BKD - Earnings call transcript Q1 2022 | Brookdale Senior Living Inc.

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Operator

Hello, everyone, and welcome to the Brookdale Senior Living First Quarter Earnings Call. My name is Victoria, and I will be coordinating your call today. [Operator Instructions]. I'll now pass over to your host, Kathy MacDonald, to begin. Please go ahead.

Kathy MacDonald

morning. good and you, Thank I'd like Earnings First XXXX to welcome for Brookdale you Call the Senior Quarter to Living.

for and these actual future. with expressly our the Joining us risk the of Executive the Vice statements Swain, time Chief today's as to are be results as not forward-looking statements President XX-Q. our statement. as Officer. are are on to including disclaim historical you obligation may President call, well differ the the the to and quarterly to the during from time, today, Executive issued facts contained which meaning today measures. that are of Officer; present cause any detailed we statements Cindy in made and within reports reports we release full SEC Form differ Baier, XX-K yesterday of Chief the this that will report in the factors forward-looking All federal securities non-GAAP I direct Financial from annual deemed file please results may statements earnings note the and be to performance and statements. financial Form could update safe and on Actual factors the laws. Also, we in These harbor in release we materially date, Certain Steve

measure, may furnished to I For reconciliations be you GAAP was yesterday. brookdale.com/investor of information, each at and X-K on direct comparable from non-GAAP release most found and measure the an the supplemental which

Cindy. over will Now call I turn to the

Lucinda Baier

loved are to hope analysts morning our healthy you and Good quarter of and earnings our Kathy. XXXX first shareholders, you, Welcome call. and other Thank all happy. participants. I ones your to

in and U.S. feet to pleased role our achievements cases against to first indicators Omicron variant pandemics priorities. significant continued We highest quarter of the of recovery causing play the growth COVID-XX quarter, a continued the with report XXXX in strong first are revenue today.

advance to and effort thanks efforts. associates of a Brookdale, our mitigation hard the work our and and prevention concerted For from learn to

infections infection reduce X increased tools continued the residents impact learn coupled control, past the of of community's help strong COVID-XX highly communities effective residents, communities. shot how team soon good has I priority. low protect we've of awareness seasonal our to made and We am our lengths top control. our all viral to our to the for diligently gone associates worldwide With XXXX. our with clinics and working of cases We've over and our to and to on using above as navigate related impact to our the for grateful challenges strong these great residents. possible. seniors, the schedule are in infection as Moreover, seniors, Indeed, our booster their promptly who beyond been in and continue for health of well-being approved second flu to and to for years, our the clinical complete make clinics work with go progress

I am and thankful caring within reality. who our Our people, Brookdale so make care business a the taking people on for depends of leaders culture

As strategic XXXX already our strides I mentioned, great have have made priorities. on we

in occupancy to rate grew to is best quarter X% quarter. service every sequential the room the quarter results strategic RevPAR a for our at year get first pleased on deliver years. were financial the priority available increased and best the sequential prior basis. Our We first linked in profitable XX highlights first directly compared to to XX%

Our robust lead quarter exceeding inquiries first model pre-pandemic with is levels.

move-in need journey. are quarter, to exceeded Move-in attract the averages their to in to pre-pandemic decision-making first conversions. our a we We in to continue residents to visit for February. build they refine accelerated in programs pipeline volume And visit strong and wherever

first to rate I'm our Our all credit took strategic our operational increases in movements engage, implementing and rising truly help occupancy more simultaneously with understood higher the necessary our our about excelled now to teams to residents What quarter. rate comes When best it rationale adding goes their history. inflation. make develop achieve our this executive it first to sure mitigate associates. directors families progress the move and labor did is occurred who sales, X,XXX in attract, is retain positive pleased and to the I'll with in costs our remarkable the to move-ins and of marketing March talent, highest second it increase. quarter's than to news March, that priority: The

doubled Our grew efforts, with during sequential to and was which packages flexible possible, a competitive associates, sizable These the net undertaking. more a schedule XX,XXX recruiting where intense than first offerings. workforce a on X.X% quarter, are testament continues basis, results our compensation we nearly to and hires by our and be

