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Mar 31, 2020
Brookdale Q1 2020 Earnings Report
Brookdale announced results, highlighting same community revenue growth and the sale of interest in unconsolidated Entry Fee CCRC communities.
Key Takeaways
Brookdale's Q1 2020 results showed same community revenue growth of 2.0% year over year. The company completed the sale of its interest in 14 unconsolidated Entry Fee CCRC communities, receiving $100.0 million. The pandemic impacted operations in the second half of March, leading to restricted community access.
Same community revenue increased by 2.0% year-over-year and 2.4% sequentially.
Completed the sale of the company's interest in 14 unconsolidated Entry Fee CCRC communities, receiving $100.0 million from the termination of related management agreements.
Ended the quarter with $500.7 million in cash and cash equivalents and marketable securities, and refinanced the majority of the company's 2020 debt maturities.
Restricted community access to protect residents, which resulted in fewer move-ins during the second half of March, partially offset by fewer move-outs.
Revenue by Segment
Forward Guidance
Due to the uncertainties associated with the COVID-19 pandemic, the Company withdrew its previously provided full-year 2020 guidance.
Positive Outlook
- The Company continues to serve and care for seniors through the pandemic.
- The Company’s preparation and response efforts center on infection prevention and control protocols.
- The Company has redesigned its sales process to engage in virtual tours and video engagement.
- The Company has enhanced and adapted its marketing programs to address the stay-at-home environment.
- The Company has sought to strengthen its relationships with referral partners.
Challenges Ahead
- The pandemic and related infection prevention and control protocols within senior living communities have significantly disrupted demand for senior living communities and the sales process.
- The Company believes potential residents and their families are more cautious regarding moving into senior living communities while the pandemic continues, and such caution may persist for some time.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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