NYSE$BKD

Brookdale Senior Living Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Brookdale announced results, highlighting same community revenue growth and the sale of interest in unconsolidated Entry Fee CCRC communities.

Brookdale's Q1 2020 results showed same community revenue growth of 2.0% year over year. The company completed the sale of its interest in 14 unconsolidated Entry Fee CCRC communities, receiving $100.0 million. The pandemic impacted operations in the second half of March, leading to restricted community access.

  • Same community revenue increased by 2.0% year-over-year and 2.4% sequentially.
  • Completed the sale of the company's interest in 14 unconsolidated Entry Fee CCRC communities, receiving $100.0 million from the termination of related management agreements.
  • Ended the quarter with $500.7 million in cash and cash equivalents and marketable securities, and refinanced the majority of the company's 2020 debt maturities.
  • Restricted community access to protect residents, which resulted in fewer move-ins during the second half of March, partially offset by fewer move-outs.

Headline financials

Total Revenue

$1.01B

Previous: $1.04B-2.7%
EPS (adj)

$0.09

Previous: -$0.23+139.1%
Capital Expenditures

-$69.4M

Previous: -$60.1M-15.5%
Free Cash Flow

$300M

Previous: -$103M+392.4%
Net Income

$370M

Previous: -$42.6M+967.5%
Operating Income

$14.9M

Previous: $16.7M-10.6%
Gross Profit

$303M

Previous: $239M+26.7%
Cash & Equivalents

$393M

Previous: $257M+53.1%
Total Assets

$7.5B

Previous: $7.63B-1.7%
Stock-Based Comp

$5.96M

Previous: $6.36M-6.3%

Revenue & EPS history

Brookdale · Revenue · Quarterly

$1.01B

Q1 2020-2.7%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Brookdale · $891M total across 2 segments · Q1 2020

  • Resident fees
    $783M
  • Management fees
    $109M

Forward guidance

Due to the uncertainties associated with the COVID-19 pandemic, the Company withdrew its previously provided full-year 2020 guidance.

Tailwinds

  • The Company continues to serve and care for seniors through the pandemic.
  • The Company’s preparation and response efforts center on infection prevention and control protocols.
  • The Company has redesigned its sales process to engage in virtual tours and video engagement.
  • The Company has enhanced and adapted its marketing programs to address the stay-at-home environment.
  • The Company has sought to strengthen its relationships with referral partners.

Headwinds

  • The pandemic and related infection prevention and control protocols within senior living communities have significantly disrupted demand for senior living communities and the sales process.
  • The Company believes potential residents and their families are more cautious regarding moving into senior living communities while the pandemic continues, and such caution may persist for some time.
  • The Company expects further deterioration in its resident fee revenue resulting from fewer move-ins and resident attrition inherent in its business, which may increase due to the impacts of COVID-19.
  • Facility operating expense for the three months ended March 31, 2020 includes $10.0 million of incremental direct costs to prepare for and respond to the pandemic.
  • The Company is not able to reasonably predict the total amount of costs it will incur related to the pandemic, and such costs are likely to be substantial.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.4%

Avg return

Earnings day

+1.0%

Avg return

5 days after

-2.3%

Avg return

30 days after

42%

27 / 64 earnings

Positive

+22.1%

Q2 2023

Best reaction

-23.4%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%-8.6%-13.0%
Q4 2025-9.7%-7.2%-17.0%
Q3 2025-1.5%+10.1%+16.3%
Q1 2025-2.4%+1.3%-1.0%
Q4 2024+2.6%+6.4%+13.6%
Q3 2024-8.9%-8.5%-11.3%
Q2 2024-5.2%-2.6%-6.3%
Q1 2024-4.1%-3.3%-9.3%
Q4 2023-10.9%-14.4%+5.3%
Q3 2023+6.5%+1.0%+25.4%
Q2 2023+22.1%+12.0%+5.9%
Q1 2023+0.3%-5.6%+1.8%
Q4 2022+8.8%+7.2%-23.5%
Q3 2022-0.2%+11.9%-31.2%
Q2 2022+8.9%+16.9%+3.5%
Q1 2022-3.9%-5.1%-11.4%
Q4 2021+15.3%+16.8%+23.9%
Q3 2021+14.2%+8.3%-12.4%
Q2 2021-2.8%-7.9%-3.5%
Q1 2021+10.9%+8.2%+2.9%
Q4 2020+17.8%+15.4%+23.3%
Q3 2020-14.3%+21.5%+38.3%
Q2 2020-3.0%-6.6%-8.6%
Q1 2020-5.9%+1.6%+30.5%
Q4 2019+21.1%+15.3%-70.6%
Q3 2019-3.5%-2.4%-3.7%
Q2 2019+2.8%+5.3%+4.5%
Q1 2019+9.8%+9.6%-3.1%
Q4 2018-13.3%-11.9%-14.8%
Q3 2018+4.2%-0.3%-5.5%
Q2 2018-4.0%-7.7%+12.5%
Q1 2018+6.7%+4.9%+21.5%
Q4 2017-23.4%-23.5%-23.3%
Q3 2017-15.7%-2.1%-2.3%
Q2 2017-1.7%-4.6%-12.0%
Q1 2017-0.1%+8.6%+3.7%
Q4 2016-1.4%-5.1%-19.0%
Q3 2016-17.3%-13.4%-21.9%
Q2 2016+4.3%-1.3%+3.3%
Q1 2016+0.0%
Q4 2015-21.0%
Q3 2015+3.0%
Q2 2015-7.5%
Q1 2015+3.0%
Q4 2014-0.7%
Q3 2014+1.3%
Q2 2014-1.2%
Q1 2014-1.0%
Q4 2013+6.8%
Q3 2013+6.2%
Q2 2013-0.3%
Q1 2013+9.3%
Q4 2012-3.1%
Q3 2012+2.1%
Q2 2012+2.3%
Q1 2012-3.1%
Q4 2011-1.8%
Q3 2011-6.7%
Q2 2011-6.1%
Q1 2011+3.8%
Q4 2010+1.3%
Q3 2010-5.7%
Q2 2010-2.2%
Q1 2010-8.7%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro