Exhibit 99.1
Contact: FOR IMMEDIATE RELEASE
Francie Nagy
Investor Relations
Tel: +1-212-515-4625
Brookdale Announces Fourth Quarter and Year End 2005 Results
Increases Quarterly Common Stock Dividend by 40% to $0.35 Per Share
Fourth Quarter 2005 Highlights
o Net loss of $(24.5) million, or $(0.41) per diluted common share,
including non-cash expenses of $35.3 million for depreciation and
amortization, non-cash compensation expense and straight line lease
expense, net of deferred gain amortization.
o Facility Operating Income of $84.7 million and Adjusted EBITDA of $27.0
million.
o Cash From Facility Operations of $10.9 million, or $0.17 per
outstanding common share, at December 31, 2005.
o Paid fourth quarter dividend of $0.25 per common share in January 2006.
o Average occupancy was 89.4%.
2005 Highlights
o Completed IPO in November 2005, raising combined primary and secondary
gross proceeds of approximately $240 million.
o Aggregate net loss of $(67.1) million, including non-cash expenses of
$88.4 million for depreciation and amortization, non-cash compensation
expense and straight-line lease expense, net of deferred gain
amortization.
o Facility Operating Income of $292.8 million and Adjusted EBITDA of
$66.6 million.
o Cash From Facility Operations of $6.6 million, or $0.10 per outstanding
common share, at December 31, 2005.
Recent Developments
o Entered into $330 million senior secured credit facility. The facility
includes a $250 million acquisition line and $80 million working
capital line.
o Acquired or under contract to acquire $743 million in senior housing
assets representing 9,015 units/beds since the Company's IPO. Upon
closing of these transactions, Brookdale will invest approximately $314
million of cash.
o Declared a dividend of $0.35 per share of common stock for the quarter
ending March 31, 2006.
Chicago, IL. March 14, 2006 - Brookdale Senior Living Inc. (NYSE: BKD) today
reported financial results for the fourth quarter and year ended December 31,
2005. Net loss for the quarter was $(24.5) million or $(0.41) per diluted common
share, and for the year was $(67.1) million. Results for the year represent the
three months since the formation of Brookdale plus the nine months of the
Predecessor entities. 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 $35.3 million and $88.4 million,
respectively.
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.
For the fourth quarter Adjusted EBITDA was $27.0 million, an increase of 109.4%
over third quarter 2005 Adjusted EBITDA of $12.9 million. Adjusted EBITDA for
the year ended December 31, 2005 was $66.6 million.
For the fourth quarter, Cash From Facility Operations was $10.9 million, or
$0.17 per common share outstanding at December 31, 2005. This represents an
increase of $15.0 million over third quarter 2005 Cash From Facility Operations
of $(4.1) million, or $(0.06) per outstanding common share at December 31, 2005.
Cash From Facility Operations for the year ended December 31, 2005 was $6.6
million, or $0.10 per outstanding common share, at December 31, 2005.
Brookdale generated $84.7 million and $292.8 million of Facility Operating
Income for the fourth quarter and the year ended December 31, 2005,
respectively. On a same-store basis, Facility Operating Income grew 9.5% for the
year ended December 31, 2005 over 2004. Excluding 4 development facilities in
lease-up, the Company's same-store Facility Operating Income increased 8.3% for
the year.
Facility Operating Income and Adjusted EBITDA for the fourth quarter and full
year 2005 include a non-cash benefit of $4.7 million related to the reversal of
an accrual established in connection with Alterra's emergence from bankruptcy in
December 2003. Adjusted EBITDA and Cash From Facility Operations also include
non-recurring formation and integration expenses of $3.4 million and $12.5
million for the fourth quarter and full year of 2005, respectively.
William B. Doniger, Brookdale's Vice Chairman, commented, "2005 was an exciting
and productive year for Brookdale. We completed the merger of two leading senior
housing operating companies, Brookdale Living Communities, Inc. and Alterra
Healthcare Corporation, and subsequently raised gross proceeds of approximately
$240 million in a successful initial public offering.
