Sonida Senior Living, Inc. (NYSE:SNDA) Q3 2023 Earnings Call Transcript

One of these communities was — 1 of the 4 communities with noncompliant mortgages as of June 30, 2023. To secure its ownership in this community, the company made a $700,000 payment to Protective Life to become current and compliant prior to the sale of loan. Overall, our debt is comprised of 80% fixed rate debt with the remaining variable rate debt fully hedged, yielding a weighted interest rate of 4.9% for the portfolio. Finally, as of today, the company is in compliance with all financial covenants required under its mortgages with the exception of 3 communities mortgage with Protective Life as more fully described in the 10-Q to be filed later today. Pinning on a few observations from our earnings release this morning, G&A, excluding the noncash amortization stock — of stock comp continues to decrease as a percentage of revenues.

For Q3, excluding nonrecurring transaction costs primarily related to the debt mod, G&A as a percentage of revenue remains below 10%, down from 14.5% in prior year. Finally, in Q3, the company recognized a noncash GAAP impairment loss of $6 million related to one community in the Protective Life loan portfolio. In summary, the company continues to be encouraged by the consistent improvement across all significant KPIs over the last 12 months. This operating trajectory combined with the company’s modified debt structure has Sonida firmly positioned to take advantage of both organic and inorganic opportunities in the marketplace to drive shareholder value in 2024. Back to you, Brandon.

Brandon Ribar: Thanks, Kevin. I’ll conclude today’s presentation by once again recognizing and thanking our leadership team throughout Sonida. I have the utmost confidence in this group of leaders to continue delivering high-quality service and care to our residents while running a sound business. It’s my privilege and honor to share the success they are achieving as we build Sonida into an industry-leading company. As we approach the end of 2023, I remain optimistic that continued revenue and margin growth coupled with a strengthened capital structure will deliver meaningful earnings growth in 2024. Camilla, please open the line for questions. Thank you.

Operator:

Operator: And with that, this will conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.