Brookdale Senior Living Inc. (NYSE: BKD) released its fourth quarter 2010 and full year results that showed an increase in cash flow from facility operations increase in the quarter by 40.6% to $69.6 million for the quarter versus its same results for Q4 2009. Brookdale saw the same store operating income during Q4 up 8% from 2009 on improved average monthly revenue per unit of $4,498. The company saw its average occupancy tick up 10 basis points to 87.5% from Q3 2010 and the figure is 90 basis points higher than its occupancy rate in the fourth quarter of 2009. Brookdale’s outlook for full year 2011 expects cash from facility operations to range between $2.30 and $2.40 per share.
"We had a strong fourth quarter with continued increases in occupancy, improvement in revenue per unit, further roll-out of ancillary services, encouraging entry fee activity and well-managed costs. With the positive trends in the fundamentals of our business through the majority of 2010, we are optimistic about 2011 and very optimistic for 2012 and beyond. Additionally, the industry is clearly moving into another consolidation phase and we certainly expect to participate using our scale and platform advantages," said Bill Sheriff, Brookdale’s CEO.
The comparable revenues for the same communities were up 3.2% year over year with operating income up 2.2% for 2010 compared with 2009. For the twelve months ended December 31, 2010, operating contribution margin was 34.9%, down from 35.4% for the full year 2009. Brookdale saw positive growth with its home health agency business as it served approximately 26,500 units, up from 20,200 units the previous year and its operating income per occupied unit for those service increase to $264 per unit versus $206 a year in 2009.
Mark Ohlendorf, Co-President and CFO of Brookdale, commented, "We continue to strengthen our position to create value for shareholders. We have used positive cash flow to deliver the balance sheet, while increasing our liquidity and financial flexibility to be able to respond to opportunities as they arise. We are investing in high-return projects to expand or reposition our current portfolio and in systems that further our strategic advantage. Our ancillary services footprint continues to expand and we are broadening the scope of our ancillary services platform with hospice services targeted to start in at least four of our markets this year. The strength of our platform and our solid financial profile positions us well for long-term growth."
