Sonida Senior Dwelling, Inc. Pronounces First Quarter 2022 Outcomes

DALLAS–(BUSINESS WIRE)–Sonida Senior Dwelling, Inc. (the “Firm,” “we,” “our,” or “us”) (NYSE: SNDA) introduced outcomes for the primary quarter ended March 31, 2022.

First Quarter Highlights

• Web loss attributable to frequent stockholders for the three months ended March 31, 2022, was $17.8 million, in comparison with web earnings attributable to frequent stockholders for the three months ended March 31, 2021, of $38.8 million. The change was primarily on account of a $47.0 million achieve on extinguishment of debt and $8.7 million of CARES Act earnings in 2021.
• Quarterly same-store weighted common occupancy elevated to 82.3% for the three months ended March 31, 2022, marking 4 consecutive quarters of same-store occupancy progress.
• Resident income for the three months ended March 31, 2022, was $50.8 million, a rise of 12.5% in comparison with the identical interval of the prior yr primarily on account of a 640 foundation level enhance in weighted common occupancy and a 2.3% enhance in Income Per Occupied Unit (“REVPOR”).
• Adjusted EBITDAR impression for the three months ended March 31, 2022, was $3.7 million, a rise of 38.6% from reported quantities for the three months ended December 31, 2021, primarily on account of improved operations.
• Adjusted CFFO excluding COVID-19 impression for the three months ended March 31, 2022, was a lack of $3.5 million, an enchancment of $1.7 million from the identical interval in 2021 because of the improved operations as famous above and lowered curiosity expense. The reported quantity for 2021 included larger curiosity expense, primarily associated to Fannie Mae debt which was extinguished throughout 2021.
• Outcomes for the Firm’s same-store, owned portfolio (“same-store”) of 60 communities:
  • In comparison with the three months ending March 31, 2021:
    • Income Per Accessible Unit (“REVPAR”) elevated 12.2%, together with a 680 foundation level enhance in weighted common occupancy.
    • REVPOR grew 320 foundation factors to $3,644.
    • Weighted common occupancy elevated to 82.3%, a 680 foundation level enchancment.
    • Web Working Margin elevated 20 foundation factors to twenty.2%.
  • In comparison with the three months ending December 31, 2021:
    • REVPAR elevated 2.5%, together with a 100 foundation level enhance in weighted common occupancy.
    • REVPOR grew 139 foundation factors.
    • Web Working Margin elevated 200 foundation factors from 18.2% to twenty.2%.
• The Firm commenced a brand new part of its progress technique by finishing the acquisition of two senior dwelling communities in Indiana on February 1, 2022, for $12.3 million in an all-cash transaction. Mixed weighted common occupancy for the 2 property on the time of the transaction closing was 58% and was 67% as of March 31, 2022, a 900 foundation level enchancment.

“We’re thrilled by our continued progress and operational momentum all through the primary quarter of 2022. Our emphasis on offering high-quality resident and household experiences via distinctive care and interesting programming has helped us obtain 4 consecutive quarters of progress in weighted common occupancy and income, in addition to important enchancment in our monetary outcomes as we proceed our robust restoration from the COVID-19 pandemic,” mentioned Kimberly S. Lody, President and CEO. “Our relentless concentrate on operational excellence, together with our improved steadiness sheet, skilled workforce, and engaging inhabitants demographics assist each the Firm’s basis and strategic progress plans.”

SONIDA SENIOR LIVING, INC. SUMMARY OF CONSOLIDATED FINANCIAL RESULTS FIRST QUARTER ENDED MARCH 31, 2022 (in 1000’s)
	Quarters Ended March 31,								Quarter ended December 31,
	2022				2021				2021
Consolidated outcomes
Resident income	$	50,834			$	45,202			$	49,394
Administration charges		628				1,186				625
Working bills		41,929				36,758				42,275
Common and administrative bills		6,445				7,187				6,606
Acquire (loss) on extinguishment of debt		(641	)			46,999				31,609
Revenue (loss) earlier than provision for earnings taxes		(16,424	)			38,907				1,390
Web earnings (loss)		(16,678	)			38,844				1,175
Adjusted EBITDAR (1)		3,727				3,137				2,690
Adjusted CFFO (1)		(3,748	)			2,773				(5,787	)
Identical-Retailer Outcomes
Resident income (2)	$	50,497			$	45,103			$	49,394
Web working earnings (NOI) (1)	$	10,188			$	9,017			$	9,011
Web working earnings margin (1)		20.2	%			20.0	%			18.2	%
Weighted common occupancy (3)		82.3	%			75.5	%			81.3	%

(1) Adjusted EBITDAR, Adjusted CFFO, Web Working Revenue and Web Working Revenue Margin are monetary measures that aren’t calculated in accordance with U.S. Usually Accepted Accounting Rules (“GAAP”). See “Reconciliations of Non-GAAP Monetary Measures” for the Firm’s definition of such measures, reconciliations to probably the most comparable GAAP monetary measures, and different data relating to the usage of the Firm’s non-GAAP monetary measures.

