OHI - Earnings call transcript Q1 2018 | Omega Healthcare Investors, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. And welcome to the Omega Healthcare Q1 2018 Earnings Call. All participants will be in listen-only mode [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions [Operator Instructions]. Please note this event is being recorded. to conference like Reber. to would now turn over the Michele I Ms. please ahead. Reber, go

Michele Reber

transitions including, and me or Booth; Thank generally. CEO, press uncertainties, morning. our during Form dispositions SVP good limitation, report statements. you, involve in With differ Comments and Marshall. CFO, which Officer, Insoft; that without made recent to financial or facts our Stephenson; factors operators, specific forward-looking conference Operations, and see Development business Jeff described Commission, Please financial releases XX-K, identifies and portfolio policy, Taylor and projections, today to Bob historical forward-looking condition portfolio risks prospects cause such materially our may payments, most results COO, of on or actual Corporate that may Dan Chief acquisitions, call results this forward-looking differ materially. not These Steven as outlook, events our statements, may our and contemplated dividend and filings restructurings, Securities those be Pickett; which actual Omega’s from cause are are the statements with statements our rent regarding Exchange

I FFO Financial adjusted will under yesterday. call are in measures, the financial usefulness of press call these as and well of available non-GAAP will www.omegahealthcare.com to the Generally measures, Principles, to section Taylor. the Accounting the our an under FFO, Accepted turn measures refer release During most adjusted FFO, site and as of such of to EBITDA. and some over we FFO, non-GAAP non-GAAP our as the Information of the today, FAD Reconciliations comparable the now case explanation in measure issued Web at

Taylor Pickett

dividend Today, thank Thanks, our you our call. and XXXX quarter trends and analysis morning. our Michele. And effort. guidance, XXXX data will our portfolio industry discuss strategic earnings workouts, repositioning and macro conference for I asset first Good joining

flow the over we’re to additional in sales million of assets. of million $XX we quarter strategic first sale, disposed quarter in of is sale trailing million. our related including assets disposed XX $XX in to revenue The proceeds of evaluating positioning, in cover cash million equates cash $XXX reduction our for $XX $X part As And while these held these The of assets not assets million, XXXX, flow XXXX. first asset assets the that month able the were yet approximately XX%. rent, in achieve to on is rent yields did we underlying

in progress Later local continued timeline. of Bankruptcy appetite XX private current will provide detail call, bankruptcy; is Our strong buyers. market sales a of by We’ve and obligations regarding portfolio resolved being paying is Signature process; assets for the made operators; today reflect more rent Orianna Chapter the SNF controlled is Dan results in great addressing middle Daybreak outside the the workouts.

dividend guidance. our XXXX to and Turning

dividend per share payout quarterly of $X.XX funds XX% for XX% distribution. of of ratio adjusted Our and of FFO, available reflects the

sales our discussed related will portfolio versus of dependent the timing timing the payout be the and we February assets guidance of FFO our with on call, of during As along redeployment capital dividend workout. ratio Orianna

AFFO back Again guidance We as per quarter that the rebound it big results in is to XXXX. Due quarterly it the likely $X.XX and capital in FAD this it to takes the sales takes our deployment to half timing, and the adjusted our rate. longer range redeploy to guidance FFO dip to have FFO then and impact from results quarter second restore adjusted longer a while per of $X.XX in our remains of FAD maintained our of capital, the will role AFFO run first our share, guidance share. $X.XX will $X.XX asset timing reduce play

to like would I trends, industry following. highlight macro the to Moving

hospital and First, of already reduced experiencing of hospital offsetting impact to These the impact we stay days. reduced to over of certified of admissions reduction demographics rents occupancy. improving slow. are growth length efficiencies that unabated are in We in-patient be demographics eventually the result, are in And believe respect reduced the the a industry with the aging Medicare population as reflected and stay the and will in-patient admissions. stable

pressure costs put continue labor flows to and coverage. cash Second, term near on operator

We expect continue will that XXXX. this throughout trend

more model, Omega should believe rate increase during Third, are proposed we be October has next the two of first months Fourth, Xst, the Jeff our years. favorable for positive provide making XXXX. and occupancy both new patient over facility operators. driven proposal CMS’s the steady payment the detail, several will Medicare but of proposed remained

