BKD - Earnings call transcript Q2 2024 | Brookdale Senior Living Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Brookdale Second Quarter 2024 Earnings Call. [Operator Instructions] I would now like to hand this conference call over to our host, Jessica Hazel, Head of Investor. Please go ahead.

Jessica Hazel

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

Executive Chief Joining President Officer; our and today Chief President us are Executive and Cindy Dawn Officer. Financial Baier, our Vice and Kussow,

of the disclaim facts these as that XX-K All as to time Actual be and materially and of contained including future. meaning XX-Q. the the today's be we not the issued These and Form statements with laws. the actual expressly in certain release the Form deemed federal within detailed to time, our well date, as file may securities performance statements factors from any statements in results statements and are update may are to SEC today, factors differ on yesterday earnings quarterly forward-looking of from risk which in reports cause obligation report the on historical annual to forward-looking are results in we reports we made differ statements could the

to direct full statement. harbor of release I safe the the you

Also, call, present we please financial measures. that note during non-GAAP this will

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

I will Now turn the Cindy. call to over

Lucinda Baier

I XXXX in our call. our shareholders, other accomplishments priorities. call and results, earnings in of proud participants. to analysts Thank our and Jessica. community our to to second morning in financial you, quarter all Good to strategic our Welcome operations Brookdale's am speak

on with financials. and these for highlights key topics, few then beginning a of our provide will of I offer insights additional couple morning, areas a This each

just step our EBITDA quarter over we free and through have doubled year after adjusted adjusted increases quarter nearly second in further a and a consistent years of XX%, improved the quarter from of quarter expansion X operating the adjusted prior taking growth, occupancy RevPOR EBITDA XX% XXXX. this grew continued Second cash flow quarter meaningful margin

of the progress operating while quarter This needs, Brookdale's and of personalized remaining meeting compliance our marked with income towards XXth and in adjusted same-community full powerful. care satisfaction, resident high-quality been has resident from our supporting pandemic impact providing service, the applicable consecutive regulations. growth recovery year-over-year

incredibly are this to operations proud strive strengthening of our reflect of continue further believe of potential. towards these We I and we as execution strategic the the priorities. community our our successful full results

future progress tremendous support of showing areas in and ongoing our the are we Specifically, success that key communities.

more consecutive QX associates; retention fourth performance; financial is other consecutive results. This retention because In the improvement with leadership improved achieved naturally turnover prior the XX-month relationships improve, in and turnover impactful translates their very trailing as quarter satisfaction; compared our our hourly we ultimately, second associate stronger periods. and our proficient of believe operational we resident year increased quarter, improvement fifth into quarter become to which and residents our and roles, associates better of

promotes servant high-quality providing throughout focused organization, that take and personalized the services. who privilege a cultivating At people leadership are core, also a and believe people. of pride our our a our business associates we residents that serving attracts in best remain on serving And is culture we

associates, way residents families our are Another impacting that positively important through Brookdale program. our we HealthPlus and is their

of is is Brookdale evidence-based HealthPlus designed residents' help reminder, through a preventive care care that an life innovative coordination. quality As improve delivery to model

from With by year-end. start our plans to XX XXXX communities HealthPlus of to at the XXX grow

the the associates palpable. launch implementing processes new record medical excitement This introducing HealthPlus is will planned approximately and and month, among our We platform. successfully technology, have and diligently new the for training of associates been community HealthPlus XX residents communities

position our industry lives, resident programs so that introduce and to enhance are like HealthPlus our solidify enhance leader. an proud associate as impactful We satisfaction

As we've [ incredible ] of our pandemic. progress in the I just since shared, depths the made recovery

want continued moment better. time, long-term we do can approach take to growth. well know a our thoughtful as the to I to occupancy discuss At same I results our as recent

that exceeded our our quarter as occupancy the While we pleased prepandemic performance the same-community of in strong we quarter occupancy the our second experienced as quarter are first second performance, wasn't in year-over-year traditional year.

