May 10, Officers Certificate for Genesis Health, Inc. d/b/a Brooks Rehabilitation. Relating to the Annual Financial Filing Information

Transcription

1 May 10, 2017 RE: Officers Certificate for Genesis Health, Inc. d/b/a Brooks Rehabilitation Relating to the Annual Financial Filing Information I hereby certify that the Historical Utilization, Selected Financial Information, Key Financial Ratios and Management Discussion and Analysis filed on May 10, 2017 constitute the annual financial information required by the Continuing Disclosure Agreement. I further certify that the information complies with the Continuing Disclosure Agreement and the Rule as required. DAC shall be entitled to rely on this certificate. If you have further questions about this matter please do not hesitate to contact me. Daniel R. Curran Chief Financial Officer

2 Selected Financial Information Combined Statement of Operations of Brooks Health System (000's) Net patient service revenue $ 41,821 $ 39,093 Contract Service Revenue 3,563 2,924 Investment Income 1,481 (3,236) Other 2,311 3,059 Total Operating Revenue 49,176 41,840 Salaries, wages, and benefits 32,246 29,626 Supplies 1,349 1,076 Depreciation and amortization 2,321 2,008 Leases and rentals Interest 2,227 2,207 Professional Fees Bad Debt Insurance Purchased Services 3,962 4,108 Other 4,375 3,495 Total Operating Expenses 48,348 44,137 Operating Income 828 (2,297) Community programs (1,240) (1,262) Unrealized (loss) gain on investments 13,508 2,505 Gain (loss) on bond/interest swaps 52 (7,037) Other income (13) (15) Revenue in excess of expenses $ 13,135 $ (8,106)

3 Combined Balance Sheet of Brooks Health System (000's) March 31 Assets Cash and cash equivalents $ 3,588 $ 6,756 Patient Receivables 22,479 22,588 Less allowance for doubtful accounts (1,113) (1,402) Net Patient Receivables 21,366 21,186 Other current assets 6,908 8,234 Total Current Assets 31,862 36,176 Investments 286, ,340 Assets limited as to use: Funds held by trustee 31,562 48,250 Board designated funds 2,030 1,930 Total assets limited as to use 33,592 50,180 Property and equipment, net 130, ,883 Land held for development 22,146 22,042 Other investments 4,923 4,991 Other assets, net Goodwill 20,247 25,515 Other intangibles, net 12,412 11,286 Liabilities and Net Assets Total Assets $ 542,116 $ 543,413 Lines of credit $ 39,192 $ 44,831 Current portion long term debt 4,936 5,686 Accounts payable & accrued expenses 22,784 29,693 Third party settlements 1,841 1,123 Other current liabilities - - Total current liabilities 68,753 81,333 Long-term debt, excluding current maturities 215, ,360 Other liabilities 8,048 14,298 Total Liabilities 292, ,991 Net assets: Unrestricted 247, ,678 Temporarily restricted 2,085 1,744 Net Assets 249, ,422 Total Liabilities and Net Assets $ 542,116 $ 543,413

4 HISTORICAL UTILIZATION The table below sets forth certain inpatient (Hospital) and outpatient utilization statistics for the three months ended March 31, 2016 and Inpatient Patient Days 11,984 12,091 Admissions Percentage of Occupancy 83.2% 84.6% Average Length of Stay Average Daily Census Outpatient Units of Service 279, ,152 Patient Visits 83,242 71,936 Units of Service Per Visit Home Health New Admissions- Medicare 1,658 1,849 Medicare Visits 37,114 43,853 Total Visits 43,804 52,321 Skilled Nursing - Bartram Patient Days 8,114 8,381 Average Daily Census Percentage of Occupancy (b) 90% 92% Skilled Nursing - University Crossing Patient Days 4,300 Average Daily Census Note: University crossing began operations September Not yest fully operational.

5 KEY FINANCIAL RATIOS DEBT SERVICE COVERAGE Revenue in excess of expenses $ 13,134,610 $ (8,106,170) Depreciation and amortization 2,321,337 2,008,319 Interest 2,225,551 2,207,070 Net Unrealized gain/loss on Investments (13,507,615) (2,505,490) Bond Swap Valuation gain/loss (51,941) 7,037,408 Income available for debt service $ 4,121,942 $ 641,137 Historical Actual annual debt service* $ 14,262,630 $ 14,303,760 Historical Actual annual debt service coverage Maximum annual debt service** $ 14,857,088 $ 14,857,088 Maximum annual debt service coverage *includes interest and principal on long-term debt **Maximum annual debt service of long term debt. LIQUIDITY Unrestricted Cash, Cash equivalents, and Investments $ 291,910,407 $ 276,025,548 Operating expense Per Day (excluding depreciation and amortization) $ 536,600 $ 460,683 Days Cash on Hand CAPITALIZATION Total Debt* $ 222,506,298 $ 231,077,675 Unrestricted Net Assets 247,570, ,678,495 Total Capitalization 470,077, ,756,170 Debt to total capitalization 47.3% 50.9% *Total debt for purposes of this table includes long-term debt, excluding notes payables. Total long-term debt excludes other longterm liabilities Source: Brooks Management