BKD - Earnings call transcript Q4 2024 | Brookdale Senior Living Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Brookdale Senior Living Fourth Quarter and Full Year Earnings Call. Today's conference is being recorded. (Operator Instructions) At this time, I would like to turn the conference over to Jessica Hazel, Vice President, Investor Relations. ahead. go Please

Jessica Hazel

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

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

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

Cindy. to call Now I turn the will over

Lucinda Baier

our earnings Welcome call quarter our Thank and XXXX you, to of call. shareholders, and analysts other Good participants. Jessica. to morning fourth year-end all

fourth for XXXX our through We takeaways our priorities the will with close deliver these a free provided improve quarter our that commitment key by profitable the previously expectations. as results, to adjusted we growth, adjusted meaningful accomplishments to began guidance above occupancy materially EBITDA RevPAR RevPAR, year and and these, grow while steadfast at XXXX pleased as well details cash expectation focus strategic fourth our Dawn of ranges. on the adjusted our would quarter cover I an top EBITDA last progress and will flow, and are have reporting We the the year and X.X%. of results for these of aggregate. our and demonstrate dedication in the in in stage XXXX while residents all further Even remaining our adjusted basis beyond. the momentum and go. average ultimate to to XXX so, these we have improved Adjusted flow and uncompromising over weighted nearly grew occupancy priorities, Reflecting EBITDA half back associates. XX%, RevPAR health turning free set XXXX grew increased on growth positive financial and Together, points. continued well-being and XX%, our towards XXXX achieving cash potential

shared As improved annual level, move-outs, fell have second previously, expectations, results. third-party primarily X year. the partners, due in persistent Yet, to our move-ins lead average. remained above beginning controllable financial quarter, to we XXXX a flow and prior particularly were in paid were and our their move-ins impacted from our below occupancy largest expectations our pre-pandemic much XXXX disruption move-outs, below XXXX which their referral our the

in While parties the third move-ins generate impacted quarter. from our meaningfully we majority these the volume lower internally, of second beginning occupancy

and redeploy internal immediately spend channels. marketing As marketing advertising to to action such, took we

extraordinary in fourth increased a It our XXXX. same time, promising time, hyper-local We impact. which quarter dedication fourth we efforts, pre-pandemic were results, of reflect At were above delivered above proud with quarter also year, but our move-in and growth. offset quarter fourth incredibly our strengthened X% average, sources and strongest since our remain the the cautiously it regional and these our unwavering taken referral prior were largest help of volume has delivering Through am I to performance. I optimistic, saw our with efforts partners occupancy achieve the to rebound and paid the we've connections the move-ins referral paid profitable

XXXX in pleased associate XX associates. strategic improvement could our a compared time, In it financial is efforts we've we improvement build percentage one success of attract, on at supported XXXX. attained reflect and what to of While this the serving trailing we business accomplished. a part small develop significant the of each are priority. have results with our Brookdale more business that engage, This the they XX-month vital is I relationship X points turnover. progress, so in people retain our quarters, We best a of only not a key of than our year-over-year XXXX be last more people.

this only achieve I our place typically key reflected positions, their growth to the in and in and Additionally, are Health improvement Executive XXXX. also the associate Executive the achieved at every we quarter and also Director, the Wellness not in in years critical Director, as in retention metrics, community named includes in XXX where Directors of in as and XXXX work turnover, our that and prior so our retention Leading X least support improved being improved but field who meaningfully of is X This leadership higher these efforts results, at quarters. Workplace was believe Loved Most priority family for I which are Newsweek Director and Sales hard satisfaction. XXXX. by a on year am centers compared this Executive top lower operational role, Director, resident impactful the grateful

those through thing a only program residents our the the model Brookdale evidence-based of life continues was is Brookdale. technology-enabled outcomes coordinating to only enhance that innovative achieve. care care by care favorable additional the also XXXX, measured Award recognized that living expanded conditions, from It incredibly focuses delivery coordination. gaps, support with isn't positive third-party assisted and preventive communities, adults, and proud designed on results extremely I we an our which but chronic HealthPlus outcomes. In Best resident HealthPlus of analysis XX minimizing aging the in unfortunately which addressing of communities converted workplace common XXXX older differentiates the unique received of are am Best Our HealthPlus, we our particularly Argentum needs to an to population. winner, HealthPlus for quality as not

XX% customer recognized higher and vast them in most In they ratings reflected their In home. XXXX, we and feel being continued and improvement, of HealthPlus supporting secure we not positive across measured our XXXX. a residents again There communities. visits shared associates communities can success seniors fact, from that was living determined had of XX% our compared to Brookdale care always satisfaction again outcomes, with respect but with trust our received and the that also Brookdale operational in communities urgent resident its to metrics, in satisfaction level and independent on conditions be emergency courtesy and results safe the grateful living This survey achieved room residents hospitalizations the residents of only HealthPlus analysis making room fewer compared and is comparable that once satisfaction majority with HealthPlus home. at same U.S. once and XXXX I of engagement Brookdale community treat in families. that strong I'm for to am is incredibly ratings proud their the resident our share that fewer XX%

