GENESIS HEALTHCARE REPORTS SECOND QUARTER 2016 RESULTS8/4/2016
KENNETT SQUARE, PA – Genesis HealthCare (Genesis, or the Company) (NYSE:GEN), one of the largest post-acute care providers in the United States, today announced operating results for the second quarter ended June 30, 2016.
Summary of Recent Financing Activity
• Addresses near-term refinancing and liquidity risks by entering into a new $120 million four-year term loan agreement on July 29, 2016 and paying off the prior term loan that would have matured in December 2017;
• Obtains greater flexibility to operate and grow by establishing covenants with significant credit parties that reflect current operating levels; and
• Closes on 18 HUD guaranteed mortgages year-to-date with a total of $129.1 million of proceeds used to pay down real estate bridge loans.
“The new four-year term loan facility and the amendments to our other loan agreements and significant master leases eliminate short-term debt refinancing risk and create stability in our capital structure providing a stronger foundation to operate and grow our business,” said George V. Hager, Jr., Chief Executive Officer of Genesis. “We worked in close collaboration with our long-term credit partners on these transactions and appreciate their continued support of our Company.”
Second Quarter 2016 Results
• Net loss attributable to Genesis Healthcare, Inc. in the second quarter of 2016 was $23.0 million compared to $19.2 million in the second quarter of 2015;
• Adjusted EBITDAR in the second quarter of 2016 was $189.4 million, reflecting $5 million of higher levels of same store professional liability risk and bad debt expense, compared to $198.0 million in the prior year quarter;
• Adjusted EBITDA in the second quarter of 2016 was $63.0 million, exceeding First Call consensus estimates of $57.6 million;
• The Company reaffirms outlook for 2016 in conformity with SEC’s updated guidance on non-GAAP financial measures.
“I am pleased to announce that Genesis produced a strong, stable quarter due to the hard work and dedication of our caregivers and employees across the country,” continued Hager. “Second quarter census was in line with our expectations and the rate of year-over-year census decline moderated as compared to the first quarter of 2016. Our focus on managing the controllable aspects of our business was a key factor in our success this quarter and we expect it will position us well for the second half of 2016.”
“At the same time, we are positioning the Company to thrive in a world that will increasingly reward value-based providers. Our participation in value-based demonstrations and our organizational focus on reducing avoidable hospital readmissions and managing down lengths of stay creates self-imposed near term pressure on skilled census but are vital to our long-term success. We are doing what is required for the long-term strength and success of the Company,” concluded Hager.
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