had our have for we positive every and are to since pleased we building yet competition done November. team, said, We the report have as remains intense. on month been I'm aggressively net That last not talent hires focused that

proposition strategy. We contract associates, associates. our we talented focus us help of to to profitable and and retain on are will growth focus plan continuing continue labor This increasing number reduce Brookdale our to associate value the our accelerate

slightly appropriately the additional first pressure expenses to contract Speaking difficult environment, labor on continue sequential quarter ensuring a an staff while our labor, our communities. while put contract we basis, of on improved labor Omicron already all

for the offer, hires move completing satisfy agency an including team our through process, As and their our new staffing. contractual we accepting joining training and officially recruiting the requirements

in the half substantially labor contract of more year. see second quarter to expect the second the and declined in moderate We

recent Thanks having industry, a providers be a I'll care response valued, top as our to significant resident actions to Brookdale study, continue earning their sometimes retain continuous endeavor deliver satisfaction and that To residents now and personalized move families to strategic and In COVID-XX of their views we able in attract third strong meaningful our often by a to priority, refine insight, which percentage request more incremental in service. To understand glean and breakthrough to our the to including a and rated from families. the organization. better have family continue from feedback than changes, pull we and we health the through we to high-quality best and improvement residents and been we trust We and received XX,XXX our care their our associates. recent engagement, end, survey learning needs. providing responses.

in results expect continue our the the We tangible determine at accelerate to In as our to priorities, analyzing strong enhance with progress growth where against hard first quarter momentum progresses. customer we summary, are work already and RevPAR year strategic can we the our strong exceptionally focus. to

to this guidance. We are by reaffirming make and positioned continuing well for win residents are career in our progress, our helping opportunities previous live is market compelling best associates. competitive to dynamic their lives and providing annual we and Brookdale

shareholders. to for value will the our over deliver continue turn will long-term call We Steve. I to now

Steven Swain

Thanks, Cindy.

me Let start with X takeaways. key

RevPAR quarter first XXX through prior growth of increased This point compounding First, to quarter. the increase March. was occupancy nearly X% increase effect basis the compared in XX% and both from year net strong a the rate a

by quarter flat, Occupancy decline. seasonal a better the occupancy residents. nearly pleased increased mainly We increase was in-place January on rate representing basis pre-pandemic April. RevPAR compared much performance sequential momentum driven are in X%, first for to continued X a

were basis, expenses. X% higher. Second, sequential facility expenses operating a On

However, increase adjusted higher a approximately in costs contract EBITDA slightly of The mitigated rate increase lower. operating labor X%. resulting was sequential

a runway decade is given the and population target revenue a rest top growth new opportunity housing tailwinds, there this for supply-demand strong significant growth for growth of Third, the line is senior units in relative construction, with favorable compelling. the of under our decline

context XX provide sequentially prior XXX points on year basis. XX% Now points. let with on a growth, year quarter context than declined the occupancy basis. grew or sequential the where the you first the a highlights consider and is than for X% community on occupancy starting a Combining sequential RevPAR was a a outstanding and me RevPOR sequential on nearly basis, Occupancy revenue. sequential better quarter rate generally The more these when the basis. prior X% was result better basis basis and our basis and same flat on approximately year-over-year than rate quarter by pre-pandemic

with to rate main X%. of community X we in markets. expense higher COVID-XX-related were community senior Health net partially nearly market new adjustments quarter quarter labor doubling quarter. important sequentially. the nearly investments contract costs seasonally marketing the to trained. Turning slightly higher, mitigate In Same sequentially, lower X.X% initiated key and hires basis, utilities. the customer use first of as was labor in increased and a impact first Starting increased the labor labor earlier, competitive same operating fourth sequential we And higher with drivers labor on-boarded other facility was sequentially. There were to full associates the increases. expenses continued X% This contract acquisition on helped labor insurance mentioned operating quarter realized a housing local remain these higher expense. expenses, increase expense The total, increased expenses expense drivers: and operating we in were, as

