Attached files
| file | filename |
|---|---|
| EX-99.1 - PRESS RELEASE - Brookdale Senior Living Inc. | exhibit99_1.htm |
| 8-K - FORM 8-K - Brookdale Senior Living Inc. | form8-k.htm |
Exhibit 99.2
|
Brookdale Senior Living Inc.
|
||
|
Corporate Overview - Selected Financial Information
|
||
|
As of September 30, 2016
|
|
Corporate Overview
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Investor Relations |
|
Brookdale Senior Living Inc. ("Brookdale" or the "Company") is the leading operator of senior living communities throughout the United States. The Company is committed to providing senior living solutions primarily within properties that are designed, purpose-built and operated to provide the highest quality service, care and living accommodations for residents. As of September 30, 2016, the Company operates independent living, assisted living and dementia-care communities and continuing care retirement centers ("CCRCs"), with 1,077 communities in 47 states and the ability to serve approximately 105,000 residents. Through its ancillary services program, the Company also offers a range of outpatient therapy, home health, personalized living and hospice services.
|
Ross Roadman
SVP, Investor Relations
Brookdale Senior Living Inc.
111 Westwood Place, Suite 400
Brentwood, TN 37027
Phone (615) 564-8104
rroadman@brookdale.com
|
|
Community Information
|
|
Ownership Type
|
Period End
Number of
Communities
|
Period End
Number of Units
|
Percentage of Q3
2016 Resident
and Management
Fees
|
Percentage of Q3
2016 Operating
Income
|
Percentage of
YTD 2016
Resident and
Management Fees
|
Percentage of
YTD 2016
Operating Income
|
|
|
Owned
|
375
|
33,949
|
38.1%
|
37.3%
|
38.2%
|
37.3%
|
|
|
Leased
|
546
|
44,762
|
49.3%
|
54.2%
|
48.9%
|
53.7%
|
|
|
Brookdale Ancillary Services
|
N/A
|
N/A
|
11.1%
|
4.1%
|
11.3%
|
4.4%
|
|
|
Managed
|
156
|
26,415
|
1.5%
|
4.4%
|
1.6%
|
4.6%
|
|
|
Total
|
1,077
|
105,126
|
100.0%
|
100.0%
|
100.0%
|
100.0%
|
|
|
Operating Type - By Segment
|
|||||||
|
Retirement Centers
|
95
|
17,152
|
16.1%
|
20.6%
|
15.9%
|
20.3%
|
|
|
Assisted Living
|
783
|
51,498
|
57.4%
|
61.6%
|
57.2%
|
61.4%
|
|
|
CCRCs - Rental
|
43
|
10,061
|
13.9%
|
9.3%
|
14.0%
|
9.3%
|
|
|
Brookdale Ancillary Services
|
N/A
|
N/A
|
11.1%
|
4.1%
|
11.3%
|
4.4%
|
|
|
Management Services
|
156
|
26,415
|
1.5%
|
4.4%
|
1.6%
|
4.6%
|
|
|
Total
|
1,077
|
105,126
|
100.0%
|
100.0%
|
100.0%
|
100.0%
|
|
Statement of Cash Flow Information
|
|
($ in 000s)
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||||||||
|
Q1
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
Year to Date
|
||||||||||||||||||||||||||||||
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Net cash provided by operating activities (as reported in the Company's consolidated financial statements)
|
$
|
10,057
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$
|
100,767
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$
|
91,361
|
$
|
90,181
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$
|
292,366
|
$
|
70,343
|
$
|
107,496
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$
|
99,442
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$
|
277,281
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||||||||||||||||||||
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Net cash provided by operating activities of unconsolidated ventures
|
4,904
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50,321
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57,202
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67,839
|
180,266
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54,593
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55,842
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47,095
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157,530
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|||||||||||||||||||||||||||||
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CFFO and Adjusted CFFO (See Note Regarding Non-GAAP Financial Measures)
|
||||||||||||||||||||||||||||||||||||||
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($ in 000s)
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||||||||
|
Q1
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
Year to Date
|
||||||||||||||||||||||||||||||
|
The Company's CFFO
|
$
|
73,890
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$
|
69,745
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$
|
50,769
|
$
|
62,887
|
$
|
257,291
|
$
|
70,800
|
$
|
90,125
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$
|
85,212
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$
|
246,137
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||||||||||||||||||||
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Add: Integration, transaction, transaction-related and strategic project costs (1)
|
27,300
|
29,027
|
42,499
|
24,853
|
123,679
|
20,928
|
17,324
|
8,775
|
|
47,027
|
||||||||||||||||||||||||||||
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Adjusted CFFO
|
$
|
101,190
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$
|
98,772
|
$
|
93,268
|
$
|
87,740
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$
|
380,970
|
$
|
91,728
|
$
|
107,449
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$
|
93,987
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$
|
293,164
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||||||||||||||||||||
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The Company's proportionate share of CFFO of unconsolidated ventures
|
$
|
14,213
|
$
|
11,177
|
$
|
13,093
|
$
|
18,896
|
$
|
57,379
|
$
|
15,354
|
$
|
15,939
|
$
|
13,837
|
$
|
45,130
|
||||||||||||||||||||
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(1) The calculation of the Company's CFFO includes integration, transaction, transaction-related and strategic project costs of $47.0 million and $98.8 million for the nine months ended September 30, 2016 and September 30, 2015, respectively. For the nine months ended September 30, 2016, integration costs include $15.2 million of transition costs associated with the Emeritus merger and organizational restructuring (such as severance and retention payments and recruiting expenses), $2.4 million of third party consulting expenses directly related to the integration of Emeritus (in areas such as technology and systems work), and $3.8 million of internal costs such as training, travel and labor, reflecting time spent by Company personnel on integration activities and projects. Transaction and transaction-related costs of $4.8 million for the nine months ended September 30, 2016 include third party costs directly related to acquisition and disposition activity, community financing and leasing activity and corporate capital structure assessment activities, and are primarily comprised of legal, finance, consulting, professional fees and other third party costs. Strategic project costs of $20.8 million for the nine months ended September 30, 2016 include costs associated with certain strategic projects related to refining the Company's strategy, building out enterprise-wide capabilities for the post-merger platform (including the EMR roll-out project) and reducing costs and achieving synergies by capitalizing on scale.
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Stock Information
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||||||||||||
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Common Stock Listing
|
FY 2015
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FY 2016
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||||||||||
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NYSE: BKD
|
Q1
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
Year to Date
|
|||
|
Weighted average shares used in computing basic and diluted net income (loss) per share (000's)
|
183,678
|
184,266
|
184,570
|
184,805
|
184,333
|
185,153
|
185,825
|
185,946
|
185,641
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|||
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Note Regarding Non-GAAP Financial Measures. This supplemental presentation contains financial measures utilized by management to evaluate our operating performance and liquidity that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). Each of these measures, Adjusted EBITDA, Cash From Facility Operations ("CFFO") and Adjusted CFFO, should not be considered in isolation from or as superior to or as a substitute for net income (loss), income (loss) from operations, net cash provided by (used in) operating activities, or other financial measures determined in accordance with GAAP. This supplemental presentation should be read in conjunction with the Company's earnings release dated November 1, 2016 and the consolidated financial statements and reconciliations included therein. The Company strongly urges you to review the information under "Reconciliation of Non-GAAP Financial Measures" in such earnings release for the Company's definitions of each of these non-GAAP financial measures, a detailed description of why the Company believes such measures are useful and the limitations of each measure, and a reconciliation of Adjusted EBITDA from the Company's net income (loss), a reconciliation of the Company's CFFO and Adjusted CFFO from the Company's net cash provided by (used in) operating activities, and a reconciliation of the Company's proportionate share of CFFO of unconsolidated ventures from such ventures' net cash provided by (used in) operating activities. The Company cautions investors that amounts presented in accordance with the Company's definitions of such financial measures may not be comparable to similar measures disclosed by other companies, because not all companies calculate these non-GAAP financial measures in the same manner.
As noted in the Company's earnings release dated November 1, 2016, the Company has changed its definition and calculation of CFFO from prior periods, which no longer will include the Company's proportionate share of CFFO of unconsolidated ventures. To conform to this new definition, prior period amounts of CFFO and Adjusted CFFO have been recast to reflect the Company's CFFO and Adjusted CFFO separate from, and exclusive of, the Company's proportionate share of CFFO of unconsolidated ventures.
In addition, the Company changed its definition and calculation of Adjusted EBITDA when it reported results for the second quarter of 2016. Prior period amounts of Adjusted EBITDA presented herein have been recast to conform to the new definition. See the Company's earnings release issued on August 8, 2016, for more information regarding the changes made to the definition and calculation of Adjusted EBITDA.
|
1
|
Brookdale Senior Living Inc.
