994 | 92,975 | 121,719 | 124,753 | 434,441 | 133,897 | ||||||||||||||||||
Segment Operating Margin | 34.2 | % | 33.5 | % | 33.0 | % | 32.3 | % | 33.2 | % | 32.5 | % | ||||||||||||
Number of communities (period end) | 226 | 226 | 403 | 399 | 422 | |||||||||||||||||||
Total average units(2) | 22,775 | 22,799 | 32,079 | 34,904 | 36,923 | |||||||||||||||||||
Weighted average unit occupancy | 88.5 | % | 88.0 | % | 88.2 | % | 87.6 | % | 86.5 | % | ||||||||||||||
Senior Housing average monthly revenue per unit(3) | $ | 4,516 | $ | 4,532 | $ | 4,302 | $ | 4,202 | $ | 4,305 | ||||||||||||||
Leased Properties with Purchase Options | FY 2014 (1) | FY 2015 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | |||||||||||||||||||
Revenue | 77,863 | 77,418 | 87,008 | 86,441 | 328,730 | 82,064 | ||||||||||||||||||
Expenses | 49,497 | 49,719 | 57,026 | 57,839 | 214,081 | 52,876 | ||||||||||||||||||
Segment Operating Income | 28,366 | 27,699 | 29,982 | 28,602 | 114,649 | 29,188 | ||||||||||||||||||
Segment Operating Margin | 36.4 | % | 35.8 | % | 34.5 | % | 33.1 | % | 34.9 | % | 35.6 | % | ||||||||||||
Number of communities (period end) | 84 | 84 | 111 | 112 | 103 | |||||||||||||||||||
Total average units(2) | 6,391 | 6,391 | 7,347 | 7,555 | 7,027 | |||||||||||||||||||
Weighted average unit occupancy | 89.0 | % | 88.4 | % | 88.6 | % | 88.5 | % | 87.8 | % | ||||||||||||||
Senior Housing average monthly revenue per unit(3) | $ | 4,447 | $ | 4,440 | $ | 4,394 | $ | 4,312 | $ | 4,433 | ||||||||||||||
Leased Properties without Purchase Options | FY 2014 (1) | FY 2015 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | |||||||||||||||||||
Revenue | 231,330 | 232,817 | 404,000 | 456,405 | 1,324,552 | 442,202 | ||||||||||||||||||
Expenses | 147,003 | 148,294 | 255,419 | 295,460 | 846,176 | 278,012 | ||||||||||||||||||
Segment Operating Income | 84,327 | 84,523 | 148,581 | 160,945 | 478,376 | 164,190 | ||||||||||||||||||
Segment Operating Margin | 36.5 | % | 36.3 | % | 36.8 | % | 35.3 | % | 36.1 | % | 37.1 | % | ||||||||||||
Number of communities (period end) | 245 | 245 | 472 | 471 | 456 | |||||||||||||||||||
Total average units(2) | 19,414 | 19,438 | 35,165 | 40,580 | 38,972 | |||||||||||||||||||
Weighted average unit occupancy | 88.2 | % | 87.9 | % | 88.6 | % | 88.8 | % | 88.2 | % | ||||||||||||||
Senior Housing average monthly revenue per unit(3) | $ | 4,491 | $ | 4,533 | $ | 4,314 | $ | 4,218 | $ | 4,282 |
Total Senior Housing | FY 2014 (1) | FY 2015 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | |||||||||||||||||||
Revenue | 586,893 | 587,983 | 860,086 | 928,500 | 2,963,462 | 936,821 | ||||||||||||||||||
Expenses | 379,206 | 382,786 | 559,804 | 614,200 | 1,935,996 | 609,546 | ||||||||||||||||||
Operating Income | 207,687 | 205,197 | 300,282 | 314,300 | 1,027,466 | 327,275 | ||||||||||||||||||
Operating Margin | 35.4 | % | 34.9 | % | 34.9 | % | 33.9 | % | 34.7 | % | 34.9 | % |
Number of communities (period end) | 555 | 555 | 986 | 982 | 981 | |||||||||||||||||||
Total average units(2) | 48,580 | 48,628 | 74,591 | 83,039 | 82,922 | |||||||||||||||||||
Weighted average unit occupancy | 88.6 | % | 88.1 | % | 88.5 | % | 88.3 | % | 87.4 | % | ||||||||||||||
Senior Housing average monthly revenue per unit(3) | $ | 4,491 | $ | 4,518 | $ | 4,317 | $ | 4,220 | $ | 4,305 |
(1) The third quarter of 2014 represents the first quarter of results that include the operations of Emeritus, which the Company acquired on July 31, 2014, as well as the impact from the transactions with HCP, Inc., which closed on August 29, 2014. Results from the third and fourth quarter of 2014 reflect the impact of those transactions, and results from the first and second quarter of 2014 reflect legacy Brookdale on a stand-alone basis. | |||||||
(2) Senior Housing total average units operated represents the average number of units operated during the period, excluding equity homes. | |||||||
(3) Average monthly revenue per unit represents the average of total monthly revenues, excluding amortization of entrance fees and Brookdale Ancillary Services segment revenue, divided by average occupied units. |
5
Brookdale Senior Living Inc. | ||||||
