Brookdale Senior Living (BKD) Announces Management Changes, Issues FY22 Guidance

Brookdale Senior Living Inc. (NYSE: BKD) today announced leadership changes designed to maximize efficiencies. The Company also announced select changes to its full-year 2022 financial expectations based on its preliminary, unaudited results. The updated expectations are based on management's estimates derived from the information available at this time and are subject to revision upon finalization of the Company's year-end accounting and financial reporting processes and reviews, and completion of the annual audit.

"Brookdale is a learning organization that continues to refine efforts to better support and serve our residents, associates, and shareholders," said Lucinda ("Cindy") Baier, Brookdale's President and CEO. "We have demonstrated a successful growth strategy with our strong 2022 top-line growth. This week, we have taken meaningful actions to streamline our organization to drive improved efficiency and better align our expenses with revenue."

Leadership ChangesSteven E. Swain, who serves as Brookdale's Executive Vice President and Chief Financial Officer, will terminate employment effective February 24, 2023.

Concurrently, Dawn L. Kussow, the Company's Senior Vice President and Chief Accounting Officer, will be appointed Executive Vice President and Chief Financial Officer. She will also continue to serve as the Company's principal accounting officer.

Kevin W. Bowman, who served as Brookdale's Executive Vice President – Community Operations, terminated employment effective January 12, 2023.

Divisional Vice Presidents Laura E. Fischer and Benjamin J. Ricci will continue to lead the operations for the Company's West and East Divisions, and each will now report directly to Ms. Baier.

Richard ("Rick") R. Wigginton has been promoted to Chief Sales Officer.

These leadership changes are aligned with additional corporate and field optimizations that were recently implemented.

"I thank Steve and Kevin for their leadership and dedication to Brookdale over the years," stated Ms. Baier. "With Dawn's remarkable track record, Rick's demonstrated success, and Laura and Ben's deep operational experience, I am confident they will continue to provide excellent leadership and drive improved performance."

Financial ExpectationsBased on the Company's preliminary, unaudited 2022 financial results, the Company expects:

• Full-year guidance for RevPAR growth will be achieved;
• Full-year Adjusted EBITDA will be modestly below the previously issued guidance range. Compared to the Company's previous estimates, the Company now expects:
  • Total revenue and other operating income to exceed expectations;
  • Facility operating expenses to increase slightly above 1% in the fourth quarter relative to the third quarter, which compares to the Company's prior expectation for slight sequential improvement versus the third quarter.

Ms. Baier concluded, "I am pleased to announce that we continued strong revenue growth in the fourth quarter 2022. We are continuing to respond to a challenging labor market and faced the unexpected impact of winter storm Elliott. Our associates' dedication to serving our residents continues to make me proud."

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