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|||||||||
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Segment Financial Data
|
|||||||||
|
As of September 30, 2016
|
|
Financial Data and Operating Information
|
|||||||||
|
($ in 000s, except Senior Housing average monthly revenue per unit)
|
|||||||||
|
Retirement Centers
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||
|
Q1 (1)
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
|||||||||||||||||||||||||
|
Revenue
|
$
|
163,486
|
$
|
164,409
|
$
|
164,415
|
$
|
165,630
|
$
|
657,940
|
$
|
169,426
|
$
|
169,990
|
$
|
170,706
|
||||||||||||||||
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Segment Facility Operating Expenses(2)
|
92,962
|
92,365
|
94,081
|
93,275
|
372,683
|
94,977
|
95,236
|
97,594
|
||||||||||||||||||||||||
|
Segment Operating Income
|
$
|
70,524
|
$
|
72,044
|
$
|
70,334
|
$
|
72,355
|
$
|
285,257
|
$
|
74,449
|
$
|
74,754
|
$
|
73,112
|
||||||||||||||||
|
Segment Operating Margin
|
43.1
|
%
|
43.8
|
%
|
42.8
|
%
|
43.7
|
%
|
43.4
|
%
|
43.9
|
%
|
44.0
|
%
|
42.8
|
%
|
||||||||||||||||
|
Number of communities (period end)
|
99
|
98
|
98
|
95
|
95
|
95
|
95
|
95
|
||||||||||||||||||||||||
|
Total average units(3)
|
17,369
|
17,279
|
17,289
|
17,293
|
17,308
|
17,096
|
17,095
|
17,105
|
||||||||||||||||||||||||
|
Weighted average unit occupancy
|
88.8
|
%
|
88.4
|
%
|
88.7
|
%
|
89.1
|
%
|
88.8
|
%
|
88.9
|
%
|
88.9
|
%
|
89.3
|
%
|
||||||||||||||||
|
Senior Housing average monthly revenue per unit(4)
|
$
|
3,533
|
$
|
3,589
|
$
|
3,573
|
$
|
3,584
|
$
|
3,570
|
$
|
3,715
|
$
|
3,727
|
$
|
3,727
|
||||||||||||||||
|
Assisted Living
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||
|
Q1 (1)
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
|||||||||||||||||||||||||
|
Revenue
|
$
|
617,344
|
$
|
611,838
|
$
|
608,393
|
$
|
607,882
|
$
|
2,445,457
|
$
|
617,270
|
$
|
613,017
|
$
|
607,345
|
||||||||||||||||
|
Segment Facility Operating Expenses(2)
|
393,838
|
388,479
|
397,180
|
388,657
|
1,568,154
|
396,460
|
378,932
|
389,467
|
||||||||||||||||||||||||
|
Segment Operating Income
|
$
|
223,506
|
$
|
223,359
|
$
|
211,213
|
$
|
219,225
|
$
|
877,303
|
$
|
220,810
|
$
|
234,085
|
$
|
217,878
|
||||||||||||||||
|
Segment Operating Margin
|
36.2
|
%
|
36.5
|
%
|
34.7
|
%
|
36.1
|
%
|
35.9
|
%
|
35.8
|
%
|
38.2
|
%
|
35.9
|
%
|
||||||||||||||||
|
Number of communities (period end)
|
837
|
833
|
832
|
820
|
820
|
820
|
818
|
783
|
||||||||||||||||||||||||
|
Total average units(3)
|
55,073
|
54,700
|
54,592
|
54,492
|
54,714
|
53,510
|
53,521
|
52,991
|
||||||||||||||||||||||||
|
Weighted average unit occupancy
|
87.2
|
%
|
86.4
|
%
|
86.5
|
%
|
86.6
|
%
|
86.7
|
%
|
85.6
|
%
|
85.3
|
%
|
85.6
|
%
|
||||||||||||||||
|
Senior Housing average monthly revenue per unit(4)
|
$
|
4,283
|
$
|
4,316
|
$
|
4,292
|
$
|
4,296
|
$
|
4,297
|
$
|
4,493
|
$
|
4,478
|
$
|
4,461
|
||||||||||||||||
|
CCRCs - Rental
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||
|
Q1 (1)
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
|||||||||||||||||||||||||
|
Revenue
|
$
|
155,991
|
$
|
151,561
|
$
|
149,572
|
$
|
147,448
|
$
|
604,572
|
$
|
152,260
|
$
|
148,225
|
$
|
147,517
|
||||||||||||||||
|
Segment Facility Operating Expenses(2)
|
117,420
|
115,701
|
108,177
|
112,779
|
454,077
|
116,791
|
114,631
|
114,521
|
||||||||||||||||||||||||
|
Segment Operating Income
|
$
|
38,571
|
$
|
35,860
|
$
|
41,395
|
$
|
34,669
|
$
|
150,495
|
$
|
35,469
|
$
|
33,594
|
$
|
32,996
|
||||||||||||||||
|
Segment Operating Margin
|
24.7
|
%
|
23.7
|
%
|
27.7
|
%
|
23.5
|
%
|
24.9
|
%
|
23.3
|
%
|
22.7
|
%
|
22.4
|
%
|
||||||||||||||||
|
Number of communities (period end)
|
45
|
46
|
45
|
44
|
44
|
44
|
43
|
43
|
||||||||||||||||||||||||
|
Total average units(3)
|
10,480
|
10,543
|
10,515
|
10,405
|
10,486
|
10,335
|
10,084
|
9,963
|
||||||||||||||||||||||||
|
Weighted average unit occupancy
|
86.0
|
%
|
83.6
|
%
|
83.9
|
%
|
83.9
|
%
|
84.4
|
%
|
84.3
|
%
|
83.7
|
%
|
84.0
|
%
|
||||||||||||||||
|
Senior Housing average monthly revenue per unit(4)
|
$
|
5,744
|
$
|
5,697
|
$
|
5,626
|
$
|
5,601
|
$
|
5,668
|
$
|
5,790
|
$
|
5,812
|
$
|
5,833
|
||||||||||||||||
|
Total Senior Housing
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||
|
Q1 (1)
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
|||||||||||||||||||||||||
|
Revenue
|
$
|
936,821
|
$
|
927,808
|
$
|
922,380
|
$
|
920,960
|
$
|
3,707,969
|
$
|
938,956
|
$
|
931,232
|
$
|
925,568
|
||||||||||||||||
|
Facility Operating Expenses
|
604,220
|
596,545
|
599,438
|
594,711
|
2,394,914
|
608,228
|
588,799
|
601,582
|
||||||||||||||||||||||||
|
Operating Income
|
$
|
332,601
|
$
|
331,263
|
$
|
322,942
|
$
|
326,249
|
$
|
1,313,055
|
$
|
330,728
|
$
|
342,433
|
$
|
323,986
|
||||||||||||||||
|
Operating Margin
|
35.5
|
%
|
35.7
|
%
|
35.0
|
%
|
35.4
|
%
|
35.4
|
%
|
35.2
|
%
|
36.8
|
%
|
35.0
|
%
|
||||||||||||||||
|
G&A Allocation(5)
|
$
|
42,093
|
$
|
37,399
|
$
|
36,968
|
$
|
42,881
|
$
|
159,341
|
$
|
44,524
|
$
|
45,806
|
$
|
33,672
|
||||||||||||||||
|
Operating Income (Including G&A Allocation)
|
$
|
290,508
|
$
|
293,864
|
$
|
285,974
|
$
|
283,368
|
$
|
1,153,714
|
$
|
286,204
|
$
|
296,627
|
$
|
290,314
|
||||||||||||||||
|
Operating Margin (Including G&A Allocation)
|
31.0
|
%
|
31.7
|
%
|
31.0
|
%
|
30.8
|
%
|
31.1
|
%
|
30.5
|
%
|
31.9
|
%
|
31.4
|
%
|
||||||||||||||||
|
Number of communities (period end)
|
981
|
977
|
975
|
959
|
959
|
959
|
956
|
921
|
||||||||||||||||||||||||
|
Total average units(3)
|
82,922
|
82,522
|
82,396
|
82,190
|
82,508
|
80,941
|
80,700
|
80,059
|
||||||||||||||||||||||||
|
Weighted average unit occupancy
|
87.4
|
%
|
86.5
|
%
|
86.7
|
%
|
86.8
|
%
|
86.8
|
%
|
86.1
|
%
|
85.8
|
%
|
86.2
|
%
|
||||||||||||||||
|
Senior Housing average monthly revenue per unit(4)
|
$
|
4,305
|
$
|
4,331
|
$
|
4,303
|
$
|
4,302
|
$
|
4,310
|
$
|
4,485
|
$
|
4,476
|
$
|
4,465
|
2
|
Brookdale Senior Living Inc.
|
|||||||||
|
Segment Financial Data
|
|||||||||
|
As of September 30, 2016
|
|||||||||
|
Financial Data and Operating Information (continued)
|
|||||||||
|
($ in 000s, except Senior Housing average monthly revenue per unit)
|
|||||||||
|
Brookdale Ancillary Services
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||
|
Q1 (1)
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
|||||||||||||||||||||||||
|
Revenue
|
$
|
115,411
|
$
|
116,170
|
$
|
117,702
|
$
|
119,875
|
$
|
469,158
|
$
|
122,192
|
$
|
123,336
|
$
|
117,263
|
||||||||||||||||
|
Segment Facility Operating Expenses(2)
|
92,669
|
98,446
|
100,282
|
102,551
|
393,948
|
107,674
|
104,304
|
102,639
|
||||||||||||||||||||||||
|
Segment Operating Income
|
$
|
22,742
|
$
|
17,724
|
$
|
17,420
|
$
|
17,324
|
$
|
75,210
|
$
|
14,518
|
$
|
19,032
|
$
|
14,624
|
||||||||||||||||
|
Segment Operating Margin
|
19.7
|
%
|
15.3
|
%
|
14.8
|
%
|
14.5
|
%
|
16.0
|
%
|
11.9
|
%
|
15.4
|
%
|
12.5
|
%
|
||||||||||||||||
|
G&A Allocation(5)
|
$
|
8,251
|
$
|
7,811
|
$
|
6,678
|
$
|
8,203
|
$
|
30,943
|
$
|
7,965
|
$
|
7,998
|
$
|
6,323
|
||||||||||||||||
|
Segment Operating Income (Including G&A Allocation)
|
$
|
14,491
|
$
|
9,913
|
$
|
10,742
|
$
|
9,121
|
$
|
44,267
|
$
|
6,553
|
$
|
11,034
|
$
|
8,301
|
||||||||||||||||
|
Segment Operating Margin (Including G&A Allocation)
|
12.6
|
%
|
8.5
|
%
|
9.1
|
%
|
7.6
|
%
|
9.4
|
%
|
5.4
|
%
|
8.9
|
%
|
7.1
|
%
|
||||||||||||||||
|
Outpatient Therapy treatment codes
|
636,413
|
667,836
|
612,970
|
588,984
|
2,506,203
|
509,651
|
476,530
|
419,619
|
||||||||||||||||||||||||
|
Home Health average daily census
|
13,767
|
13,884
|
14,126
|
15,065
|
14,211
|
16,490
|
16,126
|
15,270
|
||||||||||||||||||||||||
|
Hospice average daily census
|
389
|
439
|
486
|
558
|
468
|
654
|
737
|
813
|
||||||||||||||||||||||||
|
Total Senior Housing and Brookdale Ancillary Services
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||
|
Q1 (1)
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
|||||||||||||||||||||||||
|
Revenue
|
$
|
1,052,232
|
$
|
1,043,978
|
$
|
1,040,082
|
$
|
1,040,835
|
$
|
4,177,127
|
$
|
1,061,148
|
$
|
1,054,568
|
$
|
1,042,831
|
||||||||||||||||
|
Facility Operating Expenses
|
696,889
|
694,991
|
699,720
|
697,262
|
2,788,862
|
715,902
|
693,103
|
704,221
|
||||||||||||||||||||||||
|
Operating Income
|
$
|
355,343
|
$
|
348,987
|
$
|
340,362
|
$
|
343,573
|
$
|
1,388,265
|
$
|
345,246
|
$
|
361,465
|
$ |
338,610
|
||||||||||||||||
|
Operating Margin
|
33.8
|
%
|
33.4
|
%
|
32.7
|
%
|
33.0
|
%
|
33.2
|
%
|
32.5
|
%
|
34.3
|
%
|
32.5
|
%
|
||||||||||||||||
|
G&A Allocation(5)
|
$
|
50,344
|
$
|
45,210
|
$
|
43,646
|
$
|
51,084
|
$
|
190,284
|
$
|
52,489
|
$
|
53,804
|
$ |
39,995
|
||||||||||||||||
|
Operating Income (Including G&A Allocation)
|
$
|
304,999
|
$
|
303,777
|
$
|
296,716
|
$
|
292,489
|
$
|
1,197,981
|
$
|
292,757
|
$
|
307,661
|
$
|
298,615
|
||||||||||||||||
|
Operating Margin (Including G&A Allocation)
|
29.0
|
%
|
29.1
|
%
|
28.5
|
%
|
28.1
|
%
|
28.7
|
%
|
27.6
|
%
|
29.2
|
%
|
28.6
|
%
|
||||||||||||||||
|
Management Services
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||
|
Q1 (1)
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
|||||||||||||||||||||||||
|
Revenue (Management Fees)
|
$
|
15,097
|
$
|
14,839
|
$
|
14,694
|
$
|
15,553
|
$
|
60,183
|
$
|
16,780
|
$
|
18,186
|
$
|
15,532
|
||||||||||||||||
|
Expenses (G&A Allocation)(5)
|
9,755
|
8,878
|
9,978
|
11,506
|
40,117
|
11,256
|
11,200
|
8,567
|
||||||||||||||||||||||||
|
Segment Operating Income (Including G&A Allocation)
|
$
|
5,342
|
$
|
5,961
|
$
|
4,716
|
$
|
4,047
|
$
|
20,066
|
$
|
5,524
|
$
|
6,986
|
$
|
6,965
|
||||||||||||||||
|
Segment Operating Margin (Including G&A Allocation)
|
35.4
|
%
|
40.2
|
%
|
32.1
|
%
|
26.0
|
%
|
33.3
|
%
|
32.9
|
%
|
38.4
|
%
|
44.8
|
%
|
||||||||||||||||
|
Number of communities (period end)
|
160
|
160
|
157
|
164
|
164
|
162
|
158
|
156
|
||||||||||||||||||||||||
|
Total average units(3)
|
27,185
|
27,026
|
26,590
|
26,464
|
26,834
|
26,613
|
26,435
|
26,088
|
||||||||||||||||||||||||
|
Weighted average occupancy
|
86.5
|
%
|
85.2
|
%
|
85.8
|
%
|
86.6
|
%
|
86.0
|
%
|
87.1
|
%
|
86.8
|
%
|
87.2
|
%
|
||||||||||||||||
|
Senior Housing average monthly revenue per unit(4)
|
$
|
4,277
|
$
|
4,238
|
$
|
4,224
|
$
|
4,246
|
$
|
4,249
|
$
|
4,371
|
$
|
4,350
|
$
|
4,322
|
||||||||||||||||
|
Total Senior Housing, Brookdale Ancillary and Management Services
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||
|
Q1 (1)
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
|||||||||||||||||||||||||
|
Revenue
|
$
|
1,067,329
|
$
|
1,058,817
|
$
|
1,054,776
|
$
|
1,056,388
|
$
|
4,237,310
|
$
|
1,077,928
|
$
|
1,072,754
|
$
|
1,058,363
|
||||||||||||||||
|
Expenses
|
696,889
|
694,991
|
699,720
|
697,262
|
2,788,862
|
715,902
|
693,103
|
704,221
|
||||||||||||||||||||||||
|
Operating Income
|
$
|
370,440
|
$
|
363,826
|
$
|
355,056
|
$
|
359,126
|
$
|
1,448,448
|
$
|
362,026
|
$
|
379,651
|
$
|
354,142
|
||||||||||||||||
|
Operating Margin
|
34.7
|
%
|
34.4
|
%
|
33.7
|
%
|
34.0
|
%
|
34.2
|
%
|
33.6
|
%
|
35.4
|
%
|
33.5
|
%
|
||||||||||||||||
|
G&A Allocation(5)
|
$
|
60,099
|
$
|
54,088
|
$
|
53,624
|
$
|
62,590
|
$
|
230,401
|
$
|
63,745
|
$
|
65,004
|
$
|
48,562
|
||||||||||||||||
|
Operating Income (Including G&A Allocation)
|
$
|
310,341
|
$
|
309,738
|
$
|
301,432
|
$
|
296,536
|
$
|
1,218,047
|
$
|
298,281
|
$
|
314,647
|
$
|
305,580
|
||||||||||||||||
|
Operating Margin (Including G&A Allocation)
|
29.1
|
%
|
29.3
|
%
|
28.6
|
%
|
28.1
|
%
|
28.7
|
%
|
27.7
|
%
|
29.3
|
%
|
28.9
|
%
|
||||||||||||||||
|
(1) Certain prior period expense amounts have been reclassified to conform to the current financial statement presentation, with no effect on the Company's consolidated financial position or results of operations.
