NASHVILLE, Tenn., Jan. 13, 2023 /PRNewswire/ — Brookdale Senior Dwelling Inc. (NYSE: BKD) (“Brookdale” or the “Firm”) at present introduced management modifications designed to maximise efficiencies. The Firm additionally introduced choose modifications to its full-year 2022 monetary expectations primarily based on its preliminary, unaudited outcomes. The up to date expectations are primarily based on administration’s estimates derived from the knowledge obtainable at the moment and are topic to revision upon finalization of the Firm’s year-end accounting and monetary reporting processes and evaluations, and completion of the annual audit.
“Brookdale is a studying group that continues to refine efforts to higher help and serve our residents, associates, and shareholders,” stated Lucinda (“Cindy”) Baier, Brookdale’s President and CEO. “We’ve got demonstrated a profitable progress technique with our sturdy 2022 top-line progress. This week, we’ve got taken significant actions to streamline our group to drive improved effectivity and higher align our bills with income.”
Management Modifications
Steven E. Swain, who serves as Brookdale’s Govt Vice President and Chief Monetary Officer, will terminate employment efficient February 24, 2023.
Concurrently, Daybreak L. Kussow, the Firm’s Senior Vice President and Chief Accounting Officer, can be appointed Govt Vice President and Chief Monetary Officer. She can even proceed to function the Firm’s principal accounting officer.
Kevin W. Bowman, who served as Brookdale’s Govt Vice President – Group Operations, terminated employment efficient January 12, 2023.
Divisional Vice Presidents Laura E. Fischer and Benjamin J. Ricci will proceed to guide the operations for the Firm’s West and East Divisions, and every will now report on to Ms. Baier.
Richard (“Rick”) R. Wigginton has been promoted to Chief Gross sales Officer.
These management modifications are aligned with further company and subject optimizations that had been just lately applied.
“I thank Steve and Kevin for his or her management and dedication to Brookdale through the years,” said Ms. Baier. “With Daybreak’s exceptional monitor report, Rick’s demonstrated success, and Laura and Ben’s deep operational expertise, I’m assured they’ll proceed to supply wonderful management and drive improved efficiency.”
Monetary Expectations
Based mostly on the Firm’s preliminary, unaudited 2022 monetary outcomes, the Firm expects:
- Full-year steerage for RevPAR progress can be achieved;
- Full-year Adjusted EBITDA can be modestly under the beforehand issued steerage vary. In comparison with the Firm’s earlier estimates, the Firm now expects:
- Whole income and different working earnings to exceed expectations;
- Facility working bills to extend barely above 1% within the fourth quarter relative to the third quarter, which compares to the Firm’s prior expectation for slight sequential enchancment versus the third quarter.
Ms. Baier concluded, “I’m happy to announce that we continued sturdy income progress within the fourth quarter 2022. We’re persevering with to reply to a difficult labor market and confronted the sudden affect of winter storm Elliott. Our associates’ dedication to serving our residents continues to make me proud.”
Cautionary Assertion Concerning Ahead-Wanting Statements
Sure statements on this press launch might represent forward-looking statements throughout the which means of the Non-public Securities Litigation Reform Act of 1995. These forward-looking statements are topic to numerous dangers and uncertainties and embrace all statements that aren’t historic statements of truth and people concerning Brookdale’s intent, perception or expectations. Ahead-looking statements are usually identifiable by use of forward-looking terminology reminiscent of “might,” “will,” “might,” “potential,” “intend,” “count on,” “estimate,” “imagine,” “plan,” or different comparable phrases or expressions, and embrace statements concerning the Firm’s anticipated monetary outcomes, the Firm’s operational initiatives and progress methods and the Firm’s expectations concerning their impact on our outcomes. These forward-looking statements are primarily based on sure assumptions and expectations, and Brookdale’s means to foretell outcomes or the precise impact of future plans or methods is inherently unsure. Though Brookdale believes that expectations mirrored in any forward-looking statements are primarily based on cheap assumptions, it can provide no assurance that its assumptions or expectations can be attained, and precise outcomes and efficiency might differ materially from these projected. Elements which might have a fabric hostile impact on Brookdale’s operations and future prospects or which might trigger occasions or circumstances to vary from the forward-looking statements embrace, however are usually not restricted to, the impacts of the COVID-19 pandemic, together with the response efforts of federal, state, and native authorities authorities, companies, people, and the Firm on the Firm’s enterprise, outcomes of operations, money stream, income, bills, liquidity, and its strategic initiatives, together with plans for future progress, which is able to rely upon many components, a few of which can’t be foreseen, together with the length, severity, and breadth of the pandemic and any resurgence or variants of the illness, the affect of COVID-19 on the nation’s economic system and debt and fairness markets and the native economies within the Firm’s markets, the event, availability, utilization, and efficacy of COVID-19 testing, therapeutic brokers, and vaccines and the prioritization of such assets amongst companies and demographic teams, authorities monetary and regulatory reduction efforts that will turn into obtainable to enterprise and people, together with the Firm’s means to qualify for and fulfill the phrases and circumstances of economic reduction, perceptions concerning the protection of senior residing communities throughout and after the pandemic, modifications in demand for senior residing communities and the Firm’s means to adapt its gross sales and advertising efforts to fulfill that demand, the affect of COVID-19 on the Firm’s residents’ and their households’ means to afford its resident charges, together with on account of modifications in unemployment charges, client confidence, housing markets, and fairness markets attributable to COVID-19, modifications within the acuity ranges of the Firm’s new residents, the disproportionate affect of COVID-19 on seniors usually and people residing within the Firm’s communities, the length and prices of the Firm’s response efforts, together with elevated tools, provides, labor, litigation, testing, vaccination clinic, well being