Mr. Doniger added, "In the short time since our IPO, we have been active
executing our business plan of growing cash earnings both organically and
through acquisitions. The 40% increase in our quarterly dividend reflects the
initial success of our strategy and our commitment to paying out substantially
all of our free cash flow to our investors."
Dividend
For the quarter ending March 31, 2006, Brookdale declared a dividend of $0.35
per share of common stock. This represents a 40% increase over the dividend of
$0.25 per share of common stock that the Company paid for the fourth quarter of
2005. The $0.35 per share dividend is payable on April 14, 2006 to holders of
record of Brookdale's common stock on March 31, 2006.
Acquisitions
Mark J. Schulte, Brookdale's CEO, added, "We have already made significant
progress executing on our acquisitions plan. Since the IPO we have committed to
acquire $743 million of assets. Our pipeline of potential transactions remains
robust. We expect to continue leveraging our national footprint and operating
infrastructure to accretively invest capital."
Since Brookdale's IPO in November 2005, the Company has purchased or committed
to purchase $743 million in senior housing assets. These acquisitions represent
101 facilities and 9,015 units/beds in 18 states. Upon closing, Brookdale would
invest approximately $314 million of cash in these transactions. The Company
will use its existing cash and corporate acquisition line to fund the equity
component of these acquisitions. To date, $231 million of transactions
representing 18 facilities and 1,928 units/beds have closed. Brookdale has
invested $69 million of cash in these acquisitions.
Business Strategy
Brookdale's business strategy is to focus on increasing its earnings and
dividends to shareholders by growing Adjusted EBITDA and Cash From Facility
Operations through:
o Internal growth at existing portfolio of facilities through occupancy
improvements, increases in annual rental rates and operational savings
due to economies of scale, and
o Accretive acquisitions of senior housing facilities and operators in
fragmented industry.
Earnings Conference Call
Management will conduct a conference call on March 14, 2006 to review the
financial results for the year and three months ended December 31, 2005. The
conference call is scheduled for 4:00 PM EST. All interested parties are welcome
to participate in the live call. The conference call can be accessed by dialing
(866) 323-2841 or (706) 643-3330 (from outside of the U.S.) up to ten minutes
prior to the scheduled start and referencing the "Brookdale Fourth Quarter 2005
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 3 months following the call.
For those who cannot listen to the live call, a replay will be available until
11:59 PM EST on March 28, 2006 by dialing (800) 642-1687 (from within the U.S.)
or (706) 645-9291 (from outside of the U.S.) please reference access code
"6080288." A copy of this earnings release and quarterly financial supplement is
posted on the Investor Relations page of the Brookdale website.
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, assisted and dementia-care facilities, with a total of 378
facilities in 31 states and the ability to serve approximately 29,000 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, and are subject to various risks and
uncertainties, including without limitation, statements relating to commitments
to purchase senior housing assets, the amount of cash to be used in such
transactions and the continuation of leveraging the Company's national footprint
and operating infrastructure to invest capital accretively in acquisitions.
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" 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
the 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, our
increased 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
maintain consistent quality control, unforeseen costs associated with the
acquisition of new facilities, competition for the acquisition of strategic
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, our vulnerability to economic downturns, regulatory changes or
acts of nature in certain geographic areas, terminations of our resident
agreements and vacancies in the living spaces we lease, early termination or
non-renewal of our management agreements, increase 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 in a recent
complaint filed against us, the cost and difficulty of complying with increasing
and evolving regulation, and other risks detailed from time to time in
Brookdale's SEC reports, including its final Prospectus filed with the SEC
pursuant to Rule 424(b) on November 23, 2005 . 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 could cause our actual results to differ significantly
from those contained in any forward-looking statement. Although we believe that
the expectations reflected in the 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.
Brookdale Senior Living Inc.
