Sonida Senior Living Announces First Quarter 2024 Results
Sonida Senior Living, Inc. announced strong Q1 2024 results with increased liquidity, revenue, and net income. The company's consolidated portfolio saw growth in occupancy, revenue, and net operating income. The Private Placement and Protective Life Loan Purchase significantly improved the company's financial position. Sonida is well-positioned for strategic expansion and value creation for shareholders.
Increased liquidity through Private Placement and ATM Sales Agreement
Improved financial results in Q1 2024 with revenue and net income growth
Consolidated portfolio showed growth in occupancy, revenue per available unit, and net operating income
Strong performance in Adjusted EBITDA with a 21.5% increase year-over-year
Strategic expansion opportunities and focus on shareholder value creation
Operating expenses and general administrative expenses increased in Q1 2024
Decrease in Community Net Operating Income Margin from Q4 2023 to Q1 2024
Potential impact of economic conditions on liquidity and capital funding
Risks related to future liquidity, capital requirements, and economic changes
Insights
“We achieved strong across-the-board results during the first quarter of 2024, executing on our key financial and operational priorities with year-over-year occupancy, revenue and community net operating income all demonstrating continued growth. With our recent balance sheet and liquidity advancements, Sonida has meaningfully positioned itself for strategic expansion and continued momentum, with an eye on shareholder value creation into the second quarter and beyond. I am truly proud of our team, as our inherent focus on serving seniors with our signature programs and services is clearly being reflected in the strength of our performance,” said Brandon Ribar, President and CEO.
First Quarter Highlights
-
Liquidity significantly improved in Q1 2024 with our private placement transaction of 5,026,318 shares of common stock at
$9.50 $47.8 million -
On April 1, 2024, the Company entered into an At-the-Market Issuance Sales Agreement with Mizuho Securities
USA LLC, whereby the Company may sell, at its option, shares of its common stock up to an aggregate offering price of$75,000,000 $10.3 million -
Using proceeds from the Private Placement, purchased
$74.4 million $40.2 million $49.6 million -
Weighted average occupancy for the Company’s consolidated portfolio increased 200 basis points to
85.9% , comparing Q1 2024 to Q1 2023. -
Resident revenue increased
$4.1 million 7.3% , comparing Q1 2024 to Q1 2023. -
Net income for the Q1 2024 was
$27.0 million $38.1 million -
Q1 2024 Adjusted EBITDA, a non-GAAP measure, was
$9.5 million 21.5% year-over-year and1.8% in sequential quarters, driven primarily by continued improvement in operations. -
Results for the Company’s consolidated portfolio of communities:
-
Q1 2024 vs. Q1 2023:
-
Revenue Per Available Unit (“RevPAR”) increased
8.3% to$3,557 -
Revenue Per Occupied Unit (“RevPOR”) increased
5.9% to$4,140 -
Community Net Operating Income, a non-GAAP measure, increased
$1.5 million $14.9 million $2.0 million $14.9 million $11.4 million -
Community Net Operating Income Margin and Adjusted Community Net Operating Income Margin (non-GAAP measures with the latter adjusted for non-recurring state grant revenue) were
24.6% and24.6% , for Q1 2024, respectively, and23.7% and20.8% for Q1 2023, respectively.
-
Revenue Per Available Unit (“RevPAR”) increased
-
Q1 2024 vs. Q4 2023:
-
RevPAR increased
2.5% to$3,557 -
RevPOR increased
2.4% to$4,140 -
Community Net Operating Income decreased
$1.4 million $14.9 million -
Community Net Operating Income Margin was
24.6% and27.4% for Q1 2024 and Q4 2023, respectively.