(2) Identical-store resident income excludes $0.3 million for the quarter ended March 31, 2022 associated to the revenues earned within the operations of the 2 Indiana senior dwelling communities acquired by the Firm in February 2022. Identical-store resident income excludes $0.1 million for the quarter ended March 31, 2021 associated to the revenues earned within the operations of senior dwelling communities transitioned to different operators within the first quarter of fiscal 2021.

(3) Weighted common occupancy for the three months ended March 31, 2022 for the 60 same-store communities excludes the operations of the 2 Indiana senior dwelling communities acquired by the Firm in February 2022.

First Quarter Outcomes

Revenues

Resident income for the three months ended March 31, 2022, was $50.8 million as in comparison with $45.2 million for the three months ended March 31, 2021, a rise of $5.6 million, or 12%. The rise in income was primarily on account of elevated occupancy, elevated common hire charges and the acquisition of two new communities in early 2022.

Administration charge income for the three months ended March 31, 2022, decreased by $0.6 million as in comparison with the three months ended March 31, 2021, primarily because of managing fewer communities in 2022.

Group reimbursement income for the three months ended March 31, 2022, was $7.0 million as in comparison with $15.3 million for the three months ended March 31, 2021, a lower of $8.3 million. The lower was primarily a results of transitioning 15 Fannie Mae communities to different operators in 2021.

Bills

Working bills for the three months ended March 31, 2022, had been $41.9 million as in comparison with $36.8 million for the three months ended March 31, 2021, a rise of $5.1 million. The rise is primarily on account of a $3.2 million enhance in labor and employee-related bills, together with premium labor, and a $1.9 million enhance in all different working bills.

Common and administrative bills for the three months ended March 31, 2022, had been $6.4 million as in comparison with $7.2 million for the three months ended March 31, 2021, a lower of $0.8 million. This lower is primarily on account of decreased labor and employee-related bills.

Group reimbursement expense for the three months ended March 31, 2022, was $7.0 million as in comparison with $15.3 million for the three months ended March 31, 2021, a lower of $8.3 million. The lower was primarily a results of transitioning 15 Fannie Mae communities to different operators in 2021.

Curiosity expense for the three months ended March 31, 2022, was $7.6 million as in comparison with $9.4 million for the three months ended March 31, 2021, a lower of $1.8 million primarily on account of decrease total borrowings in 2022. Notes payable decreased $192.7 million from March 31, 2021 to March 31, 2022.

Loss on extinguishment of debt for the three months ended March 31, 2022, was $0.6 million as in comparison with a achieve on extinguishment of debt of $47.0 million for the three months ended March 31, 2021, a lower of $47.6 million. The 2022 loss pertains to the refinancing of debt. The 2021 achieve associated to the derecognition of notes payable and liabilities because of the completion of the transition of the authorized possession of 4 communities to Fannie Mae, the holder of the associated non-recourse debt.

Different earnings for the three months ended March 31, 2022, was $0.1 million as in comparison with different earnings for the three months ended March 31, 2021 of $8.7 million. The 2021 quantity displays money acquired for the Part 3 Common Distribution of the CARES Act for healthcare-related bills or misplaced revenues attributable to COVID-19.

The Firm reported a web lack of $16.7 million for the three months ended March 31, 2022, in comparison with web earnings of $38.8 million for the three months ended March 31, 2021. Main components impacting web earnings for the three months ended March 31, 2021 in comparison with the three months ended March 31, 2022 embrace the achieve on extinguishment of debt, web of $47.0 million that primarily associated to the timing and accounting remedy of serious property inclinations and $8.7 million of Part 3 funds described above that had been acquired throughout the three months ended March 31, 2021.

Adjusted EBITDAR for the three months ended March 31, 2022, was $3.7 million in comparison with $3.1 million for the three months ended March 31, 2021. Adjusted EBITDAR excluding COVID-19 bills was $3.9 million for the three months ended March 31, 2022, in comparison with $3.8 million for the three months ended March 31, 2021. Adjusted CFFO for the three months ended March 31, 2022, was a lack of $(3.7) million in comparison with $2.7 million for the three months ended March 31, 2021. Adjusted CFFO excluding COVID-19 reduction and bills was a lack of $(3.5) million for the three months ended March 31, 2022, and a lack of $(5.3) million for the three months ended March 31, 2021. (See “Reconciliation of Non-GAAP Monetary Measures” beneath).

Important Transactions for the Three Months Ended March 31, 2022

On February 1, 2022, the Firm accomplished the acquisition of two senior dwelling communities situated in Indiana for a mixed buy worth of $12.3 million. The communities encompass a complete of 157 unbiased dwelling models. The acquisition worth was funded with money available.

