Delaware | 001-14655 | 51-0265872 | ||
(State or other jurisdiction | (Commission File Number) | (I.R.S. Employer | ||
of incorporation) | Identification No.) |
7733 Forsyth Boulevard | ||
Suite 2300 | ||
St. Louis, Missouri | 63105 | |
(Address of principal executive | (Zip Code) | |
offices) |
The following exhibit is furnished pursuant to Item 2.02 and 9.01 hereof and should not be deemed to be filed under the Securities Exchange Act of 1934: | ||
99.1 | Press release dated April 28, 2011, announcing our first quarter 2011 revenues and results of operations. |
REHABCARE GROUP, INC. |
||||
By: | /s/ Jay W. Shreiner | |||
Jay W. Shreiner | ||||
Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | |
99.1
|
Press release dated April 28, 2011, announcing our first quarter 2011 revenues and results of operations. |
| Net earnings per diluted share from continuing operations increase 20.3% year over year to $0.71, including $4.8 million pretax, or $0.12 per diluted share after tax, of transaction related expenses in the 2011 first quarter | ||
| Hospital division improves EBITDA margin to 17.6% in the 2011 first quarter from 12.9% in the prior year quarter | ||
| Skilled Nursing Rehabilitation Services division reports operating earnings margin in line with expectations of 5.8%; increases unit count by a net 66 new units | ||
| Hospital Rehabilitation Services division delivers operating earnings margin of 18.7% | ||
| Cash flow from operations of $19.8 million in first quarter allows company to pay down debt by $18.3 million |
First | Fourth | First | ||||||||||
Quarter | Quarter | Quarter | ||||||||||
Amounts in millions, except per share data | 2011 | 2010 | 2010 | |||||||||
Consolidated Operating Revenues |
$ | 364.6 | $ | 339.3 | $ | 322.0 | ||||||
Consolidated Operating Earnings (a) |
37.8 | 36.1 | 31.6 | |||||||||
Consolidated Net Earnings from Continuing Operations |
19.5 | 18.6 | 14.3 | |||||||||
Gain from Discontinued Operations, Net of Tax (b) |
2.9 | 0.7 | 0.5 | |||||||||
Consolidated Net Earnings |
22.4 | 19.3 | 14.8 | |||||||||
Net (Earnings) Loss Attributable to Noncontrolling Interests |
(1.6 | ) | (2.2 | ) | 0.2 | |||||||
Net Earnings Attributable to RehabCare |
20.8 | 17.1 | 15.0 | |||||||||
Diluted Earnings per Share Attributable to RehabCare: |
||||||||||||
Earnings from Continuing Operations, Net of Tax |
0.71 | 0.66 | 0.59 | |||||||||
Net Earnings |
0.83 | 0.69 | 0.61 | |||||||||
Hospital Operating Revenues |
181.4 | 164.8 | 152.4 | |||||||||
Hospital EBITDA |
32.0 | 25.1 | 19.7 | |||||||||
Hospital Operating Earnings |
25.9 | 19.2 | 14.3 | |||||||||
SRS Operating Revenues |
136.9 | 128.1 | 126.4 | |||||||||
SRS EBITDA |
9.6 | 8.8 | 11.7 | |||||||||
SRS Operating Earnings |
8.0 | 7.4 | 10.3 | |||||||||
HRS Inpatient Operating Revenues |
33.1 | 33.7 | 31.1 | |||||||||
HRS Outpatient Operating Revenues |
13.3 | 12.7 | 12.1 | |||||||||
HRS Operating Revenues |
46.4 | 46.4 | 43.2 | |||||||||
HRS EBITDA |
9.2 | 10.2 | 7.5 | |||||||||
HRS Operating Earnings |
8.7 | 9.6 | 6.9 |
REHABCARE REPORTS FIRST QUARTER 2011 RESULTS | Page 2 |
(a) | The first quarter of 2011 includes certain transaction expenses related to the pending merger with Kindred Healthcare, Inc. of $4.8 million on a pretax basis, or $3.0 million after tax (see table on page 9). These costs have not been allocated to the Hospital, Skilled Nursing or Hospital Rehabilitation Services divisions. | |
