NYSE$BKD

Brookdale Senior Living Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Brookdale's financial performance was reported for Q2 2021, showing improvements in occupancy and revenue per occupied unit, offset by decreased revenue and adjusted EBITDA.

Brookdale Senior Living announced its Q2 2021 results, which included sequential growth in weighted average occupancy and a year-over-year increase in revenue per occupied unit. The company's liquidity position was strengthened by the sale of its Health Care Services segment. However, the company experienced a decrease in resident fee revenue and adjusted EBITDA compared to the previous year.

  • Weighted average occupancy grew 90 basis points sequentially.
  • Monthly weighted average occupancy has increased for five consecutive months beginning in March.
  • Revenue per occupied unit (RevPOR) increased 4.2% year-over-year.
  • Liquidity position strengthened by over $300 million due to the Health Care Services segment sale.

Headline financials

Total Revenue

$723M

Previous: $866M-16.5%
EPS (adj)

-$0.45

Previous: -$0.65+30.8%
Capital Expenditures

-$79.5M

Previous: -$113M+29.5%
Free Cash Flow

-$163M

Previous: -$231M+29.5%
Net Income

-$83.6M

Previous: -$118M+29.4%
Operating Income

-$52.5M

Previous: -$60M+12.5%
Gross Profit

$129M

Previous: $158M-18.3%
Cash & Equivalents

$281M

Previous: $452M-38.0%
Total Assets

$6.6B

Previous: $7.42B-11.1%
Stock-Based Comp

$4.53M

Previous: $6.12M-26.0%

Revenue & EPS history

Brookdale · Revenue · Quarterly

$723M

Q2 2021-16.5%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Brookdale · $679M total across 2 segments · Q2 2021

  • Resident fees
    $674M-7.9%
  • Management fees
    $5M-17.7%

Forward guidance

Brookdale anticipates sequential occupancy growth to accelerate in Q3 2021. Pandemic labor pressure and seasonally higher labor costs are expected to continue. Non-development capital expenditures are projected to be approximately $140 million for the full year 2021. The company also expects to pay deferred payroll taxes and recoup Medicare advanced payments.

Tailwinds

  • Sequential occupancy growth expected to accelerate in the third quarter.
  • Company expects to continue to publish monthly occupancy until it returns to providing financial guidance.
  • Focus on rebuilding occupancy lost due to the pandemic.
  • All communities were open for visitors, new resident move-ins, and prospective residents as of July 31, 2021.
  • Company achieved five consecutive months of weighted average consolidated senior housing occupancy growth on a sequential basis.

Headwinds

  • Similar pandemic labor pressure is expected to continue.
  • Seasonally higher labor costs are anticipated in the third quarter.
  • Expects to pay approximately $32 million of deferred payments in both December 2021 and 2022 related to payroll tax deferral program.
  • Expects recoupment of approximately $5 million of advanced payments in the second half of 2021 related to Medicare Advanced Payments.
  • COVID-19 pandemic continues to impact the company's operations and financial results.

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 2021

Historical avgQ2 2021

-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%

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