NASHVILLE, Tenn., Feb. 22,
2018 /PRNewswire/ -- Brookdale Senior Living Inc. (NYSE: BKD)
("Brookdale" or the "Company") announced results for the quarter
and year ended December 31, 2017.
Fourth Quarter 2017 Highlights:
- Average occupancy increased 40 basis points sequentially from
the third quarter to the fourth quarter to 85.2%.
- Revenue per Occupied Unit (RevPOR) increased 3.1% in the fourth
quarter compared to the prior year quarter.
- The turnover of its key community leadership declined by 19% in
the fourth quarter versus the prior year quarter.
- The Company entered into a multi-part agreement with HCP, Inc.
("HCP") to terminate leases, sell joint venture interests, acquire
select communities and restructure management rights.
The Company reported net income of $15.0
million for the fourth quarter of 2017 compared to net loss
of $268.6 million for the fourth
quarter of 2016. Net income for the fourth quarter of 2017
included a $64.0 million deferred
income tax benefit, which included the impact of the Tax Cuts and
Jobs Act ("Tax Act"). Fourth quarter 2017 net cash provided
by operating activities was $83.6
million compared with $88.5
million for the fourth quarter of 2016. Adjusted
EBITDA was $138.1 million for the
fourth quarter of 2017 compared to $184.2
million for the fourth quarter of 2016. Excluding
transaction and strategic project costs of $10.9 million, Adjusted EBITDA for the fourth
quarter of 2017 was $149.0
million. Adjusted Free Cash Flow for the fourth
quarter of 2017 was negative $11.7
million compared to positive $33.2
million for the fourth quarter of 2016. Brookdale's
proportionate share of Adjusted Free Cash Flow of unconsolidated
ventures for the fourth quarter of 2017 was $12.0 million compared to $6.8 million for the fourth quarter of
2016. Adjusted EBITDA and Adjusted Free Cash Flow are
financial measures not calculated in accordance with GAAP.
See "Reconciliation of Non-GAAP Financial Measures" below for the
Company's definitions of such financial measures, reconciliations
of such measures to their most comparable GAAP financial measures
and other important information regarding the use of the Company's
non-GAAP financial measures.
The Company reported a net loss of $571.6
million for the year ended December 31, 2017 compared
to a net loss of $404.6 million for
the year ended December 31, 2016.
Full year 2017 net cash provided by operating activities was
$366.7 million compared with
$365.7 million for the full year
2016. Adjusted EBITDA was $638.6
million for 2017 compared to $770.8
million for 2016. Excluding transaction and strategic
project costs of $25.4 million,
Adjusted EBITDA for 2017 was $664.0
million. Adjusted Free Cash Flow for 2017 was
$97.6 million compared to
$153.8 million for 2016.
Brookdale's proportionate share of Adjusted Free Cash Flow of
unconsolidated ventures for 2017 was $35.4
million compared to $32.6
million for 2016.
Fourth Quarter Financial Results
Total revenue for the fourth quarter of 2017 was $1.17 billion compared to $1.21 billion for the prior year
period. Resident fees were $906.3
million for the fourth quarter of 2017, a decrease of 10.3%
from the fourth quarter of 2016. The decrease in resident
fees was primarily a result of the disposition of 127 communities
(11,935 units) through asset sales and lease terminations since the
beginning of the prior year period. Fourth quarter monthly
RevPAR for the consolidated senior housing portfolio was
$3,904, an increase of 2.1% from the
fourth quarter of 2016, driven by a year-over-year increase in
RevPOR of 3.1%, which was partially offset by a decrease in
weighted average unit occupancy of 80 basis points. Weighted
average unit occupancy for the consolidated senior housing
portfolio increased 40 basis points to 85.2% from the third quarter
of 2017, and is 60 basis points above its lowpoint in the second
quarter of the year. See "Definitions of RevPAR and RevPOR" below
for the Company's definitions of such terms.
Facility operating expenses for the fourth quarter of 2017 were
$634.6 million, a decrease of 7.5%
from the fourth quarter of 2016. The decrease in facility
operating expenses was primarily due to disposition activity,
through asset sales and lease terminations. Combined segment
operating margin was 31.4% for the fourth quarter of 2017 versus
33.4% for the fourth quarter of 2016.
Net income for the fourth quarter of 2017 was $15.0 million, versus a net loss of $268.6 million for the fourth quarter of 2016.
Net income for the fourth quarter of 2017 included a deferred
income tax benefit of $64.0 million,
including a benefit of $112.4 million
resulting from the re-measurement of the Company's net deferred tax
liability due to the impact of the Tax Act.
Weighted average shares outstanding were 186.4 million for the
fourth quarter of 2017 compared with weighted average shares
outstanding of 185.7 million for the prior year quarter.
Net cash provided by operating activities for the fourth quarter
of 2017 was $83.6 million, a decrease
of $4.9 million, or 5.5%, compared
with the fourth quarter of 2016, driven primarily by disposition
activity, which was partially offset by an increase in facility
operating expenses at the communities operated during both full
periods.
Annual Financial Results
Total revenue for the full year 2017 was $4.75 billion, a decrease of 4.6% from the prior
year. Net loss for the full year 2017 was $571.6 million, versus a net loss of $404.6 million for the full year 2016. Full
year 2017 net cash provided by operating activities was
$366.7 million, an increase of
$0.9 million, or 0.3% compared with
the prior year.
The Company's full year 2017 results compared to the Company's
most recent 2017 full-year guidance were:
(in
millions)
|
|
Full Year 2017
Guidance as of
November 6, 2017
|
|
Actual
Full
Year
2017
|
Adjusted EBITDA,
excluding transaction and strategic project costs
|
|
$650
|
to
|
$670
|
|
$664
|
|
|
|
|
|
|
|
Adjusted Free Cash
Flow
|
|
$80
|
to
|
$100
|
|
$98
|
|
|
|
|
|
|
|
The Company's
proportionate share of Adjusted Free Cash Flow of
unconsolidated ventures
|
|
$28
|
to
|
$32
|
|
$35
|
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted Free Cash Flow are financial
measures that are not calculated in accordance with GAAP. The
Company strongly urges you to review the information under
"Reconciliation of Non-GAAP Financial Measures" below for the
Company's definitions of each of these non-GAAP financial measures,
a detailed description of why the Company believes such measures
are useful, the limitations of each measure, and a reconciliation
of Adjusted EBITDA from the Company's net income (loss), a
reconciliation of the Company's Adjusted Free Cash Flow from the
Company's net cash provided by (used in) operating activities, and
a reconciliation of the Company's proportionate share of Adjusted
Free Cash Flow of unconsolidated ventures from such ventures' net
cash provided by (used in) operating activities. The Company
changed its definition and calculation of Adjusted EBITDA when it
reported results for the second quarter of 2016. Prior period
amounts of Adjusted EBITDA presented herein have been recast to
conform to the new definition. See "Reconciliation of Non-GAAP
Financial Measures" below for a description of such changes to the
definition of Adjusted EBITDA.