sources quarter, soft relatively experience. leads paid associated historical second with the some During move-ins to were our our from compared third-party referral

to partners incremental planned marketing this initiatives launching identified and we sales increasing taken including We with working the these we right spend. believe trend, took closely Once improve we actions. action, have critical our performance, that

the taken from we to the begun have see have and We incremental believe right investments. actions benefits and that response our

saw our to second pre-pandemic response our improvement for within initiatives. in results, continued the move-ins we and quarter the our exceed quarter Importantly, to

As strengthening a growth about optimistic potential. that delivering believe boomer incredibly earliest pre-pandemic result, from represents a demand are we our that levels baby We wave of move-ins the demographic. remain above future the

individuals average move-ins our the the entering are age of residents of XX, of age XX. new communities is our are below XX% who While

this, population Given demand our easy capture occupancy the resident age. new average for ages as unprecedented years into many we growth services for our of visualize to it's the opportunity as this

Clearly, we and higher the currently coming see demographic wave. demand benefits the understanding from

as We flow. cash the must grows, disciplined are so occupancy being that extraordinarily to fact our

the efforts but pandemic services established the the highlighted expected of delivering at targeted the we are and not our I Following return in are consistently months XX structure, the being rapid impact the only also for to are before census, providing over last an purposely have demand. our aimed surge appropriate cost multiyear

and the communities at stewards our cost moves so appropriate residents, we revenue return our into strong shareholders. solid prudently to opportunity we the compelling the expenses of for career managing by dedicated from on focused we our to associates good our value being level, receive and community pricing demonstrate our can proposition a structure we who are remain and our residents that Accordingly, to a and that for are our ensuring a appropriately resident that level with each actions company

growth results, our disciplined in to is evident dedication recovery. meaningful producing is this As

were higher full unit balance sustainable. is XX% incredible. between than annualize operating housing delivering our first level. that you XXXX That's XXXX and and to If half be are occupancy growth approach the per the is working It thoughtful profitability to would our we results, our senior income shows available year

places We of profoundly in up growth, deliver us a levels. operating continued increases, in as exceed fully believe our setting occupancy recover even powerful are our and sustainable peers opportunity this ourselves we to we income presentation. our ahead growth With as terms organic investor pre-pandemic outlined occupancy of occupancy meaningful

our value to optimism to and for That, EBITDA future significant future. in support leverage creation growth, and flow years associates shareholders, This residents for our gives adjusted for cash me will come. annualized many continue reductions turn, and tremendous

supply The positive for and And senior has living more growing potential gap ever demand. and a increases industry between this imbalance than we occupancy is experiencing seen. have

our will and leader to programs as within Additionally, Brookdale's strengths us unique differentiate fragmented continue company a highly industry. industry-leading

housing construction the side, fallen of starts growth supply since the seen the at levels have On stalled Great has lows to senior impact and Recession. not inventory industry near record

side. our unprecedented and In that elevated At the the constrained drive same communities second time, we years are demographic is to our predevelopment there demand construction and the time is that new time lines, quarter, a high period target for less construction rates, new lengthy come. we than X% given within cost growth will entering and supply labor expectation supply to on have of were supply, many interest constrained of XX-minute exposed a

seniors the The is expected first X the U.S. every unparalleled provide. XXXX place is to States than a child than at the with population, rate Aging More historically XX through substantial fastest adults with are becoming the the population boomers in be living. will Census reporting providing more older new million a estimated year. services we with need that aging XX% increasingly growth senior our more less. a in living in market in and enter alone the turning there United U.S. target Bureau next Along need growing of baby an aging century, for for year difficult

that shown reports aging less that living a needs, health of vulnerable. industry receive CDC XX% choose community when chronic Leading at adult have frail community and residential studies their the meet to care conditions. they have least Further, services X and residents senior are

capitalize positioned is on dynamics. to these macro Brookdale uniquely

housing largest and in operator our our well nation's are expertise established communities a highly senior scale sets within fragmented industry, where apart, the As markets. their

assisted Additionally, primarily our offerings, us of care industry, which living needs-based memory acuity and the higher towards skewed products. lower product from distinguish mix is

today's needs with This is innovative and Brookdale models programs clinical health so ability expertise, and serve resident our important difficulties the diverse engagement Brookdale's these strong HealthPlus. personalized faced rising to services and like given by care seniors

demand unique muted fundamentals in I long-term our Brookdale growth As differentiators. ahead, supply, I look inventory confident our and strong outlook, supported by am

