Skilled Healthcare Group Finishes Financial Restatement Related to Accounts Receivable Reserves

Skilled Healthcare Group, Inc. (NYSE: SKH) announced the completion of its special investigation relating to the understatements of its accounts receivable reserves in its financial statements for the periods January 1, 2006 through March 31, 2009. Skilled Healthcare has completed the restatement of its consolidated financial statements for the three years ended December 31, 2008 and each of the quarterly periods from January 1, 2007 through March 31, 2009 and today filed an amended Annual Report on Form 10-K/A for the year ended December 31, 2008 and an amended Quarterly Report on Form 10-Q/A for the quarter ended March 31, 2009 . As previously reported, the investigation was initiated and directed by the Audit Committee of the Company’s Board of Directors. The cumulative charges against after-tax earnings for all periods affected between January 1, 2006 and March 31, 2009 were $8.4 million in the aggregate.  After determining that the former employee had acted in a manner inconsistent with the Company’s accounting and disclosure policies and practices, management recommended to the Audit Committee that a restatement was required.The Company’s investigation showed that the former employee intentionally manipulated certain financial information in violation of Company policy and thereby causing the Company to understate its accounts receivable reserves. The investigation found no evidence that anyone else within the Company knew of, or participated in, the improper conduct.

“Over the last few weeks, we have worked vigorously to investigate the matter and submit amended SEC filings,” noted Boyd Hendrickson, Chairman and Chief Executive Officer, “In addition, we have taken remedial action and remain committed to maintaining a strong control environment, high ethical standards and confidence in our financial statements.”

For the revised SEC statements, click here.