plan, and different bills, larger use of contract labor and time beyond regulation on account of COVID-19 and normal labor market circumstances, the affect of COVID-19 on the Firm’s means to finish financings and refinancings of assorted property, or different transactions or to generate adequate money stream to cowl required debt, curiosity, and lease funds and to fulfill monetary and different covenants in its debt and lease paperwork, elevated regulatory necessities, together with the prices of unfunded, obligatory testing of residents and associates and provision of take a look at kits to the Firm’s well being plan members, elevated enforcement actions ensuing from COVID-19, authorities motion that will restrict the Firm’s assortment or discharge efforts for delinquent accounts, and the frequency and magnitude of authorized actions and legal responsibility claims that will come up on account of COVID-19 or the Firm’s response efforts; occasions which adversely have an effect on the power of seniors to afford resident charges, together with downturns within the economic system, housing market, client confidence, or the fairness markets and unemployment amongst resident members of the family; modifications in reimbursement charges, strategies, or timing underneath governmental reimbursement packages together with the Medicare and Medicaid packages; the results of senior housing development and improvement, decrease business occupancy (together with as a result of pandemic), and elevated competitors; circumstances of housing markets, regulatory modifications, acts of nature, and the results of local weather change in geographic areas the place the Firm is concentrated; terminations of the Firm’s resident agreements and vacancies within the residing areas it leases, together with as a result of pandemic; failure to take care of the safety and performance of the Firm’s data programs, to forestall a cybersecurity assault or breach, or to adjust to relevant privateness and client safety legal guidelines, together with HIPAA; the Firm’s means to finish its capital expenditures in accordance with its plans; the Firm’s means to determine and pursue improvement, funding, and acquisition alternatives and its means to efficiently combine acquisitions; competitors for the acquisition of property; the Firm’s means to finish pending or anticipated disposition, acquisition, or different transactions on agreed upon phrases or in any respect, together with in respect of the satisfaction of closing circumstances, the danger that regulatory approvals are usually not obtained or are topic to unanticipated circumstances, and uncertainties as to the timing of closing, and the Firm’s means to determine and pursue any such alternatives sooner or later; dangers associated to the implementation of the Firm’s technique, together with initiatives undertaken to execute on the Firm’s strategic priorities and their impact on its outcomes; limits on the Firm’s means to make use of internet working loss carryovers to scale back future tax funds; delays in acquiring regulatory approvals; disruptions within the monetary markets or decreases within the appraised values or efficiency of the Firm’s communities that have an effect on the Firm’s means to acquire financing or prolong or refinance debt because it matures and the Firm’s financing prices; the Firm’s means to generate adequate money stream to cowl required curiosity, principal, and long-term lease funds and to fund its deliberate capital initiatives; the impact of the Firm’s non-compliance with any of its debt or lease agreements (together with the monetary covenants contained therein), together with the danger of lenders or lessors declaring a cross default within the occasion of the Firm’s non-compliance with any such agreements and the danger of lack of the Firm’s property securing leases and indebtedness on account of any ensuing lease terminations and foreclosures actions; the impact of the Firm’s indebtedness and long-term leases on the Firm’s liquidity and its means to function its enterprise; will increase in market rates of interest that enhance the prices of the Firm’s debt obligations; the Firm’s means to acquire further capital on phrases acceptable to it; departures of key officers and potential disruption attributable to modifications in administration; elevated competitors for, or a scarcity of, associates (together with as a result of pandemic or normal labor market circumstances), wage pressures ensuing from elevated competitors, low unemployment ranges, minimal wage will increase and modifications in time beyond regulation legal guidelines, and union exercise; environmental contamination at any of the Firm’s communities; failure to adjust to present environmental legal guidelines; an hostile dedication or decision of complaints filed in opposition to the Firm, together with putative class motion complaints; the price and issue of complying with rising and evolving regulation; prices to reply to, and hostile determinations ensuing from, authorities evaluations, audits and investigations; modifications in, or its failure to adjust to, employment-related legal guidelines and rules; unanticipated prices to adjust to legislative or regulatory developments; the dangers related to present international financial circumstances and normal financial components reminiscent of inflation, the patron worth index, commodity prices, gasoline and different power prices, competitors within the labor market, prices of salaries, wages, advantages, and insurance coverage, rates of interest, and tax charges; the affect of seasonal contagious sickness or an outbreak of COVID-19 or different contagious illness within the markets by which the Firm operates; actions of activist stockholders, together with a proxy contest; in addition to different dangers detailed on occasion within the Firm’s filings with the Securities and Trade Fee, together with these set forth within the Firm’s Annual Report on Type 10-Okay and Quarterly Reviews on Type 10-Q. When contemplating forward-looking statements, it’s best to take note the danger components and different cautionary statements in such SEC filings. Readers are cautioned to not place undue reliance on any of those forward-looking statements, which mirror administration’s views as of the date of this press launch. Brookdale can not assure future outcomes, ranges of exercise, efficiency or achievements, and, besides as required by legislation, it expressly disclaims any obligation to launch publicly any updates or revisions to any forward-looking statements to mirror any change in its expectations with regard thereto or change in occasions, circumstances or circumstances on which any assertion is predicated.
