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Jun 30, 2021
Brookdale Q2 2021 Earnings Report
Brookdale's financial performance was reported for Q2 2021, showing improvements in occupancy and revenue per occupied unit, offset by decreased revenue and adjusted EBITDA.
Key Takeaways
Brookdale Senior Living announced its Q2 2021 results, which included sequential growth in weighted average occupancy and a year-over-year increase in revenue per occupied unit. The company's liquidity position was strengthened by the sale of its Health Care Services segment. However, the company experienced a decrease in resident fee revenue and adjusted EBITDA compared to the previous year.
Weighted average occupancy grew 90 basis points sequentially.
Monthly weighted average occupancy has increased for five consecutive months beginning in March.
Revenue per occupied unit (RevPOR) increased 4.2% year-over-year.
Liquidity position strengthened by over $300 million due to the Health Care Services segment sale.
Revenue by Segment
Forward Guidance
Brookdale anticipates sequential occupancy growth to accelerate in Q3 2021. Pandemic labor pressure and seasonally higher labor costs are expected to continue. Non-development capital expenditures are projected to be approximately $140 million for the full year 2021. The company also expects to pay deferred payroll taxes and recoup Medicare advanced payments.
Positive Outlook
- Sequential occupancy growth expected to accelerate in the third quarter.
- Company expects to continue to publish monthly occupancy until it returns to providing financial guidance.
- Focus on rebuilding occupancy lost due to the pandemic.
- All communities were open for visitors, new resident move-ins, and prospective residents as of July 31, 2021.
- Company achieved five consecutive months of weighted average consolidated senior housing occupancy growth on a sequential basis.
Challenges Ahead
- Similar pandemic labor pressure is expected to continue.
- Seasonally higher labor costs are anticipated in the third quarter.
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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