Genesis Health Ventures Reports First Quarter Fiscal 2002 Results.Business Editors KENNETT SQUARE, Pa.--(BUSINESS WIRE)--Jan. 31, 2002 Genesis Health Ventures, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :GHVE) today announced operating results for the quarter ended December 31, 2001. As previously announced, the Company emerged from bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most on October 2, 2001 and adopted the provisions of fresh-start reporting effective September 30, 2001. Under the provisions of fresh-start reporting the terms of the Company's reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. were implemented, assets and liabilities were adjusted to their estimated fair values and a new entity was deemed created for financial reporting purposes. As a consequence, the financial results for the quarter ended December 31, 2001 are generally not comparable to the financial results for the same period in the prior year. Financial results in the attached financial highlights and consolidated statement of operations See Income statement. labeled "Predecessor Company" refer to periods prior to the adoption of fresh-start reporting, while those labeled "Successor Company" refer to periods following the Company's reorganization. For the quarter ended December 31, 2001, revenues were $669.5 million and net income attributed to common shareholders was $15.6 million ($0.37 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share). Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) related to the vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: of restricted employee stock grants. "Our liquidity position at the end of the quarter consisted of approximately $60 million of cash and the full $150 million of available borrowings under our revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. We continue to focus our operational efforts on improving receivable collections, enhancing revenue quality mix, reducing nursing agency utilization and pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. product acquisition cost. Additionally, we continue to evaluate certain under performing assets for closure or sale", commented Michael R. Walker, Chairman and Chief Executive Officer. The effects of the reorganization had a dramatic impact on the Company's results of operations, including nearly $24.0 million of reduced interest and lease expenses, and $14.2 million of reduced debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: and reorganization costs in the December 31, 2001 quarter compared to same period in the prior year. The Company's reported income tax expense of $10.1 million in the current year quarter is largely a non-cash cost due to the availability of net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. . During the quarter, the Company exercised an option to purchase three previously leased eldercare eld·er·care n. Social and medical programs and facilities intended for the care and maintenance of the aged. centers for approximately $10 million and refinanced approximately $22 million of mortgage loans at more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. rates of interest. Genesis Health Ventures, provides eldercare in the eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. through a network of Genesis ElderCare skilled nursing and assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. centers plus long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services nationwide including pharmacy, medical equipment and supplies, rehabilitation rehabilitation: see physical therapy. , group purchasing, hospitality, consulting and facility management. Statements made in this release, and in our other public filings and releases, which are not historical facts contain "forward-looking" statements (as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995) that involve risks and uncertainties and are subject to change at any time. These forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. may include, but are not limited to statements containing words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "may" and similar expressions. Factors that could cause actual results to differ materially include, but are not limited to, the following: changes in the reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. rates or methods of payment from Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. or Medicaid, or the implementation of other measures to reduce reimbursement for our services; changes in pharmacy legislation and payment formulas; the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of enactments providing for additional government funding; efforts of third party payors to control costs; the impact of federal and state regulations; changes in payor mix and payment methodologies; further consolidation of managed care organizations and other third party payors; competition in our business; litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. regarding our NeighborCare pharmacy operations' provision of service to HCR Manor Care Manor Care, Inc., through its operating group HCR Manor Care, is a major provider in the United States of both short-term post-acute and long-term care. As of 2007, it had more than 500 skilled nursing and rehabilitation centers, assisted living facilities, outpatient ; an increase in insurance costs and potential liability for losses not covered not covered Health care adjective Referring to a procedure, test or other health service to which a policy holder or insurance beneficiary is not entitled under the terms of the policy or payment system–eg, Medicare. Cf Covered. by, or in excess of, our insurance; competition for qualified staff in the healthcare industry; our ability to control operating costs operating costs npl → gastos mpl operacionales , return to profitability and generate sufficient cash flow to meet operational and financial requirements; and an economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. or changes in the laws affecting our business in those markets in which we operate. The forward-looking statements involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control. We caution investors that any forward-looking statements made by us are not guarantees of future performance. We disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements to reflect future events or developments.
GENESIS HEALTH VENTURES, INC.