(b) | The after-tax gain from discontinued operations of approximately $3.0 million in the first quarter of 2011 includes a $3.1 million after-tax gain on the sale of an inpatient rehabilitation facility (IRF) in Miami and a $0.1 million after-tax loss from the Miami IRFs discontinued operating activities. |
REHABCARE REPORTS FIRST QUARTER 2011 RESULTS | Page 3 |
REHABCARE REPORTS FIRST QUARTER 2011 RESULTS | Page 4 |
REHABCARE REPORTS FIRST QUARTER 2011 RESULTS | Page 5 |
Three Months Ended | ||||||||||||
Mar. 31, | Dec. 31, | Mar. 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Operating revenues |
$ | 364,599 | $ | 339,344 | $ | 321,954 | ||||||
Costs and expenses: |
||||||||||||
Operating |
284,980 | 267,836 | 256,636 | |||||||||
Selling, general and administrative |
33,603 | 27,397 | 26,535 | |||||||||
Depreciation and amortization |
8,223 | 7,998 | 7,218 | |||||||||
Total costs and expenses |
326,806 | 303,231 | 290,389 | |||||||||
Operating earnings |
37,793 | 36,113 | 31,565 | |||||||||
Interest income |
12 | 20 | 18 | |||||||||
Interest expense |
(7,468 | ) | (7,866 | ) | (8,500 | ) | ||||||
Other income (expense), net |
(14 | ) | 312 | 7 | ||||||||
Equity in net income of affiliates |
163 | 199 | 116 | |||||||||
Earnings from continuing operations
before income taxes |
30,486 | 28,778 | 23,206 | |||||||||
Income tax expense |
11,024 | 10,148 | 8,941 | |||||||||
Earnings from continuing operations |
19,462 | 18,630 | 14,265 | |||||||||
Gain from discontinued operations |
2,968 | 673 | 564 | |||||||||
Net earnings |
22,430 | 19,303 | 14,829 | |||||||||
Net (earnings) loss attributable to
noncontrolling interests |
(1,665 | ) | (2,250 | ) | 164 | |||||||
Net earnings attributable to RehabCare |
$ | 20,765 | $ | 17,053 | $ | 14,993 | ||||||
Amounts attributable to RehabCare: |
||||||||||||
Earnings from continuing operations |
$ | 17,797 | $ | 16,380 | $ | 14,429 | ||||||
Gain from discontinued operations |
2,968 | 673 | 564 | |||||||||
Net earnings |
$ | 20,765 | $ | 17,053 | $ | 14,993 | ||||||
Diluted EPS attributable to RehabCare: |
||||||||||||
Earnings from continuing operations |
$ | 0.71 | $ | 0.66 | $ | 0.59 | ||||||
Gain from discontinued operations |
0.12 | 0.03 | 0.02 | |||||||||
Net earnings |
$ | 0.83 | $ | 0.69 | $ | 0.61 | ||||||
Weighted average diluted shares |
25,025 | 24,770 | 24,655 |
REHABCARE REPORTS FIRST QUARTER 2011 RESULTS | Page 6 |
Unaudited | ||||||||
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Cash and cash equivalents |
$ | 33,622 | $ | 23,205 | ||||
Accounts receivable, net |
249,015 | 231,311 | ||||||
Deferred tax assets |
24,094 | 21,034 | ||||||
Other current assets |
11,221 | 14,559 | ||||||
Total current assets |
317,952 | 290,109 | ||||||
Property and equipment, net |
117,386 | 119,591 | ||||||
Goodwill |
567,863 | 559,866 | ||||||
Intangible assets |
129,576 | 127,227 | ||||||
Investment in unconsolidated affiliate |
4,924 | 4,913 | ||||||
Assets held for sale |
| 10,407 | ||||||
Other assets |
22,639 | 23,588 | ||||||
$ | 1,160,340 | $ | 1,135,701 | |||||
Liabilities & Equity |
||||||||
Current portion of long-term debt |
$ | 7,791 | $ | 9,116 | ||||
Payables & accruals |
169,292 | 163,380 | ||||||
Total current liabilities |
177,083 | 172,496 | ||||||
Long-term debt, less current portion |
365,138 | 381,772 | ||||||
Other non-current liabilities |
62,050 | 60,450 | ||||||
Stockholders equity |