-
RevPAR increased
-
Q1 2024 vs. Q1 2023:
SONIDA SENIOR LIVING, INC. SUMMARY OF CONSOLIDATED FINANCIAL RESULTS THREE MONTHS ENDED MARCH 31, 2024 (in thousands) |
|||||||||||
|
Three Months Ended March 31, |
|
Three Months
|
||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
Consolidated results |
|
|
|
|
|
||||||
Resident revenue (1) |
$ |
60,737 |
|
|
$ |
56,606 |
|
|
$ |
59,349 |
|
Management fees |
|
594 |
|
|
|
505 |
|
|
|
586 |
|
Operating expenses |
|
46,317 |
|
|
|
43,808 |
|
|
|
44,367 |
|
General and administrative expenses |
|
7,211 |
|
|
|
7,063 |
|
|
|
9,946 |
|
Gain on extinguishment of debt, net |
|
38,148 |
|
|
|
36,339 |
|
|
|
— |
|
Other income (expense), net |
|
(479 |
) |
|
|
189 |
|
|
|
(480 |
) |
Income (loss) before provision for income taxes (1) |
|
27,085 |
|
|
|
24,214 |
|
|
|
(14,581 |
) |
Net income (loss) (1) |
|
27,019 |
|
|
|
24,145 |
|
|
|
(14,629 |
) |
Adjusted EBITDA (1) (2) |
|
9,473 |
|
|
|
7,794 |
|
|
|
9,302 |
|
Community net operating income (NOI) (1) (2) |
|
14,915 |
|
|
|
13,402 |
|
|
|
16,260 |
|
Community net operating income margin (1) (2) |
|
24.6 |
% |
|
|
23.7 |
% |
|
|
27.4 |
% |
Weighted average occupancy |
|
85.9 |
% |
|
|
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 |
|||||||||||
Results of Operations
Three months ended March 31, 2024 as compared to three months ended March 31, 2023
Revenues
Resident revenue for the three months ended March 31, 2024 was
Expenses
Operating expenses for the three months ended March 31, 2024 were
General and administrative expenses for the three months ended March 31, 2024 were
Gain on extinguishment of debt for the three months ended March 31, 2024 was
As a result of the foregoing factors, the Company reported net income of
Adjusted EBITDA for the three months ended March 31, 2024 was
Liquidity, Capital Resources, and Subsequent Events
Liquidity
During 2023, the Company's liquidity conditions, including operating losses and a net working capital deficit, raised substantial doubt about the Company's ability to continue as a going concern. As a result of increases in occupancy in 2023 and 2024, annual rental rate increases in March 2024 and the Private Placement and Protective Life Loan Purchase, the Company has substantially improved its liquidity position. In addition,
Increase in Authorized Shares of Common Stock
On March 21, 2024, following receipt of stockholder approval at the Special Meeting of the Company’s stockholders held on March 21, 2024, the Company filed an amendment to the Company’s Amended and Restated Certificate of Incorporation, as amended, with the
Securities Purchase Agreement
On February 1, 2024, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with affiliates of Conversant Capital and several other shareholders (together, the “Investors”), pursuant to which the Investors agreed to purchase from the Company, and the Company agreed to sell to the Investors, in a private placement transaction pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, an aggregate of 5,026,318 shares of the Company’s Common Stock at a price of
The Private Placement occurred in two closings. The Company issued and sold an aggregate of 3,350,878 shares to the Investors and received gross cash proceeds of
Protective Life Loan Purchase
On February 2, 2024, the Company completed the Protective Life Loan Purchase of the total outstanding principal balance of
Ally Term Loan Expansion
On February 2, 2024, in connection with the Protective Life Loan Purchase, the Company expanded its outstanding term loan with Ally Bank by
Cash flows
The table below presents a summary of the Company’s net cash provided by (used in) operating, investing, and financing activities (in thousands):
|
Three months ended March 31, |
|
|
||||||||
|
|
2024 |
|
|
|
2023 |
|
|
$ Change |
||
Net cash provided by (used in) operating activities |
$ |
(4,105 |
) |
|
$ |
3,249 |
|
|
$ |
(7,354 |
) |
Net cash used in investing activities |
|
(5,131 |
) |
|
|
(5,086 |
) |
|
|
(45 |
) |
Net cash provided by (used in) financing activities |
|
29,149 |
|
|
|
(3,759 |
) |
|
|
32,908 |
|
Increase (decrease) in cash and cash equivalents |
$ |
19,913 |
|
|
$ |
(5,596 |
) |
|
$ |
25,509 |
|
In addition to
In addition to the Private Placement and Ally term loan expansion on April 1, 2024, the Company entered into the At-the-Market Issuance Sales Agreement with Mizuho Securities
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 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 December 31, 2023, filed with the SEC on March 27, 2024.
