NASHVILLE, Tenn., Nov. 6, 2017 /PRNewswire/ -- Brookdale
Senior Living Inc. (NYSE: BKD) ("Brookdale" or the "Company")
reported a GAAP net loss of $413.9
million for the third quarter of 2017 compared to
$51.7 million for the third quarter
of 2016. Third quarter 2017 net cash provided by operating
activities was $83.2 million compared
to $99.4 million in the third quarter
of 2016.
Adjusted EBITDA was $141.8 million
for the third quarter of 2017 compared to $202.3 million for the third quarter of
2016. Excluding transaction and strategic project costs of
$2.8 million, Adjusted EBITDA for the
third quarter of 2017 was $144.7
million. Adjusted Free Cash Flow for the third quarter
of 2017 was $5.8 million compared to
$47.8 million in the third quarter of
2016. Brookdale's proportionate share of Adjusted Free Cash
Flow of unconsolidated ventures for the third quarter of 2017 was
$6.7 million compared to $7.5 million in the third 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.
Financial results in the quarter were impacted by dispositions
since the beginning of the prior year quarter, non-cash impairment
charges to goodwill and assets and natural disasters.
Andy Smith, Brookdale's President
and CEO, said, "In the third quarter, we saw signs that our
foundational initiatives are producing positive results. Key
leadership turnover decreased materially and our customer
satisfaction benchmark improved nicely. These led to our best
third quarter net move-in/move-out ratio in recent years and
increased occupancy each month during the quarter. Even so, we will
continue to experience the impact of intense competition and labor
cost pressures through 2018."
Mr. Smith continued, "As one outgrowth of both our ongoing
strategic review process and our portfolio optimization initiative,
we are excited about the opportunities provided by our recently
announced agreement with HCP. It continues our initiatives to
rationalize our portfolio, simplify our business, and reduce lease
liability. It also increases our flexibility and certainty
when pursing alternative pathways to realize the value of our
portfolio."
Third Quarter Financial Results
Total revenue for the third quarter of 2017 was $1.18 billion compared to $1.25 billion for the prior year
period. Resident fees were $922.9
million for the third quarter of 2017, a decrease of 11.5%
from the third quarter of 2016. The decrease in resident fees
was primarily a result of the disposition of 136 communities
(11,071 units) through asset sales and lease terminations since the
beginning of the prior year period. Third quarter monthly
RevPAR for the consolidated senior housing portfolio was
$3,860, an increase of 0.3% from the
third quarter of 2016, driven by a year-over-year increase in
RevPOR of 1.9% and a decrease in weighted average unit occupancy of
140 basis points. The sequential quarterly increase in weighted
average unit occupancy was 20 basis points. See "Definitions
of RevPAR and RevPOR" below for the Company's definitions of such
terms.
Facility operating expenses for the third quarter of 2017 were
$650.7 million, a decrease of 7.6%
from the third quarter of 2016. Combined segment operating
margin was 29.5% for the third quarter of 2017 versus 32.5% for the
third quarter of 2016. The decrease in facility operating
expenses was primarily due to disposition activity, through asset
sales and lease terminations.
GAAP net loss for the third quarter of 2017 included
$368.6 million of non-cash impairment
expense. The impairment charges consisted of $205.0 million of goodwill within the Assisted
Living segment, $149.9 million of
property, plant and equipment and leasehold intangibles for certain
communities, primarily within the Assisted Living segment, and
$13.7 million of intangible assets
for health care licenses within the Brookdale Ancillary Services
segment. The impairment charges were primarily driven by a
significant decline in the Company's stock price and market
capitalization for a sustained period, significant underperformance
relative to historical and projected operating results, and an
increased competitive environment in the senior living industry and
the home health industry in Florida. Weighted average shares outstanding
were 186.3 million for the third quarter of 2017 compared with
weighted average shares outstanding of 185.9 million for the prior
year quarter.
Net cash provided by operating activities for the third quarter
of 2017 was $83.2 million, a decrease
of $16.2 million, or 16.3%, compared
with the third quarter of 2016, driven primarily by disposition
activity and an increase in facility operating expenses at the
communities operated during both full periods.
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.
