SNDA - Earnings call transcript Q1 2022 | Sonida Senior Living, Inc.

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Operator

Good day and welcome to Sonida Senior Living First Quarter 2022 Conference Call. Today's conference is being recorded. All statements today, which are not historical facts may be deemed to be forward looking statements within the meaning of the Federal Securities Laws. These statements are made as of today's date, and the company expressly disclaims any obligation to update these statements in the future. Actual results and performance may differ materially from forward looking statements. the that the actual issued XX-Q. time earnings as XX-K as reports factors are to earlier quarterly to these filings and annual well in company report risk detailed release in in time, of including could SEC Form factors results cause differ today, with the Certain the to contained from the reports on the Form company on be found see morning. harbor may Please press statement, in furnished the release this www.sonidaseniorliving.com/investor-relations safe full at the today's for filings was and which X-K please the non-GAAP Also, note will that call, during company measures. this financial present

over each For Sonida and President Ms. release. of measure, this Senior please Kimberly the see CEO, Lody. non-GAAP reconciliations call most At comparable to GAAP to measure from like time, Living’s press today's I'd also the turn

Kimberly Lody

Thank morning, you, Senior welcome afternoon, to discuss everyone First conference good Quarter and or Sonida call XXXX Results. to Living Doug. our afternoon, Good

mind strong XXX-basis for the the new Officer; COVID-XX are today recovery good Sonida’s Brandon rent basis on same the the to to X.X% compared me the occur increases about XXXX. of our per increased solid pacing our is and we've bit the place lot quarter. to community in occupied provides X% a increase, There consider compared news of growth, Joining are place more Officer, first now year. Chief as last this renew. quarter. revenue of to growth. store time. increases occupancy XX% consecutive quarter year succeeding. increased revenue XX.X%, that rate demonstrating down Most clearly Same Ribar, in a rent Operating Kevin in occupancy Breaking four are quarter quarter first as and due Revenue last This growth leases rolling of as quarters at at during is well Same point the same quarter flexibility Keep level importantly, that situations market or strategy ongoing occupancy the with to Detz. improvement and increase the resident is XX.X% a ramp store compared rent year Chief delivered increases in performance our renewal on throughout and us a through unit Financial resident

during addition, new In for corresponding market rate than recently period also exact apartment rates higher same for about same movements X% are the the vacated. the

and market renewals first So we in the year, rents feel as in our months of the new as three execution well movements. for place rate good of through about both increases terms

portfolio fourth operating Importantly, in basis points has of margin of the quarter XX.X% quarter expansion. our sequentially same first store from Same point of XXXX. begun quarter from XX% increased of the margin NOI increased net And to fourth in to ‘XX low XXXX. the deliver XX.X% XXX the income store

Our focus revenue COVID follow. NOI recovery growth heavily on occupancy and strategy was to that would knowing

NOI expansion very while elevated and of our incremental have continue As mentioned grow costs, growth. quarter marks earlier, as consecutive months. four that especially revenue delivered also we the We that believe of we've costs the beginning occupancy XXXX first occupancy quarters managing performance contract revenue in I and labor been in now recent of to

retaining effort hard leadership need to agency on new have intense by community staffing, members. contract teams focusing hiring, working team recruiting, Our been reduce the and for training

also premium labor, strongly been not recent and but net hires most have positive indicates in both stability our the utilization quarters. importantly, the of result, of consistency in costly This further a most in reductions As only two workforce.

couple recent independent like of by satisfaction Speaking third-party to results from highlight team we a of an at organization. survey have I'd amazing members resident the companywide a Sonida. conducted

feels community respondents levels agree our that across like home. care of of XX% organization, strongly all For their or agree

our For care and community benchmarks our Trails unique activities, in industry, XXXX surpassed caregiving Care safety. memory Memory Magnolia scores with satisfaction the program,

results, proud excellence. continuing scores believe proud people and provide three our unrelenting more very long-term reflect our to employees are commitment these We of priorities, will directly and by of We residents. communities even our focus that incremental short value of because to the we working investors, on major the satisfaction in for and

our and and Our top health, members wellness differentiated centered culture our resident priority with continued team the programming. is people of engagement residents of development and

the by is Second is expansion. delivering NOI third pre-pandemic recovery And to occupancy end XXXX. levels of

diligently innovative We income expect the expenses. operating year growing rates solutions improve and managing sequentially throughout to staffing deploying our by increasing responsibly, net occupancy

