Q3 2024 Brookdale Senior Living Inc Earnings Call Transcript
Key Points
- Brookdale Senior Living Inc (BKD) achieved 80 basis points of sequential quarterly occupancy growth, surpassing the broader industry average.
- The company generated $14 million of adjusted free cash flow in the third quarter, marking a significant improvement over the prior year.
- Brookdale more than doubled the number of communities operating with its Brookdale Health Plus Program, receiving third-party validation for improved clinical outcomes.
- The company executed purchase agreements for accretive acquisitions of 41 currently leased communities, expected to increase adjusted EBITDA by approximately $33 million annually.
- Brookdale successfully refinanced the majority of its debt maturities without extension options through 2026, enhancing financial stability.
- Third quarter occupancy growth, while better than historical seasonal trends, was not as robust as desired, with move-ins remaining below the prior year.
- Continued softness from two large paid third-party referral sources impacted move-ins, despite efforts to redeploy marketing spend to internal channels.
- The company faced approximately $3 million in hurricane-related expenses in the fourth quarter, impacting financial results.
- Sequential revpar declined moderately due to newer residents moving in with lower acuity and therefore lower care rates than existing residents.
- Brookdale experienced higher estimated insurance expenses and outsourced data center costs, impacting operating expenses.
Thank you for standing by. My name is Bailey and I will be your conference operator today.
At this time. I would like to welcome everyone to the Brookdale Senior Living Q3 earnings call, all lines have been placed on mute to prevent any background noise.
After the speaker's remarks, there will be a question and answer session.
If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question again. Press star and one I would now like to turn the call over to Jessica Hazel, Vice President of Investor Relations. You may begin.
Thank you and good morning. I'd like to welcome you to the third quarter, 2024 earnings call for Brookdale Senior Living. Joining us today are Cindy Baier, our President and Chief Executive Officer and Don Cau, our executive Vice President and Chief Financial Officer.
All statements today which are not historical facts may be deemed to be
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