structure. that Brookdale we the believe and News resident ongoing our of efforts optimize through This standards strong trust sense Best the outcomes research, and unwavering World associate family award, we that stewardship. and the several as the the of inaugural recently, Prism is to unique I Also, social Living campaigns Award deep we feel strategic our services to for announced care and XXXX, Senior mentioned proactively us, in Brookdale our recognitions Even public I've our each listings. capital believe care recognized WTWH improved award support part fundraising. in Report of manage our and we in more provide to received transactions placed Healthcare and Alzheimer's and commitment pride awareness quality engagement. testament and advancing I advocacy, an of portfolio of a this a for support programs

cap with portfolio to lease of lease capital while Healthcare first including $XX expenditures, term transactions million assets high-quality the achieve and to purchase a exposure at our then combined communities strategic in leased acquire costs, The ownership their extended and Investors, of a at income these the are for in beneficially We a communities purchase rent-free. Omega which portfolio amendment agreements to operating long-term on a announced was creation we value flow, mid-X% better effectively. total securing more of landlord-funded X these lease portfolios lease increase lower $XX million execution favorable capture to obligations flexibility By price. cash to from performance cost, rate opportunities, structures reduce escalating manage able transitioning greater XX

have on We the acquisition a involving mature with few the Ventas transactions the which next expected recently, close was the set successfully we lease to in amendment Most X a closed end to XXX-community weeks. remaining favorable announced first portfolio of at XXXX.

through we've As high-performing XX XXXX. part the agreement, lease the of communities for extended

capital $XX X a structure have has year-end, pool of am XX% the issue and of for faced restructuring. in the that flow to portfolio support Brookdale pleased we I real communities in We management to units are quarters over CapEx underperforming cash flow and to that transactions increase Brookdale will over meaningful and drive $XX of the that the prior liquidity, our by receive owned XXXX exiting lost single shareholders. value These meaningful decade. the creation million, XX portfolio estate landlord-funded cash we last our consolidated improvements of expected proportion million largest solved will lease be very

the Turning of to we addressed maturities. than successfully our billion future activity, capital structure XX have $X over more months, past

This and billion is As part just all NIC. to extension reported maturities XXXX significant reduced loan options by as eliminated of we meaningful given maturities in $XX industry $XX million. XXXX maturities the our debt this particularly accomplishment XXXX housing without senior achievement,

Mae, maturities, strong multiple in Our we before loans remain with lending begun thanks well and maturity confident addressing we partners, teams Mac, to the address ability and already these relationships cultivated to our have have XXXX successfully Fannie dates. Freddie their

our the for unprecedented Recession. the strong an annually less at In foreseeable supply Looking potential More construction million timelines with and as Meanwhile, future ages particularly Living. Senior well supply-demand industry gap, elevated and near enter with is boomers seniors XXXX remain seen will rate. future. as of optimism to construction for senior older is loneliness to U.S. at epidemic quality am activities labor and High for surging not construction conditions than the X% programs the quarter, as the residents. growth living rates, for will and outcomes daily and the within about through costs, starts Challenges, constrained but a are growth future market last alone including record this fourth services, having with seniors than growing I support now suggest the multiple turning demand Great XX chronic interest HealthPlus XXXX like Inventory support Brookdale for of of and life living living, improved creating favorable adults greater levels lows Brookdale baby communities minutes. with driving just faced beyond, many new EngagementPlus during one population senior the of new year. first need lengthening development XX a experiencing occupancy is years. to The filled living and

of expertise, meet needs-based uniquely apart make clinical concentration set strong us this and to others scale, from positioned industry demand. market Our and services our presence in us

a potential. long-term industry We tremendous foundation for with an in built strong have growth success

private by Medicaid revenue and Medicare of fluctuations the industry. coming from XX% to in with broader programs affected pay is sources, less Additionally, compared Brookdale

enable techniques, we third-party lead which every at potential. return growth the get believe available the dedicated tremendous addressing our which in to through during We overcome XXXX, cash flow support upon we focus priority the By steadfast provided our disruption multipronged proven preserving dedicated successful the expect in growth positive our rate. our will and were our XXXX flow priorities, in service first occupancy will us ourselves will us paid adjusted profitable growth. valuable in insights remaining sustainable with our we fully and with foundation, to generating beginning commitment on room a to best while strong steady free To build XXXX challenge in to strategic X future and already response,

was with provide achieving applicable expense service, profitable to our and by will As with previous compliance high-quality personalized in years, our XXXX Fourth January costs volume this positive when to we to affordability committed care lower revenue pricing priority. just against X care which increase but are be with second and the momentum the prior I the the regulations. we necessary in-place strategic with year in our deliver balance strategic and and above quarter expected remaining XXXX, our increase. growth, average and services, move-in management the positive outcomes plans and high-quality than meeting resident annual successfully entering for rate and our spoke increases continued priorities, of combined third occupancy covering To pre-pandemic expect while providing increase, needs, services supported to provided appropriate key appropriately

to develop, a the programs continue mission-dedicated high-quality who workforce will we a retain that collaborate and able associates, Next, and to provide attract to best experience. attract, engagement prioritize resident to are effectively engage, foster

