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Brookdale Senior Living Q4 Loss Widens; Names Andrew Smith CEO

Senior living communities operator Brookdale Senior Living, Inc. (BKD: Quote) reported Monday a loss for the fourth quarter that widened from last year, reflecting higher asset impairment charges. Meanwhile, revenues increased 4 percent amid improved average occupancy and average monthly revenue per unit.

Separately, the company announced that Andrew Smith is appointed the new chief executive officer to succeed Bill Sheriff, who had previously announced his intent to retire after 28 years with the company and its predecessors. Smith is currently the company's executive vice president and general counsel. Smith is expected to take over sometime next week after the company files its annual report on form 10-K. "We had a strong finish to the year as evidenced by the fourth quarter's occupancy increases across our segments and another good entry fee sales quarter. We are seeing some signs of improvements in the general economy that lend themselves to driving demand for our products," CEO Bill Sheriff said in a statement.

The Brentwood, Tennessee-based company reported a net loss of $24.49 million or $0.20 per share for the fourth quarter, wider than $14.88 million or $0.12 per share in the prior-year quarter.

On average, eight analysts polled by Thomson Reuters expected the company to report a loss of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.

The loss for the latest-quarter included non-cash items for depreciation and amortization, asset impairment, non-cash stock-based compensation expense, gain on facility lease termination and straight-line lease expense, net of deferred gain amortization.

Cash from facility operations or CFFO, for the quarter was $61.4 million or $0.50 per share. Excluding integration, transaction-related and EMR roll-out costs, CFFO was $68.7 million or $0.56 per share, compared to $64.8 million or $0.54 per share in the year-ago quarter.

Total revenue for the fourth quarter grew 4.1 percent to $699.7 million from $671.97 million in the same quarter last year, and matched five Wall Street analysts' consensus estimate of $699.55 million.

Resident fees increased 4.2 percent to $609.14 million from last year, and management fees grew 14.8 percent to $8.45 million from the year-ago quarter. Meanwhile, managed community reimbursed costs totaled $82.2 million.

Revenues for the consolidated senior housing portfolio grew 4.2 percent to $553.1 million, and revenues for the company's innovative senior care segment increased 4.2 percent to $56.1 million from last year. Average occupancy improved 90 basis points to 88.7 percent from last year, and average monthly revenue per unit for the senior housing portfolio improved 2.9 percent to $4,282 from the year-ago quarter. "A 70 basis point sequential increase in the fourth quarter occupancy is very strong for a portfolio our size. We experienced it across all of our segments and across multiple geographies," Co-President and CFO Mark Ohlendorf noted.

Asset impairment charges were $19.35 million, sharply higher than $2.05 million last year.

For fiscal 2012, the company reported a net loss of $65.65 million or $0.54 per share, narrower than $68.18 million or $0.56 per share in the prior year. Excluding integration, transaction-related and EMR roll-out costs, CFFO was $262.4 million or $2.15 per share, compared to $254.3 million or $2.11 per share in the year ago. Total revenue for the full year grew 12.7 percent to $2.77 billion from the previous year.

Street was looking for a full-year 2012 loss of $0.41 per share on annual revenues of $2.73 billion.

Looking ahead to fiscal 2013, the company expects CFFO in a range of $2.30 to $2.40 per share, excluding integration, transaction-related and EMR roll-out costs. Analysts expect the company to report breakeven per share results for fiscal 2013.

BKD closed Monday's regular trading session at $26.88, down $0.51 or 1.86% on a volume of 2.38 million shares.

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by RTT Staff Writer

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