Genesis Healthcare, Inc. · OTC:GENNQ

Genesis Healthcare — Investor Presentation (March 2018)

19 slides from Genesis Healthcare's investor presentation, Mar 14, 2018

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

    A leading provider of post‐acute services March 2018 © 2018 by Genesis Healthcare, Inc. All Rights Reserved.

  2. 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

  3. Slide 3: Agenda

    Agenda  Genesis Overview  Financial Restructuring

  4. Slide 4: Genesis Overview: Competitive Strengths

    Genesis Overview Competitive Strengths Genesis HealthCare is now one of the largest providers of post-acute care services in the nation. More than states More than units. More than and nurse 450 facilities across 30  200 clinical specialty  Publicly Traded Ticker: GEN 425 Genesis physicians  ~70,

  5. Slide 5: Operating With Geographic Scale and Scope

    Operating With Geographic Scale and Scope coordinated sales/marketing strategies  Geographic density = operating efficiencies, strong hospital relations &  Geographic diversity reduces regulatory risk  More than 450 SNF and ALF facilities across 30 states Top 5 states by licensed beds:  PA: 10.7

  6. 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 cont

  7. Slide 7: Differentiation Through Specialization

    Differentiation Through Specialization Strategic investments in sub-acute specialty units help differentiate Genesis PowerBack 100% ShortStay. Aggressive, highly personalized - designed to get patients home sooner Transitional Care Units (TCU) A rapid recover option for patients requiring post-acute

  8. Slide 8: Genesis Physician Services Overview

    Genesis Physician Services Overview Full and Part-Time Provider Growth  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 75% of facility adm

  9. Slide 9: Genesis Rehab Services

    Genesis Rehab Services Value-Based Initiatives • New business line – Vitality to You • Extends GRS’ therapy services into the community; patient receives rehabilitation in the home • Designed to allow SNF’s to reduce average lengths of stay GRS - Growth Opportunities • Highly fragmented / non-capita

  10. Slide 10: Occupancy Trends vs Competitors

    Occupancy Trends vs Competitors 88.0% 86.0% 85.6% 85.1% 84.6% 84.0% 82.0% 80.0% 78.0% 77.0% 77.1% 76.0% 76.3% 75.7% 74.9% 74.7% 74.6% 74.0% 72.0% 3Q15 4Q15 1Q16 2Q16 Genesis 3Q16 Kindred 4Q16 Ensign 1Q17 2Q17 3Q17 ** Source: 10Q and 10K SEC Filings - Genesis and Ensign = Operating Occupancy - Kindre

  11. Slide 11: Genesis – Skilled Mix Trends

    Genesis – Skilled Mix Trends 25.0% 20.0% 18.7% 15.0% 12.5% 12.3% 12.0% 11.9% 11.2% 10.0% 7.3% 7.3% 7.2% 7.2% 7.3% 7.5% 5.0% 0.0% 3Q15 4Q15 1Q16 2Q16 3Q16 Medicare Mix 4Q16 Insurance Mix 1Q17 2Q17 3Q17 Total Skilled Mix 11 20.6% 20.3% 21.2% 20.2% 20.6% 19.6% 19.3% 19.7% 13.7% 13.4% 13.1% 12.9% 8.1%7.

  12. Slide 12: Agenda

    Agenda  Genesis Overview  Financial Restructuring

  13. Slide 13: Financial Restructuring Highlights

    Financial Restructuring Highlights  New financing / liquidity enhancements:  New MipCap /Apollo ABL lender extends $555 5-year credit facility million   Eliminates prior facility forbearance agreement Extends ABL maturity three years to 2023  Existing term-loan lenders expand second lien term l

  14. Slide 14: Financial Restructuring Highlights (continued)

    Financial Restructuring Highlights (continued)  Lease and loan agreements modified  $54 million of permanent annual cash rent reductions represent an 11% reduction in 2017 annual cash rents $8 million annual cash interest reductions represent a 10% reduction in cash interest obligations, after tak

  15. Slide 15: Restructuring Plan Pro Forma Analysis

    Restructuring Plan Pro Forma Analysis 15 LTM Sept 30, 2017 Pro Forma LTM Sept 30, 2017 Fixed Charge Coverage Ratio 1.11x 1.25x Lease Coverage Ratio 1.30X 1.46X Net Funded Leverage Ratio 7.22X 5.77X Net Adjusted Leverage Ratio 7.82X 7.30X

  16. Slide 16: Priorities in 2018

    Priorities in 2018  Continue to improve capital structure Additional opportunities to reduce cost of capital Significant opportunities to optimize the portfolio     Exit non-core markets with insufficient density to compete Exit unprofitable markets Selectively increase density in core markets

  17. Slide 17: Appendix

    Appendix

  18. Slide 18: Appendix: Non-GAAP Financial Measures

    Appendix 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 the results

  19. Slide 19: Appendix: Adjustments to EBITDA

    Appendix Losses 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

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