Research Summary May 04, 2020 Today's Topics: LTC, RCM, SWVL, INTC Focus Research Key Revisions LTC - ALERT: 1Q20 Largely in Line; Initial COVID-19 Impact Better than Feared Jordan Sadler - (917) 368-2280 -
[email protected] LTC’s 1Q20 report was largely steady, with FFO falling in line with consensus and a handful of transaction activity that had been previously announced, including: a $13.5M SNF acquisition; the $72M sale of the remaining Preferred Care assets; and the repurchase of ~615k/shs under LTC’s repurchase program before the program was terminated. The Company also disclosed the initial impact from COVID-19 on its portfolio, as LTC collected 94%+ of its contractual April rent. LTC did not disclose the operational impact on its portfolio from the pandemic and also did not disclose the prevalence of COVID-19 in its facilities; however, we think the percent of April rent collected could temper fear surrounding SNFs (57% of revenues) and we suspect the stock could outperform its healthcare peers in today’s trading. Full report RCM - ALERT: RCM Fills the CFO Role Donald Hooker, CFA - (917) 368-2378 -
[email protected] R1 RCM announced a new CFO, Rachel Wilson, the previous CFO of the Data Centers business unit of Iron Mountain (IRM). She has no specific “healthcare experience;” however, it appears she was selected for her diversified experience across multiple larger organizations as well as her fit with culture and vision of RCM. RCM will report its 1Q20 results tomorrow (May 5) at 8 a.m. ET. The dial-in is: 833-968-2190 (code: 3155137).