Sonida Senior Living Announces Second Quarter 2024 Results
“Continued momentum through focused execution on our operational, financial and strategic growth initiatives resulted in another quarter of exceptional performance. In the second quarter, revenue, community net operating income, resident rates and occupancy all exhibited meaningful and accelerating gains both year-over-year and quarter-over-quarter. In addition to its strong operating performance, Sonida continued leaning into its strategic expansion goals by acquiring nine communities either outright or through joint ventures, creating further density in existing markets and entering new and attractive markets. Overall, I am encouraged by our progress in the first half of 2024, and we remain focused on providing value and care to our residents, all while advancing and strengthening the Company for our communities and stakeholders,” said
Second Quarter Highlights
- Weighted average occupancy for the Company’s owned same-store portfolio (“same-store”) increased 230 basis points to 86.2% from 83.9% in Q2 2023.
-
Same-store resident revenue increased
$5.7 million , or 10.0%, comparing Q2 2024 to Q2 2023, and increased$6.1 million , or 10.8% when excluding$0.4 million of state grant revenue received in Q2 2023. -
Net loss for Q2 2024 was
$9.8 million compared to$12.2 million for Q2 2023, representing a$2.4 million decrease in net loss. -
Q2 2024 Adjusted EBITDA, a non-GAAP measure, was
$11.4 million , representing an increase of$3.8 million , or 50.6% year-over-year and$1.9 million , or 19.8% in sequential quarters, driven primarily by continued improvement in operations. -
Results for the Company’s same-store, owned portfolio of 61 communities:
-
Q2 2024 vs. Q2 2023:
-
Revenue Per Available Unit (“RevPAR”) increased 11.3% to
$3,673 . -
Revenue Per Occupied Unit (“RevPOR”) increased 8.4% to
$4,263 . -
Community Net Operating Income, a non-GAAP measure, increased
$4.2 million to$17.7 million . Adjusted Community Net Operating Income, a non-GAAP measure, which excludes$0.4 million of state grant revenue received in Q2 2023 (none received in Q2 2024), was$13.1 million for Q2 2023. - Community Net Operating Income Margin a non-GAAP measure, was 28.2% for Q2 2024. Adjusted Community Net Operating Income Margin, a non-GAAP measure and adjusted for non-recurring state grant revenue, was 23.2% for Q2 2023.
-
Revenue Per Available Unit (“RevPAR”) increased 11.3% to
-
Q2 2024 vs. Q1 2024:
-
RevPAR increased 3.3% to
$3,673 . -
RevPOR increased 3.0% to
$4,263 . -
Community Net Operating Income increased
$2.8 million to$17.7 million . There were no state grants received during these periods. - Community Net Operating Income Margin was 28.2% and 24.6% for Q2 2024 and Q1 2024, respectively.
-
RevPAR increased 3.3% to
-
Q2 2024 vs. Q2 2023:
-
During
May 2024 , the Company acquired one senior housing community located inOhio (“Macedonia”) and invested in a joint venture (“Stone”) with partnerKZ Stone Investor LLC (“KZ Investor”) that acquired four senior housing communities located in the Midwest for which Sonida operates. -
In addition, during the quarter, the Company entered into an At-The-Market issuance sales agreement (“ATM Sales Agreement”), whereby the Company may sell, at its option, shares of its common stock up to an aggregate offering price of
$75.0 million . A total of$17.4 million of net proceeds were raised in Q2 2024 through our ATM Sales Agreement.
