Brookdale Senior Living Inc. (NYSE:BKD) Q2 2020 Earnings Conference Call - Final Transcript

Aug 11, 2020 • 09:00 am ET


Brookdale Senior Living Inc. (NYSE:BKD) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, my name is Jerome, and I will be your conference operator today. At this time, I would like to welcome everyone to the Brookdale Senior Living Second Quarter Earnings Release Call. [Operator Instructions] I would now like to turn the call over to Kathy MacDonald of Investor Relations. Please go ahead.

Kathy MacDonald

Thank you, and good morning everyone. I'd like to welcome you to the second quarter 2020 earnings call for Brookdale Senior Living. Joining us today are Cindy Baier, our President and Chief Executive Officer, and Steve Swain, our Executive Vice President and Chief Financial Officer.

All statements today, which are not historical facts, may be deemed to be forward-looking statements within the meaning of the federal securities laws. These statements are made as of today's date, and we expressly disclaim any obligation to update these statements in the future. Actual results and performance may differ materially from forward-looking statements. Certain of these factors that could cause actual results to differ are detailed in the earnings release we issued yesterday, as well as in the reports we filed with the SEC from time to time, including the risk factors contained in our annual report on Form 10-K and quarterly reports on Form 10-Q. I direct you to the release for the full safe harbor statement.

Also, please note, that during this call, we will present non-GAAP financial measures. For reconciliations of each non-GAAP measure from the most comparable GAAP measure, I direct you to the release and supplemental information, which may be found at, and was furnished on an 8-K yesterday.

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

Lucinda M. Baier

Thank you, Kathy. Good morning to all of our shareholders, analysts, and other participants. Welcome to our second quarter earnings call. I want to start by saying thank you to everyone who is making a difference to fight COVID-19, those on the front lines fighting to protect and save lives, the researchers working on vaccines, and to each of you who make a difference by doing your part against the greatest public health emergency in the past century. This includes our inspiring associates who continue to work tirelessly to help ensure the health and well-being of our residents and patients.

Before I talk about our operations, I want to discuss the most significant transaction we completed since the beginning of our turnaround. In July, we completed a new multi-park transaction with our largest landlord, Ventas. We believe this transaction is a positive outcome for us, reducing our future lease payment by approximately $500 million over the remaining lease period through 2025, lowering our debt, and improving our cash flow. Prior to the Ventas transaction, we built liquidity and enabled us to make an upfront payment with an approximately one year cash flow payback. We believe this transaction improves Brookdale's financial foundation during an unprecedented time and better positions us to create long-term value for our shareholders.

Turning to operations. Brookdale's top priority