2022 Mortgage Refinance

In March 2022, the Firm accomplished the refinancing of sure present mortgage debt (“Refinance Facility”) for ten of its communities. The Refinance Facility consists of an preliminary time period mortgage of $80.0 million. As well as, $10.0 million is on the market as delayed loans that may be borrowed upon attaining and sustaining sure monetary covenant necessities and as much as an extra uncommitted $40 million could also be accessible to fund future progress initiatives. As well as, the Firm offered a restricted fee warranty (“Restricted Fee Warranty”) of 33%, that reduces to 25% after which to 10%, of the then excellent steadiness of the Refinance Facility primarily based upon attaining sure monetary covenants maintained over a sure time interval As outlined and required within the Restricted Fee Warranty, the Firm is required to keep up sure covenants together with sustaining a Tangible Web Price of $150 million and Liquid Belongings of a minimum of $13 million (inclusive of a $1.5 million debt service reserve fund offered by the Firm on the closing of the Refinance Facility).

The Refinance Facility additionally requires the monetary efficiency of the ten communities to attain sure monetary covenants, together with a minimal debt service protection ratio and a minimal debt yield (as outlined within the Mortgage Settlement) with a primary measurement date as of June 30, 2022, and quarterly measurement dates thereafter. We are able to present no assurance that any future monetary covenants might be met. The Mortgage Settlement requires the institution of a debt service reserve fund with an outlined steadiness of $1.5 million (included in Liquid Belongings) that could be launched primarily based upon phrases described within the Mortgage Settlement. The reserve fund is included in our “different property.”

The Refinancing Facility requires that the Firm buy and keep an rate of interest cap facility throughout the time period of the Refinancing Facility. The Firm is in means of acquiring the rate of interest cap facility in compliance with the lender’s necessities.

Subsequent Occasions:

In April 2022, the Firm accepted $9.1 million of money for grants from the Supplier Reduction Fund’s Part 4 Common Distribution, which was expanded by the CARES Act to supply grants or different funding mechanisms to eligible healthcare suppliers for healthcare-related bills or misplaced revenues attributable to COVID-19. The CARES Act Part 4 funds are grants that don’t have to be repaid offered the Firm satisfies the phrases and situations of the CARES Act.

The Firm additional strengthened its accounting and finance operate by welcoming Kevin Detz as Chief Monetary Officer and Howard Garfield as Chief Accounting Officer. Each started their employment with the Firm on Could 1, 2022.

Liquidity and Capital Sources

Brief-term liquidity

Our main supply of short-term liquidity is our money and money equivalents and outcomes from operations. As of March 31, 2022, we had $48.6 million of money and money equivalents. Because of the continued results the COVID-19 pandemic, our operations haven’t but returned to 2019, pre-pandemic ranges. We at present anticipate money movement from operations will proceed to be impacted for a minimum of the near-term. Our recognized liquidity necessities primarily encompass funds essential to pay for working bills associated to our communities and different expenditures, together with common and administrative bills, curiosity and scheduled principal funds on our debt and dividends on our redeemable most well-liked inventory.

The Refinancing Facility we entered into in March 2022, accommodates monetary covenants which are efficient starting June 30, 2022, and quarterly thereafter. Based mostly on present operations, the Firm expects to be in compliance with the June 30, 2022, covenants. There isn’t any assurance that the Firm will have the ability to meet any future monetary covenant necessities. As well as, we’re required to keep up money and money equivalents of at least $13 million, inclusive of a $1.5 million lender service reserve, which is included in “different property.”

Extra short-term sources of liquidity embrace grants below the CARES Act. As described above, these grants can be found to reimburse the Firm for COVID-19 associated bills. In April 2022, we acquired a grant of $9.1 million, the place we consider we will meet the CARES Act necessities which is able to permit the Firm to retain the funds and never repay the grant. We don’t contemplate this to be a major supply of liquidity sooner or later. There isn’t any assurance that we are going to meet such necessities or qualify for, or obtain, any further CARES Act funds sooner or later. As well as, the Firm is eligible for funding in reference to numerous state applications.

Lengthy-term liquidity

The Firm, every so often, considers and evaluates monetary and capital elevating transactions associated to its portfolio, together with debt financing or refinancings, purchases and gross sales of property, and different transactions. If capital had been obtained via the issuance of Firm fairness, the issuance of Firm securities would dilute the possession of our present stockholders and any newly-issued securities could have rights, preferences, and/or privileges senior to these of our frequent inventory. There could be no assurance that the Firm will proceed to generate money flows at or above present ranges, or that the Firm will have the ability to acquire the capital obligatory to fulfill the Firm’s quick and long-term capital necessities.

In reference to the refinancing transaction in March 2022, the Firm was in a position to refinance sure debt due throughout 2022 and 2023 with longer-term financing that matures in 2026. As well as, $10.0 million is on the market as delayed loans that may be borrowed upon attaining and sustaining sure monetary covenant necessities and as much as an extra uncommitted $40 million could also be accessible to fund future progress initiatives. There isn’t any assurance that we will meet future monetary covenant necessities.

As mentioned in “Be aware 4. Notes Payable” of the condensed consolidated monetary statements, the Firm has scheduled maturities of debt coming due within the subsequent 5 years and thereafter. The Firm at present expects to have the ability to meet these maturities from money available, future operations and future refinancings. The Refinance Facility matures in 4 years with an non-compulsory one-year extension if sure monetary efficiency metrics and different customary situations are maintained. There isn’t any assurance that we will meet such situations or supply refinancings on the time any of our debt matures or whether or not the phrases of such refinancings might be comparable or passable in comparison with our present loans.