Subsequent Event Highlights
Investment in Joint Venture
On
Loan Modification
On
BMO Loan
On
Registration Statement
On
At-the-Market Equity Offerings
On
SUMMARY OF CONSOLIDATED FINANCIAL RESULTS
THREE MONTHS ENDED (in thousands) |
||||||||||||
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Three Months
|
||||||||
|
|
2024 |
|
2023 |
|
2024 |
||||||
Consolidated results |
|
|
|
|||||||||
Resident revenue (1) |
$ |
63,108 |
|
$ |
56,960 |
|
$ |
60,737 |
|
|||
Management fees |
|
720 |
|
|
531 |
|
|
594 |
|
|||
Managed community reimbursement revenue |
|
6,379 |
|
|
5,363 |
|
|
6,107 |
|
|||
Operating expenses |
|
45,981 |
|
|
44,662 |
|
|
46,317 |
|
|||
General and administrative expenses |
|
9,178 |
|
|
6,574 |
|
|
7,211 |
|
|||
Gain on extinguishment of debt, net |
|
— |
|
|
— |
|
|
38,148 |
|
|||
Other income (expense), net |
|
253 |
|
|
(117 |
) |
|
(479 |
) |
|||
Income (loss) before provision for income taxes (1) |
|
(9,757 |
) |
|
(12,159 |
) |
|
27,085 |
|
|||
Net income (loss) (1) |
|
(9,816 |
) |
|
(12,212 |
) |
|
27,019 |
|
|||
Adjusted EBITDA (1) (2) |
|
11,350 |
|
|
7,538 |
|
|
9,473 |
|
|||
Community net operating income (NOI) (1) (2) |
|
17,616 |
|
|
13,549 |
|
|
14,915 |
|
|||
Community net operating income margin (1) (2) |
|
27.9 |
% |
|
23.8 |
% |
|
24.6 |
% |
|||
Weighted average occupancy (3) |
|
85.7 |
% |
|
83.9 |
% |
|
85.9 |
% |
|||
(1) Includes |
||||||||||||
(2) Adjusted EBITDA, Community Net Operating Income, and Community Net Operating Income Margin are financial measures that are not calculated in accordance with |
||||||||||||
(3) Includes the acquired community in |
Results of Operations
Three months ended
Revenues
Resident revenue for the three months ended
Managed community reimbursement revenue for the three months ended
Expenses
Operating expenses for the three months ended
General and administrative expenses for the three months ended
Interest expense for the three months ended
As a result of the foregoing factors, the Company reported net loss of
Adjusted EBITDA for the three months ended
Six months ended
Revenues
Resident revenue for the six months ended
Managed community reimbursement revenue for the six months ended
Expenses
Operating expenses for the six months ended
General and administrative expenses for the six months ended
Interest expense for the six months ended
Gain on extinguishment of debt for the six months ended
As a result of the foregoing factors, the Company reported net income of
Liquidity, Capital Resources, and Subsequent Events
Liquidity
Increase in Authorized Shares of Common Stock
On
Securities Purchase Agreement
On
As of
At-the-Market Sales
On
2024 Loan Repurchase Agreement
On
Ally Term Loan Expansion
On
On
Cashflows
The table below presents a summary of the Company’s net cash provided by (used in) operating, investing, and financing activities (in thousands):
|
Six Months ended
|
|
|
|||||||||
|
2024 |
|
2023 |
|
$ Change |
|||||||
Net cash provided by (used in) operating activities |
$ |
(1,624 |
) |
$ |
5,537 |
|
$ |
(7,161 |
) |
|||
Net cash used in investing activities |
|
(42,715 |
) |
|
(9,355 |
) |
|
(33,360 |
) |
|||
Net cash provided by (used in) financing activities |
|
50,372 |
|
|
(6,304 |
) |
|
56,676 |
|
|||
Increase (decrease) in cash and cash equivalents |
$ |
6,033 |
|
$ |
(10,122 |
) |
$ |
16,155 |
|
In addition to
The Company, from time to time, considers and evaluates financial and capital raising transactions related to its portfolio, including debt refinancings, purchases and sales of assets, equity offerings, and other transactions. There can be no assurance that the Company will continue to generate cash flows at or above current levels, or that the Company will be able to obtain the capital necessary to meet the Company’s short and long-term capital requirements.
Recent changes in the current economic environment, and other future changes, could result in decreases in the fair value of assets, slowing of transactions, and the tightening of liquidity and credit markets. These impacts could make securing debt or refinancings for the Company or buyers of the Company’s properties more difficult or on terms not acceptable to the Company. The Company’s actual liquidity and capital funding requirements depend on numerous factors, including its operating results, its capital expenditures for community investment, and general economic conditions, as well as other factors described in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended
Conference Call Information
The Company will host a conference call with senior management to discuss the Company’s financial results for the three months ended
For the convenience of the Company’s shareholders and the public, the conference call will be recorded and available for replay starting
About the Company
Definitions of RevPAR and RevPOR
RevPAR, or average monthly revenue per available unit, is defined by the Company as resident revenue for the period, divided by the weighted average number of available units in the corresponding portfolio for the period, divided by the number of months in the period.
