Exhibit 99.2
Brookdale Senior Living Inc. | ||||||||
Corporate Overview - selected financial information | ||||||||
As of December 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 December 31, 2015, the Company operates independent living, assisted living and dementia-care communities and continuing care retirement centers ("CCRCs"), with 1,123 communities in 47 states and the ability to serve approximately 108,000 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 Q4 2015 Resident and Management Fees | Percentage of Q4 2015 Facility Operating Income | Percentage of FY 2015 Resident and Management Fees | Percentage of FY 2015 Facility Operating Income | |
Owned | 413 | 36,304 | 39.1% | 37.7% | 38.8% | 37.5% | |
Leased | 546 | 44,763 | 48.1% | 53.2% | 48.7% | 53.1% | |
Brookdale Ancillary Services | N/A | N/A | 11.3% | 4.8% | 11.1% | 5.2% | |
Managed | 164 | 27,353 | 1.5% | 4.3% | 1.4% | 4.2% | |
Total | 1,123 | 108,420 | 100.0% | 100.0% | 100.0% | 100.0% | |
Operating Type - By Segment | |||||||
Retirement Centers | 95 | 17,140 | 15.7% | 20.2% | 15.5% | 19.7% | |
Assisted Living | 820 | 53,504 | 57.5% | 61.0% | 57.7% | 60.5% | |
CCRCs - Rental | 44 | 10,423 | 14.0% | 9.7% | 14.3% | 10.4% | |
Brookdale Ancillary Services | N/A | N/A | 11.3% | 4.8% | 11.1% | 5.2% | |
Management Services | 164 | 27,353 | 1.5% | 4.3% | 1.4% | 4.2% | |
Total | 1,123 | 108,420 | 100.0% | 100.0% | 100.0% | 100.0% |
CFFO Per Share |
($ except where indicated) | FY 2014 | FY 2015 | ||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year(2) | Q1 | Q2 | Q3 | Q4 | Full Year(2) | |||||||||||||||||||||||||||||||
CFFO | $ | 0.54 | $ | 0.61 | $ | 0.14 | $ | 0.28 | $ | 1.57 | $ | 0.48 | $ | 0.44 | $ | 0.36 | $ | 0.44 | $ | 1.72 | ||||||||||||||||||||
Add: integration, transaction, transaction-related and EMR roll-out costs (1) | 0.10 | 0.10 | 0.49 | 0.25 | 0.94 | 0.15 | 0.16 | 0.23 | 0.14 | 0.68 | ||||||||||||||||||||||||||||||
Adjusted CFFO | $ | 0.64 | $ | 0.71 | $ | 0.63 | $ | 0.53 | $ | 2.51 | $ | 0.63 | $ | 0.60 | $ | 0.59 | $ | 0.58 | $ | 2.40 | ||||||||||||||||||||
Weighted average shares (000's) | 124,478 | 125,058 | 159,003 | 183,432 | 183,678 | 184,266 | 184,570 | 184,805 | ||||||||||||||||||||||||||||||||
Period end outstanding shares (excluding unvested restricted shares) (000's) | 124,816 | 125,408 | 183,410 | 183,486 | 184,143 | 184,500 | 184,779 | 184,885 |
(1) The calculation of Cash From Facility Operations ("CFFO") includes integration, transaction, transaction-related and EMR roll-out costs of $24.9 million and $46.0 million for the three months ended December 31, 2015 and December 31, 2014, respectively, and $123.7 million and $146.4 million for the years ended December 31, 2015 and December 31, 2014, respectively. For the year ended December 31, 2015, integration costs include $23.9 million of transition costs associated with the Emeritus merger and organizational restructuring (such as severance and retention payments and recruiting expenses), $42.6 million of third party consulting expenses directly related to the integration of Emeritus (in areas such as cost savings and synergy realization, branding and technology and systems work), and $29.4 million of internal costs such as training, travel and labor, reflecting time spent by Company personnel on integration activities and projects. EMR roll-out costs of $8.9 million for the year ended December 31, 2015 include third party consulting expenses and internal costs such as training, travel and labor, reflecting time spent by Company personnel on the EMR roll-out project. Transaction and transaction-related costs of $18.9 million for the year ended December 31, 2015 include third party costs directly related to the acquisition of Emeritus, other acquisition and disposition activity, community financing and leasing activity and corporate capital structure assessment activities (including shareholder relations advisory matters), 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 Regarding Non-GAAP Financial Measures. This supplemental presentation contains financial measures utilized by management to evaluate the Company's financial and operating performance that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). Each of these measures, Adjusted EBITDA, CFFO, CFFO per share, and Facility Operating Income, should not be considered in isolation from or as superior or a substitute for net income (loss), income (loss) from operations, cash flows provided by or used in operations, or other financial measures determined in accordance with GAAP. This supplemental presentation should be read in conjunction with the Company's earnings release dated February 8, 2016 and the consolidated financial statements included therein. The Company strongly urges you to review the information under "Reconciliation of Non-GAAP Financial Measures" in such earnings release for the Company's definitions of each of these non-GAAP financial measures and a reconciliation of each measure to net income (loss). The Company cautions investors that amounts presented in accordance with the Company's definitions of such financial measures may not be comparable to similar measures disclosed by other companies, because not all companies calculate these non-GAAP financial measures in the same manner. |
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Brookdale Senior Living Inc. | |||||||||||
Segment Financial Data | |||||||||||
As of December 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 (4) | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||
Revenue | 132,349 | 133,441 | 155,227 | 161,295 | 582,312 | 163,486 | 164,409 | 164,415 | 165,630 | 657,940 | ||||||||||||||||||||||||||||||
Expenses | 76,119 | 76,550 | 88,022 | 92,738 | 333,429 | 92,962 | 92,365 | 94,081 | 93,275 | 372,683 | ||||||||||||||||||||||||||||||
Segment Operating Income | 56,230 | 56,891 | 67,205 | 68,557 | 248,883 | 70,524 | 72,044 | 70,334 | 72,355 | 285,257 | ||||||||||||||||||||||||||||||
Segment Operating Margin | 42.5 | % | 42.6 | % | 43.3 | % | 42.5 | % | 42.7 | % | 43.1 | % | 43.8 | % | 42.8 | % | 43.7 | % | 43.4 | % | ||||||||||||||||||||
Number of communities (period end) | 74 | 74 | 100 | 99 | 99 | 99 | 98 | 98 | 95 | 95 | ||||||||||||||||||||||||||||||
Total average units(5) | 14,161 | 14,162 | 16,594 | 17,315 | 15,558 | 17,369 | 17,279 | 17,289 | 17,293 | 17,308 | ||||||||||||||||||||||||||||||
Weighted average unit occupancy | 89.3 | % | 88.9 | % | 89.8 | % | 89.9 | % | 89.5 | % | 88.8 | % | 88.4 | % | 88.7 | % | 89.1 | % | 88.8 | % | ||||||||||||||||||||
Senior Housing average monthly revenue per unit(6) | $ | 3,490 | $ | 3,532 | $ | 3,472 | $ | 3,454 | $ | 3,485 | $ | 3,533 | $ | 3,589 | $ | 3,573 | $ | 3,584 | $ | 3,570 | ||||||||||||||||||||
Assisted Living | FY 2014 (2) | FY 2015 | ||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 (4) | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||
Revenue | 277,431 | 277,230 | 516,640 | 614,262 | 1,685,563 | 617,344 | 611,838 | 608,393 | 607,882 | 2,445,457 | ||||||||||||||||||||||||||||||
Expenses | 172,439 | 172,984 | 328,486 | 403,165 | 1,077,074 | 393,838 | 388,479 | 397,180 | 388,657 | 1,568,154 | ||||||||||||||||||||||||||||||
Segment Operating Income | 104,992 | 104,246 | 188,154 | 211,097 | 608,489 | 223,506 | 223,359 | 211,213 | 219,225 | 877,303 | ||||||||||||||||||||||||||||||
Segment Operating Margin | 37.8 | % | 37.6 | % | 36.4 | % | 34.4 | % | 36.1 | % | 36.2 | % | 36.5 | % | 34.7 | % | 36.1 | % | 35.9 | % | ||||||||||||||||||||
