Brookdale Senior Living’s (NYSE: BKD) Labeed S. Diab will resign as the company’s chief operating officer effective October 28, according to a Monday press release.
In addition to announcing the resignation, Brookdale is projecting lost revenue from the impact of Hurricanes Harvey and Irma, specifically to its home health business line in Florida.
Diab joined Brookdale in November 2015 from Walmart’s (NYSE: WMT) U.S. health and wellness division. His hiring was part of a larger executive team shakeup. Now, Diab is leaving the company to pursue a different opportunity, according to the press release. The company has not revealed a COO successor plan, or further details about Diab’s next venture.
Brookdale operates roughly 1,039 senior living communities across 46 states. Its ancillary services division includes home health and hospice care, as well as a variety of outpatient therapy programs.
Hurricane, wildfire damage
All but one of Brookdale’s 171 communities in the Texas and Florida areas impacted by Hurricanes Harvey and Irma have resumed operations as of Monday; however, seven communities will continue to experience some disruption as storm damage is repaired, the company reported.
As a result, the company expects a negative impact to adjusted EBITDA of approximately $12 million to $13 million for 2017. Adjusted EBITDA for the third quarter of 2017 is expected to reflect a negative impact of approximately $9 million, with approximately one-third expected to result from lost revenue in the company’s home health business in Florida.
In addition, adjusted EBITDA for the fourth quarter of 2017 is expected to reflect a negative impact of approximately $3 million to $4 million, divided between lower ancillary services revenue and increased operating costs. Further, Brookdale estimates that it will incur extra capitalized costs of approximately $13 million to $14 million for physical plant remediation.
Brookdale is also keeping a close watch on the wildfires in California, which so far have impacted approximately 20 of its communities. However, as of Monday, none of the communities have experienced major damage from the wildfires, according to the press release. The provider evacuated the residents of six communities, two of which have returned to full operation; meanwhile, other communities are hosting residents who were evacuated.
Written by Carlo Calma
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