RevPOR, or average monthly revenue per occupied unit, is defined by the Company as resident revenue for the period, divided by the weighted average number of occupied units in the corresponding portfolio for the period, divided by the number of months in the period.
Safe Harbor
This release contains forward-looking statements which are subject to certain risks and uncertainties that could cause our actual results and financial condition of
For information about
Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except per share data) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Resident revenue |
$ |
63,108 |
|
|
$ |
56,960 |
|
|
$ |
123,845 |
|
|
$ |
113,566 |
|
Management fees |
|
720 |
|
|
|
531 |
|
|
|
1,314 |
|
|
|
1,036 |
|
Managed community reimbursement revenue |
|
6,379 |
|
|
|
5,363 |
|
|
|
12,486 |
|
|
|
10,325 |
|
Total revenues |
|
70,207 |
|
|
|
62,854 |
|
|
|
137,645 |
|
|
|
124,927 |
|
Expenses: |
|
|
|
|
|
|
|
||||||||
Operating expense |
|
45,981 |
|
|
|
44,662 |
|
|
|
92,298 |
|
|
|
88,470 |
|
General and administrative expense |
|
9,178 |
|
|
|
6,574 |
|
|
|
16,389 |
|
|
|
13,637 |
|
Depreciation and amortization expense |
|
10,067 |
|
|
|
9,927 |
|
|
|
20,002 |
|
|
|
19,808 |
|
Managed community reimbursement expense |
|
6,379 |
|
|
|
5,363 |
|
|
|
12,486 |
|
|
|
10,325 |
|
Total expenses |
|
71,605 |
|
|
|
66,526 |
|
|
|
141,175 |
|
|
|
132,240 |
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest income |
|
387 |
|
|
|
188 |
|
|
|
526 |
|
|
|
382 |
|
Interest expense |
|
(8,964 |
) |
|
|
(8,558 |
) |
|
|
(17,555 |
) |
|
|
(17,425 |
) |
Gain on extinguishment of debt, net |
|
— |
|
|
|
— |
|
|
|
38,148 |
|
|
|
36,339 |
|
Loss from equity method investment |
|
(35 |
) |
|
|
— |
|
|
|
(35 |
) |
|
|
— |
|
Other income (expense), net |
|
253 |
|
|
|
(117 |
) |
|
|
(226 |
) |
|
|
72 |
|
Income (loss) before provision for income taxes |
|
(9,757 |
) |
|
|
(12,159 |
) |
|
|
17,328 |
|
|
|
12,055 |
|
Provision for income taxes |
|
(59 |
) |
|
|
(53 |
) |
|
|
(125 |
) |
|
|
(122 |
) |
Net income (loss) |
|
(9,816 |
) |
|
|
(12,212 |
) |
|
|
17,203 |
|
|
|
11,933 |
|
Undeclared dividends on Series A convertible preferred stock |
|
(1,372 |
) |
|
|
(1,230 |
) |
|
|
(2,707 |
) |
|
|
(2,428 |
) |
Undistributed net income allocated to participating securities |
|
— |
|
|
|
— |
|
|
|
(1,425 |
) |
|
|
(1,419 |
) |
Net income (loss) attributable to common stockholders |
$ |
(11,188 |
) |
|
$ |
(13,442 |
) |
|
$ |
13,071 |
|
|
$ |
8,086 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding — basic |
|
13,014 |
|
|
|
6,381 |
|
|
|
11,438 |
|
|
|
6,374 |
|
Weighted average common shares outstanding — diluted |
|
13,014 |
|
|
|
6,381 |
|
|
|
12,143 |
|
|
|
6,856 |
|
|
|
|
|
|
|
|
|
||||||||
Basic net income (loss) per common share |
$ |
(0.86 |
) |
|
$ |
(2.11 |
) |
|
$ |
1.14 |
|
|
$ |
1.27 |
|
Diluted net income (loss) per common share |
$ |
(0.86 |
) |
|
$ |
(2.11 |
) |
|
$ |
1.08 |
|
|
$ |
1.18 |
|
Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except per share amounts) |
|||||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
9,491 |
|
|
$ |
4,082 |
|
Restricted cash |
|
14,292 |
|
|
|
13,668 |
|
Accounts receivable, net |
|
9,145 |
|
|
|
8,017 |
|
Prepaid expenses and other assets |
|
5,231 |
|
|
|
4,475 |
|
Derivative assets |
|
2,071 |
|
|
|
2,103 |
|
Total current assets |
|
40,230 |
|
|
|
32,345 |
|
Property and equipment, net |
|
587,516 |
|
|
|
588,179 |
|
Investment in unconsolidated entity |
|
22,307 |
|
|
|
— |
|
Other assets, net |
|
2,194 |
|
|
|
936 |
|
Total assets |
$ |
652,247 |
|
|
$ |
621,460 |
|
Liabilities and Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
