Delaware
|
1-12040
|
13-4230695
|
(State of Incorporation)
|
(Commission File Number)
|
(I.R.S. Employer
Identification No.)
|
18831 Von Karman, Suite 400
Irvine, CA
|
92612
|
(Address of principal executive offices)
|
(Zip Code)
|
99.1
|
Press Release dated November 1, 2011.
|
SUN HEALTHCARE GROUP, INC.
|
/s/ Jeffrey M. Kreger
|
Name: Jeffrey M. Kreger
|
Title: Senior Vice President and Corporate
Controller
|
·
|
consolidated revenues rose 2.6 percent to $485.9 million, compared to the same period in 2010, driven primarily by growth in rate and skilled mix in the inpatient services segment;
|
·
|
consolidated adjusted EBITDAR increased 5.6 percent to $63.8 million and adjusted EBITDAR margin grew 30 basis points to 13.1 percent, compared to normalized data for the same period in 2010;
|
·
|
diluted earnings per share from continuing operations was $0.32 on 26.2 million weighted-average diluted shares;
|
·
|
free cash flow was $3.7 million; and
|
·
|
the Company recorded a non-cash, pre-tax impairment charge of $317.1 million associated with the write-down of goodwill and other intangible assets as a result of the impact on the inpatient services business of the final Medicare reimbursement rates for fiscal year 2012 established by the Centers for Medicare and Medicaid Services (CMS), which became effective on Oct. 1, 2011 (the CMS final rule), and a $2.4 million expense related to restructuring initiatives. Both the impairment charge and the restructuring costs have been normalized out of reported results, and the results reported above do not reflect the impact of these charges.
|
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES
|
||||||||
KEY INCOME STATEMENT FIGURES
|
||||||||
CONSOLIDATED
|
||||||||
(in thousands, except per share data)
|
||||||||
For the
|
For the
|
|||||||
Three Months Ended
|
Three Months Ended
|
|||||||
September 30, 2011
|
September 30, 2010
|
|||||||
Revenue
|
$ | 485,850 | $ | 473,411 | ||||
Center rent expense
|
37,184 | 18,954 | ||||||
Depreciation and amortization
|
8,295 | 12,639 | ||||||
Interest expense, net
|
4,835 | 10,527 | ||||||
Pre-tax (loss) income
|
(306,797 | ) | 13,592 | |||||
Income tax expense
|
1,569 | 5,559 | ||||||
(Loss) income from continuing operations
|
(308,366 | ) | 8,033 | |||||
Loss from discontinued operations
|
(1,040 | ) | (477 | ) | ||||
Net (loss) income
|
$ | (309,406 | ) | $ | 7,556 | |||
Diluted earnings per share
|
$ | (11.81 | ) | $ | 0.37 | |||
Adjusted EBITDAR
|
$ | 63,843 | $ | 55,712 | ||||
Margin - Adjusted EBITDAR
|
13.1 | % | 11.8 | % | ||||
Adjusted EBITDAR normalized
|
$ | 63,843 | $ | 60,459 | ||||
Margin - Adjusted EBITDAR normalized
|
13.1 | % | 12.8 | % | ||||
Adjusted EBITDA
|
$ | 26,659 | $ | 36,758 | ||||
Margin - Adjusted EBITDA
|
5.5 | % | 7.8 | % | ||||
Adjusted EBITDA normalized
|
$ | 26,659 | $ | 41,505 | ||||
Margin - Adjusted EBITDA normalized
|
5.5 | % | 8.8 | % | ||||
Pre-tax income continuing operations - normalized
|
$ | 12,720 | $ | 18,339 | ||||
Income tax expense - normalized
|
$ | 4,317 | $ | 7,505 | ||||
Income from continuing operations - normalized
|
$ | 8,403 | $ | 10,834 | ||||
Diluted earnings per share from continuing operations - normalized
|
$ | 0.32 | $ | 0.53 | ||||
Net income - normalized
|
$ | 7,363 | $ | 10,357 | ||||
Diluted earnings per share - normalized
|
$ | 0.28 | $ | 0.50 | ||||
See definitions of Adjusted EBITDA and Adjusted EBITDAR in the table "Reconciliation of Net Income to
Adjusted EBITDA and Adjusted EBITDAR."
