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Jan 13, 2023, 06:45 ET
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NASHVILLE, Tenn., Jan. 13, 2023 /PRNewswire/ — Brookdale Senior Residing Inc. (NYSE: BKD) (“Brookdale” or the “Firm”) at present introduced management adjustments designed to maximise efficiencies. The Firm additionally introduced choose adjustments to its full-year 2022 monetary expectations based mostly on its preliminary, unaudited outcomes. The up to date expectations are based mostly on administration’s estimates derived from the data obtainable right now and are topic to revision upon finalization of the Firm’s year-end accounting and monetary reporting processes and evaluations, and completion of the annual audit.
“Brookdale is a studying group that continues to refine efforts to raised help and serve our residents, associates, and shareholders,” stated Lucinda (“Cindy”) Baier, Brookdale’s President and CEO. “We’ve demonstrated a profitable progress technique with our sturdy 2022 top-line progress. This week, we have now taken significant actions to streamline our group to drive improved effectivity and higher align our bills with income.”
Management Changes
Steven E. Swain, who serves as Brookdale’s Govt Vice President and Chief Monetary Officer, will terminate employment efficient February 24, 2023.
Concurrently, Daybreak L. Kussow, the Firm’s Senior Vice President and Chief Accounting Officer, will probably be appointed Govt Vice President and Chief Monetary Officer. She can even proceed to function the Firm’s principal accounting officer.
Kevin W. Bowman, who served as Brookdale’s Govt Vice President – Neighborhood Operations, terminated employment efficient January 12, 2023.
Divisional Vice Presidents Laura E. Fischer and Benjamin J. Ricci will proceed to steer the operations for the Firm’s West and East Divisions, and every will now report on to Ms. Baier.
Richard (“Rick”) R. Wigginton has been promoted to Chief Gross sales Officer.
These management adjustments are aligned with extra company and discipline optimizations that had been not too long ago applied.
“I thank Steve and Kevin for his or her management and dedication to Brookdale over time,” acknowledged Ms. Baier. “With Daybreak’s exceptional monitor report, Rick’s demonstrated success, and Laura and Ben’s deep operational expertise, I’m assured they’ll proceed to offer glorious management and drive improved efficiency.”
Monetary Expectations
Primarily based on the Firm’s preliminary, unaudited 2022 monetary outcomes, the Firm expects:
Ms. Baier concluded, “I’m happy to announce that we continued sturdy income progress within the fourth quarter 2022. We’re persevering with to reply to a difficult labor market and confronted the surprising affect of winter storm Elliott. Our associates’ dedication to serving our residents continues to make me proud.”
Sure statements on this press launch might represent forward-looking statements throughout the which means of the Personal Securities Litigation Reform Act of 1995. These forward-looking statements are topic to numerous dangers and uncertainties and embody all statements that aren’t historic statements of truth and people concerning Brookdale’s intent, perception or expectations. Ahead-looking statements are usually identifiable by use of forward-looking terminology corresponding to “might,” “will,” “might,” “potential,” “intend,” “count on,” “estimate,” “imagine,” “plan,” or different comparable phrases or expressions, and embody statements concerning the Firm’s anticipated monetary outcomes, the Firm’s operational initiatives and progress methods and the Firm’s expectations concerning their impact on our outcomes. These forward-looking statements are based mostly on sure assumptions and expectations, and Brookdale’s means to foretell outcomes or the precise impact of future plans or methods is inherently unsure. Though Brookdale believes that expectations mirrored in any forward-looking statements are based mostly on cheap assumptions, it may give no assurance that its assumptions or expectations will probably be attained, and precise outcomes and efficiency might differ materially from these projected. Elements which might have a cloth adversarial impact on Brookdale’s operations and future prospects or which might trigger occasions or circumstances to vary from the forward-looking statements embody, however are usually not restricted to, the impacts of the COVID-19 pandemic, together with the response efforts of federal, state, and native authorities authorities, companies, people, and the Firm on the Firm’s enterprise, outcomes of operations, money circulation, income, bills, liquidity, and its strategic initiatives, together with plans for future progress, which is able to depend upon many elements, a few of which can’t be foreseen, together with the period, severity, and breadth of the pandemic and any resurgence or variants of the illness, the affect of COVID-19 on the nation’s economic system and debt and fairness markets and the native economies within the Firm’s markets, the event, availability, utilization, and efficacy of COVID-19 testing, therapeutic brokers, and vaccines and the prioritization of such sources amongst companies and demographic teams, authorities monetary and regulatory aid efforts that will turn out to be obtainable to enterprise and people, together with the Firm’s means to qualify for and fulfill the phrases and situations of monetary aid, perceptions concerning the security of senior residing communities throughout and after the pandemic, adjustments in demand for senior residing communities and the Firm’s means to adapt its gross sales and advertising and marketing efforts to fulfill that demand, the affect of COVID-19 on the Firm’s residents’ and their households’ means to afford its resident charges, together with attributable to adjustments in unemployment charges, shopper confidence, housing markets, and fairness markets attributable to COVID-19, adjustments within the acuity ranges of the Firm’s new residents, the disproportionate affect of COVID-19 on seniors usually and people residing within the Firm’s communities, the period and prices of the Firm’s response efforts, together with elevated gear, provides, labor, litigation, testing, vaccination clinic, well being plan, and different bills, better use of contract labor and extra time attributable to COVID-19 and normal labor market situations, the affect of COVID-19 on the Firm’s means to finish financings and