Adjusted EBITDA decreased 29.9% to $141.8
million in the third quarter of 2017, compared to
$202.3 million for the third quarter
of 2016. Excluding transaction and strategic project costs of
$2.8 million, Adjusted EBITDA for the
third quarter of 2017 was $144.7
million, versus $209.4 million
on a comparable basis for the third quarter of 2016. The decrease
in Adjusted EBITDA is 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 third quarter of 2017 includes a
negative impact of approximately $9.1
million as a result of Hurricanes Harvey and Irma. During
the three months ended September 30,
2017, the Company incurred $5.3
million of operating expenses related to hurricane response,
and issued $0.4 million in rent
credits. The Company also estimates that its ancillary
services revenue was negatively impacted by approximately
$3.4 million during the three months
ended September 30, 2017.
The Company's Adjusted Free Cash Flow for the third quarter of
2017 decreased $42.0 million to
$5.8 million compared to $47.8 million for the third quarter of
2016. Included in third quarter 2017 Adjusted Free Cash Flow
is $10.6 million of debt modification
costs related to the Company's debt refinancing transactions and
the $9.1 million impact of the
hurricanes. The Company's proportionate share of Adjusted Free Cash
Flow of unconsolidated ventures was $6.7
million for the third quarter of 2017 compared with
$7.5 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 outpatient therapy, home health and hospice
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
$812.3 million for the third quarter
of 2017, a decrease of 12.2% from the third quarter of
2016. Facility operating expenses were $549.9 million for the third quarter of 2017, a
decrease of 8.6% from the third quarter of 2016. Operating
income for the consolidated senior housing portfolio decreased by
19.0% from the third quarter of 2016, to $262.4 million for the third quarter of
2017. The decreases in resident fees and facility operating
expenses during the three months ended September 30, 2017 were
primarily due to disposition activity, through asset sales and
lease terminations, of 136 communities (11,071 units) since the
beginning of the prior year period. Additionally,
$5.2 million of hurricane and natural
disaster expenses were recognized in the third quarter of 2017 for
the consolidated senior housing portfolio, primarily including
increased operating costs relating to the hurricane response.
Same community revenue for the consolidated senior housing
portfolio for the three months ended September 30, 2017
decreased 0.4% from the corresponding period in 2016. Same
community RevPAR decreased 0.4% in the third quarter of 2017 from
the third quarter of 2016, driven by a decline in weighted average
unit occupancy of 160 basis points, which was partially offset by
an increase in same community RevPOR of 1.4%. Consolidated
same community facility operating expenses for the third quarter of
2017 increased by 4.6% over the third quarter of 2016, driven
primarily by an increase in community labor expenses arising from
wage rate increases and an $8.1
million increase in insurance expense related to positive
changes reflected in the third quarter of 2016 to estimates in
general liability and professional liability and workers
compensation expenses. As a result, same community operating
income for the consolidated senior housing portfolio for the third
quarter of 2017 decreased by 9.1% from the third quarter of 2016,
to $264.0 million.
Brookdale Ancillary Services
Revenue for the Company's ancillary services segment decreased
$6.7 million, or 5.7%, to
$110.6 million for the third quarter
of 2017 versus the prior year third quarter, and facility operating
expenses for the third quarter of 2017 decreased $1.9 million, or 1.8%, over the third quarter of
2016. As a result, ancillary services operating income for the
third quarter of 2017 was $9.8
million, a decrease of 32.8% versus the third quarter of
2016, with operating margin decreasing to 8.9% from a 12.5% margin
for the third quarter of 2016. The decrease in ancillary services
operating income was primarily the result of lower home health
volumes, primarily as a result of interruptions to service by the
hurricane in Florida, and lower
Medicare reimbursement rates.
Liquidity
Total liquidity for the Company was $899.4 million at September 30, 2017, an
increase of $353.4 million from
June 30, 2017. Liquidity at
September 30, 2017 included $291.6
million of unrestricted cash and cash equivalents,
$246.4 million of marketable
securities, and $361.5 million of
availability on the Company's secured credit facility.