Brookdale extending to of our to leaders our our and and teams, will develop the on benefiting associates ultimately grow set hourly us efforts focus associates. enable Our us allow that strengthen remain further shareholders. and of and length with community employment on This residents programs

is priority satisfaction and in offerings. continual and personalized third our and resident family operational earn Our excellence service improvements care through to trust high-quality and

like and to more and training skills efforts which which and to programs of of our in leaders as well through XXXX, Our of HealthPlus, processes additional improve share on plan to centered calls. our on the expand programs creating communities operations EngagementPlus, as excited are details we new future consistency tools to I am Brookdale the through Brookdale

they associates. for confident will shareholders our associates Additionally, we I that residents value their experiential right and path through with we on differentiated be our a higher our are to bar providing can enhancements residents the achieve am and the commitment with and our to deliver for to where our further rewarded quality dining, by potential. growth and raise a experience our providing high-quality company with

efforts on positive of determination. With with our our that our I Brookdale's and and industry, business, a we forward providing operational center tremendous on made in have as our and with simplification purpose filled We capital growth. the will conditions profitable future. optimism the dedicated progress for excellence structure, macroeconomic am result, driving XXXX the tailwind a for move And

Dawn Kussow

favorable triple-digit consecutive ahead in for point as starting RevPOR prior their X.X% us which move-ins increase benefited quarter marked points levels. quarter more increase third and normal communities. driven XXth point XXXX despite was quarter, reduction move-ins or pre-pandemic you This increase and This being of thank X,XXX-unit year the for over This fourth here of our provided Good since Cindy. and XXXX. with morning, the which our of of through fourth expectations. a Compared group. to financial average than quarter with our growth more and we previously XX grew was basis the year-over-year last period. end prior provide you, begin was than move-outs Residency our in a revenue the in X.X%, our XXX-basis prior revenue as quarter, sequentially, capacity compared in have results, Thank X fourth Cindy increased any X.X% This fourth for a morning, years provides This you guidance selectively year only by beginning quarter. occupancy year-over-year we fourth I'll quarter not to is recent occupancy our the walk the approximately transactions, seasonality today. speak this year shared, then were RevPAR comparable for X.X% at the certain top of I'll the but Both of quarter. weighted commentary revenue. prior year quarter Consolidated the range. better RevPAR disposed the for occupancy And had a to grew increases.

increased reflected growth fourth lower at year-to-date acuity line quarter a lengths fourth RevPOR. Our our lower in RevPOR year, longer trend relatively and X.X% residents move-ins. with These occupancy was and benefits same-community continued occupancy in care have but the have basis move-in, X% quarter from over growth of rate of portfolio, generally growth prior increase driven long RevPAR points by a which stay, occupancy term. the Specific to XX over the meaningfully

quarter to quarter. basis labor as year fourth to improved the prior of same-community Moving fourth a revenue XX compared points percent expenses, expense

tenured to the spoke who Cindy these their benefit roles. results personalized fact, meeting in we which supporting growth, to favorable and care longer and resident labor delivered regulations. improved In in remaining favorable the residents' results of premium results were high-quality remain in naturally of in XXXX, occupancy labor, our proficient more while service, on with turnover applicable needs, providing every labor satisfaction, sustainable become quarter further reductions associates focused continuing and compliance to, Contributing in

facility percent basis a points other of revenue, XX As year-over-year. same-community increased expense fourth quarter operating

expense important XXXX, resets, to spend in changed line data from has this it's each than inflationary addition year normal again expense. pressures been prior of the in think the our to premium As note higher to impact which quarter capital of I character annual and of outsourcing the centers

For expense community $X increase characterization was from income change cash operating spend, community the have same the of be community but operating XXXX revenue million X.X% to other facility in same compared year-over-year. Without to a facility operating year, same flat increased Fourth will quarter XXXX. other of perspective. expense a a been percent as the full this neutral in would flow

we prior the incurred Fourth the to the was and improvement organizational to compared revenue, third expense Milton. and compensation, of related Now, a excluding costs level restructuring beyond quarter point quarter. XX no expense, year approximately Hurricanes of legal in natural quarter. in basis year noncash transaction, from and stock-based X.X% prior natural in fourth expense administrative disaster general fourth and results, quarter moving $X This community and same Helene $X.X the approximately quarter, disaster primarily million million

in income culminated results above to which financial to year prior previously $XX top Contributing year-over-year approximately to EBITDA once proud line lease quarter, was Compared end am provided our These fourth Lastly, improved free the adjusted million related in operating were cash Adjusted capital comparing adjusted to adjusted seasonal expectations. the range $XX in and which main negative primarily Working the driver say to this our when the of guidance timing, our the for payments cash we flow estate operating growth general delivered real payments, cash flow again. grew was quarter cash XX%. free $XX results quarter. meaningful with third lease fourth tax operating fourth sequentially quarter and is quarter. was approximately these positive I the million, increase, favorable was the administrative fourth of EBITDA expense, million, payments.