Condensed Statements of Operations (Unaudited)
(in thousands, except for per share data)
Three Months Ended
December 31, Increase (Decrease)
------------ -------------------
2005 (1) 2004 (1) $ %
-------- -------- - -
Revenue
Resident service fees $ 211,860 $ 174,827 $ 37,033 21.2%
Management fees 1,187 1,031 156 15.1%
---------- ----------- ----------- -------
Total revenue 213,047 175,858 37,189 21.1%
---------- ----------- ----------- -------
Expenses
Facility operating, excluding depreciation and
amortization of $17,657, and $7,986 for 2005 and
2004, respectively 127,105 108,233 18,872 17.4%
General and administrative (including non-cash stock
compensation expense of $11,534 for 2005) 27,690 13,124 14,566 111.0%
Facility lease expense 48,487 40,226 8,261 20.5%
Depreciation and amortization 19,022 8,867 10,155 114.5%
---------- ----------- ----------- -------
Total operating expenses 222,304 170,450 51,854 30.4%
---------- ----------- ----------- -------
Income (loss) from operations (9,257) 5,408 (14,665) (271.2%)
Interest income 1,588 288 1,300 451.4%
Interest expense:
Debt (12,809) (10,261) (2,548) (24.8%)
Change in fair value of derivatives (88) 1,711 (1,799) (105.1%)
Gain (loss) on extinguishment of debt (3,543) 1,051 (4,594) (437.1%)
Equity in earnings (loss) of unconsolidated ventures,
net of minority interest (197) (134) (63) (47.0%)
Other -- (114) 114 100.0%
----------- ----------- ----------- -------
Income (loss) before income taxes (24,306) (2,051) (22,255) (1,085.1%)
(Provision) benefit for income taxes (150) (8,931) 8,781 98.3%
---------- ----------- ----------- -------
Income (loss) before discontinued operations (24,456) (10,982) (13,474) (122.7%)
Gain on discontinued operations, net of taxes of $-- and
$481, respectively -- 1,445 (1,445) (100.0%)
----------- ----------- ----------- -------
Net loss $ (24,456) $ (9,537) $ (14,919) (156.4%)
==========- =========== =========== --------
Basic and diluted loss per common share(2) $ (0.41)
============
Weighted average shares used for basic and diluted loss
per common share data 59,710
==========
(1) Brookdale Senior Living Inc. was formed on September 30, 2005. Results
prior to that date represent the combined operations of the Predecessor
entities.
(2) We have excluded the earnings (loss) per share for the period ended
December 31, 2004. We believe this calculation is not meaningful to
investors due to the different ownership and legal structures (e.g.
corporation and limited liability companies) of the various entities
prior to the formation transaction on September 30, 2005.
Brookdale Senior Living Inc.
Condensed Statements of Operations (Unaudited)
(in thousands, expect for per share data)
Three Months Nine Months
Ended Ended Year Ended
December 31, September 30 December 31, Increase (Decrease)
------------ ------------ ------------ -------------------
2005(1) 2005(1) 2005 (1) 2004 (1) Amount ($) %
------- ------- ----- ----- ---------- -
Revenue
Resident service fees $ 211,860 $ 574,855 $ 786,715 $ 657,327 $ 129,388 19.7%
Management fees 1,187 2,675 3,862 3,545 317 8.9%
---------- ---------- ---------- ----------- ----------- -------
Total revenue 213,047 577,530 790,577 660,872 129,705 19.6%
---------- ---------- ---------- ----------- ----------- -------
Expenses
Facility operating, excluding
depreciation and amortization of
$17,567, $27,586, $45,153 and
$48,885, respectively 127,105 366,782 493,887 415,169 78,718 19.0%
General and administrative
(including non-cash stock
compensation expense of $11,534,
$11,146, and $22,680 for 2005) 27,690 54,006 81,696 43,640 38,056 87.2%
Facility lease expense 48,487 140,852 189,339 99,997 89,342 89.3%
Depreciation and amortization 19,022 30,861 49,883 52,307 (2,424) (4.6%)
---------- ---------- ---------- ----------- ----------- -------
Total operating expenses 222,304 592,501 814,805 611,113 203,692 33.3%
---------- ---------- ---------- ----------- ----------- -------
Income (loss) from operations (9,257) (14,971) (24,228) 49,759 (73,987) (148.7%)
Interest income 1,588 2,200 3,788 637 3,151 494.7%
Interest expense:
Debt (12,809) (33,439) (46,248) (63,634) 17,386 27.3%
Change in fair value of derivative (88) 4,080 3,992 3,176 816 25.7%
Gain (loss) on extinguishment of
debt (3,543) (453) (3,996) 1,051 (5,047) (480.2%)
Equity in earnings (loss) of
unconsolidated ventures, net of
minority interest (197) (641) (838) (931) 93 10.0%
Other - - -- (114) 114 100.0%
---------- ---------- ----------- ----------- ----------- -------
Income (loss) before income
taxes (24,306) (43,224) (67,530) (10,056) (57,474) (571.5%)
(Provision) benefit for income taxes (150) 247 97 (11,111) 11,208 100.9%
