Genesis Healthcare, Inc. · OTC:GENNQ
Genesis Healthcare — Investor Presentation (November 2019)
21 slides from Genesis Healthcare's investor presentation, Nov 12, 2019
Slide 1: A leading provider of post-acute services
© 2019 by Genesis Healthcare, Inc. All Rights Reserved. A leading provider of post-acute services November 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation regarding the expected benefits of future opportunities for the Company and any other statements regarding the Company’s future expectations, beliefs, goals, strategies or prospects contained in this presentation constitute “forward-looki
Slide 3: Agenda
. Genesis Overview .. Financial Review Agenda
Slide 4: Genesis Overview
Genesis Overview Genesis HealthCare is one of the largest providers of post-acute care services in the nation. Publicly Traded Ticker: GEN ~60,000 dedicated teammates ~ 45,000 beds Operating Occupancy 87.3% as of September 30, 2019 Competitive Strengths .. Nearly 400 facilities across 26 states .. A
Slide 5: Operating With Geographic Scale and Scope
. Nearly 400 SNF and ALF facilities across 26 states .. Top 5 states by licensed beds: NJ: 11.5% PA: 10.7% MD: 8.5% NH: 7.1% MA: 7.8% 5 Operating With Geographic Scale and Scope .. Geographic density = operating efficiencies, strong hospital relations & coordinated sales/marketing strategi
Slide 6: Advantages of National Scale
Advantages of National Scale – … with regional & local focus … 6 Advantages Examples Contracting with National Payors • United Healthcare and Aetna Ability to Invest in Technology & Innovation • BPCI and MSSP • Industry leading technology platforms Purchasing Power • Cost efficiencies • Major vendor
Slide 7: Differentiation Through Specialization
Differentiation Through Specialization 7 PowerBack 100% ShortStay. Aggressive, highly personalized - designed to get patients home sooner Transitional Care Units (TCU) A rapid recovery option for patients requiring post-acute rehab and medical services due to illness, surgery or injury Memory Suppor
Slide 8: Genesis Physician Services
Genesis Physician Services .. Group practice specializing in sub-acute, skilled nursing & long-term care .. Dedicated Medical Directors & full-/ part-time Attending Physicians and APPs .. Clinical care partners for the entire Genesis care team .. 83% of facility admissions are seen by GPS providers
Slide 9: Agenda: Financial Review
. Genesis Overview .. Financial Review Agenda
Slide 10: Improving Same-Store Growth Trends
10 Improving Same-Store Growth Trends 3Q19 2Q19 1Q19 4Q18 3Q18 Occupancy 0.90% 0.80% 0.50% 0.30% -0.40% Skilled Patient Admissions -0.70% -2.30% -5.90% -3.00% -4.20% Inpatient Revenue 1.70% 1.60% 0.50% 0.85% -0.60% Quarter over prior year quarter comparisons
Slide 11: Same Store Avg. Daily Census Trends
11 Same Store Avg. Daily Census Trends – January ‘15 to October ‘19 • Since 2014, Genesis and the industry have experienced y-o-y declines in occupancy / average daily patients. • For Genesis, this y-o-y negative trend peaked in the June / 2Q17 period. • Since 4Q18 Genesis has seen y-o-y growth in s
Slide 12: Same Store Average Daily Census Trends – October 5 to November 4, 2019
12 Same Store Average Daily Census Trends – October 5, 2019 – November 4, 2019 Same store average daily census continue to show y-o-y growth through November 4, 2019
Slide 13: Portfolio Optimization Strategy – progress since 2015
13 Portfolio Optimization Strategy – progress since 2015 Inpatient Segment 2015 (End of Year) 2019 (Current) # of facilities (owned, leased or jointly owned) 492 370 # of states 34 26 % of beds in historic Genesis markets 62% 76% % of beds owned or subject to fixed price purchase options 19% 26% * O
Slide 14: Investment Case for JV Structures
14 Investment Case for JV Structures Deal summary – 3 creative transactions closed between June 2018 and October 2019 # of facilities subject to fixed price purchase options 46 Range of real estate ownership percentage in three transactions 0-46% Range of purchase option exercise dates at 10% above
Slide 15: LTC ACO
LTC ACO 15 .. Jan 1, 2016, Genesis Physician Services (GPS) entered the Medicare Shared Savings Program via its LTC ACO subsidiary. .. GPS operates the only captive SNFist Company in the industry and the only post- acute care sponsored ACO in the U.S. .. Manages over $155m of annual Medicare spend .
Slide 16: LTC ACO (continued…)
LTC ACO (continued…) 16 .. Entered into new ACO agreement and risk track Jul. 1, 2019 – Dec. 31, 2024. .. ACO can achieve 75% of the gain share but subject to downside risk. .. Increased confidence in our performance analytics and expect favorable reconciliation for the 2019 performance period. .. A
Slide 17: Priorities in 2020
Priorities in 2020 17 Continue to improve capital structure Capitalize on opportunities to reduce leverage and cost of capital Execute on transactions involving the ability to repurchase real estate Achieve 35% facility ownership or right to facility ownership Continue to execute on opport
Slide 18: Appendix
Appendix
Slide 19: Reconciliation of Net Income (Loss) to Non-GAAP Financial Information
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS HEALTHCARE, INC. TO NON-GAAP FINANCIAL INFORMATION (UNAUDITED) (IN THOUSANDS) Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Net income (loss) attributable to Genesis Healthcare, Inc. $ 46,097 $ (58,128
Slide 20: EBITDA and Adjustments to EBITDA
EBITDA We believe EBITDA is useful to an investor in evaluating our operating performance because it helps investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (interest expense) and our asset base (depreciation and amorti
Slide 21: Adjusted EBITDA definitions: newly acquired, constructed or divested businesses
• Loss of newly acquired, constructed or divested businesses. The acquisition and construction of new businesses is an element of our growth strategy. Many of the businesses we acquire have a history of operating losses and continue to generate operating losses in the months that follow our acquisit
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