Brookdale Senior Living Inc. (BKD) saw its loss widen to $126.30 million, or $0.68 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $48.78 million, or $0.26 a share. Revenue during the quarter dropped 3.67 percent to $1,216.77 million from $1,263.16 million in the previous year period. Total expenses were 96.04 percent of quarterly revenues, down from 96.73 percent for the same period last year. This has led to an improvement of 68 basis points in operating margin to 3.96 percent.
Operating income for the quarter was $48.13 million, compared with $41.35 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $198.30 million compared with $182.74 million in the prior year period. At the same time, adjusted EBITDA margin improved 183 basis points in the quarter to 16.30 percent from 14.47 percent in the last year period.
Andy Smith, Brookdales president and chief executive officer, said, "Our focused efforts on improving operational execution led to meaningful year over year growth in our first quarter Adjusted EBITDA and Adjusted Free Cash Flow. In spite of a highly competitive environment, we produced reasonable rate growth and strong expense control to achieve same community operating income growth in a seasonally weak occupancy quarter."
Operating cash flow declinesBrookdale Senior Living Inc. has generated cash of $66.77 million from operating activities during the quarter, down 5.09 percent or $ 3.58 million, when compared with the last year period. The company has spent $200.37 million cash to meet investing activities during the quarter as against cash outgo of $74.45 million in the last year period. It has incurred net capital expenditure of $17.25 million on net basis during the quarter, down 72.58 percent or $45.67 million from year ago period.
The company has spent $23.55 million cash to carry out financing activities during the quarter as against cash outgo of $13.06 million in the last year period.
Cash and cash equivalents stood at $59.24 million as on Mar. 31, 2017, down 16.41 percent or $11.62 million from $70.86 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Brookdale Senior Living Inc. was negative $232.61 million on Mar. 31, 2017 compared with negative $388.42 million on Mar. 31, 2016. Current ratio was at 0.67 as on Mar. 31, 2017, up from 0.55 on Mar. 31, 2016.
Days sales outstanding were almost stable at 10 days for the quarter, when compared with the last year period.
Debt comes down
Brookdale Senior Living Inc. has recorded a decline in total debt over the last one year. It stood at $4,933.66 million as on Mar. 31, 2017, down 23.29 percent or $1,498.27 million from $6,431.92 million on Mar. 31, 2016. Total debt was 59.89 percent of total assets as on Mar. 31, 2017, compared with 64.39 percent on Mar. 31, 2016. Debt to equity ratio was at 2.52 as on Mar. 31, 2017, down from 2.66 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.97 for the quarter from 0.82 for the same period last year.
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