---------- ---------- ---------- ----------- ----------- -------
Income (loss) before
discontinued operations (24,456) (42,977) (67,433) (21,167) (46,266) (218.6%)
Gain (loss) on discontinued
operations, net of taxes of $--, $--,
$-- and $481, respectively -- 355 355 (722) 1,077 149.2%
----------- ---------- ---------- ----------- ----------- -------
Net loss $ (24,456) $ (42,622) $ (67,078) $ (21,889) $ (45,189) (206.4%)
=========== ========== ==========- =========== =========== =======
Basic and diluted loss per
common share(2) $ (0.41)
============
Weighted average shares used for
basic and diluted loss per common
share data 59,710
==========
(1) Brookdale Senior Living Inc. was formed on September 30, 2005. Results prior
to that date represent the combined operations of the Predecessor entities. For
comparative purposes the three months ended December 31, 2005 and nine months
ended September 30, 2005 have been aggregated for the year ended December 31,
2005 presentation.
(2) We have excluded the loss per share for the nine months ended September 30,
2005 and year ended December 31, 2004. We believe this calculation is not
meaningful to investors due to the different ownership and legal structures
(e.g. corporation and limited liability companies) of the various entities prior
to the formation transaction on September 30, 2005.
Brookdale Senior Living Inc.
Condensed Balance Sheet (Unaudited)
(in thousands)
As of December 31,
2005
------------------
Cash and cash equivalents $ 77,682
Cash and investments - restricted 37,314
Other current assets 30,881
-----------------
Total current assets 145,877
-----------------
Property, plant and equipment, net 1,408,732
Lease security deposits 25,271
Other long term assets 117,931
-----------------
Total assets $ 1,697,811
=================
Current liabilities $ 171,442
Long term debt, less current portion 687,885
Capitalized leases 66,284
Other long term liabilities 141,797
-----------------
Total liabilities 1,067,408
Stockholders' Equity 630,403
-----------------
Total liabilities and stockholders' equity $ 1,697,811
=================
Non-GAAP Financial Measures
Adjusted EBITDA
Adjusted EBITDA is a measure of operating performance that is not calculated in
accordance with generally accepted accounting principles in the United States
("GAAP"). Adjusted EBITDA should not be considered 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 and the board of directors 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 lease 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:
o 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
o It provides an assessment of controllable expenses and affords
management the ability to make decisions that facilitate meeting
current financial goals as well as achieve optimal financial
performance
o 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 months
ended December 31, 2005, nine months ended September 30, 2005, year ended
December 31, 2005 and the three months ended September 30, 2005 (in thousands):
Three Months Nine Months Three Months
Ended Ended Year Ended Ended
December 31, September 30, December 31, September 30,
2005 (1) 2005 (1) 2005 (1) 2005
---------------- ---------------- -------------- ---------
Net loss $ (24,456) $ (42,622) $ (67,078) $ (29,446)
Gain on discontinued operations -- (355) (355) (237)
Provision (benefit) for income taxes 150 (247) (97) (432)
Equity in loss of unconsolidated ventures 197 641 838 196
Loss on extinguishment of debt 3,543 453 3,996 ---
Interest expense:
Debt 10,485 26,564 37,049 10,802
Capitalized lease obligation 2,324 6,875 9,199 2,324
Change in fair value of derivatives 88 (4,080) (3,992) 67
Interest income (1,588) (2,200) (3,788) (825)
----------- ----------- -------------- ------------
Loss from operations (9,257) (14,971) (24,228) (17,551)
Depreciation and amortization 19,022 30,861 49,883 15,058
Straight line lease expense 5,895 17,857 23,752 5,882
Amortization of deferred gain (1,152) (6,786) (7,938) (2,200)
Non-cash compensation expense 11,534 11,146 22,680 11,146
Entrance fee receipts 1,999 3,230 5,229 1,971
Entrance fee disbursements (1,065) (1,670) (2,735) (1,413)
Amortization of entrance fees (15) (18) (33) (15)
----------- ----------- -------------- ------------
Adjusted EBITDA $ 26,961 $ 39,649 $ 66,610 $ 12,878
----------- ----------- -------------- ------------
(1) Brookdale Senior Living Inc. was formed on September 30, 2005. Results
prior to that date represent the combined operations of the Predecessor
entities. For comparative purposes the three months ended December 31,
2005 and nine months ended September 30, 2005 have been aggregated in
the year ended December 31, 2005 presentation.
