Skilled Healthcare Group Reports Third Quarter EPS of $.25

Skilled Healthcare Group, Inc. SKH today announced its unaudited consolidated financial operating results for the three- and nine-month periods ended September 30, 2010.

Third Quarter 2010 Consolidated Results

• Consolidated revenue for the quarter ended September 30, 2010 was $209.2 million, an increase of 11.6 percent, compared to consolidated revenue of $187.5 million in the third quarter of 2009.  
  • Quality mix(1) in the third quarter of 2010 rose 120 basis points to 68.5 percent, compared to 67.3 percent in the prior year period.
• Adjusted EBITDA(2) was $30.6 million, or 14.6 percent of revenue, for the quarter ended September 30, 2010, an increase of 18.2 percent compared to $25.9 million, or 13.8 percent of revenue, in the same period a year ago.  Adjusted EBITDAR(3) was $35.4 million, or 16.9 percent of revenue, for the quarter ended September 30, 2010, up 16.4 percent compared to $30.4 million, or 16.2 percent of revenue, for the quarter ended September 30, 2009.  
• Adjusted net income(4), which excludes non-recurring charges, for the quarter ended September 30, 2010 totaled $9.4 million, up 4.3 percent compared to GAAP net income for the third quarter of 2009. These non-recurring charges are comprised of a $53.5 million charge related to the litigation costs announced during the quarter ended September 30, 2010. GAAP net losses in the third quarter of 2010 including the aforementioned non-recurring charges totaled $25.3 million.
• Diluted earnings per common share excluding the non-recurring charges as described above were $0.25 for the quarter ended September 30, 2010, consistent with diluted earnings per share for the same period in 2009. Including the aforementioned charges, diluted losses per share were $0.68 in the third quarter of 2010.