8,951 |
|
|
$ |
11,375 |
|
Accrued expenses |
|
37,324 |
|
|
|
42,388 |
|
Current portion of notes payable, net of deferred loan costs |
|
2,235 |
|
|
|
42,323 |
|
Deferred income |
|
4,356 |
|
|
|
4,041 |
|
Federal and state income taxes payable |
|
93 |
|
|
|
215 |
|
Other current liabilities |
|
599 |
|
|
|
519 |
|
Total current liabilities |
|
53,558 |
|
|
|
100,861 |
|
Notes payable, net of deferred loan costs and current portion |
|
581,520 |
|
|
|
587,099 |
|
Other long-term liabilities |
|
31 |
|
|
|
49 |
|
Total liabilities |
|
635,109 |
|
|
|
688,009 |
|
Commitments and contingencies |
|
|
|
||||
Redeemable preferred stock: |
|
|
|
||||
Series A convertible preferred stock, |
|
51,248 |
|
|
|
48,542 |
|
Shareholders’ deficit: |
|
|
|
||||
Authorized shares - 15,000 as of |
|
— |
|
|
|
— |
|
Authorized shares - 30,000 and 15,000 as of |
|
142 |
|
|
|
82 |
|
Additional paid-in capital |
|
366,710 |
|
|
|
302,992 |
|
Retained deficit |
|
(400,962 |
) |
|
|
(418,165 |
) |
Total shareholders’ deficit |
|
(34,110 |
) |
|
|
(115,091 |
) |
Total liabilities, redeemable preferred stock and shareholders’ deficit |
$ |
652,247 |
|
|
$ |
621,460 |
|
Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) |
|||||||
|
|
||||||
|
Six Months Ended
|
||||||
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
17,203 |
|
|
$ |
11,933 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
20,002 |
|
|
|
19,808 |
|
Amortization of deferred loan costs |
|
722 |
|
|
|
788 |
|
Gain on sale of assets, net |
|
(192 |
) |
|
|
(251 |
) |
Loss on derivative instruments, net |
|
1,606 |
|
|
|
1,103 |
|
Gain on extinguishment of debt |
|
(38,148 |
) |
|
|
(36,339 |
) |
Loss from equity method investment |
|
35 |
|
|
|
— |
|
Provision for bad debt |
|
881 |
|
|
|
334 |
|
Non-cash stock-based compensation expense |
|
1,786 |
|
|
|
1,503 |
|
Other non-cash items |
|
(3 |
) |
|
|
(1 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
(2,008 |
) |
|
|
(1,807 |
) |
Prepaid expenses and other assets |
|
(756 |
) |
|
|
1,316 |
|
Other assets, net |
|
(199 |
) |
|
|
294 |
|
Accounts payable and accrued expense |
|
(2,791 |
) |
|
|
6,100 |
|
Federal and state income taxes payable |
|
(122 |
) |
|
|
61 |
|
Deferred income |
|
315 |
|
|
|
723 |
|
Other current liabilities |
|
45 |
|
|
|
(28 |
) |
Net cash provided by (used in) operating activities |
|
(1,624 |
) |
|
|
5,537 |
|
Cash flows from investing activities: |
|
|
|
||||
Acquisition of unconsolidated entities |
|
(22,342 |
) |
|
|
— |
|
Community acquisition |
|
(11,105 |
) |
|
|
— |
|
Capital expenditures |
|
(9,899 |
) |
|
|
(9,698 |
) |
Proceeds from sale of assets |
|
631 |
|
|
|
343 |
|
Net cash used in investing activities |
|
(42,715 |
) |
|
|
(9,355 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of common stock, net |
|
65,079 |
|
|
|
— |
|
Proceeds from notes payable |
|
36,648 |
|
|
|
— |
|
Repayments of notes payable |
|
(48,475 |
) |
|
|
(5,893 |
) |
Purchase of interest rate cap |
|
(1,851 |
) |
|
|
— |
|
Deferred loan costs paid |
|
(633 |
) |
|
|
(327 |
) |
Other financing costs |
|
(396 |
) |
|
|
(84 |
) |
Net cash provided by (used in) financing activities |
|
50,372 |
|
|
|
(6,304 |
) |
Increase (decrease) in cash and cash equivalents and restricted cash |
|
6,033 |
|
|
|
(10,122 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
17,750 |
|
|
|
30,742 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
23,783 |
|
|
$ |
20,620 |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
