GENESIS HEALTHCARE REPORTS FIRST QUARTER 2015 RESULTS5/7/2015
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 quarter ended March 31, 2015.
Highlights for the Quarter
· Generated strong pro forma1 EBITDAR and EBITDA growth of 6.5% and 11.6%, respectively;
· 2015 adjusted EBITDAR and EBITDA guidance reaffirmed with confidence; EPS guidance adjusted for acquisition accounting;
· Previously announced expense reductions yield $6.5 million of savings in the quarter; on track to realize $30 to $40 million in 2015;
· Skilled Healthcare integration is going well. Company reaffirms Skilled synergy estimates of:
o $25 million (with upside potential) by mid-2016
o $13 million in 2015
o Approximately $1 million realized in the first quarter
· One newly built PowerBack Rehabilitation facility opened and one traditional skilled nursing facility acquired during the quarter; two additional PowerBack-like facilities acquired in May;
· 120 new therapy contract starts and a 24 rehab outpatient site acquisition expected in July;
· Non-core asset sales, facility divestitures and closed Real Estate Investment Trust (REIT) transactions resulted in $27.6 million in cash proceeds received in the quarter and $4.7 million in annual rent reductions.
“I am pleased to report a very strong quarter on a number of fronts,” comments George V. Hager, Jr., Chief Executive Officer of Genesis. “First, the operating performance of our core businesses was dramatically improved from the fourth quarter of 2014, particularly in the area of routine expense management. Second, the integration of Skilled Healthcare operations is going well and we expect to begin benefiting from the previously announced synergies in the second quarter. Third, and separate from the synergies, we successfully reduced our operating expenses by $6.5 million resulting from the strategy we began implementing in the fourth quarter of 2014. And last, we believe we’ve made excellent progress on new business development and deleveraging activities, including non-core asset sales and master lease amendments that will reduce fixed charges and increase facility ownership.”
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