Sun Healthcare Group, Inc. Reports 2011 Second-Quarter Results and EPS of $0.40
(firmenpresse) - IRVINE, CA -- (Marketwire) -- 08/01/11 -- Sun Healthcare Group, Inc. (NASDAQ: SUNH) today
announced its operating results for the second quarter ended June 30, 2011.
Results for the second-quarter period ended June 30, 2011
Regarding the Company's second-quarter results, William A. Mathies, Sun's
chairman and chief executive officer, stated, "Revenue growth and EBITDAR
margin growth in the quarter were in line with our expectations, leading to
$0.40 EPS for the quarter from continuing operations. Our focus on
attracting and caring for high-acuity, short-stay patients resulted in a 70
basis point increase in skilled mix days for the quarter, compared to the
second quarter of 2010. We have been particularly pleased with the
performance of our hospice business line, including the integration of the
recently acquired Countryside Hospice operations." Mathies concluded, "We
are reviewing the impact of the recently published CMS final rule, and I
note that our $88.5 million of cash provides us with flexibility to meet
the challenges that the CMS action presents."
Segment Updates
Sun's inpatient services business reported year-over-year revenue growth in
the quarter of $16.7 million, or 4.0 percent, and adjusted EBITDAR of $76.8
million for the quarter, up $5.0 million or 6.9 percent compared to the
same quarter prior year. Adjusted EBITDAR margin for inpatient services in
the quarter was 17.6 percent, up 50 basis points from the same period in
2010. Skilled mix revenue as a percent of total revenue increased by 310
basis points (to 41.3 percent) compared to the same quarter of 2010, driven
by continued growth in new admissions and stabilization in patient length
of stay. In the quarter, the number of Rehab Recovery Suites® (RRS) beds
was increased by an additional 80 beds, enhancing the ability to attract
high acuity patients. These additional beds bring total available RRS beds
to 2,072, an increase of 26.9 percent over the same quarter in 2010.
Included in the inpatient segment, revenues from SolAmor, Sun's hospice
business, increased $3.5 million from $11.4 million in the second quarter
of 2010 to $14.9 million in the second quarter of 2011. Same-store revenue
growth in the quarter was 9.7 percent or $1.1 million. An additional $2.4
million of revenue growth was attributable to the Countryside acquisition.
SunDance, Sun's rehabilitation therapy services business, reported adjusted
EBITDAR of $3.8 million, down from the prior-year quarter due to changes in
concurrent therapy reimbursement, which was effective on Oct. 1, 2010, and
also due to the implementation of the multiple procedure payment reduction
(MPPR), which was effective on Jan. 1, 2011. For the quarter, SunDance's
adjusted EBITDAR margin was 6.0 percent, an improvement of 100 basis points
sequentially over the first quarter 2011.
CareerStaff, Sun's medical staffing services segment, reported revenues of
$22.7 million for the quarter, down 2.9 percent compared to revenues in the
same quarter of 2010. Despite the decline in revenues, CareerStaff
achieved adjusted EBITDAR of $1.8 million and an adjusted EBITDAR margin of
8.0 percent for the quarter.
Cash Flow, Capital Structure and Rent Expense
At June 30, 2011, Sun had $88.5 million in cash and $150.5 million of
long-term debt. Sun's free cash flow for the second quarter of 2011 was
$6.1 million, after taking into account $9.3 million of cash used for
capital expenditures in the quarter. Rent expense in the quarter reflected
the second full quarter in which the increased rents resulting from Sun's
2010 restructuring were paid. Rent expense in the second quarter totaled
$37.0 million, consistent with first quarter rent of $36.9 million.
Withdrawal of Full-Year 2011 Guidance
On July 29, 2011, the Centers for Medicare and Medicaid Services ("CMS")
published its final rule for skilled nursing facilities, which establishes
Medicare rates for fiscal year 2012 commencing on
Oct. 1, 2011. The CMS final rule includes, among other things, a parity
adjustment that decreases rates by as much as 11.1 percent and adjustments
related to reimbursement for therapy services. Based on the complex nature
of the final rule and its impact on the Company's business, Sun is
withdrawing its previously announced financial guidance to investors for
2011. Sun anticipates providing updated guidance for the remainder of 2011
later this quarter.
Conference Call
As previously announced, investors and the general public are invited to
listen to a conference call with Sun's senior management on Tuesday, Aug.