reset payroll care quarter. On compared at G&A expense, increases G&A to bonus the beginning quarter in year the costs the expenses reducing The typical restructuring basis, prior and the health decline first primarily year. taxes XXXX. non-cash first our comp was increased stock-based following was The to due transaction due for sale of a to lower excluding sequential services and accrual of quarter the business and organizational

plan. care In basis. year increased initiated X% the as first the a increased were compared XXXX costs on Adjusted sequential we to X% higher our prior quarter for quarter and addition, health EBITDA

fourth deferral adjusted dropped The significant the to benefit quarter the of free driver the Act, repayments recoupments, was and Turning of program. largest sequential change was capital million cash CARES mainly capital for cash where million. payment use working the Working tax payroll cash flow. $XX to related $XX of a

liquidity. to Turning

position remains Our liquidity strong.

have year XX, year. $XXX important As maturities slightly of better is a ago, the the than and a to million, liquidity we it amount of for balance March debt note of total negligible was

guidance. Turning to our XXXX

EBITDA momentum excludes continuing first second $XXX expectations let would guidance, million range second quarter the was our sequential XXXX. expectations share to annual XX% XXXX, XX% RevPAR This XX will between the high-level expect We April, growth government benefit occupancy better sequential quarter, some annual occupancy of basis future in in adjusted we the XX% of me March adjusted to from midpoint, quarter At growth Within of our with in are the and grants. in than increase and quarter the growth to range reaffirming points. inflecting be million. EBITDA from positive $XXX guidance and first the which the second of

our the to we a results, flat because quarter positive RevPOR, basis. first our in rate January of on expect reflected impact of relatively is X For RevPOR increase be sequential

hire Summing net with will the annual expect up sequential adjusted in we quarter lower to in we our OpEx, on to EBITDA. and the offset merit by which full expect turn quarter. increase, call contract partially initiative, have over the expenses, increased occupancy labor a operating For will impact continue and increase back community's second we as second making I in a progress decrease, the quarter Cindy. sizable occurred now mid-March

Lucinda Baier

I senior stakeholders. continue thus, housing opportunities to valued and for long-term for strongly in believe the all our

performance we knowledge, and way took and learning that are executing from in XXXX. our earlier, are a on first pace. well committed enhanced our strong what to we mentioned with initiatives the to I As excellence pandemic accelerated strategic we the learned we recovery improving an against our year We organization. in are drive XXXX, on of believe a With

Kathy MacDonald

we questions. Victoria, ready are for

Operator

And Brian from Tanquilut question Jefferies. comes Instructions]. our [Operator from first

Brian Tanquilut

QX first at Just XX% performance I as of in roughly I Cindy, think obviously, times. the represents the EBITDA. historical EBITDA your quarter, for look guess, question But trends me. for the normally where I we're different a annual about

year can just hit help gain and can maybe for confidence you from bridge QX full earnings? that your guidance So you how you performance us the

Lucinda Baier

it. As guidance this about without to I giving sort for guidance, think the line our I is think of think about item a individual year, way good

include doesn't in about million of our that first you the If quarter, occupancy. $XX and quarters. multiply had But X what you by is EBITDA, that build we think

year. about in the of middle good said rate And what at occupancy the so look as sort last we already least occupancy the expecting baked into if the think as growth, gain is we're rate. of run the you previously, And you at range, if

So of that's where quarter to the between the first and results the expect end we ramp our year. part biggest

when more net the to you Omicron this, the Second, we expect labor our intensely really, in market lower first And both competitive did. about cost. contract in than resulted historically labor labor quarter us think we and using

elevated. from it -- was quarter, fourth the in still the improved but it's Now fourth

expecting of we're contract year. labor the with so improvement to our the the sequentially half most And of in come back down

be contract expensive. labor, with our we'll staff That variable have X annualized as merit higher and to market Xx increase by so will or the which is adjustment less And occupancy. offset

thing third COVID, of expenses. have. first you the that's quarter, we COVID And is less And we than much had the think So sort expenses we've half is if about throughout Perhaps would higher experience to given COVID be $XX with of lower the the normally that had we the in less. year. expect that million