This earnings release contains the financial measures (1) Community Net Operating Income and Adjusted Community Net Operating Income, (2) Community Net Operating Income Margin and Adjusted Community Net Operating Income Margin, (3) Adjusted EBITDA, (4) Revenue per Occupied Unit (RevPOR) and (5) Revenue per Available Unit (RevPAR), all of which are not calculated in accordance with
Community Net Operating Income and Community Net Operating Income Margin are non-GAAP performance measures for the Company’s consolidated owned portfolio of communities that the Company defines as net income (loss) excluding: general and administrative expenses (inclusive of stock-based compensation expense), interest income, interest expense, other income/expense, provision for income taxes, settlement fees and expenses, revenue and operating expenses from the Company’s disposed properties; and further adjusted to exclude income/expense associated with non-cash, non-operational, transactional, or organizational restructuring items that management does not consider as part of the Company’s underlying core operating performance and impacts the comparability of performance between periods. For the periods presented herein, such other items include depreciation and amortization expense, gain(loss) on extinguishment of debt, gain(loss) on disposition of assets, long-lived asset impairment, and loss on non-recurring settlements with third parties. The Community Net Operating Income Margin is calculated by dividing Community Net Operating Income by resident revenue. Adjusted Community Net Operating Income and Adjusted Community Net Operating Income Margin are further adjusted to exclude the impact from non-recurring state grant funds received.
The Company believes that presentation of Community Net Operating Income, Community Net Operating Income Margin, Adjusted Community Net Operating Income, and Adjusted Community Net Operating Income Margin as performance measures are useful to investors because (i) they are one of the metrics used by the Company’s management to evaluate the performance of our core consolidated owed portfolio of communities, to review the Company’s comparable historic and prospective core operating performance of the consolidated owned communities, and to make day-to-day operating decisions; (ii) they provide an assessment of operational factors that management can impact in the short-term, namely revenues and the controllable cost structure of the organization, by eliminating items related to the Company’s financing and capital structure and other items that management does not consider as part of the Company’s underlying core operating performance, and impacts the comparability of performance between periods.
Community Net Operating Income, Net Community Operating Income Margin, Adjusted Community Net Operating Income, and Adjusted Community Net Operating Income Margin have material limitations as a performance measure, including: (i) excluded general and administrative expenses are necessary to operate the Company and oversee its communities; (ii) excluded interest is necessary to operate the Company’s business under its current financing and capital structure; (iii) excluded depreciation, amortization, and impairment charges may represent the wear and tear and/or reduction in value of the Company’s communities, and other assets and may be indicative of future needs for capital expenditures; and (iv) the Company may incur income/expense similar to those for which adjustments are made, such as gain (loss) on debt extinguishment, gain(loss) on disposition of assets, loss on settlements, non-cash stock-based compensation expense, and transaction and other costs, and such income/expense may significantly affect the Company’s operating results.
