Mark McKenzie, Chief Executive Officer, Senior Care Centers made an announcement to SCC Team Members: I am pleased to announce that effective January 31, 2015 Senior Care Centers has acquired Paramount Health Care Company.Â Paramount Health Care Company has 14 skilled nursing facilities locations, and 1,700 full and part-time employees.Â They provide skilled nursing and rehabilitation services in the Austin, San Antonio, Lubbock and Houston markets.
Given this purchase, the annual revenue of Senior Care Centers is quickly approaching our billion dollar goal, which we believe creates the financial scale and operational leverage to drive shareholder value and profitable growth in an opportunity-rich consolidating market. Within a year’s time, we have more than doubled our talent, invested in upgrading our technology and enhanced many of our clinical solutions to aggressively compete for a greater share of our market, within and soon to be outside of the state. With more than a $800+Million Dollars in annual revenue and the best path to senior care in the state of Texas, Senior Care Centers is becoming a clear market leader. Currently our portfolio consists of:
- $800+ Million Dollars in top-line annual revenue
- #1 market share in the state of Texas
- Approximately 9500 number of residents served throughout the state of Texas
- Total employee population of 11,000
Having the #1 market share in the state of Texas, Senior Care Centers is well positioned to capitalize on our continued growth as the industry begins its migration to Medicaid Managed Care based services. The addition of Paramount Health Care’s portfolio enables a significant competitive advantage and ideally positions Senior Care Center’s to serve seniors even better throughout the state of Texas; now and well into the future.
Being fortunate to secure these new facilities on very favorable terms, we are able to significantly reduce our annual interest cost and enhance our operating flexibility. Our new capital structure, combined with the additional cash flow generation we expect from this purchase, positions Senior Care Centers to continue its goal of financial sustainability.
The company anticipates a 50% increase in overall earnings, driven by facility optimization, consolidation and economies of scale. With the purchase completed, Senior Care Centers’ expects the additional cash flow to allow for ongoing debt repayment and provide Senior Care Centers liquidity and flexibility to aggressively as well as responsibly pursue more growth opportunities.
Senior Care Centers’ disciplined approach to achieving profitable growth creates a dynamic and exciting environment for our team members, residents, family members, stakeholders, and business partners. We have an impressive track-record of driving innovation that drives growth, and I’m looking forward to helping each of you harness and unleash our ingenuity as we move into 2015.