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 March 31, 2024, on Friday May 10, 2024, at 12:30 p.m. Eastern Time. To participate, dial 877-407-0989 (no passcode required). A link to the simultaneous webcast of the teleconference will be available at: https://www.webcast-eqs.com/register/sonidaseniorliving_q12024_en/en.
For the convenience of the Company’s shareholders and the public, the conference call will be recorded and available for replay starting May 11, 2024 through May 24, 2024. To access the conference call replay, call 877-660-6853, passcode 13743707. A transcript of the call will be posted in the Investor Relations section of the Company’s website.
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 Sonida Senior Living, Inc. (the “Company,” “we,” “our” or “us”) to differ materially from those indicated in the forward-looking statements, including, among others, the risks, uncertainties and factors set forth under “Item. 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on March 27, 2024, and also include the following: the Company’s ability to generate sufficient cash flows from operations, proceeds from equity issuances and debt financings, and proceeds from the sale of assets to satisfy its short- and long-term debt obligations and to fund the Company’s acquisitions and capital improvement projects to expand, redevelop, and/or reposition its senior living communities; increases in market interest rates that increase the cost of certain of our debt obligations; increased competition for, or a shortage of, skilled workers, including due to general labor market conditions, along with wage pressures resulting from such increased competition, low unemployment levels, use of contract labor, minimum wage increases and/or changes in overtime laws; the Company’s ability to obtain additional capital on terms acceptable to it; the Company’s ability to extend or refinance its existing debt as such debt matures; the Company’s compliance with its debt agreements, including certain financial covenants, and the risk of cross-default in the event such non-compliance occurs; the Company’s ability to complete acquisitions and dispositions upon favorable terms or at all; the risk of oversupply and increased competition in the markets which the Company operates; the Company’s ability to improve and maintain controls over financial reporting and remediate the identified material weakness discussed in its recent Quarterly and Annual Reports filed with the SEC; the cost and difficulty of complying with applicable licensure, legislative oversight, or regulatory changes; risks associated with current global economic conditions and general economic factors such as inflation, the consumer price index, commodity costs, fuel and other energy costs, competition in the labor market, costs of salaries, wages, benefits, and insurance, interest rates, and tax rates; the impact from or the potential emergence and effects of a future epidemic, pandemic, outbreak of infectious disease or other health crisis; and changes in accounting principles and interpretations.
For information about Sonida Senior Living, visit www.sonidaseniorliving.com or connect with the Company on Facebook, Twitter or LinkedIn.
Sonida Senior Living, Inc. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except per share data) |
||||||||
|
|
Three Months Ended
|
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Revenues: |
|
|
|
|
||||
Resident revenue |
|
$ |
60,737 |
|
|
$ |
56,606 |
|
Management fees |
|
|
594 |
|
|
|
505 |
|
Managed community reimbursement revenue |
|
|
6,107 |
|
|
|
4,962 |
|
Total revenues |
|
|
67,438 |
|
|
|
62,073 |
|
Expenses: |
|
|
|
|
||||
Operating expense |
|
|
46,317 |
|
|
|
43,808 |
|
General and administrative expense |
|
|
7,211 |
|
|
|
7,063 |
|
Depreciation and amortization expense |
|
|
9,935 |
|
|
|
9,881 |
|
Managed community reimbursement expense |
|
|
6,107 |
|
|
|
4,962 |
|
Total expenses |
|
|
69,570 |
|
|
|
65,714 |
|
Other income (expense): |
|
|
|
|
||||
Interest income |
|
|
139 |
|
|
|
194 |
|
Interest expense |
|
|
(8,591 |
) |
|
|
(8,867 |
) |
Gain on extinguishment of debt, net |
|
|
38,148 |
|
|
|
36,339 |
|
Other income (expense), net |
|
|
(479 |
) |
|
|
189 |
|
Income before provision for income taxes |
|
|
27,085 |
|
|
|
24,214 |
|
Provision for income taxes |
|
|
(66 |
) |
|
|
(69 |
) |
Net income |
|
|
27,019 |
|
|
|
24,145 |
|
Undeclared dividends on Series A convertible preferred stock |
|
|
(1,335 |
) |
|
|
(1,198 |
) |
Undistributed net income allocated to participating securities |
|
|
(2,849 |
) |
|
|
(3,182 |
) |
Net income attributable to common stockholders |
|
$ |
22,835 |
|
|
$ |
19,765 |
|
|
|
|
|
|
||||
Weighted average common shares outstanding — basic |
|
|
9,861 |
|
|
|
6,855 |
|
Weighted average common shares outstanding — diluted |
|
|
10,562 |
|
|
|
7,168 |
|
|
|
|
|
|
||||
Basic net income per common share |
|
$ |
2.32 |
|
|
$ |
2.88 |
|
Diluted net income per common share |
|
$ |
2.16 |
|
|
$ |
2.76 |
|
Sonida Senior Living, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except per share amounts) |
|||||||
|
March 31,
|
|
December 31,
|
||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
24,211 |
|
|
$ |
4,082 |
|
Restricted cash |
|
13,452 |
|
|
|
13,668 |
|
Accounts receivable, net |
|
10,346 |
|
|
|
8,017 |
|
Prepaid expenses and other assets |
|
3,412 |
|
|
|
4,475 |
|
Derivative assets |
|
2,130 |
|
|
|
2,103 |
|
Total current assets |
|
53,551 |
|
|
|
32,345 |
|
Property and equipment, net |
|
581,902 |
|
|
|
588,179 |
|
Other assets, net |
|
824 |
|
|
|
936 |
|
Total assets |
$ |
636,277 |
|
|
$ |
621,460 |
|
Liabilities and Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
4,864 |
|
|
$ |
11,375 |
|
Accrued expenses |
|
39,747 |
|
|
|
42,388 |
|
Current portion of notes payable, net of deferred loan costs |
|
6,831 |
|
|
|
42,323 |
|
Deferred income |
|
4,255 |
|
|
|
4,041 |
|
Federal and state income taxes payable |
|
288 |
|
|
|
215 |
|
Other current liabilities |
|
512 |
|
|
|
519 |
|
Total current liabilities |
|
56,497 |
|
|
|
100,861 |
|
Notes payable, net of deferred loan costs and current portion |
|
571,267 |
|
|
|
587,099 |
|
Other long-term liabilities |
|
40 |
|
|
|
49 |
|
Total liabilities |
|
627,804 |
|
|
|
688,009 |
|
Commitments and contingencies |
|
|
|
||||
Redeemable preferred stock: |
|
|
|
||||
Series A convertible preferred stock, |
|
49,877 |
|
|
|
48,542 |
|
Shareholders’ deficit: |
|
|
|
||||
Authorized shares - 15,000 as of March 31, 2024 and December 31, 2023; none issued or outstanding, except Series A convertible preferred stock as noted above |
|
— |
|
|
|
— |
|