534,942 | 500,098 | ||||||
Noncontrolling interests |
21,127 | 20,885 | ||||||
$ | 1,160,340 | $ | 1,135,701 | |||||
Year Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Net cash provided by operating activities |
$ | 19,843 | $ | 8,511 | ||||
Net cash used in investing activities |
(1,007 | ) | (5,151 | ) | ||||
Net cash provided by (used in) financing activities |
(8,419 | ) | (699 | ) | ||||
Net increase in cash and cash equivalents |
10,417 | 2,661 | ||||||
Cash and cash equivalents at beginning of period |
23,205 | 24,690 | ||||||
Cash and cash equivalents at end of period |
$ | 33,622 | $ | 27,351 | ||||
Supplemental information: |
||||||||
Additions to property and equipment |
$ | (3,140 | ) | $ | (5,241 | ) |
REHABCARE REPORTS FIRST QUARTER 2011 RESULTS | Page 7 |
First | Fourth | First | ||||||||||
Quarter | Quarter | Quarter | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Hospitals (a) |
||||||||||||
Operating revenues |
$ | 181,374 | $ | 164,778 | $ | 152,362 | ||||||
Operating expenses |
137,726 | 128,423 | 122,148 | |||||||||
Selling, general and administrative |
11,670 | 11,247 | 10,541 | |||||||||
Depreciation and amortization |
6,052 | 5,946 | 5,374 | |||||||||
Operating earnings |
$ | 25,926 | $ | 19,162 | $ | 14,299 | ||||||
Operating earnings margin |
14.3 | % | 11.6 | % | 9.4 | % | ||||||
EBITDA |
$ | 31,978 | $ | 25,108 | $ | 19,673 | ||||||
LTACHs |
||||||||||||
Number of hospitals end of period |
30 | 29 | 28 | |||||||||
Available licensed beds end of period |
1,696 | 1,605 | 1,593 | |||||||||
Admissions |
3,982 | 3,680 | 3,563 | |||||||||
Patient days |
105,023 | 96,834 | 90,455 | |||||||||
Average length of stay (Medicare days only) |
27 | 25 | 27 | |||||||||
Net inpatient revenue per patient day |
$ | 1,586 | $ | 1,545 | $ | 1,519 | ||||||
Occupancy rate |
69 | % | 66 | % | 63 | % | ||||||
Percent patient days Medicare |
75 | % | 74 | % | 73 | % | ||||||
IRFs (a) |
||||||||||||
Number of hospitals end of period |
5 | 5 | 5 | |||||||||
Available licensed beds end of period |
183 | 183 | 183 | |||||||||
Admissions |
885 | 921 | 903 | |||||||||
Discharges |
872 | 935 | 868 | |||||||||
Average length of stay (Medicare days only) |
12 | 12 | 13 | |||||||||
Net inpatient revenue per discharge |
$ | 15,112 | $ | 14,504 | $ | 15,022 | ||||||
Occupancy rate |
68 | % | 68 | % | 70 | % | ||||||
Percent patient days Medicare |
72 | % | 71 | % | 71 | % |
(a) | Amounts in all periods exclude West Gables Rehabilitation Hospital, which was sold effective January 1, 2011, and accounted for as a discontinued operation. |
REHABCARE REPORTS FIRST QUARTER 2011 RESULTS | Page 8 |
First | Fourth | First | ||||||||||
Quarter | Quarter | Quarter | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Skilled Nursing Rehabilitation Services |
||||||||||||
Operating revenues |
$ | 136,871 | $ | 128,132 | $ | 126,352 | ||||||
Operating expenses |
114,500 | 107,344 | 103,333 | |||||||||
Selling, general and administrative |
12,781 | 11,950 | 11,367 | |||||||||
Depreciation and amortization |
1,595 | 1,466 | 1,307 | |||||||||
Operating earnings |
$ | 7,995 | $ | 7,372 | $ | 10,345 | ||||||
Operating earnings margin |
5.8 | % | 5.8 | % | 8.2 | % | ||||||
EBITDA |
$ | 9,590 | $ | 8,838 | $ | 11,652 | ||||||
Average number of contract therapy locations |
1,158 | 1,146 | 1,131 | |||||||||
End of period number of contract therapy locations |
1,178 | 1,112 | 1,125 | |||||||||
