senior housing industry Sector in dire straits?

H

Hookway

Hello All


Can someone help me understand the nature of the financial metrics for Assisted living

For example

Genesis HealthCare (GEN)

Possibly the 2nd biggest in the USA

employs some 66000 people with a relatively trivial market cap of $220M

thats about $3k of market cap per employee


and this is with 380 FACILITIES, ie about $700k in mkt cap per FACILITY, houses are worth more than that


Market cap is far less than annual revenue


The largest (Brookdale Senior Living, Inc) appears to be in worse shape


Am I missing something in understanding these figures or is there something seriously amiss


Any help in understanding this appreciated
 
Hookway said:
Hello All


Can someone help me understand the nature of the financial metrics for Assisted living

For example

Genesis HealthCare (GEN)

Possibly the 2nd biggest in the USA

employs some 66000 people with a relatively trivial market cap of $220M

thats about $3k of market cap per employee


and this is with 380 FACILITIES, ie about $700k in mkt cap per FACILITY, houses are worth more than that


Market cap is far less than annual revenue


The largest (Brookdale Senior Living, Inc) appears to be in worse shape


Am I missing something in understanding these figures or is there something seriously amiss


Any help in understanding this appreciated
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Did you check out the liabilities part of the assets and liabilities?
 
Yes. As far as I can read the balance sheet it appears they have giant debt and financing lease obligations. They are also operating with large losses.
 
Hookway said:
Yes. As far as I can read the balance sheet it appears they have giant debt and financing lease obligations. They are also operating with large losses.
More...
Well there's your answer. Probably made worse by contracts they have with tenants that are costing them more than they make but they can't get out of until the tenant dies.
 
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