Sun Healthcare Group, Inc. Reports Higher Revenue Through Rate Growth For 2009 Results

Sun Healthcare Group, Inc. (NASDAQ: SUNH) announced its operating results for the fourth quarter and year ended December. 31, 2009 that showed 2009 fourth-quarter earnings and normalized EPS of $0.28 and 2009 Year-End Earnings and Normalized EPS of $1.10.  SUNH announced that consolidated revenues rose 1.6% to $474.1 million and an increased EBITA by 4.9 percent to $45.4 million.  The company reported a decrease in its occupancy rate from 88.9% for 2008 to 88.1% in 2009. 

"The story of the quarter is the story of the year. Successful execution of our high acuity strategy drove rate growth, resulting in revenue growth for both the quarter and the year of 1.6 percent and 3.2 percent, respectively, accompanied by strong expense controls, our infrastructure cost reductions, and a favorable labor market. This revenue growth somewhat mitigated the continued softness we have experienced in occupancy and payor mix. I would note that we have managed to achieve consecutive revenue growth in all four quarters of 2009. I have always said that I have great faith in our management team’s ability to execute, as illustrated by a 30 basis point expansion of normalized adjusted EBITDA for the quarter and a 50 basis-point expansion for the year. In an environment that has clearly tested us, our earnings growth of 7.7 percent for the quarter and 18.3 percent for the year was quite respectable. Our ability to convert our operating results into free cash flow continues to be a company strength. Our free cash flow for 2009 was a robust $54.6 million", said Richard K. Matros, Sun’s chairman and chief executive officer.


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