Refinancing Activity
In July 2017, the Company
completed the refinancing of two existing loan portfolios, secured
by a non-recourse first mortgage on 22 communities. The
$221.3 million of proceeds from the
refinancing were utilized to pay off $188.1
million and $13.6 million of
mortgage debt maturing in April 2018
and January 2021, respectively. The
mortgage facility has a 10 year term, and 70% of the principal
amount bears interest at a fixed rate of 4.81% and the remaining
30% of the principal amount bears interest at a variable rate of
30-day LIBOR plus a margin of 244 basis points.
In August 2017, the Company
obtained $975.0 million of debt
secured by the non-recourse first mortgages on 51 communities.
Sixty percent of the principal amount bears interest at a fixed
rate, with one half of such amount bearing interest at 4.43% and
maturing in 2024 and the other one half bearing interest at 4.47%
and maturing in 2027. Forty percent of the principal amount
bears interest at a variable rate equal to the 30-day LIBOR plus a
margin of 241.5 basis points and matures in 2027. The $975.0 million of proceeds from the refinancing
were primarily utilized to repay $389.9
million and $228.9 million of
outstanding mortgage debt scheduled to mature in August 2018 and May
2023, respectively. The net proceeds from this
refinancing activity added to the Company's liquidity.
As of September 30, 2017, the current portion of long-term
debt includes the $306.1 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.
Portfolio Optimization Activity
The Company continues to actively explore opportunities to
optimize its portfolio through disposing of owned and leased
communities and restructuring leases in order to simplify and
streamline its business, to increase the quality and durability of
cash flow, and to reduce debt and lease leverage.
During the quarter, the Company terminated the leases for 9
communities (546 units), including two communities as part of the
planned termination of 25 triple net leases with HCP, Inc.
announced in November 2016. The Company's triple net lease
obligations with respect to the remaining 23 communities either
have been terminated, or are expected to be terminated, during the
three months ended December 31,
2017.
During the third quarter of 2017, the Company entered into an
agreement to sell one community. As of September 30,
2017, 15 communities (1,508 units) were classified as assets held
for sale with a carrying value of $106.4
million, and $50.4 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.
Subsequent to the end of the quarter, the Company entered into a
definitive agreement with HCP, Inc., as further described in the
press release issued on November 2,
2017, for a multi-part transaction that includes the
following components:
- Lease Terminations - Triple net leases on 34 communities
(3,170 units) will be terminated.
- Sale of Venture Interests - HCP will acquire Brookdale's
10% ownership interest in two existing unconsolidated RIDEA
ventures between the companies, for which Brookdale provides
management services to 59 communities (9,585 units).
- Acquisition of Six Communities - Brookdale will acquire
four of the venture communities (787 units) and will acquire two of
the triple-net-leased communities (208 units).
- Restructuring of Management Rights - 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).
Brookdale expects the disposition of its ownership interest in
the unconsolidated RIDEA ventures and its acquisition of the six
communities to occur in the next three to six months, and expects
the terminations of triple net leases and management agreements on
69 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.
Ongoing Strategic Review Process
As previously announced, Brookdale's Board and management team
are working with legal and financial advisors in a process of
exploring options and alternatives to create and enhance
stockholder value. That process is ongoing.
2017 Outlook
Based on results year-to-date and our forecast for the remainder
of the year, the Company adjusts its full year 2017 guidance for
Adjusted EBITDA, excluding transaction and strategic project costs,
to a range of $650 million to $670
million. In addition to the $12
million to $13 million impact from the hurricanes, the
Company expects continued competitive pressures for the remainder
of the year. The Company also adjusts its guidance for Adjusted
Free Cash Flow for 2017 to a range of $80
million to $100 million, reflecting the projected
$20 million to $21 million negative
impact from the hurricanes and the competitive environment. The
Company also narrows its full year 2017 guidance for the Company's
proportionate share of Adjusted Free Cash Flow of unconsolidated
ventures to a range of $28 million to $32
million.
The foregoing guidance excludes the potential impact of any
future acquisition, disposition, and portfolio optimization
activity other than the pending portfolio optimization transactions
described above. Reconciliations of the non-GAAP financial
measures included in the foregoing guidance to the most comparable
GAAP financial measures are not available without unreasonable
effort due to the inherent difficulty in forecasting the timing or
amounts of items required to reconcile Adjusted EBITDA, Adjusted
Free Cash Flow and the Company's proportionate share of Adjusted
Free Cash Flow of unconsolidated ventures from the Company's net
income (loss), the Company's net cash provided by (used in)
operating activities and the unconsolidated ventures' net cash
provided by (used in) operating activities, as applicable.
