Genesis HealthCare Updates 2017 Guidance - Quick Facts

(RTTNews) - Genesis HealthCare (GEN) revised its 2017 estimated net loss attributable to company to include estimates of certain non-recurring/non-cash charges and greater precision in the estimated income tax provision. GAAP net loss attributable to Genesis is now expected to be in a range of $159.0 to $148.0 million. The high-end of the revenue range is being revised from $5.6 billion to $5.5 billion to reflect the known timing of certain recent facility divestitures. Revenue is now projected within a range of $5.40 to $5.50 billion.

The company said it expects to divest 12 underperforming assets or assets in non-strategic markets during the remainder of 2017. Since Genesis' last earnings announcement, the company has divested 25 skilled nursing facilities as part of its strategy to exit challenging, low density markets and focus on investment and growth in core, strategic markets.

"We continue to believe industry fundamentals will remain under pressure in 2017, but are encouraged by sequential volume and mix trends more in-line with historical seasonal patterns and some moderation in labor inflation. We are also ahead of schedule on our non-strategic asset divestitures, which will allow for increased focus on markets where we have geographic density," George Hager, Jr., CEO of Genesis, said.