|
|||||||||
|
(2) Segment facility operating expenses exclude depreciation and amortization.
|
|||||||||
|
(3) Total average units operated represents the average number of units operated during the period, excluding equity homes.
|
|||||||||
|
(4) Senior Housing average monthly revenue per unit represents the average of total monthly resident fee revenues, excluding amortization of entrance fees and Brookdale Ancillary Services segment revenue, divided by average occupied units.
|
|||||||||
|
(5) Excludes non-cash stock-based compensation expense and integration, transaction, transaction-related and strategic project costs.
|
|||||||||
3
|
Brookdale Senior Living Inc.
|
|||||||||
|
Senior Housing Data by Ownership Type
|
|||||||||
|
As of September 30, 2016
|
|||||||||
|
Financial Data and Operating Information
|
|||||||||
|
($ in 000s, except Senior Housing average monthly revenue per unit)
|
|||||||||
|
Owned Properties
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||
|
Q1 (1)
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
|||||||||||||||||||||||||
|
Revenue
|
$
|
412,555
|
$
|
411,576
|
$
|
409,249
|
$
|
412,678
|
$
|
1,646,058
|
$
|
415,775
|
$
|
406,908
|
$
|
403,655
|
||||||||||||||||
|
Facility Operating Expenses
|
276,225
|
274,608
|
274,427
|
277,509
|
1,102,769
|
278,140
|
267,901
|
271,664
|
||||||||||||||||||||||||
|
Operating Income
|
$
|
136,330
|
$
|
136,968
|
$
|
134,822
|
$
|
135,169
|
$
|
543,289
|
$
|
137,635
|
$
|
139,007
|
$
|
131,991
|
||||||||||||||||
|
Operating Margin
|
33.0
|
%
|
33.3
|
%
|
32.9
|
%
|
32.8
|
%
|
33.0
|
%
|
33.1
|
%
|
34.2
|
%
|
32.7
|
%
|
||||||||||||||||
|
Number of communities (period end)
|
422
|
424
|
424
|
413
|
407
|
407
|
375
|
|||||||||||||||||||||||||
|
Total average units(2)
|
36,923
|
37,182
|
37,128
|
37,431
|
36,248
|
35,615
|
35,206
|
|||||||||||||||||||||||||
|
Weighted average unit occupancy
|
86.5
|
%
|
85.4
|
%
|
85.7
|
%
|
85.9
|
%
|
85.5
|
%
|
85.1
|
%
|
85.4
|
%
|
||||||||||||||||||
|
Senior Housing average monthly revenue per unit(3)
|
$
|
4,305
|
$
|
4,319
|
$
|
4,286
|
$
|
4,277
|
$
|
4,470
|
$
|
4,474
|
$
|
4,473
|
||||||||||||||||||
|
Leased Properties with Purchase Options
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||
|
Q1 (1)
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
|||||||||||||||||||||||||
|
Revenue
|
$
|
82,064
|
$
|
79,516
|
$
|
79,568
|
$
|
75,462
|
$
|
316,610
|
$
|
77,455
|
$
|
75,301
|
$
|
75,148
|
||||||||||||||||
|
Facility Operating Expenses
|
52,414
|
50,638
|
51,187
|
47,852
|
202,091
|
49,583
|
47,522
|
48,503
|
||||||||||||||||||||||||
|
Operating Income
|
$
|
29,650
|
$
|
28,878
|
$
|
28,381
|
$
|
27,610
|
$
|
114,519
|
$
|
27,872
|
$
|
27,779
|
$
|
26,645
|
||||||||||||||||
|
Operating Margin
|
36.1
|
%
|
36.3
|
%
|
35.7
|
%
|
36.6
|
%
|
36.2
|
%
|
36.0
|
%
|
36.9
|
%
|
35.5
|
%
|
||||||||||||||||
|
Number of communities (period end)
|
103
|
101
|
101
|
96
|
95
|
94
|
94
|
|||||||||||||||||||||||||
|
Total average units(2)
|
7,027
|
6,803
|
6,806
|
6,340
|
6,336
|
6,144
|
6,143
|
|||||||||||||||||||||||||
|
Weighted average unit occupancy
|
87.8
|
%
|
86.7
|
%
|
87.4
|
%
|
88.2
|
%
|
87.8
|
%
|
87.9
|
%
|
88.0
|
%
|
||||||||||||||||||
|
Senior Housing average monthly revenue per unit(3)
|
$
|
4,433
|
$
|
4,492
|
$
|
4,458
|
$
|
4,498
|
$
|
4,641
|
$
|
4,647
|
$
|
4,634
|
||||||||||||||||||
|
Leased Properties without Purchase Options
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||
|
Q1 (1)
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
|||||||||||||||||||||||||
|
Revenue
|
$
|
442,202
|
$
|
436,716
|
$
|
433,563
|
$
|
432,820
|
$
|
1,745,301
|
$
|
445,726
|
$
|
449,023
|
$
|
446,765
|
||||||||||||||||
|
Facility Operating Expenses
|
275,581
|
271,299
|
273,824
|
269,350
|
1,090,054
|
280,505
|
273,376
|
281,415
|
||||||||||||||||||||||||
|
Operating Income
|
$
|
166,621
|
$
|
165,417
|
$
|
159,739
|
$
|
163,470
|
$
|
655,247
|
$
|
165,221
|
$
|
175,647
|
$
|
165,350
|
||||||||||||||||
|
Operating Margin
|
37.7
|
%
|
37.9
|
%
|
36.8
|
%
|
37.8
|
%
|
37.5
|
%
|
37.1
|
%
|
39.1
|
%
|
37.0
|
%
|
||||||||||||||||
|
Number of communities (period end)
|
456
|
452
|
450
|
450
|
457
|
455
|
452
|
|||||||||||||||||||||||||
|
Total average units(2)
|
38,972
|
38,537
|
38,462
|
38,419
|
38,357
|
38,941
|
38,710
|
|||||||||||||||||||||||||
|
Weighted average unit occupancy
|
88.2
|
%
|
87.4
|
%
|
87.5
|
%
|
87.3
|
%
|
86.4
|
%
|
86.2
|
%
|
86.7
|
%
|
||||||||||||||||||
|
Senior Housing average monthly revenue per unit(3)
|
$
|
4,282
|
$
|
4,313
|
$
|
4,289
|
$
|
4,294
|
$
|
4,474
|
$
|
4,450
|
$
|
4,430
|
||||||||||||||||||
|
Total Senior Housing
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||
|
Q1 (1)
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
|||||||||||||||||||||||||
|
Revenue
|
$
|
936,821
|
$
|
927,808
|
$
|
922,380
|
$
|
920,960
|
$
|
3,707,969
|
$
|
938,956
|
$
|
931,232
|
$
|
925,568
|
||||||||||||||||
|
Facility Operating Expenses
|
604,220
|
596,545
|
599,438
|
594,711
|
2,394,914
|
608,228
|
588,799
|
601,582
|
||||||||||||||||||||||||
|
Operating Income
|
$
|
332,601
|
$
|
331,263
|
$
|
322,942
|
$
|
326,249
|
$
|
1,313,055
|
$
|
330,728
|
$
|
342,433
|
$
|
323,986
|
||||||||||||||||
|
Operating Margin
|
35.5
|
%
|
35.7
|
%
|
35.0
|
%
|
35.4
|
%
|
35.4
|
%
|
35.2
|
%
|
36.8
|
%
|
35.0
|
%
|
||||||||||||||||
|
Number of communities (period end)
|
981
|
977
|
975
|
959
|
959
|
956
|
921
|
|||||||||||||||||||||||||
|
Total average units(2)
|
82,922
|
82,522
|
82,396
|
82,190
|
80,941
|
80,700
|
80,059
|
|||||||||||||||||||||||||
|
Weighted average unit occupancy
|
87.4
|
%
|
86.5
|
%
|
86.7
|
%
|
86.8
|
%
|
86.1
|
%
|
85.8
|
%
|
86.2
|
%
|
||||||||||||||||||
|
Senior Housing average monthly revenue per unit(3)
|
$
|
4,305
|
$
|
4,331
|
$
|
4,303
|
$
|
4,302
|
$
|
4,485
|
$
|
4,476
|
$
|
4,465
|
|
(1) Certain prior period expense amounts have been reclassified to conform to the current financial statement presentation, with no effect on the Company's consolidated financial position or results of operations.
