Genesis Healthcare, Inc. · OTC:GENNQ

Genesis Healthcare — Investor Presentation (November 2019)

21 slides from Genesis Healthcare's investor presentation, November 2019

  1. Slide 1: A leading provider of post-acute services

    A leading provider of post-acute services November 2019 © 2019 by Genesis Healthcare, Inc. All Rights Reserved.

  2. 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

  3. Slide 3: Agenda

    Agenda  Genesis Overview  Financial Review

  4. Slide 4: Genesis Overview

    Genesis If Genesis Overview Competitive Strengths Genesis HealthCare is one of the  Nearly 400 facilities across largest providers of post-acute care 26 states services in the nation.  Approximately 180 clinical Publicly Traded Ticker: GEN specialty units. ~60,000  More than 450 Genesis physician

  5. 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  Nearly 400 SNF and ALF facilities across 26 states  Top 5 states by licensed beds:

  6. 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

  7. 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

  8. 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

  9. Slide 9: Agenda

    Agenda  Genesis Overview  Financial Review

  10. Slide 10: Improving Same-Store Growth Trends

    Genesis If 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 10

  11. Slide 11: Same Store Avg. Daily Census Trends – January '15 to October '19

    Genesis If Same Store Avg. Daily Census Trends – January ‘15 to October ‘19 Average Daily Patients - Same Store Centers * • Since 2014, Genesis and the industry January 2015 through October 31, 2019 have experienced y-o-y declines in 35,400 occupancy / average daily patients. ... C: 35,000 • For Gen

  12. Slide 12: Same Store Average Daily Census Trends – October 5, 2019 – November 4, 2019

    Genesis If Same Store Average Daily Census Trends – October 5, 2019 – November 4, 2019 Average Daily P,a ti ent Trend M ,o,s t Recent 30 Day.s, Year ,o ver Year ::) (I) zLLI 2019 Daily Trend u ~ - <( C LLI l!l <( a:: LLI ~ 2018 Dai y Tirend Sat Tue Fri Mo,n Thu Wed Sat Tue Fri Mon 10/5 10/,8 10/11 1

  13. Slide 13: Portfolio Optimization Strategy – progress since 2015

    Genesis If Portfolio Optimization Strategy – progress since 2015 2015 2019 Inpatient Segment (End of Year) (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%

  14. Slide 14: Investment Case for JV Structures

    Genesis If Investment Case for JV Structures Near Term Benefits: Deal summary – 3 creative transactions • Eliminates rent escalators prior to closed between June 2018 and expected option exercise dates October 2019 • Year‐1 free cash flow accretive # of facilities subject to fixed price 46 • Delever

  15. Slide 15: LTC ACO Medicare Shared Savings Program

    Genesis If LTC ACO  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 sp

  16. Slide 16: LTC ACO (continued…)

    Genesis If LTC ACO (continued…)  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.

  17. Slide 17: Priorities in 2020

    Genesis If Priorities in 2020  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 o

  18. Slide 18: Appendix

    Appendix

  19. Slide 19: Reconciliation of Net Income to Non-GAAP Financial Information

    Genesis If 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. $ 46,09

  20. Slide 20: EBITDA

    Genesis If 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

  21. Slide 21: Adjustments to EBITDA (continued)

    Genesis If • 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 o

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