Sonida Senior Living, Inc. Announces Fourth Quarter and Full Year 2023 Results
“2023 was a transformational year for Sonida. We achieved significant performance milestones while accomplishing key strategic objectives and delivering industry-leading care and services to our residents. These achievements included balance sheet optimization through the comprehensive restructuring of our debt culminating in the
Fourth Quarter and Full Year Highlights
-
Liquidity significantly improved, resolving any uncertainty around continuing as a going concern. This was facilitated by our private placement executed in
February 2024 resulting in cash proceeds of$47.8 million and concurrent Protective Life debt purchase. - Weighted average occupancy for the Company’s consolidated portfolio increased 200 basis points to 85.9%, comparing Q4 2023 to Q4 2022.
-
Resident revenue increased
$6.0 million , or 11.2%, comparing Q4 2023 to Q4 2022. -
Net loss for the fourth quarter was
$14.6 million . -
Fourth quarter Adjusted EBITDA, a non-GAAP measure, was
$9.3 million representing an increase of 103.5% year-over-year and 0.3% in sequential quarters, driven primarily by continued improvement in operations. -
Net cash provided by operating activities was
$10.7 million year-to-date as compared to a net use of$2.6 million for the year ended 2022. -
Results for the Company’s consolidated portfolio of communities:
-
Q4 2023 vs. Q4 2022:
-
Revenue Per Available Unit (“RevPAR”) increased 12.6% to
$3,470 . -
Revenue Per Occupied Unit (“RevPOR”) increased 10.0% to
$4,042 . -
Community Net Operating Income, a non-GAAP measure, was
$16.3 million and$10.3 million for Q4 2023 and Q4 2022, respectively, representing an increase of$6.0 million . There were no state grants received during these periods. - Community Net Operating Income Margin, a non-GAAP measure, was 27.4% and 19.3%, for Q4 2023 and Q4 2022, respectively.
-
Revenue Per Available Unit (“RevPAR”) increased 12.6% to
-
Q4 2023 vs. Q3 2023:
-
RevPAR increased 70 basis points to
$3,470 . -
RevPOR decreased 50 basis points to
$4,042 . -
Community Net Operating Income increased
$1.6 million to$16.3 million . Adjusted Community Net Operating Income, excluding$0.5 million of state grant revenue received in Q3 2023 (none recognized in Q4 2023), was$16.3 million and$14.2 million for Q4 2023 and Q3 2023, respectively. - Community Net Operating Income Margin was 27.4% and 24.8% for Q4 2023 and Q3 2023, respectively, representing an increase of 10.7%.
-
RevPAR increased 70 basis points to
-
Q4 2023 vs. Q4 2022:
SUMMARY OF CONSOLIDATED FINANCIAL RESULTS
THREE MONTHS ENDED AND YEARS ENDED |
|||||||||||||||
Three Months Ended
|
Three Months
|
Years Ended |
|||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
Consolidated results |
|
|
|
|
|
||||||||||
Resident revenue (1) |
$ |
59,349 |
|
$ |
53,388 |
|
$ |
59,117 |
|
$ |
232,032 |
|
$ |
208,703 |
|
Management fees |
|
586 |
|
|
523 |
|
|
569 |
|
|
2,191 |
|
|
2,359 |
|
Operating expense |
|
44,367 |
|
|
45,073 |
|
|
44,486 |
|
|
177,323 |
|
|
171,635 |
|
General and administrative expense |
|
9,946 |
|
|
6,723 |
|
|
8,615 |
|
|
32,198 |
|
|
30,286 |