Same Community and Capital Expenditure Information | ||||||
As of March 31, 2015 |
Same Community Information |
($ in 000s, except Avg. Mo. Revenue/Unit) | Legacy Brookdale Senior Housing | |||||||||||
Three Months Ended March 31, | ||||||||||||
2015 | 2014 | % Change | ||||||||||
Revenue | $ | 495,556 | $ | 481,324 | 3.0 | % | ||||||
Operating Expense | 320,901 | 308,192 | 4.1 | % | ||||||||
Facility Operating Income | $ | 174,655 | $ | 173,132 | 0.9 | % | ||||||
Facility Operating Margin | 35.2 | % | 36.0 | % | -0.8 | % | ||||||
# Communities | 509 | 509 | ||||||||||
Avg. Period Occupancy | 88.0 | % | 89.1 | % | -1.1 | % | ||||||
Avg. Mo. Revenue/Unit | $ | 4,648 | $ | 4,459 | 4.2 | % | ||||||
Legacy Emeritus Senior Housing | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2015 | 2014 | % Change | ||||||||||
Revenue | $ | 399,228 | $ | 400,269 | -0.3 | % | ||||||
Operating Expense | 261,889 | 266,816 | -1.8 | % | ||||||||
Facility Operating Income | $ | 137,339 | $ | 133,453 | 2.9 | % | ||||||
Facility Operating Margin | 34.4 | % | 33.3 | % | 1.1 | % | ||||||
# Communities | 443 | 443 | ||||||||||
Avg. Period Occupancy | 87.0 | % | 89.0 | % | -2.0 | % | ||||||
Avg. Mo. Revenue/Unit | $ | 3,936 | $ | 3,860 | 2.0 | % | ||||||
Combined Brookdale and Emeritus Senior Housing | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2015 | 2014 | % Change | ||||||||||
Revenue | $ | 894,784 | $ | 881,593 | 1.5 | % | ||||||
Operating Expense | 582,790 | 575,008 | 1.4 | % | ||||||||
Facility Operating Income | $ | 311,994 | $ | 306,585 | 1.8 | % | ||||||
Facility Operating Margin | 34.9 | % | 34.8 | % | 0.1 | % | ||||||
# Communities | 952 | 952 | ||||||||||
Avg. Period Occupancy | 87.5 | % | 89.0 | % | -1.5 | % | ||||||
Avg. Mo. Revenue/Unit | $ | 4,301 | $ | 4,165 | 3.3 | % |
Same Community Information reflects historical results from operations for same store communities (utilizing the Company's methodology for determining same store communities). |
Schedule of Capital Expenditures |
($ in 000s) | ||||||||
Three Months Ended March 31, | ||||||||
Type | 2015 | 2014 | ||||||
Recurring | $ | 16,762 | $ | 9,369 | ||||
Reimbursements | (1,759 | ) | - | |||||
Net Recurring | 15,003 | 9,369 | ||||||
EBITDA-enhancing / Major Projects (1) | 26,136 | 22,881 | ||||||
Program Max, net (2) | 9,139 | 11,465 | ||||||
Corporate, integration and other (3) | 13,555 | 4,386 | ||||||
Net Total Capital Expenditures (4) | $ | 63,833 | $ | 48,101 |
(1) Includes EBITDA-enhancing projects (primarily community renovations and apartment upgrades) and other major building infrastructure projects. Amounts shown are amounts invested, net of third party lessor funding received of $2.8 million for the three months ended March 31, 2015. | ||||||
(2) Includes community expansions and major repositioning or upgrade projects. Also includes de novo community developments. Amounts shown are amounts invested, net of third party lessor funding received of $10.7 million and $11.6 million for the three months ended March 31, 2015 and 2014, respectively. | ||||||
(3) Corporate, integration and other includes capital expenditures for information technology systems and equipment and expenditures supporting the expansion of our support platform and ancillary services programs. | ||||||
(4) Approximately $14.9 million and $10.0 million of expense was recognized during the three months ended March 31, 2015 and 2014, respectively, for normal repairs and maintenance and capital spend under $1,500 per invoice, except for unit turnovers. |
6
Brookdale Senior Living Inc. |
Capital Structure - selected financial information |
As of March 31, 2015 |
($ in 000s) |
Debt Maturities and Scheduled Principal Repayments |
Maturities | ||||||||||||||||||||||||||||
Mortgage | weighted | Line of | weighted | Capital and | weighted | Total | ||||||||||||||||||||||
Debt (1) | rate (2) | Credit | rate (2) | Financing Leases | rate (2) | Debt | ||||||||||||||||||||||
2015 | $ | 125,932 | 4.64 | % | $ | - | - | $ | 54,872 | 7.27 | % | $ | 180,804 | |||||||||||||||
2016 | 67,251 | 4.99 | % | - | - | 135,379 | 9.68 | % | 202,630 | |||||||||||||||||||
