Skilled Healthcare Group, Inc. announced its unaudited consolidated earnings results for the first quarter ended March 31, 2013. Revenue for the quarter ended March 31, 2013 was $218.9 million, a decrease of 0.2% when compared to $219.4 million in the first quarter of 2012. Net income for the quarter ended March 31, 2013 totaled $3.1 million, as compared to $6.3 million for the first quarter of 2012. Adjusted net income for the quarter ended March 31, 2013, totaled $3.6 million, a decrease of 42.5% compared to adjusted net income of $6.3 million for the first quarter of 2012. Net income per diluted share was $0.08 for the quarter ended March 31, 2013, as compared to $0.17 for the same period in 2012. Adjusted net income per diluted share was $0.10 for the quarter ended March 31, 2013, a decrease of 41.2% compared to adjusted net income per diluted share of $0.17 for the quarter ended March 31, 2012. Results for the quarter ended March 31, 2013 were negatively affected by three factors. First, the liability on professional liability claims increased by approximately $3.2 million more in the first quarter of 2013 than in the first quarter of 2012 due to increased reserves on existing claims. These claims are reviewed actuarially on a quarterly basis; this additional charge is not expected to become a trend. Second, hospice cap reserves were recorded in the amount of $0.2 million for the 2011 cap year and $1.2 million for the 2012 cap year as patients stayed on service for longer than expected. Finally, a customer of the therapy business unit declared bankruptcy, which resulted in a charge of $0.6 million on receivables due from this customer. EBITDA was $17.9 million or 8.2% of revenue, for the quarter ended March 31, 2013, a decrease of 31.2% compared to $26.1 million or 11.9% of revenue, in the same period a year ago. EBITDAR was $22.7 million or 10.4% of revenue, for the quarter ended March 31, 2013, a decrease of 25.7% compared to $30.6 million or 14.0% of revenue, for the quarter ended March 31, 2012. Income before provision for income taxes was $3.1 million against $10.4 million of prior year period. Net cash provided by operating activities was $4.5 million against cash used in operating activities of $1 million for the comparable period last year. The change in cash flow was primarily due to an $8.1 million improvement in operating cash flow from changes in operating assets and liabilities for the 3 months ended March 31, 2013, compared to the same period a year ago. The company provided earnings guidance for 2013. The company expects full year 2013 consolidated revenue to be between $880 million and $890 million, net income to be in the range of $21.7 million to $24.0 million; Interest expense, net of interest income to be $34.5 million; EBITDA to be in the range of $95 million to $99 million, Depreciation and amortization expense to be $26.0 million; EBITDAR to be in the range of $114.5 million to $118.5 million and net income per common diluted share to be between $0.57 and $0.63. This guidance includes the results of the first quarter of 2013 and assumes the following: Medicare increase of 1.4% beginning October 1, 2013; 2013 capital expenditures of approximately $20 to $23 million; Average interest rate on outstanding debt of approximately 7.8%; No benefit from HUD financing and an effective tax rate of 37%.

Skilled Healthcare Group, Inc., Q1 2013 Earnings Call, May 07, 2013

Skilled Healthcare Group, Inc. announced that they will report Q1, 2013 results at 5:00 PM, Eastern Standard Time on May 06, 2013