Genesis Healthcare, Inc. · OTC:GENNQ
Genesis Healthcare — Investor Presentation (March 2019)
20 slides from Genesis Healthcare's investor presentation, March 2019
Slide 1: A leading provider of post-acute services
A leading provider of post-acute services March 2019 © 2018 by Genesis Healthcare, Inc. All Rights Reserved.
Slide 2: Safe Harbor Statement
Genesis If 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 “fo
Slide 3: Agenda
Agenda Genesis Overview Financial Review
Slide 4: Genesis Overview
Genesis If Genesis Overview Competitive Strengths Genesis HealthCare is now one of the More than 400 facilities across largest providers of post-acute care services in the nation. 29 states More than 200 clinical specialty Publicly Traded units. Ticker: GEN ~60,000 More than 450 Genesis physic
Slide 5: Operating With Geographic Scale and Scope
Genesis If Operating With Geographic Scale and Scope Geographic density = operating efficiencies, strong hospital relations & coordinated sales/marketing strategies Geographic diversity reduces regulatory risk More than 400 SNF and ALF facilities across 29 states Top 5 states by licensed bed
Slide 6: Advantages of National Scale
Genesis If Advantages of National Scale – … with regional & local focus … Advantages Examples Contracting with National Payors • United Healthcare and Aetna Ability to Invest in Technology & • BPCI and MSSP Innovation • Industry leading technology platforms Purchasing Power • Cost efficiencies • Maj
Slide 7: Differentiation Through Specialization
Genesis If Differentiation Through Specialization Strategic investments in sub-acute specialty units help differentiate Genesis PowerBack Clinical Specialty Unit Breakdown by 100% ShortStay. Aggressive, highly personalized - designed to Type get patients home sooner Transitional Care Units (TCU) A r
Slide 8: Genesis Physician Services
Genesis If Genesis Physician Services Overview Full and Part-Time Provider Growth Group practice specializing in sub-acute, skilled nursing & long-term care 500 461 452 425 Dedicated Medical Directors & full-/ part-time 450 Attending Physicians and APPs 400 360 370 197 Clinical care partners f
Slide 9: Agenda
Agenda Genesis Overview Financial Review
Slide 10: Improving Trends
Genesis If Improving Trends • Same store adjusted EBITDAR grew in each of the last two quarters. • 3Q18 – 2.6% • 4Q18 – 6.5% • Same store occupancy grew 30 basis points and continues to show improvement through March 2019. • Inpatient services segment generates 4Q18 revenue growth of 85 basis points
Slide 11: Adjusted EBITDAR less cash rents
Genesis If Adjusted EBITDAR less cash rents (in mils) • Declined y-o-y from 2015- $90.0 2017 due to industry-wide $80.0 $76.6 pressures. $70.0 $67.2 $63.0 • Financial restructuring in $60.0 $66.2 $50.5 $56.7 1Q18, produced growth in $53.5 $50.0 each of the last three $39.8 $40.0 $39.7 $47.8 $39.6 qu
Slide 12: Adjusted EBITDAR - Organic Trends – 2016 to 2018
Genesis If Adjusted EBITDAR - Organic Trends – 2016 to 2018 • 2H18 Organic Adjusted EBITDAR growth led by: • Aggressive cost management • Improved labor efficiency • A series of permanent cost reductions implemented in July 2018 • Total annual cost reductions of $50 million to be fully realized by e
Slide 13: Same Store Avg. Daily Census Trends – Jan '15 to Feb '19
Genesis If Same Store Avg. Daily Census Trends – Jan ‘15 to Feb ‘19 • Over the past 3 years, Genesis Average Daily Patients - Same Store Centers* January 2015 through !F ebruary 2019 and the industry have experienced 38,000 y-o-y declines in occupancy / average daily patients. 37,500 • For Genesis,
Slide 14: Same Store Average Daily Census Trends – February – March 11, 2019
Genesis If Same Store Average Daily Census Trends – February 9 – March 11, 2019 Av,e rag,e Daily Patient Tr,e nd Most Recent 30 Days, ¥ear ov,e r ¥ear I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Sa1t Tu,e Fri M ,o n Thu Sun W,e d Sa1t Tue Firi M ,o n ,2 /9 2/ 12 ,2 /15, 2/ 18 .21.21
Slide 15: Priorities in 2019
Genesis If Priorities in 2019 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 Continue to execute on opportunities to optimize the portfolio Exit non-core market
Slide 16: Appendix
Appendix
Slide 17: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Appendix Genesis If RECONCILIATION OF NET LOSS ATTRIBUTABLE TO GENESIS HEALTHCARE, INC. TO EBITDA AND ADJUSTED EBITDA (UNAUDITED) (IN THOUSANDS) Three months ended December 31, Twelve months ended December 31, 2018 2017 2018 2017 Net loss attributable to Genesis Healthcare, Inc. $ (68,953) $ (89,241
Slide 18: Reconciliation of Net Loss to Adjusted EBITDAR
Appendix Genesis If RECONCILIATION OF NET LOSS ATTRIBUTABLE TO GENESIS HEALTHCARE, INC. TO ADJUSTED EBITDAR (UNAUDITED) (IN THOUSANDS) Three months ended December 31, Twelve months ended December 31, 2018 2017 2018 2017 Net loss attributable to Genesis Healthcare, Inc. $ (68,953) $ (89,241) $ (235,2
Slide 19: Non-GAAP Financial Measures
Appendix Genesis If We use the following Non-GAAP Financial Measures that we believe are useful to investors as key valuation and operating performance measures: EBITDA We believe EBITDA is useful to an investor in evaluating our operating performance because it helps investors evaluate and compare
Slide 20: Adjustment Definitions
Appendix Genesis If Severance and restructuring. We exclude severance costs from planned reduction in force initiatives associated with restructuring activities intended to adjust our cost structure in response to changes in the business environment. We believe these costs do not reflect the under
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