FINANCIAL HIGHLIGHTS
(UNAUDITED)
Reconciliation of EBITDA Successor Company Predecessor Company
(dollars in Three Months Ended Three Months Ended
thousands) December 31, 2001 December 31, 2000
------------------ -------------------
Income (loss) before equity
in net earnings of
unconsolidated affiliates
and minority interest $ 15,771 $ (22,906)
Add back:
Income taxes 10,083 -
Debt restructuring and
reorganization costs - 14,209
Interest expense 13,059 34,154
Depreciation and
amortization 15,794 26,926
Gain on sale of
eldercare center - (1,770)
----------- -----------
EBITDA $ 54,707 $ 50,613
----------- -----------
Summary Segment
Information Successor Company Predecessor Company
(dollars Three Months Ended Three Months Ended
in thousands) December 31, 2001 December 31, 2000
------------------ -------------------
Inpatient Services (1) (2)
Revenue $ 354,010 $ 333,699
EBITDA $ $ 38,520 $ 28,805
EBITDA % 10.9% 8.6%
Pharmacy and medical
supplies (2)
Revenue (including
intersegment revenue) $ 299,640 $ 277,744
EBITDA $ $ 26,254 $ 23,206
EBITDA % 8.8% 8.3%
(1) The December 31, 2000 period was restated to conform to the
current period presentation which considers direct overhead costs in
the calculation of inpatient services EBITDA. The summary segment
information for pharmacy and medical supplies has historically
included direct overhead costs.
(2) The summary segment information does not include an allocation of
indirect overhead costs, which are estimated to be between 1% - 2% of
net revenues.
GENESIS HEALTH VENTURES, INC.
FINANCIAL HIGHLIGHTS
(UNAUDITED)
Selected Operating Three Months Ended Three Months Ended
Statistics December 31, 2001 December 31, 2000
------------------ -------------------
Occupancy 90.8% 90.9%
Patient Days:
Private and other 447,690 486,186
Medicare 281,646 262,789
Medicaid 1,301,773 1,328,433
----------- -----------
Total Days 2,031,109 2,077,408
----------- -----------
Inpatient Revenue Mix:
Private and other 23% 25%
Medicare 29% 26%
Medicaid 48% 49%
Inpatient Per Diems:
Private and other $ 184.75 $ 173.21
Medicare 339.74 316.08
Medicaid 129.67 121.98
----------- -----------
Total $ 174.29 $ 160.63
----------- -----------
Nursing labor costs
per patient day:
Employed labor $ 61.88 $ 58.12
Agency labor 9.19 8.38
----------- -----------
Total $ 71.07 $ 66.50
----------- -----------
Inpatient Beds (end of period):
Skilled Nursing -
Owned / Leased 22,843
Assisted Living -
Owned / Leased 1,559
-----------
Total - Owned / Leased 24,402
-----------
Skilled Nursing -
Jointly-Owned / Managed 6,755
Assisted Living -
Jointly-Owned / Managed 1,764
-----------
Total -
Jointly-Owned / Managed 8,519
-----------
Pharmacy beds served 253,704 254,188
Institutional pharmacy
revenue per bed $ 1,032.96 $ 956.58
GENESIS HEALTH VENTURES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED DECEMBER 31, 2001 AND DECEMBER 31, 2000
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
Successor Predecessor
Company Company
Unaudited Unaudited
Three Months Three Months
Ended Ended
December 31, December 31,
2001 2000
------------------ -------------------
Net revenues:
Inpatient services $ 354,010 $ 333,699
Pharmacy and medical
supply services 273,394 255,574
Other revenue 42,090 39,746
----------- -----------
Total net revenues 669,494 629,019
----------- -----------
Operating expenses:
Salaries, wages and
benefits 293,464 273,196
Cost of sales 162,646 151,370
Other operating expenses 151,842 144,435
Gain on sale of
eldercare center - (1,770)
Depreciation and
amortization 15,794 26,926
Lease expense 6,835 9,405
Interest expense (contractual
interest for the
quarter ended
December 31, 2000
was $61,752) 13,059 34,154
----------- -----------
Income (loss) before
debt restructuring and
reorganization costs,
income taxes, equity in
net earnings (loss) of
unconsolidated affiliates
and minority interest 25,854 (8,697)
Debt restructuring and
reorganization costs - 14,209
----------- -----------
Income (loss) before
income taxes, equity
in net earnings
(loss) of unconsolidated
affiliates and
minority interest 25,854 (22,906)
Income taxes 10,083 -
----------- -----------
Income (loss) before equity
in net earnings (loss) of
unconsolidated affiliates
and minority interest 15,771 (22,906)
Equity in net earnings
(loss) of unconsolidated
affiliates 615 (216)
Minority interest (157) 1,811
----------- -----------
Net income (loss) 16,229 (21,311)
Preferred stock dividends 630 11,500
----------- -----------
Net income (loss) attributed
to common shareholders $ 15,599 $ (32,811)
----------- -----------
Per Common Share Data:
Basic
Net income (loss) $ 0.38 $ (0.67)
Weighted average shares 41,037,500 48,641,194
Diluted
Net income (loss) $ 0.37 $ (0.67)
Weighted average shares 42,108,032 48,641,194
Note: The financial results for the three months ended December
31, 2001 are generally not comparable to the financial results for the
three months ended December 31, 2000 due to the adoption of
fresh-start reporting as of September 30, 2001.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion