Genesis HealthCare, Inc. (NYSE:GEN) released its official earnings result for the fourth quarter of 2015, consistent with the company’s initial report on January 25.
The company’s $249.70 million Pro forma Adjusted EBITDA for the full-year advanced 11.60% year over year while its $39.70 million Pro forma Adjusted EBITDA for the quarter rallied 14.20% quarter over quarter.
Meanwhile, Genesis HealthCare’s Pro forma Adjusted EBITDAR margins of 13% for the full-year surged 60 bps from 2014. The fixed 1.31x charge coverage ratio also gained from 1.20x during 2014.
The healthcare giant fully acquired 19 Revera, Inc. nursing facilities— 15 of which are acquired and four of which are leased— on December 1. Genesis HealthCare also acquired the latter’s contract rehabilitation subsidy. The acquisitions came in at a total of $158 million.
George Hager, Jr., Genesis HealthCare CEO, said that the management is pleased with the company’s growth, which has had four consecutive upbeat quarters. According to Hager, Genesis HealthCare continues to grow amid the pressure in the industry.
Revenue Guidance for 2016
Genesis HealthCare gave new adjusted net revenue guidance for the current fiscal year of $5.80 billion, up from the previous forecast of $5.70 billion. Moreover, it reaffirmed an adjusted EBITDAR projection of $795 million from an initial $765 million, an adjusted EBITDA expectation of $297 million from an initial $267 million, and an adjusted net income estimate of $0.29 a share from an initial $0.19.
The company’s revenue continues to soar as Genesis HealthCare focuses on capital strengthening efforts, which include refinancing of real estate bridge loans by the end of the year and gradually settling the incurred debts with free cash flow.
Acquisitions and Sales
Genesis HealthCare is also working on an acquisition of the real estate of five more facilities for about $40 million upon the completion of respective regulatory approvals. The effort is said to contribute $220 million of year-over-year net revenue and $24 million of EBITDA in 2016, excluding the consolidation of the Vermont facilities.
Last month, Genesis HealthCare unloaded 18 Assisted Living Facilities in a $67-million deal. The proceeds from the sale were used to settle the company’s real estate bridge loan debt of $54.20 million. The 18 Kansas facilities had net revenue of about $23 million and an EBITDA of $7.30 million last year.