Sun Healthcare Group Reports Q3 Numbers, Awaits Separation

Sun Healthcare Group, Inc. (NASDAQ: SUNH) released its operating results for the third quarter ended Sept. 30, 2010 that showed an increase in revenues of 1.1% to $476 million versus Q3 2009.  SUNH reported that its consolidated EBITDAR was $60.6 million for the quarter and that on a normalized basis its diluted earnings per share from continuing operations would have been $0.23 based on shares outstanding prior to the issuance of 30.76 million shares in the Company’s August equity offering.  The results exclude the impact of $4.7 million for transaction costs associated with the separation transaction expected to occur in November from its real estate assets into Sabra Health Care REIT, Inc.

"Although our sector continues to experience a tough operating environment, I am pleased with our ability to turn in a solid quarter, with normalized adjusted EBITDAR comparable to that achieved in last year’s third quarter," said Richard K. Matros, Sun’s chairman and chief executive officer in a statement.  "With respect to the previously announced separation of our operating assets and real estate assets, we have completed debt financings for both the operating company and the real estate company and have received all necessary regulatory approvals. We look forward to our stockholders’ meeting on November 4 and to completing the separation transaction on November 15."

Q3 2010 SUNH Earnings Release