Adjusted EBITDA decreased 25.0% to $138.1
million for the fourth quarter of 2017, compared to
$184.2 million for the fourth quarter
of 2016. Excluding transaction and strategic project costs of
$10.9 million for the fourth quarter
of 2017 and integration, transaction, transaction-related and
strategic project costs of $10.1
million for the fourth quarter of 2016, Adjusted EBITDA for
the fourth quarter of 2017 was $149.0
million, compared to $194.2
million for the fourth quarter of 2016. The decrease in
Adjusted EBITDA was primarily due to disposition activity, through
asset sales and lease terminations, since the beginning of the
prior year period. Additionally, increases in community labor
expenses and insurance expense at the communities operated during
both full periods contributed to the decline in Adjusted EBITDA.
Adjusted EBITDA for the fourth quarter of 2017 includes
approximately $1.9 million of
facility operating expenses related to the Company's response to
Hurricanes Harvey and Irma and wildfires in California.
The Company's Adjusted Free Cash Flow for the fourth quarter of
2017 decreased $44.8 million to
negative $11.7 million compared to
positive $33.2 million for the fourth
quarter of 2016. Included in fourth quarter 2017 Adjusted Free
Cash Flow is $71.9 million of
non-development capital expenditures, net of reimbursements and
$1.9 million of facility operating
expenses related to natural disasters. The Company's proportionate
share of Adjusted Free Cash Flow of unconsolidated ventures was
$12.0 million for the fourth quarter
of 2017 compared with $6.8 million
for the prior year period.
Operating Activities
The Company reports information on five segments. Three
segments (Retirement Centers, Assisted Living and CCRCs-Rental)
constitute the Company's consolidated senior housing
portfolio. The Ancillary Services segment includes the
Company's home health, hospice and outpatient therapy
services. The Management Services segment includes the
services provided to unconsolidated communities that are operated
under management agreements.
Senior Housing
Revenue for the consolidated senior housing portfolio was
$792.8 million for the fourth quarter
of 2017, a decrease of 11.5% from the fourth quarter of
2016. Facility operating expenses were $533.9 million for the fourth quarter of 2017, a
decrease of 9.3% from the fourth quarter of 2016. Operating
income for the consolidated senior housing portfolio decreased by
15.8% from the fourth quarter of 2016, to $258.9 million for the fourth quarter of
2017. The decreases in resident fees and facility operating
expenses during the three months ended December 31, 2017 were
primarily due to disposition activity, through asset sales and
lease terminations, of 127 communities (11,935 units) since the
beginning of the prior year period.
Same community revenue for the consolidated senior housing
portfolio for the fourth quarter of 2017 increased 0.5% from the
corresponding period in 2016. Same community RevPAR increased
0.6% in the fourth quarter of 2017 from the fourth quarter of 2016,
driven by an increase in same community RevPOR of 1.9%, which was
partially offset by a decline in weighted average unit occupancy of
110 basis points. Consolidated same community facility operating
expenses, excluding costs related to natural disasters, for the
fourth quarter of 2017 increased by 4.6% over the fourth quarter of
2016, driven primarily by an increase in community labor expenses
arising from wage rate increases. As a result, same community
operating income for the consolidated senior housing portfolio for
the fourth quarter of 2017 decreased by 6.6% from the fourth
quarter of 2016, to $252.7 million.
Same community weighted average unit occupancy for the consolidated
senior housing portfolio increased 10 basis points to 85.6%
sequentially from the third quarter of 2017.
Brookdale Ancillary Services
Revenue for the Company's ancillary services segment decreased
$0.5 million, or 0.5%, to
$113.5 million for the fourth quarter
of 2017 compared to the prior year fourth quarter. Facility
operating expenses for the fourth quarter of 2017 increased
$3.0 million, or 3.0%, over the
fourth quarter of 2016, primarily due to increases in salaries and
wages arising from wage rate increases. As a result, ancillary
services operating income for the fourth quarter of 2017 was
$12.8 million, a decrease of 21.5%
versus the fourth quarter of 2016, with operating margin decreasing
to 11.3% from 14.3% for the fourth quarter of 2016. The decrease in
ancillary services operating income was primarily the result of
lower Medicare reimbursement rates for home health services and
increases in salaries and wages arising from wage rate increases.
Despite an increase over the prior year fourth quarter, the
Company's home health average daily census was negatively impacted
by interruptions to service by Hurricane Irma in Florida.
Liquidity
Total liquidity for the Company was $872.6 million at December 31, 2017, an
increase of $288.6 million from
December 31, 2016. Liquidity at December 31, 2017
included $222.6 million of
unrestricted cash and cash equivalents, $291.8 million of marketable securities, and
$358.2 million of availability on the
Company's secured credit facility.
As of December 31, 2017, the current portion of long-term
debt includes the $309.9 million
carrying amount of the Company's 2.75% convertible senior notes due
June 15, 2018. The Company estimates
that it will have sufficient liquidity to settle the outstanding
principal amount of $316.3 million of
the convertible notes in cash at maturity.
Update on Previously Announced Transactions with HCP
The Company has continued to make progress on transactions with
HCP announced in November 2017 and
November 2016.
During the quarter, the Company terminated the leases for 26
communities (2,854 units). These lease terminations included
the termination of 23 triple-net leases with HCP, which completed
the transactions contemplated by the agreement with HCP announced
in November 2016. As a result of
these lease terminations, the Company recognized a gain on sale of
assets of $11.4 million for the
recognition of deferred gains from previous sale-leaseback
transactions.
As announced in November 2017, the
Company amended and restated triple-net leases covering
substantially all of the communities leased from HCP into a Master
Lease and entered into a definitive agreement with HCP for a
multi-part transaction that includes the following components:
- Lease Terminations - The parties agreed to terminate
triple-net leases on 35 communities (3,331 units).
- Sale of Venture Interests - HCP agreed to acquire
Brookdale's 10% ownership interest in two existing unconsolidated
RIDEA ventures between the companies, for which Brookdale provided
management services to 59 communities (9,585 units).