refinancings of assorted belongings, or different transactions or to generate ample money circulation to cowl required debt, curiosity, and lease funds and to fulfill monetary and different covenants in its debt and lease paperwork, elevated regulatory necessities, together with the prices of unfunded, necessary testing of residents and associates and provision of take a look at kits to the Firm’s well being plan individuals, elevated enforcement actions ensuing from COVID-19, authorities motion that will restrict the Firm’s assortment or discharge efforts for delinquent accounts, and the frequency and magnitude of authorized actions and legal responsibility claims that will come up attributable to COVID-19 or the Firm’s response efforts; occasions which adversely have an effect on the flexibility of seniors to afford resident charges, together with downturns within the economic system, housing market, shopper confidence, or the fairness markets and unemployment amongst resident relations; adjustments in reimbursement charges, strategies, or timing below governmental reimbursement applications together with the Medicare and Medicaid applications; the consequences of senior housing development and growth, decrease trade occupancy (together with as a result of pandemic), and elevated competitors; situations of housing markets, regulatory adjustments, acts of nature, and the consequences of local weather change in geographic areas the place the Firm is concentrated; terminations of the Firm’s resident agreements and vacancies within the residing areas it leases, together with as a result of pandemic; failure to keep up the safety and performance of the Firm’s info programs, to forestall a cybersecurity assault or breach, or to adjust to relevant privateness and shopper safety legal guidelines, together with HIPAA; the Firm’s means to finish its capital expenditures in accordance with its plans; the Firm’s means to establish and pursue growth, funding, and acquisition alternatives and its means to efficiently combine acquisitions; competitors for the acquisition of belongings; the Firm’s means to finish pending or anticipated disposition, acquisition, or different transactions on agreed upon phrases or in any respect, together with in respect of the satisfaction of closing situations, the chance that regulatory approvals are usually not obtained or are topic to unanticipated situations, and uncertainties as to the timing of closing, and the Firm’s means to establish and pursue any such alternatives sooner or later; dangers associated to the implementation of the Firm’s technique, together with initiatives undertaken to execute on the Firm’s strategic priorities and their impact on its outcomes; limits on the Firm’s means to make use of web working loss carryovers to scale back future tax funds; delays in acquiring regulatory approvals; disruptions within the monetary markets or decreases within the appraised values or efficiency of the Firm’s communities that have an effect on the Firm’s means to acquire financing or lengthen or refinance debt because it matures and the Firm’s financing prices; the Firm’s means to generate ample money circulation to cowl required curiosity, principal, and long-term lease funds and to fund its deliberate capital tasks; the impact of the Firm’s non-compliance with any of its debt or lease agreements (together with the monetary covenants contained therein), together with the chance of lenders or lessors declaring a cross default within the occasion of the Firm’s non-compliance with any such agreements and the chance of lack of the Firm’s property securing leases and indebtedness attributable to any ensuing lease terminations and foreclosures actions; the impact of the Firm’s indebtedness and long-term leases on the Firm’s liquidity and its means to function its enterprise; will increase in market rates of interest that enhance the prices of the Firm’s debt obligations; the Firm’s means to acquire extra capital on phrases acceptable to it; departures of key officers and potential disruption attributable to adjustments in administration; elevated competitors for, or a scarcity of, associates (together with as a result of pandemic or normal labor market situations), wage pressures ensuing from elevated competitors, low unemployment ranges, minimal wage will increase and adjustments in extra time legal guidelines, and union exercise; environmental contamination at any of the Firm’s communities; failure to adjust to current environmental legal guidelines; an adversarial willpower or decision of complaints filed in opposition to the Firm, together with putative class motion complaints; the associated fee and issue of complying with growing and evolving regulation; prices to reply to, and adversarial determinations ensuing from, authorities evaluations, audits and investigations; adjustments in, or its failure to adjust to, employment-related legal guidelines and rules; unanticipated prices to adjust to legislative or regulatory developments; the dangers related to present international financial situations and normal financial elements corresponding to inflation, the buyer value index, commodity prices, gasoline and different vitality prices, competitors within the labor market, prices of salaries, wages, advantages, and insurance coverage, rates of interest, and tax charges; the affect of seasonal contagious sickness or an outbreak of COVID-19 or different contagious illness within the markets during which the Firm operates; actions of activist stockholders, together with a proxy contest; in addition to different dangers detailed every so often within the Firm’s filings with the Securities and Trade Fee, together with these set forth within the Firm’s Annual Report on Type 10-Ok and Quarterly Experiences on Type 10-Q. When contemplating forward-looking statements, you must take into accout the chance elements and different cautionary statements in such SEC filings. Readers are cautioned to not place undue reliance on any of those forward-looking statements, which replicate administration’s views as of the date of this press launch. Brookdale can’t assure future outcomes, ranges of exercise, efficiency or achievements, and, besides as required by regulation, it expressly disclaims any obligation to launch publicly any updates or revisions to any forward-looking statements to replicate any change in its expectations with regard thereto or change in occasions, situations or circumstances on which any assertion is predicated.
