Brookdale Senior Living Inc. (NYSE:BKD) Q3 2018 Earnings Conference Call Transcript

Nov 06, 2018 • 09:00 am ET


Brookdale Senior Living Inc. (NYSE:BKD) Q3 2018 Earnings Conference Call Transcript


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Kathy MacDonald

Thank you and good morning everyone. I would like to welcome you to the Third Quarter 2018 Earnings Call for Brookdale Senior Living.

Joining us today are Cindy Baier, our President and CEO; and Steve Swain, our EVP and CFO.

(Forward-Looking Cautionary Statements)

With that, I would like to turn the call over to Cindy.

Cindy Baier

Thank you, Kathy. Good morning to all of our shareholders, analysts, and other participants. Welcome to our third quarter 2018 earnings call. This morning I will provide an update on our turn around strategy and early thoughts about 2019, and Steve will provide our third quarter results and 2018 guidance.

Before I speak about the three pillars of our strategy, I would like to welcome Steve Swain, our new EVP and CFO. Steve joins us from DISH Network, ranked number 203 on the Fortune 500. He is a great fit for Brookdale because he is passionate about our mission and has a strong consumer focus. In fact, within his first 60 days, Steve has already served in communities within each of our three divisions. He wanted to walk in our associate chairs and learn the business from the community level up. Steve's finance expertise within large complex asset intensive businesses makes him a great addition to our leadership team.

In addition to welcoming Steve, I want to welcome Denise Warren to our Board of Directors and I thank Jeff Leeds for his service to the Board. Jeff retired after 13 years on our Board. He joined at the time of the IPO, served as Chairman for several years and saw our company grow from 380 communities to our current 900 plus footprint. I will personally miss his advice. Brookdale's top priority is the turnaround strategy to drive operational improvement. I will now share the progress we are making to turn around our business by winning locally.

Let me remind you of our three strategic priorities. Direct attractive long term returns to our shareholders by attracting and retaining the best associates and earning resident and family trust by delivering high quality care and services, which creates Brookdale advocates and generates future revenue referrals.

Let me start with our associates priority. Our associates are critical to our success because we take care of residents 24 hours a day, every day of the year. We are in a service business, where people are what matter most and the quality and dedication of our teams were clear as we protected our seniors during hurricanes Florence and Michael. These two hurricanes are also a good reminder of how Brookdale's scale allows us to provide the best support to our residents and patients.

During the two recent hurricanes, we had 240 communities and 34 agencies that could have been in harm's way. We evacuated nine communities with most of our residents moving to sister communities. Associates from our evacuated communities traveled and stayed with our residents. We came together as a family and with spirit team work, associates from neighboring states formed