Brookdale Senior Living Inc. (NYSE: BKD) (the “Company”) reported financial results for the fourth quarter of 2008 earlier this week with a net loss, including a non-cash impairment charge of $220.0 million in the fourth quarter, for the quarter and twelve months ended December 31, 2008 was $(278.8) million and $(373.2) million, respectively, or $(2.75) and $(3.67) per diluted common share. The loss for the quarter and year also includes non-cash items for depreciation and amortization, non-cash stock-based compensation expense and straight-line lease expense, net of deferred gain amortization, which totaled $80.5 million and $331.1 million, respectively. Notable items in its 4th quarter results include:
- Average monthly revenue per unit was $3,830 in the fourth quarter, an increase of 5.2% over the fourth quarter of 2007, and $3,791 for the full year of 2008, a 6.0% increase over the same period of 2007.
- Revenue for the fourth quarter was $486.9 million, up 3.7% from the fourth quarter of 2007. Revenue for the full year 2008 was $1.9 billion, a 4.8% increase from $1.8 billion for the full year 2007.
- The company took a goodwill impairment charge of $215 million dollars.
- Brookdale entered into a revised credit agreement with one of its lenders.
- At the end of the quarter, the Brookdale’s home health agencies were serving over 16,700 units across the total Brookdale portfolio, up from 7,400 units served a year ago.
Bill Sheriff, Brookdale’s CEO, said, “We performed well during the fourth quarter. Occupancy held up in spite of an extremely challenging environment, revenue per unit increased by greater than 5%, our ancillary services programs continued to exceed expectations and we began to see the results of our aggressive cost reduction efforts. In our fourth quarter same store results, labor-related costs, supplies, travel, and training expenses all trended down from the third quarter. As validated in our January results, we believe our cost control actions, along with more aggressive control of capital expenditures, will continue to positively impact our cash flow going forward.”
For the full earnings release, click here.