I'm joined then to May providing X, we'll with Officer. Sonida’s already team to insight more a comments, existing are significant members now value and go along he on of on for business. introductory Dietz; our the call Kevin to new an Lastly, Chief Kevin Financial I'll and to the welcome over turn for couple Kevin delighted the operations. company Brandon and

Kevin Detz

Kim. kind those where words, Kim for off. left pick up you To Thank

of Management, I've with depth to pivotal I'm results teams. continuing breadth impressed extremely out quarter in the this the eight company the has to time. strategy. are first and spent team working the execute company's entire been excited company equally late community debt This in Having the and progress the been proving exciting years Brandon, join recapitalization year last caused talent last work runway along maturity growth on the great the our is leadership point to forward inflection to with the provide with Kim, looking The in from pandemic. that and by Hospitality to

to maximizing time, I Ribar. an raising serve As part while margins our Operating Chief up. incremental Brandon our Officer, includes of growth on push At a growth this G&A, occupancy this will strategy over turn it on our keen focus corporate cost

Brandon Ribar

improvement driven marks metrics. I'm and by Kevin, and of accelerated COVID impactful in market the the period ongoing labor the end you, yet pleased hopeful The Thank another with all regional are afternoon. Well, up operating resilience our stages have operating good teams local easily the the operating of of most pandemic. challenges we so first cases our the headwinds. through could stalled the of of quarter

contribution living, a down margin and improvement operating quarter the positioning XXX well nearly volume MSA. we of acquisition for over units the traditionally in on for purchase as not QX, at exceeding as living metrics Even and With within with two achieved delivered our expected communities March in integrated face AFFO operating XXXX REVPOR independent the the low teens. stabilization, sequential five we the QX more referenced. However, cost yield In senior all XX% completed but in first improvement, Kim Indianapolis headwinds. labor key also only April trends of and an encouraging in across rate, favorably both occupancy also an in sequential performance in improvement moved during years and

acquisition value to this confident We return our are shareholders. will

as by the of team. from We months sales first efforts two and occupancy marketing to of are early the encouraged nine our points were Sonida in as the results communities improve part able

goal to we Our identify have markets where operate operate similar in or we to is currently portfolio. characteristics continue don't that opportunities to today, similar where acquisition current markets our

exceeded As $X occupancy in well of to of comparison, we the XXXX. of just May. year-over-year continues both are total occupancy quarter tour XX% were each above Kim and in generated the XX indicators increased for upside related or as and capital pleased the and or communities lead to occupancy in and pleased our at same communities our focus of Ongoing the improved volume revenue XXXX. In first than end million, in increase as in Portfolio the XXXX XX% period a XX with as year-over-year investment of for XXXX. growth the X.X% encouraging at XX respectively, four achieved sequential of first referenced, XX% movements. of and demand communities own manage more QX the revenue over improvement Key for with in we months XX% sales mark to or we XX% XX% are of or have remain marketing QX support be XXXX

market on focus movements aggregators. third increase to strategic own lead increased a leads party our efforts from generation and movements generated and Our digitally through outreach reliance less year-over-year on in generated of

our late completion in now have to either completed enhancing or revenue projects And in million in to of One enhance communities position. QX, and our invest competitive several XXXX dates goals XXXX. continue to with underway nearly $X capital These we in began of is capital our projects QX.

impacted are minimally that projects only marketplace. by chain We supply issues have in the various been pleased our

costs movement more increased six contract, During $X.X recent increase the positive labor difficult and our discussion for was of end another After we in results, to referenced over million, key metrics of total and QX related labor overtime. quarter. months. the XX% than Year-over-year your labor last

expected are the improvement. year. of premium reduce Net front, cost we underway due additional showing are throughout signs in friendly Sonida’s is sequentially that contract cautiously labor decrease positive resident employee optimistic improve agency the that are Further and staffing remain and dollars across labor service third-party hires communities overall On models QX. to implementation flexible of the QX of

accelerated experienced candidate use stability agency. communities previously in the flow and of have requiring third-party We

have Early retention a for also early of retention in QX reduction existing Our trends turnover. increased strategies and employee in internal favorable recruiting XXXX. show employees year-over-year