Turning data to analysis effort. our

rolled we data many we years. initial analytics pronounced quarter, around which improving project, provide our for our around sense specifically some out operators pervasive the During will believe information of and demographics, tailwind

around a we’ve over now, variety factors a data year For partner our a business. with been of healthcare to analyze working

internal of our allocation as We’re externally in with our capital well results the as analysis using in this investors. communication decisions,

us information, know, allocate all investors an granular and local is As capital real optimally. to provides opportunity having estate regional

So to clarity the population best I We and more will of nursing extend be to that provide will allocate our quarters, Bob. we to call allowing the with will around can skilled capital this demographic conviction. additional providing benefit the around believe now coming turn over we investors findings. the space additional tailwinds, seniors. the from In information growing the timing

Robert Stephenson

good and you, Taylor Thank morning.

of million $X.XX on was quarter FFO XXXX. for reportable million dilutive a $X.XX $XXX the basis compared to share or first share as $XXX for per or per Our the quarter

to to provisions the per reduced accounts, approximately revenue exclude million $X $XXX do and a that effective that Care over any The not and option as revenue The decrease on since partially the as of X, by XXXX, million Preferred for million of and first $X.X $XX decrease care million million $X.X in non-cash lease we’ve well revenue for Daybreak the to Operating and and on million related cash in QX million million Orianna The $X the XXXX. basis, was preferred approximately for revenue were on the share Signature investments for million the July gains $XXX lease purchase for was lease stock of a quarter time $X.X related stock-based and of $XX includes revenue in in made I our as of placed reduced Our incremental of placed also amendments was of earlier, as million was compensation during Daybreak no up, of $XXX first revenue unrealized of revenue, to offset of buy revenue, record $XXX same a adjusted result common Orianna non-cash basis $XXX,XXX completed, quarter million made a XXXX revenue versus from combination of million facilities $XX uncollectable impact revenue of revenue, the period. million quarter XXXX, new quarter, million expense. of primarily $X.XX mentioned Genesis or capital of FFO $XXX cash facilities. XXXX. improvements quarter and revenue related $X.X

$X.X increase projected an in first G&A million a up $X.X above million million Our of our primarily in-the-money for G&A The of When of G&A with and expense is our expense $X.X was the to expense quarter quarter, in buy million. operator $X million million was legal $XX.X our million $X result increased expense. quarter restructuring. option line XXXX the up, workouts expenses which purchase $XX.X first $XX.X XXXX and is G&A purchase to and buy million related approximately eliminating option

transitions $X.X be million million approximately divestitures, sometime second to and we our quarter rate For G&A to related $X XXXX modeling resulting quarter. million, $X to run project expenses operator to purposes, returning workout, from fourth run-rate the million traditional quarterly before legal in to $XX.X

compensation second to cost expense cost, with million and quarterly of the overall the same from million. for excluding LIBOR financing debt we’ve be deferred for first higher associated approximately our non-cash quarter stock was XX related balances in in $XX approximately when expect $X and higher blending we approximately first facilities million the primarily versus $X XXXX. cash first million consistent expense interest in a Interest million $XX non-cash XXXX. of our addition, issuing the quarter, financing debt result of gain rates. resulted expense based the $XX In period XXXX of completed with in of $XXX The increase $XX of general, quarter, for a net to since in higher investments sold quarter of the million proceeds, In a new bonds the XXXX XXXX quarter recognizing million,

In final revenue on payment dispositions. for notes. slightly mortgage recorded first to three million $XX in over quarter, also $X.X these we the We related received million

write-off within Omega’s transfer straight will remarks. prices. to in operators XX estimate from We’ve net facilities resulting of portfolio. paid facilities Signature real provisions prepared $X During line we impairments of monthly new fair in or expected approximately Signature approximately update Dan In values accounts of the XX% selling his provide on the receivables, value reported related QX, estate million its approximately of contractual book $X an quarter, their uncollectable to rent. on in to recorded the reduce to the XX million