and XXXX expectations, net, in flow Importantly, expenditures reimbursements, landlord cash net free for which adjusted XXXX. the a indicator both of quarter achieved proceeds second insurance half is Fourth we capital landlord and key lease positive million. nondevelopment we $XX reimbursements XXXX, CapEx beneficial was amendments, terms million were $XX of lease million reimbursed in the successfully negotiated we Through in last our that several quarter. fourth of which $X received in of

been As leverage lease annualized of these which XX-month includes leverage XX, communities, $XXX impact the of December. with impact payments timing ended acquired have the total the We in lease portfolio of cash we trailing the of for December with associated year the liquidity million. you annualized was facility XX.Xx, X.Xx. would normalize When

as both cash and the in the have reflecting our For lease difference, the we debt several a leverage timing facility the next trailing will XX-month investor associated XXXX acquisitions. September materials, with payments our annualized previewed calculation quarters,

the we growth XX-month forward of communities annualized a adjusted and is on before, be shared expected previously beneficial not annualized material, leverage. to we've leverage continued from as our improve and EBITDA expect impact basis, to Importantly, leased acquisitions

completed expected amendment, and capital these recent the results acquisitions, lease long-term spoke are Cindy and benefits largest ongoing structure resolved benefits which term. meaningful to over our Ventas several transactions longer in to addition provide the our immediate to which term to other In Brookdale. we in capital both structure issue

XX, markets be pleased for lease than income and occupancy, XXXX. for communities margin transition existing to XX Regarding are will the operating the to December XX nonrenewal corresponding Of will new to our RevPOR, The RevPAR, time communities, terminate sold whose lease high-quality transition, no no in than we The communities exceed remaining the earlier of XX communities by cash are portfolio. X, September At remaining Ventas amendment, later XXXX. are expected the XX the of Brookdale renewed XX sale be have with to operators those determined. expected dates a to rent the receive we reduction.

Given XX community disposition the communities their the appropriate effective and remove deemed the effective forecasting purposes. X, information communities to same XXXX nonrenewal January of timing, the to of it uncertainty most the we our provide for from portfolio

our quarter reporting. the will group change You same in community first see

beginning this adjusted agency structure. incremental flow first to flow of a As also the our lower investments make CapEx years the Cindy amendment, to at benefit proactive achieve large part X million the XXXX in We agreed communities up the place and rates management debt interest-only landlord-funded of of those adjusted of disposing free securing in continued with the $XX several than the a our XXXX. million financial in available and at of months, year. X for time refinanced highlighted we Notably, believe closing. terms last will loans, negative per cash lease $XX flow free upside we over Ventas pool to cash group reimbursement from for benefit cash expect capital of

maturity of for XXXX And XXXX. extension XXXX, also we one a retaining the bank from executed strategic maturities option convertible of to X senior extended we notes, exchange XXXX Additionally, additional extending loans to portion a their substantial from of our each. X-year

As reduced we XXXX a to debt $XX without options and just extension eliminated efforts, maturities of result maturities XXXX these million. all our

each of our which these pleased for We strengthen are and position XXXX transactions, very beyond. with

it several relates of to a over prior address million. adjusted growth guidance these community the But expectations, I'll I release first, Ventas includes particularly ranges as speak to which will the to. range planned number XXXX of year Each the to of million dispositions. assumptions, of our in X.XX% XXXX of expectations, $XXX portfolio EBITDA in X.XX% $XXX and press Turning to our guided to XXXX RevPAR we yesterday's

may the of timing guidance Ventas have assumed Solely If October these date of X, guidance, XX this from XX,XXX X sold. in be December to of of supplement. results, financial consolidated as for future transitioned actual provide shown we for More will updates there units an be disposition XX, variability we our XXXX, the appropriate. varies we specifically, communities as Page dispositions purpose assumption, as XXXX or and or expected nonrenewal on the establishing community had

units a Our RevPAR that momentum These recent weighted priorities, we previously Specific on average solid strategic remain XXXX. progress which XXXX. occupancy, and reflect when move-in our the coupled strong guidance improvements volume dispositions supported third we in that with XXXX with believe step quarter range, January volume. assume with providing Consequently, volume, move-in through our that anticipated in accelerate on and fourth in-year average expectations have We units assumes growth the will guidance the communicated. line are in relatively XXXX occupancy improved entering pleased continued only down then from quarter. total will of been this the to approximately for XX,XXX acquisitions to capacity

higher historic X norms, while rate, resident in-place January lower rate year. we than the increase Regarding than prior in implemented a

spoke move-in a to this we As XXXX earlier, and year-over-year the lower from acuity the RevPOR growth XXXX moderate that growth expect of result trend in I level. to

the year partners. that flow lead fourth the the occupancy a compared quarterly growth than third-party from we quarter believe and lap referral be weighted the prior stronger respective Lastly, disruption in both the we paid will first quarter from XXXX to trend, RevPAR as quarters average

remained adjusted as in EBITDA increase business. result, growth. we said, have as range, high a of XXXX Moving fixed the we flow-through diligent ensuring Cindy component profitable And given cost our favorable our revenue expect guidance of our to occupancy