- Acquisition of Six Communities - Brookdale agreed to
acquire four of the venture communities (787 units) and to acquire
two of the triple-net-leased communities (208 units).
- Restructuring of Management Rights - The parties agreed
that Brookdale will retain management of 18 of the venture
communities (3,276 units) with an extended term to expire in 2030,
and will terminate management of 37 of the venture communities
(5,522 units).
In December 2017, the Company
completed the sale of its 10% ownership interest in one of the
RIDEA ventures for $32.1 million and
recognized a $7.2 million gain on the
sale. In January 2018, the
Company completed the acquisition of one community from HCP.
Brookdale expects the disposition of its ownership interest in the
second unconsolidated RIDEA venture and its acquisition of the
remaining five communities to occur in the next three months, and
expects the terminations of triple net leases on 33 communities and
management agreements on 37 communities to occur in stages
throughout 2018. The closings of the various transactions are
subject to the satisfaction of various closing conditions,
including (where applicable) the receipt of regulatory approvals.
However, there can be no assurance that the transactions will close
or, if they do, when the actual closings will occur.
Assets Held for Sale
As of December 31, 2017, 15 communities (1,508 units) were
classified as assets held for sale with a carrying value of
$106.4 million, and $30.1 million of associated mortgage debt, which
is included in the current portion of long-term debt. The
closings of the sales of the 15 communities held for sale are
subject to receipt of regulatory approvals and satisfaction of
other customary closing conditions, and are expected to occur
during the next 12 months; however, there can be no assurance that
the transactions will close or, if they do, when the actual
closings will occur.
Supplemental Information
The Company will post on the Investor Relations section of the
Company's website at www.brookdale.com supplemental information
relating to the Company's fourth quarter 2017 results. This
information will also be furnished in a Form 8-K to be filed with
the SEC. An updated Investor Presentation will also be
posted.
Earnings Conference Call
Brookdale's management will conduct a conference call to review
the financial results of its fourth quarter and full year ended
December 31, 2017 on February 22, 2018 at 9:00 AM ET. The conference call can be
accessed by dialing (866) 900-2996 (from within the U.S.) or (706)
643-2685 (from outside of the U.S.) ten minutes prior to the
scheduled start and referencing the "Brookdale Senior Living Fourth
Quarter Earnings Call."
A webcast of the conference call will be available to the public
on a listen-only basis at www.brookdale.com. Please allow
extra time prior to the call to visit the site and download the
necessary software required to listen to the internet
broadcast. A replay of the webcast will be available through
the website for three months following the call.
For those who cannot listen to the live call, a replay will be
available until 11:59 PM ET on
March 7, 2018 by dialing (855)
859-2056 (from within the U.S.) or (404) 537-3406 (from
outside of the U.S.) and referencing access code "9439517". A
copy of this earnings release is posted on the Investor Relations
page of the Brookdale website (www.brookdale.com).
About Brookdale Senior Living
Brookdale Senior Living Inc. is the leading operator of senior
living communities throughout the United States. The Company
is committed to providing senior living solutions primarily within
properties that are designed, purpose-built and operated to provide
the highest-quality service, care and living accommodations for
residents. Brookdale operates independent living, assisted
living, and dementia-care communities and continuing care
retirement centers, with approximately 1,023 communities in 46
states and the ability to serve approximately 101,000 residents as
of December 31, 2017. Through its ancillary services
program, the Company also offers a range of home health, hospice
and outpatient therapy services. Brookdale's stock is traded
on the New York Stock Exchange under the ticker symbol BKD.
Definitions of RevPAR and RevPOR
RevPAR, or average monthly senior housing resident fee revenues
per available unit, is defined by the Company as resident fee
revenues, excluding Brookdale Ancillary Services segment revenue
and entrance fee amortization, for the corresponding portfolio for
the period, divided by the weighted average number of available
units in the corresponding portfolio for the period, divided by the
number of months in the period.
RevPOR, or average monthly senior housing resident fee revenues
per occupied unit, is defined by the Company as resident fee
revenues, excluding Brookdale Ancillary Services segment revenue
and entrance fee amortization, for the corresponding portfolio for
the period, divided by the weighted average number of occupied
units in the corresponding portfolio for the period, divided by the
number of months in the period.
Safe Harbor
Certain statements in this press release and the associated
earnings conference call may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are subject to various
risks and uncertainties and include all statements that are not
historical statements of fact and those regarding our intent,
belief or expectations, including, but not limited to, statements
relating to our redefined strategy, including initiatives
undertaken to execute on our strategic priorities and their
intended effect on our results; our operational, sales, marketing
and branding initiatives; our expectations regarding the economy,
the senior living industry, senior housing construction, supply and
competition, occupancy and pricing and the demand for senior
housing; our expectations regarding our revenue, cash flow,
operating income, expenses, capital expenditures, including
expected levels and reimbursements and the timing thereof,
expansion, redevelopment and repositioning opportunities, including
Program Max opportunities, and their projected costs, cost savings
and synergies, and our liquidity and leverage; our plans and
expectations with respect to acquisition, disposition, development,
lease restructuring and termination, financing, re-financing and
venture transactions and opportunities (including assets held for
sale, the pending transactions with HCP, Inc. and our plans to
market in 2018 and sell approximately 30 owned communities),
including the timing thereof and their effects on our results; our
expectations regarding taxes, capital deployment and returns on
invested capital, Adjusted EBITDA and Adjusted Free Cash Flow (as
those terms are defined herein); our expectations regarding returns
to stockholders, our share repurchase program and the payment of
dividends; our ability to secure financing or repay, replace or
extend existing debt at or prior to maturity; our ability to remain
in compliance with all of our debt and lease agreements (including
the financial covenants contained therein); our expectations
regarding changes in government reimbursement programs and their
effect on our results; our plans to expand our offering of
ancillary services; and our ability to anticipate, manage and
address industry trends and their effect on our business.