Variability in the timing or amounts of items required to reconcile
each measure may have a significant impact on the Company's future
GAAP results.
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 third quarter 2017 results. This
information will also be furnished in a Form 8-K to be filed with
the SEC. An updated Investor Presentation also will be posted.
Earnings Conference Call
Brookdale's management will conduct a conference call to review
the financial results of its third quarter ended September 30,
2017 on Tuesday, November 7, 2017 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 Third
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
November 20, 2017 by dialing (855)
859-2056 (from within the U.S.) or (404) 537-3406 (from
outside of the U.S.) and referencing access code "2578859". 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 1,031 communities in 46
states and the ability to serve approximately 101,000 residents as
of September 30, 2017. Through its ancillary services
program, the Company also offers a range of outpatient therapy,
home health and hospice 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 the creation and enhancement of stockholder value, the
evaluation of options and alternatives to create and enhance
stockholder value, our strategy, our operational, sales, marketing
and branding initiatives, our portfolio optimization and growth
initiatives and our expectations regarding their effect on our
results; 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, development, expansion,
renovation, 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 disposition, lease
restructuring, financing, re-financing and venture transactions and
opportunities (including assets currently held for sale and the
pending transactions with HCP, Inc.), 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 (therapy,
home health and hospice); our plans to acquire additional operating
companies, senior housing communities and ancillary services
companies (including home health agencies); our expectations
relating to the amount and timing of the financial impact of
Hurricanes Harvey and Irma and the California wildfires; 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 and new supply; 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 monthly 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; the effect of our
indebtedness and long-term leases on our liquidity; 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,
financing, re-financing and venture transactions (including assets
currently held for sale and the pending transactions with HCP,
Inc.) 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; 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; 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;
the risk that we could incur additional costs and experience other
financial impacts related to Hurricanes Harvey and Irma and the
California wildfires; as well as
other risks detailed from time to time in our filings with the
Securities and Exchange Commission, including 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
conference 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
|
(in thousands,
except per share data)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenue
|
|
|
|
|
|
|
|
Resident
fees
|
$
|
922,892
|
|
|
$
|
1,042,831
|
|
|
$
|
2,873,889
|
|
|
$
|
3,158,547
|
|
Management
fees
|
18,138
|
|
|
15,532
|
|
|
56,474
|
|
|
50,498
|
|
Reimbursed costs
