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Brookdale Senior Living Inc. Reports Operating Results (10-Q)

August 09, 2012 | About:
10qk

10qk

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Brookdale Senior Living Inc. (BKD) filed Quarterly Report for the period ended 2012-06-30.

Brookdale Senior Living, Inc. has a market cap of $2.03 billion; its shares were traded at around $18.46 with and P/S ratio of 0.8. Brookdale Senior Living, Inc. had an annual average earning growth of 6.3% over the past 5 years.

Highlight of Business Operations:

During the six months ended June 30, 2012, we experienced an increase in our total revenues, primarily due to the addition of leased and managed communities from the Horizon Bay and HCP transactions in the third quarter of 2011, along with increases in occupancy and average monthly revenue per unit, including an increase in our ancillary services revenue. Total revenues for the six months ended June 30, 2012 increased to $1.4 billion, an increase of $203.6 million, or 17.4%, over our total revenues for the six months ended June 30, 2011. Resident and management fee revenue for the six months ended June 30, 2012 increased $79.3 million, or 7.0%, from the six months ended June 30, 2011. Revenue from reimbursed costs incurred on behalf of managed communities

increase in occupancy and a 3.6% increase in consolidated units operated. During the current period, revenues grew 2.4% at the 535 communities we operated during both periods with a 1.1% increase in the average monthly revenue per unit (excluding amortization of entrance fees in both instances). Occupancy increased 1.1% in these communities period over period.

General and administrative expense increased $12.4 million, or 36.8%, primarily as a result of an increase in integration, transaction-related and electronic medical records ("EMR") roll-out costs, an increase in the number of employees in connection with the Horizon Bay and HCP transactions that occurred during the third quarter of 2011 and an increase in non-cash stock-based compensation expense. General and administrative expense as a percentage of total revenue, including revenue generated by the communities we manage and excluding non-cash stock-based compensation expense and integration, transaction-related and EMR roll-out costs, was 4.2% and 4.7% for the three months ended June 30, 2012 and 2011, respectively, calculated as follows (dollars in thousands):

General and administrative expense increased $23.8 million, or 35.4%, primarily as a result of an increase in the number of employees in connection with the Horizon Bay and HCP transactions that occurred during the third quarter of 2011, an increase in integration, transaction-related and EMR roll-out costs, and an increase in non-cash stock-based compensation expense. General and administrative expense as a percentage of total revenue, including revenue generated by the communities we manage and excluding non-cash stock-based compensation expense and integration, transaction-related and EMR roll-out costs, was 4.4% and 4.7% for the six months ended June 30, 2012 and 2011, respectively, calculated as follows (dollars in thousands):

At June 30, 2012, we had $697.5 million of negative working capital, which includes the classification of $247.4 million of refundable entrance fees and $6.6 million in tenant deposits as current liabilities. Based upon our historical operating experience, we anticipate that only 9.0% to 12.0% of those entrance fee liabilities will actually come due, and be required to be settled in cash, during the next 12 months. We expect that any entrance fee liabilities due within the next 12 months will be fully offset by the proceeds generated by subsequent entrance fee sales. Entrance fee sales, net of refunds paid, provided $14.3 million and $21.2 million of cash for the three and six months ended June 30, 2012, respectively.

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