The Firm has unencumbered properties with a web e book worth of $24.0 million as of March 31, 2022, which may present a supply of liquidity from new debt.

Convention Name Info

The Firm will host a convention name with senior administration to debate the Firm’s monetary outcomes for the three months ended March 31, 2022, on Monday, Could 23, 2022, at 1:30 p.m. Japanese Time. To take part, dial 877-407-0989 (no passcode required). A hyperlink to the simultaneous webcast of the teleconference might be accessible at https://www.webcast-eqs.com/register/sonidasenior20220516/en.

For the comfort of the Firm’s shareholders and the general public, the convention name might be recorded and accessible for replay beginning Could 23, 2022, via June 6, 2022. To entry the convention name replay, name 877-660-6853, passcode 13729622. A transcript of the decision might be posted within the Investor Relations part of the Firm’s web site.

In regards to the Firm

Dallas-based Sonida Senior Dwelling, Inc. is a number one owner-operator of unbiased dwelling, assisted dwelling and reminiscence care communities and companies for senior adults. The Firm’s 76 communities, with capability for about 9,500 residents throughout 18 states, present comfy, protected, reasonably priced communities the place residents can kind friendships, take pleasure in new experiences and obtain customized care from devoted workforce members who deal with them like household. For extra data, go to www.sonidaseniorliving.com or join with the Firm on Fb, Twitter or LinkedIn.

Secure Harbor

This launch accommodates forward-looking statements that are topic to sure dangers and uncertainties that might trigger our precise outcomes and monetary situation of Sonida Senior Dwelling, Inc. (the “Firm,” “we,” “our” or “us”) to vary materially from these indicated within the forward-looking statements, together with, amongst others, the dangers, uncertainties and components set forth below “Merchandise. 1A. Danger Elements” in our Annual Report on Kind 10-Ok for the fiscal yr ended December 31, 2021, filed with the Securities and Change Fee (the “SEC”) on April 15, 2022, and in addition embrace the next: the impression of COVID-19, together with the actions taken to forestall or comprise the unfold of COVID-19, the transmission of its extremely contagious variants and sub-lineages and the event and availability of vaccinations and different associated remedies, or one other epidemic, pandemic or different well being disaster; the Firm’s capability to generate ample money flows from operations, further proceeds from debt financings or refinancings, and proceeds from the sale of property to fulfill its quick and long-term debt obligations; will increase in market rates of interest that enhance the price of our debt obligations; elevated competitors for, or a scarcity of, expert employees, together with because of the COVID-19 pandemic or common labor market situations, together with wage pressures ensuing from such elevated competitors, low unemployment ranges, use of contract labor, minimal wage will increase and/or modifications in time beyond regulation legal guidelines; the Firm’s capability to acquire further capital on phrases acceptable to it; the Firm’s capability to increase or refinance its present debt as such debt matures; the Firm’s compliance with its debt agreements, together with sure monetary covenants and the phrases and situations of its current forbearance agreements, and the chance of cross-default within the occasion such non-compliance happens; the Firm’s capability to finish acquisitions and inclinations upon favorable phrases or in any respect; the chance of oversupply and elevated competitors within the markets which the Firm operates; the Firm’s capability to enhance and keep controls over monetary reporting and remediate the recognized materials weak spot mentioned in its current Quarterly and Annual Reviews filed with the SEC; the departure of the Firm’s key officers and personnel; the associated fee and problem of complying with relevant licensure, legislative oversight, or regulatory modifications; dangers related to present international financial situations and common financial components akin to inflation, the buyer worth index, commodity prices, gasoline and different power prices, competitors within the labor market, prices of salaries, wages, advantages, and insurance coverage, rates of interest, and tax charges; and modifications in accounting rules and interpretations.

For details about Sonida Senior Dwelling, go to www.sonidaseniorliving.com.

Sonida Senior Dwelling, Inc. Condensed Consolidated Statements of Operations (Unaudited) (in 1000’s, besides per share information)
	Three Months Ended March 31,
	2022				2021
Revenues:
Resident income	$	50,834			$	45,202
Administration charges		628				1,186
Group reimbursement income		7,022				15,260
Complete revenues		58,484				61,648
Bills:
Working bills		41,929				36,758
Common and administrative bills		6,445				7,187
Inventory-based compensation expense		1,828				166
Depreciation and amortization expense		9,578				9,283
Group reimbursement expense		7,022				15,260
Complete bills		66,802				68,654
Different earnings (expense):
Curiosity earnings		1				4
Curiosity expense		(7,603	)			(9,374	)
Acquire (loss) on extinguishment of debt		(641	)			46,999
Loss on disposition of property, web		—				(421	)
Different earnings		137				8,705
Revenue (loss) earlier than provision for earnings taxes		(16,424	)			38,907
Provision for earnings taxes		(254	)			(63	)
Web earnings (loss)		(16,678	)			38,844
Dividends on Sequence A convertible most well-liked inventory		(1,133	)			—
Web earnings (loss) attributable to frequent stockholders	$	(17,811	)		$	38,844