SAME-STORE NET OPERATING INCOME AND SAME-STORE NET OPERATING INCOME MARGIN (UNAUDITED)
Same-Store Net Operating Income and Same-Store Net Operating Income Margin are non-GAAP performance measures for the Company’s portfolio of 61 owned continuing communities that the Company defines as net income (loss) excluding: general and administrative expenses, interest income, interest expense, other income/expense, provision for income taxes, settlement fees and expenses, and further adjusted to exclude income/expense associated with non-cash, non-operational, transactional, or organizational restructuring items that management does not consider as part of the Company’s underlying core operating performance and that management believes impact the comparability of performance between periods. For the periods presented herein, such other items include stock-based compensation expense, depreciation and amortization expense, long-lived asset impairment, gain on extinguishment of debt, loss from equity method investment, and other income (expense), net.
The Company believes that presentation of Same-Store Net Operating Income and Same-Store Net Operating Income Margin as performance measures are useful to investors because (i) they are one of the metrics used by the Company’s management to evaluate the performance of our core portfolio of 61 owned continuing communities, to review the Company’s comparable historic and prospective core operating performance of the 61 owned continuing communities, and to make day-to-day operating decisions; (ii) they provide an assessment of operational factors that management can impact in the short-term, namely revenues and the controllable cost structure of the organization, by eliminating items related to the Company’s financing and capital structure and other items that management does not consider as part of the Company’s underlying core operating performance, and that management believes impact the comparability of performance between periods.
Same-Store Net Operating Income and Same-Store Net Operating Income Margin have material limitations as a performance measure, including: (i) excluded interest is necessary to operate the Company’s business under its current financing and capital structure; (ii) excluded depreciation, amortization and impairment charges may represent the wear and tear and/or reduction in value of the Company’s communities, and other assets and may be indicative of future needs for capital expenditures; and (iii) the Company may incur income/expense similar to those for which adjustments are made, such as gain(loss) on sale of assets, gain(loss) debt extinguishment, loss on equity method investment, non-cash stock-based compensation expense, and transaction and other costs, and such income/expense may significantly affect the Company’s operating results.
(Dollars in thousands) |
Three Months Ended
|
|
Three Months
|
|
Six Months Ended
|
||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
||||||||||
Same-store community net operating income (1) |
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) |
$ |
(9,816 |
) |
|
$ |
(12,212 |
) |
|
$ |
27,019 |
|
|
$ |
17,203 |
|
|
$ |
11,933 |
|
General and administrative expense |
|
9,178 |
|
|
|
6,574 |
|
|
|
7,211 |
|
|
|
16,389 |
|
|
|
13,637 |
|
Depreciation and amortization expense |
|
10,067 |
|
|
|
9,927 |
|
|
|
9,935 |
|
|
|
20,002 |
|
|
|
19,808 |
|
Interest income |
|
(387 |
) |
|
|
(188 |
) |
|
|
(139 |
) |
|
|
(526 |
) |
|
|
(382 |
) |
Interest expense |
|
8,964 |
|
|
|
8,558 |
|
|
|
8,591 |
|
|
|
17,555 |
|
|
|
17,425 |
|
Gain on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(38,148 |
) |
|
|
(38,148 |
) |
|
|
(36,339 |
) |
Loss from equity method investment |
|
35 |
|
|
|
— |
|
|
|
— |
|
|
|
35 |
|
|
|
||
Other (income) expense, net |
|
(253 |
) |
|
|
117 |
|
|
|
479 |
|
|
|
226 |
|
|
|
(72 |
) |
Provision for income taxes |
|
59 |
|
|
|
53 |
|
|
|
66 |
|
|
|
125 |
|
|
|
122 |
|
