Brookdale Senior Living Inc. (NYSE: BKD) (the “Company”) reported record financial and operating results for the second quarter of 2009 with a 4.7% increase in revenue provided by an increase in average monthly revenue per unit. The Company reported slightly lower occupancy rates during the second quarter at 88.5%, compared to 88.9% for the second quarter of 2008 and 88.7% for the first quarter of 2009. Ending occupancy for the second quarter increased to 88.8% versus 88.6% at the end of the first quarter of 2009.
Cash From Facility Operations was $52.5 million for the second quarter of 2009, or $0.50 per share which was an increase of $5.4 million, or $0.04 per share, over the second quarter of 2008, excluding the non-recurring and integration expenses in 2008. Including the non-recurring and integration costs, the Company reported CFFO of $0.36 per share in the second quarter of 2008. For the six months ended June 30, 2009, CFFO was $102.7 million, or $0.99 per share. Net loss for the second quarter of 2009 was $(10.5) million, or $(0.10) per diluted common share. The loss for the quarter 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
The Company also stated that as a result of a successful equity raise, the corporate line of credit was paid off thus reducing the company’s leverage and capital costs. Aditionally, the company announced that it has no mortgage debt maturing until 2011 as the company extended the maturity of all of its mortgage debt initially due in 2009 and has $96 million in unrestricted cash and no borrowings on its credit line. During the quarter, the Company opened one expansion with 26 units. There are currently four expansion projects under construction that will add a total of 615 units in 2009. Two of these projects are leased and two are owned with financing in place and no additional equity required.
Bill Sheriff, Brookdale’s CEO, said, “We are very pleased to have produced a second consecutive record revenue and CFFO quarter. We are driving results by staying focused on our plan – innovate and execute in sales and marketing, proactively roll out supportive services into our communities and aggressively control our cost base. While uncertainty remains, the market environment seems to have stabilized a bit and our level occupancy reflected that stability. Our revenue per unit increased by over 5%, with a good contribution from our ancillary services programs. The sequential quarter decrease in operating expenses reflects our success at comprehensively examining and adjusting our costs without sacrificing our commitment to, or maintenance of, our quality standards. In today’s economic environment, our performance speaks to the strength of our plan, our people and Brookdale’s ongoing commitment to our customers.”
For the full 8-K, click here.