result, a As grow. receivable the balance continued to

Signature’s rental by receivables potential are March revenue report be and partially accrual Based basis for quarters. we over outstanding, had XXst, payments to on over accounting. personal as at in the And million XX as well time will held million are letter we assets therefore, will offset of of of million we could the approximately classified evaluating in this is March discussing, we believe $X.X on valued As significant opportunities, XXst, and as next occur resolution $XX which $XXX we several approximately which credit, continue AR future At facilities Dan contractual had $XXX disposition asset guarantees. collectible. million at outstanding sale,

strong. remains sheet balance Our

note When our our For these X charge the annualized range call revenue one related and revenue cash forma month Orianna, times. X.XX leverage revenue ratio likely and expected adjusting pro over to was to annual for three fixed the X.X expected I turn related of from will now has QX sale, coverage to asset moving March in for be to times. months addition It’s where in outcome rental ended important debt approximately our Daybreak of EBITDA proceed Daybreak. EBITDA roughly our to no would Orianna XXst, times, including calculations the to to Jeff. related was net

Jeff Marshall

Act, Congress February which good the and any therapy impacting SNF. repealed not everyone. Since Budget Bipartisan caps, Bob has Thanks, permanently activity significant Xth legislative engaged outpatient in morning,

components; classification same April effective the issued date; which proposed those annual purchasing X, and rates, On Medicare significant XXXX; its resident model August commencement driven PDPM the increase, market proposed included payment and the three X. current Web rule, effective system increase system October X, the SNF basket RCS. of the common expected PDPM to the to regulatory October patient payment of Both front, replace or rate proposed discount the final rule the on Medicare day with and announcement the to are effective period CMS the new or rate annual of XXth, the by proposed subject value XXXX, XX base Medicare based a previously

market of X.X%, have legislation, been the Budget this X, the million Act, XXXX rate $XXX increase Bipartisan an X.X% only industry. or about $XXX the the October fixed under methodology basket Congress million of As the would Without increase representing rate left. part at SNF to market basket increase

net the realize be will costs. board, performance reduce X% October inflated protecting of SNF, in The market rate increase on rate increase increase the but a to Offsetting overall estimates million and X.X% program, re-hospitalization X. incentivize positive only is especially patient of X.X% Medicare against XXXX VBP purchasing, basket the this a the applied as based act. for October program to significant VBP development decrease rate the Medicare industry. rates this average Medicare cut reduce that decrease such, design that CMS mandated from to facility their to based on will metrics. was or last rates value to its considering adjustment legislatively across re-hospitalization is X, the rates Effective each representing X% this of access by positive VBP As SNF $XXX viewed discount, an was to XXXX initiated comparative decrease

model, ago, $XX,XXX increase, basket discount In intent VBP system about the from one on away based fee-for-service announced, pursue based of or rate net facility. X.X%, called $XXX to payment per to payment market move in representing or conditions, an expected effort increase So is the Medicare characteristics to the therapy rug patient year its the of be its million a RCS. driven CMS total,

of to effective Following an date period name analysis, CMS common October and significant with an extended changed RCS and to developed PDPM the XXXX. revisions X, the proposed

the complex platform, patient changed viewed pays services. current shifts a for industry scheme conditions, retains allocated services to treatments should scheme PDPM a as as therapy to effectively eliminated from pressure will industry the and same a payment dependence been therapy of of diem as is positive PDPM regulatory current has SNF Although, payments development the per conditions, generally funding treatment be payments emphasis patient for on that the will system. volume nursing be based driven all and against RUG on payments the under total remain to

from moderate any a concurrent stay the of ability the incentive up SNFs In lengthy length the adapting and addition, disease RUG protocols implementation group the patients of to rates treatments and systems. are or and additional match use therapy to Also opportunity XXXX reducing diem payments to of about length down physical days providing should payment CMS for and to reduced at of October the taper industry’s effective estimated excessive will an of by for effectiveness SNFs processing expected therapy patients yield a stay, to expense in training and for MDS therapy cohort transition a the exceed improve gradually $XX,XXX prior level. for Per savings period keep current by broader XX% stay, date to XX to facility therapy have number PDPM under will therapy the in X, per savings. margins very at serving change maximize patient realizing cost assessments. for first of significantly cost occupational thereafter,

payment patient assisting with is providers MDS RUG both call over free and to software submit their the new will to turn to payment. per to PDPM current now payment crosswalk levels coding Dan. levels CMS to Finally, diagnostic CMS I