Sonida Senior Dwelling, Inc. Condensed Consolidated Steadiness Sheets (Unaudited) (in 1000’s, besides per share quantities)
	March 31, 2022				December 31, 2021
Belongings
Present property:
Money and money equivalents	$	48,634			$	78,691
Restricted money		3,982				4,882
Accounts receivable, web		4,502				3,983
Property tax and insurance coverage deposits		3,946				6,666
Pay as you go bills and different		7,665				9,328
Complete present property		68,729				103,550
Property and tools, web		627,844				621,199
Different property, web		6,808				3,803
Complete property	$	703,381			$	728,552
Liabilities and Fairness
Present liabilities:
Accounts payable and accrued expense	$	48,528			$	46,194
Present portion of notes payable, web of deferred financing prices		43,851				69,769
Deferred earnings		3,527				3,162
Federal and state earnings taxes payable		850				599
Different present liabilities		778				758
Complete present liabilities		97,534				120,482
Notes payable, web of deferred financing prices and present portion		627,170				613,342
Different liabilities		220				288
Complete liabilities		724,924				734,112
Commitments and contingencies
Redeemable most well-liked inventory:
Sequence A convertible most well-liked inventory, $0.01 par worth; 41 shares approved, 41 shares issued and excellent		41,250				41,250
Shareholders’ deficit:
Most popular inventory $0.01 par worth per share; 15,000 shares approved; none issued or excellent		—				—
Widespread inventory $0.01 par worth per share; 15,000 shares approved; 6,665 and 6,634 issued and excellent as of March 31, 2022 and December 31, 2021, respectively		67				66
Extra paid-in capital		296,475				295,781
Retained deficit		(359,335	)			(342,657	)
Complete shareholders’ deficit		(62,793	)			(46,810	)
Complete liabilities, redeemable most well-liked inventory and shareholders’ deficit	$	703,381			$	728,552

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

This earnings launch accommodates the monetary measures (1) Consolidated Web Working Revenue, (2) Consolidated Web Working Revenue Margin, (3) Identical-Retailer Web Working Revenue, (4) Identical-Retailer Web Working Revenue Margin, (5) Adjusted EBITDAR, (6) Adjusted EBITDAR excluding COVID-19 impression, (7) Adjusted CFFO, and (8) Adjusted CFFO excluding COVID-19 impression, all of which aren’t calculated in accordance with U.S. Usually Accepted Accounting Rules (“GAAP”). Shows of those non-GAAP monetary measures are meant to help traders in higher understanding the components and developments affecting the Firm’s efficiency and liquidity. Nonetheless, traders mustn’t contemplate these non-GAAP monetary measures as an alternative choice to monetary measures decided in accordance with GAAP, together with web earnings (loss), earnings (loss) from operations, or web money offered by (utilized in) working actions. Buyers are cautioned that quantities introduced in accordance with the Firm’s definitions of those non-GAAP monetary measures might not be similar to related measures disclosed by different corporations as a result of not all corporations calculate non-GAAP measures in the identical method. Buyers are urged to evaluate the next reconciliations of those non-GAAP monetary measures from probably the most comparable monetary measures decided in accordance with GAAP.

CONSOLIDATED NET OPERATING INCOME AND

CONSOLIDATED NET OPERATING INCOME MARGIN

Consolidated Web Working Revenue and Consolidated Web Working Revenue Margin are non-GAAP efficiency measures that the Firm defines as web earnings (loss) excluding: common and administrative bills, curiosity earnings, curiosity expense, different earnings/expense, provision for earnings taxes, settlement charges and bills; and additional adjusted to exclude earnings/expense related to non-cash, non-operational, transactional, or organizational restructuring objects that administration doesn’t contemplate as a part of the Firm’s underlying core working efficiency and that administration believes impression the comparability of efficiency between durations. For the durations introduced herein, such different objects embrace stock-based compensation expense, depreciation and amortization expense, long-lived asset impairment, achieve(loss) on extinguishment of debt, loss on settlement of backstop, and achieve(loss) on disposition of property.

The Firm believes that presentation of Consolidated Web Working Revenue and Consolidated Web Working Revenue Margin as efficiency measures are helpful to traders as a result of (i) they’re one of many metrics utilized by the Firm’s administration for budgeting and different planning functions, to evaluate the Firm’s historic and potential core working efficiency, and to make day-to-day working selections; (ii) they supply an evaluation of operational components that administration can impression within the short-term, specifically revenues and the controllable value construction of the group, by eliminating objects associated to the Firm’s financing and capital construction, and different objects that administration doesn’t contemplate as a part of the Firm’s underlying core working efficiency and that administration believes impression the comparability of efficiency between durations.