|
||||||||
See normalizing adjustments in the table "Normalizing Adjustments - Quarter Comparison."
|
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES
|
||||||||
KEY INCOME STATEMENT FIGURES
|
||||||||
CONSOLIDATED
|
||||||||
(in thousands, except per share data)
|
||||||||
For the
|
For the
|
|||||||
Nine Months Ended
|
Nine Months Ended
|
|||||||
September 30, 2011
|
September 30, 2010
|
|||||||
Revenue
|
$ | 1,457,421 | $ | 1,415,734 | ||||
Center rent expense
|
111,110 | 56,306 | ||||||
Depreciation and amortization
|
23,636 | 37,449 | ||||||
Interest expense, net
|
14,689 | 34,105 | ||||||
Pre-tax (loss) income
|
(274,911 | ) | 49,451 | |||||
Income tax expense
|
14,642 | 19,990 | ||||||
(Loss) income from continuing operations
|
(289,553 | ) | 29,461 | |||||
Loss from discontinued operations
|
(1,794 | ) | (1,734 | ) | ||||
Net (loss) income
|
$ | (291,347 | ) | $ | 27,727 | |||
Diluted earnings per share
|
$ | (11.19 | ) | $ | 1.59 | |||
Adjusted EBITDAR
|
$ | 195,152 | $ | 177,311 | ||||
Margin - Adjusted EBITDAR
|
13.4 | % | 12.5 | % | ||||
Adjusted EBITDAR normalized
|
$ | 195,152 | $ | 184,306 | ||||
Margin - Adjusted EBITDAR normalized
|
13.4 | % | 13.0 | % | ||||
Adjusted EBITDA
|
$ | 84,042 | $ | 121,005 | ||||
Margin - Adjusted EBITDA
|
5.8 | % | 8.5 | % | ||||
Adjusted EBITDA normalized
|
$ | 84,042 | $ | 128,000 | ||||
Margin - Adjusted EBITDA normalized
|
5.8 | % | 9.0 | % | ||||
Pre-tax income continuing operations - normalized
|
$ | 44,606 | $ | 56,446 | ||||
Income tax expense - normalized
|
$ | 17,390 | $ | 22,858 | ||||
Income from continuing operations - normalized
|
$ | 27,216 | $ | 33,588 | ||||
Diluted earnings per share from continuing operations - normalized
|
$ | 1.05 | $ | 1.92 | ||||
Net income - normalized
|
$ | 25,422 | $ | 31,854 | ||||
Diluted earnings per share - normalized
|
$ | 0.98 | $ | 1.82 | ||||
See definitions of Adjusted EBITDA and Adjusted EBITDAR in the table "Reconciliation of Net Income to
Adjusted EBITDA and Adjusted EBITDAR."
|
||||||||
See normalizing adjustments in the table "Normalizing Adjustments - Quarter Comparison."