Forward-looking statements are generally identifiable by use of
forward-looking terminology such as "may," "will," "should,"
"could," "would," "potential," "intend," "expect," "endeavor,"
"seek," "anticipate," "estimate," "overestimate," "underestimate,"
"believe," "project," "predict," "continue," "plan," "target" or
other similar words or expressions. These forward looking
statements are based on certain assumptions and expectations, and
our ability to predict results or the actual effect of future plans
or strategies is inherently uncertain. Although we believe that
expectations reflected in any forward-looking statements are based
on reasonable assumptions, we can give no assurance that our
expectations will be attained and actual results and performance
could differ materially from those projected. Factors which could
have a material adverse effect on our operations and future
prospects or which could cause events or circumstances to differ
from the forward-looking statements include, but are not limited
to, the risk associated with the current global economic situation
and its impact upon capital markets and liquidity; changes in
governmental reimbursement programs; the risk of overbuilding, new
supply and new competition; our inability to extend (or refinance)
debt (including our credit and letter of credit facilities and our
outstanding convertible notes) as it matures; the risk that we may
not be able to satisfy the conditions precedent to exercising the
extension options associated with certain of our debt agreements;
events which adversely affect the ability of seniors to afford our
resident fees or entrance fees; the conditions of housing markets
in certain geographic areas; our ability to generate sufficient
cash flow to cover required interest and long-term lease payments
and to fund our planned capital projects; risks related to the
implementation of our redefined strategy, including initiatives
undertaken to execute on our strategic priorities and their effect
on our results; the effect of our indebtedness and long-term leases
on our liquidity; the effect of our non-compliance with any of our
debt or lease agreements (including the financial covenants
contained therein) and the risk of lenders or lessors declaring a
cross default in the event of our non-compliance with any such
agreements; the risk of loss of property pursuant to our mortgage
debt and long-term lease obligations; the possibilities that
changes in the capital markets, including changes in interest rates
and/or credit spreads, or other factors could make financing more
expensive or unavailable to us; our determination from time to time
to purchase any shares under our share repurchase program; our
ability to fund any repurchases; our ability to effectively manage
our growth; our ability to maintain consistent quality control;
delays in obtaining regulatory approvals; the risk that we may not
be able to expand, redevelop and reposition our communities in
accordance with our plans; our ability to complete acquisition,
disposition, lease restructuring and termination, financing,
re-financing and venture transactions (including assets held for
sale, the pending transactions with HCP, Inc. and our plans to
market in 2018 and sell approximately 30 owned communities) on
agreed upon terms or at all, including in respect of the
satisfaction of closing conditions, the risk that regulatory
approvals are not obtained or are subject to unanticipated
conditions, and uncertainties as to the timing of closing, and our
ability to identify and pursue any such opportunities in the
future; our ability to successfully integrate acquisitions;
competition for the acquisition of assets; our ability to obtain
additional capital on terms acceptable to us; a decrease in the
overall demand for senior housing; our vulnerability to economic
downturns; acts of nature in certain geographic areas; terminations
of our resident agreements and vacancies in the living spaces we
lease; early terminations or non-renewal of management agreements;
increased competition for skilled personnel; increased wage
pressure and union activity; departure of our key officers and
potential disruption caused by changes in management; increases in
market interest rates; environmental contamination at any of our
communities; failure to comply with existing environmental laws; an
adverse determination or resolution of complaints filed against us;
the cost and difficulty of complying with increasing and evolving
regulation; unanticipated costs to comply with legislative or
regulatory developments, including requirements to obtain emergency
power generators for our communities; as well as other risks
detailed from time to time in our filings with the Securities and
Exchange Commission, including those set forth under "Item 1A. Risk
Factors" contained in our Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q. When considering forward-looking
statements, you should keep in mind the risk factors and other
cautionary statements in such SEC filings. Readers are cautioned
not to place undue reliance on any of these forward-looking
statements, which reflect our management's views as of the date of
this press release and/or associated earnings call. We cannot
guarantee future results, levels of activity, performance or
achievements, and we expressly disclaim any obligation to release
publicly any updates or revisions to any of these forward-looking
statements to reflect any change in our expectations with regard
thereto or change in events, conditions or circumstances on which
any statement is based.
Condensed
Consolidated Statements of Operations
|
|
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
(in thousands,
except per share data)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenue
|
|
|
|
|
|
|
|
Resident
fees
|
$
|
906,251
|
|
|
$
|
1,010,074
|
|
|
$
|
3,780,140
|
|
|
$
|
4,168,621
|
|
Management
fees
|
19,371
|
|
|
20,264
|
|
|
75,845
|
|
|
70,762
|
|
Reimbursed costs
incurred on behalf of managed
communities
|
240,268
|
|
|
178,530
|
|
|
891,131
|
|
|
737,597
|
|
Total
revenue
|
1,165,890
|
|
|
1,208,868
|
|
|
4,747,116
|
|
|
4,976,980
|
|
|
|
|
|
|
|
|
|
Expense
|
|
|
|
|
|
|
|
Facility operating
expense (excluding depreciation and
amortization of $104,312, $117,721, $430,288,
and
$469,388, respectively)
|
634,554
|
|
|
686,176
|
|
|
2,602,155
|
|
|
2,799,402
|
|
General and
administrative expense (including non-cash
stock-based compensation expense of $5,285,
$5,067,
$27,832 and $32,285, respectively)
|
59,017
|
|
|
66,668
|
|
|
255,446
|
|
|
313,409
|
|
Transaction
costs
|
9,649
|
|
|
2,040
|
|
|
22,573
|
|
|
3,990
|
|
Facility lease
expense
|
81,787
|
|
|
91,745
|
|
|
339,721
|
|
|
373,635
|
|
Depreciation and
amortization
|
116,054
|
|
|
129,088
|
|
|
482,077
|
|
|
520,402
|
|
Goodwill and asset
impairment
|
18,966
|
|
|
221,877
|
|
|
409,782
|
|
|
248,515
|
|
Loss on facility
lease termination
|
2,970
|
|
|
11,113
|
|
|
14,276
|
|
|
11,113
|
|
Costs incurred on
behalf of managed communities
|
240,268
|
|
|
178,530
|
|
|
891,131
|
|
|
737,597
|
|
Total operating
expense
|
1,163,265
|
|
|
1,387,237
|
|
|
5,017,161
|
|
|
5,008,063
|
|
Income (loss) from
operations
|
2,625
|
|
|
(178,369)
|
|
|
(270,045)
|
|
|
(31,083)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
1,903
|
|
|
694
|
|
|
4,623
|
|
|
2,933
|
|
Interest
expense:
|
|
|
|
|
|
|
|
Debt
|
(46,163)
|
|
|
(42,605)
|
|
|
(172,635)
|
|
|
(174,027)
|
|
Capital and financing
lease obligations
|
(26,578)
|
|
|
(50,451)
|
|
|
(140,664)
|
|
|
(202,012)
|
|
Amortization of
deferred financing costs and debt premium
(discount)
|
(3,854)
|
|
|
(2,422)
|
|
|
(12,681)
|
|
|
(9,400)
|
|
Change in fair value
of derivatives
|
(15)
|
|
|
(150)
|
|
|
(174)
|
|
|
(178)
|
|
Debt modification and
extinguishment costs
|
(526)
|
|
|
(5,930)
|
|
|
(12,409)
|
|
|
(9,170)
|
|
Equity in (loss)
earnings of unconsolidated ventures
|
(4,516)
|
|
|
1,182
|
|
|
(14,827)
|
|
|
1,660
|
|
Gain on sale of
assets, net
|
20,656
|
|
|
5,092
|
|
|
19,273
|
|
|
7,218
|
|
Other non-operating
income
|
4,899
|
|
|
3,790
|
|
|
11,418
|
|
|
14,801
|
|
Income (loss) before
income taxes
|
(51,569)
|
|
|
(269,169)
|
|
|
(588,121)
|
|
|
(399,258)
|
|
Benefit (provision)
for income taxes
|
66,590
|
|
|
569
|
|
|
16,515
|
|
|
(5,378)
|
|
Net income
(loss)
|
15,021
|
|
|
(268,600)
|
|
|
(571,606)
|
|
|
(404,636)
|
|
Net (income) loss
attributable to noncontrolling interest
|
36
|
|
|
113
|
|
|
187
|
|
|
239
|
|
Net income (loss)
attributable to Brookdale Senior Living Inc.