XXXX. extended our beneficially Healthcare to I'm net share with until community Today, we Omega Investors lease that pleased XX triple

XXXX both life most near has landlord-funded CapEx flow be the benefit up and amended As pool liquidity of the our July the cash agreed our new term. to basis. meaningfully to lease, part rent-free pool available funding the this life on terms of to prior Omega of will of $XX The this million of lease over a will a make amended available of $XX directly, over the lease. lease, and million of the in

am and markets. deliver well what high-quality achieve In their will such which and further, years together for I lasting X our and portfolio future year, beneficial positioned residents mean to future our the profoundly positive for the a relationship achieve Omega current associates. and supply work and impact with meaningful mutually value summary, as to and current ability in assets, dynamics a I our proven for about to we our and optimistic on Brookdale's X largely grateful We can our are next demand for growth core to are willingness outcome think even of the

remaining the thoughtful to over our forward continuing being approach for the occupancy by are to that call commitment to Brookdale near our many growth, position to I'll in growth turn incredible in results believe over just I and not remains now to best Dawn. but years we deliver profitable that the to come. term, disciplined path

Dawn Kussow

here Thank you quarter and I'll continued were third you and our second I'll steady which pleased speak sustainable then you, expectations. Cindy. quarter, quarter included results, our for This with Good thank walk morning, our morning, being year-over-year to We and second gains. today. through

Beginning with revenue.

X.X% year compared or community resident grew in of since quarter unit the This over prior X.X% Second owned the beginning X,XXX result reduction despite quarter. as dispositions quarter capacity of a was a the prior and to revenue revenue the period. year year increase prior leased fee

Consolidated which RevPAR line provided previously range. guidance was in grew X.X%, our with

a occupancy Second attributable and point basis X.X% RevPAR in year was growth prior to over RevPOR increase XXX quarter. growth the weighted quarter average

moderately the in tenth pre-pandemic lower offerings. to increases. basis lower quarter, our consecutive consistent occupancy increases sequentially, acuity level normal to Compared service quarter first therefore, declined with larger addition grew quarter marked seasonality, second This and our year-over-year XX of in occupancy reflecting RevPOR triple-digit occupancy sequential points rate

consolidated regarding revenue. Lastly,

As which XXX X.X% community occupancy second year, RevPAR points within recognized grants to state driven a operating over of in growth our our second by prior increased year's $X.X and year prior a reminder, benefited we in RevPOR. quarter, other same revenue. million X.X% income, Specific quarter the last of portfolio, basis increase

volumes were second When prior into to to expectation higher year move-outs move significantly move-ins pleased boomer our move-ins cycle. move-out in Still, due levels lower, are largely meaningfully better we disruption compared which remained continues we to. the Cindy both the demand for pre-pandemic the were spoke referral sources quarter, further flow from baby than paid as and demand third-party our support that that to improved lead while

fixed impact associate premium revenue expenses. the a performance flow-through percent given be favorable versus reductions the the to second business, in as of of of Same-community improved revenue retention year improved continues labor prior of compared This quarter. of turnover. and and result cost basis XXX year to expense prior favorable points a positive leadership increases our to Moving nature labor the hourly

We are compliance. our progress to continued with of and continuing regulatory very areas in these residents' care pleased meet maintain our needs while each high-quality provide

delivered to by spoke percent our I same-community operating which ongoing again was last margin once elevated factors, of these adjusted call. than of prior data other and expense dedicated significant expenses, of estimated XX year, basis insurance to the driven expansion. as points outsource the centers, a appropriate growth by facility largely and operating on the our Second Despite quarter expense income management revenue remaining our we higher

basis year points prior the increased income This operating to Compared marked quarter operating of XXX margin operating income same-community year-over-year income adjusted and XX.X%. adjusted adjusted growth. consecutive XXth grew XX% quarter, to our