provide ERP we which largely a to capitalized, associates related Additionally, annual implementing incurring owned we thus license, was back-office minimal system, software increase benefits process in the expected and to of the Previously, our expense. new are is which efficiencies. on-premise long-term

introduction incremental ERP incorporated range. With XXXX facility system, have expense we million approximately new operating the the guidance of of into our $X

merit and to compensation we our attributable over administrative Additionally, annual expense the to a XXXX, increase and incentive generally general expect normalized increase expense. XXXX

be XXXX cash we the quarters regarding first each through lease facility approximately Lastly, million. of payments, to third $XX expect

then the to an Ventas in fourth X quarter. these Assuming disposition the XX October expect down communities, payments of sequentially we step

with deliver We believe and year-over-year would growth flow meaningfully cash XX% XX% to our EBITDA and portfolio positive continued sustainable XXXX. adjusted which we structure management, proactive Through adjusted in are EBITDA result capital free have growth. pleased XXXX to positioned we and and expectations, favorable in Brookdale adjusted

by are optimistic our Let favorable results our momentum to will to XXXX. and confident deliver now me for continued close back Cindy. saying growth the we disciplined over very forward I'll that call approach turn in

Lucinda Baier

capture, growth Thank continued substantial occupancy for underlying particularly you, opportunities There Dawn. are through us to profitable growth.

for Brookdale and As and we near the to please term to XXXX choose the call seniors we in look home, to and term. are careers, to ensuring open call to the creating of commitment our we shareholders most for the and our grow in value additional questions. work future, longer unwavering more who lives even further into to to the employees attractive over their Operator, place for enriching that remain the

Operator

from (Operator Qiu Instructions) We'll our take Macquirie. at Tao first question

Tao Qiu

then the be guidance? X.XX% occupancy guidance you also will are RevPAR What amendment lease in parse could growth if the to one what to the and maybe X.XX% RevPAR without the share annual with for out growth you XXXX. curious I'm could, on quarter OpEx of I regards benefit range from the the that for expected appreciate Ventas the the assumptions October and assumed And guidance if the X. rates transaction? impact

Dawn Kussow

the for Thank Dawn. this is you Tao, question.

proven has, growth, of we is which attrition we expect, already through. rates basis the annual for that that can an X.XX% be we Cindy pull mentioned, Ventas from better that the achieve, think we've expect I to going guide some had for kind what we to move-outs we're that move-ins X.XX% to as

baked season. season, year but that so potential flu is We relatively And prior the really good probably and of flu to infection season, the haven't and communities, we've the most our a disruption, X.XX% disruption then on job the doing into look kind X.XX% flu challenging. early range. with challenging prevention, our fully the XX a in been of lapped XXXX does Since the this we lead we're it already like

Tao Qiu

a Okay. about I as peers talking think value favorable think alluded what continued are And how like that of context, gap accelerate Cindy, is the to that and can are lifting I I'm think you widening RevPOR beyond one that the Brookdale XXXX? your about also shareholder further and well. they're supply/demand of I you curious, looks dynamics. occupancy the in growth XXXX, In And completed, XXXX, heavy expecting And create between growth. and OpEx talking now lot accelerating

Lucinda Baier

a let going good just really by That's backwards I Tao. forward. And go question, before start me

just our XXX What basis step look But special at Brookdale progress growth, different makes is reported, competitors at and month that saw and growth key of our differentiation continue guide to what the of to points unique. better we that we and of the types. you year-over-year free product what makes XX we most points, do against strategic of accomplished that last priorities. our adjusted getting our both within portfolio between on Brookdale of focus and to really we've is if seeing our at of going picture, tremendous are increasing we're next? flow. so towards reported basis January its and occupancy that release our occupancy to that Brookdale was growth so to already look mix say, we're Part I trying positive time. the made you had and we sharing our truly the of sort back cash and October, deliver of They've and we profitable kind the helped current Big acceleration earnings data far And occupancy did, growth. If we for what's if we

going year. for communities experience coordination. more is assisted living looking portfolio the skewed this HealthPlus to heavily on assisted focusing memory continue And years that That's care resident and a so are capture much expand care. share. for Brookdale we'll sort Our to to later X for us comprehensive because differentiator towards of XX the older, about additional big We're resident and us, is living families

and EngagementPlus, the Brookdale every faster. their we'll to that has implement that are We experience resident resident meaningful help a is with going we customize new of memorable our chef And a that and goal allow us going reflects a each experience. build opportunity last then quality experiential continue to And that's dining residents enhance going lifestyle to already our the to head year making so meaningful to friendships hired unique further dining interests.

part that very, accelerate favorable to going things the the to we're the us of environment. the just resident side growth to capitalize very are that's doing on allow on that supply/demand So

Operator

to next move Tanquilut We'll Jefferies. at Brian

Brian Tanquilut

first my about to we the the question today, of I addressing know as maybe territory, leases flow you stand and you, cash Congrats. coming point. the free you pandemic this think areas and for driving you're positive at where Cindy, were out for there focus

direction the the think right be you As now? how we that about strategic forward, or focus have investors should thinking that going about