common stockholders
|
$
|
15,057
|
|
|
$
|
(268,487)
|
|
|
$
|
(571,419)
|
|
|
$
|
(404,397)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income (loss) per share attributable to
Brookdale Senior Living Inc. common
stockholders
|
$
|
0.08
|
|
|
$
|
(1.45)
|
|
|
$
|
(3.07)
|
|
|
$
|
(2.18)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in computing basic net income
(loss) per share
|
186,412
|
|
|
185,684
|
|
|
186,155
|
|
|
185,653
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in computing diluted net income
(loss) per share
|
186,585
|
|
|
185,684
|
|
|
186,155
|
|
|
185,653
|
|
Condensed
Consolidated Balance Sheets
|
|
(in
thousands)
|
December 31,
2017
|
|
December 31,
2016
|
Cash and cash
equivalents
|
$
|
222,647
|
|
|
$
|
216,397
|
|
Marketable
securities
|
291,796
|
|
|
—
|
|
Cash and escrow
deposits – restricted
|
37,189
|
|
|
32,864
|
|
Accounts receivable,
net
|
128,961
|
|
|
141,705
|
|
Assets held for
sale
|
106,435
|
|
|
97,843
|
|
Prepaid expenses and
other current assets, net
|
114,844
|
|
|
130,695
|
|
Total current
assets
|
901,872
|
|
|
619,504
|
|
Property, plant and
equipment and leasehold intangibles, net
|
5,852,145
|
|
|
7,379,305
|
|
Other assets,
net
|
921,432
|
|
|
1,218,878
|
|
Total
assets
|
$
|
7,675,449
|
|
|
$
|
9,217,687
|
|
|
|
|
|
Current
liabilities
|
$
|
1,095,776
|
|
|
$
|
731,142
|
|
Long-term debt, less
current portion
|
3,375,324
|
|
|
3,413,998
|
|
Capital and financing
lease obligations, less current portion
|
1,164,466
|
|
|
2,415,914
|
|
Other
liabilities
|
509,592
|
|
|
578,901
|
|
Total
liabilities
|
6,145,158
|
|
|
7,139,955
|
|
Total Brookdale
Senior Living Inc. stockholders' equity
|
1,530,728
|
|
|
2,077,982
|
|
Noncontrolling
interest
|
(437)
|
|
|
(250)
|
|
Total
equity
|
1,530,291
|
|
|
2,077,732
|
|
Total liabilities and
equity
|
$
|
7,675,449
|
|
|
$
|
9,217,687
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
Years Ended
December 31,
|
(in
thousands)
|
2017
|
|
2016
|
Cash Flows from
Operating Activities
|
|
|
|
Net income
(loss)
|
$
|
(571,606)
|
|
|
$
|
(404,636)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Loss on
extinguishment of debt, net
|
714
|
|
|
1,251
|
|
Depreciation and
amortization, net
|
494,758
|
|
|
529,802
|
|
Goodwill and asset
impairment
|
409,782
|
|
|
248,515
|
|
Equity in loss
(earnings) of unconsolidated ventures
|
14,827
|
|
|
(1,660)
|
|
Distributions from
unconsolidated ventures from cumulative share of net
earnings
|
8,258
|
|
|
23,544
|
|
Amortization of
deferred gain
|
(4,366)
|
|
|
(4,372)
|
|
Amortization of
entrance fees
|
(2,901)
|
|
|
(4,195)
|
|
Proceeds from
deferred entrance fee revenue
|
5,712
|
|
|
13,980
|
|
Deferred income tax
(benefit) provision
|
(15,309)
|
|
|
3,248
|
|
Straight-line lease
(income) expense
|
(14,313)
|
|
|
767
|
|
Change in fair value
of derivatives
|
174
|
|
|
178
|
|
Gain on sale of
assets, net
|
(19,273)
|
|
|
(7,218)
|
|
Loss on facility
lease termination
|
14,276
|
|
|
—
|
|
Non-cash stock-based
compensation expense
|
27,832
|
|
|
32,285
|
|
Non-cash interest
expense on financing lease obligations
|
17,744
|
|
|
26,496
|
|
Amortization of
(above) below market lease, net
|
(6,677)
|
|
|
(6,864)
|
|
Other
|
(8,819)
|
|
|
(9,137)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
12,747
|
|
|
1,581
|
|
Prepaid expenses and
other assets, net
|
21,970
|
|
|
2,954
|
|
Accounts payable and
accrued expenses
|
(4,527)
|
|
|
(83,248)
|
|
Tenant refundable
fees and security deposits
|
(422)
|
|
|
(839)
|
|
Deferred
revenue
|
(13,917)
|
|
|
3,300
|
|
Net cash provided by
operating activities
|
366,664
|
|
|
365,732
|
|
Cash Flows from
Investing Activities
|
|
|
|
Change in lease
security deposits and lease acquisition deposits, net
|
(2,113)
|
|
|
(2,225)
|
|
Change in cash and
escrow deposits — restricted
|
1,026
|
|
|
5,027
|
|
Purchase of
marketable securities, net
|
(291,187)
|
|
|
—
|
|
Additions to
property, plant and equipment and leasehold intangibles,
net
|
(213,887)
|
|
|
(333,647)
|
|
Acquisition of
assets, net of related payables and cash received
|
(5,196)
|
|
|
(12,157)
|
|
Investment in
unconsolidated ventures
|
(199,017)
|
|
|
(13,377)
|
|
Distributions
received from unconsolidated ventures
|
29,035
|
|
|
218,973
|
|
Proceeds from sale of
assets, net
|
70,507
|
|
|
297,932
|
|
Property insurance
proceeds
|
8,550
|
|
|
9,137
|
|
Other
|
975
|
|
|
7,162
|
|
Net cash (used in)
provided by investing activities
|
(601,307)
|
|
|
176,825
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
Proceeds from
debt
|
1,307,205
|
|
|
387,348
|
|
Repayment of debt and
capital and financing lease obligations
|
(1,054,161)
|
|
|
(469,309)
|
|
Proceeds from line of
credit
|
100,000
|
|
|
1,276,500
|
|
Repayment of line of
credit
|
(100,000)
|
|
|
(1,586,500)
|
|
Purchase of treasury
stock
|
—
|
|
|
(9,640)
|
|
Payment of financing
costs, net of related payables
|
(5,574)
|
|
|
(2,938)
|
|
Proceeds from
refundable entrance fees, net of refunds
|
(2,179)
|
|
|
(901)
|
|
Payment on lease
termination
|
(552)
|
|
|
(9,250)
|
|
Payments of employee
taxes for withheld shares
|
(5,889)
|
|
|
(1,640)
|
|
Other
|
2,043
|
|
|
2,141
|
|
Net cash provided by
(used in) financing activities
|
240,893
|
|
|
(414,189)
|
|
Net increase in cash
and cash equivalents
|
6,250
|
|
|
128,368
|
|
Cash and cash
equivalents at beginning of year
|
216,397
|
|
|
88,029
|
|
Cash and cash
equivalents at end of year
|
$