2017 | 561,683 | 5.84 | % | - | - | 86,981 | 8.56 | % | 648,664 | |||||||||||||||||||
2018 | 1,306,995 | 4.57 | % | - | - | 112,972 | 7.31 | % | 1,419,967 | |||||||||||||||||||
2019 | 159,534 | 6.20 | % | - | - | 122,830 | 8.05 | % | 282,364 | |||||||||||||||||||
Thereafter | 1,359,955 | 4.08 | % | 300,000 | 3.76 | % | 2,079,099 | 8.23 | % | 3,739,054 | ||||||||||||||||||
Total | $ | 3,581,350 | 4.67 | % | $ | 300,000 | 3.76 | % | $ | 2,592,133 | 8.25 | % | $ | 6,473,483 |
Coverage Ratios |
Three months ended March 31, 2015 (3) | ||||||||||||||||||||
Senior Housing | Interest/Cash Lease | |||||||||||||||||||
Units | FOI | Adj. FOI ** | Payments | Coverage | ||||||||||||||||
Owned communities | 37,116 | $ | 133,897 | $ | 110,021 | $ | 42,348 | 2.6x | ||||||||||||
Leased communities * | 46,004 | $ | 193,378 | $ | 163,139 | $ | 154,664 | 1.1x |
* Leased communities include capital leases. |
** Adjusted for 5% management fee and capital expenditures @ $350/unit. |
Debt Amortization |
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Scheduled debt amortization | $ | 22,384 | $ | 13,842 | ||||
Lease financing debt amortization - FMV or no purchase option (4) | 12,439 | 3,897 | ||||||
Lease financing debt amortization - bargain purchase option | 1,158 | 4,662 | ||||||
Total debt amortization | $ | 35,981 | $ | 22,401 |
Line Availability |
03/31/14 | 06/30/14 | 09/30/14 | 12/31/14 | 03/31/15 | ||||||||||||||||
Total line commitment | $ | 250,000 | $ | 250,000 | $ | 250,000 | $ | 500,000 | $ | 500,000 | ||||||||||
Line availability (6) | $ | 250,000 | $ | 250,000 | $ | 202,860 | $ | 488,389 | $ | 466,746 | ||||||||||
Ending line balance | 25,000 | 12,000 | - | 100,000 | 300,000 | |||||||||||||||
Available to draw | $ | 225,000 | $ | 238,000 | $ | 202,860 | $ | 388,389 | $ | 166,746 | ||||||||||
Cash and cash equivalents | 45,701 | 50,934 | 238,324 | 104,083 | 115,182 | |||||||||||||||
Total liquidity (available to draw + cash) | $ | 270,701 | $ | 288,934 | $ | 441,184 | $ | 492,472 | $ | 281,928 | ||||||||||
Total letters of credit outstanding | $ | 71,675 | $ | 71,650 | $ | 74,488 | $ | 72,730 | $ | 83,935 |
Leverage Ratios |
Annualized | ||||||||
Leverage | ||||||||
Three months ended March 31, 2015 annualized Adjusted EBITDAR | $ | 1,301,796 | ||||||
Less: cash lease expense | (378,888 | ) | ||||||
Three months ended March 31, 2015 annualized Adjusted EBITDA | 922,908 | |||||||
Less: cash capital and financing lease payments | (239,768 | ) | ||||||
Three months ended March 31, 2015 annualized Adjusted EBITDA after capital and financing lease payments | 683,140 | |||||||
Debt (1) | 3,581,350 | 5.2x | ||||||
Line of credit | 300,000 | |||||||
Less: unrestricted cash | (115,182 | ) | ||||||
Less: cash held as collateral against existing debt | (2,953 | ) | ||||||
Total net debt | 3,763,215 | 5.5x | ||||||
Plus: Three months ended March 31, 2015 annualized cash capital and financing | 1,918,144 | |||||||
lease payments multiplied by 8 | ||||||||
Total net debt after capital and financing leases | 5,681,359 | 6.2x | ||||||
Three months ended March 31, 2015 annualized cash lease expense multiplied by 8 | 3,031,104 | |||||||
Total adjusted net debt | $ | 8,712,463 | 6.7x |
Debt Structure |
Weighted | |||||||||
Balance | rate (2) | ||||||||
Fixed rate debt (1) | $ | 2,564,274 | 5.31 | % | |||||
Variable rate debt (1) | 1,017,076 | 3.05 | % | ||||||
Capital and financing leases | 2,592,133 | 8.25 | % | ||||||
Line of credit (cash borrowings) | 300,000 | 3.76 | % | ||||||
Total debt | $ | 6,473,483 | |||||||
Balance | % of total | ||||||||
Variable rate debt with interest rate caps (1) (5) | $ | 822,492 | 80.9 | % | |||||
Variable rate debt - unhedged (1) | 194,584 | 19.1 | % | ||||||
Total variable rate debt (1) | $ | 1,017,076 | 100.0 | % |
(1) Includes mortgage debt and convertible notes, but excludes capital and financing leases and line of credit. |
(2) Pertaining to variable rate debt, reflects a) market rates for stated reporting period and b) applicable cap rates for hedged debt. |
(3) Senior housing FOI and adjusted FOI exclude Brookdale Ancillary Services segment operating income. |