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 a substitute for
cash flows provided by or used in operations, as determined in accordance with
GAAP. We define Cash From Facility Operations as cash flows provided by (used
in) operations adjusted for changes in operating assets and liabilities,
refundable entrance fees received, entrance fees 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.
We believe Cash From Facility Operations is useful to investors in evaluating
our liquidity for the following reasons:
o It provides an assessment of our ability to facilitate meeting current
financial and liquidity goals
o 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 months ended December 31, 2005, nine
months ended September 30, 2005, year ended December 31, 2005 and three months
ended September 30, 2005 (in thousands):
Three Months Nine Months Three Months
Ended Ended Year Ended Ended
December 31, September 30, December 31, September 30,
2005(1) 2005(1) 2005(1) 2005
-------------- -------------- -------------- ------------
Net cash provided by operating $ 9,093 $ 7,807 $ 16,900 $ (3,754)
activities
Reconciliation of GAAP operating cash
flows to Cash From Facility
Operations:
Changes in operating assets and 6,199 (257) 5,942 4,132
liabilities
Refundable entrance fees received 1,513 2,530 4,043 1,544
Refundable entrance fees paid (1,065) (1,670) (2,735) (1,413)
Recurring capital expenditures (4,868) (12,640) (17,508) (4,614)
----------- -------- ----------- ------------
Cash from Facility Operations $ 10,872 $ (4,230) $ 6,642 $ (4,105)
---------- -------- ---------- ------------
(1) Brookdale Senior Living Inc. was formed on September 30, 2005. Results
prior to that date represent the combined operations of the Predecessor
entities. For comparative purposes the three months ended December 31,
2005 and nine months ended September 30, 2005 have been aggregated in
the year ended December 31, 2005 presentation.
Facility Operating Income
Facility Operating Income is not a measurement of operating performance
calculated in accordance with GAAP and should not be considered 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 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:
o It is helpful in identifying trends in our day-to-day facility
performance
o It provides an assessment of our revenue generation and expense
management
o 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
months ended December 31, 2005, nine months ended September 30, 2005, year ended
December 31, 2005 and three months ended September 30, 2005 (in thousands):
Three Months Nine Months Three Months
Ended Ended Year Ended Ended
December 31, September 30, December 31, September 30,
2005(1) 2005(1) 2005(1) 2005(1)
------- ------- --------- -------
Net loss $ (24,456) $ (42,622) $ (67,078) $ (29,446)
Gain on discontinued operations -- (355) (355) (237)
Provision (benefit) for income taxes 150 (247) (97) (432)
Equity in loss of unconsolidated ventures 197 641 838 196
Loss on extinguishment of debt 3,543 453 3,996 ---
Interest expense:
Debt 10,485 26,564 37,049 10,802
Capitalized lease obligation 2,324 6,875 9,199 2,324
Change in fair value of derivatives 88 (4,080) (3,992) 67
Interest income (1,588) (2,200) (3,788) (825)
------------- ------------ -------------- -----------
Income (loss) from operations (9,257) (14,971) (24,228) (17,551)
Depreciation and amortization 19,022 30,861 49,883 15,058
Facility lease expense 48,487 140,852 189,339 47,259
General and administrative 27,690 54,006 81,696 31,025
Amortization of entrance fees (15) (18) (33) (15)
Management fees (1,187) (2,675) (3,862) (988)
------------- ----------- --------------- ------------
Facility Operating Income $ 84,740 $ 208,055 $ 292,795 $ 74,788
-------------- ----------- -------------- -----------
(1) Brookdale Senior Living Inc. was formed on September 30, 2005. Results
prior to that date represent the combined operations of the Predecessor
entities. For comparative purposes the three months ended December 31,
2005 and nine months ended September 30, 2005 have been aggregated in
the year ended December 31, 2005 presentation.