|
222,647
|
|
|
$
|
216,397
|
|
Reconciliation of Non-GAAP Financial
Measures
This earnings release contains financial measures utilized by
management to evaluate our operating performance and liquidity that
are not calculated in accordance with U.S. generally accepted
accounting principles ("GAAP"). Each of these measures,
Adjusted EBITDA and Adjusted Free Cash Flow, should not be
considered in isolation from or as superior to or as a substitute
for net income (loss), income (loss) from operations, net cash
provided by (used in) operating activities, or other financial
measures determined in accordance with GAAP. We use these
non-GAAP financial measures to supplement our GAAP results in order
to provide a more complete understanding of the factors and trends
affecting our business. We strongly urge you to review the
reconciliations of Adjusted EBITDA from the Company's net income
(loss), the Company's Adjusted Free Cash Flow from the Company's
net cash provided by (used in) operating activities, and the
Company's proportionate share of Adjusted Free Cash Flow of
unconsolidated ventures from such ventures' net cash provided by
(used in) operating activities, along with our consolidated
financial statements included herein. We also strongly urge
you not to rely on any single financial measure to evaluate our
business. We caution investors that amounts presented in
accordance with our definitions of Adjusted EBITDA and Adjusted
Free Cash Flow may not be comparable to similar measures disclosed
by other companies, because not all companies calculate these
non-GAAP measures in the same manner.
Adjusted EBITDA
We define Adjusted EBITDA as net income (loss) before:
provision (benefit) for income taxes; non-operating (income)
expense items; depreciation and amortization (including non-cash
impairment charges); (gain) loss on sale or acquisition of
communities (including gain (loss) on facility lease termination);
straight-line lease expense (income), net of amortization of
(above) below market rents; amortization of deferred gain; non-cash
stock-based compensation expense; and change in future service
obligation.
We changed our definition and calculation of Adjusted EBITDA
when we reported results for the second quarter of 2016.
Prior period amounts of Adjusted EBITDA presented herein have been
recast to conform to the new definition. The current definition of
Adjusted EBITDA reflects the removal of the following adjustments
to our net income (loss) that were used in the former definition:
the addition of our proportionate share of Cash From Facility
Operations of unconsolidated ventures and our entrance fee
receipts, net of refunds, and the subtraction of our amortization
of entrance fees.
We use Adjusted EBITDA to assess our overall operating
performance. We believe this non-GAAP measure, as we have defined
it, is helpful in identifying trends in our day-to-day performance
because the items excluded have little or no significance on our
day-to-day operations. This measure provides an assessment of
controllable expenses and affords management the ability to make
decisions which are expected to facilitate meeting current
operating goals as well as achieve optimal operating performance.
It provides an indicator for management to determine if adjustments
to current spending decisions are needed.
Adjusted EBITDA provides us with a measure of operating
performance, independent of items that are beyond the control of
management in the short-term, such as the change in the liability
for the obligation to provide future services under existing
lifecare contracts, depreciation and amortization (including
non-cash impairment charges), straight-line lease expense (income),
taxation and interest expense associated with our capital
structure. This metric measures our operating performance based on
operational factors that management can impact in the short-term,
namely revenues and the cost structure or expenses of the
organization. Adjusted EBITDA is one of the metrics used by senior
management and the board of directors to review the operating
performance of the business on a regular basis. We believe that
Adjusted EBITDA is also used by research analysts and investors to
evaluate the performance of and value companies in our
industry.
Adjusted EBITDA has limitations as an analytical tool. Material
limitations in making the adjustments to our net income (loss) to
calculate Adjusted EBITDA, and using this non-GAAP financial
measure as compared to GAAP net income (loss), include:
- the cash portion of interest expense, income tax (benefit)
provision and non-recurring charges related to gain (loss) on sale
of communities (or facility lease termination) and extinguishment
of debt activities generally represent charges (gains), which may
significantly affect our operating results; and
- depreciation and amortization and asset impairment represent
the wear and tear and/or reduction in value of our communities and
other assets, which affects the services we provide to residents
and may be indicative of future needs for capital
expenditures.
We believe Adjusted EBITDA is useful to investors in evaluating
our operating performance because it is helpful in identifying
trends in our day-to-day performance since the items excluded have
little or no significance to our day-to-day operations and it
provides an assessment of our revenue and expense management.
