Brookdale Senior Living’s (NYSE: BKD) Chief Operating Officer Labeed S. Diab is set to resign on October 28, the company announced Monday.
Diab, who joined Brookdale from Walmart (NYSE: WMT) as part of a larger C-suite shakeup in November 2015, informed Brookdale that he will now be pursing a different opportunity. The company did not reveal a COO successor plan or where Diab plans to work next.
The Brentwood, Tennessee-based senior housing giant on Monday also provided an update related to the various natural disasters that have impacted its business so far this year. Hurricanes Harvey and Irma, for instance, impacted 171 Brookdale communities serving approximately 19,000 residents.
As of Monday, all but one of Brookdale’s communities impacted by the hurricanes have resumed operation, but seven communities are expected to experience some continuing disruption as storm damage is repaired.
Due to the hurricanes, however, the senior housing provider anticipates a negative impact to adjusted EBITDA of about $12 million to $13 million for 2017. Adjusted EBITDA for the third quarter of 2017 is anticipated to reflect a negative impact of about $9 million, approximately one-third of which is expected to result from lost revenue in the company’s Florida home health business.
Adjusted EBITDA for the fourth quarter of 2017, meanwhile, is anticipated to reflect a negative impact of about $3 million to $4 million, divided between increased operating costs and lower ancillary services revenue.
In addition, Brookdale estimates that it will incur an extra approximately $13 million to $14 million of capitalized costs for physical plant remediation.
Around 20 of Brookdale’s California communities are currently being impacted by wildfires, but so far, none of them have experienced major damage, according to the press release. The provider evacuated the residents of six communities, two of which have resumed full operation, and other communities are housing residents who were evacuated.
Written by Mary Kate Nelson