DALLAS, Texas - Sonida Senior Living, Inc. (the 'Company,' 'we,' 'our,' or 'us') (NYSE: SNDA) a leading owner-operator and investor in communities and services for seniors, today announced its results for the first quarter ended March 31, 2024.
'We achieved strong across-the-board results during the first quarter of 2024, executing on our key financial and operational priorities with year-over-year occupancy, revenue and community net operating income all demonstrating continued growth. With our recent balance sheet and liquidity advancements, Sonida has meaningfully positioned itself for strategic expansion and continued momentum, with an eye on shareholder value creation into the second quarter and beyond. I am truly proud of our team, as our inherent focus on serving seniors with our signature programs and services is clearly being reflected in the strength of our performance,' said Brandon Ribar, President and CEO.
First Quarter Highlights
Liquidity significantly improved in Q1 2024 with our private placement transaction of 5,026,318 shares of common stock at $9.50 a share (the 'Private Placement') completed in February and March of 2024 resulting in gross cash proceeds of $47.8 million.
On April 1, 2024, the Company entered into an At-the-Market Issuance Sales Agreement with Mizuho Securities USA LLC, whereby the Company may sell, at its option, shares of its common stock up to an aggregate offering price of $75,000,000 ('ATM Sales Agreement'). An additional $10.3 million of net proceeds were raised in April 2024 through our ATM Sales Agreement.
Using proceeds from the Private Placement, purchased $74.4 million of the outstanding principal balance with Protective Life ('Protective Life Loan Purchase') for $40.2 million, resulting in a decrease in notes payable of $49.6 million.
Weighted average occupancy for the Company's consolidated portfolio increased 200 basis points to 85.9%, comparing Q1 2024 to Q1 2023.
Resident revenue increased $4.1 million, or 7.3%, comparing Q1 2024 to Q1 2023.
Net income for the Q1 2024 was $27.0 million which includes a $38.1 million gain on debt extinguishment in connection with the Protective Life Loan Purchase.
Q1 2024 Adjusted EBITDA, a non-GAAP measure, was $9.5 million representing an increase of 21.5% year-over-year and 1.8% in sequential quarters, driven primarily by continued improvement in operations.
Results for the Company's consolidated portfolio of communities: o Q1 2024 vs. Q1 2023: Revenue Per Available Unit ('RevPAR') increased 8.3% to $3,557.
Revenue Per Occupied Unit ('RevPOR') increased 5.9% to $4,140.
Community Net Operating Income, a non-GAAP measure, increased $1.5 million to $14.9 million. Adjusted Community Net Operating Income, a non-GAAP measure, which excludes $2.0 million of state grant revenue received in Q1 2023 (none received in Q1 2024) was $14.9 million and $11.4 million for Q1 2024 and Q1 2023, respectively.
Community Net Operating Income Margin and Adjusted Community Net Operating Income Margin (non-GAAP measures with the latter adjusted for non-recurring state grant revenue) were 24.6% and 24.6%, for Q1 2024, respectively, and 23.7% and 20.8% for Q1 2023, respectively.
Q1 2024 vs. Q4 2023: RevPAR increased 2.5% to $3,557.
RevPOR increased 2.4% to $4,140.
Community Net Operating Income decreased $1.4 million to $14.9 million. There were no state grants received during these periods.
Community Net Operating Income Margin was 24.6% and 27.4% for Q1 2024 and Q4 2023, respectively.
About the Company
Dallas, Texas-based Sonida Senior Living, Inc. is a leading owner-operator and investor in independent living, assisted living and memory care communities and services for senior adults. As of March 31, 2024, the Company operated 71 senior housing communities in 18 states with an aggregate capacity of approximately 8,000 residents, including 61 communities which the Company owns and 10 communities that the Company third-party manages, which provide compassionate, resident-centric services and care as well as engaging programming.
Safe Harbor
This release contains forward-looking statements which are subject to certain risks and uncertainties that could cause our actual results and financial condition of Sonida Senior Living, Inc. (the 'Company,' 'we,' 'our' or 'us') to differ materially from those indicated in the forward-looking statements, including, among others, the risks, uncertainties and factors set forth under 'Item. 1A. Risk Factors' in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (the 'SEC') on March 27, 2024, and also include the following: the Company's ability to generate sufficient cash flows from operations, proceeds from equity issuances and debt financings, and proceeds from the sale of assets to satisfy its short- and long-term debt obligations and to fund the Company's acquisitions and capital improvement projects to expand, redevelop, and/or reposition its senior living communities; increases in market interest rates that increase the cost of certain of our debt obligations; increased competition for, or a shortage of, skilled workers, including due to general labor market conditions, along with wage pressures resulting from such increased competition, low unemployment levels, use of contract labor, minimum wage increases and/or changes in overtime laws; the Company's ability to obtain additional capital on terms acceptable to it; the Company's ability to extend or refinance its existing debt as such debt matures; the Company's compliance with its debt agreements, including certain financial covenants, and the risk of cross-default in the event such non-compliance occurs; the Company's ability to complete acquisitions and dispositions upon favorable terms or at all; the risk of oversupply and increased competition in the markets which the Company operates; the Company's ability to improve and maintain controls over financial reporting and remediate the identified material weakness discussed in its recent Quarterly and Annual Reports filed with the SEC; the cost and difficulty of complying with applicable licensure, legislative oversight, or regulatory changes; risks associated with current global economic conditions and general economic factors such as inflation, the consumer price index, commodity costs, fuel and other energy costs, competition in the labor market, costs of salaries, wages, benefits, and insurance, interest rates, and tax rates; the impact from or the potential emergence and effects of a future epidemic, pandemic, outbreak of infectious disease or other health crisis and changes in accounting principles and interpretations.
Contact:
Jason Finkelstein
Email: ir@sonidaliving.com
SONIDA SENIOR LIVING, INC. 