Number of communities (period end) | 440 | 440 | 841 | 838 | 838 | 837 | 833 | 832 | 820 | 820 | ||||||||||||||||||||||||||||||
Total average units(5) | 22,435 | 22,463 | 45,260 | 55,241 | 36,350 | 55,073 | 54,700 | 54,592 | 54,492 | 54,714 | ||||||||||||||||||||||||||||||
Weighted average unit occupancy | 89.6 | % | 89.0 | % | 88.8 | % | 88.2 | % | 88.7 | % | 87.2 | % | 86.4 | % | 86.5 | % | 86.6 | % | 86.7 | % | ||||||||||||||||||||
Senior Housing average monthly revenue per unit(6) | $ | 4,599 | $ | 4,622 | $ | 4,286 | $ | 4,203 | $ | 4,356 | $ | 4,283 | $ | 4,316 | $ | 4,292 | $ | 4,296 | $ | 4,297 | ||||||||||||||||||||
CCRCs - Rental | FY 2014 (1) (2) (3) | FY 2015 | ||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1(4) | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||
Revenue | 97,944 | 98,212 | 144,074 | 152,943 | 493,173 | 155,991 | 151,561 | 149,572 | 147,448 | 604,572 | ||||||||||||||||||||||||||||||
Expenses | 71,114 | 72,519 | 109,582 | 118,297 | 371,512 | 117,420 | 115,701 | 108,177 | 112,779 | 454,077 | ||||||||||||||||||||||||||||||
Segment Operating Income | 26,830 | 25,693 | 34,492 | 34,646 | 121,661 | 38,571 | 35,860 | 41,395 | 34,669 | 150,495 | ||||||||||||||||||||||||||||||
Segment Operating Margin | 27.4 | % | 26.2 | % | 23.9 | % | 22.7 | % | 24.7 | % | 24.7 | % | 23.7 | % | 27.7 | % | 23.5 | % | 24.9 | % | ||||||||||||||||||||
Number of communities (period end) | 26 | 26 | 45 | 45 | 45 | 45 | 46 | 45 | 44 | 44 | ||||||||||||||||||||||||||||||
Total average units(5) | 6,457 | 6,469 | 9,783 | 10,483 | 8,298 | 10,480 | 10,543 | 10,515 | 10,405 | 10,486 | ||||||||||||||||||||||||||||||
Weighted average unit occupancy | 86.6 | % | 85.9 | % | 85.1 | % | 85.9 | % | 85.8 | % | 86.0 | % | 83.6 | % | 83.9 | % | 83.9 | % | 84.4 | % | ||||||||||||||||||||
Senior Housing average monthly revenue per unit(6) | $ | 5,839 | $ | 5,894 | $ | 5,740 | $ | 5,637 | $ | 5,757 | $ | 5,744 | $ | 5,697 | $ | 5,626 | $ | 5,601 | $ | 5,668 | ||||||||||||||||||||
CCRCs - Entry Fee | FY 2014 (2) (3) | FY 2015 | ||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||
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(5) | 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(6) | $ | 5,124 | $ | 5,091 | $ | 5,085 | $ | - | $ | 5,103 | $ | - | $ | - | $ | - | $ | - | $ | - |
Total Senior Housing | FY 2014 (2) | FY 2015 | ||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1(4) | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||
Revenue | 586,893 | 587,983 | 860,086 | 928,500 | 2,963,462 | 936,821 | 927,808 | 922,380 | 920,960 | 3,707,969 | ||||||||||||||||||||||||||||||
Expenses | 379,206 | 382,786 | 559,804 | 614,200 | 1,935,996 | 604,220 | 596,545 | 599,438 | 594,711 | 2,394,914 | ||||||||||||||||||||||||||||||
Operating Income | 207,687 | 205,197 | 300,282 | 314,300 | 1,027,466 | 332,601 | 331,263 | 322,942 | 326,249 | 1,313,055 | ||||||||||||||||||||||||||||||
Operating Margin | 35.4 | % | 34.9 | % | 34.9 | % | 33.9 | % | 34.7 | % | 35.5 | % | 35.7 | % | 35.0 | % | 35.4 | % | 35.4 | % | ||||||||||||||||||||
G&A Allocation(7) | 24,396 | 22,589 | 33,912 | 35,365 | 116,262 | 42,093 | 37,399 | 36,968 | 42,881 | 159,341 | ||||||||||||||||||||||||||||||
Adjusted Operating Income | 183,291 | 182,608 | 266,370 | 278,935 | 911,204 | 290,508 | 293,864 | 285,974 | 283,368 | 1,153,714 | ||||||||||||||||||||||||||||||
Adjusted Operating Margin | 31.2 | % | 31.1 | % | 31.0 | % | 30.0 | % | 30.7 | % | 31.0 | % | 31.7 | % | 31.0 | % | 30.8 | % | 31.1 | % |
Number of communities (period end) | 555 | 555 | 986 | 982 | 982 | 981 | 977 | 975 | 959 | 959 | ||||||||||||||||||||||||||||||
Total average units(5) | 48,580 | 48,628 | 74,591 | 83,039 | 63,710 | 82,922 | 82,522 | 82,396 | 82,190 | 82,508 | ||||||||||||||||||||||||||||||
Weighted average unit occupancy | 88.6 | % | 88.1 | % | 88.5 | % | 88.3 | % | 88.3 | % | 87.4 | % | 86.5 | % | 86.7 | % | 86.8 | % | 86.8 | % | ||||||||||||||||||||
Senior Housing average monthly revenue per unit(6) | $ | 4,491 | $ | 4,518 | $ | 4,317 | $ | 4,220 | $ | 4,357 | $ | 4,305 | $ | 4,331 | $ | 4,303 | $ | 4,302 | $ | 4,310 |
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Brookdale Senior Living Inc. | |||||||||||
Segment Financial Data | |||||||||||
As of December 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 | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||
Revenue | 63,417 | 65,534 | 95,426 | 113,458 | 337,835 | 115,411 | 116,170 | 117,702 | 119,875 | 469,158 | ||||||||||||||||||||||||||||||
Expenses | 50,664 | 52,629 | 77,280 | 93,799 | 274,372 | 92,669 | 98,446 | 100,282 | 102,551 | 393,948 | ||||||||||||||||||||||||||||||
Segment Operating Income | 12,753 | 12,905 | 18,146 | 19,659 | 63,463 | 22,742 | 17,724 | 17,420 | 17,324 | 75,210 | ||||||||||||||||||||||||||||||
Segment Operating Margin | 20.1 | % | 19.7 | % | 19.0 | % | 17.3 | % | 18.8 | % | 19.7 | % | 15.3 | % | 14.8 | % | 14.5 | % | 16.0 | % | ||||||||||||||||||||
G&A Allocation(7) | 5,642 | 5,908 | 5,709 | 9,050 | 26,309 | 8,251 | 7,811 | 6,678 | 8,203 | 30,943 | ||||||||||||||||||||||||||||||
Adjusted Segment Operating Income | 7,111 | 6,997 | 12,437 | 10,609 | 37,154 | 14,491 | 9,913 | 10,742 | 9,121 | 44,267 | ||||||||||||||||||||||||||||||
Adjusted Segment Operating Margin | 11.2 | % | 10.7 | % | 13.0 | % | 9.4 | % | 11.0 | % | 12.6 | % | 8.5 | % | 9.1 | % | 7.6 | % | 9.4 | % | ||||||||||||||||||||
Brookdale units served: | ||||||||||||||||||||||||||||||||||||||||
Outpatient Therapy | 52,112 | 52,270 | 56,615 | 54,007 | 59,660 | 61,385 | 66,581 | 63,938 | ||||||||||||||||||||||||||||||||
Home Health | 47,337 | 47,397 | 49,290 | 55,960 | 63,497 | 64,307 | 66,078 | 65,936 | ||||||||||||||||||||||||||||||||
Outpatient Therapy treatment codes | 812,632 | 798,754 | 762,993 | 679,057 | 3,053,436 | 636,413 | 667,836 | 612,970 | 588,984 | 2,506,203 | ||||||||||||||||||||||||||||||
Home Health average census | 5,084 | 5,257 | 10,314 | 12,723 | 8,345 | 13,767 | 13,884 | 14,126 | 15,065 | 14,211 |
Total Senior Housing and Brookdale Ancillary Services | FY 2014 (2) | FY 2015 | ||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 (4) | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||
Revenue | 650,310 | 653,517 | 955,512 | 1,041,958 | 3,301,297 | 1,052,232 | 1,043,978 | 1,040,082 | 1,040,835 | 4,177,127 | ||||||||||||||||||||||||||||||
Expenses | 429,870 | 435,415 | 637,084 | 707,999 | 2,210,368 | 696,889 | 694,991 | 699,720 | 697,262 | 2,788,862 | ||||||||||||||||||||||||||||||
Operating Income | 220,440 | 218,102 | 318,428 | 333,959 | 1,090,929 | 355,343 | 348,987 | 340,362 | 343,573 | 1,388,265 | ||||||||||||||||||||||||||||||
Operating Margin | 33.9 | % | 33.4 | % | 33.3 | % | 32.1 | % | 33.0 | % | 33.8 | % | 33.4 | % | 32.7 | % | 33.0 | % | 33.2 | % | ||||||||||||||||||||
G&A Allocation(7) | 30,038 | 28,497 | 39,621 | 44,415 | 142,571 | 50,344 | 45,210 | 43,646 | 51,084 | 190,284 | ||||||||||||||||||||||||||||||
Adjusted Operating Income | 190,402 | 189,605 | 278,807 | 289,544 | 948,358 | 304,999 | 303,777 | 296,716 | 292,489 | 1,197,981 | ||||||||||||||||||||||||||||||
Adjusted Operating Margin | 29.3 | % | 29.0 | % | 29.2 | % | 27.8 | % | 28.7 | % | 29.0 | % | 29.1 | % | 28.5 | % | 28.1 | % | 28.7 | % |
Management Services | FY 2014 (2) | FY 2015 | ||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 (4) | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||
