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Genesis Healthcare's (GEN) Q3 Earnings Beat, Improve Y/Y

Zacks Equity Research

Genesis Healthcare, Inc. GEN delivered adjusted operating earnings of 28 cents per share in third-quarter 2019. The Zacks Consensus Estimate was of a loss of 10 cents per share. This was primarily on the back of same store occupancy growth. Moreover, the bottom line came in against the year-ago quarter’s loss of 32 cents.

Operational Update

The company’s revenues of $1.1 billion missed the Zacks Consensus Estimate by 0.5%. Also, the top line declined 7.6% year over year due to lower licensed beds.

Adjusted EBITDA for the quarter was $34.7 million, down 69.4% year over year.

Operating expenses for the third quarter were $1143 million, down 3.4% year over year.

For the first nine months of 2019, the company recognized estimated Medicare Shared Savings Program (MSSP) income, net of expenses and provider distributions, of around $4.7 million.

Interest expense of $37 million plunged 68% year over year in the quarter under review.

Genesis Healthcare, Inc. Price, Consensus and EPS Surprise

 

Genesis Healthcare, Inc. Price, Consensus and EPS Surprise

Genesis Healthcare, Inc. price-consensus-eps-surprise-chart | Genesis Healthcare, Inc. Quote

Segmental Update

Inpatient Segment


As of Sep 30, 2019, the number of available licensed beds service were 43769, down 15.2% year over year. Also, available patient days based on licensed beds were 4026748, down 15.2% year over year.

Total facilities in the third quarter were 360, down from the 419 in the prior-year quarter.

Total registered patient days decreased nearly 12.7% year over year.

Rehabilitation Therapy Segment

Revenue per site for the third quarter dipped 1.9% year over year.

Financial Update

As of Sep 30, 2019, cash and cash equivalents totaled $34.8 million, up 67% from the level at 2018 end.

The company exited the third quarter with $4.7 billion of total assets, up 9.6% from 2018 end.

The company exited the third quarter with $1.4 billion debt, up 31.2% from the 2018-end level.

For the first nine months of 2019, net cash provided by operating activities was $15.7 million, up 12% year over year.

Business Update

In the third quarter, the company sold, exited or closed the operations of 22 facilities.

Zacks Rank

Genesis Healthcare carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Releases From the Medical Sector

Among other players from the medical sector having already reported third-quarter earnings, the bottom-line results of UnitedHealth Group Incorporated UNH, Anthem Inc. ANTM and Centene Corporation CNC topped the respective Zacks Consensus Estimate.

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