|
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
(in thousands, except per share data)
|
||||||||
September 30, 2011
|
December 31, 2010
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 91,179 | $ | 81,163 | ||||
Restricted cash
|
16,382 | 15,329 | ||||||
Accounts receivable, net
|
213,858 | 218,040 | ||||||
Prepaid expenses and other assets
|
26,380 | 16,859 | ||||||
Deferred tax assets
|
71,996 | 69,800 | ||||||
Total current assets
|
419,795 | 401,191 | ||||||
Property and equipment, net
|
145,611 | 139,860 | ||||||
Intangible assets, net
|
35,317 | 41,967 | ||||||
Goodwill
|
35,679 | 348,047 | ||||||
Restricted cash, non-current
|
352 | 350 | ||||||
Deferred tax assets
|
115,243 | 126,540 | ||||||
Other assets
|
45,606 | 23,803 | ||||||
|
||||||||
Total assets
|
$ | 797,603 | $ | 1,081,758 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 49,659 | $ | 49,993 | ||||
Accrued compensation and benefits
|
49,328 | 61,518 | ||||||
Accrued self-insurance obligations, current portion
|
62,038 | 52,093 | ||||||
Other accrued liabilities
|
56,457 | 53,945 | ||||||
Current portion of long-term debt and capital lease obligations
|
11,033 | 11,050 | ||||||
Total current liabilities
|
228,515 | 228,599 | ||||||
Accrued self-insurance obligations, net of current portion
|
153,471 | 133,405 | ||||||
Long-term debt and capital lease obligations, net of current portion
|
131,548 | 144,930 | ||||||
Unfavorable lease obligations, net
|
7,771 | 9,815 | ||||||
Other long-term liabilities
|
52,394 | 52,566 | ||||||
Total liabilities
|
573,699 | 569,315 | ||||||
Stockholders' equity:
|
||||||||
Preferred stock of $.01 par value, authorized 3,333 shares,
zero shares were issued and outstanding as of September 30, 2011
and December 31, 2010
|
- | - | ||||||
Common stock of $.01 par value, authorized 41,667 shares,
25,146 and 24,974 shares issued and outstanding as of
September 30, 2011 and December 31, 2010, respectively
|
251 | 250 | ||||||
Additional paid-in capital
|
724,814 | 720,854 | ||||||
Accumulated deficit
|
(500,008 | ) | (208,661 | ) | ||||
Accumulated other comprehensive loss, net
|
(1,153 | ) | - | |||||
223,904 | 512,443 | |||||||
Total liabilities and stockholders' equity
|
$ | 797,603 | $ | 1,081,758 |
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED INCOME STATEMENTS
|
||||||||
(in thousands, except per share data)
|
||||||||
For the
|
For the
|
|||||||
Three Months Ended
|
Three Months Ended
|
|||||||
September 30, 2011
|
September 30, 2010
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Total net revenues
|
$ | 485,850 | $ | 473,411 | ||||
Costs and expenses:
|
||||||||
Operating salaries and benefits
|
273,223 | 268,501 | ||||||
Self-insurance for workers' compensation and
general and professional liability insurance
|
15,250 | 14,531 | ||||||
Operating administrative costs
|
13,157 | 13,343 | ||||||
Other operating costs
|
100,636 | 97,333 | ||||||
Center rent expense
|
37,184 | 18,954 | ||||||
General and administrative expenses
|
14,825 | 14,146 | ||||||
Depreciation and amortization
|
8,295 | 12,639 | ||||||
Provision for losses on accounts receivable
|
4,916 | 5,098 | ||||||
Interest, net of interest income of $103 and $59, respectively
|
4,835 | 10,527 | ||||||
Transaction costs
|
- | 4,747 | ||||||
Loss on sale of assets, net
|
809 | - | ||||||
Restructuring costs
|
2,426 | - | ||||||
Loss on asset impairment
|
317,091 | - | ||||||
Total costs and expenses
|
792,647 | 459,819 | ||||||
