Brookdale Senior Living Inc. (BKD) saw its loss narrow to $51.68 million, or $0.28 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $68.22 million, or $0.37 a share.
Revenue during the quarter went up marginally by 0.59 percent to $1,246.13 million from $1,238.84 million in the previous year period. Total expenses were 96.18 percent of quarterly revenues, down from 99.70 percent for the same period last year. This has led to an improvement of 353 basis points in operating margin to 3.82 percent.
Operating income for the quarter was $47.64 million, compared with $3.66 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $202.34 million compared with $173.54 million in the prior year period. At the same time, adjusted EBITDA margin improved 223 basis points in the quarter to 16.24 percent from 14.01 percent in the last year period.
Andy Smith, Brookdale's president and chief executive officer, said, "We are pleased with the improvement in our cash flows during the third quarter. We also made significant progress since the end of the prior quarter in our efforts to optimize our portfolio in order to simplify and streamline our business, to increase the quality and durability of our cash flow, to reduce our debt and lease leverage and to improve our liquidity. We continue to grow the cash flow of the Company bolstered by a planned reduction in capital expenditures, reduction of overhead and same community operating income growth of 1.8%."
Brookdale Senior Living Inc. expects revenue to be in the range of $4,150 million to $4,200 million for financial year 2016.
Operating cash flow improves significantly
Brookdale Senior Living Inc. has generated cash of $277.28 million from operating activities during the nine month period, up 37.14 percent or $75.10 million, when compared with the last year period.
The company has spent $54.37 million cash to meet investing activities during the nine month period as against cash outgo of $498.30 million in the last year period. It has incurred net capital expenditure of $44.48 million on net basis during the nine month period, down 84.86 percent or $249.23 million from year ago period.
The company has spent $236.75 million cash to carry out financing activities during the nine month period as against cash inflow of $262.42 million in the last year period.
Cash and cash equivalents stood at $74.18 million as on Sep. 30, 2016, up 5.39 percent or $3.79 million from $70.39 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Brookdale Senior Living Inc. was negative $246.27 million on Sep. 30, 2016 compared with negative $238.01 million on Sep. 30, 2015. Current ratio was at 0.69 as on Sep. 30, 2016, up from 0.67 on Sep. 30, 2015.
Days sales outstanding were almost stable at 11 days for the quarter, when compared with the last year period.
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