This launch refers back to the monetary measure Adjusted EBITDA, which isn’t calculated in accordance with U.S. usually accepted accounting rules (“GAAP”). Displays of this non-GAAP monetary measure are meant to assist buyers in higher understanding the elements and traits affecting the Firm’s efficiency. Nevertheless, buyers mustn’t think about this non-GAAP monetary measure as an alternative to monetary measures decided in accordance with GAAP, together with web earnings (loss). The Firm cautions buyers that quantities introduced in accordance with the Firm’s definitions of a non-GAAP monetary measure might not be akin to comparable measures disclosed by different firms as a result of not all firms calculate non-GAAP measures in the identical method. The Firm urges buyers to evaluation the next definition of this non-GAAP monetary measure.
Adjusted EBITDA is a non-GAAP efficiency measure that the Firm defines as web earnings (loss) excluding: profit/provision for earnings taxes, non-operating earnings/expense objects, and depreciation and amortization; and additional adjusted to exclude earnings/expense related to non-cash, non-operational, transactional, price discount, or organizational restructuring objects that administration doesn’t think about as a part of the Firm’s underlying core working efficiency and that administration believes affect the comparability of efficiency between intervals. For the interval referenced herein, such different objects embody non-cash impairment prices, achieve/loss on facility working lease termination, working lease expense adjustment, non-cash stock-based compensation expense, and transaction and organizational restructuring prices. Transaction prices embody these straight associated to acquisition, disposition, financing, and leasing exercise, and are primarily comprised of authorized, finance, consulting, skilled charges, and different third-party prices. Organizational restructuring prices embody these associated to the Firm’s efforts to scale back normal and administrative expense and its senior management adjustments, together with severance.
The Firm believes that presentation of Adjusted EBITDA as a efficiency measure is beneficial to buyers as a result of (i) it is without doubt one of the metrics utilized by the Firm’s administration for budgeting and different planning functions, to evaluation the Firm’s historic and potential core working efficiency, and to make day-to-day working selections; (ii) it supplies an evaluation of operational elements that administration can affect within the short-term, particularly revenues and the controllable price construction of the group, by eliminating objects associated to the Firm’s financing and capital construction and different objects that administration doesn’t think about as a part of the Firm’s underlying core working efficiency and that administration believes affect the comparability of efficiency between intervals; and (iii) the Firm believes that this measure is utilized by analysis analysts and buyers to judge the Firm’s working outcomes and to worth firms in its trade.
Adjusted EBITDA has materials limitations as a efficiency measure, together with: (i) excluded curiosity and earnings tax are essential to function the Firm’s enterprise below its present financing and capital construction; (ii) excluded depreciation, amortization and impairment prices might characterize the damage and tear and/or discount in worth of the Firm’s communities, goodwill, and different belongings and could also be indicative of future wants for capital expenditures; and (iii) the Firm might incur earnings/expense much like these for which changes are made, corresponding to achieve/loss on sale of belongings, facility working lease termination, or debt modification and extinguishment, non-cash stock-based compensation expense, and transaction and different prices, and such earnings/expense might considerably have an effect on the Firm’s working outcomes.
About Brookdale Senior Residing
Brookdale Senior Residing Inc. is the nation’s premier operator of senior residing communities. The Firm is dedicated to its mission of enriching the lives of the individuals it serves with compassion, respect, excellence and integrity. The Firm operates unbiased residing, assisted residing, reminiscence care, and persevering with care retirement communities. By its complete community, Brookdale helps to offer seniors with care and providers in an atmosphere that seems like residence. The Firm’s experience in healthcare, hospitality and actual property supplies residents with alternatives to enhance wellness, pursue passions and keep linked with mates and family members. Brookdale operates and manages 673 communities in 41 states as of December 31, 2022, with the flexibility to serve greater than 60,000 residents. Brookdale’s inventory trades on the New York Inventory Trade below the ticker image BKD. For extra info, go to brookdale.com or join with Brookdale on Fb or Twitter.
SOURCE Brookdale Senior Residing Inc.
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