Settlement (income) fees and expense, net (2) |
|
(231 |
) |
|
|
720 |
|
|
|
(99 |
) |
|
|
(330 |
) |
|
|
819 |
|
Consolidated community net operating income |
|
17,616 |
|
|
|
13,549 |
|
|
|
14,915 |
|
|
|
32,531 |
|
|
|
26,951 |
|
Net operating loss for non same-store communities (1) |
|
65 |
|
|
|
— |
|
|
|
— |
|
|
|
65 |
|
|
|
— |
|
Same-store community net operating income |
|
17,681 |
|
|
|
13,549 |
|
|
|
14,915 |
|
|
|
32,596 |
|
|
|
26,951 |
|
Resident revenue |
$ |
63,108 |
|
|
$ |
56,960 |
|
|
$ |
60,737 |
|
|
$ |
123,845 |
|
|
$ |
113,566 |
|
Resident revenue for non same-store communities (1) |
|
369 |
|
|
|
— |
|
|
|
— |
|
|
|
369 |
|
|
|
— |
|
Same-store community resident revenue |
|
62,739 |
|
|
|
56,960 |
|
|
|
60,737 |
|
|
|
123,476 |
|
|
|
113,566 |
|
Same-store community net operating income margin |
|
28.2 |
% |
|
|
23.8 |
% |
|
|
24.6 |
% |
|
|
26.4 |
% |
|
|
23.7 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
COVID-19 state relief grants (3) |
|
— |
|
|
|
411 |
|
|
|
— |
|
|
|
— |
|
|
|
2,448 |
|
Adjusted resident revenue |
|
63,108 |
|
|
|
56,549 |
|
|
|
60,737 |
|
|
|
123,476 |
|
|
|
111,118 |
|
Adjusted community net operating income |
$ |
17,681 |
|
|
$ |
13,138 |
|
|
$ |
14,915 |
|
|
$ |
32,596 |
|
|
$ |
24,503 |
|
Adjusted community net operating income margin |
|
28.2 |
% |
|
|
23.2 |
% |
|
|
24.6 |
% |
|
|
26.4 |
% |
|
|
22.1 |
% |
(1) Q2 2024 excludes one senior living community acquired by the Company in |
|||||||||||||||||||
(2) Settlement fees and expenses relate to non-recurring settlements with third parties for contract terminations, insurance claims, and related fees. |
|||||||||||||||||||
(3) COVID-19 relief revenue are grants and other funding received from third parties to aid in the COVID-19 response and includes State Relief Funds received. |
ADJUSTED EBITDA (UNAUDITED)
Adjusted EBITDA is a non-GAAP performance measures that the Company defines as net income (loss) excluding: depreciation and amortization expense, interest income, interest expense, other expense/income, provision for income taxes; and further adjusted to exclude income/expense associated with non-cash, non-operational, transactional, or organizational restructuring items that management does not consider as part of the Company’s underlying core operating performance and impacts the comparability of performance between periods. For the periods presented herein, such other items include stock-based compensation expense, provision for bad debts, gain on extinguishment of debt, gain on sale of assets, long-lived asset impairment, casualty losses, and transaction and conversion costs.
The Company believes that presentation of Adjusted EBITDA’s impact as a performance measure is useful to investors because it provides an assessment of operational factors that management can impact in the short-term, namely revenues and the controllable cost structure of the organization, by eliminating items related to the Company’s financing and capital structure and other items that management does not consider as part of the Company’s underlying core operating performance and that management believes impact the comparability of performance between periods.
Adjusted EBITDA has material limitations as a performance measure, including: (i) excluded interest is necessary to operate the Company’s business under its current financing and capital structure; (ii) excluded depreciation, amortization and impairment charges may represent the wear and tear and/or reduction in value of the Company’s communities and other assets and may be indicative of future needs for capital expenditures; and (iii) the Company may incur income/expense similar to those for which adjustments are made, such as bad debts, gain(loss) on sale of assets, or gain on debt extinguishment, non-cash stock-based compensation expense and transaction and other costs, and such income/expense may significantly affect the Company’s operating results.
