Brookdale Senior Living, Inc. (NYSE:BKD) posted a GAAP net loss of $413.9 million for Q3 2017 versus $51.7 million for the comparable quarter of 2016. Net cash offered by operating activities came at $83.2 million versus $99.4 million in Q3 2016. Financial performance in the quarter was impacted by dispositions since the start of the previous year quarter, non-cash impairment charges to assets and goodwill and natural disasters.
The highlights
Andy Smith, the CEO and President of Brookdale, expressed that in the third quarter, they witnessed indications that their foundational initiatives are yielding promising results. Key leadership turnover reduced materially while customer satisfaction benchmark enhanced nicely. These improvements led to their best net move-in/move-out ratio in the third quarter as compared to recent years and increased occupancy per month during the reported quarter. Even so, they will continue to see the impact of labor cost pressures and intense competition through 2018.
The CEO of Brookdale added that as one outgrowth of both their underway strategic review procedure and their portfolio optimization measure, they are thrilled about the opportunities presented by their recently reported deal with HCP. It continues their measures to rationalize their portfolio, reduce lease liability and simplify their business. It also increases their certainty and flexibility when pursing alternative pathways to identify the value of their portfolio.
For Q3 2017, total revenue came at $1.18 billion versus $1.25 billion for the preceding year period. Resident fees came at $922.9 million for the reported quarter, a drop of 11.5% from Q3 2016. The drop in resident fees was mainly an outcome of the disposition of 136 communities through lease terminations and asset sales since the start of the prior year period. Facility operating expenses came at $650.7 million in Q3 2017, a drop of 7.6% from the comparable quarter of 2016.