The table below reconciles Adjusted EBITDA from net income
(loss) for the three and twelve months ended December 31, 2017
and December 31, 2016:
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
(in
thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income
(loss)
|
$
|
15,021
|
|
|
$
|
(268,600)
|
|
|
$
|
(571,606)
|
|
|
$
|
(404,636)
|
|
(Benefit) provision
for income taxes
|
(66,590)
|
|
|
(569)
|
|
|
(16,515)
|
|
|
5,378
|
|
Equity in loss
(earnings) of unconsolidated ventures
|
4,516
|
|
|
(1,182)
|
|
|
14,827
|
|
|
(1,660)
|
|
Debt modification and
extinguishment costs
|
526
|
|
|
5,930
|
|
|
12,409
|
|
|
9,170
|
|
Gain on sale of
assets, net
|
(20,656)
|
|
|
(5,092)
|
|
|
(19,273)
|
|
|
(7,218)
|
|
Other non-operating
income
|
(4,899)
|
|
|
(3,790)
|
|
|
(11,418)
|
|
|
(14,801)
|
|
Interest
expense
|
76,610
|
|
|
95,628
|
|
|
326,154
|
|
|
385,617
|
|
Interest
income
|
(1,903)
|
|
|
(694)
|
|
|
(4,623)
|
|
|
(2,933)
|
|
Income (loss) from
operations
|
2,625
|
|
|
(178,369)
|
|
|
(270,045)
|
|
|
(31,083)
|
|
Depreciation and
amortization
|
116,054
|
|
|
129,088
|
|
|
482,077
|
|
|
520,402
|
|
Goodwill and asset
impairment
|
18,966
|
|
|
221,877
|
|
|
409,782
|
|
|
248,515
|
|
Loss on facility
lease termination
|
2,970
|
|
|
11,113
|
|
|
14,276
|
|
|
11,113
|
|
Straight-line lease
(income) expense
|
(5,109)
|
|
|
(1,786)
|
|
|
(14,313)
|
|
|
767
|
|
Amortization of
(above) below market lease, net
|
(1,586)
|
|
|
(1,699)
|
|
|
(6,677)
|
|
|
(6,864)
|
|
Amortization of
deferred gain
|
(1,089)
|
|
|
(1,093)
|
|
|
(4,366)
|
|
|
(4,372)
|
|
Non-cash stock-based
compensation expense
|
5,285
|
|
|
5,067
|
|
|
27,832
|
|
|
32,285
|
|
Adjusted EBITDA
(1)
|
$
|
138,116
|
|
|
$
|
184,198
|
|
|
$
|
638,566
|
|
|
$
|
770,763
|
|
(1)
|
For the three and
twelve months ended December 31, 2017, the calculation of
Adjusted EBITDA includes $10.9 million and $25.4 million of
transaction and strategic project costs, respectively. For the
three and twelve months ended December 31, 2016, the
calculation of Adjusted EBITDA includes $10.1 million and $54.2
million of integration, transaction, transaction-related and
strategic project costs, respectively. Integration costs include
transition costs associated with organizational restructuring (such
as severance and retention payments and recruiting expenses), third
party consulting expenses directly related to the integration of
acquired communities (in areas such as cost savings and synergy
realization, branding and technology and systems work), and
internal costs such as training, travel and labor, reflecting time
spent by Company personnel on integration activities and projects.
Transaction and transaction-related costs include third party costs
directly related to acquisition and disposition activity, community
financing and leasing activity, our assessment of options and
alternatives to enhance stockholder value and corporate capital
structure assessment activities (including stockholder relations
advisory matters), and are primarily comprised of legal, finance,
consulting, professional fees and other third party
costs. Strategic project costs include costs associated with
certain strategic projects related to refining the Company's
strategy, building out enterprise-wide capabilities (including the
EMR roll-out project) and reducing costs and achieving synergies by
capitalizing on scale.
|
Adjusted Free Cash Flow
We define Adjusted Free Cash Flow as net cash provided by (used
in) operating activities before: changes in operating assets
and liabilities; gain (loss) on facility lease termination; and
distributions from unconsolidated ventures from cumulative share of
net earnings; plus: proceeds from refundable entrance fees,
net of refunds; and property insurance proceeds; less: lease
financing debt amortization and Non-Development CapEx.
Non-Development CapEx is comprised of corporate and community-level
capital expenditures, including those related to maintenance,
renovations, upgrades and other major building infrastructure
projects for our communities. Non-Development CapEx does not
include capital expenditures for community expansions and major
community redevelopment and repositioning projects, including our
Program Max initiative, and the development of new
communities. Amounts of Non-Development CapEx are presented
net of lessor reimbursements received or anticipated to be received
in the calculation of Adjusted Free Cash Flow.
Our proportionate share of Adjusted Free Cash Flow of
unconsolidated ventures is calculated based on our equity ownership
percentage and in a manner consistent with the definition of
Adjusted Free Cash Flow for our consolidated entities. Our
investments in our unconsolidated ventures are accounted for under
the equity method of accounting and, therefore, our proportionate
share of Adjusted Free Cash Flow of unconsolidated ventures does
not represent cash available to our consolidated business except to
the extent it is distributed to us.
Accounting Standards Update 2016-15, Statement of Cash Flows
- Classification of Certain Cash Receipts and Cash Payments
("ASU 2016-15") will be effective for the Company on January 1, 2018 and will be applied
retrospectively for all periods presented. Among other
things, ASU 2016-15 provides that debt prepayment and
extinguishment costs will be classified within financing
activities. We have identified $11.7
million and $7.9 million of
cash paid for debt modification and extinguishment costs for the
years ended December 31, 2017 and
2016, respectively, which we have determined will be
retrospectively classified as cash flows from financing activities
and will result in an increase to the amount of net cash provided
by operating activities for such years. We do not anticipate
changing our definition of Adjusted Free Cash Flow upon our
adoption of ASU 2016-15. As a result, we anticipate that in
future presentations of Adjusted Free Cash Flow that accompany 2018
financial results, the amount of Adjusted Free Cash Flow for the
years ended December 31, 2017 and
2016 will be increased by $11.7
million and $7.9 million,
respectively.
We use Adjusted Free Cash Flow to assess our overall liquidity.
This measure provides an assessment of controllable expenses and
affords management the ability to make decisions which are expected
to facilitate meeting current financial and liquidity goals as well
as to achieve optimal financial performance. It provides an
indicator for management to determine if adjustments to current
spending decisions are needed.
Adjusted Free Cash Flow measures our liquidity based on
operational factors that management can impact in the short-term,
namely the cost structure or expenses of the organization. Adjusted
Free Cash Flow is one of the metrics used by our senior management
and board of directors (i) to review our ability to service our
outstanding indebtedness, including our credit facilities, (ii) to
review our ability to pay dividends to stockholders or engage in
share repurchases, (iii) to review our ability to make capital
expenditures, (iv) for other corporate planning purposes and/or (v)
in making compensation determinations for certain of our associates
(including our named executive officers).
Adjusted Free Cash Flow has limitations as an analytical tool.