|
|||||||||
|
(2) Total average units operated represents the average number of units operated during the period, excluding equity homes.
|
|||||||||
|
(3) Senior Housing average monthly revenue per unit represents the average of total monthly resident fee revenues, excluding amortization of entrance fees and Brookdale Ancillary Services segment revenue, divided by average occupied units.
|
|||||||||
4
|
Brookdale Senior Living Inc.
|
||||||
|
Same Community and Capital Expenditure Information
|
||||||
|
As of September 30, 2016
|
|
Senior Housing Same Community Information
|
||||||||||||||||||||||||
|
($ in 000s, except Senior Housing average monthly revenue per unit)
|
Three Months Ended September 30,
|
Twelve Months Ended September 30,
|
||||||||||||||||||||||
|
2016
|
2015
|
% Change
|
2016
|
2015
|
% Change
|
|||||||||||||||||||
|
Revenue
|
$
|
883,104
|
$
|
865,784
|
2.0
|
%
|
$
|
3,475,027
|
$
|
3,435,295
|
1.2
|
%
|
||||||||||||
|
Operating Expense
|
568,754
|
556,923
|
2.1
|
%
|
2,219,941
|
2,206,419
|
0.6
|
%
|
||||||||||||||||
|
Same Community Operating Income
|
$
|
314,350
|
$
|
308,861
|
1.8
|
%
|
$
|
1,255,086
|
$
|
1,228,876
|
2.1
|
%
|
||||||||||||
|
Same Community Operating Margin
|
35.6
|
%
|
35.7
|
%
|
-0.1
|
%
|
36.1
|
%
|
35.8
|
%
|
0.3
|
%
|
||||||||||||
|
Number of communities (period end)
|
896
|
896
|
888
|
888
|
||||||||||||||||||||
|
Weighted average unit occupancy
|
86.5
|
%
|
87.5
|
%
|
-1.0
|
%
|
86.6
|
%
|
88.1
|
%
|
-1.5
|
%
|
||||||||||||
|
Senior Housing average monthly revenue per unit (1)
|
$
|
4,446
|
$
|
4,308
|
3.2
|
%
|
$
|
4,415
|
$
|
4,291
|
2.9
|
%
|
||||||||||||
|
Same community information reflects historical results from senior housing operations for same store communities (utilizing the Company's methodology for determining same store communities).
|
||||||||||||||||||||||||
|
Schedule of Capital Expenditures
|
|
($ in 000s)
|
||||||||||||||||
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
|
Type
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
|
Recurring
|
$
|
19,406
|
$
|
16,947
|
$
|
50,684
|
$
|
53,236
|
||||||||
|
Less: reimbursements
|
(2,516
|
)
|
(2,416
|
)
|
(6,845
|
)
|
(6,277
|
)
|
||||||||
|
Net Recurring (2)
|
16,890
|
14,531
|
43,839
|
46,959
|
||||||||||||
|
EBITDA-enhancing / Major Projects (3)
|
20,609
|
45,865
|
81,730
|
107,236
|
||||||||||||
|
Corporate, integration and other (4)
|
18,112
|
18,433
|
45,835
|
61,456
|
||||||||||||
|
Non-Development Capital Expenditures
|
55,611
|
78,829
|
171,404
|
215,651
|
||||||||||||
|
Development (Program Max, net) (5)
|
6,000
|
14,284
|
16,722
|
25,044
|
||||||||||||
|
Total Capital Expenditures (6)
|
$
|
61,611
|
$
|
93,113
|
$
|
188,126
|
$
|
240,695
|
||||||||
|
Add: Total lessor reimbursements
|
$
|
10,385
|
$
|
30,317
|
$
|
42,711
|
$
|
61,083
|
||||||||
|
Add: Change in related payables
|
1,894
|
-
|
33,113
|
-
|
||||||||||||
|
Cash paid for additions to PP&E
|
$
|
73,890
|
$
|
123,430
|
$
|
263,950
|
$
|
301,778
|
||||||||
|
(1) Senior Housing average monthly revenue per unit represents the average of total monthly resident fee revenues, excluding amortization of entrance fees and Brookdale Ancillary Services segment revenue, divided by average occupied units.
|
||||||||||||
|
(2) Payments are included in CFFO.
|
||||||||||||
|
(3) Includes EBITDA-enhancing projects (primarily community renovations and apartment upgrades) and other major building infrastructure projects. Amounts shown are amounts invested, net of third party lessor reimbursements of $5.2 million and $24.1 million for the three months ended September 30, 2016 and 2015, respectively, and $18.0 million and $33.1 million for the nine months ended September 30, 2016 and 2015, respectively.
|
||||||||||||
|
(4) Corporate, integration and other includes capital expenditures for information technology systems and equipment and expenditures supporting the expansion of our support platform and ancillary services programs.
|
||||||||||||
|
(5) Includes community expansions and major repositioning or upgrade projects. Also includes de novo community developments. Amounts shown are amounts invested, net of third party lessor reimbursements of $2.7 million and $3.8 million for the three months ended September 30, 2016 and 2015, respectively, and $17.9 million and $21.7 million for the nine months ended September 30, 2016 and 2015, respectively.
|
||||||||||||
|
(6) Amounts shown are gross expenditures (including related payables), net of third party lessor reimbursements. Approximately $20.5 million and $30.3 million of expense was recognized during the three months ended September 30, 2016 and 2015, respectively, and $55.5 million and $61.1 million of expense was recognized during the nine months ended September 30, 2016 and 2015, respectively, for normal repairs and maintenance and capital spend under $1,500 per invoice, except for unit turnovers.
|
||||||||||||
5
|
Brookdale Senior Living Inc.
|
|||||||||||||||||||
|
Capital Structure - selected financial information
|
|||||||||||||||||||
|
As of September 30, 2016
|
|||||||||||||||||||
|
($ in 000s)
|
|||||||||||||||||||
|
Long Term Debt and Line of Credit Maturities
|
|
Maturities
|
||||||||||||||||||||
|
Mortgage
|
weighted
|
Line of
|
weighted
|
Total
|
||||||||||||||||
|
Debt (1)
|
rate (2)
|
Credit
|
rate (2)
|
Debt
|
||||||||||||||||
|
2016 (3)
|
$
|
93,761
|
4.63
|
%
|
$
|
-
|
-
|
$
|
93,761
|
|||||||||||
|
2017 (4)
|
278,452
|
5.58
|
%
|
-
|
-
|
278,452
|
||||||||||||||
|
2018
|
1,223,507
|
4.48
|
%
|
-
|
-
|
1,223,507
|
||||||||||||||
|
2019
|
136,611
|
5.83
|
%
|
-
|
-
|
136,611
|
||||||||||||||
|
2020
|
468,607
|
5.09
|
%
|
100,000
|
3.19
|
%
|
568,607
|
|||||||||||||
|
Thereafter
|
1,438,422
|
3.93
|
%
|
-
|
-
|
1,438,422
|
||||||||||||||
|
Total
|
$
|
3,639,360
|
4.47
|
%
|
$
|
100,000
|
3.19
|
%
|
$
|
3,739,360
|
||||||||||
|
Coverage Ratios
|
|
Nine Months Ended September 30, 2016 (5)
|
||||||||
|
Owned
|
Leased
|
|||||||
|
Communities
|
Communities*
|
|||||||
|
Units
|
33,949
|
44,762
|
||||||
|
Operating Income
|
$
|
408,633
|
$
|
588,514
|
||||
|
Operating Income adjusted for 5% management fee and capital expenditures at $350/unit
|
$
|
338,404
|
$
|
498,292
|
||||
|
Interest Payments
|
$
|
131,422
|
||||||
|
Cash Lease Payments
|
$
|
462,140
|
||||||
|
Coverage
|
2.6
|
x
|
1.1
|
x
|
||||
|
* Leased communities include communities subject to capital and financing leases.
|
||||||||
|
Debt Amortization
|
|||||||||
|
Nine Months Ended September 30,
|
||||||||
|
2016
|
2015
|
|||||||
|
Scheduled debt amortization
|
$
|
64,718
|
$
|
67,188
|
||||
|
Lease financing debt amortization with fair market value or no purchase option (6)
|
42,525
|
38,047
|
||||||
|
Lease financing debt amortization with bargain purchase option
|
4,731
|
4,401
|
||||||
|
Total debt amortization
|
$
|
111,974
|
$
|
109,636
|
||||
|
Credit Facility Availability
|
|
09/30/15
|
12/31/15
|
03/31/16
|
06/30/16
|
09/30/16
|
||||||||||||||||
|
Total credit facility commitment
|
$
|
500,000
|
$
|
500,000
|
$
|
500,000
|
$
|
500,000
|
$
|
500,000
|
||||||||||
|
Line of credit (7)
|
$
|
443,378
|
$
|
416,605
|
$
|
441,048
|
$
|
453,744
|
$
|
409,576
|
||||||||||
|
Less: term loan balance
|
(100,000
|
)
|
(100,000
|
)
|
(100,000
|
)
|
(100,000
|
)
|
(100,000
|
)
|
||||||||||
|
Less: revolving credit facility balance
|
(210,000
|
)
|
(210,000
|
)
|
(110,000
|
)
|
(86,500
|
)
|
-
|
|||||||||||
|
Available to draw
|
$
|
133,378
|
$
|
106,605
|
$
|
231,048
|
$
|
267,244
|
$
|
309,576
|
||||||||||
|
Cash and cash equivalents
|
70,391
|
88,029
|
70,862
|
39,053
|
74,184
|
|||||||||||||||
|
Total liquidity (available to draw + cash)
|
$
|
203,769
|
$
|
194,634
|
$
|
301,910
|
$
|
306,297
|
$
|
383,760
|
||||||||||
|
Total letters of credit outstanding
|
$
|
83,940
|
$
|
82,413
|
$
|
86,667
|
$
|
86,441
|
$
|
90,268
|
||||||||||
|
Leverage Ratios (8)
|
|||||||||
|
Annualized
|
|||||||||
|
Trailing twelve months ended September 30, 2016
|
Leverage | ||||||||
|
Adjusted EBITDAR
|
$
|
1,214,103
|
|||||||
|
Less: cash operating lease payments
|
(380,723
|
)
|
|||||||
|
Adjusted EBITDA
|
833,380
|
||||||||
|
Less: cash capital and financing lease payments
|
(233,263
|
)
|
|||||||
|
Adjusted EBITDA after capital and financing lease payments
|
600,117
|
||||||||
|
Debt as of September 30, 2016
|
|||||||||
|
Debt (1)
|
3,639,360
|
||||||||
|
Line of credit
|
100,000
|
||||||||
|
Less: cash and cash equivalents
|
(74,184
|
)
|
|||||||
|
Less: cash held as collateral against existing debt
|
(2,711
|
)
|
|||||||
|
Total net debt
|
3,662,465
|
6.1
|
x
|
|
|||||
|
Plus: cash lease payments multiplied by 8
|
4,911,888
|
||||||||
|
Total adjusted net debt
|
$
|
8,574,353
|
7.1
|
x
|
|||||
|
Debt Structure
|
|||||||||
|
Weighted
|
||||||||
|
Balance
|
rate (2)
|
|||||||
|
Fixed rate debt (1)
|
$
|
2,416,620
|
5.14
|
%
|
||||
|
Variable rate debt (1)
|
1,222,740
|
3.14
|
%
|
|||||
|
Line of credit (cash borrowings)
|
100,000
|
3.19
|
%
|
|||||
|
Total long term debt and line of credit
|
$
|
3,739,360
|
||||||
|
Balance
|
% of total
|
|||||||
|
Variable rate debt with interest rate caps (1) (9)
|
$
|
807,771
|
66.1
|
%
|
||||
|
Variable rate debt - unhedged (1)
|
414,969
|
33.9
|
%
|
|||||
|
Total variable rate debt (1)
|
$
|
1,222,740
|
100.0
|
%
|
||||
|
(1) Includes mortgage debt, convertible notes and other notes payable, but excludes capital and financing leases and line of credit.
