GENESIS HEALTHCARE REPORTS THIRD QUARTER 2020 RESULTS; Company Provides COVID-19 Update11/9/2020
KENNETT SQUARE, PA – Genesis Healthcare, Inc. (Genesis, or the Company) (NYSE:GEN), one of the largest post-acute care providers in the United States, today announced operating results for the third quarter ended September 30, 2020 and provided an update regarding the impact of the 2019 novel coronavirus (COVID-19) pandemic on its business.
"The virus continues to have a significant adverse impact on the Company's revenues and expenses, particularly in hard-hit Mid Atlantic and Northeastern markets,” stated George V. Hager, Jr., Chief Executive Officer of Genesis. “While we are grateful for federal and state financial support received and committed to date, the stimulus funds recognized in the third quarter of 2020 fell nearly $60 million short of the Company's COVID-19 related costs and the estimated impact of lost revenue. Given the persistence of the virus, its intensification as we approach the winter months and the slow pace of recovery in occupancy, the Company remains reliant on adequate and timely government sponsored financial support to meet its obligations to patients, residents, caregivers and stakeholders."
“Our admiration and respect for all of our employees, who have been true heroes for the last eight months, only increases as they have come to work each and every day despite challenging conditions to care for our patients and residents. We are truly blessed by and grateful for their dedication and compassion.”
Third Quarter 2020 Results
- US GAAP revenue in the third quarter of 2020 was $0.94 billion compared to $1.12 billion in the third quarter of 2019;
- US GAAP net (loss) income attributable to Genesis Healthcare, Inc. in the third quarter of 2020 was $(62.8) million compared to $46.1 million in the third quarter of 2019;
- Adjusted EBITDA in the third quarter of 2020, which excludes the estimated impact of COVID-19, was $62.2 million compared to $34.7 million in the third quarter of 2019; and
- Adjusted EBITDAR in the third quarter of 2020, which excludes the estimated impact of COVID-19, was $148.4 million.
The Company estimates the COVID-19 pandemic reduced earnings nearly $60 million in the third quarter of 2020. Specifically, the Company recognized $34 million of federal relief grants and other support under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and $30 million of additional funding provided by certain states. The recognition of these funds in the Company’s operating results served partially to offset the estimated $124 million impact of COVID-19 related to lost revenue and incremental expenses incurred in the third quarter of 2020.
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