|
Gain (loss) on extinguishment of debt, net |
|
— |
|
|
— |
|
|
— |
|
|
36,339 |
|
|
(641 |
) |
Long-lived asset impairment |
|
— |
|
|
1,588 |
|
|
5,965 |
|
|
5,965 |
|
|
1,588 |
|
Other income (expense), net (2) |
|
(480 |
) |
|
1,348 |
|
|
— |
|
|
(532 |
) |
|
10,011 |
|
Loss before provision for income taxes (1)(2) |
|
(14,581 |
) |
|
(16,742 |
) |
|
(18,328 |
) |
|
(20,854 |
) |
|
(54,315 |
) |
Net loss (1)(2) |
|
(14,629 |
) |
|
(16,574 |
) |
|
(18,411 |
) |
|
(21,107 |
) |
|
(54,401 |
) |
Adjusted EBITDA (1)(3) |
|
9,302 |
|
|
4,572 |
|
|
9,270 |
|
|
33,904 |
|
|
16,981 |
|
Community net operating income (NOI) (3) |
$ |
16,260 |
|
$ |
10,324 |
|
$ |
14,690 |
|
$ |
57,899 |
|
$ |
41,418 |
|
Community net operating income margin (3) |
|
27.4 |
% |
|
19.3 |
% |
|
24.8 |
% |
|
25.0 |
% |
|
19.8 |
% |
Weighted average occupancy |
|
85.9 |
% |
|
83.9 |
% |
|
84.9 |
% |
|
84.6 |
% |
|
83.0 |
% |
(1) Includes
(2) Includes
(3) 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
Revenues
Resident revenue for the three months ended
Expenses
Operating expenses for the three months ended
General and administrative expenses for the three months ended
The Company reported a net loss of
Adjusted EBITDA for the three months ended
Year ended
Revenues
Resident revenue for the year ended
Expenses
Operating expenses for the year ended
General and administrative expenses for the year ended
Gain on extinguishment of debt for the year ended
During the year ended
Other expense for the year ended
As a result of the foregoing factors, the Company reported net loss of
Adjusted EBITDA for the year ended
Liquidity, Capital Resources, and Subsequent Events
Liquidity
At the beginning of 2023, the Company's liquidity conditions, including operating losses and net working capital deficits, raised substantial doubt about the Company's ability to continue as a going concern. As a result of increases in occupancy and rates occurring throughout 2023 and into the first quarter of 2024, annually scheduled rental rate increases in
Securities Purchase Agreement
On
The Private Placement occurred in two closings. At the first closing, which was completed on
The Company intends to use this new capital for working capital, continued investments in community improvements, acquisitions of new communities, broader community programming and other general corporate purposes.
Protective Life Loans
On
Ally Term Loan Expansion
On
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):
Years ended |
||||||
|
|
2023 |
|
|
2022 |
|
Net cash provided by (used in) operating activities |
$ |
10,683 |
|
$ |
(2,578 |
) |
Net cash used in investing activities |
|
(16,562 |
) |
|
(36,904 |
) |
Net cash used in financing activities |
|
(7,113 |
) |
|
(22,652 |
) |
Decrease in cash and cash equivalents |
$ |
(12,992 |
) |
$ |
(62,134 |
) |
In addition to
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 the Company’s
Conference Call Information
The Company will host a conference call with senior management to discuss the Company’s financial results for the fourth quarter and full year 2023, on