(4) Payments are included in CFFO. |
(5) Weighted cap rate for stated reporting period of 4.31% is materially above current market rates, therefore caps have no impact on consolidated interest expense for given period. |
(6) The actual amount available to borrow under the line may vary from time to time as it is based on borrowing base calculations related to the value and performance of the communities securing the facility. |
7
Brookdale Senior Living Inc. | ||
CFFO Reconciliation | ||
As of March 31, 2015 |
CFFO Calculation | |||||
($ in 000s) |
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Net cash provided by operating activities (includes non-refundable entrance fees) | $ | 10,057 | $ | 52,696 | ||||
Changes in operating assets and liabilities (eliminates cash flow effect) | 16,425 | 28,558 | ||||||
Add: Refundable entrance fees received | 36 | 5,924 | ||||||
Less: Entrance fee refunds disbursed | (829 | ) | (8,446 | ) | ||||
Less: Recurring capital expenditures, net | (15,003 | ) | (9,369 | ) | ||||
Less: Lease financing debt amortization with fair market value or no purchase options | (12,439 | ) | (3,897 | ) | ||||
Add: Loss on facility lease termination | 76,143 | - | ||||||
Less: Distributions from unconsolidated ventures from cumulative share of net earnings | (500 | ) | (245 | ) | ||||
Add: CFFO from unconsolidated ventures | 14,213 | 2,241 | ||||||
Cash From Facility Operations | $ | 88,103 | $ | 67,462 | ||||
Add: Integration, transaction-related and EMR roll-out costs | 27,300 | 11,783 | ||||||
Adjusted Cash From Facility Operations | $ | 115,403 | $ | 79,245 |
Revenue Reconciliation (1) | ||||||||||||||||||||||||||||||||||||
($ in 000s except average monthly revenue per quarter) | ||||||||||||||||||||||||||||||||||||
FY 2014 | FY 2015 | Q1 2015 CFFO Distribution | ||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | Owned | Other (3) | Transaction/ Integration | ||||||||||||||||||||||||||||
Revenue reconciliation excl. entrance fee amortization | ||||||||||||||||||||||||||||||||||||
Average monthly revenue per quarter | $ | 4,491 | $ | 4,518 | $ | 4,317 | $ | 4,220 | $ | 4,357 | $ | 4,305 | $ | 4,305 | $ | 4,306 | $ | - | ||||||||||||||||||
Average monthly units (excluding equity homes) available | 48,562 | 48,608 | 74,538 | 82,995 | 254,923 | 82,927 | 36,929 | 45,950 | - | |||||||||||||||||||||||||||
Average occupancy for the quarter | 88.6 | % | 88.1 | % | 88.5 | % | 88.3 | % | 88.3 | % | 87.4 | % | 86.5 | % | 88.2 | % | - | |||||||||||||||||||
Senior Housing resident fee revenue | $ | 579,691 | $ | 580,436 | $ | 854,329 | $ | 927,786 | $ | 2,942,242 | $ | 936,054 | $ | 412,555 | $ | 523,499 | $ | - | ||||||||||||||||||
Add: Brookdale Ancillary Services segment revenue | 63,417 | 65,534 | 95,426 | 113,458 | 337,835 | 115,411 | - | 115,411 | - | |||||||||||||||||||||||||||
Add: Management fee revenue | 7,402 | 7,489 | 10,428 | 16,920 | 42,239 | 15,097 | - | 15,097 | - | |||||||||||||||||||||||||||
Total revenues excluding entrance fee amortization | $ | 650,510 | $ | 653,459 | $ | 960,183 | $ | 1,058,164 | $ | 3,322,316 | $ | 1,066,562 | $ | 412,555 | $ | 654,007 | $ | - | ||||||||||||||||||
CFFO Reconciliation to the Income Statement | ||||||||||||||||||||||||||||||||||||
Resident and management fee revenue | $ | 657,712 | $ | 661,006 | $ | 965,940 | $ | 1,058,878 | $ | 3,343,536 | $ | 1,067,329 | $ | 412,555 | $ | 654,774 | $ | - | ||||||||||||||||||
Less: Entrance fee amortization | (7,202 | ) | (7,547 | ) | (5,757 | ) | (714 | ) | (21,220 | ) | (767 | ) | - | (767 | ) | - | ||||||||||||||||||||
Adjusted revenues | 650,510 | 653,459 | 960,183 | 1,058,164 | 3,322,316 | 1,066,562 | 412,555 | 654,007 | - | |||||||||||||||||||||||||||
Less: Facility operating expenses | (429,870 | ) | (435,415 | ) | (637,084 | ) | (707,999 | ) | (2,210,368 | ) | (702,215 | ) | (278,658 | ) | (423,557 | ) | - | |||||||||||||||||||
Add: Change in future service obligation | - | - | - | 670 | 670 | - | - | - | - | |||||||||||||||||||||||||||
Adjusted facility operating expenses | (429,870 | ) | (435,415 | ) | (637,084 | ) | (707,329 | ) | (2,209,698 | ) | (702,215 | ) | (278,658 | ) | (423,557 | ) | - | |||||||||||||||||||
