Brookdale Senior Living (BKD) Q4 2023 earnings summary

Executive summary

• FY 2023 same-community occupancy rose 190 bps and RevPAR increased 11.4%; Adjusted Operating Income grew 43.4% excluding government grants and credits.

• FY Adjusted EBITDA reached $335.5M, up from $241.3M; Q4 Adjusted EBITDA was $85.3M versus $46.6M and exceeded expectations for a fourth consecutive quarter.

Financial highlights

• Q4 resident fee revenue was $716.6M, up 8.9% YoY; net loss was $91.2M versus $25.7M.

• FY resident fee revenue was $2,857.3M, up 10.5% YoY; net loss narrowed to $189.1M from $238.3M.

• FY Adjusted EBITDA included $9.1M of government grants and credits versus $80.5M in 2022.

• FY net cash from operating activities increased to $162.9M from $3.3M; Adjusted Free Cash Flow improved $154M, or 76.3%, to negative $47.6M.

• Q4 Adjusted Free Cash Flow was negative $21.5M.

Outlook and guidance

• Q1 2024 guidance: RevPAR growth of 6.25%–6.75% YoY and Adjusted EBITDA of $90M–$95M, with a $92.5M midpoint.

• Q1 Adjusted EBITDA guidance includes a $7.4M unfavorable YoY lease-classification impact, with no impact on Adjusted Free Cash Flow.

• Occupancy is expected to follow normal pre-pandemic sequential seasonality; RevPAR growth is expected from higher occupancy and RevPOR.

• FY 2024 non-development capital expenditures, net of anticipated lessor reimbursements, are expected to be $180M.