GENESIS HEALTHCARE REPORTS THIRD QUARTER 2015 RESULTS11/5/2015
KENNETT SQUARE, PA – (November 5, 2015) – 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 and nine month periods ended September 30, 2015.
• Previously announced expense reductions yield $10.2 million of savings in the third quarter and $25.7 million of savings through the first nine months of 2015; on track to realize $35 million in 2015;
• Skilled Healthcare integration continues as planned; approximately $4.1 million of transaction synergies realized in the third quarter and $8.1 million through the first nine months of 2015; on track to realize $13 million in 2015;
• Pro forma EBITDAR margins of approximately 13.4% grew 60 bps over the prior year quarter;
• Genesis received formal portfolio credit approval from the U.S. Department of Housing and Urban Development Program (HUD);
• Genesis’ planned acquisition of Revera Inc.’s 24 skilled nursing facilities and contract rehabilitation business is on track to close by year end, subject to regulatory and licensing approvals and other customary conditions.
“We are pleased to report EBITDA growth in excess of 10% for the third consecutive quarter, exceeding our own expectations,” comments George V. Hager, Jr., Chief Executive Officer of Genesis. “Our success managing costs and leveraging our scale through acquisition were the drivers behind our 60 basis points of year-over-year EBITDAR margin expansion. Our focus remains on areas of the business where we can position Genesis for growth, including operational execution, expansion of our rehabilitation therapy segment, and integration of newly acquired and developed inpatient facilities. In the near term, we expect our M&A pipeline, incremental realization of Skilled Healthcare synergies and execution on our other strategic initiatives to position us to sustain our earnings growth rate.”