(Loss) income before income taxes and discontinued operations
|
(306,797 | ) | 13,592 | |||||
Income tax expense
|
1,569 | 5,559 | ||||||
(Loss) income from continuing operations
|
(308,366 | ) | 8,033 | |||||
Discontinued operations:
|
||||||||
Loss from discontinued operations, net of related taxes
|
(359 | ) | (477 | ) | ||||
Loss on disposal of discontinued operations, net of related taxes
|
(681 | ) | - | |||||
Loss from discontinued operations, net
|
(1,040 | ) | (477 | ) | ||||
Net (loss) income
|
$ | (309,406 | ) | $ | 7,556 | |||
Basic income per common and common equivalent share:
|
||||||||
(Loss) income from continuing operations
|
$ | (11.77 | ) | $ | 0.39 | |||
Loss from discontinued operations, net
|
(0.04 | ) | (0.02 | ) | ||||
Net (loss) income
|
$ | (11.81 | ) | $ | 0.37 | |||
Diluted income per common and common equivalent share:
|
||||||||
(Loss) income from continuing operations
|
$ | (11.77 | ) | $ | 0.39 | |||
Loss from discontinued operations, net
|
(0.04 | ) | (0.02 | ) | ||||
Net (loss) income
|
$ | (11.81 | ) | $ | 0.37 | |||
Weighted average number of common and
common equivalent shares outstanding:
|
||||||||
Basic
|
26,203 | 20,529 | ||||||
Diluted
|
26,203 | 20,550 | ||||||
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED INCOME STATEMENTS
|
||||||||
(in thousands, except per share data)
|
||||||||
For the
|
For the
|
|||||||
Nine Months Ended
|
Nine Months Ended
|
|||||||
September 30, 2011
|
September 30, 2010
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Total net revenues
|
$ | 1,457,421 | $ | 1,415,734 | ||||
Costs and expenses:
|
||||||||
Operating salaries and benefits
|
818,248 | 799,603 | ||||||
Self-insurance for workers' compensation and
general and professional liability insurance
|
45,779 | 43,433 | ||||||
Operating administrative costs
|
39,913 | 38,932 | ||||||
Other operating costs
|
298,213 | 289,079 | ||||||
Center rent expense
|
111,110 | 56,306 | ||||||
General and administrative expenses
|
45,156 | 44,570 | ||||||
Depreciation and amortization
|
23,636 | 37,449 | ||||||
Provision for losses on accounts receivable
|
14,960 | 15,811 | ||||||
Interest, net of interest income of $244 and $222, respectively
|
14,689 | 34,105 | ||||||
Transaction costs
|
- | 6,995 | ||||||
Loss on sale of assets, net
|
809 | - | ||||||
Restructuring costs
|
2,728 | - | ||||||
Loss on asset impairment
|
317,091 | - | ||||||
Total costs and expenses
|
1,732,332 | 1,366,283 | ||||||
(Loss) income before income taxes and discontinued operations
|
(274,911 | ) | 49,451 | |||||
Income tax expense
|
14,642 | 19,990 | ||||||
(Loss) income from continuing operations
|
(289,553 | ) | 29,461 | |||||
Discontinued operations:
|
||||||||
Loss from discontinued operations, net of related taxes
|
(1,113 | ) | (1,734 | ) | ||||
Loss on disposal of discontinued operations, net of related taxes
|
(681 | ) | - | |||||
Loss from discontinued operations, net
|
(1,794 | ) | (1,734 | ) | ||||
Net (loss) income
|
$ | (291,347 | ) | $ | 27,727 | |||
Basic income per common and common equivalent share:
|
||||||||
(Loss) income from continuing operations
|
$ | (11.12 | ) | $ | 1.69 | |||
Loss from discontinued operations, net
|
(0.07 | ) | (0.10 | ) | ||||
Net (loss) income
|
$ | (11.19 | ) | $ | 1.59 | |||
Diluted income per common and common equivalent share:
|
||||||||
(Loss) income from continuing operations
|
$ | (11.12 | ) | $ | 1.68 | |||
Loss from discontinued operations, net