Less: G&A including non-cash stock-based compensation expense | (44,665 | ) | (47,008 | ) | (90,020 | ) | (98,574 | ) | (280,267 | ) | (84,204 | ) | (18,814 | ) | (44,832 | ) | (20,558 | ) | ||||||||||||||||||
Less: Transaction costs | (10,844 | ) | (6,808 | ) | (41,572 | ) | (7,725 | ) | (66,949 | ) | (6,742 | ) | - | - | (6,742 | ) | ||||||||||||||||||||
Add: G&A non-cash stock-based compensation expense | 7,572 | 7,729 | 7,869 | 5,129 | 28,299 | 8,873 | 2,623 | 6,250 | - | |||||||||||||||||||||||||||
Net G&A (4) | (47,937 | ) | (46,087 | ) | (123,723 | ) | (101,170 | ) | (318,917 | ) | (82,073 | ) | (16,191 | ) | (38,582 | ) | (27,300 | ) | ||||||||||||||||||
Less: Facility lease expense | (69,869 | ) | (70,030 | ) | (91,462 | ) | (92,469 | ) | (323,830 | ) | (94,471 | ) | - | (94,471 | ) | - | ||||||||||||||||||||
Add: Straight-line lease expense | (223 | ) | (217 | ) | 2,840 | (961 | ) | 1,439 | 2,801 | - | 2,801 | - | ||||||||||||||||||||||||
Add: Amortization of (above) below market lease, net | - | - | (1,377 | ) | (2,067 | ) | (3,444 | ) | (1,959 | ) | - | (1,959 | ) | - | ||||||||||||||||||||||
Less: Amortization of deferred gain | (1,093 | ) | (1,093 | ) | (1,093 | ) | (1,093 | ) | (4,372 | ) | (1,093 | ) | - | (1,093 | ) | - | ||||||||||||||||||||
Net lease expense | (71,185 | ) | (71,340 | ) | (91,092 | ) | (96,590 | ) | (330,207 | ) | (94,722 | ) | - | (94,722 | ) | - | ||||||||||||||||||||
Add: Entrance fee receipts | 14,959 | 25,924 | 9,576 | 2,587 | 53,046 | 2,491 | - | 2,491 | - | |||||||||||||||||||||||||||
Less: Entrance fee disbursements | (8,446 | ) | (9,213 | ) | (7,668 | ) | (538 | ) | (25,865 | ) | (829 | ) | - | (829 | ) | - | ||||||||||||||||||||
Net entrance fees | 6,513 | 16,711 | 1,908 | 2,049 | 27,181 | 1,662 | - | 1,662 | - | |||||||||||||||||||||||||||
Add: CFFO from unconsolidated ventures | 2,241 | 1,996 | 9,435 | 11,662 | 25,334 | 14,213 | - | 14,213 | - | |||||||||||||||||||||||||||
Adjusted EBITDA | 110,272 | 119,324 | 119,627 | 166,786 | 516,009 | 203,427 | 117,706 | 113,021 | (27,300 | ) | ||||||||||||||||||||||||||
Less: Recurring capital expenditures, net | (9,369 | ) | (11,841 | ) | (13,199 | ) | (16,353 | ) | (50,762 | ) | (15,003 | ) | (7,286 | ) | (7,717 | ) | - | |||||||||||||||||||
Less: Interest expense, net | (29,677 | ) | (29,372 | ) | (73,030 | ) | (91,933 | ) | (224,012 | ) | (89,424 | ) | (41,921 | ) | (47,503 | ) | - | |||||||||||||||||||
Less: Lease financing debt amortization with fair market value or no purchase options | (3,897 | ) | (3,983 | ) | (10,710 | ) | (10,028 | ) | (28,618 | ) | (12,439 | ) | - | (12,439 | ) | - | ||||||||||||||||||||
Less: Other | 133 | 2,528 | 217 | 2,847 | 5,725 | 1,542 | - | 1,542 | - | |||||||||||||||||||||||||||
Reported CFFO | $ | 67,462 | $ | 76,656 | $ | 22,905 | $ | 51,319 | $ | 218,342 | $ | 88,103 | $ | 68,499 | $ | 46,904 | $ | (27,300 | ) | |||||||||||||||||
Add: integration, transaction-related and EMR roll-out costs | 11,783 | 11,941 | 76,649 | 46,023 | 146,396 | 27,300 | - | - | - | |||||||||||||||||||||||||||
Adjusted CFFO | $ | 79,245 | $ | 88,597 | $ | 99,554 | $ | 97,342 | $ | 364,738 | $ | 115,403 | $ | 68,499 | $ | 46,904 | $ | (27,300 | ) | |||||||||||||||||
CFFO Per Share | ||||||||||||||||||||||||||||||||||||
($ except where indicated) | ||||||||||||||||||||||||||||||||||||
FY 2014 | FY 2015 | Q4 2014 Distribution | ||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year(2) | Q1 | Owned | Other | Transaction/ Integration | ||||||||||||||||||||||||||||
Reported CFFO | $ | 0.54 | $ | 0.61 | $ | 0.14 | $ | 0.28 | $ | 1.57 | $ | 0.48 | $ | 0.37 | $ | 0.26 | $ | (0.15 | ) | |||||||||||||||||
Add: integration, transaction-related and EMR roll-out costs | 0.10 | 0.10 | 0.49 | 0.25 | 0.94 | 0.15 | - | - | 0.15 | |||||||||||||||||||||||||||
Adjusted CFFO | $ | 0.64 | $ | 0.71 | $ | 0.63 | $ | 0.53 | $ | 2.51 | $ | 0.63 | $ | 0.37 | $ | 0.26 | $ | - | ||||||||||||||||||
Shares used in calculation of CFFO (000's) | 124,478 | 125,058 | 159,003 | 183,432 | 183,678 | 183,678 | 183,678 | 183,678 |
