Brookdale Senior Living Earnings: Back to the Black

Brookdale Senior Living Inc. (NYSE:BKD) climbed to a profit in the third quarter, but still came up short of analyst expectations. Brookdale Senior Living is an operator of senior living communities in the United States. It operates in four business segments: retirement centers, assisted living communities, continuing care retirement communities, and management services.

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Brookdale Senior Living Inc. Earnings Cheat Sheet

Results: Reported a profit of $12 million (10 cents per diluted share) in the quarter. Brookdale Senior Living Inc. had a net loss of $7 million or a loss 6 cents per share in the year-earlier quarter.

Revenue: Rose 13.1% to $696.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Brookdale Senior Living Inc. fell short of the mean analyst estimate of a loss of 3 cents per share. It beat the average revenue estimate of $629.5 million.

Quoting Management: Bill Sheriff, Brookdale’s CEO, said, “We were pleased with our overall performance in the third quarter. In general, we saw a continuation of trends that we have been reporting on in recent quarters, including favorable growth in occupancy, improvement in entry fee sales and continued solid average revenue rate growth. We have positioned the Company to make the most of an improving market by focusing on sales and marketing execution and reinvesting in our portfolio.” Mark Ohlendorf, Co-President and CFO of Brookdale, commented, “We continue to spend capital on our portfolio to assure that our communities are well positioned in the market place. We have spent almost $100 million so far in 2012 on improvements such as unit upgrades, common space renovations, service level conversions, expansions and major repositionings. Our completed Program Max projects continue to produce solid returns on invested capital.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 16.3%, with the biggest boost coming in the first quarter when revenue rose 20% from the year earlier quarter.

The company has missed analyst estiamtes for four quarters in a row. It fell short by 8 cents in the second quarter, by 4 cents in the first quarter, and by 4 cents in the fourth quarter of the last fiscal year.

The company’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $18.8 million in the second quarter, a loss of $10.3 million in the first quarter and a loss of $14.9 million in the fourth of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 6 cents a share to one cent over the last ninety days. For the fiscal year, the average estimate has moved from a loss of 3 cents a share to a loss of 25 cents over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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