hires. it's And so middle I progress this to you the all to issue, last gets about just we've The thing that really you of get sort if range. that of think really made the the that the will higher-end highlight, that, net labor want to contract on and

isn't includes and Brookdale the of reporting this way which associates period. single number the April, since November, that month improved through all have part We every of

net sort QX, doubled. And of to our hires QX

important little labor, expensive. time, And that's same hires, they which to the is to you why a them to have get you And trained. have to training, that worker you while have at think the takes to about be is while have contract is pay net they're essentially, then train. X on to Now it if board. And Xx

So the sort first see year. that of should quarter for results how help guidance into bridging you our we understand our

Brian Tanquilut

that with level you on on Appreciate And about can what Brookdale the past as thoughts as that to then second a recession the your a that maybe rising rate and rate horizon, And an the maybe had my your a both rising just environment you're question, potential coming around environment? experience up, guess I color. think your interest from if planning share move-ins business, on does perspective? at or then in you I us look maturities Cindy, how

Lucinda Baier

A environment. rising rate

almost our this security value gives highest And that purchasing we for thing are incredibly year, on services power. sure that them that's increased focus encouraged think they've the providing that important. that X%. we're got we residents a I that the something by their increase is that's while, social that in had always We offer. And making for

Now And to monthly before forecast some ways, or they what people And prices increase. inflation attention going really, we that's our our residents be than to who of for in are sort pay a affordability. much I'll seeing a good try expense of consistent is you have costs do But month. what's do over more we our rate comforting turn massive Steve, to lot gasoline are we and to food costs. it now. every

Steven Swain

bet. you Yes,

XX% at So and XX% fixed QX, end was the variable. of debt roughly of our

LIBOR interest so the points company approximately to of the basis increasing leads an every annualized impact rates for million. expense interest $XX So of or in XXX of for

higher we yield current be the which estimate changes at will interest frequently, $XX Looking roughly million curve, expense XXXX. than

I XXXX maturities. think We implemented interest expense, And XXXX. cash. it any higher than And for our a don't we in to Just expect million plan over asked debt even XXXX, refinancing you have be with is we positive million maturities. our little XXXX a remaining XXXX the where don't our maturities, lower interest $XX was use net $XXX of still context, about in

Brian Tanquilut

then And question for me. last

about I that? seasonality know this share time color What But this used can the and planning you to that. As and on in are purposes. conversion. statistics And just inbound a think thinking Cindy, I and you modeling it's calls around expectations? inquiries around. how your any know, just about Maybe are give occupancy, I different on little factors past, you for

Lucinda Baier

Yes.

first on I move-ins. was Let pleased with me performance saying completely quarter our start by

have nearly QX, sort point QX see an expected about think to you seasonality, what between were about decline normal we pre-pandemic we basis and is and XX of would our If flat.

was my that So perspective. just fabulous from

occupancy is second inquiries, if inquiry year. will the do that which as XXX from pre-pandemic quarter, second you since And last year at of in about as performance our stronger really least points XXXX sort What seasonality, X-year of XXXX, higher really look on think, we seeing than is at to side, average, expect even year. last we occupancy. X% our we're good quarter seen built certainly this April than our we Now you've are the they of of March of good. the basis what be And

Our resident move-ins are about X% higher.

very for a And decade. I the market outlook. we're same demand. we seeing relates time, million think our And year, new we're pandemic encouraging the the at that impacted So that seniors fact year have entering X every potential this that the to seeing next now target

from got of tailwind a a result so the construction of a we've pandemic. And as the in slowdown bit

Operator

comes LLC. question from Research Nephron Raskin Our Joshua next from

Marco Criscuolo

This Based levels, double X.X% have EBITDA margin even of XX%. about a it increase math, debt our guidance margins looks the light leverage. level to on implies more of that for is current sustainable Josh. like would midpoint appears significantly, actually the it of Marco on In of an reach to to perhaps

So accomplished to there, growth the growth? can do in be expect cost rate higher driver primarily get to well we that should Or see this think a through as and think the levers few years? next as you about occupancy outpace you

Lucinda Baier

no There the impacted and question pandemic is the our of that pandemic adjusted on the EBITDA. impact is leverage by our Absolutely.