(1) Revenue excludes reimbursed costs incurred on behalf of managed communities. |
(2) Full year CFFO for all periods is calculated as the sum of the quarterly amounts for the year. |
(3) Other includes financial data and operating information from leased communities, Brookdale Ancillary Services, and Management Services. |
(4) Allocation of G&A to Owned and Other is based upon a percentage of revenue and excludes non-cash stock-based compensation expense and integration, transaction-related and EMR roll-out costs. |
Note: CFFO is a measurement of liquidity that is not calculated in accordance with GAAP and should not be viewed in isolation or as a substitute for any GAAP financial measure. CFFO is not a measure of financial performance under GAAP. We strongly urge you to review the reconciliation of CFFO to GAAP net cash provided by operating activities, along with our consolidated financial statements, included in the accompanying earnings release. |
8
Brookdale Senior Living Inc. | ||
CFFO from Unconsolidated Ventures | ||
As of March 31, 2015 |
CFFO from Unconsolidated Ventures reconciliation |
($ in 000s) | Entrance Fee Ventures | Senior Housing Rental Ventures | ||||||||||||||||||||||
FY 2014 | FY 2015 | FY 2014 | FY 2015 | |||||||||||||||||||||
Q3 | Q4 | Q1 | Q3 | Q4 | Q1 | |||||||||||||||||||
Resident revenue | $ | 33,257 | $ | 85,546 | $ | 87,473 | $ | 80,862 | $ | 125,970 | $ | 127,513 | ||||||||||||
Less: Entrance fee amortization | (638 | ) | (554 | ) | (1,141 | ) | - | - | - | |||||||||||||||
Adjusted revenues | 32,619 | 84,992 | 86,332 | 80,862 | 125,970 | 127,513 | ||||||||||||||||||
Less: Facility operating expenses | (25,040 | ) | (68,288 | ) | (67,451 | ) | (51,698 | ) | (84,306 | ) | (83,469 | ) | ||||||||||||
Add: Change in future service obligation | - | - | - | - | - | - | ||||||||||||||||||
Adjusted facility operating expenses | (25,040 | ) | (68,288 | ) | (67,451 | ) | (51,698 | ) | (84,306 | ) | (83,469 | ) | ||||||||||||
Less: G&A including non-cash stock-based compensation expense | (6,015 | ) | (4,948 | ) | (4,707 | ) | (3,925 | ) | (6,077 | ) | (6,153 | ) | ||||||||||||
Add: G&A non-cash stock-based compensation expense | - | - | - | - | - | |||||||||||||||||||
Net G&A | (6,015 | ) | (4,948 | ) | (4,707 | ) | (3,925 | ) | (6,077 | ) | (6,153 | ) | ||||||||||||
Add: Entrance fee receipts | 16,112 | 26,210 | 23,251 | - | - | - | ||||||||||||||||||
Less: Entrance fee disbursements | (4,780 | ) | (13,888 | ) | (9,181 | ) | - | - | - | |||||||||||||||
Net entrance fees | 11,332 | 12,322 | 14,070 | - | - | - | ||||||||||||||||||
Adjusted EBITDA | 12,896 | 24,078 | 28,244 | 25,239 | 35,587 | 37,891 | ||||||||||||||||||
Less: Recurring capital expenditures, net | (193 | ) | (1,347 | ) | (1,159 | ) | (974 | ) | (2,431 | ) | (2,336 | ) | ||||||||||||
Less: Interest expense, net | (1,161 | ) | (1,575 | ) | (1,530 | ) | (15,648 | ) | (26,447 | ) | (25,845 | ) | ||||||||||||
Less: Other | - | - | - | - | (276 | ) | (613 | ) | ||||||||||||||||
Reported Cash From Facility Operations for Unconsolidated Ventures | $ | 11,542 | $ | 21,156 | $ | 25,555 | $ | 8,617 | $ | 6,433 | $ | 9,097 | ||||||||||||
Add: integration, transaction-related and EMR roll-out costs | 4,088 | 210 | - | 738 | - | - | ||||||||||||||||||
Adjusted Cash From Facility Operations for Unconsolidated Ventures | $ | 15,630 | $ | 21,366 | $ | 25,555 | $ | 9,355 | $ | 6,433 | $ | 9,097 | ||||||||||||
Brookdale Weighted Average Ownership % | 51.7 | % | 51.0 | % | 51.0 | % | 14.5 | % | 11.9 | % | 13.0 | % | ||||||||||||
CFFO from Unconsolidated Ventures | $ | 8,081 | $ | 10,896 | $ | 13,033 | $ | 1,354 | $ | 766 | $ | 1,180 |
Leverage Ratio for Unconsolidated Ventures | ||||||||||||||||||||||||
Debt Principal as of March 31, 2015 | $ | 195,800 | $ | 1,328,908 | ||||||||||||||||||||
Annualized Adjusted EBITDA | 112,976 | 151,564 | ||||||||||||||||||||||
Annualized Leverage | 1.7 | x | 8.8 | x |
Unconsolidated Ventures Schedule of Capital Expenditures |
($ in 000s) | FY 2014 | FY 2015 | ||||||||||
Type | Q3 | Q4 | Q1 | |||||||||
Recurring | $ | 1,167 | $ | 3,778 | $ | 3,495 | ||||||
EBITDA-enhancing / Major Projects | 5,247 | 17,199 | 13,243 | |||||||||