Moving beyond community level expenses.

year. general and stock-based quarter the expense, Second relatively was prior to administrative noncash flat compensation excluding expense,

basis XX improvement this point As fee of a represented percent revenue, resident a year-over-year.

end of cash our in financial quarter first EBITDA the $XX range. million, the top previously $XX Lastly, operating lease was payments second culminated at million, guidance adjusted which flat These were to results provided quarter. of

EBITDA or Compared to adjusted prior quarter, the million $XX year increased second XX%.

our We are EBITDA very pleased growth. year-over-year with adjusted

Our within growth adjusted X% so if that adjusted XXXX been is recovery to of improvements be full in we has annualize we on would community year first translating adjusted occupancy EBITDA half a This strong lower free our EBITDA meaningful base. were cash results, flow. into and our

adjusted Second cash over year $X free million. negative quarter improved the to flow XX% prior

As total of million. liquidity June XX, was $XXX

we to And third RevPAR to X.XX% in adjusted EBITDA million. $XX growth prior the $XX to to range yesterday's over quarter Turning quarter. of guided third press year. release, In of million the the X.XX%

leaders, to improvement we and marketing our sales We the quarter. expect provide anticipated continued quarter impact have sales expectation benefit to second confidence in initiatives the the This growing sequential meaningful from weighted demand. community average third the and of our targeted reflects occupancy a

RevPOR be with residents normal move during down We as the longer relatively in. lower move have course and us to who flat believe out acuity sequentially that slightly been residents as will acuity higher is year

adjusted RevPAR quarter growth as meaningful and year-over-year EBITDA revenue resident guidance EBITDA. fee third well sequential impacting as Our adjusted and positively support will revenue

Moving guidance. to our adjusted EBITDA

our While included a there number quarter, positively adjusted third EBITDA second compared impact considerations to expectations expense are in of range. quarter guidance our the revenue

our a quarter last second adjusted outlined headwind there present EBITDA to our seasonal the as presentation, the between differences are growth. investor page X sequential First, material that on of the quarter third and

These will include meaningful the milder labor expense, the which impact sequentially top and to communities revenue. expense for day, XXX with flow-through leads to an only from summer utilities guidance largely hotter course receive across higher consolidated a similar to period holiday, end extra are adjusted to our months, of at the results the we fully which of incremental extra in labor, incremental range. EBITDA day, compared additional expense, minor extra An which, offset given spring normal months even the RevPAR the benefit an revenue

Additionally, the marketing initiatives. but ways: the third while our two quarter material to sales we're of affects initiatives that the to. support a quarter for our the Cindy additional This consideration incremental not impact is year, in expense marketing for spoke First, adding

while to incremental the channels. advertising third-party customer sources And reflected acquisition costs second, in affects year fees timing we've having marketing associated our expense to recognition no from for cash of the shifted other with marketing referral and paid guidance of cost This we've range. shift the expenses which

incorporates current Lastly, our asset guidance related third quarter EBITDA estimate expenses hurricane. July's for our to

it of nondevelopment outlook, approximately we expenditures to in continue $XXX XXXX. anticipate as to net relates our capital million Finally,

of the lower year. million occurred CapEx With for meaningfully $XXX which second expect we of has CapEx quarter, second this net during spend, through usage cash half the the nondevelopment

operating income Cindy shared with long-term outlook occupancy you for and growth. our favorable

As stakeholders. for create and Brookdale she in shared, financials these expectations our significant will all value

occupancy our peak of RevPOR the of deliver range midpoint significant current income pre-pandemic on each segment's we return operating pre-pandemic operating to our achieve would we margin and growth. just level, As even