Revenue (Management Fees) | 7,402 | 7,489 | 10,428 | 16,920 | 42,239 | 15,097 | 14,839 | 14,694 | 15,553 | 60,183 | ||||||||||||||||||||||||||||||
Expenses (G&A Allocation)(7) | 6,116 | 5,649 | 7,453 | 10,732 | 29,950 | 9,755 | 8,878 | 9,978 | 11,506 | 40,117 | ||||||||||||||||||||||||||||||
Segment Operating Income | 1,286 | 1,840 | 2,975 | 6,188 | 12,289 | 5,342 | 5,961 | 4,716 | 4,047 | 20,066 | ||||||||||||||||||||||||||||||
Segment Operating Margin | 17.4 | % | 24.6 | % | 28.5 | % | 36.6 | % | 29.1 | % | 35.4 | % | 40.2 | % | 32.1 | % | 26.0 | % | 33.3 | % | ||||||||||||||||||||
Number of communities (period end) | 92 | 92 | 161 | 161 | 161 | 160 | 160 | 157 | 164 | 164 | ||||||||||||||||||||||||||||||
Total average units(5) | 17,140 | 16,978 | 20,919 | 27,318 | 20,589 | 27,185 | 27,026 | 26,590 | 26,464 | 26,834 | ||||||||||||||||||||||||||||||
Weighted average occupancy | 86.3 | % | 86.8 | % | 86.3 | % | 86.4 | % | 86.5 | % | 86.5 | % | 85.2 | % | 85.8 | % | 86.6 | % | 86.0 | % | ||||||||||||||||||||
Senior Housing average monthly revenue per unit(6) | $ | 3,706 | $ | 3,701 | $ | 3,949 | $ | 4,236 | $ | 3,943 | $ | 4,277 | $ | 4,238 | $ | 4,224 | $ | 4,246 | $ | 4,249 |
Total Senior Housing, Brookdale Ancillary and Management Services | FY 2014 (2) | FY 2015 | ||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 (4) | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||
Revenue | 657,712 | 661,006 | 965,940 | 1,058,878 | 3,343,536 | 1,067,329 | 1,058,817 | 1,054,776 | 1,056,388 | 4,237,310 | ||||||||||||||||||||||||||||||
Expenses | 429,870 | 435,415 | 637,084 | 707,999 | 2,210,368 | 696,889 | 694,991 | 699,720 | 697,262 | 2,788,862 | ||||||||||||||||||||||||||||||
Operating Income | 227,842 | 225,591 | 328,856 | 350,879 | 1,133,168 | 370,440 | 363,826 | 355,056 | 359,126 | 1,448,448 | ||||||||||||||||||||||||||||||
Operating Margin | 34.6 | % | 34.1 | % | 34.0 | % | 33.1 | % | 33.9 | % | 34.7 | % | 34.4 | % | 33.7 | % | 34.0 | % | 34.2 | % | ||||||||||||||||||||
G&A Allocation (7) | 36,154 | 34,146 | 47,074 | 55,147 | 172,521 | 60,099 | 54,088 | 53,624 | 62,590 | 230,401 | ||||||||||||||||||||||||||||||
Adjusted Operating Income | 191,688 | 191,445 | 281,782 | 295,732 | 960,647 | 310,341 | 309,738 | 301,432 | 296,536 | 1,218,047 | ||||||||||||||||||||||||||||||
Adjusted Operating Margin | 29.1 | % | 29.0 | % | 29.2 | % | 27.9 | % | 28.7 | % | 29.1 | % | 29.3 | % | 28.6 | % | 28.1 | % | 28.7 | % |
Page 3
Brookdale Senior Living Inc. | |||||||||||
Segment Financial Data | |||||||||||
As of December 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) Certain prior period expense amounts have been reclassified to conform to the current financial statement presentation, with no effect on the Company's consolidated financial position or results of operations. | |||||||||||
(5) Total average units operated represents the average number of units operated during the period, excluding equity homes. | |||||||||||
(6) Senior Housing 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. | |||||||||||
(7) Excludes non-cash stock-based compensation expense and integration, transaction, transaction-related and EMR roll-out costs. |
Page 4
Brookdale Senior Living Inc. | |||||||||||
Senior Housing Data by Ownership Type | |||||||||||
As of December 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 (2) | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||
Revenue | 277,700 | 277,748 | 369,078 | 385,654 | 1,310,180 | 412,555 | 411,576 | 409,249 | 412,678 | 1,646,058 | ||||||||||||||||||||||||||||||
Expenses | 182,706 | 184,773 | 247,359 | 260,901 | 875,739 | 276,225 | 274,608 | 274,427 | 277,509 | 1,102,769 | ||||||||||||||||||||||||||||||
Segment Operating Income | 94,994 | 92,975 | 121,719 | 124,753 | 434,441 | 136,330 | 136,968 | 134,822 | 135,169 | 543,289 | ||||||||||||||||||||||||||||||
Segment Operating Margin | 34.2 | % | 33.5 | % | 33.0 | % | 32.3 | % | 33.2 | % | 33.0 | % | 33.3 | % | 32.9 | % | 32.8 | % | 33.0 | % | ||||||||||||||||||||
Number of communities (period end) | 226 | 226 | 403 | 399 | 422 | 424 | 424 | 413 | ||||||||||||||||||||||||||||||||
Total average units(3) | 22,775 | 22,799 | 32,079 | 34,904 | 36,923 | 37,182 | 37,128 | 37,431 | ||||||||||||||||||||||||||||||||
Weighted average unit occupancy | 88.5 | % | 88.0 | % | 88.2 | % | 87.6 | % | 86.5 | % | 85.4 | % | 85.7 | % | 85.9 | % | ||||||||||||||||||||||||
Senior Housing average monthly revenue per unit(4) | $ | 4,516 | $ | 4,532 | $ | 4,302 | $ | 4,202 | $ | 4,305 | $ | 4,319 | $ | 4,286 | $ | 4,277 | ||||||||||||||||||||||||
Leased Properties with Purchase Options | FY 2014 (1) | FY 2015 | ||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 (2) | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||
Revenue | 77,863 | 77,418 | 87,008 | 86,441 | 328,730 | 82,064 | 79,516 | 79,568 | 75,462 | 316,610 | ||||||||||||||||||||||||||||||
Expenses | 49,497 | 49,719 | 57,026 | 57,839 | 214,081 | 52,414 | 50,638 | 51,187 | 47,852 | 202,091 | ||||||||||||||||||||||||||||||
Segment Operating Income | 28,366 | 27,699 | 29,982 | 28,602 | 114,649 | 29,650 | 28,878 | 28,381 | 27,610 | 114,519 | ||||||||||||||||||||||||||||||
Segment Operating Margin | 36.4 | % | 35.8 | % | 34.5 | % | 33.1 | % | 34.9 | % | 36.1 | % | 36.3 | % | 35.7 | % | 36.6 | % | 36.2 | % | ||||||||||||||||||||
Number of communities (period end) | 84 | 84 | 111 | 112 | 103 | 101 | 101 | 96 | ||||||||||||||||||||||||||||||||
Total average units(3) | 6,391 | 6,391 | 7,347 | 7,555 | 7,027 | 6,803 | 6,806 | 6,340 | ||||||||||||||||||||||||||||||||
Weighted average unit occupancy | 89.0 | % | 88.4 | % | 88.6 | % | 88.5 | % | 87.8 | % | 86.7 | % | 87.4 | % | 88.2 | % | ||||||||||||||||||||||||
Senior Housing average monthly revenue per unit(4) | $ | 4,447 | $ | 4,440 | $ | 4,394 | $ | 4,312 | $ | 4,433 | $ | 4,492 | $ | 4,458 | $ | 4,498 | ||||||||||||||||||||||||
Leased Properties without Purchase Options | FY 2014 (1) | FY 2015 | ||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 (2) | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||
Revenue | 231,330 | 232,817 | 404,000 | 456,405 | 1,324,552 | 442,202 | 436,716 | 433,563 | 432,820 | 1,745,301 | ||||||||||||||||||||||||||||||
Expenses | 147,003 | 148,294 | 255,419 | 295,460 | 846,176 | 275,581 | 271,299 | 273,824 | 269,350 | 1,090,054 | ||||||||||||||||||||||||||||||
Segment Operating Income | 84,327 | 84,523 | 148,581 | 160,945 | 478,376 | 166,621 | 165,417 | 159,739 | 163,470 | 655,247 | ||||||||||||||||||||||||||||||
Segment Operating Margin | 36.5 | % | 36.3 | % | 36.8 | % | 35.3 | % | 36.1 | % | 37.7 | % | 37.9 | % | 36.8 | % | 37.8 | % | 37.5 | % | ||||||||||||||||||||
Number of communities (period end) | 245 | 245 | 472 | 471 | 456 | 452 | 450 | 450 | ||||||||||||||||||||||||||||||||
Total average units(3) | 19,414 | 19,438 | 35,165 | 40,580 | 38,972 | 38,537 | 38,462 | 38,419 | ||||||||||||||||||||||||||||||||
Weighted average unit occupancy | 88.2 | % | 87.9 | % | 88.6 | % | 88.8 | % | 88.2 | % | 87.4 | % | 87.5 | % | 87.3 | % | ||||||||||||||||||||||||
Senior Housing average monthly revenue per unit(4) | $ | 4,491 | $ | 4,533 | $ | 4,314 | $ | 4,218 | $ | 4,282 | $ | 4,313 | $ | 4,289 | $ | 4,294 |
Total Senior Housing | FY 2014 (1) | FY 2015 | ||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 (2) | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||
Revenue | 586,893 | 587,983 | 860,086 | 928,500 | 2,963,462 | 936,821 | 927,808 | 922,380 | 920,960 | 3,707,969 | ||||||||||||||||||||||||||||||