For the convenience of the Company’s shareholders and the public, the conference call will be recorded and available for replay starting
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
For information about
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except per share data) |
||||||||||||||
Quarters Ended |
Years Ended |
|||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||
Revenues: |
|
|
|
|
||||||||||
Resident revenue |
$ |
59,349 |
|
$ |
53,388 |
|
$ |
232,032 |
|
$ |
208,703 |
|
||
Management fees |
|
586 |
|
|
523 |
|
|
2,191 |
|
|
2,359 |
|
||
Managed community reimbursement revenue |
|
5,785 |
|
|
5,614 |
|
|
21,099 |
|
|
27,371 |
|
||
Total revenues |
$ |
65,720 |
|
$ |
59,525 |
|
$ |
255,322 |
|
$ |
238,433 |
|
||
Expenses: |
|
|
|
|
||||||||||
Operating expense |
|
44,367 |
|
|
45,073 |
|
|
177,323 |
|
|
171,635 |
|
||
General and administrative expense |
|
9,946 |
|
|
6,723 |
|
|
32,198 |
|
|
30,286 |
|
||
Depreciation and amortization expense |
|
10,137 |
|
|
9,508 |
|
|
39,888 |
|
|
38,448 |
|
||
Long-lived asset impairment |
|
— |
|
|
1,588 |
|
|
5,965 |
|
|
1,588 |
|
||
Managed community reimbursement revenue |
|
5,785 |
|
|
5,614 |
|
|
21,099 |
|
|
27,371 |
|
||
Total expenses |
|
70,235 |
|
|
68,506 |
|
|
276,473 |
|
|
269,328 |
|
||
Other income (expense): |
||||||||||||||
Interest income |
|
87 |
|
|
188 |
|
|
608 |
|
|
235 |
|
||
Interest expense |
|
(9,673 |
) |
|
(9,297 |
) |
|
(36,118 |
) |
|
(33,025 |
) |
||
Gain (loss) on extinguishment of debt, net |
|
— |
|
|
— |
|
|
36,339 |
|
|
(641 |
) |
||
Other income (expense), net |
|
(480 |
) |
|
1,348 |
|
|
(532 |
) |
|
10,011 |
|
||
Income (loss) before provision for income taxes |
|
(14,581 |
) |
|
(16,742 |
) |
|
(20,854 |
) |
|
(54,315 |
) |
||
(Provision) benefit for income taxes |
|
(48 |
) |
|
168 |
|
|
(253 |
) |
|
(86 |
) |
||
Net loss |
$ |
(14,629 |
) |
$ |
(16,574 |
) |
$ |
(21,107 |
) |
$ |
(54,401 |
) |
||
Dividends on Series A convertible preferred stock |
|
— |
|
|
— |
|
|
— |
|
|
(2,269 |
) |
||
Undeclared dividends on Series A convertible preferred |
|
(1,299 |
) |
|
(1,168 |
) |
|
(4,992 |
) |
|
(2,300 |
) |
||
Net loss attributable to common stockholders |
$ |
(15,928 |
) |
$ |
(17,742 |
) |
$ |
(26,099 |
) |
$ |
(58,970 |
) |
||
Per share data: |
|
|
|
|
||||||||||
Basic net loss per share |
$ |
(2.17 |
) |
$ |
(2.79 |
) |
$ |
(3.85 |
) |
$ |
(9.27 |
) |
||
Diluted net loss per share |
$ |
(2.17 |
) |
$ |
(2.79 |
) |
$ |
(3.85 |
) |
$ |
(9.27 |
) |
||
Weighted average shares outstanding — basic |
|
7,331 |
|
|
6,365 |
|
|
6,786 |
|
|
6,359 |
|
||
Weighted average shares outstanding — diluted |
|
7,331 |
|
|
6,365 |
|
|
6,786 |
|
|
6,359 |
|
||
Comprehensive loss |
$ |
(14,629 |
) |
$ |
(16,574 |
) |
$ |
(21,107 |
) |
$ |
(54,401 |
) |
CONSOLIDATED BALANCE SHEET (in thousands) |
||||
|
|
|
||
ASSETS |
|
|
||
Current assets: |
|
|
||
Cash and cash equivalents |
$ |
4,082 |
$ |
16,913 |
Restricted cash |
|
13,668 |
|
13,829 |
Accounts receivable, net |
|
8,017 |
|
6,114 |
Federal and state income taxes receivable |
|
— |
|
2 |
Prepaid expenses and other |
|
4,475 |
|
4,097 |
Derivative assets, current |
|
2,103 |
|
2,611 |
Total current assets |
|
32,345 |
|
