NASHVILLE, Tenn., May 7, 2024 /PRNewswire/ -- Brookdale Senior Living Inc. (NYSE:BKD) ("Brookdale" or the "Company") announced results for the quarter ended March 31, 2024. HIGHLIGHTS First quarter consolidated revenue per available unit (RevPAR) increased 6.7% year-over-year and 5.1% sequentially. First quarter consolidated weighted average occupancy increased 160 basis points, accelerating from recent year-over-year growth trends and outperforming normal seasonal expectations. Delivered 27.6% first quarter same community operating margin, highest reported margin rate since the initial impact of the pandemic, when excluding prior period grant income. Net income (loss) improved 34% year-over-year while Adjusted EBITDA grew 10%, exceeding previously provided guidance range. Recognized with the most communities on U.S. News & World Report "Best of" senior living list for third consecutive year and named an Argentum 2024 "Best of the Best" award winner for innovative Brookdale HealthPlus program. "Through the continued successful execution of our key strategic priorities and our relentless dedication to the health and well-being of our residents and associates, we continue to drive meaningful favorable progress in our day-to-day community operations, and in our financial results," said Lucinda ("Cindy") Baier, Brookdale's President and CEO. "Our consistent forward progress each quarter reinforces my confidence that the plans we are executing, combined with favorable industry supply and demand dynamics, and Brookdale's key differentiators, will support our ability to enrich the lives of even more seniors and to capture the incredible opportunity that lies ahead." SUMMARY OF FIRST QUARTER FINANCIAL RESULTS Consolidated summary of operating results and metrics: Year-Over-Year Increase / (Decrease) Sequential Increase / (Decrease) ($ in millions, except RevPAR and RevPOR) 1Q 2024 1Q 2023 Amount Percent 4Q 2023 Amount Percent Resident fees $   744.2 $   713.4 $     30.8 4.3 % $   716.6 $     27.6 3.9 % Facility operating expense 542.6 530.8 11.8 2.2 % 530.5 12.1 2.3 % Cash facility operating lease payments 64.6 56.9 7.7 13.4 % 64.5 0.1 0.1 % Net income (loss) (29.6) (44.6) (15.0) (33.6) % (91.2) (61.6) (67.6) % Adjusted EBITDA (1) 97.6 88.6 9.0 10.1 % 85.3 12.3 14.4 % RevPAR $   4,854 $   4,551 $       303 6.7 % $   4,619 $       235 5.1 % Weighted average occupancy 77.9 % 76.3 % 160 bps n/a 78.4 % (50) bps n/a RevPOR $   6,228 $   5,963 $       265 4.4 % $   5,889 $       339 5.8 % (1) Adjusted EBITDA is a financial measure that is not calculated in accordance with GAAP. See "Non-GAAP Financial Measures" for the Company's definition of such measure, reconciliations to the most comparable GAAP financial measure, and other important information regarding the use of the Company's non-GAAP financial measures.   Same community(2) summary of operating results and metrics: Year-Over-Year Increase / (Decrease) SequentialIncrease / (Decrease) ($ in millions, except RevPAR and RevPOR) 1Q 2024 1Q 2023 Amount Percent 4Q 2023 Amount Percent Resident fees $   729.1 $   685.9 $     43.2 6.3 % $   694.7 $     34.4 5.0 % Facility operating expense $   527.7 $   506.1 $     21.6 4.3 % $   512.2 $     15.5 3.0 % RevPAR $   4,849 $   4,562 $       287 6.3 % $   4,620 $       229 5.0 % Weighted average occupancy 78.0 % 76.5 % 150 bps n/a 78.5 % (50) bps n/a RevPOR $   6,218 $   5,960 $       258 4.3 % $   5,883 $       335 5.7 % (2) The same community senior housing portfolio includes operating results and data for 611 communities consolidated and operational for the full period in both comparison years. Consolidated communities excluded from the same community portfolio include communities acquired or disposed of since the beginning of the prior year, communities classified as assets held for sale, certain communities planned for disposition, certain communities that have undergone or are undergoing expansion, redevelopment, and repositioning projects, and certain communities that have experienced a casualty event that significantly impacts their operations. To aid in comparability, same community operating results exclude natural disaster expense.   Recent consolidated occupancy trend: 2023 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Weighted average 76.6 % 76.3 % 76.1 % 76.2 % 76.6 % 76.8 % 77.1 % 77.6 % 78.2 % 78.6 % 78.4 % 78.3 % Month end 77.6 % 77.4 % 77.6 % 77.6 % 78.1 % 78.2 % 78.5 % 79.3 % 79.7 % 79.5 % 79.6 % 79.3 %   2024 Jan Feb Mar Apr Weighted average 78.0 % 77.9 % 77.9 % 77.9 % Month end 79.3 % 79.2 % 79.1 % 79.2 %   OVERVIEW OF FIRST QUARTER RESULTS Resident fees. 1Q 2024 vs 1Q 2023: Resident fees increased primarily due to the increases in RevPOR and occupancy, partially offset by the disposition of communities, primarily through lease terminations, since the beginning of the prior year period, which resulted in $16.3 million less in resident fees during the first quarter of 2024. The increase in RevPOR was primarily the result of annual in-place rate increases effective January 1, 2024. The increase in occupancy primarily reflects the impact of the Company's execution on key initiatives to rebuild occupancy lost due to the pandemic. 