Skilled Healthcare Group, Inc. (NYSE:SKH) announced its unaudited consolidated financial operating results for the three- and twelve-month periods ended December 31, 2008 with a net income of $10.3 million in the fourth quarter of 2008 and net income in 2008 of $37.2 million, or $1.01 per diluted share (full press release or 8-K). Revenues were up in the 4th quarter of 2008 to $166 million, an increase of 6.3% from the totals in the fourth quarter of 2007. Approximately $3.8 million, or 2.4 percentage points, of the increase in long-term care services revenues resulted from healthcare facilities acquired within the last year. The guidance for 2009 expects revenue between $792 and $802 million for the year and assumes the following for the business environment in 2009:
- Market basket increases for Medicare in the fourth quarter of 2009 consistent with prior years;
- Medicaid increases of approximately two percent for the 2009/2010 fiscal year;
- Development capital expenditures of approximately $30 million for new facilities and Express Recovery™ Units;
- Preservation capital expenditures of approximately $18 million or $1,700 per bed;
- Start-up losses of approximately $1.3 million on our newly completed developments;
- Current debt structure and existing interest rates in 2009;
- Cost control program to improve efficiencies; and
- Effective tax rate of 39.5%.
Boyd Hendrickson, Chairman and Chief Executive Officer commented, “Our fourth quarter and full year 2008 results are a testament to the strong underlying fundamentals of our company. We recognize that the macroeconomic environment has changed over the last year but our priorities remain steadfast. We take pride in the high quality of care we provide for our patients while driving long-term value for our shareholders with our high-acuity model. It is this dedicated focus that helped drive record earnings per share in 2008 and allowed us to reinvest into our business. During the year, we added 16 new Express Recovery Units™ and expanded nine additional units encompassing 585 dedicated beds. In addition, we acquired eight assisted living facilities and a skilled nursing facility in Kansas. Furthermore, we are very excited to announce that, in early 2009, we expect to complete our new state-of-the-art, 136-bed skilled nursing facility in downtown Dallas adjacent to Baylor Medical Center. We firmly believe that these reinvestments will continue to meet the needs of, and provide the highest quality of care for, the growing population of long-term care patients.”