Expenses | 379,206 | 382,786 | 559,804 | 614,200 | 1,935,996 | 604,220 | 596,545 | 599,438 | 594,711 | 2,394,914 | ||||||||||||||||||||||||||||||
Operating Income | 207,687 | 205,197 | 300,282 | 314,300 | 1,027,466 | 332,601 | 331,263 | 322,942 | 326,249 | 1,313,055 | ||||||||||||||||||||||||||||||
Operating Margin | 35.4 | % | 34.9 | % | 34.9 | % | 33.9 | % | 34.7 | % | 35.5 | % | 35.7 | % | 35.0 | % | 35.4 | % | 35.4 | % |
Number of communities (period end) | 555 | 555 | 986 | 982 | 981 | 977 | 975 | 959 | ||||||||||||||||||||||||||||||||
Total average units(3) | 48,580 | 48,628 | 74,591 | 83,039 | 82,922 | 82,522 | 82,396 | 82,190 | ||||||||||||||||||||||||||||||||
Weighted average unit occupancy | 88.6 | % | 88.1 | % | 88.5 | % | 88.3 | % | 87.4 | % | 86.5 | % | 86.7 | % | 86.8 | % | ||||||||||||||||||||||||
Senior Housing average monthly revenue per unit(4) | $ | 4,491 | $ | 4,518 | $ | 4,317 | $ | 4,220 | $ | 4,305 | $ | 4,331 | $ | 4,303 | $ | 4,302 |
(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) Certain prior period expense amounts have been reclassified to conform to the current financial statement presentation, with no effect on the Company's consolidated financial position or results of operations. |
(3) Total average units operated represents the average number of units operated during the period, excluding equity homes. |
(4) Senior Housing 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. |
Page 5
Brookdale Senior Living Inc. | ||||||
Same Community and Capital Expenditure Information | ||||||
As of December 31, 2015 |
Same Community Information |
($ in 000s, except Avg. Mo. Revenue/Unit)
Legacy Brookdale Senior Housing | Legacy Brookdale Senior Housing | |||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2015 | 2014 | % Change | 2015 | 2014 | % Change | |||||||||||||||||||
Revenue | $ | 493,094 | $ | 490,942 | 0.4 | % | $ | 1,932,950 | $ | 1,905,869 | 1.4 | % | ||||||||||||
Operating Expense | 318,962 | 329,739 | -3.3 | % | 1,240,908 | 1,235,309 | 0.5 | % | ||||||||||||||||
Same Community Operating Income | $ | 174,132 | $ | 161,203 | 8.0 | % | $ | 692,042 | $ | 670,560 | 3.2 | % | ||||||||||||
Same Communitity Operating Margin | 35.3 | % | 32.8 | % | 2.5 | % | 35.8 | % | 35.2 | % | 0.6 | % | ||||||||||||
# Communities | 511 | 511 | 505 | 505 | ||||||||||||||||||||
Avg. Period Occupancy | 87.2 | % | 89.0 | % | -1.8 | % | 87.3 | % | 89.0 | % | -1.7 | % | ||||||||||||
Avg. Mo. Revenue/Unit | $ | 4,616 | $ | 4,506 | 2.4 | % | $ | 4,626 | $ | 4,475 | 3.4 | % | ||||||||||||
Legacy Emeritus Senior Housing | Legacy Emeritus Senior Housing | |||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2015 | 2014 | % Change | 2015 | 2014 | % Change | |||||||||||||||||||
Revenue | $ | 388,620 | $ | 394,181 | -1.4 | % | $ | 1,561,307 | $ | 1,583,870 | -1.4 | % | ||||||||||||
Operating Expense | 250,525 | 255,531 | -2.0 | % | 1,017,816 | 1,032,754 | -1.4 | % | ||||||||||||||||
Same Community Operating Income | $ | 138,095 | $ | 138,650 | -0.4 | % | $ | 543,491 | $ | 551,116 | -1.4 | % | ||||||||||||
Same Communitity Operating Margin | 35.5 | % | 35.2 | % | 0.3 | % | 34.8 | % | 34.8 | % | 0.0 | % | ||||||||||||
# Communities | 433 | 433 | 433 | 433 | ||||||||||||||||||||
Avg. Period Occupancy | 86.7 | % | 88.5 | % | -1.8 | % | 86.7 | % | 88.9 | % | -2.2 | % | ||||||||||||
Avg. Mo. Revenue/Unit | $ | 3,937 | $ | 3,908 | 0.7 | % | $ | 3,943 | $ | 3,903 | 1.0 | % | ||||||||||||
Combined Brookdale and Emeritus Senior Housing | Combined Brookdale and Emeritus Senior Housing | |||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2015 | 2014 | % Change | 2015 | 2014 | % Change | |||||||||||||||||||
Revenue | $ | 881,714 | $ | 885,123 | -0.4 | % | $ | 3,494,257 | $ | 3,489,739 | 0.1 | % | ||||||||||||
Operating Expense | 569,487 | 585,270 | -2.7 | % | 2,258,724 | 2,268,063 | -0.4 | % | ||||||||||||||||
Same Community Operating Income | $ | 312,227 | $ | 299,853 | 4.1 | % | $ | 1,235,533 | $ | 1,221,676 | 1.1 | % | ||||||||||||
Same Communitity Operating Margin | 35.4 | % | 33.9 | % | 1.5 | % | 35.4 | % | 35.0 | % | 0.4 | % | ||||||||||||
# Communities | 944 | 944 | 938 | 938 | ||||||||||||||||||||
Avg. Period Occupancy | 86.9 | % | 88.8 | % | -1.9 | % | 87.0 | % | 88.9 | % | -1.9 | % | ||||||||||||
Avg. Mo. Revenue/Unit | $ | 4,290 | $ | 4,218 | 1.7 | % | $ | 4,293 | $ | 4,196 | 2.3 | % | ||||||||||||
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 December 31, | Year Ended December 31, | |||||||||||||||||||||||
Type | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Recurring | $ | 16,484 | $ | 16,353 | $ | 69,720 | $ | 50,762 | ||||||||||||||||
Reimbursements | (2,506 | ) | - | (8,783 | ) | - | ||||||||||||||||||
Net Recurring | 13,978 | 16,353 | 60,937 | 50,762 | ||||||||||||||||||||
EBITDA-enhancing / Major Projects (1) | 72,484 | 35,727 | 179,720 | 109,209 | ||||||||||||||||||||
Program Max, net (2) | 12,384 | 16,210 | 37,428 | 60,587 | ||||||||||||||||||||
Corporate, integration and other (3) | 22,376 | 16,850 | 83,822 | 49,055 | ||||||||||||||||||||
Total Capital Expenditures, net of lessor reimbursement (4) | $ | 121,222 | $ | 85,140 | $ | 361,907 | $ | 269,613 |
(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 $16.6 million and $49.7 million for the three and twelve months ended December 31, 2015, respectively. There was no third party lessor funding received during 2014. | ||||||||||||
(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 $6.6 million for each of the three months ended December 31, 2015 and 2014, respectively and $28.3 million and $34.6 million for the year ended December 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) Amounts shown are gross expenditures (including related payables), net of lessor reimbursements. Approximately $15.5 million and $16.9 million of expense was recognized during the three months ended December 31, 2015 and 2014, respectively, and $63.5 million and $51.4 million was recognized during the year ended December 31, 2015 and 2014, respectively for normal repairs and maintenance and capital spend under $1,500 per invoice, except for unit turnovers. |
Page 6
Brookdale Senior Living Inc. |
Capital Structure - selected financial information |
As of December 31, 2015 |
($ 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 | ||||||||||||||||||||||
2016 (3) | $ | 173,454 | 4.83 | % | $ | - | - | $ | 62,150 | 7.92 | % | $ | 235,604 | |||||||||||||||
2017 | 300,106 | 5.50 | % | - | - | 91,992 | 8.43 | % | 392,098 | |||||||||||||||||||
2018 | 1,174,220 | 4.43 | % | - | - | 115,541 | 7.87 | % | 1,289,761 | |||||||||||||||||||
2019 | 141,303 | 5.72 | % | - | - | 99,276 | 7.45 | % | 240,579 | |||||||||||||||||||
2020 | 488,678 | 4.96 | % | 310,000 | 3.82 | % | 48,876 | 7.57 | % | 847,554 | ||||||||||||||||||
Thereafter | 1,355,064 | 3.71 | % | - | - | 2,071,753 | 8.16 | % | 3,426,817 | |||||||||||||||||||
Total | $ | 3,632,825 | 4.39 | % | $ | 310,000 | 3.82 | % | $ | 2,489,588 | 8.11 | % | $ | 6,432,413 |
Coverage Ratios |
Year ended December 31, 2015 (4) | ||||||||||||||||||||
Senior Housing | ||||||||||||||||||||
Units | Operating Income | Adj. Operating Income ** | Interest/Cash Lease Payments | Coverage | ||||||||||||||||
Owned communities | 36,304 | $ | 543,289 | $ | 448,264 | $ | 173,484 | 2.6x | ||||||||||||
Leased communities * | 44,763 | $ | 769,766 | $ | 651,005 | $ | 611,104 | 1.1x |
* Leased communities include capital leases. | ||||||||||