Patient visits (in thousands) |
2,161 | 2,008 | 2,020 | |||||||||
Hospital Rehabilitation Services |
||||||||||||
Operating revenues |
||||||||||||
Inpatient Rehabilitation Facility (IRF) |
$ | 30,745 | $ | 31,469 | $ | 29,016 | ||||||
Subacute |
2,326 | 2,217 | 2,094 | |||||||||
Total Inpatient |
$ | 33,071 | $ | 33,686 | $ | 31,110 | ||||||
Outpatient |
13,283 | 12,748 | 12,130 | |||||||||
Total HRS |
$ | 46,354 | $ | 46,434 | $ | 43,240 | ||||||
Operating expenses |
32,754 | 32,069 | 31,155 | |||||||||
Selling, general and administrative |
4,365 | 4,200 | 4,627 | |||||||||
Depreciation and amortization |
576 | 586 | 537 | |||||||||
Operating earnings |
$ | 8,659 | $ | 9,579 | $ | 6,921 | ||||||
Operating earnings margin |
18.7 | % | 20.6 | % | 16.0 | % | ||||||
EBITDA |
$ | 9,235 | $ | 10,165 | $ | 7,458 | ||||||
Average number of programs |
||||||||||||
IRF |
104 | 106 | 104 | |||||||||
Subacute |
11 | 11 | 10 | |||||||||
Total Inpatient |
115 | 117 | 114 | |||||||||
Outpatient |
29 | 30 | 31 | |||||||||
Total HRS |
144 | 147 | 145 | |||||||||
End of period number of programs |
||||||||||||
IRF |
105 | 105 | 103 | |||||||||
Subacute |
12 | 11 | 10 | |||||||||
Total Inpatient |
117 | 116 | 113 | |||||||||
Outpatient |
29 | 30 | 31 | |||||||||
Total HRS |
146 | 146 | 144 | |||||||||
IRF discharges |
10,575 | 11,136 | 10,007 | |||||||||
Outpatient visits (in thousands) |
258 | 263 | 262 |
REHABCARE REPORTS FIRST QUARTER 2011 RESULTS | Page 9 |
First Quarter 2011 | ||||||||||||
Pre-Tax Impact | After-Tax Impact | Diluted EPS | ||||||||||
Transaction expenses (a) |
$ | 4,787 | $ | 2,956 | $ | 0.12 | ||||||
(a) | Charges for investment banking, legal and accounting services associated with the Kindred Healthcare transaction and related matters. |
First | Fourth | First | ||||||||||
Quarter | Quarter | Quarter | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Net earnings |
$ | 22,430 | $ | 19,303 | $ | 14,829 | ||||||
Income tax expense |
11,024 | 10,148 | 8,941 | |||||||||
Interest income |
(12 | ) | (20 | ) | (18 | ) | ||||||
Interest expense |
7,468 | 7,866 | 8,500 | |||||||||
Other (income) expense, net |
14 | (312 | ) | (7 | ) | |||||||
Equity in net income of affiliates |
(163 | ) | (199 | ) | (116 | ) | ||||||
Gain from discontinued operations |
(2,968 | ) | (673 | ) | (564 | ) | ||||||
Operating earnings (a) |
37,793 | 36,113 | 31,565 | |||||||||
Depreciation and amortization |
8,223 | 7,998 | 7,218 | |||||||||
Consolidated EBITDA (a) |
$ | 46,016 | $ | 44,111 | $ | 38,783 | ||||||
Hospital operating earnings (a) |
$ | 25,926 | $ | 19,162 | $ | 14,299 | ||||||
Hospital depreciation and amortization |
6,052 | 5,946 | 5,374 | |||||||||
Hospital EBITDA (a) |
$ | 31,978 | $ | 25,108 | $ | 19,673 | ||||||
SRS operating earnings (a) |
$ | 7,995 | $ | 7,372 | $ | 10,345 | ||||||
SRS depreciation and amortization |
1,595 | 1,466 | 1,307 | |||||||||
SRS EBITDA (a) |
$ | 9,590 | $ | 8,838 | $ | 11,652 | ||||||
HRS operating earnings (a) |
$ | 8,659 | $ | 9,579 | $ | 6,921 | ||||||
HRS depreciation and amortization |
576 | 586 | 537 | |||||||||
HRS EBITDA (a) |
$ | 9,235 | $ | 10,165 | $ | 7,458 | ||||||
(a) | Certain transaction expenses related to the pending merger with Kindred Healthcare of $4.8 million on a pretax basis in the first quarter of 2011 were not allocated to the Hospital, SRS or HRS divisions. |
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