Slide investor presentation, senior housing XX adjusted flow it turns. growth annualized on billion annualized a debt operating reduced just me $X.X optimism assumptions. adjusted for income these And a I show provides specifically, This growth operating opportunity future. leverage simple by of EBITDA up powerful X tremendous current of given to More EBITDA. in level, our would represents this to Brookdale's we our income result would through largely from future in this with believe and

achieving now year-over-year the to turn confident closing, have we strong have to and call over in which another growth growth Cindy. I'll we quarter long-term the In outlined. opportunity, back are proud delivered are we of

Lucinda Baier

grateful I of towards from made better Brookdale for accomplishments work pandemic. am associates and our the hard passion day, proud I single and am who all the full our impact of the lives every recovery of

operating future income a With for growth. each intensely successful continuing and results I revenue And clear sustainable Brookdale. positive remain quarter, are on through and that, we runway building for significant future a a into yield long path to increases. focused see We while

call open questions. now the for will up we Operator,

Operator

question Research. Our comes Instructions] the of [Operator first line Josh Nephron of Raskin from

Joshua Raskin

I but future? dispositions how I'm and the in small opportunity potential about valuations small, follow in through thinking X sort then reduce if going forward I Is up there on of quarter, the debt wanted curious you could talk to know sales you're to sort an of the to dispositions?

Lucinda Baier

very that you we disposed market. small were It's so the Cindy. Thank communities the in depends And the X think communities. question. I the valuation quarter the on asset, for really There's size, of much

necessarily think Brookdale I happy are so I going the are entire When we of forward, portfolio. these don't with generally about portfolio the operating. we And that think assets are representative our

Having for to looking always said improve that, shareholder we ways are value.

if improve so opportunity we'll obviously And our to do the take portfolio, so. to itself opportunity the presents

Now there are that, are around leases constraints some Our right? master leases.

or is do we what means the And of that have what generally, our we potential that think assets, sort have. renew so upside to none about the lease. with you owned And of all opportunity

And as on operating performance than strong XX% you had in can same higher such community with adjusted see, being a income we we've XXXX. were basis

progress and primarily will adjusted So made we RevPAR. in we great expansion the think EBITDA, delever through of we've

Joshua Raskin

Okay.

the broader again, get about And So that Or and just just that back an to explicitly guess update higher charge that that think HealthPlus, you'd thinking Brookdale the have that, And can know Brookdale services residents, for is a a how then there lead I into. question, but other to don't want this rates? you to are to but to you rate? and and think your I assume do not opportunity I for thinking care there's increase retention? services willing call, you it review second maybe a HealthPlus, making morning. always listen. health about I outgoing even appreciate But you're

Lucinda Baier

question. a It's great

is to urgent So want XX% think ER a when fewer mom great at fewer the about senior and who I I HealthPlus, home. XX% have Brookdale hospitalizations how care a -- about think wouldn't living senior similar for than it their residents visits

we resident So I who a attract value think is appropriate. what attract we that finds

we're We which into So have our our the of longer translate move communities. length occupancy. will seeing into a in HealthPlus stay we communities, higher more of should think that residents HealthPlus people

is associates the seeing well. we're side, HealthPlus what our love On associates as that

associate base. retention so our we're of And seeing better

together So all work to HealthPlus better for things communities. should our of those profitability create

we we that care our rate translate an make because costs communities, HealthPlus care outcomes providing to are when residents that their get proposition into we the health revenue lower look better value the but health And our getting plans. want our attractive at Advantage we also at -- our plans from Medicare sure for of we're residents, for HealthPlus

health As residents would health care with more services care and health want physically practitioners we've in communities, to did number traditionally a want home care would I the excited that services about we to in like for think makes rounding convenient we hospice. own that whether communities it serve, because of they our provide health that those our we we're got the

of I on today think that that remains front such business capture opportunity to want to focusing be that's seen. in of great job us. our We're the a core the we doing

Joshua Raskin

revenue The what you? how just And -- the follow-up. I'm MA is sorry, plans, through? -- are The that paying plans coming actual how a from

