Skilled Healthcare Group, Inc. (NYSE:SKH) announced higher revenues for its full year 2009 results and a net loss of $133.2 million on a non-cash goodwill impairment charge of $170.6 million that was recorded in the fourth quarter. SKH recorded the goodwill impairment charge at the long-term care reporting unit (for all the details on the goodwill impairment, see page 56-57 of SKH’s 10-Q). Prior to the goodwill impairment charge, adjusted net income(1) for the fourth quarter and full year of 2009 were $9.3 million and $37.4 million, respectively, or $0.25 per diluted share and $1.01 per diluted share, respectively. This compares to net income for the fourth quarter and full year of 2008 of $9.3 million and $34.1 million, respectively, or $0.25 per diluted share and $0.92 per diluted share, respectively. During the fourth quarter, was recorded. Including this charge, the net loss for the quarter ended December 31, 2009 was $161.3 million, or $4.37 per diluted share. For the full year ended December 31, 2009, the Company reported a , or $3.61 per diluted share.
Boyd Hendrickson, Chairman and Chief Executive Officer, commented on the long-term care services results stating, "2009 was one of the most challenging economic and operational environments I have encountered during my long tenure in long-term care. It was also a period of great uncertainty within the healthcare industry. In our long-term care services segment, we experienced pressure on our occupancy rates and skilled mix as we endured these challenging times. However, in the fourth quarter, we saw improved occupancy rates California, Kansas and Missouri on a sequential and year-over-year basis. In addition, January 2010 occupancy rates have improved to 83.4% and skilled mix has risen to 22.8%."
"It is important to understand that a write-down of goodwill is a non-cash charge to our consolidated statement of income which does not impact our cash flows," noted Boyd Hendrickson, Chairman and Chief Executive Officer. "Additionally, the goodwill impairment charge does not affect our operations."
For the full earnings release, visit their 8-K or the 10-Q.
