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| Statement |
|---|
| This was our ninth consecutive quarter to deliver year-over-year adjusted operating income growth |
| This marked our ninth consecutive quarter of year-over-year occupancy growth |
| And so, for our shareholders, we think there's going to be a strong return by supporting the health and well-being of our residents even more than we previously do |
| But what excites me most for the shareholders of Brookdale is that we have seen the HealthPlus community's profitability grows much faster than non-HealthPlus communities |
| For this, I'm extremely grateful to our team for their leadership and their efforts, and I'm proud to say that the result was an incredibly strong year marked by more residents who chose to be part of a Brookdale community, which led to greater occupancy, significant improvements in our operations and robust financial growth |
| Although complete recovery is still ahead of us with each quarter of 2023, we continue to build a solid foundation that paves the way for sustained growth |
| For the fourth quarter, we are pleased to report another quarter in which both RevPAR and adjusted EBITDA achieved or exceeded our previously provided guidance |
| Additionally by remaining focused on our key strategic priorities, we delivered a number of positive outcomes, throughout our community operations, our real estate portfolio and our financials |
| Same community RevPAR increased approximately 10%, over last year's fourth quarter on positive occupancy and RevPOR growth |
| By pursuing RevPAR, through a balance of occupancy and rate, we delivered favorable top line results |
| In the fourth quarter, we maintained the positive margin improvements we have achieved throughout 2023, while ensuring that we continue to meet our residents' needs, provide high-quality care and personalized service and remain in compliance, with applicable regulations |
| Through RevPAR growth and appropriate expense management, same community adjusted operating income grew 37%, over the prior year fourth quarter |
| In addition to these financial accomplishments, we once again achieved meaningful progress towards our leadership retention and associate turnover goals |
| Year-over-year, retention rates for our Q3 community leadership roles increased 190 basis points and full-time hourly associate turnover improved by 910 basis points from the prior year fourth quarter |
| I am incredibly proud of the progress, we are making in this critical area of the business |
| We're excited about the quality of care that we're providing |
| First, we're seeing incredibly strong supply and demand demographics with more seniors entering our target market this year than ever before |
| This year was pivotal in refining our operations to favorably impact our performance, as we further recover from the pandemic while continuing to support consistent, and high-quality resident experiences |
| We take great pride in serving our hundreds of thousands of residents at communities across the country over the last decade |
| As a company, we're honored to enrich the lives of hundreds of thousands of seniors over the last decade and our communities have been recognized as some of the best in the nation |
| The way that I see it is, is no matter what happens with the lease, it's going to be good for our shareholders |
| And by year-end, these changes have started yielding noticeable positive improvements, at the community level |
| What I would say is sitting in our shoes today I'm very excited about the optionality that lease expirations give us at Brookdale |
| Cindy Baier And let me just add to what Dawn said, by saying, I'm really pleased with the way that our pricing strategy has worked out for 2023 |
| By hiring associates, who are dedicated to our mission extending the length of employment of our Brookdale community leaders, and hourly associates and increasing the number of shifts staffed with full and part-time Brookdale associates rather than contract labor, we are building stronger teams that will have a favorable impact for years to come |
| We are very proud of this progress as we diligently work to return to pre-pandemic segment operating margins while continuing to ensure that we meet our residents' needs, provide high-quality care and service, and remain in compliance with applicable regulations |
| Our periodic labor trackers suggest a pickup in job postings late in the year which is consistent with the strong occupancy |
| And we believe that we have built a very solid foundation that it paves the way for sustained growth |
| I'm proud to report that our total company engagement score improved by a significant amount with positive increases across all of our product lines |
| Cindy Baier And if I go to the longer term Ben, this is Cindy, I would just say that we were really, really pleased to finish 2023 with another quarter of incredibly solid operating results and financial growth |
| Statement |
|---|
| Fourth quarter RevPOR was slightly below our expectations, due to resident mix disposition timing and our competitive response on pricing |
| Adjusted free cash flow was negative $21 million for the quarter |
| We're seeing a very muted supply environment, given the constraints of the pandemic on our industry as well as capital tightening |
| Cindy Baier And the one thing that I would just add is we definitely see that the labor market continues to be competitive and there are some challenges particularly in nurses and certain hourly positions like caregivers and CNAs, but there is definitely a stabilization in the labor market which has resulted in less labor market churn |
| As a reminder, pre-pandemic the first quarter generally declined sequentially compared to the fourth quarter |
| Fourth quarter general and administrative expense was approximately $1 million, lower than the third quarter |
| And if I may another question different topic, I guess in January, there were some hearings in Congress focused on the assisted living facilities and they talked about quality of care, lack of transparency and standards |
| The primary driver of the $65 million sequential decrease in quarter-end liquidity was related to the refinancing transaction we reported in a press release on December 27 |
| Independent evaluations confirmed that residents in our Health Plus Communities experienced fewer urgent care visits and hospitalizations, underscoring the effectiveness of our proactive and preventive care measures |
| How we're thinking about it is, yes, we did see January occupancy went down 30 basis points as opposed to 40 basis points last year, but what we would say is we're continuing to -- our expectation is continuing to follow that historical pre-pandemic trend for the full first quarter |
| So pricing you made a comment around, pricing being up less than last year but above the historical |
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