Brian, the as that saw. with factor significant occupancy rate will it it a very do As strong think particularly I gain is we improve that explained has I our that to associated a leverage,

lot our year, making Second, leverage. of our improve the will built-in based an our rate. of creating focused are on we residents. proposition in we labor improve line expect have But bottom on sure that that our we attractive communities for sort to as and a costs value throughout the occupancy we do go also leverage always We're

that will up, our margin And goes rates will leverage. occupancy help overall as improve. our So

Marco Criscuolo

one in one trying quick contract your other We're the how the just if just labor. understand labor for COVID-related? than quarter? more then is uses associates contract to were directly quarantining ask there any their labor pressure I And of Other around the drivers contract of much could

Lucinda Baier

Absolutely.

have We associates the that are we of increasing number Brookdale. focused on in

we So the fourth with since something last that month every in started November. for that is quarter of progress year great

number during associates was But to factor. associated the have. Brookdale did enough who associates absolutely particular. in adequate got Omicron extra got costs on we we really do making think labor So with February a they've looking I have Quarantining increase that we're January to what that that. and the is and We associates focused they shifts take we're want, we've have that sure so can the flexibility of

I is think environment of the to. It's in publicized So are the X really those really And of something always widely that pay tight course, things focus nurses are that we we been very, very supply. lot market a that general attention on.

that's so where And more other area use we one labor contract places. than

Operator

comes Qiu question next at Our from Tao Stifel.

Tao Qiu

many far? outlook? top less to going range on part sounds make year. strong guidance, does than thinking to given that competitors expect up that second It so deal follow you XX% leasing the the I your quarter make And last you about to is you the And than promotional of to environment, be be than competitive of seeing just is step wanted the think years like you we through expected I previous in also and to another the last offering the year, stronger optimistic up demand line. strong are top Do operators more that concessions. -- you occupancy the XX% are which and season earlier general

Lucinda Baier

or in inflect occupancy are past. year positive our it until and see positive would our we turn and is has We April inflected earlier what positive. and would happy about this Historically, May, then than decline really turned occupancy that

price pandemic, market is there. we're we're certainly, we're was, So also height the seeing seeing is and improvement What the seeing less really less is competition what it it's the than in the of discounting.

think rebounding. that think there's reflects the inflation I senior the that the the housing recognition industry I fact in market. that also that reflects occupancy And in the is

that Difficulty] would rate And occupancy unprecedented grow increase. [Technical in above-normal we so able put it's and an be really to

top good pretty so about we're feeling growth. line And

Tao Qiu

next about the is My question partnerships.

year last try the You guys not you like with brought get onboard to JV. it in And may another sounds partner that company acquire the UnitedHealthcare, HCA OHD.

growing delivery can referrals, Advantage maybe a you care of potential with Appreciate quoting relationship Medicare improve participate quality to United broader health the revenue model. could the managed to may potentially this value-based care Medicare you savings, about through health achieve. care our strategy ultimately booked HCA penetration topic. care help experiences care, on partners thought or moving share you or and of leverage systems and and how grow you on in With and any insight Have others

Lucinda Baier

It's a question. really good

the of We know the it's health do our and can well-being exercise of real their has are terms isolation focused whether whether in really is on community What to of nutrition really we're it's And life in the health proper improve programs, to to things them dining to lives health live that it's trying preventing that residents. our encouraging do value they through we and span. social residents important allow That's the that BFED quality outcomes. and our best the to connection. leave, room, whether we

it, that LHC you with what And if on about with excited the with and Medicare about UnitedHealthcare think HCA, is with for so deeper taking providers more are plans, happening we Advantage risk. even an possibility we're the have because relationship partnership is

recognize care still innings And Advantage grows that's product our our much of as the so value. think health outcomes that things very is we that provides early it. with residents, happen. as become to in something will the integrated the continuum, we you good Medicare the when that more of We're do And health value closely and real