|
(0.07 | ) | (0.09 | ) | ||||
Net (Loss) income
|
$ | (11.19 | ) | $ | 1.59 | |||
Weighted average number of common and
common equivalent shares outstanding:
|
||||||||
Basic
|
26,038 | 17,418 | ||||||
Diluted
|
26,038 | 17,485 | ||||||
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(in thousands)
|
||||||||
For the
|
For the
|
|||||||
Three Months Ended
|
Three Months Ended
|
|||||||
September 30, 2011
|
September 30, 2010
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Cash flows from operating activities:
|
||||||||
Net (loss) income
|
$ | (309,406 | ) | $ | 7,556 | |||
Adjustments to reconcile net income to net cash provided by
|
||||||||
operating activities, including discontinued operations:
|
||||||||
Depreciation and amortization
|
8,335 | 12,736 | ||||||
Amortization of favorable and unfavorable lease intangibles
|
(492 | ) | (504 | ) | ||||
Provision for losses on accounts receivable
|
4,975 | 5,289 | ||||||
Loss on sale of assets, including discontinued operations, net
|
1,925 | - | ||||||
Loss on asset impairment
|
317,091 | - | ||||||
Stock-based compensation expense
|
2,359 | 1,661 | ||||||
Deferred taxes
|
(105 | ) | 3,286 | |||||
Changes in operating assets and liabilities, net of acquisitions:
|
||||||||
Accounts receivable
|
23 | (1,307 | ) | |||||
Restricted cash
|
52 | 2,769 | ||||||
Prepaid expenses and other assets
|
(1,600 | ) | 5,399 | |||||
Accounts payable
|
1,595 | (4,909 | ) | |||||
Accrued compensation and benefits
|
(11,717 | ) | (2,117 | ) | ||||
Accrued self-insurance obligations
|
3,618 | 199 | ||||||
Income taxes payable
|
- | 1,267 | ||||||
Other accrued liabilities
|
2,104 | 4,429 | ||||||
Other long-term liabilities
|
(880 | ) | (676 | ) | ||||
Net cash provided by operating activities
|
17,877 | 35,078 | ||||||
Cash flows from investing activities:
|
||||||||
Capital expenditures
|
(14,190 | ) | (13,774 | ) | ||||
Proceeds from sale of assets
|
1,809 | - | ||||||
Net cash used for investing activities
|
(12,381 | ) | (13,774 | ) | ||||
Cash flows from financing activities:
|
||||||||
Borrowings of long-term debt
|
- | 20,500 | ||||||
Principal repayments of long-term debt and capital lease obligations
|
(2,806 | ) | (234,116 | ) | ||||
Proceeds from issuance of common stock
|
- | 226,001 | ||||||
Deferred financing costs
|
- | (2,312 | ) | |||||
Net cash used for financing activities
|
(2,806 | ) | 10,073 | |||||
Net increase in cash and cash equivalents
|
2,690 | 31,377 | ||||||
Cash and cash equivalents at beginning of period
|
88,489 | 106,973 | ||||||
Cash and cash equivalents at end of period
|
$ | 91,179 | $ | 138,350 | ||||
Reconciliation of net cash provided by operating activities to free cash flow:
|
||||||||
Net cash provided by operating activities
|
$ | 17,877 | $ | 35,078 | ||||
Capital expenditures
|
(14,190 | ) | (13,774 | ) | ||||
Free cash flow
|
$ | 3,687 | $ | 21,304 | ||||
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(in thousands)
|
||||||||
For the
|
For the
|
|||||||
Nine Months Ended
|
Nine Months Ended
|
|||||||
September 30, 2011
|
September 30, 2010
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Cash flows from operating activities:
|
||||||||
Net (loss) income
|
$ | (291,347 | ) | $ | 27,727 | |||
Adjustments to reconcile net income to net cash provided by
|
||||||||
operating activities, including discontinued operations:
|
||||||||
Loss on extinguishment of debt
|
||||||||
Depreciation and amortization
|