incurred on behalf of managed
communities
|
236,958
|
|
|
187,763
|
|
|
650,863
|
|
|
559,067
|
|
Total
revenue
|
1,177,988
|
|
|
1,246,126
|
|
|
3,581,226
|
|
|
3,768,112
|
|
|
|
|
|
|
|
|
|
Expense
|
|
|
|
|
|
|
|
Facility operating
expense (excluding depreciation and
amortization of $105,424, $118,756, $325,976, and
$351,667, respectively)
|
650,654
|
|
|
704,221
|
|
|
1,967,601
|
|
|
2,113,226
|
|
General and
administrative expense (including non-cash
stock-based compensation expense of $7,527,
$8,455,
$22,547 and $27,218, respectively)
|
63,779
|
|
|
63,425
|
|
|
196,429
|
|
|
246,741
|
|
Transaction
costs
|
1,992
|
|
|
659
|
|
|
12,924
|
|
|
1,950
|
|
Facility lease
expense
|
84,437
|
|
|
92,519
|
|
|
257,934
|
|
|
281,890
|
|
Depreciation and
amortization
|
117,649
|
|
|
130,783
|
|
|
366,023
|
|
|
391,314
|
|
Goodwill and asset
impairment
|
368,551
|
|
|
19,111
|
|
|
390,816
|
|
|
26,638
|
|
Loss on facility
lease termination
|
4,938
|
|
|
—
|
|
|
11,306
|
|
|
—
|
|
Costs incurred on
behalf of managed communities
|
236,958
|
|
|
187,763
|
|
|
650,863
|
|
|
559,067
|
|
Total operating
expense
|
1,528,958
|
|
|
1,198,481
|
|
|
3,853,896
|
|
|
3,620,826
|
|
Income (loss) from
operations
|
(350,970)
|
|
|
47,645
|
|
|
(272,670)
|
|
|
147,286
|
|
|
|
|
|
|
|
|
|
Interest
income
|
1,285
|
|
|
809
|
|
|
2,720
|
|
|
2,239
|
|
Interest
expense:
|
|
|
|
|
|
|
|
Debt
|
(44,382)
|
|
|
(43,701)
|
|
|
(126,472)
|
|
|
(131,422)
|
|
Capital and financing
lease obligations
|
(31,999)
|
|
|
(50,401)
|
|
|
(114,086)
|
|
|
(151,561)
|
|
Amortization of
deferred financing costs and debt premium
(discount)
|
(3,544)
|
|
|
(2,380)
|
|
|
(8,827)
|
|
|
(6,978)
|
|
Change in fair value
of derivatives
|
(74)
|
|
|
—
|
|
|
(159)
|
|
|
(28)
|
|
Debt modification and
extinguishment costs
|
(11,129)
|
|
|
(1,944)
|
|
|
(11,883)
|
|
|
(3,240)
|
|
Equity in (loss)
earnings of unconsolidated ventures
|
(6,722)
|
|
|
(878)
|
|
|
(10,311)
|
|
|
478
|
|
(Loss) gain on sale
of assets, net
|
(233)
|
|
|
(425)
|
|
|
(1,383)
|
|
|
2,126
|
|
Other non-operating
income
|
2,621
|
|
|
3,706
|
|
|
6,519
|
|
|
11,011
|
|
Income (loss) before
income taxes
|
(445,147)
|
|
|
(47,569)
|
|
|
(536,552)
|
|
|
(130,089)
|
|
Benefit (provision)
for income taxes
|
31,218
|
|
|
(4,159)
|
|
|
(50,075)
|
|
|
(5,947)
|
|
Net income
(loss)
|
(413,929)
|
|
|
(51,728)
|
|
|
(586,627)
|
|
|
(136,036)
|
|
Net (income) loss
attributable to noncontrolling interest
|
44
|
|
|
43
|
|
|
151
|
|
|
126
|
|
Net income (loss)
attributable to Brookdale Senior Living
Inc. common stockholders
|
$
|
(413,885)
|
|
|
$
|
(51,685)
|
|
|
$
|
(586,476)
|
|
|
$
|
(135,910)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income (loss) per share attributable to
Brookdale Senior Living Inc. common stockholders
|
$
|
(2.22)
|
|
|
$
|
(0.28)
|
|
|
$
|
(3.15)
|
|
|
$
|
(0.73)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in computing basic and
diluted net income (loss) per share
|
186,298
|
|
|
185,946
|
|
|
186,068
|
|
|
185,641
|
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
September 30,
2017
|
|
December 31,
2016
|
Cash and cash
equivalents
|
$
|
291,554
|
|
|
$
|
216,397
|
|
Marketable
securities
|
246,376
|
|
|
—
|
|
Cash and escrow
deposits – restricted
|
43,724
|
|
|
32,864
|
|
Accounts receivable,
net
|
130,943
|
|
|
141,705
|
|
Assets held for
sale
|
106,435
|
|
|
97,843
|
|
Prepaid expenses and
other current assets, net
|
116,820
|
|
|
130,695
|
|
Total current
assets
|
935,852
