Sun Healthcare Group, Inc. (NASDAQ: SUNH) last week announced results for the fourth quarter and year ended Dec. 31, 2008 that showed that total net revenue for the quarter ended Dec. 31, 2008, was $467.0 million, up 5.5 percent compared to $442.5 million for 4th quarter 2007. The company’s net income for the fourth quarter was $82.4 million compared to a net income of $35.4 million in 2007. The company’s results included a $74.0 million tax benefit, which includes $70.5 million from the partial reversal of the valuation allowance on deferred tax assets plus $3.5 million of other non-recurring tax adjustments. The company’s operating results allowed the company to make a partial reversal of the valuation allowance on deferred tax assets due to history of profitability and the continuation of this profitability in the foreseeable future.
Commenting on the results, Richard K. Matros, Sun’s chairman and chief executive officer, stated, “We are very pleased to have produced solid results for both the quarter and the year, demonstrating in this economy that our sector is able to maintain stability and predictability. We ended our year on a strong note with $0.26 normalized EPS for the fourth quarter. The guidance we issued last month for 2009 reflects confidence in our ability to continue to move margins on a same store basis. Our first-quarter 2009 skilled mix trends are strong as we combat contraction in Medicaid rates. We will continue to focus in 2009 on margin improvement, company-wide process improvement initiatives, and activities that will result in deleveraging our balance sheet.”
Sun Healthcare Group, Inc., with executive offices in Irvine, California, owns SunBridge Healthcare Corporation and other affiliated companies that operate long-term and postacute care centers in many states. In addition, the Sun Healthcare Group family of companies provides therapy through SunDance Rehabilitation Corporation, hospice services through SolAmor Hospice and medical staffing through CareerStaff Unlimited, Inc.
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