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Article Excerpt
ELISABETH LEIDERMAN, ANALYST, UBS: Good morning, and thank you all for coming to the 2009 UBS Global Healthcare Services Conference. My name is Dr. [Elisabeth Leiderman], and I will be your host this morning.
We're happy to have Bill Sheriff, Chief Executive Officer, and Mark Ohlendorf, Chief Financial Officer of Brookdale Senior Living. And they will be giving a presentation right now, and immediately following, there will be a breakout Q&A session in the Gramercy Suite on the same floor, 18. Thank you.
BILL SHERIFF, CEO, BROOKDALE SENIOR LIVING INC.: Thank you. We do appreciate UBS inviting us to attend, and we appreciate your attendance today. Brookdale Senior Living is the largest senior living operator in the US today with 52,000 resident capacity, about 34,000 associates, 35 states. We have a very strong national presence with, as we'll talk more, some very-- some particularly strong concentrations within markets.
After the rollup of Alterra, largest living operator, and Brookdale Senior Living, and the IPO then in late '05, the Company has more than doubled in revenues, approaching $2 billion in revenue in '08. During that period of time, has developed a very strong platform of diversified senior living products, as well as a strong, unique therapy services program.
If you look at the senior living product lines, about a third is assisted living, a third independent retirement centers, and about a third is made up entry fee, both [rental] and entry fee CCRCs, as well as the Clare Bridge, which is the free-standing Alzheimer's product line.
On the right hand side, though, is the level of care mix of our communities. And over 57% are in the more need-driven from the assisted living Alzheimer's nursing care. And in the independent living itself, a fair number of those are units actually licensed assisted living. And with the supportive aspects of our ancillary services -- our therapy and our home health, certified home health -- we have the ability to provide a little bit more supportive care and adapt our product of independent living in an environment such as we are experiencing today.
We have grown-- have enjoyed a very significant growth in our Innovative Senior Care, ISC, therapy in home health. And today, we have over 370 clinics, serving about 33,000 residents, 26 home health agencies, and up to 14,000 units being covered by those agencies at this time. So we cover kind of the middle segment of the continuum of senior living services with, again, some both depth and breadth in that product offering.
If you look at the portfolio in terms of the product lines of retirement centers, assisted livings, and CCRCs, you can see that the revenue per unit -- the $3,288, and a margin of 43%; and retirement centers and assisted living, $3,690 and 34%; and then CCRCs at 48-- and 27% -- if you do the calculation of revenue times the margin, you'll get to an operating income per unit that's fairly comparable across those product lines. And again, the investment cost is fairly comparable, as well, per unit across those product lines. And we have good size and good depth across all those products.
As we look at 2008, tremendous year for us despite the very challenging environment. And there's some pretty significant accomplishments. We started the year introducing and reorganizing the Company from product line management to geographic management.
And through the year, we effectively changed that to a market-oriented basis. A tremendous learning curve for our folks, but in tremendous response and...
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