Brookdale Senior Living Inc.’s BKD shares gained 6.4% since it reported fourth-quarter 2024 results on Feb. 18, 2025. Despite benefiting from improved resident fees, increased revenue per occupied unit (RevPOR) and occupancy gains, the quarterly results were hurt by headwinds stemming from rising facility operating expenses, elevated general and administrative costs and declining interest income.
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BKD incurred a fourth-quarter loss of 37 cents per share, wider than the Zacks Consensus Estimate of a loss of 19 cents per share but narrower than the prior-year quarter’s loss of 40 cents per share.
Total revenues and other operating income grew 3.5% year over year to $780.9 million on the back of higher resident and management fee revenues.
Brookdale Senior Living Inc. Price, Consensus and EPS Surprise
Brookdale Senior Living Inc. Price, Consensus and EPS Surprise
Brookdale Senior Living Inc. price-consensus-eps-surprise-chart | Brookdale Senior Living Inc. Quote
BKD’s Q4 Key Performances
Resident fees were $744.4 million, which improved 3.9% year over year and came higher than the Zacks Consensus Estimate of $742.2 million. The growth was attributed to improved RevPOR and weighted average occupancy.
Management fees rose 4.1% year over year to $2.6 million, beating the consensus mark of $2.5 million.
RevPOR advanced 4.2% year over year in the fourth quarter as a result of annual rate increases. Weighted average occupancy improved 100 basis points year over year to 79.4% on the back of implementation of key strategies aimed at recovering occupancy levels lost during the pandemic. Revenue per available unit (RevPAR) increased 5.5% year over year.
Facility operating expenses totaled $554.9 million, up 4.6% year over year due to continued inflationary challenges and higher insurance expenses.
General and administrative costs escalated 15.9% year over year to $48.5 million.
Interest income of $5 million tumbled 7% year over year. Brookdale incurred a net loss of $83.9 million, narrower than the year-ago quarter’s loss of $91.2 million. The narrowed loss resulted from improved resident fees and a decline in asset impairment expense.
Adjusted EBITDA rose 15.5% year over year to $98.5 million.
Brookdale’s Financial Update (As of Dec. 31, 2024)
Brookdale exited the fourth quarter with cash and cash equivalents of $308.9 million, which advanced 11.1% from the 2023-end level.
Total assets of $6.3 billion increased 13.7% from the figure at 2023-end.
Long-term debt, less of the current portion, amounted to $4 billion, up 10% from the figure as of Dec. 31, 2023. The current portion of long-term debt amounted to $40.8 million.
Total equity of $213.9 million dropped 47.2% from the 2023-end level.
BKD’s net cash from operations climbed 54.3% year over year to $45.2 million in the fourth quarter. Adjusted free cash outflow of $11.5 million compares favorably to the prior-year quarter’s outflow of $21.5 million.
BKD’s Full-Year Update
BKD incurred a loss of 89 cents per share in 2024, wider than the year-ago loss of 84 cents per share.
Total revenues and other operating income grew 3.6% year over year to $3.1 billion. Resident fee revenues advanced 4% year over year in 2024.
RevPOR rose 4.3%, while RevPAR increased 6.1% year over year. Weighted average occupancy improved 140 basis points year over year.
It incurred a net loss of $202 million, wider than the loss of $189.1 million incurred in 2023. Adjusted EBITDA advanced 15.1% year over year to $386.2 million.
BKD’s 2025 View
Management estimates RevPAR to witness year-over-year growth in the range of 4.75-5.75%. It projects adjusted EBITDA to be in the range of $430-$445 million.
The company estimates non-development capital expenditures, net of anticipated lessor reimbursements and property and casualty insurance proceeds, within $175-$180 million in 2025.
BKD’s Zacks Rank
Brookdale currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported fourth-quarter 2024 results so far, the bottom-line results of UnitedHealth Group Incorporated UNH, Centene Corporation CNC and Ensign Group, Inc. ENSG beat the respective Zacks Consensus Estimate.
UnitedHealth Group reported fourth-quarter 2024 adjusted earnings per share (EPS) of $6.81, which surpassed the Zacks Consensus Estimate of $6.71. The bottom line advanced 10.6% year over year. Revenues rose 6.8% year over year to $100.8 billion. However, the top line missed the consensus mark by 1.4%. UnitedHealth’s medical care ratio (MCR) was 85.5% in 2024, which deteriorated from 83.2% in 2023.
UnitedHealth’s operating earnings grew 1.1% year over year to $7.8 billion in the fourth quarter. However, the net margin deteriorated 30 bps year over year to 5.5%. Revenues of the health benefits business of UnitedHealth, UnitedHealthcare, advanced 4.7% year over year to $74.1 billion. Earnings from operations amounted to $3 billion, down from $3.1 billion a year ago. Revenues in the Optum business line were $65.1 billion, which rose 9.4% year over year. The UnitedHealthcare business catered to 50.68 million people as of Dec. 31, 2024, which fell 3.9% year over year.
Centene’s fourth-quarter 2024 adjusted EPS of 80 cents outpaced the Zacks Consensus Estimate by 63.3%. Moreover, the bottom line rose 77.8% year over year. Revenues were $40.8 billion, which increased 3.4% year over year. The top line surpassed the consensus mark by 4.8%. Revenues from Medicaid dipped 1% year over year to $20.8 billion while Medicare revenues grew 4% year over year to $5.5 billion. Additionally, commercial revenues of $8.7 billion climbed 18% year over year.
Centene's premiums amounted to $35.5 billion, rising 3.8% year over year. Service revenues decreased 29.7% year over year to $777 million. As of Dec. 31, 2024, total membership was 28.6 million, which grew 4.1% year over year. Centene’s HBR deteriorated 10 basis points year over year to 89.6%. Adjusted net earnings of $404 million rose 68.3% year over year. Adjusted SG&A expense ratio of 8.9% improved 80 basis points year over year.
Ensign Group reported fourth-quarter 2024 adjusted EPS of $1.49, which outpaced the Zacks Consensus Estimate by 1.4%. The bottom line improved 16.4% year over year. Operating revenues advanced 15.5% year over year to $1.1 billion. The top line beat the consensus mark by 0.8%. Ensign Group’s adjusted net income of $87.6 million rose 18.9% year over year. Same-facilities occupancy improved 230 bps while transitioning-facilities occupancy expanded 470 bps year over year.
The Skilled Services segment recorded revenues of $1.08 billion in the fourth quarter, which advanced 15.1% year over year. Segment income rose 20.7% year over year to $141 million. Skilled nursing facilities and campus operations of the segment totaled 286 and 30, respectively, at the fourth-quarter end. Rental revenues in the Standard Bearer unit improved 14.8% year over year to $25.1 million. Segmental income was $7.4 million, which dipped 1.4% year over year. Funds from operations increased 7.3% year over year to $15.3 million.
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