Authorized shares - 30,000 and |
|
132 |
|
|
|
82 |
|
Additional paid-in capital |
|
349,610 |
|
|
|
302,992 |
|
Retained deficit |
|
(391,146 |
) |
|
|
(418,165 |
) |
Total shareholders’ deficit |
|
(41,404 |
) |
|
|
(115,091 |
) |
Total liabilities, redeemable preferred stock and shareholders’ deficit |
$ |
636,277 |
|
|
$ |
621,460 |
|
Sonida Senior Living, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
27,019 |
|
|
$ |
24,145 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
9,935 |
|
|
|
9,881 |
|
Amortization of deferred loan costs |
|
324 |
|
|
|
366 |
|
Gain on sale of assets, net |
|
(192 |
) |
|
|
(251 |
) |
Loss on derivative instruments, net |
|
527 |
|
|
|
572 |
|
Gain on extinguishment of debt |
|
(38,148 |
) |
|
|
(36,339 |
) |
Provision for bad debt |
|
397 |
|
|
|
237 |
|
Non-cash stock-based compensation expense |
|
575 |
|
|
|
902 |
|
Other non-cash items |
|
(3 |
) |
|
|
(1 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
(2,726 |
) |
|
|
(48 |
) |
Prepaid expenses and other assets |
|
1,063 |
|
|
|
1,159 |
|
Other assets, net |
|
(41 |
) |
|
|
62 |
|
Accounts payable and accrued expense |
|
(3,123 |
) |
|
|
1,828 |
|
Federal and state income taxes payable |
|
73 |
|
|
|
260 |
|
Deferred income |
|
214 |
|
|
|
438 |
|
Other current liabilities |
|
1 |
|
|
|
38 |
|
Net cash provided by (used in) operating activities |
|
(4,105 |
) |
|
|
3,249 |
|
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
|
(5,762 |
) |
|
|
(5,429 |
) |
Proceeds from sale of assets |
|
631 |
|
|
|
343 |
|
Net cash used in investing activities |
|
(5,131 |
) |
|
|
(5,086 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from notes payable |
|
24,830 |
|
|
|
— |
|
Repayments of notes payable |
|
(41,999 |
) |
|
|
(3,714 |
) |
Proceeds from issuance of common stock, net |
|
47,641 |
|
|
|
— |
|
Purchase of interest rate cap |
|
(554 |
) |
|
|
— |
|
Deferred loan costs paid |
|
(549 |
) |
|
|
— |
|
Other financing costs |
|
(220 |
) |
|
|
(45 |
) |
Net cash provided by (used in) financing activities |
|
29,149 |
|
|
|
(3,759 |
) |
Increase (decrease) in cash and cash equivalents and restricted cash |
|
19,913 |
|
|
|
(5,596 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
17,750 |
|
|
|
30,742 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
37,663 |
|
|
$ |
25,146 |
|
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.
(Dollars in thousands) |
Three Months Ended
|
|
Three Months
|
||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
Community Net Operating Income |
|
|
|
|
|
||||||
Net income (loss) |
$ |
27,019 |
|
|
$ |
24,145 |
|
|
$ |
(14,629 |
) |
General and administrative expense |
|
7,211 |
|
|
|
7,063 |
|
|
|
9,946 |
|
Depreciation and amortization expense |
|
9,935 |
|
|
|
9,881 |
|
|
|
10,137 |
|
Interest income |
|
(139 |
) |
|
|
(194 |
) |
|
|
(87 |
) |
Interest expense |
|
8,591 |
|
|
|
8,867 |
|
|
|
9,673 |
|
Gain on extinguishment of debt |
|
(38,148 |
) |
|
|
(36,339 |
) |
|
|
— |
|
Other (income) expense, net |
|
479 |
|
|
|
(189 |
) |
|
|
480 |
|
Provision for income taxes |
|
66 |
|
|
|
69 |
|
|
|
48 |
|
Settlement (income) fees and expense, net (1) |
|
(99 |
) |
|
|
99 |
|
|
|
692 |
|
Community net operating income |
|
14,915 |
|
|
|
13,402 |
|
|
|
16,260 |
|
Resident revenue |
$ |
60,737 |
|
|
$ |
56,606 |
|
|
$ |
59,349 |
|
Community net operating income margin |
|
24.6 |
% |
|
|
23.7 |
% |
|
|
27.4 |
% |
|
|
|
|
|
|
||||||