|
|
|
619,504
|
|
Property, plant and
equipment and leasehold intangibles, net
|
6,180,376
|
|
|
7,379,305
|
|
Other assets,
net
|
975,938
|
|
|
1,218,878
|
|
Total
assets
|
$
|
8,092,166
|
|
|
$
|
9,217,687
|
|
|
|
|
|
Current
liabilities
|
$
|
1,128,396
|
|
|
$
|
731,142
|
|
Long-term debt, less
current portion
|
3,384,211
|
|
|
3,413,998
|
|
Capital and financing
lease obligations, less current portion
|
1,484,652
|
|
|
2,415,914
|
|
Other
liabilities
|
585,221
|
|
|
578,901
|
|
Total
liabilities
|
6,582,480
|
|
|
7,139,955
|
|
Total Brookdale
Senior Living Inc. stockholders' equity
|
1,510,087
|
|
|
2,077,982
|
|
Noncontrolling
interest
|
(401)
|
|
|
(250)
|
|
Total
equity
|
1,509,686
|
|
|
2,077,732
|
|
Total liabilities and
equity
|
$
|
8,092,166
|
|
|
$
|
9,217,687
|
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
Cash Flows from
Operating Activities
|
|
|
|
Net income
(loss)
|
$
|
(586,627)
|
|
|
$
|
(136,036)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Loss on
extinguishment of debt, net
|
669
|
|
|
375
|
|
Depreciation and
amortization, net
|
374,850
|
|
|
398,292
|
|
Goodwill and asset
impairment
|
390,816
|
|
|
26,638
|
|
Equity in loss
(earnings) of unconsolidated ventures
|
10,311
|
|
|
(478)
|
|
Distributions from
unconsolidated ventures from cumulative share of net
earnings
|
1,365
|
|
|
6,400
|
|
Amortization of
deferred gain
|
(3,277)
|
|
|
(3,279)
|
|
Amortization of
entrance fees
|
(2,457)
|
|
|
(3,111)
|
|
Proceeds from
deferred entrance fee revenue
|
4,519
|
|
|
11,327
|
|
Deferred income tax
provision
|
48,669
|
|
|
3,804
|
|
Change in deferred
lease liability
|
(9,204)
|
|
|
2,553
|
|
Change in fair value
of derivatives
|
159
|
|
|
28
|
|
Loss (gain) on sale
of assets, net
|
1,383
|
|
|
(2,126)
|
|
Loss on facility
lease termination
|
11,306
|
|
|
—
|
|
Non-cash stock-based
compensation
|
22,547
|
|
|
27,218
|
|
Non-cash interest
expense on financing lease obligations
|
13,960
|
|
|
19,728
|
|
Amortization of
(above) below market lease, net
|
(5,091)
|
|
|
(5,165)
|
|
Other
|
(4,699)
|
|
|
(6,360)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
10,765
|
|
|
8,183
|
|
Prepaid expenses and
other assets, net
|
23,323
|
|
|
(7,338)
|
|
Accounts payable and
accrued expenses
|
(21,459)
|
|
|
(73,892)
|
|
Tenant refundable
fees and security deposits
|
(232)
|
|
|
(693)
|
|
Deferred
revenue
|
1,513
|
|
|
11,213
|
|
Net cash
provided by operating activities
|
283,109
|
|
|
277,281
|
|
Cash Flows from
Investing Activities
|
|
|
|
Change in lease
security deposits and lease acquisition deposits, net
|
(411)
|
|
|
(1,776)
|
|
Change in cash and
escrow deposits — restricted
|
(6,340)
|
|
|
(1,810)
|
|
Purchase of
marketable securities
|
(246,376)
|
|
|
—
|
|
Additions to
property, plant and equipment and leasehold intangibles,
net
|
(140,044)
|
|
|
(263,950)
|
|
Acquisition of
assets, net of related payables and cash received
|
(400)
|
|
|
(12,157)
|
|
Investment in
unconsolidated ventures
|
(187,600)
|
|
|
(6,071)
|
|
Distributions
received from unconsolidated ventures
|
11,491
|
|
|
4,836
|
|
Proceeds from sale of
assets, net
|
34,570
|
|
|
219,471
|
|
Property insurance
proceeds
|
4,430
|
|
|
6,360
|
|
Other
|
962
|
|
|
723
|
|
Net cash
used in investing activities
|
(529,718)
|
|
|
(54,374)
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
Proceeds from
debt
|
1,293,047
|
|
|
202,132
|
|
Repayment of debt and
capital and financing lease obligations
|
(958,703)
|
|
|
(217,696)
|
|
