NYSE$BKD
Brookdale Senior Living Inc · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Brookdale's Q2 2020 results were announced, highlighting efforts to protect residents and associates during the COVID-19 pandemic, along with a focus on improving long-term cash flow through operational and transactional enhancements.
Brookdale Senior Living announced Q2 2020 results, reporting a net loss of $118.4 million. The company ended the quarter with $600 million in liquidity, including $562 million in cash and cash equivalents and marketable securities. They also completed baseline testing of residents and associates at all of the Company’s communities. The company estimates that the COVID-19 pandemic and the Company's response efforts resulted in $63.6 million of lost resident fee revenue.
- Ended the quarter with $600 million of liquidity, including $562 million of cash and cash equivalents and marketable securities.
- Entered into definitive agreements to restructure a portfolio of 120 communities leased from Ventas, Inc. to improve cash flow through permanent rent reductions and eliminate financial covenants.
- Completed baseline testing of residents and associates at all 700-plus of the Company’s communities, across 44 states.
- Move-ins and census grew within the quarter for both Senior Housing and Health Care Services.
Headline financials
Revenue & EPS history
Brookdale · Revenue · Quarterly
$866M
Revenue by segment
Brookdale · $738M total across 2 segments · Q2 2020
- Resident fees$732M—99.2%
- Management fees$6.08M—0.8%
Forward guidance
Given the unprecedented nature of COVID-19 and rapidly changing developments, the Company will continue to be agile and adjust its local community response to help protect its residents, associates, and patients.
Tailwinds
- Communities transitioning to welcoming visitors and move-ins are likely to increase marketing investments to drive future resident awareness and referrals. As of July 31, 2020, 85% of communities were accepting move-ins.
- Company expects gradual improvement in move-ins and occupancy as the severity and breadth of the pandemic dissipates in key markets within Texas, California, Florida, Colorado, and North Carolina.
- Company increased its supply of PPE, which is expected to last for multiple months.
- Company expects gradual improvement in census as the severity and breadth of the pandemic dissipates in key markets within Florida, Texas, and North Carolina.
- During July 2020, the Company applied for additional grants pursuant to the Emergency Fund’s Medicaid and CHIP allocation and expects to receive up to approximately $50 million of grants from this allocation.
Headwinds
- Communities impacted by COVID infections are likely to incur increased costs for the use of a higher volume of PPE and medical supplies and incur higher labor and other related expenses.
- Recoupment of accelerated/advanced payments are required and the Company expects approximately $45 million and $40 million will be due in the third quarter and fourth quarter of 2020, respectively, and accordingly will reduce Adjusted Free Cash Flow in the second half of 2020.
- The Company's Adjusted Free Cash Flow in the third quarter 2020 will include a $119.2 million one-time cash payment to Ventas pursuant to the multi-part transaction with Ventas.
- There can be no assurance that the Company will qualify for, or receive, grants in the amount we expect.
- Lower than prior year occupancy and revenue trends continued through July 2020, resulting in the Company’s consolidated occupancy decreasing from 77.8% as of June 30, 2020 to 76.6% as of July 31, 2020.
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 Q2 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
| Quarter | Report date | Reaction (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% | — | — |
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