|
||||||||||||||
|
(2) Pertaining to variable rate debt, reflects a) market rates as of September 30, 2016 and b) applicable cap rates for hedged debt.
|
||||||||||||||
|
(3) Maturities of mortgage debt in 2016 includes the following debt instruments with post-2016 scheduled maturity dates: (i) $46.3 million of debt on Assets Held for Sale and (ii) $29.1 million of demand notes payable to the unconsolidated entrance fee venture, which we utilize in certain states in lieu of cash reserves.
|
||||||||||||||
|
(4) Maturities of mortgage debt in 2017 includes $60.6 million of debt on Assets Held for Sale.
|
||||||||||||||
|
(5) Senior housing operating income and adjusted operating income exclude Brookdale Ancillary Services segment operating income.
|
||||||||||||||
|
(6) Payments are included in CFFO.
|
||||||||||||||
|
(7) The actual amount available to borrow under the line of credit may vary from time to time as it is based on borrowing base calculations related to the value and performance of the communities securing the facility. The availability is reduced by letters of credit issued under the line of credit as of the reporting date.
|
||||||||||||||
|
(8) Adjusted EBITDAR and Adjusted EBITDA as reported in the calculation of leverage ratios exclude integration, transaction, transaction-related and strategic project costs of $68.9 million (excluding $2.9 million of debt modification costs included in CFFO) for the trailing twelve months ended September 30, 2016.
|
||||||||||||||
|
(9) Weighted cap rate for stated reporting period of 4.63% is materially above current market rates, therefore caps have no impact on consolidated interest expense for given period.
|
||||||||||||||
6
|
Brookdale Senior Living Inc.
|
||
|
Adjusted EBITDA and CFFO Calculations
|
||
|
As of September 30, 2016
|
|
Reconciliation of the Company's CFFO and Adjusted CFFO
|
||||||||||||||
|
($ in 000s)
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||||||
|
Q1
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
Year to Date
|
||||||||||||||||||||||||||||
|
Net cash provided by operating activities
|
$
|
10,057
|
$
|
100,767
|
$
|
91,361
|
$
|
90,181
|
$
|
292,366
|
$
|
70,343
|
$
|
107,496
|
$
|
99,442
|
$
|
277,281
|
||||||||||||||||||
|
Net cash used in investing activities
|
(231,291
|
)
|
(145,206
|
)
|
(121,805
|
)
|
(70,675
|
)
|
(568,977
|
)
|
(74,448
|
)
|
(82,288
|
)
|
102,362
|
(54,374
|
)
|
|||||||||||||||||||
|
Net cash provided by (used in) financing activities
|
232,333
|
7,753
|
22,339
|
(1,868
|
)
|
260,557
|
(13,062
|
)
|
(57,017
|
)
|
(166,673
|
)
|
(236,752
|
)
|
||||||||||||||||||||||
|
Net increase (decrease) in cash and cash equivalents
|
$
|
11,099
|
$
|
(36,686
|
)
|
$
|
(8,105
|
)
|
$
|
17,638
|
$
|
(16,054
|
)
|
$
|
(17,167
|
)
|
$
|
(31,809
|
)
|
$
|
35,131
|
$
|
(13,845
|
)
|
||||||||||||
|
Net cash provided by operating activities
|
$
|
10,057
|
$
|
100,767
|
$
|
91,361
|
$
|
90,181
|
$
|
292,366
|
$
|
70,343
|
$
|
107,496
|
$
|
99,442
|
$
|
277,281
|
||||||||||||||||||
|
Changes in operating assets and liabilities
|
16,425
|
547
|
(6,324
|
)
|
664
|
11,312
|
28,140
|
10,420
|
23,967
|
62,527
|
||||||||||||||||||||||||||
|
Add: Refundable entrance fees received
|
36
|
550
|
924
|
429
|
1,939
|
535
|
611
|
840
|
1,986
|
|||||||||||||||||||||||||||
|
Less: Entrance fee refunds disbursed
|
(829
|
)
|
(988
|
)
|
(1,434
|
)
|
(1,160
|
)
|
(4,411
|
)
|
(1,128
|
)
|
(617
|
)
|
(1,148
|
)
|
(2,893
|
)
|
||||||||||||||||||
|
Less: Recurring capital expenditures, net
|
(15,003
|
)
|
(17,425
|
)
|
(14,531
|
)
|
(13,978
|
)
|
(60,937
|
)
|
(13,281
|
)
|
(13,668
|
)
|
(16,890
|
)
|
(43,839
|
)
|
||||||||||||||||||
|
Less: Lease financing debt amortization with fair market value or no purchase options
|
(12,439
|
)
|
(12,756
|
)
|
(12,852
|
)
|
(13,249
|
)
|
(51,296
|
)
|
(13,809
|
)
|
(14,117
|
)
|
(14,599
|
)
|
(42,525
|
)
|
||||||||||||||||||
|
Add: Loss on facility lease termination
|
76,143
|
-
|
-
|
-
|
76,143
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
|
Less: Distributions from unconsolidated ventures from cumulative share of net earnings
|
(500
|
)
|
(950
|
)
|
(6,375
|
)
|
-
|
(7,825
|
)
|
-
|
-
|
(6,400
|
)
|
(6,400
|
)
|
|||||||||||||||||||||
|
CFFO
|
$
|
73,890
|
$
|
69,745
|
$
|
50,769
|
$
|
62,887
|
$
|
257,291
|
$
|
70,800
|
$
|
90,125
|
$
|
85,212
|
$
|
246,137
|
||||||||||||||||||
|
Add: Integration, transaction, transaction-related and strategic project costs
|
27,300
|
29,027
|
42,499
|
24,853
|
123,679
|
20,928
|
17,324
|
8,775
|
47,027
|
|||||||||||||||||||||||||||
|
Adjusted CFFO
|
$
|
101,190
|
$
|
98,772
|
$
|
93,268
|
$
|
87,740
|
$
|
380,970
|
$
|
91,728
|
$
|
107,449
|
$
|
93,987
|
$
|
293,164
|
||||||||||||||||||
|
Calculation of Adjusted EBITDA and the Company's CFFO and Adjusted CFFO
|
|
($ in 000s)
|
FY 2015
|
FY 2016
|
Q3 2016 CFFO Distribution
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Q1 (1)
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
Year to Date
|
Owned
|
Other (2)
|
Transaction/
Integration
|
|||||||||||||||||||||||||||||||||||||
|
Resident fee and management fee revenue
|
$
|
1,067,329
|
$
|
1,058,817
|
$
|
1,054,776
|
$
|
1,056,388
|
$
|
4,237,310
|
$
|
1,077,928
|
$
|
1,072,754
|
$
|
1,058,363
|
3,209,045
|
$
|
403,655
|
$
|
654,708
|
$
|
-
|
|||||||||||||||||||||||||
|
Less: Facility operating expenses
|
(696,889
|
)
|
(694,991
|
)
|
(699,720
|
)
|
(697,262
|
)
|
(2,788,862
|
)
|
(715,902
|
)
|
(693,103
|
)
|
(704,221
|
)
|
(2,113,226
|
)
|
(271,664
|
)
|
(432,557
|
)
|
-
|
|||||||||||||||||||||||||
|
Add: Change in future service obligation
|
-
|
-
|
-
|
(941
|
)
|
(941
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||
|
Adjusted facility operating expenses
|
(696,889
|
)
|
(694,991
|
)
|
(699,720
|
)
|
(698,203
|
)
|
(2,789,803
|
)
|
(715,902
|
)
|
(693,103
|
)
|
(704,221
|
)
|
(2,113,226
|
)
|
(271,664
|
)
|
(432,557
|
)
|
-
|
|||||||||||||||||||||||||
|
Less: G&A expense (including non-cash stock-based compensation expense)
|
(89,530
|
)
|
(89,545
|
)
|
(99,534
|
)
|
(91,970
|
)
|
(370,579
|
)
|
(92,621
|
)
|
(90,695
|
)
|
(63,425
|
)
|
(246,741
|
)
|
(14,685
|
)
|
(42,332
|
)
|
(6,408
|
)
|
||||||||||||||||||||||||
|
Less: Transaction costs
|
(6,742
|
)
|
(421
|
)
|
-
|
(1,089
|
)
|
(8,252
|
)
|
(850
|
)
|
(441
|
)
|
(659
|
)
|
(1,950
|
)
|
-
|
-
|
(659
|
)
|
|||||||||||||||||||||||||||
|
Add: non-cash stock-based compensation expense
|
8,873
|
6,851
|
10,147
|
5,780
|
31,651
|
9,769
|
8,994
|
8,455
|
27,218
|
-
|
8,455
|
-
|
||||||||||||||||||||||||||||||||||||
|
Net G&A (3)
|
(87,399
|
)
|
(83,115
|
)
|
(89,387
|
)
|
(87,279
|
)
|
(347,180
|
)
|
(83,702
|
)
|
(82,142
|
)
|
(55,629
|
)
|
(221,473
|
)
|
(14,685
|
)
|
(33,877
|
)
|
(7,067
|
)
|
||||||||||||||||||||||||
|
Less: Facility lease expense
|
(94,471
|
)
|
(91,338
|
)
|
(91,144
|
)
|
(90,621
|
)
|
(367,574
|
)
|
(96,689
|
)
|
(92,682
|
)
|
(92,519
|
)
|
(281,890
|
)
|
-
|
(92,519
|
)
|
-
|
||||||||||||||||||||||||||
|
Add: Straight-line (income) expense
|
2,801
|
1,919
|
1,731
|
505
|
6,956
|
3,935
|
(523
|
)
|
(859
|
)
|
2,553
|
-
|
(859
|
)
|
-
|
|||||||||||||||||||||||||||||||||
|
Add: Amortization of (above) below market lease, net
|
(1,959
|
)
|
(1,840
|
)
|
(1,626