43,566 |
Property and equipment, net |
|
588,179 |
|
615,754 |
Derivative assets, non-current |
|
— |
|
111 |
Other assets, net |
|
936 |
|
1,837 |
Total assets |
$ |
621,460 |
$ |
661,268 |
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
|
|
||
Current liabilities: |
|
|
||
Accounts payable |
$ |
11,375 |
$ |
7,272 |
Accrued expenses |
|
42,388 |
|
36,944 |
Current portion of notes payable, net of deferred loan costs |
|
42,323 |
|
46,029 |
Current portion of deferred income |
|
4,041 |
|
3,419 |
Federal and state income taxes payable |
|
215 |
|
— |
Customer deposits |
|
519 |
|
653 |
Total current liabilities |
|
100,861 |
|
94,317 |
Other long-term liabilities |
|
49 |
|
113 |
Notes payable, net of deferred loan costs and current portion |
|
587,099 |
|
625,002 |
Total liabilities |
|
688,009 |
|
719,432 |
Commitments and contingencies | ||||||
Redeemable preferred stock: |
||||||
Series A convertible preferred stock, |
|
48,542 |
|
|
43,550 |
|
Shareholders’ deficit: |
||||||
Preferred stock, |
||||||
Authorized shares — 15,000 as of |
|
— |
|
|
— |
|
Common stock, |
||||||
Authorized shares — 15,000 as of |
|
82 |
|
|
67 |
|
Additional paid-in capital |
|
302,992 |
|
|
295,277 |
|
Retained deficit |
|
(418,165 |
) |
|
(397,058 |
) |
Total shareholders’ deficit |
|
(115,091 |
) |
|
(101,714 |
) |
Total liabilities, redeemable preferred stock and shareholders’ deficit |
$ |
621,460 |
|
$ |
661,268 |
|
Consolidated Statements of Cash Flows (in thousands) |
||||||
Years Ended |
||||||
(In thousands) |
|
2023 |
|
|
2022 |
|
Operating Activities |
|
|
||||
Net loss |
$ |
(21,107 |
) |
$ |
(54,401 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
||||
Depreciation and amortization |
|
39,888 |
|
|
38,448 |
|
Amortization of deferred loan costs |
|
1,552 |
|
|
1,281 |
|
(Gain) loss on derivative instruments, net |
|
2,981 |
|
|
(19 |
) |
Write-off of other assets |
|
— |
|
|
535 |
|
Loss on sale of assets, net |
|
118 |
|
|
43 |
|
Long-lived asset impairment |
|
5,965 |
|
|
1,588 |
|
Casualty impairments |
|
— |
|
|
1,100 |
|
(Gain) loss on extinguishment of debt |
|
(36,339 |
) |
|
641 |
|
Provision for bad debt |
|
1,151 |
|
|
1,159 |
|
Non-cash stock-based compensation expense |
|
2,749 |
|
|
4,327 |
|
Other non-cash items |
|
(53 |
) |
|
(498 |
) |
Changes in operating assets and liabilities: |
|
|
||||
Accounts receivable, net |
|
(3,249 |
) |
|
(2,354 |
) |
Prepaid expenses and other assets |
|
2,918 |
|
|
8,303 |
|
Other assets, net |
|
276 |
|
|
(141 |
) |
Accounts payable and accrued expenses |
|
13,013 |
|
|
(2,245 |
) |
Federal and state income taxes receivable/payable |
|
217 |
|
|
(601 |
) |
Deferred income |
|
622 |
|
|
257 |
|
Customer deposits |
|
(19 |
) |
|
(1 |
) |
Net cash provided by (used in) operating activities |
|
10,683 |
|
|
(2,578 |
) |
Investing Activities |
|
|
||||
Acquisition of new communities |
|
— |
|
|
(12,342 |
) |
Capital expenditures |
|
(17,938 |
) |
|
(24,562 |
) |
Proceeds from sale of assets |
|
1,376 |
|
|
— |
|
Net cash used in investing activities |
|
(16,562 |
) |
|
(36,904 |
) |
Financing Activities |
|
|
||||
Proceeds from notes payable |
|
— |
|
|
88,125 |