** Adjusted for 5% management fee and capital expenditures @ $350/unit. |
Debt Amortization |
Year ended December 31, | ||||||||
2015 | 2014 | |||||||
Scheduled debt amortization | $ | 84,597 | $ | 65,505 | ||||
Lease financing debt amortization - FMV or no purchase option (5) | 51,296 | 28,618 | ||||||
Lease financing debt amortization - bargain purchase option | 6,116 | 13,417 | ||||||
Total debt amortization | $ | 142,009 | $ | 107,540 |
Line Availability |
12/31/14 | 03/31/15 | 06/30/15 | 09/30/15 | 12/31/15 | ||||||||||||||||
Total line commitment | $ | 500,000 | $ | 500,000 | $ | 500,000 | $ | 500,000 | $ | 500,000 | ||||||||||
Line of credit (6) | $ | 488,389 | $ | 466,746 | $ | 468,092 | $ | 443,378 | $ | 416,605 | ||||||||||
Ending line balance | 100,000 | 300,000 | 270,000 | 310,000 | 310,000 | |||||||||||||||
Available to draw | $ | 388,389 | $ | 166,746 | $ | 198,092 | $ | 133,378 | $ | 106,605 | ||||||||||
Cash and cash equivalents | 104,083 | 115,182 | 78,496 | 70,391 | 88,029 | |||||||||||||||
Total liquidity (available to draw + cash) | $ | 492,472 | $ | 281,928 | $ | 276,588 | $ | 203,769 | $ | 194,634 | ||||||||||
Total letters of credit outstanding | $ | 72,730 | $ | 83,935 | $ | 83,685 | $ | 83,940 | $ | 82,413 |
Leverage Ratios (7) |
Annualized | |||||||||
Leverage | |||||||||
Year ended December 31, 2015 Adjusted EBITDAR | $ | 1,282,310 | |||||||
Less: cash lease expense | (370,105 | ) | |||||||
Adjusted EBITDA | 912,205 | ||||||||
Less: cash capital and financing lease payments | (233,824 | ) | |||||||
Adjusted EBITDA after capital and financing lease payments | 678,381 | ||||||||
Debt (1) | 3,632,825 | 5.4 | x | ||||||
Line of credit | 310,000 | ||||||||
Less: unrestricted cash | (88,029 | ) | |||||||
Less: cash held as collateral against existing debt | (3,429 | ) | |||||||
Total net debt | 3,851,367 | 5.7 | x | ||||||
Plus: cash capital and financing lease payments multiplied by 8 | 1,870,592 | ||||||||
Total net debt including capital and financing leases | 5,721,959 | 6.3 | x | ||||||
Cash lease expense multiplied by 8 | 2,960,840 | ||||||||
Total adjusted net debt | $ | 8,682,799 | 6.8 | x |
Debt Structure |
Weighted | ||||||||
Balance | rate (2) | |||||||
Fixed rate debt (1) | $ | 2,356,258 | 5.19 | % | ||||
Variable rate debt (1) | 1,276,567 | 2.90 | % | |||||
Capital and financing leases | 2,489,588 | 8.11 | % | |||||
Line of credit (cash borrowings) | 310,000 | 3.82 | % | |||||
Total debt | $ | 6,432,413 | ||||||
Balance | % of total | |||||||
Variable rate debt with interest rate caps (1) (8) | $ | 953,641 | 74.7 | % | ||||
Variable rate debt - unhedged (1) | 322,926 | 25.3 | % | |||||
Total variable rate debt (1) | $ | 1,276,567 | 100.0 | % |
(1) Includes mortgage debt, convertible notes and other notes payable, but excludes capital and financing leases and line of credit. | ||||||||||||||||||
(2) Pertaining to variable rate debt, reflects a) market rates as of December 31, 2015 and b) applicable cap rates for hedged debt. | ||||||||||||||||||
(3) Maturities of mortgage debt in 2016 includes the following debt instruments with post-2016 scheduled maturity dates: (i) $61 million of debt on Assets Held for Sale and (ii) 29 million of demand notes payable to the unconsolidated entrance fee venture, which we utilize in certain states in lieu of cash reserves. | ||||||||||||||||||
(4) Senior housing operating income and adjusted operating income exclude Brookdale Ancillary Services segment operating income. | ||||||||||||||||||
(5) Payments are included in CFFO. | ||||||||||||||||||
(6) The actual amount available to borrow under the line of credit 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) Adjusted EBITDAR and Adjusted EBITDA as reported in the calculation of leverage ratios exclude integration, transaction, transaction-related and EMR roll-out costs of $116.8 million (excluding $6.9 million of debt modification costs included in CFFO) and cash lease payments for communities acquired during the year, of which $2.0 million and $5.1 million related to operating leases and capital and financial leases, respectively. | ||||||||||||||||||
(8) Weighted cap rate for stated reporting period of 4.33% is materially above current market rates, therefore caps have no impact on consolidated interest expense for given period. |
Page 7
Brookdale Senior Living Inc. | |
CFFO Reconciliation | |
As of December 31, 2015 |
Revenue Reconciliation (1) |
($ in 000s except average monthly revenue per quarter) |
FY 2014 | FY 2015 | Q4 2015 CFFO Distribution | ||||||||||||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year | Q1 (3) | Q2 | Q3 | Q4 | Full Year | Owned | Other (4) | 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 | $ | 4,331 | $ | 4,303 | $ | 4,302 | $ | 4,310 | $ | 4,277 | $ | 4,344 | $ | - | ||||||||||||||||||||||||||
Average monthly units (excluding equity homes) available | 48,562 | 48,608 | 74,538 | 82,995 | 63,731 | 82,927 | 82,470 | 82,358 | 82,132 | 82,524 | 37,442 | 44,752 | - | |||||||||||||||||||||||||||||||||||||||
Average occupancy for the quarter | 88.6 | % | 88.1 | % | 88.5 | % | 88.3 | % | 88.3 | % | 87.4 | % | 86.5 | % | 86.7 | % | 86.8 | % | 86.8 | % | 85.9 | % | 87.0 | % | - | |||||||||||||||||||||||||||
Senior Housing resident fee revenue | $ | 579,691 | $ | 580,436 | $ | 854,329 | $ | 927,786 | $ | 2,942,242 | $ | 936,054 | $ | 926,878 | $ | 921,761 | $ | 920,072 | $ | 3,704,765 | $ | 412,678 | $ | 507,394 | $ | - | ||||||||||||||||||||||||||
Add: Brookdale Ancillary Services segment revenue | 63,417 | 65,534 | 95,426 | 113,458 | 337,835 | 115,411 | 116,170 | 117,702 | 119,875 | 469,158 | - | 119,875 | - | |||||||||||||||||||||||||||||||||||||||
Add: Management fee revenue | 7,402 | 7,489 | 10,428 | 16,920 | 42,239 | 15,097 | 14,839 | 14,694 | 15,553 | 60,183 | - | 15,553 | - | |||||||||||||||||||||||||||||||||||||||
Total revenues excluding entrance fee amortization | $ | 650,510 | $ | 653,459 | $ | 960,183 | $ | 1,058,164 | $ | 3,322,316 | $ | 1,066,562 | $ | 1,057,887 | $ | 1,054,157 | $ | 1,055,500 | $ | 4,234,106 | $ | 412,678 | $ | 642,822 | $ | - | ||||||||||||||||||||||||||
CFFO Reconciliation to the Income Statement | ||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in 000s) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Resident and management fee revenue | $ | 657,712 | $ | 661,006 | $ | 965,940 | $ | 1,058,878 | $ | 3,343,536 | $ | 1,067,329 | $ | 1,058,817 | $ | 1,054,776 | $ | 1,056,388 | $ | 4,237,310 | $ | 412,678 | $ | 643,710 | $ | - | ||||||||||||||||||||||||||
Less: Entrance fee amortization | (7,202 | ) | (7,547 | ) | (5,757 | ) | (714 | ) | (21,220 | ) | (767 | ) | (930 | ) | (619 | ) | (888 | ) | (3,204 | ) | - | (888 | ) | - | ||||||||||||||||||||||||||||
Adjusted revenues | 650,510 | 653,459 | 960,183 | 1,058,164 | 3,322,316 | 1,066,562 | 1,057,887 | 1,054,157 | 1,055,500 | 4,234,106 | 412,678 | 642,822 | - | |||||||||||||||||||||||||||||||||||||||
Less: Facility operating expenses | (429,870 | ) | (435,415 | ) | (637,084 | ) | (707,999 | ) | (2,210,368 | ) | (696,889 | ) | (694,991 | ) | (699,720 | ) | (697,262 | ) | (2,788,862 | ) | (277,509 | ) | (419,753 | ) | - | |||||||||||||||||||||||||||
Add: Change in future service obligation | - | - | - | 670 | 670 | - | - | - | (941 | ) | (941 | ) | - | (941 | ) | - | ||||||||||||||||||||||||||||||||||||
Adjusted facility operating expenses | (429,870 | ) | (435,415 | ) | (637,084 | ) | (707,329 | ) | (2,209,698 | ) | (696,889 | ) | (694,991 | ) | (699,720 | ) | (698,203 | ) | (2,789,803 | ) | (277,509 | ) | (420,694 | ) | - | |||||||||||||||||||||||||||
Less: G&A including non-cash stock-based compensation expense | (44,665 | ) | (47,008 | ) | (90,020 | ) | (98,574 | ) | (280,267 | ) | (89,530 | ) | (89,545 | ) | (99,534 | ) | (91,970 | ) | (370,579 | ) | (20,989 | ) | (47,381 | ) | (23,600 | ) | ||||||||||||||||||||||||||
Less: Transaction costs | (10,844 | ) | (6,808 | ) | (41,572 | ) | (7,725 | ) | (66,949 | ) | (6,742 | ) | (421 | ) | - | (1,089 | ) | (8,252 | ) | - | - | (1,089 | ) | |||||||||||||||||||||||||||||
Add: G&A non-cash stock-based compensation expense | 7,572 | 7,729 | 7,869 | 5,129 | 28,299 | 8,873 | 6,851 | 10,147 | 5,780 | 31,651 | 1,774 | 4,006 | - | |||||||||||||||||||||||||||||||||||||||
Net G&A (5) | (47,937 | ) | (46,087 | ) | (123,723 | ) | (101,170 | ) | (318,917 | ) | (87,399 | ) | (83,115 | ) | (89,387 | ) | (87,279 | ) | (347,180 | ) | (19,215 | ) | (43,375 | ) | (24,689 | ) | ||||||||||||||||||||||||||
Less: Facility lease expense | (69,869 | ) | (70,030 | ) | (91,462 | ) | (92,469 | ) | (323,830 | ) | (94,471 | ) | (91,338 | ) | (91,144 | ) | (90,621 | ) | (367,574 | ) | - | (90,621 | ) | - | ||||||||||||||||||||||||||||
Add: Straight-line lease expense | (223 | ) | (217 | ) | 2,840 | (961 | ) | 1,439 | 2,801 | 1,919 | 1,731 | 505 | 6,956 | - | 505 | - | ||||||||||||||||||||||||||||||||||||
Add: Amortization of (above) below market lease, net | - | - | (1,377 | ) | (2,067 | ) | (3,444 | ) | (1,959 | ) | (1,840 | ) | (1,626 | ) | (1,733 | ) | (7,158 | ) | - | (1,733 | ) | - | ||||||||||||||||||||||||||||||
Less: Amortization of deferred gain | (1,093 | ) | (1,093 | ) | (1,093 | ) | (1,093 | ) | (4,372 | ) | (1,093 | ) | (1,093 | ) | (1,093 | ) | (1,093 | ) | (4,372 | ) | - | (1,093 | ) | - | ||||||||||||||||||||||||||||
Net lease expense | (71,185 | ) | (71,340 | ) | (91,092 | ) | (96,590 | ) | (330,207 | ) | (94,722 | ) | (92,352 | ) | (92,132 | ) | (92,942 | ) | (372,148 | ) | - | (92,942 | ) | - | ||||||||||||||||||||||||||||
Add: Entrance fee receipts | 14,959 | 25,924 | 9,576 | 2,587 | 53,046 | 2,491 | 3,408 | 4,498 | 2,655 | 13,052 | - | 2,655 | - | |||||||||||||||||||||||||||||||||||||||
Less: Entrance fee disbursements | (8,446 | ) | (9,213 | ) | (7,668 | ) | (538 | ) | (25,865 | ) | (829 | ) | (988 | ) | (1,434 | ) | (1,160 | ) | (4,411 | ) | - | (1,160 | ) | - | ||||||||||||||||||||||||||||
Net entrance fees | 6,513 | 16,711 | 1,908 | 2,049 | 27,181 | 1,662 | 2,420 | 3,064 | 1,495 | 8,641 | - | 1,495 | - | |||||||||||||||||||||||||||||||||||||||
Add: CFFO from unconsolidated ventures (6) | 2,241 | 1,996 | 9,435 | 11,662 | 25,334 | 14,213 | 11,177 | 15,481 | 18,896 | 59,767 | - | 18,896 | - | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | 110,272 | 119,324 | 119,627 | 166,786 | 516,009 | 203,427 | 201,026 | 191,463 | 197,467 | 793,383 | 115,954 | 106,202 | (24,689 | ) | ||||||||||||||||||||||||||||||||||||||
Less: Recurring capital expenditures, net | (9,369 | ) | (11,841 | ) | (13,199 | ) | (16,353 | ) | (50,762 | ) | (15,003 | ) | (17,425 | ) | (14,531 | ) | (13,978 | ) | (60,937 | ) | (5,825 | ) | (8,153 | ) | - | |||||||||||||||||||||||||||
Less: Interest expense, net | (29,677 | ) | (29,372 | ) | (73,030 | ) | (91,933 | ) | (224,012 | ) | (89,424 | ) | (90,530 | ) | (90,847 | ) | (88,738 | ) | (359,539 | ) | (43,084 | ) | (45,654 | ) | - | |||||||||||||||||||||||||||
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 | ) | (12,756 | ) | (12,852 | ) | (13,249 | ) | (51,296 | ) | - | (13,249 | ) | - | ||||||||||||||||||||||||||||
Less: Other | 133 | 2,528 | 217 | 2,847 | 5,725 | 1,542 | 607 | (6,983 | ) | 281 | (4,553 | ) | - | 445 | (164 | ) | ||||||||||||||||||||||||||||||||||||
CFFO | $ | 67,462 | $ | 76,656 | $ | 22,905 | $ | 51,319 | $ | 218,342 | $ | 88,103 | $ | 80,922 | $ | 66,250 | $ | 81,783 | $ | 317,058 | $ | 67,045 | $ | 39,591 | $ | (24,853 | ) | |||||||||||||||||||||||||
Add: integration, transaction, transaction-related and EMR roll-out costs | 11,783 | 11,941 | 76,649 | 46,023 | 146,396 | 27,300 | 29,027 | 42,499 | 24,853 | 123,679 | - | - | 24,853 | |||||||||||||||||||||||||||||||||||||||
Adjusted CFFO | $ | 79,245 | $ | 88,597 | $ | 99,554 | $ | 97,342 | $ | 364,738 | $ | 115,403 | $ | 109,949 | $ | 108,749 | $ | 106,636 | $ | 440,737 | $ | 67,045 | $ | 39,591 | $ | - | ||||||||||||||||||||||||||
CFFO Per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||
($ except where indicated) | FY 2014 | FY 2015 | Q4 2015 Distribution | |||||||||||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Full Year(2) | Q1 | Q2 | Q3 | Q4 | Full Year(2) | Owned | Other | Transaction/ Integration | ||||||||||||||||||||||||||||||||||||||||
CFFO | $ | 0.54 | $ | 0.61 | $ | 0.14 | $ | 0.28 | $ | 1.57 | $ | 0.48 | $ | 0.44 | $ | 0.36 | $ | 0.44 | $ | 1.72 | $ | 0.36 | $ | 0.21 | $ | (0.14 | ) | |||||||||||||||||||||||||
Add: integration, transaction, transaction-related and EMR roll-out costs | 0.10 | 0.10 | 0.49 | 0.25 | 0.94 | 0.15 | 0.16 | 0.23 | 0.14 | 0.68 | - | - | 0.14 | |||||||||||||||||||||||||||||||||||||||
Adjusted CFFO | $ | 0.64 | $ | 0.71 | $ | 0.63 | $ | 0.53 | $ | 2.51 | $ | 0.63 | $ | 0.60 | $ | 0.59 | $ | 0.58 | $ | 2.40 | $ | 0.36 | $ | 0.21 | $ | - | ||||||||||||||||||||||||||
Shares used in calculation of CFFO (000's) | 124,478 | 125,058 | 159,003 | 183,432 | 183,678 | 184,266 | 184,570 | 184,805 | 184,805 | 184,805 | 184,805 |
(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) Certain prior period expense amounts have been reclassified to conform to the current financial statement presentation, with no effect on the Company's consolidated financial position or results of operations. |
(4) Other includes financial data and operating information from leased communities, Brookdale Ancillary Services, and Management Services. |
(5) 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, transaction-related and EMR roll-out costs. |
(6) The definition of Adjusted EBITDA was changed in the first quarter of 2015 to include CFFO from unconsolidated ventures. Prior periods have been recast to conform to the new definition. |
Page 8
Brookdale Senior Living Inc. | ||
CFFO from Unconsolidated Ventures | ||
As of December 31, 2015 |
CFFO from Unconsolidated Ventures Reconciliation |
($ in 000s) | Entrance Fee Venture | Other Ventures | ||||||||||||||||||||||||||||||||||||||
FY 2014 | FY 2015 | FY 2014 | FY 2015 | |||||||||||||||||||||||||||||||||||||
Q4 | Q1 | Q2 | Q3 | Q4 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||||||||||||||
Number of communities (period end) | 14 | 14 | 14 | 14 | 15 | 85 | 86 | 122 | 122 | 125 | ||||||||||||||||||||||||||||||
Total average units | 6,836 | 6,843 | 6,848 | 6,919 | 7,068 | 11,943 | 11,949 | 12,082 | 17,219 | 17,283 | ||||||||||||||||||||||||||||||
Weighted average unit occupancy | 84.5 | % | 85.3 | % | 84.4 | % | 84.0 | % | 84.8 | % | 86.9 | % | 86.6 | % | 86.0 | % | 87.5 | % | 88.1 | % | ||||||||||||||||||||
Senior Housing average monthly revenue per unit | 4,901 | 4,929 | 4,829 | 4,887 | 4,901 | 4,072 | 4,110 | 4,119 | 3,930 | 3,947 | ||||||||||||||||||||||||||||||
Resident revenue | $ | 85,546 | $ | 87,473 | $ | 85,179 | $ | 87,059 | $ | 89,830 | $ | 125,970 | $ | 127,513 | $ | 126,435 | $ | 177,678 | $ | 180,362 | ||||||||||||||||||||
Less: Entrance fee amortization | (554 | ) | (1,141 | ) | (1,482 | ) | (1,828 | ) | (1,718 | ) | - | - | - | - | ||||||||||||||||||||||||||
Adjusted revenues | 84,992 | 86,332 | 83,697 | 85,231 | 88,112 | 125,970 | 127,513 | 126,435 | 177,678 | 180,362 | ||||||||||||||||||||||||||||||
Less: Facility operating expenses | (68,288 | ) | (67,451 | ) | (68,544 | ) | (70,756 | ) | (70,788 | ) | (84,306 | ) | (83,469 | ) | (83,094 | ) | (117,433 | ) | (116,343 | ) | ||||||||||||||||||||
Less: General and administrative expenses | (4,948 | ) | (4,707 | ) | (4,691 | ) | (4,765 | ) | (5,345 | ) | (6,077 | ) | (6,153 | ) | (6,080 | ) | (8,625 | ) | (9,344 | ) | ||||||||||||||||||||
Add: Entrance fee receipts | 26,210 | 23,251 | 26,040 | 27,744 | 35,017 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Less: Entrance fee disbursements | (13,888 | ) | (9,181 | ) | (13,042 | ) | (10,875 | ) | (9,565 | ) | - | - | - | - | - | |||||||||||||||||||||||||
Net entrance fees | 12,322 | 14,070 | 12,998 | 16,869 | 25,452 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Adjusted EBITDA | 24,078 | 28,244 | 23,460 | 26,579 | 37,431 | 35,587 | 37,891 | 37,261 | 51,620 | 54,675 | ||||||||||||||||||||||||||||||
Less: Recurring capital expenditures, net | (1,347 | ) | (1,159 | ) | (1,898 | ) | (1,860 | ) | (2,201 | ) | (2,431 | ) | (2,336 | ) | (2,760 | ) | (3,577 | ) | (4,052 | ) | ||||||||||||||||||||
Less: Interest expense, net | (1,575 | ) | (1,530 | ) | (1,500 | ) | (1,528 | ) | (1,462 | ) | (26,447 | ) | (25,845 | ) | (26,198 | ) | (34,371 | ) | (35,300 | ) | ||||||||||||||||||||
Less: Other | - | - | - | - | (8 | ) | (276 | ) | (613 | ) | (103 | ) | (300 | ) | (616 | ) | ||||||||||||||||||||||||
CFFO from Unconsolidated Ventures | $ | 21,156 | $ | 25,555 | $ | 20,062 | $ | 23,191 | $ | 33,760 | $ | 6,433 | $ | 9,097 | $ | 8,201 | $ | 13,372 | $ | 14,707 | ||||||||||||||||||||
Add: Integration, transaction, transaction-related and EMR roll-out costs (1) | 210 | - | - | 4,683 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Adjusted CFFO from Unconsolidated Ventures | $ | 21,366 | $ | 25,555 | $ | 20,062 | $ | 27,874 | $ | 33,760 | $ | 6,433 | $ | 9,097 | $ | 8,201 | $ | 13,372 | $ | 14,707 | ||||||||||||||||||||
Brookdale Weighted Average Ownership % | 51.0 | % | 51.0 | % | 51.0 | % | 51.0 | % | 51.0 | % | 11.9 | % | 13.0 | % | 11.5 | % | 9.5 | % | 11.4 | % | ||||||||||||||||||||
CFFO from Unconsolidated Ventures | $ | 10,896 | $ | 13,033 | $ | 10,232 | $ | 14,216 | $ | 17,218 | $ | 766 | $ | 1,180 | $ | 945 | $ | 1,265 | $ | 1,678 | ||||||||||||||||||||
Leverage Ratio for Unconsolidated Ventures (2) | ||||||||||||||||||||||||||||||||||||||||
Debt Principal as of December 31, 2015 | $ | 211,523 | $ | 1,956,270 | ||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | 115,714 | 218,700 | ||||||||||||||||||||||||||||||||||||||
Leverage | 1.8 | x | 8.9 | x | ||||||||||||||||||||||||||||||||||||
Unconsolidated Ventures Schedule of Capital Expenditures | ||||||||||||||||||||||||||||||||||||||||
($ in 000s) | FY 2014 | FY 2015 | ||||||||||||||||||||||||||||||||||||||
Type | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||||||||||||||||||
Recurring | $ | 3,778 | $ | 3,495 | $ | 4,658 | $ | 5,437 | $ | 6,253 | ||||||||||||||||||||||||||||||
EBITDA-enhancing / Major Projects | 17,199 | 13,243 | 24,562 | 27,167 | 37,079 | |||||||||||||||||||||||||||||||||||
Program Max | 3,665 | 4,340 | 7,685 | 6,178 | 8,332 | |||||||||||||||||||||||||||||||||||
Total Capital Expenditures | $ | 24,642 | $ | 21,078 | $ | 36,905 | $ | 38,782 | $ | 51,664 |
(1) Integration, transaction-related and EMR roll-out costs include third party expenses directly related to integration activities, as well as internal costs such as labor reflecting time spent by Company personnel on integration and EMR roll-out activity. Transaction costs include third party costs directly related to the formation of the unconsolidated ventures and other acquisition activity. | ||||||||
(2) Adjusted EBITDA from unconsolidated other ventures includes results on a normalized basis for a new RIDEA venture formed on June 30, 2015 and community acquisitions during the year ended December 31, 2015. |
Page 9
Brookdale Senior Living Inc. | ||
Cash Lease and Interest Expense | ||
As of December 31, 2015 |
Cash Lease and Interest Expense |
($ in 000s) |
FY 2014 | FY 2015 | |||||||||||||||||||
Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||
Facility Lease Payments | ||||||||||||||||||||
Facility lease expense | $ | 92,469 | $ | 94,471 | $ | 91,338 | $ | 91,144 | $ | 90,621 | ||||||||||
Less: Straight-line lease expense, net | 3,028 | (842 | ) | (79 | ) | (105 | ) | 1,228 | ||||||||||||
Add: Amortization of deferred gain | 1,093 | 1,093 | 1,093 | 1,093 | 1,093 | |||||||||||||||
Cash lease payments - Operating Leases | $ | 96,590 | $ | 94,722 | $ | 92,352 | $ | 92,132 | $ | 92,942 | ||||||||||
Supplemental breakout: | ||||||||||||||||||||
Communities with purchase options | $ | 6,320 | $ | 6,343 | $ | 6,311 | $ | 5,734 | $ | 5,968 | ||||||||||
Communities without purchase options | 90,270 | 88,379 | 86,041 | 86,398 | 86,974 | |||||||||||||||
$ | 96,590 | $ | 94,722 | $ | 92,352 | $ | 92,132 | $ | 92,942 | |||||||||||
Capital Lease Interest | $ | 56,873 | $ | 53,203 | $ | 53,043 | $ | 53,217 | $ | 51,669 | ||||||||||
Less: Capital and financing Lease Interest - noncash | (6,700 | ) | (5,700 | ) | (5,816 | ) | (5,942 | ) | (6,014 | ) | ||||||||||
Add: Capital and financing lease principal (1) | 10,028 | 12,439 | 12,756 | 12,852 | 13,249 | |||||||||||||||
Cash lease payments - Capital and Financing Leases | $ | 60,201 | $ | 59,942 | $ | 59,983 | $ | 60,127 | $ | 58,904 | ||||||||||
Supplemental breakout: | ||||||||||||||||||||
Communities with purchase options | $ | 14,755 | $ | 14,205 | $ | 13,558 | $ | 13,975 | $ | 12,233 | ||||||||||
Communities without purchase options | 45,446 | 45,737 | 46,425 | 46,152 | 46,671 | |||||||||||||||
$ | 60,201 | $ | 59,942 | $ | 59,983 | $ | 60,127 | $ | 58,904 | |||||||||||
Total cash lease payments | $ | 156,791 | $ | 154,664 | $ | 152,335 | $ | 152,259 | $ | 151,846 | ||||||||||
Interest Expense | ||||||||||||||||||||
Property level debt interest expense | $ | 39,930 | $ | 40,174 | $ | 41,510 | $ | 41,798 | $ | 41,306 | ||||||||||
Convertible debt interest expense | 2,174 | 2,174 | 2,174 | 2,174 | 2,174 | |||||||||||||||
Total debt interest payments | 42,104 | 42,348 | 43,684 | 43,972 | 43,480 | |||||||||||||||
Less: interest income | (345 | ) | (427 | ) | (382 | ) | (398 | ) | (396 | ) | ||||||||||
Interest expense, net | $ | 41,759 | $ | 41,921 | $ | 43,302 | $ | 43,574 | $ | 43,084 |
(1) Includes lease financing debt amortization on communities with FMV or no purchase option. Payments are included in CFFO. |
Page 10
Brookdale Senior Living Inc. |
Quarterly Cash Flow Statements |
As of December 31, 2015 |
($ in 000s) |
Cash Flow Statements |
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | FY 2014 | Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | FY 2015 | |||||||||||||||||||||||||||||||
Cash Flows from Operating Activities | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (2,299 | ) | $ | (3,295 | ) | $ | (37,036 | ) | $ | (106,796 | ) | $ | (149,426 | ) | $ | (130,709 | ) | $ | (84,807 | ) | $ | (68,336 | ) | $ | (174,303 | ) | $ | (458,155 | ) | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt, net | - | 3,197 | 569 | 2,621 | 6,387 | 44 | - | - | 77 | 121 | ||||||||||||||||||||||||||||||
Depreciation and amortization, net | 74,334 | 75,166 | 178,810 | 216,202 | 544,512 | 220,808 | 225,483 | 161,331 | 128,894 | 736,516 | ||||||||||||||||||||||||||||||
Asset impairment | - | - | - | 9,992 | 9,992 | - | - | - | 57,941 | 57,941 | ||||||||||||||||||||||||||||||
Equity in (earnings) loss of unconsolidated ventures | (636 | ) | (1,523 | ) | 1,246 | 742 | (171 | ) | (1,484 | ) | 672 | 1,578 | 38 | 804 | ||||||||||||||||||||||||||
Distributions from unconsolidated ventures from cumulative share of net earnings | 245 | 370 | 595 | 630 | 1,840 | 500 | 950 | 6,375 | - | 7,825 | ||||||||||||||||||||||||||||||
Amortization of deferred gain | (1,093 | ) | (1,093 | ) | (1,093 | ) | (1,093 | ) | (4,372 | ) | (1,093 | ) | (1,093 | ) | (1,093 | ) | (1,093 | ) | (4,372 | ) | ||||||||||||||||||||
Amortization of entrance fees | (7,202 | ) | (7,547 | ) | (5,757 | ) | (714 | ) | (21,220 | ) | (767 | ) | (930 | ) | (619 | ) | (888 | ) | (3,204 | ) | ||||||||||||||||||||
Proceeds from deferred entrance fee revenue | 9,035 | 14,906 | 6,188 | 2,575 | 32,704 | 2,455 | 2,858 | 3,574 | 2,226 | 11,113 | ||||||||||||||||||||||||||||||
Deferred income tax provision (benefit) | 598 | (5 | ) | (116,757 | ) | (66,207 | ) | (182,371 | ) | (79,237 | ) | (53,225 | ) | (31,552 | ) | 68,753 | (95,261 | ) | ||||||||||||||||||||||
Change in deferred lease liability | (223 | ) | (217 | ) | 2,840 | (961 | ) | 1,439 | 2,801 | 1,919 | 1,731 | 505 | 6,956 | |||||||||||||||||||||||||||
Change in fair value of derivatives | 847 | 1,322 | 10 | 532 | 2,711 | 550 | 76 | 164 | 7 | 797 | ||||||||||||||||||||||||||||||
Loss (gain) on sale of assets | 76 | 39 | 200 | (761 | ) | (446 | ) | - | - | (1,723 | ) | 453 | (1,270 | ) | ||||||||||||||||||||||||||
Change in future service obligation | - | - | - | 670 | 670 | - | - | - | (941 | ) | (941 | ) | ||||||||||||||||||||||||||||
Non-cash stock-based compensation | 7,572 | 7,729 | 7,869 | 5,129 | 28,299 | 8,873 | 6,851 | 10,147 | 5,780 | 31,651 | ||||||||||||||||||||||||||||||
Non-cash interest expense on financing lease obligations | - | - | 5,947 | 6,700 | 12,647 | 5,700 | 5,816 | 5,942 | 6,014 | 23,472 | ||||||||||||||||||||||||||||||
Amortization of (above) below market rents, net | - | - | (1,377 | ) | (2,067 | ) | (3,444 | ) | (1,959 | ) | (1,840 | ) | (1,626 | ) | (1,733 | ) | (7,158 | ) | ||||||||||||||||||||||
Other | - | - | - | - | - | - | (1,416 | ) | (856 | ) | (885 | ) | (3,157 | ) | ||||||||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||||||||||||
Accounts receivable, net | (2,499 | ) | 3,914 | 23,671 | (21,576 | ) | 3,510 | (13,140 | ) | 899 | 9,334 | 8,515 | 5,608 | |||||||||||||||||||||||||||
Prepaid expenses and other assets, net | (5,816 | ) | (8,369 | ) | (53,861 | ) | 15,178 | (52,868 | ) | 24,504 | 12,989 | 2,404 | 11,182 | 51,079 | ||||||||||||||||||||||||||
Accounts payable and accrued expenses | (27,561 | ) | 14,245 | 6,222 | 23,906 | 16,812 | (38,773 | ) | (10,763 | ) | 26,344 | (37,372 | ) | (60,564 | ) | |||||||||||||||||||||||||
Tenant refundable fees and security deposits | (615 | ) | 138 | (674 | ) | (32 | ) | (1,183 | ) | (510 | ) | (7 | ) | (221 | ) | 214 | (524 | ) | ||||||||||||||||||||||
Deferred revenue | 7,933 | (7,459 | ) | (4,978 | ) | 1,134 | (3,370 | ) | 11,494 | (3,665 | ) | (31,537 | ) | 16,797 | (6,911 | ) | ||||||||||||||||||||||||
Net cash provided by operating activities | 52,696 | 91,518 | 12,634 | 85,804 | 242,652 | 10,057 | 100,767 | 91,361 | 90,181 | 292,366 | ||||||||||||||||||||||||||||||
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 | 2,686 | (3,182 | ) | (1,675 | ) | 10,866 | |||||||||||||||||||||||||
Decrease (increase) in cash and escrow deposits — restricted | 6,627 | (6,039 | ) | 14,052 | 42,295 | 56,935 | 12,289 | (2,083 | ) | (3,384 | ) | 22,464 | 29,286 | |||||||||||||||||||||||||||
Additions to property, plant and equipment and leasehold intangibles, net | (59,717 | ) | (73,712 | ) | (79,104 | ) | (91,712 | ) | (304,245 | ) | (79,129 | ) | (99,219 | ) | (123,430 | ) | (109,273 | ) | (411,051 | ) | ||||||||||||||||||||
Acquisition of assets, net of related payables and cash received | (515 | ) | - | (39,303 | ) | (623 | ) | (40,441 | ) | (174,305 | ) | (18,396 | ) | (750 | ) | 2,235 | (191,216 | ) | ||||||||||||||||||||||
Acquisition of Emeritus Corporation, cash acquired | - | - | 28,429 | - | 28,429 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Investment in unconsolidated ventures | - | - | (25,532 | ) | (967 | ) | (26,499 | ) | (3,923 | ) | (34,686 | ) | (2,100 | ) | (28,588 | ) | (69,297 | ) | ||||||||||||||||||||||
Distributions received from unconsolidated ventures | - | 2,643 | 9,414 | 218 | 12,275 | - | - | 7,038 | 2,016 | 9,054 | ||||||||||||||||||||||||||||||
Proceeds from sale of assets, net | - | - | - | 4,339 | 4,339 | - | 4,993 | 3,079 | 41,154 | 49,226 | ||||||||||||||||||||||||||||||
Other | 76 | 2,564 | 73 | 556 | 3,269 | 740 | 1,499 | 924 | 992 | 4,155 | ||||||||||||||||||||||||||||||
Net cash used in investing activities | (53,522 | ) | (74,617 | ) | (88,645 | ) | (98,098 | ) | (314,882 | ) | (231,291 | ) | (145,206 | ) | (121,805 | ) | (70,675 | ) | (568,977 | ) | ||||||||||||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||||||||||||||||||||||
Proceeds from debt | 20,516 | 159,638 | 46,356 | 100,129 | 326,639 | 85,365 | 79,828 | 384,938 | 35,519 | 585,650 | ||||||||||||||||||||||||||||||
Repayment of debt and capital and financing lease obligations | (22,401 | ) | (159,412 | ) | (92,568 | ) | (309,964 | ) | (584,345 | ) | (47,555 | ) | (36,482 | ) | (369,352 | ) | (32,373 | ) | (485,762 | ) | ||||||||||||||||||||
Proceeds from line of credit | 70,000 | 12,000 | 160,000 | 200,000 | 442,000 | 445,000 | 240,000 | 285,000 | 205,000 | 1,175,000 | ||||||||||||||||||||||||||||||
Repayment of line of credit | (75,000 | ) | (25,000 | ) | (172,000 | ) | (100,000 | ) | (372,000 | ) | (245,000 | ) | (270,000 | ) | (245,000 | ) | (205,000 | ) | (965,000 | ) | ||||||||||||||||||||
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 | ) | (1,985 | ) | (28,785 | ) | (371 | ) | (32,622 | ) | |||||||||||||||||||||
Refundable entrance fees: | - | |||||||||||||||||||||||||||||||||||||||
Proceeds from refundable entrance fees | 5,924 | 11,018 | 3,388 | 12 | 20,342 | 36 | 550 | 924 | 429 | 1,939 | ||||||||||||||||||||||||||||||
Refunds of entrance fees | (8,446 | ) | (9,213 | ) | (7,668 | ) | (538 | ) | (25,865 | ) | (829 | ) | (988 | ) | (1,434 | ) | (1,160 | ) | (4,411 | ) | ||||||||||||||||||||
Cash portion of loss on extinguishment of debt, net | - | (3,180 | ) | (921 | ) | - | (4,101 | ) | (44 | ) | - | - | - | (44 | ) | |||||||||||||||||||||||||
Payment on lease termination | - | - | (3,875 | ) | (3,875 | ) | (7,750 | ) | (3,875 | ) | (3,875 | ) | (4,625 | ) | (4,625 | ) | (17,000 | ) | ||||||||||||||||||||||
Other | 328 | 394 | 486 | 681 | 1,889 | 716 | 705 | 673 | 713 | 2,807 | ||||||||||||||||||||||||||||||
Net cash (used in) provided by financing activities | (11,984 | ) | (11,668 | ) | 263,401 | (121,947 | ) | 117,802 | 232,333 | 7,753 | 22,339 | (1,868 | ) | 260,557 | ||||||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (12,810 | ) | 5,233 | 187,390 | (134,241 | ) | 45,572 | 11,099 | (36,686 | ) | (8,105 | ) | 17,638 | (16,054 | ) | |||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 58,511 | 45,701 | 50,934 | 238,324 | 58,511 | 104,083 | 115,182 | 78,496 | 70,391 | 104,083 | ||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 45,701 | $ | 50,934 | $ | 238,324 | $ | 104,083 | $ | 104,083 | $ | 115,182 | $ | 78,496 | $ | 70,391 | $ | 88,029 | $ | 88,029 |
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