|
)
|
(1,733
|
)
|
(7,158
|
)
|
(1,733
|
)
|
(1,733
|
)
|
(1,699
|
)
|
(5,165
|
)
|
-
|
(1,699
|
)
|
-
|
||||||||||||||||||||||||||
|
Less: Amortization of deferred gain
|
(1,093
|
)
|
(1,093
|
)
|
(1,093
|
)
|
(1,093
|
)
|
(4,372
|
)
|
(1,093
|
)
|
(1,093
|
)
|
(1,093
|
)
|
(3,279
|
)
|
-
|
(1,093
|
)
|
-
|
||||||||||||||||||||||||||
|
Cash lease payments - operating leases
|
(94,722
|
)
|
(92,352
|
)
|
(92,132
|
)
|
(92,942
|
)
|
(372,148
|
)
|
(95,580
|
)
|
(96,031
|
)
|
(96,170
|
)
|
(287,781
|
)
|
-
|
(96,170
|
)
|
-
|
||||||||||||||||||||||||||
|
Adjusted EBITDA
|
188,319
|
188,359
|
173,537
|
177,964
|
728,179
|
182,744
|
201,478
|
202,343
|
586,565
|
117,306
|
92,104
|
(7,067
|
)
|
|||||||||||||||||||||||||||||||||||
|
Less: Amortization of entrance fee revenue
|
(767
|
)
|
(930
|
)
|
(619
|
)
|
(888
|
)
|
(3,204
|
)
|
(926
|
)
|
(1,013
|
)
|
(1,172
|
)
|
(3,111
|
)
|
-
|
(1,172
|
)
|
-
|
||||||||||||||||||||||||||
|
Add: Entrance fee receipts
|
2,491
|
3,408
|
4,498
|
2,655
|
13,052
|
3,622
|
4,982
|
4,709
|
13,313
|
-
|
4,709
|
-
|
||||||||||||||||||||||||||||||||||||
|
Less: Entrance fee disbursements
|
(829
|
)
|
(988
|
)
|
(1,434
|
)
|
(1,160
|
)
|
(4,411
|
)
|
(1,128
|
)
|
(617
|
)
|
(1,149
|
)
|
(2,894
|
)
|
-
|
(1,149
|
)
|
-
|
||||||||||||||||||||||||||
|
Net entrance fees
|
1,662
|
2,420
|
3,064
|
1,495
|
8,641
|
2,494
|
4,365
|
3,560
|
10,419
|
-
|
3,560
|
-
|
||||||||||||||||||||||||||||||||||||
|
Less: Recurring capital expenditures, net
|
(15,003
|
)
|
(17,425
|
)
|
(14,531
|
)
|
(13,978
|
)
|
(60,937
|
)
|
(13,281
|
)
|
(13,668
|
)
|
(16,890
|
)
|
(43,839
|
)
|
(7,313
|
)
|
(9,577
|
)
|
-
|
|||||||||||||||||||||||||
|
Less: Interest expense, net
|
(89,424
|
)
|
(90,530
|
)
|
(90,847
|
)
|
(88,738
|
)
|
(359,539
|
)
|
(87,428
|
)
|
(87,008
|
)
|
(86,581
|
)
|
(261,017
|
)
|
(43,701
|
)
|
(42,880
|
)
|
-
|
|||||||||||||||||||||||||
|
Less: Lease financing debt amortization with fair market value or no purchase options
|
(12,439
|
)
|
(12,756
|
)
|
(12,852
|
)
|
(13,249
|
)
|
(51,296
|
)
|
(13,809
|
)
|
(14,117
|
)
|
(14,599
|
)
|
(42,525
|
)
|
-
|
(14,599
|
)
|
-
|
||||||||||||||||||||||||||
|
Less: Other
|
1,542
|
607
|
(6,983
|
)
|
281
|
(4,553
|
)
|
1,006
|
88
|
(1,449
|
)
|
(355
|
)
|
-
|
259
|
(1,708
|
)
|
|||||||||||||||||||||||||||||||
|
CFFO
|
$
|
73,890
|
$
|
69,745
|
$
|
50,769
|
$
|
62,887
|
$
|
257,291
|
$
|
70,800
|
$
|
90,125
|
$
|
85,212
|
$
|
246,137
|
$
|
66,292
|
$
|
27,695
|
$
|
(8,775
|
)
|
|||||||||||||||||||||||
|
Add: Integration, transaction, transaction-related and strategic project costs
|
27,300
|
29,027
|
42,499
|
24,853
|
123,679
|
20,928
|
17,324
|
8,775
|
47,027
|
-
|
-
|
8,775
|
||||||||||||||||||||||||||||||||||||
|
Adjusted CFFO
|
$
|
101,190
|
$
|
98,772
|
$
|
93,268
|
$
|
87,740
|
$
|
380,970
|
$
|
91,728
|
$
|
107,449
|
$
|
93,987
|
$
|
293,164
|
$
|
66,292
|
$
|
27,695
|
$
|
-
|
||||||||||||||||||||||||
|
(1) Certain prior period expense amounts have been reclassified to conform to the current financial statement presentation, with no effect on the Company's consolidated financial position or results of operations.
|
||||||||||
|
(2) Other includes financial data from leased communities, Brookdale Ancillary Services, and Management Services.
|
||||||||||
|
(3) Allocation of G&A to Owned and Other is based upon a percentage of revenue and excludes non-cash stock-based compensation expense and integration, transaction, transaction-related and strategic project costs.
|
7
|
Brookdale Senior Living Inc.
|
||
|
CFFO of Unconsolidated Ventures
|
||
|
As of September 30, 2016
|
|
Cash Flow reconciliation of the Company's proportionate share of CFFO of unconsolidated ventures
|
||||||
|
($ in 000s)
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||||||
|
Q1
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
Year to Date
|
||||||||||||||||||||||||||||
|
Net cash provided by operating activities
|
$
|
4,904
|
$
|
50,321
|
$
|
57,202
|
$
|
67,839
|
$
|
180,266
|
$
|
54,593
|
$
|
55,842
|
$
|
47,095
|
$
|
157,530
|
||||||||||||||||||
|
Net cash used in investing activities
|
(62,323
|
)
|
(944,063
|
)
|
(36,471
|
)
|
(175,244
|
)
|
(1,218,101
|
)
|
(37,924
|
)
|
(45,682
|
)
|
(40,885
|
)
|
(124,491
|
)
|
||||||||||||||||||
|
Net cash provided by (used in) financing activities
|
45,241
|
911,636
|
(25,021
|
)
|
96,706
|
1,028,562
|
(5,851
|
)
|
(14,784
|
)
|
(12,073
|
)
|
(32,708
|
)
|
||||||||||||||||||||||
|
Net increase (decrease) in cash and cash equivalents
|
$
|
(12,178
|
)
|
$
|
17,894
|
$
|
(4,290
|
)
|
$
|
(10,699
|
)
|
$
|
(9,273
|
)
|
$
|
10,818
|
$
|
(4,624
|
)
|
$
|
(5,863
|
)
|
$
|
331
|
||||||||||||
|
Net cash provided by operating activities
|
$
|
4,904
|
$
|
50,321
|
$
|
57,202
|
$
|
67,839
|
$
|
180,266
|
$
|
54,593
|
$
|
55,842
|
$
|
47,095
|
$
|
157,530
|
||||||||||||||||||
|
Changes in operating assets and liabilities
|
34,041
|
(12,465
|
)
|
(11,936
|
)
|
(17,274
|
)
|
(7,634
|
)
|
(2,320
|
)
|
(5,205
|
)
|
(3,600
|
)
|
(11,125
|
)
|
|||||||||||||||||||
|
Add: Refundable entrance fees received
|
8,383
|
8,107
|
7,609
|
13,720
|
37,819
|
8,677
|
13,229
|
11,972
|
33,878
|
|||||||||||||||||||||||||||
|
Less: Entrance fee refunds disbursed
|
(9,181
|
)
|
(13,042
|
)
|
(10,875
|
)
|
(9,565
|
)
|
(42,663
|
)
|
(10,776
|
)
|
(13,906
|
)
|
(11,940
|
)
|
(36,622
|
)
|
||||||||||||||||||
|
Less: Recurring capital expenditures, net
|
(3,495
|
)
|
(4,658
|
)
|
(5,437
|
)
|
(6,253
|
)
|
(19,843
|
)
|
(4,316
|
)
|
(5,189
|
)
|
(5,256
|
)
|
(14,761
|
)
|
||||||||||||||||||
|
CFFO of unconsolidated ventures
|
$
|
34,652
|
$
|
28,263
|
$
|
36,563
|
$
|
48,467
|
$
|
147,945
|
$
|
45,858
|
$
|
44,771
|
$
|
38,271
|
$
|
128,900
|
||||||||||||||||||
|
Brookdale Weighted Average Ownership percentage
|
41.0
|
%
|
39.5
|
%
|
35.8
|
%
|
39.0
|
%
|
38.8
|
%
|
33.5
|
%
|
35.6
|
%
|
36.2
|
%
|
35.0
|
%
|
||||||||||||||||||
|
Brookdale's proportionate share of CFFO of unconsolidated ventures
|
$
|
14,213
|
$
|
11,177
|
$
|
13,093
|
$
|
18,896
|
$
|
57,379
|
$
|
15,354
|
$
|
15,939
|
$
|
13,837
|
$
|
45,130
|
||||||||||||||||||
|
Reconciliation of the Company's proportionate share of CFFO of unconsolidated ventures (line items present all unconsolidated ventures on an aggregate basis)
|
|
($ in 000s except Senior Housing average monthly revenue per unit)
|
|
FY 2015
|
FY 2016
|
|||||||||||||||||||||||||||||||||||
|
Q1
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
Year to Date
|
||||||||||||||||||||||||||||
|
Number of communities (period end)
|
100
|
136
|
136
|
140
|
140
|
139
|
140
|
|||||||||||||||||||||||||||||
|
Total average units
|
18,792
|
18,930
|
24,138
|
24,351
|
24,668
|
24,585
|
24,456
|
|||||||||||||||||||||||||||||
|
Weighted average unit occupancy
|
86.1
|
%
|
85.4
|
%
|
86.5
|
%
|
87.2
|
%
|
87.6
|
%
|
87.0
|
%
|
87.3
|
%
|
||||||||||||||||||||||
|
Senior Housing average monthly revenue per unit
|
$
|
4,405
|
$
|
4,370
|
$
|
4,196
|
$
|
4,216
|
$
|
4,342
|
$
|
4,322
|
$
|
4,323
|
||||||||||||||||||||||
|
Resident fee revenue
|
$
|
214,986
|
$
|
211,614
|
$
|
264,737
|
$
|
270,192
|
$
|
961,529
|
$
|
284,930
|
$
|
281,541
|
$
|
281,585
|
$
|
848,056
|
||||||||||||||||||
|
Less: Facility operating expenses
|
(150,920
|
)
|
(151,638
|
)
|
(188,189
|
)
|
(187,131
|
)
|
(677,878
|
)
|
(193,691
|
)
|
(193,921
|
)
|
(197,872
|
)
|
(585,484
|
)
|
||||||||||||||||||
|
Less: General and administrative expenses including management fees
|
(10,860
|
)
|
(10,771
|
)
|
(13,390
|
)
|
(14,689
|
)
|
(49,710
|
)
|
(15,388
|
)
|
(14,881
|
)
|
(14,536
|
)
|
(44,805
|
)
|
||||||||||||||||||
|
Adjusted EBITDA of unconsolidated ventures
|
53,206
|
49,205
|
63,158
|
68,372
|
233,941
|
75,851
|
72,739
|
69,177
|
217,767
|
|||||||||||||||||||||||||||
|
Less: Entrance fee amortization
|
(1,141
|
)
|
(1,482
|
)
|
(1,828
|
)
|
(1,718
|
)
|
(6,169
|
)
|
(3,395
|
)
|
(4,103
|
)
|
(4,544
|
)
|
(12,042
|
)
|
||||||||||||||||||
|
Add: Entrance fee receipts
|
23,251
|
26,040
|
27,744
|
35,017
|
112,052
|
25,882
|
32,574
|
29,263
|
87,719
|
|||||||||||||||||||||||||||
|
Less: Entrance fee disbursements
|
(9,181
|
)
|
(13,042
|
)
|
(10,875
|
)
|
(9,565
|
)
|
(42,663
|
)
|
(10,776
|
)
|
(13,906
|
)
|
(11,940
|
)
|
(36,622
|
)
|
||||||||||||||||||
|
Net entrance fees
|
14,070
|
12,998
|
16,869
|
25,452
|
69,389
|
15,106
|
18,668
|
17,323
|
51,097
|
|||||||||||||||||||||||||||
|
Less: Recurring capital expenditures, net
|
(3,495
|
)
|
(4,658
|
)
|
(5,437
|
)
|
(6,253
|
)
|
(19,843
|
)
|
(4,316
|
)
|
(5,189
|
)
|
(5,256
|
)
|
(14,761
|
)
|
||||||||||||||||||
|
Less: Interest expense, net
|
(27,375
|
)
|
(27,698
|
)
|
(35,899
|
)
|
(36,762
|
)
|
(127,734
|
)
|
(36,639
|
)
|
(36,173
|
)
|
(37,460
|
)
|
(110,272
|
)
|
||||||||||||||||||
|
Less: Other
|
(613
|
)
|
(103
|
)
|
(300
|
)
|
(624
|
)
|
(1,640
|
)
|
(749
|
)
|
(1,171
|
)
|
(969
|
)
|
(2,889
|
)
|
||||||||||||||||||
|
CFFO of unconsolidated ventures
|
$
|
34,652
|
$
|
28,263
|
$
|
36,563
|
$
|
48,467
|
$
|
147,945
|
$
|
45,858
|
$
|
44,771
|
$
|
38,271
|
$
|
128,900
|
||||||||||||||||||
|
Brookdale weighted average ownership %
|
41.0
|
%
|
39.5
|
%
|
35.8
|
%
|
39.0
|
%
|
38.8
|
%
|
33.5
|
%
|
35.6
|
%
|
36.2
|
%
|
35.0
|
%
|
||||||||||||||||||
|
Brookdale's proportionate share of CFFO of unconsolidated ventures
|
$
|
14,213
|
$
|
11,177
|
$
|
13,093
|
$
|
18,896
|
$
|
57,379
|
$
|
15,354
|
$
|
15,939
|
$
|
13,837
|
$
|
45,130
|
||||||||||||||||||
|
Leverage Ratio for Unconsolidated Ventures
|
||
|
($ in 000s)
|
|
Debt Principal as of September 30, 2016
|
$
|
2,186,925
|
||
|
Annualized Adjusted EBITDA of unconsolidated ventures
|
$
|
290,356
|
||
|
Leverage
|
7.5
|
x
|
|
Aggregate Capital Expenditures of unconsolidated ventures
|
|
($ in 000s)
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||||||
|
Type
|
Q1
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q2
|
Q3
|
||||||||||||||||||||||||
|
Recurring
|
$
|
3,495
|
$
|
4,658
|
$
|
5,437
|
$
|
6,253
|
$
|
19,843
|
$
|
4,316
|
$
|
5,189
|
$
|
5,256
|
||||||||||||||||
|
EBITDA-enhancing / Major Projects
|
13,243
|
24,562
|
27,167
|
37,079
|
102,051
|
17,490
|
19,319
|
20,508
|
||||||||||||||||||||||||
|
Development (Program Max)
|
8,409
|
9,272
|
5,634
|
12,966
|
36,281
|
7,863
|
10,307
|
8,810
|
||||||||||||||||||||||||
|
Total Capital Expenditures
|
$
|
25,147
|
$
|
38,492
|
$
|
38,238
|
$
|
56,298
|
$
|
158,175
|
$
|
29,669
|
$
|
34,815
|
$
|
34,574
|
||||||||||||||||
8
|
Brookdale Senior Living Inc.
|
|||
|
Cash Lease and Interest Expense
|
|||
|
As of September 30, 2016
|
|||
|
Lease Maturity Information
|
|||||
|
Leased Properties with Purchase
Options
|
Leased Properties without
Purchase Options
|
Total Leased Communities
|
|||||||
|
Community
|
Unit
|
Community
|
Unit
|
Community
|
Unit
|
||||
|
Initial Lease Maturities
|
Count
|
Capacity
|
Count
|
Capacity
|
Count
|
Capacity
|
|||
|
2016
|
-
|
-
|
3
|
260
|
3
|
260
|
|||
|
2017
|
31
|
2,050
|
7
|
819
|
38
|
2,869
|
|||
|
2018
|
42
|
2,169
|
11
|
1,503
|
53
|
3,672
|
|||
|
2019
|
3
|
327
|
50
|
2,762
|
53
|
3,089
|
|||
|
2020
|
2
|
301
|
90
|
4,686
|
92
|
4,987
|
|||
|
Thereafter
|
16
|
1,296
|
291
|
28,589
|
307
|
29,885
|
|||
|
Total
|
94
|
6,143
|
452
|
38,619
|
546
|
44,762
|
|||
|
Cash Lease Payments and Debt Interest Expense, Net
|
||||
|
($ in 000s)
|
FY 2015
|
FY 2016
|
||||||||||||||||||||||||||
|
Q1
|
Q2
|
Q3
|
Q4
|
Q1
|
Q2
|
Q3
|
||||||||||||||||||||||
|
Cash Lease Payments
|
||||||||||||||||||||||||||||
|
Facility lease expense
|
$
|
94,471
|
$
|
91,338
|
$
|
91,144
|
$
|
90,621
|
$
|
96,689
|
$
|
92,682
|
$
|
92,519
|
||||||||||||||
|
Less: Straight-line (income) expense, net
|
(2,801
|
)
|
(1,919
|
)
|
(1,731
|
)
|
(505
|
)
|
(3,935
|
)
|
523
|
859
|
||||||||||||||||
|
Less: Amortization of (above) below market lease, net
|
1,959
|
1,840
|
1,626
|
1,733
|
1,733
|
1,733
|
1,699
|
|||||||||||||||||||||
|
Add: Amortization of deferred gain
|
1,093
|
1,093
|
1,093
|
1,093
|
1,093
|
1,093
|
1,093
|
|||||||||||||||||||||
|
Cash operating lease payments
|
$
|
94,722
|
$
|
92,352
|
$
|
92,132
|
$
|
92,942
|
$
|
95,580
|
$
|
96,031
|
$
|
96,170
|
||||||||||||||
|
Supplemental breakout:
|
||||||||||||||||||||||||||||
|
Communities with purchase options
|
$
|
6,343
|
$
|
6,311
|
$
|
5,734
|
$
|
5,968
|
$
|
5,779
|
$
|
5,784
|
$
|
5,814
|
||||||||||||||
|
Communities without purchase options
|
88,379
|
86,041
|
86,398
|
86,974
|
89,801
|
90,247
|
90,356
|
|||||||||||||||||||||
|
$
|
94,722
|
$
|
92,352
|
$
|
92,132
|
$
|
92,942
|
$
|
95,580
|
$
|
96,031
|
$
|
96,170
|
|||||||||||||||
|
Interest Expense: Capital and financing lease obligations
|
$
|
53,203
|
$
|
53,043
|
$
|
53,217
|
$
|
51,669
|
$
|
50,579
|
$
|
50,581
|
$
|
50,402
|
||||||||||||||
|
Less: Non-cash interest expense on financing lease obligations
|
(5,700
|
)
|
(5,816
|
)
|
(5,942
|
)
|
(6,014
|
)
|
(6,439
|
)
|
(6,575
|
)
|
(6,714
|
)
|
||||||||||||||
|
Add: Lease financing debt amortization with FMV or no purchase option
|
12,439
|
12,756
|
12,852
|
13,249
|
13,809
|
14,117
|
14,599
|
|||||||||||||||||||||
|
Cash capital and financing lease payments
|
$
|
59,942
|
$
|
59,983
|
$
|
60,127
|
$
|
58,904
|
$
|
57,949
|
$
|
58,123
|
$
|
58,287
|
||||||||||||||
|
Supplemental breakout:
|
||||||||||||||||||||||||||||
|
Communities with purchase options
|
$
|
14,205
|
$
|
13,558
|
$
|
13,975
|
$
|
12,233
|
$
|
12,563
|
$
|
12,430
|
$
|
12,309
|
||||||||||||||
|
Communities without purchase options
|
45,737
|
46,425
|
46,152
|
46,671
|
45,386
|
45,693
|
45,978
|
|||||||||||||||||||||
|
$
|
59,942
|
$
|
59,983
|
$
|
60,127
|
$
|
58,904
|
$
|
57,949
|
$
|
58,123
|
$
|
58,287
|
|||||||||||||||
|
Total cash lease payments
|
$
|
154,664
|
$
|
152,335
|
$
|
152,259
|
$
|
151,846
|
$
|
153,529
|
$
|
154,154
|
$
|
154,457
|
||||||||||||||
|
Debt Interest Expense, Net
|
||||||||||||||||||||||||||||
|
Property level debt interest expense
|
$
|
40,174
|
$
|
41,510
|
$
|
41,798
|
$
|
41,306
|
$
|
41,816
|
$
|
41,557
|
$
|
41,527
|
||||||||||||||
|
Convertible debt interest expense
|
2,174
|
2,174
|
2,174
|
2,174
|
2,174
|
2,174
|
2,174
|
|||||||||||||||||||||
|
Total debt interest expense
|
42,348
|
43,684
|
43,972
|
43,480
|
43,990
|
43,731
|
43,701
|
|||||||||||||||||||||
|
Less: interest income
|
(427
|
)
|
(382
|
)
|
(398
|
)
|
(396
|
)
|
(702
|
)
|
(728
|
)
|
(809
|
)
|
||||||||||||||
|
Debt interest expense, net
|
$
|
41,921
|
$
|
43,302
|
$
|
43,574
|
$
|
43,084
|
$
|
43,288
|
$
|
43,003
|
$
|
42,892
|
||||||||||||||
9
|
Brookdale Senior Living Inc.
