Genesis Healthcare (GEN) saw its loss widen to $50.76 million, or $0.55 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $43.04 million, or $0.48 a share.
Revenue during the quarter dropped 5.64 percent to $1,389.13 million from $1,472.22 million in the previous year period. Total expenses were 34.21 percent of quarterly revenues, up from 33.92 percent for the same period last year. That has resulted in a contraction of 29 basis points in operating margin to 65.79 percent.
Operating income for the quarter was $913.86 million, compared with $972.81 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $129.59 million compared with $141.04 million in the prior year period. At the same time, adjusted EBITDA margin contracted 25 basis points in the quarter to 9.33 percent from 9.58 percent in the last year period.
"First quarter results were in-line with our expectations and we are very pleased with the execution and management of the controllable aspects of our business," noted George V. Hager, Jr., chief executive officer of Genesis. "Disciplined management of our costs, progress on receivable collections and bad debts, and continued positive growth in our value-based initiatives all contributed to a solid quarter. The majority of our Adjusted EBITDAR decline year-over-year can be attributed to the net impact of divestitures, reduced funding in the state of Texas and one fewer day in this year’s first quarter because of the 2016 leap year."
For fiscal year 2017, Genesis Healthcare expects adjusted revenue to be in the range of $5,400 million to $5,500 million. It forecasts net loss to be in the range of $159 million to $148 million.
Operating cash flow improves significantlyGenesis Healthcare has generated cash of $44.63 million from operating activities during the quarter, up 82.57 percent or $20.18 million, when compared with the last year period. The company has spent $21.30 million cash to meet investing activities during the quarter as against cash inflow of $58.12 million in the last year period.
The company has spent $22.94 million cash to carry out financing activities during the quarter as against cash outgo of $91.90 million in the last year period.
Cash and cash equivalents stood at stood at $51.79 million as at Mar. 31, 2017.
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