Brookdale Announces Second Quarter 2007 Results
Second Quarter 2007 Highlights
- - Revenue for the second quarter increased to $458.4 million, Facility
Operating Income increased to $166.1 million and Adjusted EBITDA increased
to $82.8 million.
- - Average occupancy for the quarter was 90.7%, and average revenue per month
per occupied unit increased to $3,562 per month, up 1.8% from last
quarter.
- - Cash From Facility Operations for the quarter was $43.0 million, or $0.42
per outstanding common share, a 27% increase on a per share basis over the
prior quarter. Cash From Facility Operations includes integration and
acquisition-related costs, and start-up expenses associated with ancillary
services and facility expansions of $6.5 million, or $0.06 per outstanding
common share, and excludes amortization related to capital leases and debt
of $3.9 million, or $0.04 per outstanding common share, for a net effect
of $2.5 million, or $0.03 per outstanding common share.
- - For the twelve months ended June 30, 2007, same store revenue increased
6.9% and Facility Operating Income grew 9.7% over the corresponding period
ending in 2006, including the effect of the historical results of American
Retirement's ("ARC") facilities for both periods.
- - Net loss of $(18.7) million, or $(0.18) per diluted common share,
including non-cash expenses of $97.7 million for depreciation and
amortization, non-cash compensation expense and straight-line lease
expense, net of deferred gain amortization.
- - Increased dividend from $0.45 in the first quarter to $0.50 per share of
common stock for the quarter ended June 30, 2007.
CHICAGO, Aug. 7 /PRNewswire-FirstCall/ -- Brookdale Senior Living Inc.
(NYSE: BKD) (the "Company") today reported financial results for the second
quarter of 2007. Net loss for the quarter and six months ended June 30, 2007 was
$(18.7) million and $(53.8) million, respectively, or $(0.18) and $(0.53) per
diluted common share. The losses include non-cash items for depreciation and
amortization, non-cash compensation expense and straight-line rent expense, net
of deferred gain amortization, which totaled $97.7 million and $188.4 million,
respectively.
Bill Doniger, Brookdale's Vice Chairman, said, "Overall, we had another
quarter of strong operating performance with impressive organic growth.
Additionally, our growth initiatives, in particular the rollout of ancillary
services including home health services, are performing well ahead of plan. This
quarter's results plus our prospects for the remainder of the year underscore
the strength and diversity of our business despite the challenges in the housing
market which clearly impacted our entrance fee communities."
As a dividend-paying company, Brookdale's management utilizes Adjusted
EBITDA and Cash From Facility Operations to evaluate the Company's performance
and liquidity because these metrics exclude non-cash expenses such as
depreciation and amortization, non-cash compensation expense and straight-line
rent expense, net of deferred gain amortization. Brookdale also uses Facility
Operating Income to assess the performance of its facilities.
For the quarter and six months ended June 30, 2007, Adjusted EBITDA was
$82.8 million and $153.4 million, respectively. Facility Operating Income was
$166.1 million and $326.4 million for the quarter and six month period ended
June 30, 2007, respectively.
For the quarter and six months ended June 30, 2007, Cash From Facility
Operations was $43.0 million and $76.8 million, respectively, or $0.42 and $0.76
per common share outstanding at June 30, 2007, representing over a 62% increase
on a per share basis for both periods over the same period in the prior year.
Second quarter Adjusted EBITDA and Cash From Facility Operations included
integration and acquisition-related expenses of $3.9 million and $0.4 million of
integration-related training expenses. The majority of those expenses were
related to systems and acquisition integration costs. Also affecting reported
results are $2.2 million of start-up expenses associated with ancillary services
and facility expansions. Cash From Facility Operations excluded $3.9 million of
amortization related to capital leases and debt.
Same store revenues grew 6.9% for the twelve months ended June 30, 2007
over the corresponding period ending in 2006, and Facility Operating Income grew
9.7% when compared to the same period, including, in both cases, the effect of
the historical results of the ARC facilities. Similarly, same store revenues
grew 7.8% for the quarter ended June 30, 2007 over the same period in 2006, and
Facility Operating Income grew 9.7% when compared to the second quarter of 2006.
Bill Sheriff, Co-CEO of Brookdale, commented, "Our core business remains
strong. We maintained occupancy of approximately 91% and improved the average
revenue per occupied unit by over 7% annualized versus last quarter. The only
part of our business that did not meet our expectations was the sales activity
in some of our entrance fee communities. While over 70% of our potential
residents own their homes mortgage-free, the weakness in the housing market
delayed move-ins as people took longer to sell their homes. However, entrance
fee sales continue to trend positively, with the second quarter generating $4.7
million of net entrance fees versus $1.9 million in the first quarter."
Ancillary Services, Acquisitions and Facility Expansions
Mark J. Schulte, Brookdale's Co-CEO, said, "The roll-out of ancillary
services to the legacy Brookdale facilities is being accomplished ahead of our
initial plans. We have aggressively focused on markets where we have the largest
density of units and have completed the roll-out to over 10,000 new units so far
this year. This brings the total to 14,245 legacy Brookdale units/beds as of the
end of the quarter, well ahead of our stated plan of 12,000 for the full year.
We are also making good progress at initiating home health in some of our
markets. This was reflected in the 25% increase in monthly Facility Operating
Income per occupied unit from ancillary services at the legacy ARC facilities to
$195 this quarter from $156 in the first quarter."
During the quarter, the Company completed the acquisition of 7 communities
with a total of 1,767 units/beds for an aggregate cost of approximately $179
million. Brookdale already operated 4 of these facilities under long term leases
or lease-like structures. So far this year, the Company has acquired ten
communities with a total of 2,059 units/beds for an aggregate cost of
approximately $199 million.
Since the beginning of the year, the Company has opened expansions at five
communities with a total of 210 units representing $35 million of project costs.
The three expansions that opened during the first quarter 2007 are currently
averaging occupancy of 80% and are producing positive operating income. Four
other expansions with a total of 86 units representing $26 million of project
costs are currently under construction.
Earnings Conference Call
Brookdale's management will conduct a conference call on Wednesday, August
8, 2007 to review the financial results for the three and six months ended June
30, 2007. The conference call is scheduled for 10:00 AM ET. All interested
parties are welcome to participate in the live conference call. The conference
call can be accessed by dialing (800) 289-0726 (from within the U.S.) or (913)
981-5545 (from outside of the U.S.) ten minutes prior to the scheduled start and
referencing the "Brookdale Senior Living Second Quarter Earnings Call."
A webcast of the conference call will be available to the public on a
listen-only basis at http://www.brookdaleliving.com. Please allow extra time
prior to the call to visit the site and download the necessary software required
to listen to the internet broadcast. A replay of the webcast will be available
for three months on the Company's website following the call.
A replay will also be available until 11:59 PM ET on August 15, 2007 by
dialing (888) 203-1112 (from within the U.S.) or (719) 457-0820 (from outside of
the U.S.) and referencing access code "5743253." A copy of this earnings release
is posted on the Investor Relations page of the Brookdale website
(http://www.brookdaleliving.com).
About Brookdale Senior Living
Brookdale Senior Living Inc. is a leading owner and operator of senior
living facilities throughout the United States. The Company is committed to
providing an exceptional living experience through properties that are designed,
purpose-built and operated to provide the highest-quality service, care and
living accommodations for residents. Currently the Company owns and operates
independent living, assisted living, and dementia-care facilities and continuing
care retirement centers, with over 548 facilities in 35 states and the ability
to serve over 52,000 residents.
