On February 18, 2025, Brookdale Senior Living Inc (BKD, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year of 2024. The company, a leading operator of senior living communities in the United States, reported significant improvements in several key financial metrics, reflecting its strategic focus on growth and operational efficiency.
Company Overview
Brookdale Senior Living Inc operates senior living communities across the United States, with three main segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRs). The majority of its revenue is generated from the Assisted Living and Memory Care segment, which provides housing and assistance with daily living activities. Revenue is primarily derived from resident fees and management fees from certain communities under contract.
Performance and Challenges
In the fourth quarter of 2024, Brookdale reported a consolidated revenue per available unit (RevPAR) increase of 5.5% over the prior year, reaching the top end of its guidance range. The company's weighted average occupancy grew by 100 basis points year-over-year, driven by strong move-in volumes. Despite these positive trends, the company continues to face challenges such as inflationary pressures and increased facility operating expenses due to natural disasters and insurance costs.
Financial Achievements
Brookdale's financial achievements in Q4 2024 include a nearly 8% improvement in net income (loss) and a 16% increase in Adjusted EBITDA compared to the previous year. These improvements are crucial for the healthcare providers and services industry, as they indicate enhanced operational efficiency and financial stability. The company also reported a 54% increase in net cash provided by operating activities and a 46% improvement in Adjusted Free Cash Flow.
Income Statement Highlights
| Metric | 4Q 2024 | 4Q 2023 | Change | Percent Change |
|---|---|---|---|---|
| Resident Fees | $744.4 million | $716.6 million | $27.8 million | 3.9% |
| Facility Operating Expense | $554.9 million | $530.5 million | $24.4 million | 4.6% |
| Net Income (Loss) | $(83.9) million | $(91.2) million | $7.3 million | 7.9% |
| Adjusted EBITDA | $98.5 million | $85.3 million | $13.2 million | 15.5% |
Analysis of Performance
Brookdale's performance in Q4 2024 demonstrates its ability to navigate a challenging economic environment while focusing on strategic growth initiatives. The company's efforts to improve occupancy rates and manage expenses have resulted in a narrowing of net losses and an increase in Adjusted EBITDA. The refinancing of debt and acquisition of previously leased communities further strengthen its financial position and reduce capital costs.
In 2024, Brookdale made significant progress to achieving its long-term potential. We are proud of the meaningful improvements across many financial, operational, and resident satisfaction metrics," said Lucinda (“Cindy”) Baier, Brookdale’s President and CEO.
Overall, Brookdale Senior Living Inc's Q4 2024 results reflect a positive trajectory, with strategic initiatives and financial management contributing to improved performance. The company's focus on occupancy growth and cost management positions it well for continued success in the senior living industry.
Explore the complete 8-K earnings release (here) from Brookdale Senior Living Inc for further details.