Consolidated Web Working Revenue and Consolidated Web Working Revenue Margin have materials limitations as efficiency measures, together with: (i) excluded curiosity is critical to function the Firm’s enterprise below its present financing and capital construction; (ii) excluded depreciation, amortization and impairment fees could symbolize the damage and tear and/or discount in worth of the Firm’s communities and different property and could also be indicative of future wants for capital expenditures; and (iii) the Firm could incur earnings/expense just like these for which changes are made, akin to achieve/loss on sale of property, debt extinguishment, non-cash stock-based compensation expense, and transaction and different prices, and such earnings/expense could considerably have an effect on the Firm’s working outcomes.

({Dollars} in 1000’s)	Quarters ended March 31,								Quarter ended December 31,
	2022				2021				2021
Consolidated web working earnings
Web earnings (loss)	$	(16,678	)		$	38,844			$	1,175
Common and administrative bills		6,445				7,187				6,606
Inventory-based compensation expense		1,828				166				1,537
Depreciation and amortization expense		9,578				9,283				10,059
Lengthy-lived asset impairment		—				—				6,502
Curiosity earnings		(1	)			(4	)			(1	)
Curiosity expense		7,603				9,374				8,660
(Acquire) loss on extinguishment of debt		641				(46,999	)			(31,609	)
Loss on settlement of backstop		—				—				4,600
Loss on disposition of property, web		—				421				—
Different earnings (1)		(137	)			(8,705	)			—
Provision for earnings taxes		254				63				215
Settlement charges and bills (2)		231				235				495
Consolidated web working earnings	$	9,764			$	9,865			$	8,239
Resident income	$	50,834			$	45,202			$	49,394
Consolidated web working earnings margin		19.2	%			21.8	%			16.7	%

(1) Consists of CARES Act funds of $8.7 million acquired in January 2021, which are included in different earnings on the Condensed Consolidated Assertion of Operations (Unaudited) for the three months ended March 31, 2021, and added again within the reconciliation above.

(2) Settlement charges and bills relate to non-recurring settlements with third events for contract terminations, insurance coverage claims and associated charges.

SAME-STORE NET OPERATING INCOME AND

SAME-STORE NET OPERATING INCOME MARGIN (UNAUDITED)

Identical-Retailer Web Working Revenue and Identical-Retailer Web Working Revenue Margin are non-GAAP efficiency measures for the Firm’s portfolio of 60 owned persevering with communities that the Firm defines as web earnings (loss) excluding: common and administrative bills, curiosity earnings, curiosity expense, different earnings/expense, provision for earnings taxes, settlement charges and bills, income and working bills from the Firm’s disposed properties; and additional adjusted to exclude earnings/expense related to non-cash, non-operational, transactional, or organizational restructuring objects that administration doesn’t contemplate as a part of the Firm’s underlying core working efficiency and that administration believes impression the comparability of efficiency between durations. For the durations introduced herein, such different objects embrace stock-based compensation expense, depreciation and amortization expense, long-lived asset impairment, achieve(loss) on extinguishment of debt, loss on settlement of backstop, and achieve(loss) on disposition of property.

The Firm believes that presentation of Identical-Retailer Web Working Revenue and Identical-Retailer Web Working Revenue Margin as efficiency measures are helpful to traders as a result of (i) they’re one of many metrics utilized by the Firm’s administration to judge the efficiency of our core portfolio of 60 owned persevering with communities, to evaluate the Firm’s comparable historic and potential core working efficiency of the 60 owned persevering with communities, and to make day-to-day working selections; (ii) they supply an evaluation of operational components that administration can impression within the short-term, specifically revenues and the controllable value construction of the group, by eliminating objects associated to the Firm’s financing and capital construction and different objects that administration doesn’t contemplate as a part of the Firm’s underlying core working efficiency, and that administration believes impression the comparability of efficiency between durations.

Identical-Retailer Web Working Revenue and Identical-Retailer Web Working Revenue Margin have materials limitations as a efficiency measure, together with: (i) excluded curiosity is critical to function the Firm’s enterprise below its present financing and capital construction; (ii) excluded depreciation, amortization and impairment fees could symbolize the damage and tear and/or discount in worth of the Firm’s communities, and different property and could also be indicative of future wants for capital expenditures; and (iii) the Firm could incur earnings/expense just like these for which changes are made, akin to achieve(loss) on sale of property, achieve(loss) debt extinguishment, non-cash stock-based compensation expense, and transaction and different prices, and such earnings/expense could considerably have an effect on the Firm’s working outcomes.