Daniel Booth

and good Jeff Thanks, everyone. morning

X.XX operators Trailing portfolio for our XX was effectively EBITDARM with These As March XXXX, beds. during of X.XX XX, September flat versus X.XX EBITDARM XXX operator month X.XX respectively at the located approximately times in facilities XX,XXX the across trailing an states spread and of month operating party within ended operating and coverage XX were and XX, Kingdom. quarter fourth XX core and XXXX. Omega of the XX had facilities asset third respectively portfolio XXXX for United period times

Care. operators, matters, on Omega Signature, to restructuring portfolio with and Orianna, currently efforts is calls, our in Turning as noted ongoing previous of Preferred larger three

Bankruptcy known Holdings, As Support form Omega also Chapter release X, issued XX on Agreement or that filed Texas. noted Dallas, March in Court Omega’s Orianna, for will press that West XXXX, as the entered US in Orianna’s At voluntarily in Four restructuring. Restructuring time, into basis RSA a

of the from to subject court The for provides facilities operators XXX XXXX. pursuant occur concluded that will be the facilities to orderly in a While contemplates of currently will XX The provides to of reorganization bankruptcy leases remaining confirmed end bankruptcy XX be the that the to the plan by sale new approval, by such planned days, XX court. sale confirmation RSA and the transition RSA for Omega. also the Orianna of of RSA the

the will Orianna provide confident with the equivalent used rent portfolio our that stated $XX million. DIP fund of of additional Subject to provide the to sales in be their a day facility ongoing Chapter previously Omega In event rent during to million in liquidity will to million and working pay capital restructuring On full in in addition commitment provided current RSA $XX debtor-in-possession for operations. range bankruptcy, court or for Omega lender. the business Orianna’s facility has be the to the asset one remains to order to proceedings, of debt in approval, post-transition bankruptcy Orianna also liquidity to used $XX XX was up financing. to Orianna our

Signature years, of give all Moving $X.X plans. to include flow on a the plan, primary of material $XX these $X.X Omega believe Signature per effectiveness silo, deferment two virtually in pleased of maintenance million. operations, our improvements rent Healthcare. amount whole, changes capital Omega their to investments Omega other has a as obligations on ongoing expenditure necessary business approximately that following forward for a general or the report of physical million effectuated in restructuring and go loan for effective facilities the May the million to years and is a bifurcation RA. our with to agreement to has taken in into and XX, to manage XX legal commitment to for be continued XXXX, separate year basis, which These modifications, provisions the year facilities for up three to working lease funds a three Omega with number of an the their cash agreement. per ensure separates principle. by used RA liquidity which capital effectuate agreements to are include a provisions, amount of annum X% management capital seven and entered the provide provide all up noteworthy Signature term current of into the will Signature similar We and ability RA, the effectively landlords, Simultaneously which with our at The

Additionally, capital provide enhance by lender. which new its working also capital on formal liquidity multiple bifurcate Signature loans flexibility, has loans, and lease working and silo, replace additional closed the

nearly side longstanding relationship has medical with its and settlement vast have note, malpractice the Omega of majority agreements an Finally, On dating enjoyed reached Signature years. existing Signature a XX claimants. back excellent

well is for an incentivizing While in resolution, optimal, this existing it providing and the certainly maintaining restructuring respected team. and not adequate was while successful management

Chapter the XX State jury discussed one result and based million previous award $XX Preferred a bankruptcy our Kentucky. other of in call, Care, a operators of XX and top operator, as for and Orianna as to on addition of non our In Texas filed Signature

in in agreement Arizona, Care Kentucky, XX Preferred November lease Preferred Preferred currently XX Mexico, into to XXXX, all entered to of Omega has facilities New In Care facilities. and no transition While Care and Oklahoma. we exposure to related a Texas, Omega

expected bankruptcy We months longer be currently operators XX/XX/XX XXXX. operators results profiles. each at has have to quarter with underway. be credit EBITDAR for term less XX realistically fourth operated should is at subject identified XX Omega leases trailing the coverage re-leased remain will and separate under to by that facilities currently times zero X than These processes are state current court transition completed close approval transitions enhanced of It this Historically, and portfolio to coverage. with all

