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Mark J. Schulte, Brookdale's Co-CEO, said, "Despite the challengingeconomic environment, our third quarter CFFO per share increased 59% and samestore Facility Operating Income grew 8.2% over the same period last year. Webelieve that even with flat occupancy, Brookdale can achieve annual organicgrowth in CFFO per share of approximately 20%, and in addition to its dividendprovide shareholders with an attractive total return."
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As a dividend-paying company, Brookdale's management utilizes AdjustedEBITDA and Cash From Facility Operations to evaluate the Company's performanceand liquidity because these metrics exclude non-cash expenses such asdepreciation and amortization, non-cash compensation expense and straight-linelease expense, net of deferred gain amortization. Brookdale also usesFacility Operating Income to assess the performance of its facilities.
For the quarter and nine months ended September 30, 2007, Adjusted EBITDAwas $83.6 million and $237.0 million, respectively. Facility Operating Incomewas $162.8 million and $489.2 million for the quarter and nine month periodended September 30, 2007, respectively.
For the quarter and nine months ended September 30, 2007, Cash FromFacility Operations was $43.3 million and $120.1 million, respectively, or$0.43 and $1.18 per common share outstanding at September 30, 2007. This wasa 59% increase for the quarter and a 107% increase for the year-to-date periodon a per share basis over the same periods in the prior year.
Third quarter Adjusted EBITDA and Cash From Facility Operations includedintegration and acquisition-related costs and start-up expenses associatedwith ancillary services of $5.7 million, or $0.06 per outstanding commonshare, and excludes amortization related to capital leases and debt of $4.1million, or $0.04 per outstanding common share, for a net effect of $1.6million, or $0.02 per outstanding common share.
Same store revenues grew 7.2% for the twelve months ended September 30,2007 over the corresponding period ending in 2006, and same store FacilityOperating Income grew 8.8% when compared to the same period, including, inboth cases, the effect of the historical results of the ARC facilities.Similarly, same store revenues grew 6.3% for the quarter ended September 30,2007 over the same period in 2006, and same store Facility Operating Incomegrew 8.2% when compared to the third quarter of 2006.
Bill Sheriff, Co-CEO of Brookdale, commented, "On the ancillary servicesside, we continued to increase the penetration of these services among thelegacy Brookdale units while maintaining the profitability of the legacy ARCbusiness. By the end of the third quarter, we were providing ancillaryservices to 15,483 legacy Brookdale units, well ahead of our original plan.On the ARC side, ancillary services produced $183 of monthly NOI per occupiedunit, including home health services. We see great potential in the homehealth business to add to the growth of the ancillary services platform. Wehad planned to initiate these services in several legacy Brookdale facilitiesduring this quarter but longer licensing processes have delayed these starts.Despite the delays, we remain optimistic about the potential income from theseservices and expect to see meaningful contribution in 2008."
Since the beginning of the year, the Company has opened ex