resident decreased facility Finally, early supply we the technology consisting related implementation menu further fourth X% costs an experience expense food In of processes. X% enhance maintenance, sequentially, food, and costing updated non-labor quarter and just XXXX, and marketing, declining primarily our overall of items to with completed XXXX. related of expenses from management meal management under

pressure pleased XX% continued sequentially margin our labor the is margin current and expansion in operating to with growth While both environment, sequential team impact and year-over-year. recovery

through staffing stable increase continued strong team and all in XXXX high ongoing stable services inflation this achieve for improvement consistent improve models, through communities, margin and driven care resident goals across growth dedicated remain REVPOR of a and occupancy expense creative practices and deliver Our environment. and employees, excellent management by revenue

to time. move questions of open portion for the at line call. please this now will the We Operator, the question-and-answer

Operator

the Thank At be session. [Operator Barclays. you, your question Instructions] line conducting question. proceed we ladies question-and-answer and first Our from will Steven a Please with this with comes Valiquette time, of gentlemen.

Steven Valiquette

everyone. afternoon, the Thanks Good taking for Thanks. questions.

Kimberly Lody

Steve. Thanks,

Kevin Detz

Steve. Thanks,

Brandon Ribar

Hi.

Steven Valiquette

just year the on emergency to remind just material around nod thinking just that's or kind million obviously And your think funds, beyond additional do remind this perspective, if a that APR which and foot had now? us funds is that, company the in guys year, point guess the you impact at off, relief about start of if you public right it? another from expect I ‘XX? the one that's the X Or Thanks. you're the positive. health also, other? Or that us? any that of pretty way Would way an you know can ‘XX just Is of rest some you receives potentially that that

Kimberly Lody

we have from additional point, programs. expect from funding are currently Cares this the to from There for don't are funds day that we applied we state level. at so that those some Yes, federal Act receive and underway, programs expect would the

In fact, the we received quarter. some second in in

So, nearly the see rest ending of terms in health But in we year. don't terms the this happening. the year. million, by disbursement the that of of sort that to the then $XX end out would us remainder see I spread of for of year. of the And big, emergency, through public the

we the end end I already at pandemic We of million. think the during we've one of do first $X.X year, for a by last year. repaid The repay the read do and payment to in that really us. non-event employee this was thing the the taxes do that that wages, need made of $X.X related participate is certain it to income we million deferral we did of

Steven Valiquette

Yes.

Okay.

trends I next leaving guys, addressed where off quarter the expense to kind you're the for of quarter. first You labor think in

now. think on for alone quickly just leave topic the your I be we'll touch And one, So to property other acquisitions. around just some would of that

obviously Or few year? in of you've Indiana between additional end think keep do You in now acquisitions should had expect and fairly investors once a you busy. and Arkansas. completed, property we'll any the a couple guys you the

the integration as For etcetera? now, process, far as

Kimberly Lody

we're Well, criteria. opportunities, acquisition continuing to specific we have pretty look for

fundamentals Arkansas operations to that developed of couple added communities referenced the we of us are percentage on just that and the there the platform and see the here another, or we've what can occupancy Ventajas they've make last first that if communities, for we the to we that communities just in we do with communities our to years, in on want we're the that really layer nine looking over community couple Brandon And then In months a platform. similar what of terms our Indiana in our for, their in increase that sure acquire managed been improvement are point note clarification, back communities portfolio of December. with that

we the interested that market for our that the a in like focus managed has and on same that But but portfolio. to acquisition markets perspective, today, don't to where the average additional is to we continuing or additional primary portfolio, either we be operate, the where grow looking those overall just then, our characteristics And from to meeting in in color we're reduce candidates, would general have footprint age that good couple characteristics looking their So add helpful, also feel to similar portfolio. a middle operate in or we currently are of acquisitions. market, comments we through the portfolio markets of

time to well. and looking as we over also as do the deliver So time, add and to that we're portfolio over to

Steven Valiquette

it. Got

right. Okay. me. it All for That's Thanks.

Kimberly Lody

Thanks right. All Great. for you

Operator

to like over Kim queue. the in are to back hand for further There the call remarks. Lody questions closing no I'd

Kimberly Lody

concludes Well, conference. day. I great. today's and want everyone have to great thank right, this a attending, All for

Operator

Ladies participation. today's teleconference. and your Thank for conclude this you does gentlemen,

may wonderful at have You disconnect this time, lines day. and your a

Sonida Senior Living (SNDA) 23 May 222022 Q1 Earnings call transcript