Lucinda Baier

Yes.

that opened a way question lead-in, very the the think was I you good Brian.

pursued positive. reasons, flow adjusted for couldn't our get to sort of right? have right have from proud or driven business taken Our chose goal We occupancy pandemic the I And that pursue in looking primary paths, the would have X to free could We of was we the We back, path. cash growth. confident flow of flow that was progress. be for of X financial really could whether of cash that more flow, cash have That's I'm path our pursued could regardless and growth. a number critical to improved cash occupancy recovering

better higher residents. serving revenue it's fully per available currently units And income the RevPAR, these our of any is our unit per XXXX. If results XXXX that XX% impact aren't X% than reflect you And look unit, operating than at XXXX. available

positive at in you the expecting the we're XXXX, aggregate second and of of free cash flow, a adjusted we for delivered half on year the look build XXXX. full If meaningful this

that, unit. lead now aren't residents. that impact proud because of and have really And profitability the this that I'm the faced At Now, more the paid per recovered communities that as we source disruptions rooms company, disruptions growth for have a than we we've XXXX. opportunity have more our of in we given third-party much pre-pandemic currently particularly point, serving

this as that's living. assisted level, have services, As a we living those with higher of in average to and drive mix, it's there's product associated become a growing for to and higher we a demand higher we're because compared and move-in occupied, RevPAR confident units have independent our needs-based naturally going profitability age

I difference strong and a story that's think strategy. an incredibly the in

spoke of excited things really that this to other some to his I question, Tao's specific about. to Now year, response the initiatives in there's I'm few but a

have in the because been look and turnover we've our you investments remarks, that our retention I made. prepared at If incredible of improvements shared our as associates,

management that they as of articulate and points in and brand recent well residents better differentiation we we're with investing proprietary process. our Both leadership our can unique that both key tell we're which closely our going Given enhancing value. hyper-local certification leaders doing with points the creating the had Directors, exciting and a our on community's with so story leaders are we're continued and building but and so is we attract focused This scale like are success make a that onboarding that and Director way ensure quarter had success Executive of We're associates. in individual And each things, the that part community advertising. expertise, our to focus national onboarding, the important, leaning are Brookdale X unmatched to things our accountability. on that performance program, help now are this, many we on fourth community each also the Because to includes as the so differentiation. to Executive this effective new of associate marketing our in includes and working improve their we we and

we on recover target future. and we're and incredibly the we that industry us frontend our able are an growth given bright get the for to unprecedented that still opportunity demographic than pre-pandemic of more Now, occupancy gives exciting an to have profitability, that the growth meaningful

Brian Tanquilut

couple And I think maybe, of I together. -- as here appreciate then a questions about Cindy, that.

you does on basically related, so X out I to just would how changes explain are questions maybe Medicaid, data As there potentially upcoming And I landscape probably performance, those political we're some some curious I'd we're as there, occupancy how know then getting that's And questions number about you think combine I the I and one? mix your think together. thought that of how just the about that. view trailing seeing how that impact business, your of NIC

Lucinda Baier

Yes, they're really good questions, Brian.

Let me that's start different by bit just how an occupancy the and about giving is than calculate different how little our you than insight business of the we also industry. industry, our a

industry of XX% a on living a often the high X%. look XX% running don't really important, if part it's under the We whole, Medicaid a assisted occupancy run a but Brookdale, than to Medicaid at occupancy, to as rely naturally At If you lower much as provide data. very why services. residents a This structural usually is shows of portfolio, you reason you're have that's one is community, which NIC at community, big margin. lower that XXX% our our because occupancy

not cost we're keep of did Now focused I'll on rate did not some tell of keep with away focus to Medicaid really the growth. from walk chose reimbursement services, you profitability, that also and costs, we because our occupancy because on profitable absolutely business providing the pace

pretty grateful well, And so the Trump as this that when shared we're future treated. continue well spent a suite as we report future is very efforts. the you of kind seniors role that about to And overall election. educating But and I the to And we're really a to our we're the things we political our of critical prioritize the time with in of that's of worked helped has then plays the as they years, industry, the XXX% that is care Brookdale system. do even most over occupied. and the Trump that as NIC the under going outcome there's think to understand Brookdale to well COVID message continue to closely difference. housing landscape Others funding Association our of concerns, the a pretty several response light. data. the brought COVID-XX last and health And that in operators particular, are difference to count lot I HHS Trade thing received and last In into grateful to in big that important the the industry our occupied, policymakers moving have as administration, any for The is units that that. the seniors XX% Congress, regardless way a received. think President Industry other industry COVID lot person compare one conservative and only shared the we'll we in there's And way If the in calculate we other suite, us

at to build As on that. the we opportunity change the continue look really we in I think to administration, have

have afford pursue senior is and to we industry, at that in federal workforce grow living. the the impact we in on expand in credits less expecting that initiatives As very seniors that activity be regulatory operator to They provide that's the policy develop help need level, services. largest as federal and trying be something that -- same to programs we could seniors would funding which are And view tax the we at time, the And proactive access for we'll positive. to and policy to services our could shape senior living increase will an continue industry. that

