Earnings Round-Up: Capital Senior Living, NHI, Kindred

Capital Senior Living Sees Sales Up 13%, More Private-Pay Opportunities

Capital Senior Living reported second quarter earnings this week with cash from facility operations up 15.1% to $9.5 million or $0.43 per share. Revenues rose during the same time period to $87.5 million, a 13% increase over the same period in 2012. 

“We are very pleased to report continued positive results for the second quarter as we recovered from the effects of the flu season in the first quarter,” said Lawrence Cohen, Capital Senior Living CEO.


The company said it is repositioning two CCRCs, which will further drive private-pay revenues. 

“After considering a number of alternatives, including a sale of these owned communities, we decided that a reconfiguration of the services we offer will enhance annual CFFO, improve our operating metrics and enable meaningful gains in shareholder value,” Cohen said. 

Capital Senior Living is additionally looking to its pipeline for growth, Cohen said, with due diligence under way for $65 million of additional senior living transactions. —EE


Sharp Reduction to Kindred NOI Offset by Home Health Earnings

Despite sharp declines in Kindred Healthcare’s net income in the second quarter ended June 30, 2013, the company’s home health and hospice division recorded

Home health and hospice revenues jumped 84% for Kindred Healthcare in the second quarter ended June 30, 2013 from last year, helping to offset the company’s overall revenue and operating income declines. 

Consolidated revenues decreased by 1% to $141 billion, in part due to federal sequestration cuts of 2% to Medicare reimbursement rates, which resulted in a $13 million reduction to revenue in the second quarter. Home health and hospice revenues, however, reached $53 million compared to $28.9 million in 2012’s second quarter. 

Income from continuing operations dropped by more than 60% to $6.2 million, or $0.12 per diluted share, in 2013’s second quarter. Net income dropped to $1.7 million from last year’s $15.5 million. 

Among Kindred’s business divisions, home health and hospice recorded the biggest jump in income from continuing operations, improving 42% to nearly $4 million compared to last year. Income from the rehabilitation division’s continuing operations rose about 7% to $42.1 million, while the nursing center division dropped slightly to $54 million and the hospital division increased minimally to $142.9 million. 

“Despite significant reimbursement pressures brought on by federal sequestration cuts of 2% beginning April 1, Kindred reported solid second quarter core results. This accomplishment reflects the commitment of our caregivers, and a relentless focus on cost management across the enterprise, all while maintaining our culture of quality service and patient satisfaction,” said Paul Diaz, CEO of Kindred, in a statement. 

The second quarter provided “tangible evidence” that Kindred’s asset repositioning strategy and capital redeployment activities are accelerating, he added.

“In addition to the Ventas nursing center disposition, we recently completed the sale of seven nursing centers for $47 million, and we have announced another transaction to sell non-strategic facilities that should provide net sales proceeds of approximately $180 million before the end of the year,” Diaz said. 

Looking forward, Kindred maintained its earnings guidance for 2013 and expects consolidated revenues to approximate $5.8 billion. Kindred expects to report income from continuing operations for 2013 between $60 million to $70 million. 

Operating cash flow guidance for 2013 was raised to a range between $235 million to $255 million, up from a prior range of $230 million to $250 million. Estimated routine cap-ex was lowered to a range of $112 million to $122 million, a decrease of $8 million. 

View Kindred’s second quarter 2013 earnings report. —AG

NHI Beats Earnings Estimates, Reports Expanded Credit Line

National Health Investors (NYSE: NHI) reported quarterly performance Tuesday, including normalized funds from operations up more than 14% during the quarter ended June 30 to $24.4 million or $0.87 per diluted share.

The company beat analysts’ estimates of $0.85 per diluted share during the quarter for its FFO performance.

Net income for the REIT was $20.1 million, up from $16.9 million in the second quarter of 2012 based on revenues of $28 million.

The company highlighted more than $220 million of new investments during the period, as well as the expansion of an unsecured credit facility of $370 million. —EE

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