Safe Harbor
Certain items in this press release and the associated earnings conference
call may constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Those forward-looking statements are
subject to various risks and uncertainties and include all statements that are
not historical statements of fact and those regarding our intent, belief or
expectations, including, but not limited to, statements relating to our ability
to close accretive acquisitions; our ability to acquire the fee interest in
facilities that we currently operate at attractive valuations; our ability to
grow dividends and earnings, Adjusted EBITDA and Cash From Facility Operations;
our expectations for the performance of our entrance fee communities; our plans
to generate growth organically through occupancy improvements, increases in
annual rental rates and the achievement of operating efficiencies and cost
savings; our plans to expand our offering of ancillary services (therapy and
home health); our plans to expand existing facilities and develop new
facilities; and the expected project costs for our expansion and development
program. Forward-looking statements are generally identifiable by use of
forward-looking terminology such as "may," "will," "should," "potential,"
"intend," "expect," "endeavor," "seek," "anticipate," "estimate,"
"overestimate," "underestimate," "believe," "could," "would," "project,"
"predict," "continue," "plan" or other similar words or expressions.
Forward-looking statements are based on certain assumptions or estimates,
discuss future expectations, describe future plans and strategies, contain
projections of results of operations or of financial condition, or state other
forward-looking information. Our ability to predict results or the actual effect
of future plans or strategies is inherently uncertain. Although we believe that
the expectations reflected in such forward-looking statements are based on
reasonable assumptions, actual results and performance could differ materially
from those set forth in the forward-looking statements. Factors which could have
a material adverse effect on our operations and future prospects or which could
cause events or circumstances to differ from these forward-looking statements
include, but are not limited to, our limited operating history on a combined
basis, our ability to generate sufficient cash flow to cover required interest
and long-term operating lease payments, the effect of our indebtedness and
long-term operating leases on our liquidity, the risk of loss of property
pursuant to our mortgage debt and long-term lease obligations, our ability to
effectively manage our growth, our ability to integrate acquisitions (including
the ARC acquisition), our ability to maintain consistent quality control,
unforeseen costs associated with the acquisition of new facilities, competition
for the acquisition of assets, our ability to obtain additional capital on terms
acceptable to us, events which adversely affect the ability of seniors to afford
our monthly resident fees or entrance fees, changes in governmental
reimbursement programs, our vulnerability to economic downturns, the conditions
of housing markets in certain geographic areas, acts of nature in certain
geographic areas, terminations of our resident agreements and vacancies in the
living spaces we lease, increased competition for skilled personnel, departure
of our key officers, increases in market interest rates, environmental
contamination at any of our facilities, failure to comply with existing
environmental laws, an adverse determination or resolution of complaints filed
against us, the cost and difficulty of complying with increasing and evolving
regulation, and the other risks detailed from time to time in our SEC reports,
including our Annual Report on Form 10-K filed with the SEC on March 16, 2007.
When considering forward-looking statements, you should keep in mind the risk
factors and other cautionary statements in such SEC filings. Readers are
cautioned not to place undue reliance on any of these forward-looking
statements, which reflect our management's views as of the date of this press
release and/or the associated earnings conference call. The factors discussed
above and the other factors noted in our SEC filings from time to time could
cause our actual results to differ significantly from those contained in any