Program Max, net | 2,758 | 3,665 | 4,340 | |||||||||
Net Total Capital Expenditures | $ | 9,172 | $ | 24,642 | $ | 21,078 |
9
Brookdale Senior Living Inc. | ||
Cash Lease and Interest Expense | ||
As of March 31, 2015 |
Cash Lease and Interest Expense |
($ in 000s) | FY 2014 | FY 2015 | ||||||||||
Q3 | Q4 | Q1 | ||||||||||
Facility Lease Payments | ||||||||||||
Facility lease expense | $ | 91,462 | $ | 92,469 | $ | 94,471 | ||||||
Less: Straight-line lease expense, net | (1,463 | ) | 3,028 | (842 | ) | |||||||
Add: Amortization of deferred gain | 1,093 | 1,093 | 1,093 | |||||||||
Cash lease payments - Operating Leases | $ | 91,092 | $ | 96,590 | $ | 94,722 | ||||||
Supplemental breakout: | ||||||||||||
Communities with purchase options | $ | 5,590 | $ | 6,320 | $ | 6,343 | ||||||
Communities without purchase options | 85,502 | 90,270 | 88,379 | |||||||||
$ | 91,092 | $ | 96,590 | $ | 94,722 | |||||||
Capital Lease Interest | $ | 40,916 | $ | 56,873 | $ | 53,203 | ||||||
Capital Lease Interest - noncash | (5,947 | ) | (6,700 | ) | (5,700 | ) | ||||||
Capital lease principal (1) | 10,710 | 10,028 | 12,439 | |||||||||
Net lease payments - Capital and Financing Leases | $ | 45,679 | $ | 60,201 | $ | 59,942 | ||||||
Supplemental breakout: | ||||||||||||
Communities with purchase options | $ | 13,571 | $ | 14,755 | $ | 14,205 | ||||||
Communities without purchase options | 32,108 | 45,446 | 45,737 | |||||||||
$ | 45,679 | $ | 60,201 | $ | 59,942 | |||||||
Total net lease payments | $ | 136,771 | $ | 156,791 | $ | 154,664 | ||||||
Interest Expense | ||||||||||||
Property level debt interest expense | $ | 36,278 | $ | 39,930 | $ | 40,174 | ||||||
Convertible debt interest expense | 2,174 | 2,174 | 2,174 | |||||||||
Total debt interest payments | 38,452 | 42,104 | 42,348 | |||||||||
Less: interest income | (392 | ) | (345 | ) | (427 | ) | ||||||
Interest expense, net | $ | 38,060 | $ | 41,759 | $ | 41,921 |
(1) Includes lease financing debt amortization on communities with FMV or no purchase option. Payments are included in CFFO. |
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Brookdale Senior Living Inc. |
Quarterly Cash Flow Statements |
As of March 31, 2015 |
($ in 000s) |
Cash Flow Statements |
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | FY 2014 | Q1 2015 | |||||||||||||||||||
Cash Flows from Operating Activities | ||||||||||||||||||||||||
Net loss | $ | (2,299 | ) | $ | (3,295 | ) | $ | (37,036 | ) | $ | (106,796 | ) | $ | (149,426 | ) | $ | (130,709 | ) | ||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||||||||||
Debt modification and extinguishment costs | - | 3,197 | 569 | 2,621 | 6,387 | 44 | ||||||||||||||||||
Depreciation and amortization, net | 74,334 | 75,166 | 178,810 | 216,202 | 544,512 | 220,808 | ||||||||||||||||||
Asset impairment | - | - | - | 9,992 | 9,992 | - | ||||||||||||||||||
Equity in (earnings) loss of unconsolidated ventures | (636 | ) | (1,523 | ) | 1,246 | 742 | (171 | ) | (1,484 | ) | ||||||||||||||
Distributions from unconsolidated ventures from cumulative share of net earnings | 245 | 370 | 595 | 630 | 1,840 | 500 | ||||||||||||||||||
Amortization of deferred gain | (1,093 | ) | (1,093 | ) | (1,093 | ) | (1,093 | ) | (4,372 | ) | (1,093 | ) | ||||||||||||
Amortization of entrance fees | (7,202 | ) | (7,547 | ) | (5,757 | ) | (714 | ) | (21,220 | ) | (767 | ) | ||||||||||||
Proceeds from deferred entrance fee revenue | 9,035 | 14,906 | 6,188 | 2,575 | 32,704 | 2,455 | ||||||||||||||||||
Deferred income tax provision (benefit) | 598 | (5 | ) | (116,757 | ) | (66,207 | ) | (182,371 | ) | (79,237 | ) | |||||||||||||
Change in deferred lease liability | (223 | ) | (217 | ) | 2,840 | (961 | ) | 1,439 | 2,801 | |||||||||||||||
Change in fair value of derivatives | 847 | 1,322 | 10 | 532 | 2,711 | 550 | ||||||||||||||||||
Loss (gain) on sale of assets | 76 | 39 | 200 | (761 | ) | (446 | ) | - | ||||||||||||||||
Change in future service obligation | - | - | - | 670 | 670 | - | ||||||||||||||||||
Non-cash stock-based compensation | 7,572 | 7,729 | 7,869 | 5,129 | 28,299 | 8,873 | ||||||||||||||||||