investments. to Turning new

quarter Omega two XXXX, million nursing in transactions, skilled purchase including Pennsylvania the of of Virginia. facility investments first $XX completed During in care new four nursing for one facility lease skilled one homes, UK and

in addition, fundings. In $XX CapEx Omega million provided

During poor either approximately $XX majority driven Omega proceeds. of disposed XX to the Omega these mortgages performance, obsolete were XXXX, million Subsequently an million operator in proceeds. quarter of first by disposed second operating deteriorating poor or net historical in market and/or $XX the Omega conditions for off and sought off net seven physical approximately sales of additional plans, three which quarter weak XXXX, facilities for in facilities The exit. relationship,

sell currently to approximately the additional coming XX We evaluating in are facilities quarters.

we While turn the outpace XXXX. review we Steven. discuss call I our will the believe strategic of with continue our the and dispositions, acquisitions if we most over Omega all upon will future, now for to to Based have of repositioning not our for likely operators. will dispositions dispositions majority pending identified believe portfolio near

Steven Insoft

Maplewood to second XXXX. approximately Manhattan. is Living, scheduled in Street Senior square open is to continue Thanks, cost Dan. on ALF Second to Rise everyone in our and conjunction In million, Memory Avenue we The in expected line the High to at today. of plans for project thanks XXX,XXX the $XXX half work with XXrd foot at And Care joining

million $XX buyout, Maplewood properties. leakage and the capital on our CPI minimize the of the tax to to manner leases the maximize of amount money for to New the the principals, quarter to conjunction the of quarter, City the and we in York fourth but option XXXX, project remainder addition, out properties the the the addition impart Including land end at Maplewood out also operator with and investment the of of first growth. purchase Omega In best-in- million portfolio with to in staggering growing the in relationship fund anchored dates Maplewood the its and healthcare the properties, Senior We homes of and In Kingdom. living of options Maplewood not of the purchase in investments Gold bought balance Housing as purchase only their the in our in all extended structured XX senior options. buyout on XX of Care $XX the well senior partial we $X.X billion our totaled living class United sheet, as by future pushing

living U.S. investment comprises Our in in assets the XXX, assisted overall now memory independent UK. senior care housing and

On housing X.XX REITs. the but lease times, basis, standalone listed amongst publicly represents the one covers only also at not senior the larger of this portfolios portfolio its healthcare obligations

reinvestment. in-house ability of coupling reinvestment The budget component remaining now successfully same ongoing Our this facilities, we million the in our commitment investment capabilities construction $XX Maplewood This on pipeline strategic predominantly of inclusive Manhattan. $XXX this continue million for construction of in quarter with open program. related having And to $XX.X expertise. first comments. to with CapEx concludes our projects important is XX related our a portfolio questions. active of we new to the the to million portfolio of was is XX invested will predicated new capability, total to Through million and and and our this our grow is tenants highlighted approximately prepared by investment this design construction our related operating $XX.X call

Operator

you. Thank

will Instructions]. morning’s question with session comes And the Vanacore question-and-answer first [Operator We this Stifel. from Chad now begin

Chad Vanacore

concessions are seems paying rent that was? what XX% especially restructuring and this. prior up just contractual right Am So about XX% on they’re And willing about touching to of better to the details. I that to me, rents Signature rent plan of that leading considering

and coverage expect does given CapEx how would So then compare involved? over that your to with time you funding improve the expectations? how And

Robert Stephenson

been about than XX% was better about they to is are of discount time. which XX up last was we’d have XX% go and forward more It improved the if right. gate for over paying its discount. over then obviously Signature it go up meets Chad, months, times on coverage slowly that budgets a And expect what your basis, the is numbers X.X

Chad Vanacore

what And that X.X is that on? was based at is or EBITDAR times, cash

Robert Stephenson

taking the the deferred account into correct. rent after rent, deferred it That's

Chad Vanacore

And then also to rent ahead Orianna, quarter receiving on fourth you mentioned first was schedule, that of weren’t anything some and in your we picking quarter. the

any that does your change perceptions? So in way

Taylor Pickett

part of a that’s the support against the the recorded happy offset million It’s process agreement. the but sheet Chad, But restructuring which accelerate week. dollar more not have it's to We'll being and balance of know income, Orianna. item. with rent month to being a we're we're cash this hoping in