1Q 2024 vs 4Q 2023: Resident fees increased primarily due to the increase in RevPOR, reflecting the annual in-place rate increases effective January 1, 2024. The increase was partially offset by the 50 basis point decrease in weighted average occupancy and the disposition of communities, primarily through lease terminations, since the beginning of the prior period, which resulted in $8.3 million less in resident fees during the first quarter of 2024.   Facility operating expense. 1Q 2024 vs 1Q 2023: The increase in facility operating expense was primarily due to broad inflationary pressure, an additional day of expense due to the leap year, and an increase in property repair expense primarily as a result of severe weather events. These increases were partially offset by the disposition of communities since the beginning of the prior year period, which resulted in $13.7 million less in facility operating expense during the first quarter of 2024, and by a decrease in the use of premium labor, primarily contract labor. 1Q 2024 vs 4Q 2023: The increase in facility operating expense was primarily due to increases in estimated group health insurance expense, property repair expense primarily as a result of severe weather events, estimated incentive compensation expense, payroll taxes, and a seasonal increase in utilities expense. These increases were partially offset by the disposition of communities since the beginning of the prior period, which resulted in $6.6 million less in facility operating expense during the first quarter of 2024, and by one less day of expense compared to the prior year period.   Cash facility operating lease payments: The increase compared to the first quarter of 2023 was primarily due to a change in the classification of lease payments from financing leases to operating leases as a result of lease amendments subsequent to the beginning of the prior year period.   Net income (loss). 1Q 2024 vs 1Q 2023: The decrease in net loss was primarily due to the increase in resident fees, partially offset by the increase in facility operating expense. 1Q 2024 vs 4Q 2023: The decrease in net loss was primarily due to a $29.3 million decrease in asset impairment expense, the increase in resident fees, and a decrease in provision for income taxes, partially offset by the increase in facility operating expense.   Adjusted EBITDA. 1Q 2024 vs 1Q 2023: The increase in Adjusted EBITDA was primarily due to the increase in resident fees partially offset by the increase in facility operating expense and the change in classification of $7.4 million of lease payments for 35 communities as cash facility operating lease payments as a result of lease amendments subsequent to the prior year period. 1Q 2024 vs 4Q 2023: The increase in Adjusted EBITDA was primarily due to the increase in resident fees and partially offset by the increase in facility operating expense. LIQUIDITY Year-Over-Year Increase / (Decrease) Sequential Increase / (Decrease) ($ in millions) 1Q 2024 1Q 2023 Amount 4Q 2023 Amount Net cash provided by (used in) operating activities $            (1.1) $           24.0 $                 (25.1) $           29.3 $                 (30.4) Non-development capital expenditures, net 50.6 62.9 (12.3) 41.5 9.1 Adjusted Free Cash Flow (3) (26.3) (21.2) (5.1) (21.5) (4.8) (3) Adjusted Free Cash Flow is a financial measure that is not calculated in accordance with GAAP. See "Non-GAAP Financial Measures" for the Company's definition of such measure, reconciliations to the most comparable GAAP financial measure, and other important information regarding the use of the Company's non-GAAP financial measures.   Net cash provided by (used in) operating activities. 1Q 2024 vs 1Q 2023: The change in net cash provided by (used in) operating activities was primarily due to an increase in payments under our annual and long-term incentive compensation programs, a decrease in cash received associated with government grants and credits, and the increase in facility operating expense, partially offset by the increase in resident fees. 1Q 2024 vs 4Q 2023: The change in net cash provided by (used in) operating activities was primarily due to payments under our annual and long-term incentive compensation programs and annual insurance premium payments made in the first quarter of 2024, partially offset by the increase in resident fees.   Non-development capital expenditures, net. 1Q 2024 vs 1Q 2023: The decrease in non-development capital expenditures, ...