Non-GAAP Monetary Measures
This launch refers back to the monetary measure Adjusted EBITDA, which isn’t calculated in accordance with U.S. usually accepted accounting ideas (“GAAP”). Shows of this non-GAAP monetary measure are supposed to help buyers in higher understanding the components and traits affecting the Firm’s efficiency. Nonetheless, buyers shouldn’t think about this non-GAAP monetary measure as an alternative to monetary measures decided in accordance with GAAP, together with internet earnings (loss). The Firm cautions buyers that quantities introduced in accordance with the Firm’s definitions of a non-GAAP monetary measure will not be akin to comparable measures disclosed by different firms as a result of not all firms calculate non-GAAP measures in the identical method. The Firm urges buyers to evaluate the next definition of this non-GAAP monetary measure.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP efficiency measure that the Firm defines as internet earnings (loss) excluding: profit/provision for earnings taxes, non-operating earnings/expense gadgets, and depreciation and amortization; and additional adjusted to exclude earnings/expense related to non-cash, non-operational, transactional, value discount, or organizational restructuring gadgets that administration doesn’t think about as a part of the Firm’s underlying core working efficiency and that administration believes affect the comparability of efficiency between durations. For the interval referenced herein, such different gadgets embrace non-cash impairment costs, achieve/loss on facility working lease termination, working lease expense adjustment, non-cash stock-based compensation expense, and transaction and organizational restructuring prices. Transaction prices embrace these instantly associated to acquisition, disposition, financing, and leasing exercise, and are primarily comprised of authorized, finance, consulting, skilled charges, and different third-party prices. Organizational restructuring prices embrace these associated to the Firm’s efforts to scale back normal and administrative expense and its senior management modifications, together with severance.
The Firm believes that presentation of Adjusted EBITDA as a efficiency measure is helpful to buyers as a result of (i) it is likely one of the metrics utilized by the Firm’s administration for budgeting and different planning functions, to evaluate the Firm’s historic and potential core working efficiency, and to make day-to-day working selections; (ii) it supplies an evaluation of operational components that administration can affect within the short-term, specifically revenues and the controllable value construction of the group, by eliminating gadgets associated to the Firm’s financing and capital construction and different gadgets that administration doesn’t think about as a part of the Firm’s underlying core working efficiency and that administration believes affect the comparability of efficiency between durations; and (iii) the Firm believes that this measure is utilized by analysis analysts and buyers to guage the Firm’s working outcomes and to worth firms in its business.
Adjusted EBITDA has materials limitations as a efficiency measure, together with: (i) excluded curiosity and earnings tax are essential to function the Firm’s enterprise underneath its present financing and capital construction; (ii) excluded depreciation, amortization and impairment costs might signify the damage and tear and/or discount in worth of the Firm’s communities, goodwill, and different property and could also be indicative of future wants for capital expenditures; and (iii) the Firm might incur earnings/expense much like these for which changes are made, reminiscent of achieve/loss on sale of property, facility working lease termination, or debt modification and extinguishment, non-cash stock-based compensation expense, and transaction and different prices, and such earnings/expense might considerably have an effect on the Firm’s working outcomes.
About Brookdale Senior Dwelling
Brookdale Senior Dwelling Inc. is the nation’s premier operator of senior residing communities. The Firm is dedicated to its mission of enriching the lives of the folks it serves with compassion, respect, excellence and integrity. The Firm operates impartial residing, assisted residing, reminiscence care, and persevering with care retirement communities. By way of its complete community, Brookdale helps to supply seniors with care and companies in an setting that appears like dwelling. The Firm’s experience in healthcare, hospitality and actual property supplies residents with alternatives to enhance wellness, pursue passions and keep linked with mates and family members. Brookdale operates and manages 673 communities in 41 states as of December 31, 2022, with the power to serve greater than 60,000 residents. Brookdale’s inventory trades on the New York Inventory Trade underneath the ticker image BKD. For extra data, go to brookdale.com or join with Brookdale on Fb or Twitter.
SOURCE Brookdale Senior Dwelling Inc.