We hearings the the of end towards week. have bankruptcy

Chad Vanacore

Then say occupancy stable. be that what the mentioned you’re of portfolio? pretty top when you in seeing on I Would think would your throughout seems end you your is prepared portfolio that the that -- remarks, just or

Taylor Pickett

consistent. pretty It's

great that, fairly moves side occupancy been any geography. we the portfolio. some we an occupancy There's know about steady history. seen particular pressure still on the feel across We haven't because And It's in it’s

Operator

next with from Sanabria comes of Juan And the America. question Bank

Unidentified Analyst

Kevin On coverage the -- that those I new is communities, operating Juan. be for had Care. assets Preferred operators This question what I at? on is just those the will guess a on

Taylor Pickett

with struggle but each portfolio is a consolidated that mentioned, very a basis, on flow state cash to Dan little bit little continues as different. So

well. perform to example, an Arizona As continues

a there. decent return rent achieve we’ll So

million, in the the improved on $X we'll at one on into a past, on at go these but stabilized, cash assets million about it's consolidated bigger expectation million basis. preferred on historical As care a we’ll results, where each coverages has flow operator of The plus. think today the essentially up very with expectation end the the post-transition master cash based rants $XX is relationship mentioned basis be significantly less, to once X.X flow we current times a But lease of with are going assets our to properties. the less, transition very is historic based nominal we’ve $X zero looking

Unidentified Analyst

And that purchase then on paid remaining you $XX potential options that the I could what be out options, secondly paid the million XX. purchase those on in Maplewood, hit? as XX, amount is with the buyout was guess out if

Taylor Pickett

value approximately The marketing is we in-money of million. the based $XXX purchase Maplewood’s did on effort option

thought Port Cape the out development option Connecticut it of to third projects. purchase their that for value. just Cod we XX South include project, a equivalent XX York be on value does of So City That effectively opened would New in not in-money

Operator

And you. comes question Yulico Thank the Nick next from UBS. with

Nick Yulico

wanted Signature just make a go I to I understood and sure to things back here. of couple

that of -- they So XX rent book GAAP said the booking you revenue? XXX% rent you paid the I of think booking, rent you you said of were you then quarter. the XX% did were in actually then the first as And

Robert Stephenson

revenue of the We of $XX million did. though We quarter book first in even they XX% paid cash. that in

Nick Yulico

outstanding receivable lending comfortable you and since comfortable going lend also million. you are collect that $XX that you ultimate down, rent the on them, Why to think I there’s going of that why $XX you're to I for said is are to them. guess you're And that up -- them agreeing top here

is recoverable? mean situation receivable that I is that where So how

Taylor Pickett

perspective we guarantees, personal of exists, repay. of look argue which for includes letter million very a further which of our is able going in with to the that improvement have that are support undrawn credit be $XX that nearly which that mention, Bob to position themselves the one from substantial. prospects they're As to And put coverage three some coverage credit,

sheet, with results their based they'll otherwise current balance credit go we we support, and of that we'll would've Now fact to But deal coverage period liabilities at time the to been going forward. operating their monitor that in take have on the it's as hanging feel a comfortable. and the

that to something on to go we’ll a not we expectation forward look is Signature that's continue record. that's quarter. monitoring to basis. But perform they'll And we’ll say our every and won't at So continue be

Nick Yulico

the guess you’re you don’t your I that back? rent this. your agreeing off them their does lenders. get lending in help ability helps quite terms But them I How capital of mean, lend I understand to working to million, pay which $XX

Taylor Pickett

It’s flexibility them pay pay The It's lending Med provides restructure. lending settled that are liquidity gives one of vendor to to the but is being part drawn issues, to them liquidity. against collateral government, and that liquidity some it day with deal the their the problem. other that collateralized with issues been claims have the fully not which mal

the manage to very, So enterprise. them have enough off without didn't we thing do go to large is liquidity very want a

Nick Yulico

the able you rent. rules of book standpoint? or rents how the current whether then you you back to of from collecting can of judgment think collect not if the you’re How that are rent And not long under XXX% all accounting the does work and this

Taylor Pickett

But We’ll you’re we'll Nick. at again, real based Picture, their monitor but on on the every about through Dan in into the and that. and coverage. getting look big of we go already call entirety. look what quarter of had the every collectability we’ll at you Signature future that collectibility talked offline payer But details And coverage quarter, anticipate its

Nick Yulico

regards then to to I prepackaged guess bankruptcy If as some with to well and I'm similar solution. for were bankruptcy, related have does future Orianna? you working understand this earnings revenue as then just to what's and trigger on write-off of receivable, into revenue they bankruptcy, issue to of totally trying off charge to that accounting Is avoid what’s to into risk Signature how some go the going at shut here an understand accounts scenario a like

Daniel Booth

two the not now I court was with old with. of in thing settlements was enormous a with constituents. vendors. There restructures agreement only whole absolutely whole number claimants capital new the also but landlords of the and purpose this in begin restructuring, some There this that’s with came a Well, mean centered other working capital around The with discussions amount primary to in restructuring avoids out of lender. of their was working Med lender an took just

So care yes, And this Signature. whole any of on in bankruptcy think we host that issues took of point Signature a of that different but care risk at takes over this time, face.

Taylor Pickett

second there's absolutely. any the part of bankruptcy what can impacts we Nick if record, with that And absolutely vendor your question, a

Nick Yulico

if with Even I pretty that your back quarter I report, in mean I question, last your $XX with and was guess add look lease with variance. like cash your you operating one inducements flow was FAD still FAD your flow Just Maplewood, operating $XXX looks there first the million. if versus you're in you the million, cash at big

what And right besides So mean earlier, that is Signature think going there was going and Taylor, or a there's about -- the what's your in cash quarter. does difference be $XX with sad couple credit the -- to FFO your line down other there. operating now your we operators? I FAD think a approve, you you -- it by talked difference I first million on about flow almost the should else how does doesn't borrowing quarter. it in eventually look cash like you're instead of going with dividend because it the second How you've like on operating covering flow looks covered

Daniel Booth

Let me Nick. start Taylor I’ll and jump in, then let

have section but about So add note million we had unsecured $XX $XX roughly interest million operations the interest. July, and the $XX flow $XX we January million and payment we number pay from that through senior majority cash then that of our of Maplewood timing. to that of million on you that once

these quarters, out. an back timing down the $X other base. think purchase you factors I that and get pay all accrual those the When related pay other So items, add it's to you we XX% million our plus

Taylor Pickett

in low FAD cushion do timing know that's the it and about very sales basis, all of even there, inducement share can is look the I Orianna there's -- payout. $XX the mean you million Orianna. just the And you And our per I provides that's solid as in that range it mentioned. a share a I’d of when versus next per see on but that’s during redeployment flow timing lot of timing our think more comment interest item Bob capital we of only all quarter, flow when equivalents of end we $X.XX rent that’s walk significant, which $X.XX that you accounting number. or a valuable through projected of at lease the cash again, rent a cash to no add terms at it's and cash Bob in is

that’s will to So clear we’re And But be we we we part as with this of we reposition. that go what want us just affect where to quarter-to-quarter. comfortable through have year are. timing

Nick Yulico

number, paid that the right? that and though rent doesn’t $X.XX clear as that revenue, because of be that FAD Signature cash you’re it on Just include report fact hasn’t XXX% you all right, totally is a not their booking

Taylor Pickett

That is also not to be clear. a just cash flow measure as well,

Nick Yulico

I was just wanted to be clear on that. Thank you.

Operator

is Okusanya And question you. the with next Jeffries. Tayo Thank from

Tayo Okusanya

bit the whether that a about $X.X lead to increased particular a of talk all, Could provisioning tenant just all of First million. the the was what host that little tenants? in you quarter, will or expense

Daniel Booth

and to We that straight receivable. get were saw transitioned some line we the write-off properties

Tayo Okusanya

during hit? that about think cash And all, in -- in there just some your cash when payment why then was is guess interest the your second they’re whether of in -- time. getting interest talk a income was that of portion paid you you’re bit statement of Could why quarter, this, the I of little whether income was I

Robert Stephenson

down, million Genesis it was paid of So pieces time. that roll that to paid approximately pieces related $X.X is of in in Genesis and that’s and the there cash were -- time

Tayo Okusanya

is And then there’s changes, restructuring. about about out think the challenging what challenging of been talk how some CMS resolution little Orianna there, media you a bit bankruptcy. Could again, bankruptcy I the and there you the CMS that just about that reports

Taylor Pickett

there which that the transitioned ensure unusual are is anyone is What back picked. what to look where a that government. all what made, right is the at fact The aware motion and Actually, today. the obligations government if modest, be there that off CMS’s to motions the are that the any is would was CMS are are Tayo, and expectation the was without one any, no owed that to doing court clear there point, government call not to it protecting modified -- -- challenging Since government’s the went that with without, is to the the CMS has were objection bankruptcy for literally properties make government right back is the they’re is CMS obligations approval, good in so the all, they fact nothing is question. sure there if make they there at

of noise created this we was that will don’t bit pick been forward a little resolved impact procedurally that on a that was basis. that’s it So

Tayo Okusanya

those think mind don’t the any bidders that for assets? changes you And of potential

Taylor Pickett

No, any any that we at forget all. transition bankruptcy, about not that transition This Dan at is engage normal in, is through. working

make corrected small. have and correct, was government procedural their are motions -- and to We are need to typically government the that absolutely obligations to conform position. with sure numbers resolved. to And the go be the we've But frankly, those there no

Operator

from Thank you. And comes the next Capital One. Bernstein question with Daniel

Daniel Bernstein

I sale X.X service new, X.X rent just to be? to want make to I that the the of Signature. and coverage go that just with understood back point that’s I XX some immediately after months going or want like XX, restructuring coverage, down sure is resetting over at you precisely is When wise understand what the the to road?

Robert Stephenson

That’s X.XX actual results.

Daniel Bernstein

back that is the AR rent get certain reset mechanism on to they or And some some start where of guys you deferred paying that -- meet if books? hurdles, there back any of that's some rent they

Robert Stephenson

reset excess in provision we're flow. So three the entitled they’re years There is waterfall of to also both. cash a a there's majority a whereby recent

Daniel Bernstein

there are coverage you I guess that hit hurdle work? there X.X have to does certain Is how at certain hurdle or that --

Robert Stephenson

pure built deferred the there's really with taken certain of in. you comes in reserved first out excess But are have waterfall No, will. that it's flow is -- that flow the And rent. out no, certain if not things that cash reserves cash -- that thing it’s a

Daniel Bernstein

normal are maybe them there and do and risk or any? at if that if bumps bumps, to some put excess just to get some distressed Just are understand the -- there? how -- trying bumps they going somebody again of risk become if to trying the rent that What are do rent, of the there, understand to lease then back higher than

Taylor Pickett

didn't basis. escalators, and go forward they change continue on on, X.X% the we remained they a So

Daniel Bernstein

And hospital should system thoughts credit improved system. HCR -- and over well take Just seems systems, you about operating managed operating versus living then side, be side you? of to Have like Have assets, owning it's changes are any nursing owning buying what credit managed have from certainly one the systems of with is to dynamic if the along skilled system assets. operators? real care current your and systems, peers assisted you -- hospital hospital approached is, your they the purchased hospital an it it or care estate

Taylor Pickett

and where in system. next things may terms entrée It's seen level part the -- the delivery the to Look, big the more the nurse you're of them the we a this of right monitoring over we’ve and into and it. attention home I is system question hospital think the of of interesting. asking hospice business head decade, first based in it’s facility it. see pay We care,

Our board about it. is engaged in discussions

interesting. interesting it it's to how out. see So we think It'll be plays

Daniel Bernstein

yet, You’re not one-off quarter sure trend it’s yet? trend not a

Taylor Pickett

makes Sure, it… this question

Operator

to Pickett as comments. are closing you. like time, I call there Thank And no for to return present any at Taylor questions would

Taylor Pickett

may you today. be that ups call have. follow any for for our and Thank team the joining you Bob everybody will available

Operator

Thank you. The conference is you presentation. now today’s concluded. attending Thank for

lines. your disconnect now may You

Omega Healthcare Investors (OHI) 8 May 182018 Q1 Earnings call transcript