Our facility breakdown at December 31, 2005 was as follows:
Number of Number of Percentage of Q4 2005
Facilities Units/Beds Revenue
---------- ---------- -------
Ownership Type
- --------------
Owned 72 8,712 35.1%
Leased 295 18,093 64.3%
Managed 16 3,250 0.6%
------------- ------------------- -----------
Total 383 30,055 100.0%
============= =================== ===========
Segment Type
- ------------
Brookdale Living (IL & CCRC) 64 13,554 48.9%
Alterra (Assisted Living) 303 13,251 50.5%
Managed 16 3,250 0.6%
------------- ------------------- -----------
Total 383 30,055 100.0%
============= =================== ===========
Our quarterly financial data for the three months ended December 31, 2005 and
September 30, 2005 was as follows (in thousands, except occupancy and average
rate):
For the Three Months Ended
Increase (Decrease)
December 31, 2005(1) September 30, 2005(1) Amount Percentage
-------------------- --------------------- ------ ----------
Average Occupancy 89.4% 88.7% 0.7% 0.8%
Average rate ($) 3,062 3,038 24 0.8%
Resident Fees(2) $ 211,845 $ 208,356 $ 3,489 1.7%
Facility Operating Expenses(3) 131,851 133,568 1,717 1.3%
-------------- ----------- ------------ ----------
Facility Operating Income $ 79,994 $ 74,788 $ 5,206 7.0%
-------------- ----------- ------------ ----------
Facility Operating Income Margin 37.8% 35.9%
(1) Brookdale Senior Living Inc. was formed on September 30, 2005. Results
prior to that date represent the combined operations of the Predecessor
entities.
(2) Excluding amortization of entrance fees of $15 and $15, respectively.
(3) Excludes non-cash benefit of $4.7 million related to the reversal of an
accrual established in connection with Alterra's emergence from
bankruptcy in December 2003.
Our capital expenditures for the three months ended December 31, 2005 and nine
months ended September 30, 2005 and year ended December 31, 2005 were as follows
(in thousands):
Three Months Nine Months
Ended Ended Year Ended
December 31, December 31, December 31,
Type 2005 (1) 2005 (1) 2005 (1)
- ---- ----------------- ----------------- --------------------
Recurring $ 5,539 $ 13,982 $ 19,521
Reimbursements (671) (1,342) (2,013)
----------------- ------------------ --------------------
Net recurring 4,868 12,640 17,508
EBITDA enhancing(2) 1,208 998 2,206
Other/Corporate(3) 1,992 123 2,115
----------------- ----------------- --------------------
Gross Total Capital Expenditures $ 8,068 $ 13,761 $ 21,829
================= ================= ====================
(1) Brookdale Senior Living Inc. was formed on September 30, 2005.
Results prior to that date represent the combined operations of
the Predecessor entities. For comparative purposes the three
months ended December 31, 2005 and nine months ended September 30,
2005 have been aggregated in the year ended December 31, 2005
presentation.
(2) EBITDA-enhancing capital expenditures generally represent unusual
or non-recurring capital items and/or major renovations.
(3) Corporate primarily includes capital expenditures for information
technology systems and equipment.