|
|
Quarterly Cash Flow Statements
|
|
As of September 30, 2016
|
|
($ in 000s)
|
|
Cash Flow Statements
|
|
Q1 2015
|
Q2 2015
|
Q3 2015
|
Q4 2015
|
FY 2015
|
Q1 2016
|
Q2 2016
|
Q3 2016
|
Year to Date
|
||||||||||||||||||||||||||||
|
Cash Flows from Operating Activities
|
||||||||||||||||||||||||||||||||||||
|
Net income (loss)
|
$
|
(130,709
|
)
|
$
|
(84,807
|
)
|
$
|
(68,336
|
)
|
$
|
(174,303
|
)
|
$
|
(458,155
|
)
|
$
|
(48,817
|
)
|
$
|
(35,491
|
)
|
$
|
(51,728
|
)
|
$
|
(136,036
|
)
|
|||||||||
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||||||||||||||||||||||||||||||
|
Loss on extinguishment of debt, net
|
44
|
-
|
-
|
77
|
121
|
139
|
-
|
236
|
375
|
|||||||||||||||||||||||||||
|
Depreciation and amortization, net
|
220,808
|
225,483
|
161,331
|
128,894
|
736,516
|
129,447
|
135,682
|
133,163
|
398,292
|
|||||||||||||||||||||||||||
|
Asset impairment
|
-
|
-
|
-
|
57,941
|
57,941
|
3,375
|
4,152
|
19,111
|
26,638
|
|||||||||||||||||||||||||||
|
Equity in (earnings) loss of unconsolidated ventures
|
(1,484
|
)
|
672
|
1,578
|
38
|
804
|
(1,018
|
)
|
(338
|
)
|
878
|
(478
|
)
|
|||||||||||||||||||||||
|
Distributions from unconsolidated ventures from cumulative share of net earnings
|
500
|
950
|
6,375
|
-
|
7,825
|
-
|
-
|
6,400
|
6,400
|
|||||||||||||||||||||||||||
|
Amortization of deferred gain
|
(1,093
|
)
|
(1,093
|
)
|
(1,093
|
)
|
(1,093
|
)
|
(4,372
|
)
|
(1,093
|
)
|
(1,093
|
)
|
(1,093
|
)
|
(3,279
|
)
|
||||||||||||||||||
|
Amortization of entrance fee revenue
|
(767
|
)
|
(930
|
)
|
(619
|
)
|
(888
|
)
|
(3,204
|
)
|
(926
|
)
|
(1,013
|
)
|
(1,172
|
)
|
(3,111
|
)
|
||||||||||||||||||
|
Proceeds from deferred entrance fee revenue
|
2,455
|
2,858
|
3,574
|
2,226
|
11,113
|
3,087
|
4,371
|
3,869
|
11,327
|
|||||||||||||||||||||||||||
|
Deferred income tax (benefit) provision
|
(79,237
|
)
|
(53,225
|
)
|
(31,552
|
)
|
68,753
|
(95,261
|
)
|
934
|
(602
|
)
|
3,472
|
3,804
|
||||||||||||||||||||||
|
Change in deferred lease liability
|
2,801
|
1,919
|
1,731
|
505
|
6,956
|
3,935
|
(523
|
)
|
(859
|
)
|
2,553
|
|||||||||||||||||||||||||
|
Change in fair value of derivatives
|
550
|
76
|
164
|
7
|
797
|
24
|
4
|
-
|
28
|
|||||||||||||||||||||||||||
|
(Gain) loss on sale of assets
|
-
|
-
|
(1,723
|
)
|
453
|
(1,270
|
)
|
(2,749
|
)
|
198
|
425
|
(2,126
|
)
|
|||||||||||||||||||||||
|
Change in future service obligation
|
-
|
-
|
-
|
(941
|
)
|
(941
|
)
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
|
Non-cash stock-based compensation
|
8,873
|
6,851
|
10,147
|
5,780
|
31,651
|
9,769
|
8,994
|
8,455
|
27,218
|
|||||||||||||||||||||||||||
|
Non-cash interest expense on financing lease obligations
|
5,700
|
5,816
|
5,942
|
6,014
|
23,472
|
6,439
|
6,575
|
6,714
|
19,728
|
|||||||||||||||||||||||||||
|
Amortization of (above) below market rents, net
|
(1,959
|
)
|
(1,840
|
)
|
(1,626
|
)
|
(1,733
|
)
|
(7,158
|
)
|
(1,733
|
)
|
(1,733
|
)
|
(1,699
|
)
|
(5,165
|
)
|
||||||||||||||||||
|
Other
|
-
|
(1,416
|
)
|
(856
|
)
|
(885
|
)
|
(3,157
|
)
|
(2,330
|
)
|
(1,267
|
)
|
(2,763
|
)
|
(6,360
|
)
|
|||||||||||||||||||
|
Changes in operating assets and liabilities:
|
||||||||||||||||||||||||||||||||||||
|
Accounts receivable, net
|
(13,140
|
)
|
899
|
9,334
|
8,515
|
5,608
|
(2,738
|
)
|
8,177
|
2,744
|
8,183
|
|||||||||||||||||||||||||
|
Prepaid expenses and other assets, net
|
24,504
|
12,989
|
2,404
|
11,182
|
51,079
|
(36,554
|
)
|
19,709
|
9,507
|
(7,338
|
)
|
|||||||||||||||||||||||||
|
Accounts payable and accrued expenses
|
(38,773
|
)
|
(10,763
|
)
|
26,344
|
(37,372
|
)
|
(60,564
|
)
|
(1,388
|
)
|
(21,745
|
)
|
(50,759
|
)
|
(73,892
|
)
|
|||||||||||||||||||
|
Tenant refundable fees and security deposits
|
(510
|
)
|
(7
|
)
|
(221
|
)
|
214
|
(524
|
)
|
(226
|
)
|
264
|
(731
|
)
|
(693
|
)
|
||||||||||||||||||||
|
Deferred revenue
|
11,494
|
(3,665
|
)
|
(31,537
|
)
|
16,797
|
(6,911
|
)
|
12,766
|
(16,825
|
)
|
15,272
|
11,213
|
|||||||||||||||||||||||
|
Net cash provided by operating activities
|
10,057
|
100,767
|
91,361
|
90,181
|
292,366
|
70,343
|
107,496
|
99,442
|
277,281
|
|||||||||||||||||||||||||||
|
Cash Flows from Investing Activities
|
||||||||||||||||||||||||||||||||||||
|
Decrease (increase) in lease security deposits and lease acquisition deposits, net
|
13,037
|
2,686
|
(3,182
|
)
|
(1,675
|
)
|
10,866
|
(1,210
|
)
|
(328
|
)
|
(238
|
)
|
(1,776
|
)
|
|||||||||||||||||||||
|
Decrease (increase) in cash and escrow deposits — restricted
|
12,289
|
(2,083
|
)
|
(3,384
|
)
|
22,464
|
29,286
|
72
|
283
|
(2,165
|
)
|
(1,810
|
)
|
|||||||||||||||||||||||
|
Additions to property, plant and equipment and leasehold intangibles, net
|
(79,129
|
)
|
(99,219
|
)
|
(123,430
|
)
|
(109,273
|
)
|
(411,051
|
)
|
(108,510
|
)
|
(81,550
|
)
|
(73,890
|
)
|
(263,950
|
)
|
||||||||||||||||||
|
Acquisition of assets, net of related payables
|
(174,305
|
)
|
(18,396
|
)
|
(750
|
)
|
2,235
|
(191,216
|
)
|
(12,157
|
)
|
-
|
-
|
(12,157
|
)
|
|||||||||||||||||||||
|
Investment in unconsolidated ventures
|
(3,923
|
)
|
(34,686
|
)
|
(2,100
|
)
|
(28,588
|
)
|
(69,297
|
)
|
(2,365
|
)
|
(1,368
|
)
|
(2,338
|
)
|
(6,071
|
)
|
||||||||||||||||||
|
Distributions received from unconsolidated ventures
|
-
|
-
|
7,038
|
2,016
|
9,054
|
1,724
|
1,878
|
1,234
|
4,836
|
|||||||||||||||||||||||||||
|
Proceeds from sale of assets, net
|
-
|
4,993
|
3,079
|
41,154
|
49,226
|
45,584
|
-
|
173,887
|
219,471
|
|||||||||||||||||||||||||||
|
Other
|
740
|
1,499
|
924
|
992
|
4,155
|
2,414
|
(1,203
|
)
|
5,872
|
7,083
|
||||||||||||||||||||||||||
|
Net cash used in investing activities
|
(231,291
|
)
|
(145,206
|
)
|
(121,805
|
)
|
(70,675
|
)
|
(568,977
|
)
|
(74,448
|
)
|
(82,288
|
)
|
102,362
|
(54,374
|
)
|
|||||||||||||||||||
|
Cash Flows from Financing Activities
|
||||||||||||||||||||||||||||||||||||
|
Proceeds from debt
|
85,365
|
79,828
|
384,938
|
35,519
|
585,650
|
177,370
|
14,758
|
10,004
|
202,132
|
|||||||||||||||||||||||||||
|
Repayment of debt and capital and financing lease obligations
|
(47,555
|
)
|
(36,482
|
)
|
(369,352
|
)
|
(32,373
|
)
|
(485,762
|
)
|
(84,016
|
)
|
(44,411
|
)
|
(89,269
|
)
|
(217,696
|
)
|
||||||||||||||||||
|
Proceeds from line of credit
|
445,000
|
240,000
|
285,000
|
205,000
|
1,175,000
|
448,500
|
446,000
|
382,000
|
1,276,500
|
|||||||||||||||||||||||||||
|
Repayment of line of credit
|
(245,000
|
)
|
(270,000
|
)
|
(245,000
|
)
|
(205,000
|
)
|
(965,000
|
)
|
(548,500
|
)
|
(469,500
|
)
|
(468,500
|
)
|
(1,486,500
|
)
|
||||||||||||||||||
|
Payment of financing costs, net of related payables
|
(1,481
|
)
|
(1,985
|
)
|
(28,785
|
)
|
(371
|
)
|
(32,622
|
)
|
(818
|
)
|
177
|
(773
|
)
|
(1,414
|
)
|
|||||||||||||||||||
|
Refundable entrance fees:
|
||||||||||||||||||||||||||||||||||||
|
Proceeds from refundable entrance fees
|
36
|
550
|
924
|
429
|
1,939
|
535
|
611
|
840
|
1,986
|
|||||||||||||||||||||||||||
|
Refunds of entrance fees
|
(829
|
)
|
(988
|
)
|
(1,434
|
)
|
(1,160
|
)
|
(4,411
|
)
|
(1,128
|
)
|
(617
|
)
|
(1,148
|
)
|
(2,893
|
)
|
||||||||||||||||||
|
Cash portion of loss on extinguishment of debt, net
|
(44
|
)
|
-
|
-
|
-
|
(44
|
)
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
|
Payment on lease termination
|
(3,875
|
)
|
(3,875
|
)
|
(4,625
|
)
|
(4,625
|
)
|
(17,000
|
)
|
(4,625
|
)
|
(4,625
|
)
|
-
|
(9,250
|
)
|
|||||||||||||||||||
|
Other
|
716
|
705
|
673
|
713
|
2,807
|
(380
|
)
|
590
|
173
|
383
|
||||||||||||||||||||||||||
|
Net cash provided by (used in) financing activities
|
232,333
|
7,753
|
22,339
|
(1,868
|
)
|
260,557
|
(13,062
|
)
|
(57,017
|
)
|
(166,673
|
)
|
(236,752
|
)
|
||||||||||||||||||||||
|
Net increase (decrease) in cash and cash equivalents
|
11,099
|
(36,686
|
)
|
(8,105
|
)
|
17,638
|
(16,054
|
)
|
(17,167
|
)
|
(31,809
|
)
|
35,131
|
(13,845
|
)
|
|||||||||||||||||||||
|
Cash and cash equivalents at beginning of period
|
104,083
|
115,182
|
78,496
|
70,391
|
104,083
|
88,029
|
70,862
|
39,053
|
88,029
|
|||||||||||||||||||||||||||
|
Cash and cash equivalents at end of period
|
$
|
115,182
|
$
|
78,496
|
$
|
70,391
|
$
|
88,029
|
$
|
88,029
|
$
|
70,862
|
$
|
39,053
|
$
|
74,184
|
$
|
74,184
|
||||||||||||||||||
10