Operator

from at Our next question comes Barclays. Valiquette Steven

Steven Valiquette

about it's some well already the inflationary RevPOR there for in and resident morning. increases some are and the pricing driver But from even a environment. things above of think some been on cycle senior I historical annual that trending least averages few among have and multiyear at investors a a current this is talking little about the maybe growing unique yes, potential to So just bit, rate hard trend, least what mimic sort of for seeing do of growth we're on predict I in have sort your XXXX, 'XX? And wondering, be increases could is preliminary any you multiyear Just around than whether any there know a in maybe 'XX Or in that. preliminary maybe RevPOR that year? could you're at view 'XX less want to a but already conjecture your other 'XX is what times touched of bias I'm thoughts that get 'XX companies experiencing 'XX? know to a housing beyond

Lucinda Baier

To proposition happening environment, make the rising that our interest that make macro But we an providing affordable it's are takes that to it's sure costs, important everything sure have we at for food the cost, product. the consideration rising And time, attractive same like. resident. an value into in rates, labor that's whether rising

providing be making cost our focus with service we'll So balancing it's the of affordable. the and resident sure that

cost ability would increase Now Medicare, a services. some see their likely which I give in residents higher-than-normal higher their do to them see think a are in to of inflation that

Operator

question comes Ben from next Our RBC Markets. Capital Hendrix at

Benjamin Hendrix

a just on question quick your Steve, quarter comments. second follow-up

quarter? of adjusted for more decreases, think a kind you magnitude color second you of second labor bit was of vein You the by partially little Can OpEx kind those in I sizable increases. kind increase impacts in quarter. mentioned in about the of how sequential around the add wondering the the could merit that of offset if contract EBITDA

Steven Swain

Ben. Sure,

ways and labor first quarter. the of few look to as a second of quarter you impact between triangulate kind So

reduce total labor needs with we decrease with labor growing associated additional even said, we first from the we've still expense contract the as As labor. quarter results will occupancy, expect

So cost labor we just the unit. of and at that's one kind improvement taking out point. in occupied expect labor it, growth triangulation rates, And looking occupancy per of

the year. third throughout is expect normalizes. of a expansion kind we over way kind and level, if expect the to labor rate that's take contract quarters from out margin labor, QX, NOI of drive decreases improvement of an at expense And And we labor high impact will. that next that the So few you the of as labor the the triangulate to cost as we

tier increase the sizable expense, coming again So EBITDA. as a up sequential to expect see and in we increase occupancy we

Benjamin Hendrix

dynamics more also just helpful. I have Can That's shift just some occupancy mix know Great. of about AL how talk that follow-up, much memory labor more mix that? kind care. you're I much shift? structural thinking more broadly. impact about and wanted strategic you driving kind that -- with of How you of towards and regard the how one or saw also need-based versus to kind of to just is

Lucinda Baier

Sure. differentiated. is and That's clearly its a core and living we Brookdale at memory we think product intentional, are care. largely it's where assisted

for out-sized the that of excited memory close living in we are growth norms. sort We are by excited seeing quite move-ins our our we're quarter, independent care certainly that. But our product, historical return to and was during

is I think that lot something a that we've we forward. move had of opportunity as

of. us to better leverage And will that can we move-ins continue improve, as give portfolio results. built-in of in financial the lot a have take advantage our We that

Operator

on Bank our Joanna now Gajuk We at will move to America. of question from final

Joanna Gajuk

up So quick on last just actually, this I follow can first, comment.

demand to nurses. comes for services, shift specifically these this right, that, labor, memory higher So you're talking about acuity the a specifically. obviously, with skilled And higher type

guess on you rely contract it how have because So labor that? shortages like sounds do handle I to how currently of currently of you to nurses continue. the across

you to the positioned for to memory nurses because come you that? interest So versus housing kind of settings other seeing these of some of to how the senior Are do from and more kind solve care going you're businesses color to how kind order forward? burnout and grow any of in -- attract you kind do So living of how assisted maybe whatnot?