Non-cash interest expense on financing leases | - | - | 5,947 | 6,700 | 12,647 | 5,700 | ||||||||||||||||||
Amortization of (above) below market rents, net | - | - | (1,377 | ) | (2,067 | ) | (3,444 | ) | (1,959 | ) | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Accounts receivable, net | (2,499 | ) | 3,914 | 23,671 | (21,576 | ) | 3,510 | (13,140 | ) | |||||||||||||||
Prepaid expenses and other assets, net | (5,816 | ) | (8,369 | ) | (53,861 | ) | 15,178 | (52,868 | ) | 24,504 | ||||||||||||||
Accounts payable and accrued expenses | (27,561 | ) | 14,245 | 6,222 | 23,906 | 16,812 | (38,773 | ) | ||||||||||||||||
Tenant refundable fees and security deposits | (615 | ) | 138 | (674 | ) | (32 | ) | (1,183 | ) | (510 | ) | |||||||||||||
Deferred revenue | 7,933 | (7,459 | ) | (4,978 | ) | 1,134 | (3,370 | ) | 11,494 | |||||||||||||||
Net cash provided by operating activities | 52,696 | 91,518 | 12,634 | 85,804 | 242,652 | 10,057 | ||||||||||||||||||
Cash Flows from Investing Activities | ||||||||||||||||||||||||
Decrease (increase) in lease security deposits and lease acquisition deposits, net | 7 | (73 | ) | 3,326 | (52,204 | ) | (48,944 | ) | 13,037 | |||||||||||||||
Decrease (increase) in cash and escrow deposits — restricted | 6,627 | (6,039 | ) | 14,052 | 42,295 | 56,935 | 12,289 | |||||||||||||||||
Additions to property, plant and equipment and leasehold intangibles, net | (59,717 | ) | (73,712 | ) | (79,104 | ) | (91,712 | ) | (304,245 | ) | (79,129 | ) | ||||||||||||
Acquisition of assets, net of related payables and cash received | (515 | ) | - | (39,303 | ) | (623 | ) | (40,441 | ) | (174,305 | ) | |||||||||||||
Acquisition of Emeritus Corporation, cash acquired | - | - | 28,429 | - | 28,429 | - | ||||||||||||||||||
Payment on notes receivable, net | 76 | 2,564 | 73 | 556 | 3,269 | 740 | ||||||||||||||||||
Investment in unconsolidated ventures | - | - | (25,532 | ) | (967 | ) | (26,499 | ) | (3,923 | ) | ||||||||||||||
Distributions received from unconsolidated ventures | - | 2,643 | 9,414 | 218 | 12,275 | - | ||||||||||||||||||
Proceeds from sale of assets, net | - | - | - | 4,339 | 4,339 | - | ||||||||||||||||||
Net cash used in investing activities | (53,522 | ) | (74,617 | ) | (88,645 | ) | (98,098 | ) | (314,882 | ) | (231,291 | ) | ||||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||||||
Proceeds from debt | 20,516 | 159,638 | 46,356 | 100,129 | 326,639 | 85,365 | ||||||||||||||||||
Repayment of debt and capital and financing lease obligations | (22,401 | ) | (159,412 | ) | (92,568 | ) | (309,964 | ) | (584,345 | ) | (47,555 | ) | ||||||||||||
Proceeds from line of credit | 70,000 | 12,000 | 160,000 | 200,000 | 442,000 | 445,000 | ||||||||||||||||||
Repayment of line of credit | (75,000 | ) | (25,000 | ) | (172,000 | ) | (100,000 | ) | (372,000 | ) | (245,000 | ) | ||||||||||||
Proceeds from public equity offering, net | - | - | 330,405 | (19 | ) | 330,386 | - | |||||||||||||||||
Payment of financing costs, net of related payables | (2,905 | ) | 2,087 | (202 | ) | (8,373 | ) | (9,393 | ) | (1,481 | ) | |||||||||||||
Refundable entrance fees: | ||||||||||||||||||||||||
Proceeds from refundable entrance fees | 5,924 | 11,018 | 3,388 | 12 | 20,342 | 36 | ||||||||||||||||||
Refunds of entrance fees | (8,446 | ) | (9,213 | ) | (7,668 | ) | (538 | ) | (25,865 | ) | (829 | ) | ||||||||||||
Cash portion of loss on extinguishment of debt, net | - | (3,180 | ) | (921 | ) | - | (4,101 | ) | (44 | ) | ||||||||||||||
Payment on lease termination | - | - | (3,875 | ) | (3,875 | ) | (7,750 | ) | (3,875 | ) | ||||||||||||||
Other | 328 | 394 | 486 | 681 | 1,889 | 716 | ||||||||||||||||||
Net cash (used in) provided by financing activities | (11,984 | ) | (11,668 | ) | 263,401 | (121,947 | ) | 117,802 | 232,333 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | (12,810 | ) | 5,233 | 187,390 | (134,241 | ) | 45,572 | 11,099 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 58,511 | 45,701 | 50,934 | 238,324 | 58,511 | 104,083 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | 45,701 | $ | 50,934 | $ | 238,324 | $ | 104,083 | $ | 104,083 | $ | 115,182 |
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