Proceeds from line of
credit
|
100,000
|
|
|
1,276,500
|
|
Repayment of line of
credit
|
(100,000)
|
|
|
(1,486,500)
|
|
Payment of financing
costs, net of related payables
|
(5,705)
|
|
|
(1,414)
|
|
Proceeds from
refundable entrance fees, net of refunds
|
(2,241)
|
|
|
(907)
|
|
Payment on lease
termination
|
(552)
|
|
|
(9,250)
|
|
Payments of employee
taxes for withheld shares
|
(5,666)
|
|
|
(1,435)
|
|
Other
|
1,586
|
|
|
1,818
|
|
Net cash provided by
(used in) financing activities
|
321,766
|
|
|
(236,752)
|
|
Net increase
(decrease) in cash and cash equivalents
|
75,157
|
|
|
(13,845)
|
|
Cash and
cash equivalents at beginning of period
|
216,397
|
|
|
88,029
|
|
Cash and
cash equivalents at end of period
|
$
|
291,554
|
|
|
$
|
74,184
|
|
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 nine months ended September 30, 2017
and September 30, 2016 (in thousands):
|
Three Months
Ended
September 30,(1)
|
|
Nine Months
Ended
September 30,(1)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income
(loss)
|
$
|
(413,929)
|
|
|
$
|
(51,728)
|
|
|
$
|
(586,627)
|
|
|
$
|
(136,036)
|
|
(Benefit) provision
for income taxes
|
(31,218)
|
|
|
4,159
|
|
|
50,075
|
|
|
5,947
|
|
Equity in loss
(earnings) of unconsolidated ventures
|
6,722
|
|
|
878
|
|
|
10,311
|
|
|
(478)
|
|
Debt modification and
extinguishment costs
|
11,129
|
|
|
1,944
|
|
|
11,883
|
|
|
3,240
|
|
Loss (gain) on sale
of assets, net
|
233
|
|
|
425
|
|
|
1,383
|
|
|
(2,126)
|
|
Other non-operating
income
|
(2,621)
|
|
|
(3,706)
|
|
|
(6,519)
|
|
|
(11,011)
|
|
Interest
expense
|
79,999
|
|
|
96,482
|
|
|
249,544
|
|
|
289,989
|
|
Interest
income
|
(1,285)
|
|
|
(809)
|
|
|
(2,720)
|
|
|
(2,239)
|
|
Income (loss) from
operations
|
(350,970)
|
|
|
47,645
|
|
|
(272,670)
|
|
|
147,286
|
|
Depreciation and
amortization
|
117,649
|
|
|
130,783
|
|
|
366,023
|
|
|
391,314
|
|
Goodwill and asset
impairment
|
368,551
|
|
|
19,111
|
|
|
390,816
|
|
|
26,638
|
|
Loss on facility
lease termination
|
4,938
|
|
|
—
|
|
|
11,306
|
|
|
—
|
|
Straight-line lease
(income) expense
|
(3,078)
|
|
|
(859)
|
|
|
(9,204)
|
|
|
2,553
|
|
Amortization of
(above) below market lease, net
|
(1,697)
|
|
|
(1,699)
|
|
|
(5,091)
|
|
|
(5,165)
|
|
Amortization of
deferred gain
|
(1,091)
|
|
|
(1,093)
|
|
|
(3,277)
|
|
|
(3,279)
|
|
Non-cash stock-based
compensation
|
7,527
|
|
|
8,455
|
|
|
22,547
|
|
|
27,218
|
|
Adjusted
EBITDA
|
$
|
141,829
|
|
|
$
|
202,343
|
|
|
$
|
500,450
|
|
|
$
|
586,565
|
|
(1)
|
For the three and
nine months ended September 30, 2017, the calculation of
Adjusted EBITDA includes $2.8 million and $14.5 million of
transaction and strategic project costs, respectively. For the
three and nine months ended September 30, 2016, the
calculation of Adjusted EBITDA includes $7.1 million and $44.2
million of integration, transaction and transaction-related and
strategic project costs, respectively. Integration costs include
transition costs associated with the Emeritus merger and
organizational restructuring (such as severance and retention
payments and recruiting expenses), third party consulting expenses
directly related to the integration of Emeritus (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 the acquisition of
Emeritus, other acquisition and disposition activity, community
financing and leasing activity, our ongoing 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 for the
post-merger platform (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.
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 our net cash provided by (used in) operating activities for
the three and nine months ended September 30, 2017 and
September 30, 2016 (in thousands):
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net cash provided by
operating activities
|
$
|
83,235
|
|
|
$
|
99,442
|
|
|
$
|
283,109
|
|
|
$
|
277,281
|
|
Net cash (used in)
provided by investing activities
|
(268,503)
|
|
|
102,362
|
|
|
(529,718)
|
|
|
(54,374)
|
|
Net cash provided by
(used in) financing activities
|
325,294
|
|
|
(166,673)
|
|
|
321,766
|
|
|
(236,752)
|
|
Net increase
(decrease) in cash and cash equivalents
|
$
|
140,026
|
|
|
$
|
35,131
|
|
|
$
|
75,157
|
|
|
$
|
(13,845)
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
83,235
|
|
|
$
|
99,442
|
|
|
$
|
283,109
|
|
|
$
|
277,281
|
|
Changes in operating
assets and liabilities
|
(22,101)
|
|
|
23,967
|
|
|
(13,910)
|
|
|
62,527
|
|
Proceeds from
refundable entrance fees, net of refunds
|
(687)
|
|
|
(308)
|
|
|
(2,241)
|
|
|
(907)
|
|
Lease financing debt
amortization
|
(14,626)
|
|
|
(16,024)
|
|
|
(46,256)
|
|
|
(46,858)
|
|
Distributions from
unconsolidated ventures from cumulative
share of net earnings
|
(473)
|
|
|
(6,400)
|
|
|
(1,365)
|
|
|
(6,400)
|
|
Non-development
capital expenditures, net
|
(41,005)
|
|
|
(55,611)
|
|
|
(114,559)
|
|
|
(171,404)
|
|
Property insurance
proceeds
|
1,461
|
|
|
2,763
|
|
|
4,430
|
|
|
6,360
|
|
Adjusted Free Cash
Flow
|
$
|
5,804
|
|
|
$
|
47,829
|
|
|
$
|
109,208
|
|
|
$
|
120,599
|
|
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 nine months ended September 30,
2017 and September 30, 2016 (in thousands). 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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net cash provided by
operating activities
|
$
|
62,054
|
|
|
$
|
47,095
|
|
|
$
|
207,845
|
|
|
$
|
157,530
|
|
Net cash used in
investing activities
|
(20,267)
|
|
|
(40,885)
|
|
|
(1,238,932)
|
|
|
(124,491)
|
|
Net cash (used in)
provided by financing activities
|
(32,514)
|
|
|
(12,073)
|
|
|
1,083,379
|
|
|
(32,708)
|
|
Net increase in cash
and cash equivalents
|
$
|
9,273
|
|
|
$
|
(5,863)
|
|
|
$
|
52,292
|
|
|
$
|
331
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
62,054
|
|
|
$
|
47,095
|
|
|
$
|
207,845
|
|
|
$
|
157,530
|
|
Changes in operating
assets and liabilities
|
(5,615)
|
|
|
(3,600)
|
|
|
(20,088)
|
|
|
(11,125)
|
|
Proceeds from
refundable entrance fees, net of refunds
|
(6,309)
|
|
|
32
|
|
|
(15,702)
|
|
|
(2,744)
|
|
Non-development
capital expenditures, net
|
(28,659)
|
|
|
(25,761)
|
|
|
(69,425)
|
|
|
(72,073)
|
|
Property insurance
proceeds
|
614
|
|
|
—
|
|
|
$
|
1,841
|
|
|
$
|
—
|
|
Adjusted Free Cash
Flow of unconsolidated ventures
|
$
|
22,085
|
|
|
$
|
17,766
|
|
|
$
|
104,471
|
|
|
$
|
71,588
|
|
|
|
|
|
|
|
|
|
Brookdale weighted
average ownership percentage
|
30.4
|
%
|
|
42.2
|
%
|
|
22.4
|
%
|
|
36.1
|
%
|
Brookdale's
proportionate share of Adjusted Free Cash
Flow of unconsolidated ventures
|
$
|
6,709
|
|
|
$
|
7,502
|
|
|
$
|
23,379
|
|
|
$
|
25,867
|
|
View original
content:http://www.prnewswire.com/news-releases/brookdale-announces-third-quarter-2017-results-300550324.html
SOURCE Brookdale Senior Living Inc.