|
Repayments of notes payable |
|
(13,802 |
) |
|
(102,351 |
) |
Deferred loan costs paid |
|
(825 |
) |
|
(2,361 |
) |
Purchase of derivative assets |
|
(2,362 |
) |
|
(2,703 |
) |
Proceeds from issuance of common stock |
|
10,000 |
|
|
— |
|
Shares withheld for taxes |
|
— |
|
|
(261 |
) |
Dividends paid on Series A convertible preferred stock |
|
— |
|
|
(2,987 |
) |
Other financing costs |
|
(124 |
) |
|
(114 |
) |
Net cash used in financing activities |
|
(7,113 |
) |
|
(22,652 |
) |
Decrease in cash and cash equivalents |
|
(12,992 |
) |
|
(62,134 |
) |
Cash and cash equivalents and restricted cash at beginning of year |
|
30,742 |
|
|
92,876 |
|
Cash and cash equivalents and restricted cash at end of year |
$ |
17,750 |
|
$ |
30,742 |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
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 Consolidated 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, depreciation and amortization expense, 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 community 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.
(in thousands) |
Three Months Ended
|
Quarter
|
Years Ended
|
||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
Consolidated Community Net Operating Income |
|
|
|
|
|
||||||||||
Net loss |
$ |
(14,629 |
) |
$ |
(16,574 |
) |
$ |
(18,411 |
) |
$ |
(21,107 |
) |
$ |
(54,401 |
) |
General and administrative expense |
|
9,946 |
|
|
6,723 |
|
|
8,615 |
|
|
32,198 |
|
|
30,286 |
|
Depreciation and amortization expense |
|
10,137 |
|
|
9,508 |
|
|
9,943 |
|
|
39,888 |
|
|
38,448 |
|
Long-lived asset impairment |
|
— |
|
|
1,588 |
|
|
5,965 |
|
|
5,965 |
|
|
1,588 |
|
Interest income |
|
(87 |
) |
|
(188 |
) |
|
(139 |
) |
|
(608 |
) |
|
(235 |
) |
Interest expense |
|
9,673 |
|
|
9,297 |
|
|
9,020 |
|
|
36,118 |
|
|
33,025 |
|
(Gain) loss on extinguishment of debt, net |
|
— |
|
|
— |
|
|
— |
|
|
(36,339 |
) |
|
641 |
|
Other (income) expense, net |
|
480 |
|
|
(1,348 |
) |
|
124 |
|
|
532 |
|
|
(10,011 |
) |
Provision (benefit) for income taxes |
|
48 |
|
|
(168 |
) |
|
83 |
|
|
253 |
|
|
86 |
|
Settlement (income) fees and expense, net (1) |
|
692 |
|
|
1,486 |
|
|
(510 |
) |
|
999 |
|
|
1,991 |
|
Consolidated community net operating income |
|
16,260 |
|
|
10,324 |
|
|
14,690 |
|
|
57,899 |
|
|
41,418 |
|
Resident revenue |
$ |
59,349 |
|
$ |
53,388 |
|
$ |
59,117 |
|
$ |
232,032 |
|
$ |
208,703 |
|
Consolidated community net operating income margin |
|
27.4 |
% |
|
19.3 |
% |
|
24.8 |
% |
|
25.0 |
% |
|
19.8 |
% |
|
|
|
|
|
|
||||||||||
COVID-19 state relief grants (2) |
|
— |
|
|
— |
|
|
478 |
|
|
2,926 |
|
|
1,213 |
|
Adjusted resident revenue |
|
59,349 |
|
|
53,388 |
|
|
58,639 |
|
|
229,106 |
|
|
207,490 |
|
Adjusted community net operating income |
$ |
16,260 |
|
$ |
10,324 |
|
$ |
14,212 |
|
$ |
54,973 |
|
$ |
40,205 |
|
Adjusted community net operating income margin |
|
27.4 |
% |
|
19.3 |
% |
|
24.2 |
% |
|
24.0 |
% |
|
19.4 |
% |
(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 measure 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, long-lived asset impairment, casualty losses, and transaction and conversion costs.
