Skilled Healthcare Reports Strong Third Quarter Revenue

Skilled Healthcare Group (NYSE: SKH) announced financial and operating results for the third quarter 2010 that showed revenue for the quarter was $209.2 million, an increase of 11.6 percent, compared to revenue of $187.5 million in the third quarter of 2009. SKH’s results had an impact of the $53.5 million litigation charge incurred in the third quarter of 2010 that resulted in a net loss of $25.3 million for the quarter.  Skilled Healthcare Group is raising its 2010 full year guidance as it expects revenue to be between $805 million and $812 million.  Overall occupancy rates for its long-term care facilities was at 83.0 percent during the third quarter of 2010, compared to 83.2 percent in the prior year period.

"We are pleased with our third quarter results which were driven by strong revenue growth from our hospice and home health acquisition in May and from our long-term care business. Increased volumes and average per patient day rates drove long-term care revenue growth of nearly four percent as compared to the third quarter last year – a significant accomplishment given the challenging economic and reimbursement environments," stated Boyd Hendrickson, Chairman and Chief Executive Officer of Skilled Healthcare Group, Inc. "Additionally, our hospice and home health acquisition is meeting our expectations and was accretive to earnings in 2010.  Financially, the Company continues to generate higher cash flows from continuing operations as compared to a year ago. Among other things, our continued focus on collections has decreased our total company days sales outstanding by seven days over the last year leading to improved cash flows."

SKH Q3 2010 8-K