(In thousands) |
Three Months Ended
|
|
Three Months
|
|||||||||
|
2024 |
|
2023 |
|
2024 |
|||||||
Adjusted EBITDA |
|
|
|
|||||||||
Net income (loss) |
$ |
(9,816 |
) |
$ |
(12,212 |
) |
$ |
27,019 |
|
|||
Depreciation and amortization expense |
|
10,067 |
|
|
9,927 |
|
|
9,935 |
|
|||
Stock-based compensation expense |
|
1,211 |
|
|
601 |
|
|
575 |
|
|||
Provision for bad debt |
|
483 |
|
|
96 |
|
|
398 |
|
|||
Interest income |
|
(387 |
) |
|
(188 |
) |
|
(139 |
) |
|||
Interest expense |
|
8,964 |
|
|
8,558 |
|
|
8,591 |
|
|||
Gain on extinguishment of debt, net |
|
— |
|
|
— |
|
|
(38,148 |
) |
|||
Other (income) expense, net |
|
(253 |
) |
|
117 |
|
|
479 |
|
|||
Provision for income taxes |
|
59 |
|
|
53 |
|
|
66 |
|
|||
Casualty losses (1) |
|
557 |
|
|
456 |
|
|
298 |
|
|||
Transaction and conversion costs (2) |
|
465 |
|
|
130 |
|
|
399 |
|
|||
Adjusted EBITDA |
$ |
11,350 |
|
$ |
7,538 |
|
$ |
9,473 |
|
|||
(1) Casualty losses relate to non-recurring insured claims for unexpected events. |
||||||||||||
(2) Transaction and conversion costs relate to legal and professional fees incurred for transactions, restructure activities, or related projects. |
SUPPLEMENTAL INFORMATION |
|||||||||||||||||||
|
|
|
|
||||||||||||||||
|
Second Quarter |
|
|
||||||||||||||||
(Dollars in thousands) |
2024 |
|
2023 |
|
Increase
|
|
First
|
|
Sequential
|
||||||||||
Selected Operating Results |
|
|
|
|
|
|
|
|
|
||||||||||
I. Same-store community portfolio (1) |
|
|
|
|
|
|
|
|
|
||||||||||
Number of communities owned 100% |
|
61 |
|
|
|
62 |
|
|
|
(1 |
) |
|
|
61 |
|
|
|
— |
|
Unit capacity |
|
5,694 |
|
|
|
5,753 |
|
|
|
(59 |
) |
|
|
5,692 |
|
|
|
2 |
|
Weighted average occupancy (2) |
|
86.2 |
% |
|
|
83.9 |
% |
|
|
2.3 |
% |
|
|
85.9 |
% |
|
|
0.3 |
% |
RevPAR |
$ |
3,673 |
|
|
$ |
3,300 |
|
|
$ |
373 |
|
|
$ |
3,557 |
|
|
$ |
116 |
|
RevPOR |
$ |
4,263 |
|
|
$ |
3,932 |
|
|
$ |
331 |
|
|
$ |
4,140 |
|
|
$ |
123 |
|
Consolidated community net operating income |
$ |
17,681 |
|
|
$ |
13,549 |
|
|
$ |
4,132 |
|
|
$ |
14,915 |
|
|
$ |
2,766 |
|
Consolidated community net operating income margin (3) |
|
28.2 |
% |
|
|
23.8 |
% |
|
|
4.4 |
% |
|
|
24.6 |
% |
|
|
3.6 |
% |
Consolidated community net operating income, net of general and administrative expenses (4) |
$ |
8,503 |
|
|
$ |
7,576 |
|
|
$ |
927 |
|
|
$ |
7,704 |
|
|
$ |
799 |
|
Consolidated community net operating income margin, net of general and administrative expenses (4) |
|
13.5 |
% |
|
|
13.4 |
% |
|
|
0.1 |
% |
|
|
12.7 |
% |
|
|
0.8 |
% |
II. Consolidated Debt Information |
|
|
|
|
|
|
|
|
|
||||||||||
(Excludes insurance premium financing) |
|
|
|
|
|
|
|
|
|
||||||||||
Total variable rate mortgage debt |
$ |
171,531 |
|
|
$ |
137,453 |
|
|
|
N/A |
|
|
$ |
162,114 |
|
|
|
N/A |
|
Total fixed rate debt |
$ |
412,943 |
|
|
$ |
499,078 |
|
|
|
N/A |
|
|
$ |
418,275 |
|
|
|
N/A |
|
(1) Q2 2024 excludes one senior living community acquired by the Company in |
|||||||||||||||||||
(2) Weighted average occupancy represents actual days occupied divided by total number of available days during the quarter. |
|||||||||||||||||||
(3) Includes |
|||||||||||||||||||
(4) General and administrative expenses exclude stock-based compensation expense in order to remove the fluctuation in fair value measurement due to market volatility. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240812645012/en/
Ignition Investor Relations
ir@sonidaliving.com
Source: