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Jun 30, 2020
Brookdale Q2 2020 Earnings Report
Brookdale's Q2 2020 results were announced, highlighting efforts to protect residents and associates during the COVID-19 pandemic, along with a focus on improving long-term cash flow through operational and transactional enhancements.
Key Takeaways
Brookdale Senior Living announced Q2 2020 results, reporting a net loss of $118.4 million. The company ended the quarter with $600 million in liquidity, including $562 million in cash and cash equivalents and marketable securities. They also completed baseline testing of residents and associates at all of the Company’s communities. The company estimates that the COVID-19 pandemic and the Company's response efforts resulted in $63.6 million of lost resident fee revenue.
Ended the quarter with $600 million of liquidity, including $562 million of cash and cash equivalents and marketable securities.
Entered into definitive agreements to restructure a portfolio of 120 communities leased from Ventas, Inc. to improve cash flow through permanent rent reductions and eliminate financial covenants.
Completed baseline testing of residents and associates at all 700-plus of the Company’s communities, across 44 states.
Move-ins and census grew within the quarter for both Senior Housing and Health Care Services.
Revenue by Segment
Forward Guidance
Given the unprecedented nature of COVID-19 and rapidly changing developments, the Company will continue to be agile and adjust its local community response to help protect its residents, associates, and patients.
Positive Outlook
- Communities transitioning to welcoming visitors and move-ins are likely to increase marketing investments to drive future resident awareness and referrals. As of July 31, 2020, 85% of communities were accepting move-ins.
- Company expects gradual improvement in move-ins and occupancy as the severity and breadth of the pandemic dissipates in key markets within Texas, California, Florida, Colorado, and North Carolina.
- Company increased its supply of PPE, which is expected to last for multiple months.
- Company expects gradual improvement in census as the severity and breadth of the pandemic dissipates in key markets within Florida, Texas, and North Carolina.
- During July 2020, the Company applied for additional grants pursuant to the Emergency Fund’s Medicaid and CHIP allocation and expects to receive up to approximately $50 million of grants from this allocation.
Challenges Ahead
- Communities impacted by COVID infections are likely to incur increased costs for the use of a higher volume of PPE and medical supplies and incur higher labor and other related expenses.
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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