forward-looking statement. Although we believe that the expectations reflected
in these forward-looking statements are reasonable, we cannot guarantee future
results, levels of activity, performance or achievements and we expressly
disclaim any obligation to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in our
expectations with regard thereto or change in events, conditions or
circumstances on which any statement is based.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except for per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
Revenue
Resident fees $456,622 $267,842 $901,960 $488,878
Management fees 1,788 585 3,284 1,732
Total revenue 458,410 268,427 905,244 490,610
Expense
Facility operating (excluding
depreciation and amortization of
$72,508, $30,042, $142,275 and
$51,452, respectively) 285,866 161,281 566,675 298,226
General and administrative
(including non-cash stock-based
compensation expense of $8,192,
$3,755, $19,012 and $6,773,
respectively) 35,758 23,125 76,411 44,210
Facility lease expense 67,176 46,623 135,657 92,357
Depreciation and amortization 82,471 30,947 155,455 53,246
Total operating expense 471,271 261,976 934,198 488,039
(Loss) income from operations (12,861) 6,451 (28,954) 2,571
Interest income 1,563 625 3,383 1,677
Interest expense:
Debt (35,078) (25,544) (68,530) (39,234)
Amortization of deferred
financing costs (2,109) (1,335) (3,727) (2,038)
Change in fair value of
derivatives and
amortization 17,619 519 12,838 418
Loss on extinguishment of debt (803) - (803) (1,334)
Equity in loss of unconsolidated
ventures (601) (469) (2,054) (637)
Other non-operating income 238 - 238 -
Loss before income taxes (32,032) (19,753) (87,609) (38,577)
Benefit (provision) for income
taxes 12,715 (273) 33,283 (659)
Loss before minority interest (19,317) (20,026) (54,326) (39,236)
Minority interest 642 (233) 511 (349)
Net loss $(18,675) $(20,259) $(53,815) $(39,585)
Basic and diluted
loss per share $(0.18) $(0.31) $(0.53) $(0.61)
Weighted average shares
used in computing basic
and diluted loss per share 101,520 65,007 101,411 65,007
Dividends declared per
share $0.50 $0.35 $0.95 $0.70
Condensed Consolidated Balance Sheets
(in thousands)
June 30, 2007 December 31, 2006
(Unaudited)
Cash and cash equivalents $81,229 $68,034
Cash and investments - restricted 79,489 61,116
Accounts receivable, net 62,715 58,987
Other current assets 76,351 82,095
Total current assets 299,784 270,232
Property, plant, equipment and
leasehold intangibles, net 3,751,666 3,658,788
Other long-term assets 803,034 813,435
Total assets $4,854,484 $4,742,455
Current liabilities $508,733 $508,905
Long-term debt, less current portion 1,869,089 1,690,570
Other long-term liabilities 842,720 774,367
Total liabilities 3,220,542 2,973,842
Minority interests 3,620 4,601
Stockholders' equity 1,630,322 1,764,012
Total liabilities and
stockholders' equity $4,854,484 $4,742,455
Condensed Consolidated Statements of Cash Flow
(unaudited, in thousands)
Six Months Ended June 30,
2007 2006
Cash Flows from Operating Activities
Net loss $(53,815) $(39,585)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Non-cash portion of loss on
extinguishment of debt - 1,334
Depreciation and amortization 159,182 55,284
Minority interest (511) 349
Gain on sale of assets (403) -
Equity in loss of
unconsolidated ventures 2,054 637
Distributions from joint ventures
from cumulative share of net earnings 961 -
Amortization of deferred gain (2,170) (2,173)
Amortization of entrance fees (8,900) (145)
Proceeds from deferred
entrance fee revenue 8,642 613
Deferred income tax benefit (33,326) -
Change in deferred lease liability 12,364 10,498
Change in fair value of
derivatives and amortization (12,838) (418)
Stock-based compensation 19,012 6,773
Changes in operating assets and liabilities:
Accounts receivable, net (4,363) (10,715)
Prepaid expenses and other assets, net 4,669 7,376
Accounts payable and accrued expenses (10,763) (3,596)
Tenant refundable fees
and security deposits 4,656 2,182
Other 459 (5,175)
Net cash provided by
operating activities 84,910 23,239
Cash Flows from Investing Activities
Decrease in lease security deposits
and lease acquisition deposits, net 1,602 5,266
(Increase) decrease in cash and
investments - restricted (12,281) 14,854
Additions to property, plant,
equipment and leasehold intangibles,
net of related payables (68,933) (14,957)