({Dollars} in 1000’s)	Quarters ended March 31,								Quarter ended December 31,
	2022				2021				2021
Identical-store web working earnings
Web earnings (loss)	$	(16,678	)		$	38,844			$	1,175
Common and administrative bills		6,445				7,187				6,606
Inventory-based compensation expense		1,828				166				1,537
Depreciation and amortization expense		9,578				9,283				10,059
Lengthy-lived asset impairment		—				—				6,502
Curiosity earnings		(1	)			(4	)			(1	)
Curiosity expense		7,603				9,374				8,660
(Acquire) loss on extinguishment of debt		641				(46,999	)			(31,609	)
Loss on settlement of backstop		—				—				4,600
Loss on disposition of property, web		—				421				—
Different earnings (1)		(137	)			(8,705	)			—
Provision for earnings taxes		254				63				215
Settlement charges and bills (2)		231				235				495
Working margin for non same-store communities (3)		424				(848	)			772
Identical-store neighborhood web working earnings	$	10,188			$	9,017			$	9,011
Resident income	$	50,834			$	45,202			$	49,394
Resident income for non same-store communities (4)		(337	)			(99	)			—
Identical-store neighborhood resident income	$	50,497			$	45,103			$	49,394
Identical-store neighborhood web working earnings margin		20.2	%			20.0	%			18.2	%

(1) Consists of CARES Act funds of $8.7 million acquired in January 2021 which are included in different earnings on the Condensed Consolidated Assertion of Operations (Unaudited) for the three months ended March 31, 2021 and added again within the reconciliation above.

(2) Settlement charges and bills relate to non-recurring settlements with third events for contract terminations, insurance coverage claims, and associated charges.

(3) Working margin for non same-store communities relate to working margin incurred within the quarters ended March 31, 2022 and 2021 respectively, associated to the operations of the 2 Indiana senior dwelling communities acquired by the Firm in February 2022 and the senior dwelling communities transitioned within the first quarter of 2021.

(4) Resident income for non-same-store communities pertains to revenues earned within the operations for the quarters ended March 31, 2022 and 2021, respectively, associated to the revenues earned within the operations of the 2 Indiana senior dwelling communities acquired by the Firm in February 2022 and the senior dwelling communities transitioned within the first quarter of 2021.

ADJUSTED EBITDAR AND ADJUSTED EBITDAR EXCLUDING COVID-19 IMPACT (UNAUDITED)

Adjusted EBITDAR and Adjusted EBITDAR excluding COVID-19 impression are non-GAAP efficiency measures that the Firm defines as web earnings (loss) excluding: curiosity earnings, curiosity expense, different expense/earnings, provision for earnings taxes; and additional adjusted to exclude earnings/expense related to non-cash, non-operational, transactional, or organizational restructuring objects that administration doesn’t contemplate as a part of the Firm’s underlying core working efficiency and that administration believes impression the comparability of efficiency between durations. For the durations introduced herein, such different objects embrace depreciation and amortization expense, stock-based compensation expense, provision for dangerous money owed, long-lived asset impairment, achieve(loss) on extinguishment of debt, achieve(loss) on disposition of property, loss on settlement of backstop, casualty losses, transaction and conversion prices, and worker placement and separation prices.

The Firm believes that presentation of Adjusted EBITDA and Adjusted EBITDA excluding COVID-19 impression as efficiency measures are helpful to traders as a result of they’re one of many metrics that the Firm makes use of as a result of it supplies an evaluation of operational components that administration can impression within the short-term, specifically revenues and the controllable value construction of the group, by eliminating objects associated to the Firm’s financing and capital construction and different objects that administration doesn’t contemplate as a part of the Firm’s underlying core working efficiency and that administration believes impression the comparability of efficiency between durations.

Adjusted EBITDA and Adjusted EBITDA excluding COVID-19 impression have materials limitations as a efficiency measure, together with: (i) excluded curiosity is critical to function the Firm’s enterprise below its present financing and capital construction; (ii) excluded depreciation, amortization and impairment fees could symbolize the damage and tear and/or discount in worth of the Firm’s communities and different property and could also be indicative of future wants for capital expenditures; and (iii) the Firm could incur earnings/expense just like these for which changes are made, akin to dangerous money owed, achieve(loss) on sale of property, or achieve(loss) on debt extinguishment, loss on settlement of backstop, non-cash stock-based compensation expense and transaction and different prices, and such earnings/expense could considerably have an effect on the Firm’s working outcomes.

(In 1000’s)	Quarters ended March 31,								Quarter ended December 31,
	2022				2021				2021
Adjusted EBITDAR
Web earnings (loss)	$	(16,678	)		$	38,844			$	1,175
Depreciation and amortization expense		9,578				9,283				10,059
Inventory-based compensation expense		1,828				166				1,537
Provision for dangerous money owed		106				365				504
Curiosity earnings		(1	)			(4	)			(1	)
Curiosity expense		7,603				9,374				8,660
Lengthy-lived asset impairment		—				—				6,502
(Acquire) loss on extinguishment of debt, web		641				(46,999	)			(31,609	)
Loss on settlement of backstop		—				—				4,600
Loss on disposition of property, web		—				421				—
Different earnings		(137	)			(8,705	)			—
Provision for earnings taxes		254				63				215
Casualty losses (1)		625				380				692
Transaction and conversion prices (2)		(92	)			(92	)			356
Worker placement and separation prices (3)		—				41				—
Adjusted EBITDAR	$	3,727			$	3,137			$	2,690
COVID-19 bills (4)		213				654				166
Adjusted EBITDAR excluding COVID-19 impression	$	3,940			$	3,791			$	2,856

(1) Casualty losses relate to non-recurring losses for insured claims and losses associated to sudden occasions.

