Earnings wrap: Brookdale, CCA

Both senior living center operator, prison manager see occupancy slip

Brookdale Senior Living posted a net loss in the second quarter of $3.3 million, or 3 cents per diluted share, compared to a loss of $5.2 million the year prior. Revenues in the quarter were $748 million, up 4.5 percent from Q2 2013. Adjusted EBITDA — which excluded integration, transaction-related and EMR roll-out costs — was up 10 percent to $129 million. Occupancy fell slightly to 88.1 percent from 88.3 percent, but average monthly revenue per unit increased 3.3 percent.

"Despite a slight dip in occupancy, our strong rate growth and CFFO performance in the second quarter was driven by Brookdale's solid market position, disciplined pricing and cost control," Andy Smith, Brookdale CEO, said in a release. "These results, delivered during the period prior to the closing of the Emeritus merger, were evidence of Brookdale's operational expertise and investment thesis. Having now closed the Emeritus merger, we are confident that integration actiities will proceed on or ahead of schedule."

Shares of Brookdale (Ticker: BKD) are trading down slightly to about $33.20 in mid-day action Thursday. So far this year, they have risen more than 20 percent.

Prison management company Corrections Corp. of America posted a Q2 profit of $55.7 million, almost triple its number from the same time in 2013 when it booked more than $36 million in costs related to its conversion to a real estate investment trust. Operating profit slipped almost 4 percent to $65.5 million, while normalized funds from operations came in at 68 cents per share versus 66 cents a year earlier.

Revenues at Nashville-based CCA totaled $411 million in the second quarter, down from $425 million the year before and due primarily to the loss of some contract losses. Occupancy rates at the company's 64 owned or managed facilities fell to 84.9 percent from 86.2 percent a year ago while per diem revenues climbed 2.3 percent to $61.95.

CCA shares (Ticker: CXW) are up more than 4 percent Thursday to $34.46. Year to date, they're up 7 percent.