Operator

Nephron Next, Josh we'll at go Raskin Research. to

Joshua Raskin

in talk more to do be rate? sort a of you consider how wanted the how of after think above-average about you state what growth like steady then maybe about that. realistic to I you EBITDA you've assumed state? many you're you your just a about Is and you do But that growth XQ. in that still over And I running in rate, the communities points that And maybe you think have XX past would years think long-term EBITDA XXX that basis XX.X%? talked do target? pre-pandemic occupancy maybe when And above steady to get below know

Lucinda Baier

we of growth forward. doing before I'm consecutive back of year consecutive our going XXXX And opportunity. even EBITDA will a of $XX Let guidance range, of midpoint the growth me plus million by be third our $XX was million. lot That's XXXX something deliver start a But year adjusted excess in of going if fourth the today.

pursuing we occupancy forward, going will the future we very and about do Now, disciplined that. been growth, think to have I when continue profitable about

average that the but hit years age is Now, where of quite assisted us portfolio where spot years, the higher looking sweet me higher sits. living, about positioned in of about Our demographics haven't living, what's X the is which exciting is the X X right our almost right? is to yet, assisted years in forward in portfolio not majority

gap. best improving at supply/demand forward, year I attractive As benefit focus in growing return how that an serve and is And capture we a really shareholders? and see I do our to on our look to to more every job residents resulting better

Joshua Raskin

getting growth? points back like that million again, not this and -- getting the It's is That's to $XX more -- disciplined timeframe? that XXX necessarily basis back occupancy. not profitable the not Is of right there's much to a XXX, that's goal the Okay. the and about maybe XX.X%,

Lucinda Baier

how sort as units profitability cents a I what's about dollar put really I units, hundred of increase I do think us. But are the business, grow excited of units put better sense so the above the at will in XX.X% for we If out huge on the get disciplined translate And day I where it's that we you more every am growth. so our per going give I that would already of of to profitable as dollar. going I'm to get provide And our to to on think the associates incremental more as earlier, get a our had occupancy What say opportunity. and I but we I mentioned those Because I a wouldn't about for residents shareholders? that an our about experience those value in we I into to there do single service, pre-pandemic pre-pandemic. we're every at at were margin. coming service, get how look differentiate Brookdale on is a profitably a X% above. we already we unit basis is kind

Joshua Raskin

of And there little a in then XXXX. put think could significant Is cash -- expectations color more I for just adjusted you range flow or that? meaningful a you free said

Dawn Kussow

flow, this the adjusted but range adjusted we there a expectation. cash is on isn't out free significant There free is that put Dawn. Josh, our flow cash

Lucinda Baier

be year back to flow the kind doesn't we're to just seasonality. at we going that, quarter deck, mean that the add to quarterly of there's the shown still full going to have a as growth. And That every be in going of of And the whole, when positive we're cash adjusted pacing. you to investor the look meaningful have But free year. in

Joshua Raskin

color right. you could a in All new one, I last one sneak EngagementPlus. initiative? If behind I that Brookdale Is any heard Is there something, mention that?

Lucinda Baier

It is. It's that a proprietary have. program we

of resident. launched it have something is the all personalize our experience in portfolio. it not that portfolio, We part of And our but better allows the of us to

in what so, And they values to unique interests they enjoy able have is We residents our that's And EngagementPlus a and purpose things and about. what that able solve they loneliness. so we're want what that match meaningful to we're we do is to are really is all form about Brookdale friends, to residents time have. to do with who and have that share can trying life their relationships for

Operator

at comes next Hendrix RBC. from Our question Ben

Benjamin Hendrix

wanted you about tailwinds just programs a much that and given ask and to lower saw internal to something mentioned volume. wanted talked of XXXX weighted more the of how just volume. was HealthPlus, mix acuity I to an higher idea sources demographic of paid lower XQ phasing acuity in attractive hyper-local referral see activities in some towards earlier, that which get of you change acuity AL related the the course over you be may like I the this about to move-in you question that how

Lucinda Baier

think in question. good a referral sources. it's related I to It's change the the don't

residents. about strategy, is stay of HealthPlus want that life live residents length Brookdale healthier who If seeing we're for that really the to think to a you of And increases our designed longer. attract our

a bringing our that stay. about in is a think resident, should some talked mean to it example, towards lower you have better value that length into we've and The longer need of lower provides care there skewed is but need If initially, of a trade-off about communities. who that so lower acuity as memory unbundling care residents an the means lower

average of exciting about to compared One X age the come has is, our pre-pandemic, that's things down really months.

move think mean as they the residents with in be think would that future. you go having about will us, positive that should we If which with into younger very we stay longer, us will

Benjamin Hendrix

portfolio average just kind does they track I more, you've low the above Ventas walked have could mix that in did Great. from, one if And the if you you your talked of retained? was volume? an that how away And I wondering that mix about versus of Medicaid sneak Medicaid. in leases

