Sun Healthcare Group, Inc. (NASDAQ GS: SUNH) last week announced results for the second quarter of 2009 that showed the company having growth in revenues but provided a cautious out look as the company remains focused on cost controls and lower occupancy rates. Total net revenue for the quarter ended June 30, 2009, was $468.9 million, up 4.0 percent compared to $450.9 million for the comparable period one year ago. On a normalized basis, income from continuing operations for the quarter ended June 30, 2009, was $13.4 million, compared to $11.0 million for the comparable 2008 period. Normalized diluted earnings per share from continuing operations for the quarter ended June 30, 2009, was $0.30 compared to $0.25 for the comparable period one year ago.
Richard K. Matros, Sun’s chairman and chief executive officer, stated, “Both occupancy and skilled mix days were soft for the quarter, with skilled mix days lower on a year-over-year basis for the first time. The company experienced a precipitous drop in those numbers early in April and took some time to recover. We are encouraged by the fact that June was higher than May, contrary to normal trends. Skilled mix as a percent of revenues did show growth for the quarter. Cost controls were excellent for the quarter, enabling the company to meet expectations, despite a $1.5 million increase in the provision for losses on accounts receivable, to reflect the slow down in payment on certain of our receivables.”
Matros further stated, “We continue to have success in our strategy to provide care to higher-acuity patients, both as a result of our Rehab Recovery Suites® (“RRS”) as well as execution in the portfolio generally. We currently have 51 centers with an RRS unit and we remain on target to have approximately 70 centers with an RRS unit by the end of 2009. As noted above, our case mix continued to show growth, pushing skilled mix revenues up for the quarter. I would also note that while we are taking care of these higher-acuity patients, our clinical outcomes, including those measured by external survey agencies, are the best the company has ever experienced.”
For the full 10-Q, click here.