The Company believes that presentation of Adjusted EBITDA 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
|
Years Ended
|
||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
Adjusted EBITDA |
|
|
|
|
|
||||||||||
Net loss |
$ |
(14,629 |
) |
$ |
(16,574 |
) |
$ |
(18,411 |
) |
$ |
(21,107 |
) |
$ |
(54,401 |
) |
Depreciation and amortization expense |
|
10,137 |
|
|
9,508 |
|
|
9,943 |
|
|
39,888 |
|
|
38,448 |
|
Stock-based compensation expense |
|
605 |
|
|
847 |
|
|
641 |
|
|
2,749 |
|
|
4,327 |
|
Provision for bad debt |
|
568 |
|
|
251 |
|
|
249 |
|
|
1,151 |
|
|
1,159 |
|
Interest income |
|
(87 |
) |
|
(188 |
) |
|
(139 |
) |
|
(608 |
) |
|
(235 |
) |
Interest expense |
|
9,673 |
|
|
9,297 |
|
|
9,020 |
|
|
36,118 |
|
|
33,025 |
|
Long-lived asset impairment |
|
— |
|
|
1,588 |
|
|
5,965 |
|
|
5,965 |
|
|
1,588 |
|
(Gain) loss on extinguishment of debt, net |
|
— |
|
|
— |
|
|
— |
|
|
(36,339 |
) |
|
641 |
|
Other (income) expense, net |
|
480 |
|
|
(1,348 |
) |
|
124 |
|
|
532 |
|
|
(10,011 |
) |
Provision for income taxes |
|
48 |
|
|
(168 |
) |
|
83 |
|
|
253 |
|
|
86 |
|
Casualty losses (1) |
|
348 |
|
|
1,167 |
|
|
204 |
|
|
1,008 |
|
|
2,050 |
|
Transaction and conversion costs (2) |
|
2,159 |
|
|
192 |
|
|
1,591 |
|
|
4,294 |
|
|
304 |
|
Adjusted EBITDA |
$ |
9,302 |
|
$ |
4,572 |
|
$ |
9,270 |
|
$ |
33,904 |
|
$ |
16,981 |
|
(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, restructuring projects, or related projects. |
SUPPLEMENTAL INFORMATION |
|||||
|
|
Fourth Quarter |
|
||
|
|
Increase |
Third
|
Sequential
|
|
(Dollars in thousands) |
2023 |
2022 |
(decrease) |
2023 |
(decrease) |
Selected Operating Results |
|
|
|
|
|
I. Consolidated community portfolio |
|
|
|
|
|
Number of communities |
61 |
62 |
(1) |
61 |
— |
Unit capacity |
5,700 |
5,776 |
(76) |
5,718 |
(18) |
Weighted average occupancy (1) |
85.9% |
83.9% |
2.0% |
84.9% |
1.0% |
RevPAR |
|
|
|
|
|
RevPOR |
|
|
|
|
|
Consolidated community net operating income |
|
|
|
|
|
Consolidated community net operating income margin |
27.4% |
19.3% |
8.1% |
24.8% |
2.6% |
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) |
10.6% |
6.7% |
3.9% |
10.3% |
0.3% |
II. Consolidated Debt Information |
|
|
|
|
|
(Excludes insurance premium financing) |
|
|
|
|
|
Total variable rate mortgage debt (4) |
|
|
N/A |
|
N/A |
Total fixed rate debt |
492,998 |
535,303 |
N/A |
493,436 |
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 due to market volatility.
(3) Includes
(4) As of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240327358726/en/
Investor Contact:
Press Contact: media@sonidaliving.com
Source: