What is the market's earnings forecast for Brookdale Senior Living next quarter?

What does Brookdale Senior Living do and what are its main business segments?

What were the key takeaways from Brookdale Senior Living's earnings call?

What guidance did Brookdale Senior Living's management provide for the next earnings period?

What is the revenue and EPS growth rate for Brookdale Senior Living year over year?

What is Brookdale Senior Living's gross profit margin?

What factors drove the changes in Brookdale Senior Living's revenue and profit?

What were the key takeaways from Brookdale Senior Living’s earnings call?

- **Occupancy Milestone**: 81.8% consolidated occupancy, highest since 2020, with 150bps sequential growth.
- **Profitability Boost**: Adjusted EBITDA up 20% YoY, free cash flow positive for 3Q in a row.
- **Growth Catalysts**: Mid-teen EBITDA growth projected, driven by SWAT team expansion and regional operational focus.
- **Debt Reduction**: Leverage down to 9.0x EBITDA, with 2026 debt refinancing and portfolio optimization.

**【CEO Summary Section】**
- Q3 occupancy reached 81.8% (consolidated) and 82.3% (same-store), highest since Q1 2020.
- Reduced low-occupancy communities from 143 to 89, with 41 communities needing 1-3 move-ins to exit sub-70% band.
- Mid-teen EBITDA growth projected over next several years, driven by targeted CapEx and pricing strategy.
- New organizational structure with 6 regional leaders and centralized support team.

**【CFO Financial Commentary】**
- Adjusted EBITDA up 20% YoY to $111.1M, with free cash flow of $21.8M (Q3) and $45.5M YTD.
- Raised 2025 EBITDA guidance to $455-460M (from $445-455M), with RevPAR growth of 5.25%-6%.
- Portfolio optimization: 13 Ventas communities transitioned, 10 owned communities exited, reducing leverage to 9.0x EBITDA.

**【Q&A Highlights】**
- CEO emphasizes offensive posture: dynamic pricing, regional focus, and SWAT team success.
- CFO notes FFO disclosure to highlight real estate value and 2026 debt refinancing plans.
- Strong resident satisfaction (NPS growth) supports market share gains vs. 50bps industry occupancy growth.
- Mid-teen EBITDA growth to start in 2026, driven by fixed-cost leverage and strategic CapEx deployment.

Brookdale Senior Living Inc. (BKD) Q3 2025 Earnings Call Transcript

- **Occupancy Milestone**: Consolidated occupancy crossed 80% for the first time since Q1 2020, with same-community occupancy at 80.7%.
- **Profitable Growth**: Adjusted EBITDA up 20% YoY to $117 million, driven by occupancy gains and cost control.
- **Strategy Success**: SWAT teams delivered 350 basis points occupancy growth in targeted communities, with 129 remaining in the <70% band.
- **Guidance Raise**: RevPAR growth raised to 5.25-6%, reflecting confidence in operational execution.
- **Cash Flow Turnaround**: Positive free cash flow for two consecutive quarters, with full-year guidance of $30-50 million.

**【CEO Summary Section】**
- **Operational Momentum**: Q2 occupancy reached 80.1% (consolidated) and 80.7% (same-community), up 200 basis points YoY, with June month-end occupancy at 82.8% (240 basis points higher than Q2 2024). Adjusted EBITDA grew 19.7% QoQ to $117 million, and free cash flow turned positive at $20 million.
- **Strategic Focus**: Emphasized profitable occupancy (>80%) through targeted incentives, SWAT team interventions, and portfolio optimization. 55 leased assets are set to transition by year-end, with 14 already under contract.
- **Quality Initiatives**: Launched Brookdale Health Plus in 200+ communities, reducing urgent care visits by 80% and hospitalizations by 66%. NPS scores improved, reflecting resident satisfaction.

**【CFO Financial Commentary】**
- **Revenue Growth**: Consolidated RevPAR up 5.1% YoY, driven by 200 basis points occupancy growth. Same-community RevPAR rose 4.8% YoY, with RevPOR increasing 2.4% despite cost management.
- **Cost Efficiency**: G&A expenses reduced $850,000 QoQ and $1.2 million YoY. Annualized leverage improved to 9.3x, down from 9.7x, with plans to further deleverage through asset sales and cash flow generation.
- **Guidance Update**: Raised 2025 RevPAR growth to 5.25-6% (from 4.5-5.5%) and EBITDA to $445-455 million (from $430-440 million). Free cash flow expected at $30-50 million for the year.

**【Q&A Highlights】**
- **Occupancy Strategy**: Focused on moving 143 communities out of the <70% occupancy band, with 129 remaining in Q2. SWAT teams drove 350 basis points occupancy growth in high-opportunity locations.
- **Pricing Dynamics**: Maintained RevPOR growth (2.4% YoY) while controlling expenses, resulting in a 10 basis point spread between RevPOR and ExPOR. Targeted incentives were localized to avoid rate erosion.
- **Asset Dispositions**: 28 additional assets identified for exit, with 50% of dispositions expected to generate cash proceeds for reinvestment. Ventas transition delays may impact Q4 EBITDA by $2 million.
- **Health Plus Impact**: Program highlighted as a key differentiator, reducing move-out rates and improving resident retention.


Brookdale Senior Living (BKD)-7 Aug 25-2025 Q2 Earnings call transcript

- **Record Q1 Financials**: RevPAR +4.9% YoY, EBITDA +27%, and $4M positive free cash flow, driving 2025 guidance upgrade.
- **Strategic Asset Optimization**: Exiting 69 communities (55 leased, 14 owned) to focus on 75% owned portfolio, freeing $30-50M annual cash flow.
- **Growth Drivers**: $175M capex for community upgrades, SWAT teams boosting 143 low-occupancy communities, and 2025 RevPAR growth 5%-5.75%.
- **Leverage Reduction**: Targeting long-term debt reduction via EBITDA growth and asset sales, with 2025 free cash flow to support reinvestment.
- **CEO Search Progress**: 15+ candidates evaluated; interim CEO committed to 6-month+ process to identify strategic leader.


**【Interim CEO Strategic Overview】**
- **CEO Transition & Search**: Board initiated CEO search with Spencer Stuart, focusing on candidates with operational expertise and strategic vision for long-term growth. Search expected to take at least 6 months.
- **Operational Priorities**: 
  - **Occupancy Growth**: Piloting pricing promotions and SWAT teams to boost occupancy in low-performing communities (143 communities below 70% occupancy).
  - **Cost Optimization**: Reducing leverage through adjusted EBITDA growth and asset sales; 2025 guidance includes $30-50M positive free cash flow.
  - **Capital Reinvestment**: $175M-$180M in capital spending, including $15M for first impressions program to enhance community appeal.
- **Real Estate Strategy**: Exiting 55 leased and 14 non-core owned communities by year-end, targeting 75% owned portfolio by 2025. Acquired 41 leased communities in 2024Q4-2025Q1 for flexibility and growth.

**【CFO Financial Highlights】**
- **Q1 2025 Results**: 
  - RevPAR +4.9% YoY, driven by 140bps occupancy growth to 79.3%.
  - Adjusted EBITDA $124M (+27% YoY), exceeding internal and analyst expectations.
  - Positive adjusted free cash flow ($4M) vs. -$26M YoY, supported by strong EBITDA and asset sales.
- **2025 Guidance**: 
  - RevPAR growth 5%-5.75% (vs. prior 4.5%-5.5%).
  - Adjusted EBITDA $440M-$450M (+14%-17% YoY).
  - Seasonal headwinds (~$10M EBITDA decline Q2 vs. Q1) due to day count, merit increases, and utilities.
- **Liquidity & Leverage**: 
  - Total liquidity $306M as of Q1.
  - Annualized leverage improving with EBITDA growth; targeting long-term leverage reduction.

**【Q&A Key Themes】**
- **Pricing Strategy**: Dynamic promotions in select communities, balancing rate increases with occupancy goals. 2025 RevPOR growth expected to exceed expense growth.
- **Asset Dispositions**: 14 underperforming communities (negative EBITDA) targeted for sale, with proceeds reinvested in operations and debt reduction.
- **SWAT Team Success**: Early results in 65 communities show improved occupancy and cash flow, with plans to expand to additional communities.
- **Macro Risks**: Acknowledged global macroeconomic uncertainty but confident in operational resilience and strategy execution.


Brookdale Senior Living (BKD)-7 May 25-2025 Q1 Earnings call transcript

- **2024 Financial Triumph**: 15% EBITDA growth, 40% free cash flow improvement, and Q4 RevPAR at top guidance range, despite challenges.
- **Strategic Lease Restructuring**: Resolved $31M annual loss from 55 Ventas communities, driving 2025 free cash flow upside.
- **2025 Growth Targets**: 4.75%-5.75% RevPAR growth, 11%-15% EBITDA expansion, fueled by HealthPlus expansion and lower acuity move-ins.
- **Operational Excellence**: 13%+ associate turnover improvement, HealthPlus reducing ER visits by 80%, and $389M liquidity for capital flexibility.

**【CEO Summary Section】**
- **2024 Financial Highlights**: Weighted average occupancy grew 140 basis points, RevPAR increased 6.1%, adjusted EBITDA rose 15%, and adjusted free cash flow improved nearly 40%, turning positive in the second half of 2024.
- **Occupancy Challenges and Actions**: Despite a 2024 decline in move-ins due to disrupted third-party referrals, Q4 move-ins were 8% above pre-pandemic averages. Actions included redeploying marketing spend to internal channels and strengthening local referrals, leading to the strongest Q4 move-ins since 2016.
- **Associate Retention Success**: Year-over-year associate turnover improved by over 13 percentage points, with executive director retention showing consistent quarterly growth. Named a top 200 Most Loved Workplace in 2024.
- **HealthPlus Program Impact**: 80 additional communities converted to HealthPlus, with independent analysis showing 80% fewer ER visits and 66% fewer hospitalizations among residents.
- **Strategic Transactions**: Acquired 41 communities at a mid-8% cap rate, reducing lease obligations and improving cash flow. Resolved a 120-community Ventas lease, exiting 55 underperforming communities to reduce $31M annual cash flow loss.
- **2025 Outlook**: Target 4.75%-5.75% RevPAR growth, driven by improved move-in volume and lower acuity residents. Focus on expanding HealthPlus and EngagementPlus programs to enhance resident outcomes and attract higher acuity residents.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: Adjusted EBITDA of $99M (15% YoY growth), GAAP net income $420M, and non-GAAP EPS exceeding expectations. Adjusted free cash flow negative $12M due to seasonal timing, but positive in the second half of 2024.
- **2025 Guidance**: RevPAR growth 4.75%-5.75%, adjusted EBITDA $430M-$445M (11%-15% YoY growth). Includes $3M ERP system implementation cost and normalized G&A expenses. Liquidity of $389M as of Q4, annualized leverage 10.4x (9.9x normalized).
- **Debt Management**: Eliminated all 2025 debt maturities, reduced 2026 maturities to $44M. Refinanced loans with lower rates and extended maturities, and extended convertible notes maturity to 2029.

**【Q&A Highlights】**
- **RevPAR Growth and Lease Impact**: Q4 2024 RevPAR growth of 5.5% (top guidance range) driven by 100bps occupancy and 4.2% RevPOR increase. 2025 guidance assumes October 2025 disposition of 55 Ventas communities, with incremental free cash flow upside in 2026.
- **Political and Regulatory Environment**: <4% Medicaid reliance vs. industry average 18%, reducing regulatory risk. Focused on federal policy advocacy to expand access to senior living services.
- **Occupancy Trends**: January 2025 occupancy up 120bps YoY, strongest since 2016. Q1 2025 expects typical seasonal decline but better than prior years due to proactive flu prevention.
- **Future Growth Drivers**: Expansion of HealthPlus to 60+ communities, EngagementPlus personalization, and enhanced dining programs to differentiate Brookdale and capture demographic demand growth.

BKD

BKD fundamentals

Earnings Call

You can ask Aime