Brookdale Senior Living posts smaller 3Q loss

NASHVILLE, Tenn. (AP) — Brookdale Senior Living Inc. reported a smaller third-quarter loss Thursday that easily beat analysts' estimates as the nation's largest provider of senior-care facilities lowered costs and increased revenue.

The news sent the company's stock up $2.64, or 25.4 percent, to $13.02 in midday trading. The shares have traded in a range of $2.50 to $27.20 over the past year.

Brookdale lost $13.6 million, or 13 cents per share, compared with a loss of $55.1 million, or 54 cents per share, a year earlier. The company mostly benefited from a much smaller change in the fair value of derivatives and amortization.

Analysts surveyed by Thomson Reuters, whose estimates normally exclude one-time items, predicted a loss of 33 cents per share.

General and administrative expenses fell to $33.7 million from $36.4 million.

"As the first-quarter results show, we made significant progress toward adjusting our cost structure to better face these difficult times," Chief Executive Bill Sheriff said in a statement.

For the period ended March 31, revenue rose 4 percent to $497.9 million from $480.6 million on improved revenue from resident fees. That's up from Wall Street's estimate of $495.2 million.

Average monthly revenue per unit climbed 5.4 percent to $3,961 helped by ancillary services programs for therapy and home health. However, average occupancy dipped to 88.7 percent from 90 percent.

Brookdale opened three expansions with 128 units in the quarter. The company currently owns and runs 548 communities in 35 states.