Acquisition of assets, net of related
payables and cash received (149,788) (531,895)
Issuance of notes receivable, net (10,251) -
Investment in joint ventures (1,176) -
Distributions received from
unconsolidated ventures 1,765 -
Net cash used in investing activities (239,062) (526,732)
Cash Flows from Financing Activities
Proceeds from debt 249,011 321,170
Repayment of debt (25,999) (11,356)
Buyout of capital lease obligations (51,114) -
Proceeds from line of credit 328,500 215,000
Repayment of line of credit (232,000) (20,000)
Payment of dividends (93,178) (39,714)
Payment of financing costs,
net of related payables (5,179) (10,636)
Other (612) -
Refundable entrance fees:
Proceeds from refundable entrance fees 8,322 2,756
Refunds of entrance fees (10,404) (1,011)
Net cash provided by
financing activities 167,347 456,209
Net (decrease) increase in
cash and cash equivalents 13,195 (47,284)
Cash and cash equivalents
at beginning of period 68,034 77,682
Cash and cash equivalents
at end of period $81,229 $30,398
Non-GAAP Financial Measures
Adjusted EBITDA
Adjusted EBITDA is a measure of operating performance that is not
calculated in accordance with U.S. generally accepted accounting principles
("GAAP"). Adjusted EBITDA should not be considered in isolation or as a
substitute for net income, income from operations or cash flows provided by or
used in operations, as determined in accordance with GAAP. Adjusted EBITDA is a
key measure of the Company's operating performance used by management to focus
on operating performance and management without mixing in items of income and
expense that relate to long-term contracts and the financing and capitalization
of the business. We define Adjusted EBITDA as net income (loss) before provision
(benefit) for income taxes, non-operating (income) loss items, depreciation and
amortization, straight-line rent expense (income), amortization of deferred
gain, amortization of deferred entrance fees, and non-cash compensation expense
and including entrance fee receipts and refunds.
We believe Adjusted EBITDA is useful to investors in evaluating our
performance, results of operations and financial position for the following
reasons:
- -- It is helpful in identifying trends in our day-to-day performance because
the items excluded have little or no significance to our day- to-day
operations;
- -- It provides an assessment of controllable expenses and affords management
the ability to make decisions which are expected to facilitate meeting
current financial goals as well as achieve optimal financial performance;
and
- -- It is an indication to determine if adjustments to current spending
decisions are needed.
The table below reconciles Adjusted EBITDA from net loss for the three and
six months ended June 30, 2007 and 2006 (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
2007(1) 2006(1) 2007(1) 2006(1)
Net loss $(18,675) $(20,259) $(53,815) $(39,585)
Minority interest (642) 233 (511) 349
(Benefit) provision for
income taxes (12,715) 273 (33,283) 659
Equity in loss of
unconsolidated ventures 601 469 2,054 637
Loss on extinguishment of debt 803 - 803 1,334
Other non-operating income (238) - (238) -
Interest Expense:
Debt 27,953 18,963 53,192 30,493
Capitalized lease obligation 7,125 6,581 15,338 8,741
Amortization of deferred
financing costs 2,109 1,335 3,727 2,038
Change in fair value of
derivatives and
amortization (17,619) (519) (12,838) (418)
Interest income (1,563) (625) (3,383) (1,677)
(Loss) income from operations (12,861) 6,451 (28,954) 2,571
Depreciation and amortization 82,471 30,947 155,455 53,246
Straight-line lease expense 6,028 5,239 12,364 10,498
Amortization of deferred gain (1,085) (1,086) (2,170) (2,173)
Amortization of entrance fees (4,641) (62) (8,900) (145)
Non-cash compensation expense 8,192 3,755 19,012 6,773
Entrance fee receipts(2) 8,790 1,300 16,964 3,369
Entrance fee disbursements (4,089) (308) (10,404) (1,011)
Adjusted EBITDA $82,805 $46,236 $153,367 $73,128
(1) The calculation of Adjusted EBITDA includes merger, integration, and
certain other non-recurring expenses, as well as acquisition transition
costs, totaling $3.9 million and $3.7 million for the three months ended
June 30, 2007 and 2006, respectively and $7.0 million and $6.7 million for
the six months ended June 30, 2007, respectively.
(2) Includes the receipt of refundable and non-refundable entrance fees.