Lucinda Baier

of a of you skilled Ventas I'll communities that Medicaid versus really But about for portfolio a the the we're with is, nursing from. mix CCRC haven't And and terms in are Medicaid the talked has What we transitioning transitioning as overall portfolio. Medicare. higher away say walking Ventas total the know, assets we in both mix

Operator

Next, we'll to of Gajuk Bank Joanna America. at go

Joanna Gajuk

couple A follow-ups. of

On you're do the typical sort flu QX seasonal January do of more even occupancy? you you What XX, seasonality comments, and a QX down are that. in decline? assume seeing Do XX higher incidents of Or seeing QX? as you mentioned, sounds we in it you assume for bps assume February. And like also quarter-over-quarter

Lucinda Baier

about season, that Joanna, with question worst pretty Dawn in difficult peaks. a is and since into talking occupancy start let as this point. no the then flu XXXX, U.S. the There's flu probably can me whole, by the X the jump a

participate of of the vaccination very Brookdale in that proactive high and it within what residents we clinics our residents to Now, that proud is as vaccinations is of I'm our really communities. have our relates a percentage normally

able at respiratory infection positive that. during that flu any a do season, think and is place, we season, we've have To we particularly date, which virus also closures this put really to I prevention We in had protocols been thing. all haven't

question. Now to to specific Dawn the over just answer I'll turn it occupancy

Dawn Kussow

Thank you, Cindy. Yes.

points As quarter, growth, the We in at that the January you what that reported basis there very that over We're year-over-year. the points reported strong it much were fact kind October well seeing we we we've as kind years. move-ins to that look year-over-year. XXX than was the we last saw trend that seen fourth XX last occupancy. are the of talked we're years. best the is they That January that January the occupancy And X as in relates occupancy, seeing to better our the about December our basis to X basis if XX decline move-ins is accelerated comparing points sequentially of occupancy is

Joanna Gajuk

hurricane lease rent guess 'XX, in I about but your also the But going already incurred about you treatment the Can of because of were in think some storm I the of There's in there's talking guess about to took EBITDA? QX. just And would the and also you year-over-year right? to implies costs in leases year us and right? it XX million exited. year-over-year, 'XX, full growth another I I of the 'XX change I in accounting guess, walk be sort similar QX in $XX guidance, X I costs in operating XXXX, you What's guidance QX EBITDA year-over-year the pieces? the there's that are then 'XX, quarters. guess million there's bring the winter lower year-over-year right, for growth And how when there's guess QX, that in sort $XX these but guess us clarification, $XX growth, million, through like being of Ventas, you there's That communities to so driving costs $XX some million buying, this effect the from

Dawn Kussow

really the is about start. we're And Joanna, excited Yes. I'll this growth. Dawn.

kind me, is And year year. fourth $XX straight the as of of adjusted midpoint, moving think XX% XX% into growth of And range the straight one growth. million of year-over-year. guidance I Our to mentioned, Cindy the excuse our -- fifth EBITDA

just One generally But things line on we've in what Ventas And the the of the drawn we're the expectation is X. impact is the a we're is it, what on maybe as transition. would the is NOI how sand thinking offsetting. October impact I thinking properties about, and rent noise about the some clarify that generally, is,

back half RevPAR. there, lease a And in year, to X.XX% to our so, range, but think coming about you you of the benefit think we've expense the the if X.XX% through guided guidance about particular just from not piece as that

and of talked that but both about have expectations expect expense coming utilities, have the perspective, growth. fully from moderating still moderated, move-out And food remaining is they've that for we high. strong expecting We've We kind move-ins we're our adjusted and what costs, to then through seen management translating the management. EBITDA, But solid into labor are there. expense

Lucinda Baier

Florida a disasters. to impact. response freezes, industry-leading the off the And a on that ahead then and trained, damage if the year. think disasters. everything tough put no was to the including focused the question I weather. community we disasters, if residents minimize job for there's to the as would shut it minimize hit couldn't more cold our water the estimate our cold disaster we of we in humanly all most add natural for And of management hurricanes But disasters pipe know year in particular, protect does natural natural really be associates on just perspective a that related making protocols, there's to what an always they the incredible proud and communities are And emergency an And XXXX wildfires, are how during to we weather, incur natural from doing for of might our asset possible team very sure to our I that that natural importantly,

Joanna Gajuk

any we're last I you sort And 'XX, a if mean question leases there. of should with run I rate first I think G&A is costs the the company Ventas, G&A? for may talking leases But the And thinking increasing. 'XX, overhead guess on we're assume we the you exit but in beyond squeeze changes 'XX the about more assume how to should about about consider I communities? portfolio the cost when on be after the will we there XX smaller because framework that that adjusting

Lucinda Baier

support in the that were things we we're the know, have of adjust you appropriately always going business larger proud support as much Brookdale, I'm we'll able company, forward. is to the we we're thing to terms we thinking used be that of matching Joanna, to that so a one the always proactive same the really And and our to communities, what's of that right and do our about infrastructure. infrastructure have.

Operator

Q&A. today's for concludes you Thank call. This question And conference that was your our participation. final for today's

now may disconnect. You

Brookdale Senior Living (BKD) 19 Feb 252024 Q4 Earnings call transcript