2, 2011, at 10 a.m. Pacific / 1 p.m. Eastern, to discuss the Company's
second-quarter results for the period ended June 30, 2011.
To listen to the conference call, dial (877) 681-3378 and refer to Sun
Healthcare Group. A recording of the call will be available from 4 p.m.
Eastern on Aug. 2, 2011, until midnight Eastern on Sept. 2, 2011, by
calling (888) 203-1112 and using access code 8470544.
About Sun Healthcare Group, Inc.
Sun Healthcare Group, Inc. (NASDAQ: SUNH) is a healthcare services company,
serving principally the senior population, with consolidated annual
revenues in excess of $1.9 billion and approximately 30,000 employees in 46
states. Sun's services are provided through its subsidiaries: as of June
30, 2011, SunBridge Healthcare and its subsidiaries operate 165 skilled
nursing centers, 14 combined skilled nursing, assisted and independent
living centers, 10 assisted living centers, two independent living centers
and eight mental health centers with an aggregate of 22,898 licensed beds
in 25 states; SunDance Rehabilitation provides rehabilitation therapy
services to affiliated and non-affiliated centers in 38 states; CareerStaff
Unlimited provides medical staffing services in 45 states; and SolAmor
Hospice provides hospice services in 10 states. For more information, go to
.
Forward-looking Statements
Statements made in this release that are not historical facts are
"forward-looking" statements (as defined in the Private Securities
Litigation Reform Act of 1995) that involve risks and uncertainties and are
subject to change at any time. These forward-looking statements may
include, but are not limited to, statements containing words such as
"anticipate," "believe," "plan," "estimate," "expect," "hope," "intend,"
"may" and similar expressions. Forward-looking statements in this release
include the Company's expectation that its $88.5 million of cash provides
flexibility to meet the challenges in the industry as well as all other
statements regarding the expected results of operations, growth
opportunities and plans and objectives of management for future operations,
including expectations concerning the expansion of the Company's RRS
portfolio, acquisitions and the impact of changes in the Medicare payment
system. Factors that could cause actual results to differ are identified in
filings made by the Company with the Securities and Exchange Commission and
include changes in Medicare and Medicaid reimbursements, including with
respect to CMS's recently announced final rule, and the Company's ability
to mitigate the impact of such changes; the impact that healthcare reform
legislation will have on the Company's business; the ability to maintain
the occupancy rates and payor mix at the Company's healthcare centers;
potential liability for losses not covered by, or in excess of, insurance;
the effects of government regulations and investigations; the ability of
the Company to collect its accounts receivable on a timely basis; the
amount of the Company's indebtedness; covenants in debt agreements and
leases that may restrict the Company's activities, including the Company's
ability to make acquisitions and incur more indebtedness on favorable
terms; the impact of the economic downturn on the business; increasing
labor costs and the shortage of qualified healthcare personnel; and the
Company's ability to receive increases in reimbursement rates from
government payors to cover increased costs. More information on factors
that could affect the Company's business and financial results are included
in Sun's filings made with the Securities and Exchange Commission,
including its Annual Report on Form 10-K and Quarterly Reports on Form
10-Q, copies of which are available on Sun's web site, . There
may be additional risks of which the Company is presently unaware or that
it currently deems immaterial.
The forward-looking statements involve known and unknown risks,
uncertainties and other factors that are, in some cases, beyond the
Company's control. Sun cautions investors that any forward-looking
statements made by Sun are not guarantees of future performance and are
only made as of the date of this release. Sun disclaims any obligation to
update any such factors or to announce publicly the results of any
revisions to any of the forward-looking statements to reflect future events
or developments.
EBITDA, adjusted EBITDA, adjusted EBITDAR and free cash flow, as used in
this press release and in the accompanying tables, which are non-GAAP
financial measures, are each reconciled to their respective GAAP-recognized
financial measures in the accompanying tables. In addition, normalizing
adjustments
to adjusted EBITDAR and other financial measures, as discussed in this
press release and shown in the accompanying tables, are non-GAAP
adjustments, and are reconciled to GAAP financial measures in the
accompanying tables.
Contact:
Investor Inquiries
(505) 468-2341
Media Inquiries
(505) 468-4582
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Datum: 01.08.2011 - 15:15 Uhr
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