Skilled Healthcare Group, Inc. (NYSE: SKH) announced its 2010 financial results that showed revenues up in Q4 2010 to $220.7 million which is a 17% increase over same period in 2009. For the full year, SKH had For adjusted net income totaled $38.6 million, compared to the adjusted net income of $37.4 million for the same period a year ago. Revenue for the company’s Signature Hospice and Home Health Care was $18.7 million in the fourth quarter of 2010, compared to $3.4 million in the fourth quarter of 2009. The May 2010 acquisition of nine hospice and home care companies was primarily responsible for the year-over-year increase in revenue.
“We are very pleased with our fourth quarter and 2010 operating results which I believe reflect the outstanding effort by our clinical and support teams in managing through the extraordinary changes in the Medicare program during the period. I also continue to be impressed with the talent and passion of the individuals at our new hospice and home health agencies," noted Boyd Hendrickson, Chairman and Chief Executive Officer of Skilled Healthcare Group, Inc., "Consolidated revenue and adjusted earnings per share increased year-over-year in conjunction with the geographic expansion and revenue diversification from our hospice and home health care businesses, along with an increase in long-term care reimbursement rates."
Skilled Healthcare Group reiterated its earnings guidance for 2011 and expects full year consolidated revenue to be between $880 million and $900 million and net income per common share to be between $1.22 and $1.32.
"We benefitted from effective cash collection efforts in 2010. We were able to reduce our balance sheet leverage in the fourth quarter of 2010, compared to the third quarter of 2010. At year-end, our cash flow from operations was $88.8 million, excluding approximately $53.5 million in litigation settlement costs, as compared to cash flow from operations of $74.9 million in 2009. In addition, we continue to invest significantly in our facilities, 77 percent of which we own. In 2011, we look forward to opportunities to further deleverage our balance sheet and make strategic investments," continued Mr. Hendrickson.