(2) Transaction and conversion prices relate to authorized {and professional} charges incurred for lease termination transactions, restructure tasks, or associated tasks.

(3) Worker placement and separation prices embrace severance and different employment prices of organizational modifications.

(4) COVID-19 bills are bills for provides and private protecting tools, testing of the Firm’s residents and workers, labor and specialised disinfecting, and cleansing companies.

ADJUSTED CFFO AND ADJUSTED CFFO EXCLUDING COVID-19 IMPACT

Adjusted CFFO and Adjusted CFFO excluding COVID-19 impression is a non-GAAP liquidity measure that the Firm defines as web earnings (loss) excluding depreciation and amortization expense, stock-based compensation expense, loss on disposition of property, provision for dangerous money owed, achieve on extinguishment of debt, different non-cash fees, recurring capital expenditures, casualty losses, transaction and conversion prices and worker placement and separation prices.

The Firm believes that presentation of Adjusted CFFO and Adjusted CFFO excluding COVID-19 impression as liquidity measures is helpful to traders as a result of they’re one of many metrics utilized by the Firm’s administration for budgeting and different planning functions, to evaluate the Firm’s historic and potential sources of working liquidity, and to evaluate the Firm’s capability to service its excellent indebtedness and make capital expenditures.

Adjusted CFFO and Adjusted CFFO excluding COVID-19 impression have materials limitations as a liquidity measure, together with: (i) they don’t symbolize money accessible for discretionary expenditures since sure non-discretionary expenditures, together with obligatory debt principal funds, should not mirrored on this measure; and (ii) the money portion of non-recurring fees associated to realize/loss on facility lease termination usually symbolize fees/good points that will considerably have an effect on the Firm’s liquidity limits the usefulness of the measure for short-term comparisons.

(in 1000’s)	Quarters ended March 31,								Quarter ended December 31,
	2022				2021				2021
Adjusted CFFO
Web earnings (loss)	$	(16,678	)		$	38,844			$	1,175
Depreciation and amortization expense		9,578				9,283				10,059
Inventory-based compensation expense		1,828				166				1,537
Loss on disposition of property, web		—				421				—
Provision for dangerous money owed		106				365				504
(Acquire) loss on extinguishment of debt, web		641				(46,999	)			(31,609	)
Loss on settlement of backstop		—				—				4,600
Lengthy-lived asset impairment		—				—				6,502
Different non-cash fees, web (1)		244				364				397
Casualty losses (2)		625				380				692
Transaction and conversion prices (3)		(92	)			(92	)			356
Worker placement and separation prices (4)		—				41				—
Adjusted CFFO	$	(3,748	)		$	2,773			$	(5,787	)
COVID-19 reduction funds (5)		—				(8,706	)			—
COVID-19 bills (6)		213				654				166
Adjusted CFFO excluding COVID-19 impression	$	(3,535	)		$	(5,279	)		$	(5,621	)

(1) Different non-cash fees, web embrace amortization of deferred financing fees that are included in curiosity expense on the Condensed Consolidated Assertion of Operations (Unaudited) and the change in deferred income.

(2) Casualty losses relate to non-recurring losses for insured claims and losses associated to sudden occasions.

(3) Transaction and conversion prices relate to authorized {and professional} charges incurred for lease termination transactions, restructure tasks or associated tasks.

(4) Worker placement and separation prices are severance and different employment prices of organizational modifications.

(5) COVID-19 reduction income are grants and different funding acquired from third events to help within the COVID-19 response and consists of federal and state reduction funds acquired.

(6) COVID-19 bills are bills for provides and private protecting tools, testing of the Firm’s residents and workers, labor and specialised disinfecting and cleansing companies.

SUPPLEMENTAL INFORMATION
	First Quarter												Fourth Quarter
({Dollars} in 1000’s)	2022				2021				Enhance (lower)				2021				Sequential enhance (lower)
Chosen Working Outcomes
I. Identical-store neighborhood portfolio (1)
Variety of communities		60				60				—				60				—
Unit capability		5,616				5,631				(15	)			5,632				(16	)
Weighted common occupancy (2)		82.3	%			75.5	%			6.8	%			81.3	%			1.0	%
Common month-to-month hire	$	3,644			$	3,531			$	113			$	3,594			$	50
II. Managed communities
Variety of communities		14				16				(2	)			15				(1	)
Administration charge income	$	628			$	1,186			$	(558	)		$	625			$	3
III. Consolidated Debt Info (in 1000’s, aside from rates of interest)
(Excludes insurance coverage premium financing)
Complete variable price mortgage debt		130,127				122,742								88,711
Complete mounted price debt	$	543,593				743,008								592,997

(1) Excludes (a) two and 15 communities which have transitioned or quickly will transition authorized possession again to Fannie Mae as of March 31, 2022 and 2021, respectively and (b) two Indiana senior dwelling communities acquired by the Firm in February 2022.

(2) Weighted common occupancy represents precise days occupied divided by complete variety of accessible days throughout the quarter.