Sun Healthcare Group, Inc. (NASDAQ: SUNH) last week announced that its total net revenue for the quarter ended March 31, 2009, was $468.3 million, up 4.0 percent compared to $450.4 million for the comparable period one year ago. Net income for the quarter ended March 31, 2009, was $10.2 million, compared to net income of $8.6 million for the comparable 2008 period. Diluted earnings per share for the quarter ended March 31, 2009, was $0.23 compared to $0.19 for the comparable period one year ago.
The revenue gain of $16.4 million in the quarter was primarily attributable to:
- an $8.6 million increase in Medicare revenue due principally to Medicare part A rate growth and part B volume growth;
- a $4.4 million increase in managed care/commercial insurance revenue due to a higher customer base coupled with rate growth;
- a $2.4 million increase in Medicaid revenue resulting from a $3.7 million rate improvement partially offset by a $1.3 million impact from a decrease in customer base;
- a $3.0 million increase in hospice revenue due to both internal growth and a September 2008 hospice acquisition; and
- a $2.2 million decrease in private and other revenue due principally to a decline in customer base.
Commenting on the results, Richard K. Matros, Sun’s chairman and chief executive officer, stated, "We continue to achieve positive financial results in challenging economic times by generating four-percent top line growth and solid margin improvement in the quarter. Furthermore, eliminating $5.3 million of revenues resulting from the extra revenue day in 2008, which was a leap year, and the corresponding $1.2 million EBITDA contribution, so that the year-over-year comparison is for the same number of days, we had five percent revenue growth and our EBITDA margin grew 70 basis points. Our deleveraging efforts in the quarter were significant as we reduced our long-term debt by $19.6 million through principal payments. I am also pleased with our continued strong liquidity position which, at the end of the quarter, was $150 million, comprised of $100 million in cash coupled with our $50 million undrawn revolving credit facility."
For the full 8-K release, click here.