Lucinda Baier

Absolutely.

living That relationship [Technical that with other is setting. And is residents unique is that the is will families. So unmatched call the paycheck. something something about I that's for Difficulty] the nursing you thing and any senior we second have say that care and

make attractive and recruiting got to the important And so to they then efforts, sure sure community. that benefits. to make schedule have there's it's within flexibility and appropriate have compensation necessary It's they've the support

well we less think we will our for also and labor, contract for as I residents. they Brookdale our staffing bode on of Brookdale that care associates to our so associates having rely because be improve And nurses will

Joanna Gajuk

the I And of staying hire. on topic guess

So you by good it was workforce hear traction it's there. X.X%, to good so increase your pretty

And just it's thoughts, curious guess the responses. And kind new some these high-level we're junking what younger best in people hires, in new whether like curious, adults and see with also mostly your any of high And I you resonates I'm mean, younger, interested to the probably younger hear your to more mentioned jobs -- workers. I obviously, flexibility. of are thoughts flexibility I'm So equity housing? hearing, of with assume coming this economy, -- I one that,

exactly coming to what in driving people working into pretty hires? offer So in And good this what's growth these housing? senior you younger can that

Lucinda Baier

top the engage, attract, priorities and develop At one retain best associates. our of strategic the to level,

times, Brookdale technology includes place communities you our the so to top the associates. our And that we've we put And about our helps that X month they that wage that not support short-term in when we obviously X just on hires with have associates pick in focused that April, in the we with that also then been their to And that as doing we've we at have the benefits to if part-time markets. our hires. increased the And recruiting number Brookdale. to associates These from have shifts every to existing surrounding communities increased but we're help That the are done we net work we've the our also things that single things recruiting about increased of great things want. at the said, that us new hires, incentives because both allows November markets yielding we net X top they things local to hires, think to have to increase And think targeted retention. efforts. you net certain the communities. improve retain retain recruiters we've done existing increases And may are the

Joanna Gajuk

other the areas Any obviously across was one, very last cost like inflation hearing we the comment This in on board. sorry. of inflation any cost terms

those call And you in cost do So magnitude to of the increases for terms out? anything kind year? the what there of of expect

Lucinda Baier

Yes.

I award. This living, people really, didn't that focused either or and by And that magazine believe within But that company and opportunities is that's Brookdale their progress a supporting better can't say server on caregiver training we opportunity. I a year to thing APEX one senior other development has end to in is The second question. for than the we've recognized Training allowing unmatched tech that from take got by providing Brookdale. within CNA in any were and for award. Training a we're firstly a med progression So that row a

inflation, I'm something over that's Steve. So important. that's turn to to going to regard With that really

Steven Swain

You bet. we've utilities. capital. next Joanna, labor are really expense which expensing hit after expense biggest costs, food and of already so The on. categories

And of we've far, rates. a just mitigate to those course, significant communities. of really due to so date, increase scale costs. inflation utilities, a able in haven't are been labor categories the that number pressure seen of increased, fraction Of our benefit has food while And a we to larger

geopolitical with as water consumption. costs take increases partially anticipate the future, lighting costs and such to we to do uncertainty. in the mitigate rising continue and these We'll rising investments sustainability through actions utility just However, energy

as CapEx, times we're to supply things leading for furniture also and far of appliances. increased chain risk, we some inflation like As lead kind seeing moderate risk are a and seeing

product given been our risks generally and existing have contracts. able we large manage to However, pricing these through substitution protection

those see kind And go as how we're pressure we inflationary that's EBITDA of forward. we So XXXX assumptions. our guidance, which reiterating again, contains

Lucinda Baier

mothers like chosen who've the want particularly Brookdale So Day. grandmothers that say Mother's to Brookdale to question all I'd that call is some mothers to thank Home. you we think what so of And I was to thank our our in of I and last associates, advance And have. much

a day. Thank have great you. So

Operator

everybody, conference for today's call. joining Thank you,

You disconnect. may now

Brookdale Senior Living (BKD) 6 May 222022 Q1 Earnings call transcript