23,879 | 37,744 | ||||||
Amortization of favorable and unfavorable lease intangibles
|
(1,466 | ) | (1,452 | ) | ||||
Provision for losses on accounts receivable
|
15,479 | 16,428 | ||||||
Loss on sale of assets, including discontinued operations, net
|
1,925 | - | ||||||
Loss on asset impairment
|
317,091 | - | ||||||
Stock-based compensation expense
|
5,160 | 4,748 | ||||||
Deferred taxes
|
9,871 | 14,976 | ||||||
Changes in operating assets and liabilities, net of acquisitions:
|
||||||||
Accounts receivable
|
(12,555 | ) | (12,500 | ) | ||||
Restricted cash
|
(1,876 | ) | 5,040 | |||||
Prepaid expenses and other assets
|
(1,410 | ) | 8,012 | |||||
Accounts payable
|
(1,906 | ) | (3,628 | ) | ||||
Accrued compensation and benefits
|
(12,298 | ) | 1,945 | |||||
Accrued self-insurance obligations
|
(294 | ) | 5,041 | |||||
Income taxes payable
|
- | 1,605 | ||||||
Other accrued liabilities
|
1,158 | 4,442 | ||||||
Other long-term liabilities
|
(2,098 | ) | (5,775 | ) | ||||
Net cash provided by operating activities
|
49,313 | 104,353 | ||||||
Cash flows from investing activities:
|
||||||||
Capital expenditures
|
(32,346 | ) | (41,488 | ) | ||||
Proceeds from sale of assets
|
1,809 | - | ||||||
Acquisitions, net of cash acquired
|
(356 | ) | - | |||||
Net cash used for investing activities
|
(30,893 | ) | (41,488 | ) | ||||
Cash flows from financing activities:
|
||||||||
Borrowings of long-term debt
|
- | 20,500 | ||||||
Principal repayments of long-term debt and capital lease obligations
|
(8,404 | ) | (271,093 | ) | ||||
Payment to non-controlling interest
|
- | (2,025 | ) | |||||
Distribution to non-controlling interest
|
- | (69 | ) | |||||
Proceeds from issuance of common stock
|
- | 226,001 | ||||||
Deferred financing costs
|
- | (2,312 | ) | |||||
Net cash used for financing activities
|
(8,404 | ) | (28,998 | ) | ||||
Net increase in cash and cash equivalents
|
10,016 | 33,867 | ||||||
Cash and cash equivalents at beginning of period
|
81,163 | 104,483 | ||||||
Cash and cash equivalents at end of period
|
$ | 91,179 | $ | 138,350 | ||||
Reconciliation of net cash provided by operating activities to free cash flow:
|
||||||||
Net cash provided by operating activities
|
$ | 49,313 | $ | 104,353 | ||||
Capital expenditures
|
(32,346 | ) | (41,488 | ) | ||||
Free cash flow
|
$ | 16,967 | $ | 62,865 | ||||
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES
|
||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA and ADJUSTED EBITDAR
|
||||||||
(in thousands)
|
||||||||
For the
|
For the
|
|||||||
Three Months Ended
|
Three Months Ended
|
|||||||
September 30, 2011
|
September 30, 2010
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Total net revenues
|
$ | 485,850 | $ | 473,411 | ||||
Net (loss) income
|
$ | (309,406 | ) | $ | 7,556 | |||
(Loss) income from continuing operations
|
(308,366 | ) | 8,033 | |||||
Income tax expense
|
1,569 | 5,559 | ||||||
Interest, net
|
4,835 | 10,527 | ||||||
Depreciation and amortization
|
8,295 | 12,639 | ||||||
EBITDA
|
$ | (293,667 | ) | $ | 36,758 | |||
Loss on sale of assets, net
|
809 | - | ||||||
Restructuring costs
|
2,426 | - | ||||||
Loss on asset impairment
|
317,091 | - | ||||||
Adjusted EBITDA
|
$ | 26,659 | $ | 36,758 | ||||
Center rent expense
|
37,184 | 18,954 | ||||||
Adjusted EBITDAR
|
$ | 63,843 | $ | 55,712 |
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES
|
||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA and ADJUSTED EBITDAR