Cash From Facility Operations
Cash From Facility Operations is a measurement of liquidity that is not
calculated in accordance with GAAP and should not be considered in isolation as
a substitute for cash flows provided by or used in operations, as determined in
accordance with GAAP. We define Cash From Facility Operations as net cash
provided by (used in) operating activities adjusted for changes in operating
assets and liabilities, deferred interest and fees added to principal,
refundable entrance fees received, entrance fee refunds disbursed, other and
recurring capital expenditures. Recurring capital expenditures include
expenditures capitalized in accordance with GAAP that are funded from Cash From
Facility Operations. Amounts excluded from recurring capital expenditures
consist primarily of unusual or non-recurring capital items, facility purchases
and/or major renovations that are funded using financing proceeds and/or
proceeds from the sale of facilities that are held for sale. We believe Cash
From Facility Operations is useful to investors in evaluating our liquidity for
the following reasons:
- -- It provides an assessment of our ability to facilitate meeting current
financial and liquidity goals.
- -- To assess our ability to:
(i) service our outstanding indebtedness;
(ii) pay dividends; and
(iii) make regular recurring capital expenditures to maintain and improve
our facilities.
The table below reconciles Cash From Facility Operations from net cash
provided by operating activities for the three and six months ended June 30,
2007 and 2006 (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
2007(1) 2006(1) 2007(1) 2006(1)
Net cash provided by operating
activities $56,082 $11,120 $84,910 $23,239
Changes in operating assets and
liabilities (6,797) 9,097 5,342 9,928
Refundable entrance fees received(2) 4,064 1,135 8,322 2,756
Entrance fee refunds disbursed (4,089) (308) (10,404) (1,011)
Recurring capital expenditures, net (7,049) (5,299) (13,274) (7,360)
Reimbursement of operating expenses
and other 812 1,350 1,942 2,850
Cash From Facility Operations $43,023 $17,095 $76,838 $30,402
(1) The calculation of Cash From Facility Operations includes merger,
integration and certain other non-recurring expenses, as well as
acquisition transition costs, totaling $3.9 million and $3.7 million for
the three months ended June 30, 2007 and 2006, respectively, and $7.0
million and $6.7 million for the six months ended June 30, 2007 and 2006,
respectively.
(2) Total entrance fee receipts for the three months ended June 30, 2007 and
2006 were $8.8 million and $1.3 million, respectively, including $4.7
million and $0.2 million, respectively, of non-refundable entrance fee
receipts included in net cash provided by operating activities. Total
entrance fee receipts for the six months ended June 30, 2007 and 2006 were
$17.0 million and $3.4 million, respectively, including $8.6 million and
$0.6 million, respectively, of non-refundable entrance fee receipts
included in net cash provided by operating activities.
The calculation of Cash From Facility Operations per outstanding common
share is based on outstanding common shares at the end of the period, excluding
any unvested restricted shares.
Facility Operating Income
Facility Operating Income is not a measurement of operating performance
calculated in accordance with GAAP and should not be considered in isolation as
a substitute for net income, income from operations, or cash flows provided by
or used in operations, as determined in accordance with GAAP. We define Facility
Operating Income as net income (loss) before provision (benefit) for income
taxes, non-operating (income) loss items, depreciation and amortization,
facility lease expense, general and administrative expense, including non-cash
stock compensation expense, amortization of deferred entrance fee revenue and
management fees.
We believe Facility Operating Income is useful to investors in evaluating
our facility operating performance for the following reasons:
- -- It is helpful in identifying trends in our day-to-day facility
performance;
- -- It provides an assessment of our revenue generation and expense
management; and
- -- It provides an indicator to determine if adjustments to current spending
decisions are needed.