COVID-19 state relief grants (2) |
|
— |
|
|
|
2,037 |
|
|
|
— |
|
Adjusted resident revenue |
|
60,737 |
|
|
|
54,569 |
|
|
|
59,349 |
|
Adjusted community net operating income |
$ |
14,915 |
|
|
$ |
11,365 |
|
|
$ |
16,260 |
|
Adjusted community net operating income margin |
|
24.6 |
% |
|
|
20.8 |
% |
|
|
27.4 |
% |
(1) Settlement fees and expenses relate to non-recurring settlements with third parties for contract terminations, insurance claims, and related fees. (2) 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 (loss) 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(loss) 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 |
|
|
|
2023 |
|
Adjusted EBITDA |
|
|
|
|
|
||||||
Net income (loss) |
$ |
27,019 |
|
|
$ |
24,145 |
|
|
$ |
(14,629 |
) |
Depreciation and amortization expense |
|
9,935 |
|
|
|
9,881 |
|
|
|
10,137 |
|
Stock-based compensation expense, net |
|
575 |
|
|
|
902 |
|
|
|
605 |
|
Provision for bad debt |
|
398 |
|
|
|
238 |
|
|
|
568 |
|
Interest income |
|
(139 |
) |
|
|
(194 |
) |
|
|
(87 |
) |
Interest expense |
|
8,591 |
|
|
|
8,867 |
|
|
|
9,673 |
|
Gain on extinguishment of debt, net |
|
(38,148 |
) |
|
|
(36,339 |
) |
|
|
— |
|
Other (income) expense, net |
|
479 |
|
|
|
(189 |
) |
|
|
480 |
|
Provision for income taxes |
|
66 |
|
|
|
69 |
|
|
|
48 |
|
Casualty losses (1) |
|
298 |
|
|
|
— |
|
|
|
348 |
|
Transaction and conversion costs (2) |
|
399 |
|
|
|
414 |
|
|
|
2,159 |
|
Adjusted EBITDA |
$ |
9,473 |
|
|
$ |
7,794 |
|
|
$ |
9,302 |
|
(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 |
|||||||||
|
First Quarter |
|
|
||||||
(Dollars in thousands) |
2024 |
|
2023 |
|
Increase
|
|
Fourth
|
|
Sequential
|
Selected Operating Results |
|
|
|
|
|
|
|
|
|
I. Consolidated community portfolio |
|
|
|
|
|
|
|
|
|
Number of communities |
61 |
|
62 |
|
(1) |
|
61 |
|
— |
Unit capacity |
5,692 |
|
5,747 |
|
(55) |
|
5,700 |
|
(8) |
Weighted average occupancy (1) |
|
|
|
|
|
|
|
|
—% |
RevPAR |
|
|
|
|
|
|
|
|
|
RevPOR |
|
|
|
|
|
|
|
|
|
Consolidated community net operating income |
|
|
|
|
|
|
|
|
|
Consolidated community net operating income margin (3) |
|
|
|
|
|
|
|
|
(2.8)% |
Consolidated community net operating income, net of general and administrative expenses (2) |
|
|
|
|
|
|
|
|
|
Consolidated community net operating income margin, net of general and administrative expenses (2) |
|
|
|
|
|
|
|
|
|
II. Consolidated Debt Information |
|
|
|
|
|
|
|
|
|
(Excludes insurance premium financing) |
|
|
|
|
|
|
|
|
|
Total variable rate mortgage debt |
|
|
|
|
N/A |
|
|
|
N/A |
Total fixed rate debt |
|
|
|
|
N/A |
|
|
|
N/A |
(1) Weighted average occupancy represents actual days occupied divided by total number of available days during the quarter. (2) General and administrative expenses exclude stock-based compensation expense in order to remove the fluctuation in fair value measurement due to market volatility.
(3) Includes |
|||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240510173742/en/
Investor Relations
Jason Finkelstein
Ignition Investor Relations
ir@sonidaliving.com
Source: Sonida Senior Living, Inc.
FAQ
What were Sonida Senior Living's Q1 2024 results?
What transactions contributed to Sonida's improved financial position?
What financial measures showed growth in Sonida's consolidated portfolio?
What opportunities is Sonida focusing on?
What risks should investors be aware of regarding Sonida Senior Living?