Lucinda Baier

Medicare per quality contract where and have is every a is for per we in with. a get chart. fee, enrolled also our just for we -- that quality every Advantage paid a basic member And who's have -- then for a the on we metrics. in partnership get And we So month resident

pleased a been stream, charts in revenue with the good way. we've So very that off

Operator

Macquarie. comes next Tao The from of question Qiu

Tao Qiu

internal the provide additional visits? in about indicators third your third marketing with recognition some of conversion ramp expected around from quarter? the and And the terms shift third-party heard timing into the on elaborate spend? also lead you in could data marketing such talk And maybe you intra-quarter the quarter, Dawn, points marketing due as could changes the leading I Cindy, expense to of trends

Lucinda Baier

the so Thanks Sure. much for question.

July our occupancy And on see QX. compared As increase earnings for from a to average basis and point basis our a sequential comparison, improved in points can weighted release, XX June you between basis. XX to QX that

than has July second So think I do saw better gotten in quarter. we what that the

the we think are we're matching spend about key with When essentially, season. that doing selling trying our what I sure to we're marketing, make marketing with

by election, performance. to little be relative the would a going our expensive And second team. improved historical get fact, conversions advertising to have but in you the presidential it's bit quarter, with seeing we're As expect, the conversion to in sales more strong

Dawn Kussow

remarks, And had we spend the just spend. about said that shifting prepared we when I been my marketing think that in marketing Tao,

expect the is going is as And from happen so our is we how to somewhat sales quarter year-over-year expense impact marketing would third spend going to that quarter. higher additional shift be to that our is going incremental initiatives

said And the prepared the kind cash the into of remarks, my not in so shifting the quarter. But third just for expense in I change as year. a

Tao Qiu

helpful. That's you. Got

the with Healthcare The second Omega current lease of XXXX. Investors through question, runs end

decision maybe you lease talk go. Could And of you the magnitude of years update under from have single-digit adjustment makes spend during nothing in terms high to Any XXXX? And renewal. to renewal expecting behind end spoken the rationale in terms? early contingent is about I sense renewal? with has that or -- So rent your to Ventas the publicly those that regards portfolio lease rent November, think Ventas also a you the more if about what X

Lucinda Baier

CapEx the partnership Brookdale on available we of million you $XX the have that saying by the And for is rent-free over now closer and Omega. of Omega the Brookdale start It's lease, is very that to will opposed X,XXX the portfolio to waiting at located XX expiration grateful a communities. in units we it's with core assets . The basis. little assets me that renewing really initial if that be is to largely to markets. are our until in Omega a as benefit funding high-quality a are Let look

near performance the offer cash do is will attractive as is so liquidity a in our very will well improve our that for term as flow that us. what so And it

lease, And million the think cash at lease. benefit meaningfully our full to that's then that of term if look you whole the available $XX the our we the will over lease and that CapEx life both liquidity be flow of a the that, us of over will

assets, win-win. partnership, a good good renewal, true good So

to we the for Ventas we clear are portfolio, positive leases been only have Moving that renew will Brookdale. that

look So we positive they cash flow positive positive after to is at generating that And something so are as us that important cash very that's CapEx? flow.

And if you in look in book, the that at aggregate Page million X at of quarter, the cash lease entire lost can supplement, our see first you flow. our you the can lease look and portfolio of $XX

based when Ventas decision, we be it will on the shareholders. what decision is best for a Brookdale So make is that ultimately

Tao Qiu

it. Got

So transaction, be will to both if to you win-win the do a with similar it HI? were renew lease, parties what you

Lucinda Baier

Absolutely.

Operator

The line Joanna comes Gajuk the next of of question from of America. Bank

Joanna Gajuk

the Maybe first, marketing the discussion and just around this expenses a follow-up timing. on

QX QX? but shifted I shifted to confirm, like QX to or to was it was from from sounds it want QX it So

Lucinda Baier

last of And higher quarterly year. Dawn you So then at guidance, marketing thing I'll pacing in look than want let in the into in, then sort do the sort the we're marketing that of more of QX And are we are to important season. if we the I the marketing spend expect key in giving that's did to the specifics. expenses go first year. before normally selling this QX in Dawn year-over-year, And than expense given it's year QX to they because expenses jumps understand is a in say

Dawn Kussow

period again, about a had shifted say, And acquisition direct I to an And our into from a not think a incremental generally just customer recognized expense. But cost, cash the marketing a to year of which we've spend. clarify, let's third we expense over more of, quarter.

additional those And period, so in third expect that's is come seeing quarter, over the of cash, an third the of -- shift but that if that going it's XX-month to costs no to adding it's kind expense through is the a makes through we which why to that come quarter, amortizing we're additional sense. headwind that instead would

Joanna Gajuk

that Yes, sense. makes Yes.

period kind expensing And everything additional quarter. long the to also, that cost of a I in quantify the you quarter? sense. and That in some willing assume are -- the guess, over amortizing versus July. So for time -- mentioned of then makes you And hurricane you impact in headwind

you're is or that an there for So these items? amount in guidance assuming a range X

Dawn Kussow

Yes.

not have exactly I are. publicly amounts think said what dollar we

We way as in the year. think how Cindy best last expense is marketing third be a expense. Typically, the just would expense that the than higher expense little And think think we third our be we about marketing expect to I that year-over-year what saw see would said, expect quarter bit a I would we the that's to about quarter. marketing . higher

that hurricanes, how is, the hurricane, as think On think about we're we would generally, I season. about of course, in hurricane the

have additional we labor. are -- We

generator We costs. have additional

impacted. on might property our loss get costs insurance Our

our certainly you and full most less as step of full the if and health residents probably say you associates. is just a and looking year, well-being are think me quarter, And material about consideration. at year. always a is one let our the it back generally, the But priority But important of to

Hurricane August. in July far, so in had quarter, Hurricane we've Debby Beryl hurricanes, the then third in two And and

dangerous happens bring what make when to a do to So to the sure have staff it's make hurricane to to because we we want and when traveling they're residents. associates place so, that appropriate we our sure we got want support that is into not shelter we've communities in

we've took make Houston, want is it sure than just a traditionally longer we've whatever generators to reason, got to and you for rent if that power incremental them if, lost, then we And little generators restore power to sometimes we power remember, our seen. And communities.

there, incremental occur. does some Hurricane we're didn't we either storm So have we damage Beryl there's just or do when that costs but recognize a that there's Debbie, any some very Hurricane excess but catastrophic costs in grateful

Joanna Gajuk

makes have that Yes, incremental Hurricane this, to year, maybe like have they sounds cost. it sense. every I didn't quarter season, No, with understand third do but last it year,

impacted that [indiscernible] guess, you I more. communities. already X know why you are your that's obviously, So And there

Okay.

Lucinda Baier

[indiscernible] Giving quarterly guidance.

differences think that I make QX and sort of you the trying year-over-year. to QX understand sure and we're between

that probably short if we quarter. talking how guidance, a we're seeing giving about relatively So is we highlight sure but as We annual thinking months we're were clear given much, X just not period. about the might on to make you're want

Joanna Gajuk

I If But improving, given point discussion, QX historical. And is like then I because lot occupancy Right. below growth coming sounds where on than a occupancy guess XXXX? about ], it after sequentially industry the are still better in. of may, think stabilizing was to new but occupancies your we about should coming new this low is supply at that's supply above in actually XXXX [ the levels

when I but guess, But it new was to how be was occupancy that, at take think to compressed. XXXX, it it target, that of XX%. would guess supply being not I least I because if long, before higher, to about get supposed I levels So guess this higher even because

Lucinda Baier

first heath that our make associates. the and that The residents well-being I'll point always primary our focus is is of and

adjusted financial have adjusted So our if about think cash on focused EBITDA flow. performance, and we free been rebuilding our you our

sustainable And cash it builds occupancy that it's less more business. and say, flow for so for builds about the a occupancy us about because occupancy

outlined we'll XXXX I think we've historical to And investor will XX our so high the I deck. the And levels. think even get Page that get we do levels that to personally, on of

services I we on Now it take will to get we're I but residents high-quality is there, say very providing long how the can predict serve. to what that can't focused exactly that

to we've that. a have Doing of our and have sustainable financial a who that is have that strong opportunity are for that us so and recovery path residents passion a front that who much in engaged we serving demonstrated achieve we and built with translating into associates