The table below reconciles Facility Operating Income from net loss for the
three and six months ended June 30, 2007 and 2006 (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
Net loss $(18,675) $(20,259) $(53,815) $(39,585)
(Benefit) provision
for income taxes (12,715) 273 (33,283) 659
Minority interest (642) 233 (511) 349
Equity in loss of
unconsolidated ventures 601 469 2,054 637
Loss on extinguishment of debt 803 - 803 1,334
Other non-operating income (238) - (238) -
Interest expense:
Debt 27,953 18,963 53,192 30,493
Capitalized lease obligation 7,125 6,581 15,338 8,741
Amortization of deferred
financing costs 2,109 1,335 3,727 2,038
Change in fair value of
derivatives and
amortization (17,619) (519) (12,838) (418)
Interest income (1,563) (625) (3,383) (1,677)
(Loss) income from operations (12,861) 6,451 (28,954) 2,571
Depreciation and amortization 82,471 30,947 155,455 53,246
Facility lease expense 67,176 46,623 135,657 92,357
General and administrative
(including non-cash
stock compensation expense) 35,758 23,125 76,411 44,210
Amortization of entrance fees(1) (4,641) (62) (8,900) (145)
Management fees (1,788) (585) (3,284) (1,732)
Facility Operating Income $166,115 $106,499 $326,385 $190,507
(1) Entrance fee sales, net of refunds paid, provided $4.7 million and
$1.0 million of cash for the three months ended June 30, 2007 and
2006, respectively, and $6.6 million and $2.4 million for the six
months ended June 30, 2007 and 2006, respectively.
Operating Data
Our facility breakdown at June 30, 2007 was as follows:
Percentage of
Number of Number of Q2 2007
Ownership Type Facilities Units/Beds Revenues
Owned 167 18,545 39.1%
Leased 360 28,876 60.5%
Managed 21 4,195 0.4%
Total 548 51,616 100.0%
Operating Type
Independent Living 70 12,331 24.5%
Assisted Living 409 21,083 42.9%
Retirement Centers/CCRCs 48 14,007 32.2%
Managed 21 4,195 0.4%
Total 548 51,616 100.0%
Our quarterly facility financial data for the three months ended June 30,
2007 and March 31, 2007 was as follows (in thousands, except occupancy, margin
and average revenue per occupied unit):
For The Three
Months Ended
June 30, March 31, Increase
2007 2007 Decrease Percentage
Average Occupancy 90.7% 90.8% (0.1%) (0.1%)
Average Revenue per Occupied Unit $3,562 $3,498 $64 1.8%
Resident Fees(1) $451,981 $441,079 $10,902 2.5%
Facility Operating Expenses 285,866 280,809 5,057 1.8%
Facility Operating Income $166,115 $160,270 $5,845 3.6%
Facility Operating Income Margin 36.8% 36.3%
(1) Excluding amortization of entrance fees of $4,641 and $4,259,
respectively.
Our capital expenditures for the three and six months ended June 30, 2007
and 2006 were as follows (in thousands):
Three Months Six Months
Ended June 30, Ended June 30,
2007 2006 2007 2006
Type
Recurring $7,921 $5,970 $14,146 $8,702
Reimbursements (872) (671) (872) (1,342)
Net recurring 7,049 5,299 13,274 7,360
Other/Corporate(1) 3,219 - 9,198 2,731
EBITDA-enhancing(2) 14,619 2,250 25,010 3,524
Development(3) 8,843 - 20,579 -
Net Total Capital Expenditures $33,730 $7,549 $68,061 $13,615
(1) Corporate primarily includes capital expenditures for information
technology systems and equipment.
(2) EBITDA-enhancing capital expenditures generally represent unusual or
non-recurring capital items and/or major renovations.
(3) Development capital expenditures primarily relate to the facility
expansion and de novo development program.
Our debt amortization for the three months and six months ended June 30,
2007 and 2006 was as follows (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
Type
Scheduled Debt Amortization $454 $116 $1,028 $146
Lease Financing Debt Amortization 3,490 509 6,850 509
Total Debt Amortization $3,944 $625 $7,878 $655
Our ancillary services data for the last three quarters was as follows:
As of:
June 30, March 31, December 31,
2007 2007 2006
Units served by therapy staff:
Legacy Brookdale 14,245 7,442 3,937
Legacy ARC 12,716 12,680 12,422
Total 26,961 20,122 16,359
Therapy Clinics 302 260 186
Therapy staff 1,377 1,139 935