Material limitations in making the adjustments to our net cash
provided by (used in) operating activities to calculate Adjusted
Free Cash Flow, and using this non-GAAP financial measure as
compared to GAAP net cash provided by (used in) operating
activities, include:
- Adjusted Free Cash Flow does not represent cash available for
dividends or discretionary expenditures, since we have mandatory
debt service requirements and other non-discretionary expenditures
not reflected in this measure; and
- the cash portion of non-recurring charges related to gain
(loss) on lease termination and extinguishment of debt activities
generally represent charges (gains), which may significantly affect
our financial results.
In addition, our proportionate share of Adjusted Free Cash Flow
of unconsolidated ventures has limitations as an analytical tool
because such measure does not represent cash available directly for
use by our consolidated business except to the extent actually
distributed to us, and we do not have control, or we share control
in determining, the timing and amount of distributions from our
unconsolidated ventures and, therefore, we may never receive such
cash.
We believe Adjusted Free Cash Flow is useful to investors
because it assists their ability to meaningfully evaluate (1) our
ability to service our outstanding indebtedness, including our
credit facilities and capital and financing leases, (2) our ability
to pay dividends to stockholders or engage in share repurchases,
(3) our ability to make capital expenditures, and (4) the
underlying value of our assets, including our interests in real
estate.
We believe presentation of our proportionate share of Adjusted
Free Cash Flow of unconsolidated ventures is useful to investors
since such measure reflects the cash generated by the operating
activities of the unconsolidated ventures for the reporting period
and, to the extent such cash is not distributed to us, it generally
represents cash used or to be used by the ventures for the
repayment of debt, investing in expansions or acquisitions, reserve
requirements, or other corporate uses by such ventures, and such
uses reduce our potential need to make capital contributions to the
ventures of our proportionate share of cash needed for such
items.
The table below reconciles the Company's Adjusted Free Cash Flow
from net cash provided by (used in) operating activities for the
three and twelve months ended December 31, 2017 and
December 31, 2016:
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
(in
thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net cash provided
by operating activities
|
$
|
83,555
|
|
|
$
|
88,451
|
|
|
$
|
366,664
|
|
|
$
|
365,732
|
|
Net cash (used in)
provided by investing activities
|
(71,589)
|
|
|
231,199
|
|
|
(601,307)
|
|
|
176,825
|
|
Net cash provided by
(used in) financing activities
|
(80,873)
|
|
|
(177,437)
|
|
|
240,893
|
|
|
(414,189)
|
|
Net increase
(decrease) in cash and cash equivalents
|
$
|
(68,907)
|
|
|
$
|
142,213
|
|
|
$
|
6,250
|
|
|
$
|
128,368
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
$
|
83,555
|
|
|
$
|
88,451
|
|
|
$
|
366,664
|
|
|
$
|
365,732
|
|
Changes in operating
assets and liabilities
|
(1,941)
|
|
|
13,725
|
|
|
(15,851)
|
|
|
76,252
|
|
Proceeds from
refundable entrance fees, net of refunds
|
62
|
|
|
6
|
|
|
(2,179)
|
|
|
(901)
|
|
Lease financing debt
amortization
|
(18,650)
|
|
|
(16,409)
|
|
|
(64,906)
|
|
|
(63,267)
|
|
Loss on facility
lease termination
|
—
|
|
|
11,113
|
|
|
—
|
|
|
11,113
|
|
Distributions from
unconsolidated ventures from cumulative
share of net earnings
|
(6,893)
|
|
|
(17,144)
|
|
|
(8,258)
|
|
|
(23,544)
|
|
Non-development
capital expenditures, net
|
(71,908)
|
|
|
(49,363)
|
|
|
(186,467)
|
|
|
(220,767)
|
|
Property insurance
proceeds
|
4,120
|
|
|
2,777
|
|
|
8,550
|
|
|
9,137
|
|
Adjusted Free Cash
Flow
|
$
|
(11,655)
|
|
|
$
|
33,156
|
|
|
$
|
97,553
|
|
|
$
|
153,755
|
|
The table below reconciles the Company's proportionate share of
Adjusted Free Cash Flow of unconsolidated ventures from net cash
provided by (used in) operating activities of such unconsolidated
ventures for the three and twelve months ended December 31,
2017 and December 31, 2016. For purposes of this
presentation, amounts for each line item represent the aggregate
amounts of such line items for all of our unconsolidated
ventures.
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
(in
thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net cash provided
by operating activities
|
$
|
61,910
|
|
|
$
|
40,994
|
|
|
$
|
269,755
|
|
|
$
|
198,524
|
|
Net cash used in
investing activities
|
(28,593)
|
|
|
5,556
|
|
|
(1,267,525)
|
|
|
(118,935)
|
|
Net cash (used in)
provided by financing activities
|
(52,315)
|
|
|
(55,554)
|
|
|
1,031,064
|
|
|
(88,262)
|
|
Net increase in cash
and cash equivalents
|
$
|
(18,998)
|
|
|
$
|
(9,004)
|
|
|
$
|
33,294
|
|
|
$
|
(8,673)
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
$
|
61,910
|
|
|
$
|
40,994
|
|
|
$
|
269,755
|
|
|
$
|
198,524
|
|
Changes in operating
assets and liabilities
|
6,904
|
|
|
8,617
|
|
|
(13,184)
|
|
|
(2,508)
|
|
Proceeds from
refundable entrance fees, net of refunds
|
(1,664)
|
|
|
(4,931)
|
|
|
(17,366)
|
|
|
(7,675)
|
|
Non-development
capital expenditures, net
|
(31,196)
|
|
|
(26,232)
|
|
|
(100,621)
|
|
|
(98,305)
|
|
Property insurance
proceeds
|
584
|
|
|
—
|
|
|
2,425
|
|
|
—
|
|
Adjusted Free Cash
Flow of unconsolidated ventures
|
$
|
36,538
|
|
|
$
|
18,448
|
|
|
$
|
141,009
|
|
|
$
|
90,036
|
|
|
|
|
|
|
|
|
|
Brookdale weighted
average ownership percentage
|
32.9
|
%
|
|
36.7
|
%
|
|
25.1
|
%
|
|
36.2
|
%
|
Brookdale's
proportionate share of Adjusted Free Cash
Flow of unconsolidated ventures
|
$
|
12,037
|
|
|
$
|
6,763
|
|
|
$
|
35,416
|
|
|
$
|
32,630
|
|
View original
content:http://www.prnewswire.com/news-releases/brookdale-announces-fourth-quarter-and-full-year-2017-results-300602541.html
SOURCE Brookdale Senior Living Inc.