Joanna Gajuk

I on occupancy... may if And [indiscernible] the

Dawn Kussow

much is. a And half And Cindy's annualize adjusted the Slide think, is I investor said would I Joanna, if she comments remarks, of recovery X% and of our occupancy as on thing as EBITDA in within XXXX. show EBITDA, to, presentation, we X that's lower pointed you And we're prepared our add really level. our that that the the first in to XX adjusted XX where

the also growth to we've leverage had us. and I to point in growth have just of Slide particularly to the that added trailing well. and adjusted [indiscernible] XX what those that XX EBITDA then impact our as really our So doing around EBITDA XX is presentation and new XX, would showing a leverage. months to adjusted investor we've that slides that really opportunity that that is showing front we And the

Joanna Gajuk

a was But slide just this No, on different Yes. X very occupancy also sorry, helpful another about occupancy the that breakdown by slide. because communities talks a -- levels. follow-up

it, less still, communities if I XX% little of that XX% call guess, are occupancy. I So there's below guess, than a bit

same? are always So the these

and improve guess, this, kind like really XX%, it's but of it of this portfolio same below out XX%. can seems total below of of I around that get stays bucket And percent like the just

if know how I So bucket. something or structural there's plan that don't you address to

Lucinda Baier

focused resident how of or will a sustainable what is move-outs, change They single it do cash are time. do are small being our same achieve and the I over band because resident we know that couple But and in drive has percentage. always occupancy improvement a our we you focused a can affect community our pandemic flow. impact not recovery the we It's a do have or adjusted say EBITDA And communities. lower a I in deaths on how that free death if of we disproportionate adjusted on

community at XX-bed you've if impact because financial doesn't And that operating percentage the a community, the sure high making results of just always is got have a occupancy big company. on isn't occupancy lower that a the every

the focused we returns teams stay the better that for financial can our what are translate our on improved so seeing can drive and satisfaction, that of is take are associates to associate actions improve into benefit our How satisfaction. shareholders. with longer us our So what then resident we

Operator

from the [Operator next comes Our Instructions] of RBC of line question Ben Markets. Hendricks Capital

Benjamin Hendrix

Great.

a the a the differentiated little better Just on [indiscernible] pacing to you your July up appreciate about all question last saw also of positioning. demographics quick occupancy seasonal step then year, in trend. June the We commentary and

guess, occupancy broader you of advantages [indiscernible] there the we in it's Just favorability there basis intermediate improvement. terms to, expect focused versus term HealthPlus, quality over that metrics, -- you're the be wondering of an with point industry x on? in reasonable in Is the should retention, a target trends If marketing. have kind target given I trend or if if

Dawn Kussow

What Ben. in And similar expect We the to occupancy. is question, uptick have to to said would we year. second in have for quarter seasonal Thank I would think last I we that you that say would our to that expect third remarks, prepared my sequential meaningful improvement.

about is kind better given of occupancy I thinking so at. our would than be pre-pandemic as where And it

Lucinda Baier

Dawn X our pay XX% said, pay Brookdale at industry look payments. And And largely a a comment X operator. just resident. from to a And is Medicaid I private add overall, Ben. is come revenues living that residents residents would you assisted what is the that of if then in private

is higher to reason And slightly occupancy different than communities just at the tend is structural so other run industry. which our bit that a occupancy, Medicaid

Operator

this Call. today. Ladies your concludes Have for thank great of I'd all the and you Quarter gentlemen, a Brookdale rest like joining XXXX to Earnings Second day.

may You now lines. your disconnect

Brookdale Senior Living (BKD) 9 Aug 242024 Q2 Earnings call transcript