Genesis HealthCare Reports Third Quarter 2016 Results

Announces Planned Divestiture of Facilities in Eight States to Focus on Core Markets

Recently Announced New Leases Reduce Prior Lease Obligation by $440 Million through January 2032 Third Quarter EBITDA Meets First Call Consensus Estimate

KENNETT SQUARE, Pa., Nov. 03, 2016 (GLOBE NEWSWIRE) -- Genesis HealthCare (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, 2016. 

Third Quarter 2016 Results
  • US GAAP revenue for the third quarter of 2016 was $1.419 billion compared to $1.416 billion in the prior year quarter;
  • US GAAP net loss attributable to Genesis HealthCare in the third quarter of 2016 was $20.5 million compared to GAAP net loss of $29.0 million in the third quarter of 2015;
  • Adjusted EBITDAR in the third quarter of 2016 was $172.1 million compared to $188.8 million in the prior year quarter; and
  • Adjusted EBITDA in the third quarter of 2016 was $47.8 million, matching First Call consensus estimates, compared to $67.2 million in the prior year quarter.

"We delivered another solid quarter despite near-term headwinds and continued to position Genesis for success," said George V. Hager, Jr., Chief Executive Officer. "The planned and completed divestiture of geographically non-strategic facilities and the recently announced new leases build on the actions we have taken to improve our asset quality, capital structure and performance. Over the past year, we have integrated acquisitions, brought down our cost base, paid down debt and divested non-strategic assets, creating a strong foundation for profitable growth in 2017 and beyond."

"Strategically, we are positioning Genesis to thrive in the emerging world of value-based purchasing," Hager continued. "The deterioration in skilled census patterns is moderating quarter-on-quarter and our unique value-based initiatives are continuing to demonstrate promising results that we expect will make meaningful contributions to the bottom line next year. We believe we are establishing a 'best-in-class' track record with hospitals and payers by getting ahead of the curve on improving outcomes and lowering costs, and I am excited about our opportunities for gaining market share and generating financial upside for our shareholders as our strategy yields positive results."

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