|
||||||||
(in thousands)
|
||||||||
For the
|
For the
|
|||||||
Nine Months Ended
|
Nine Months Ended
|
|||||||
September 30, 2011
|
September 30, 2010
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Total net revenues
|
$ | 1,457,421 | $ | 1,415,734 | ||||
Net (loss) income
|
$ | (291,347 | ) | $ | 27,727 | |||
(Loss) income from continuing operations
|
(289,553 | ) | 29,461 | |||||
Income tax expense
|
14,642 | 19,990 | ||||||
Interest, net
|
14,689 | 34,105 | ||||||
Depreciation and amortization
|
23,636 | 37,449 | ||||||
EBITDA
|
$ | (236,586 | ) | $ | 121,005 | |||
Loss on sale of assets, net
|
809 | - | ||||||
Restructuring costs
|
2,728 | - | ||||||
Loss on asset impairment
|
317,091 | - | ||||||
Adjusted EBITDA
|
$ | 84,042 | $ | 121,005 | ||||
Center rent expense
|
111,110 | 56,306 | ||||||
Adjusted EBITDAR
|
$ | 195,152 | $ | 177,311 | ||||
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA and ADJUSTED EBITDAR
|
||||||||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
For the Three Months Ended September 30, 2011
|
||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||
Inpatient
Services |
Rehabilitation
Therapy Services |
Medical
Staffing Services |
Other &
Corp Seg |
Elimination of Affiliated Revenue |
Consolidated
|
|||||||||||||||||||
Nonaffiliated revenue
|
$ | 435,271 | $ | 29,568 | $ | 20,996 | $ | 15 | $ | - | $ | 485,850 | ||||||||||||
Affiliated revenue
|
- | 32,791 | 757 | - | (33,548 | ) | - | |||||||||||||||||
Total revenue
|
$ | 435,271 | $ | 62,359 | $ | 21,753 | $ | 15 | $ | (33,548 | ) | $ | 485,850 | |||||||||||
Income (loss) from continuing operations
|
$ | (287,174 | ) | $ | 2,296 | $ | 1,221 | $ | (24,709 | ) | $ | - | $ | (308,366 | ) | |||||||||
Income tax expense
|
- | - | - | 1,569 | - | 1,569 | ||||||||||||||||||
Interest, net
|
(32 | ) | - | - | 4,867 | - | 4,835 | |||||||||||||||||
Depreciation and amortization
|
6,902 | 236 | 187 | 970 | - | 8,295 | ||||||||||||||||||
EBITDA
|
$ | (280,304 | ) | $ | 2,532 | $ | 1,408 | $ | (17,303 | ) | $ | - | $ | (293,667 | ) | |||||||||
Loss on sale of assets, net
|
809 | - | - | - | - | 809 | ||||||||||||||||||
Restructuring costs
|
- | - | - | 2,426 | - | 2,426 | ||||||||||||||||||
Loss on asset impairment
|
317,091 | - | - | - | - | 317,091 | ||||||||||||||||||
Adjusted EBITDA
|
$ | 37,596 | $ | 2,532 | $ | 1,408 | $ | (14,877 | ) | $ | - | $ | 26,659 | |||||||||||
Center rent expense
|
36,874 | 140 | 170 | - | - | 37,184 | ||||||||||||||||||
Adjusted EBITDAR
|
$ | 74,470 | $ | 2,672 | $ | 1,578 | $ | (14,877 | ) | $ | - | $ | 63,843 | |||||||||||
Normalized Adjusted EBITDA
|
$ | 37,596 | $ | 2,532 | $ | 1,408 | $ | (14,877 | ) | $ | - | $ | 26,659 | |||||||||||
Normalized Adjusted EBITDAR
|
$ | 74,470 | $ | 2,672 | $ | 1,578 | $ | (14,877 | ) | $ | - | $ | 63,843 | |||||||||||
Adjusted EBITDA margin
|
8.6 | % | 4.1 | % | 6.5 | % | 5.5 | % | ||||||||||||||||
Adjusted EBITDAR margin
|
17.1 | % | 4.3 | % | 7.3 | % | 13.1 | % | ||||||||||||||||
Normalized Adjusted EBITDA margin
|
8.6 | % | 4.1 | % | 6.5 | % | 5.5 | % | ||||||||||||||||
Normalized Adjusted EBITDAR margin
|
17.1 | % | 4.3 | % | 7.3 | % | 13.1 | % | ||||||||||||||||
See definitions of EBITDA, Adjusted EBITDA and Adjusted EBITDAR in the table "Reconciliation of Net Income to
|
||||||||||||||||||||||||
Adjusted EBITDA and Adjusted EBITDAR."
|
||||||||||||||||||||||||
See normalizing adjustments in the table "Normalizing Adjustments - Quarter Comparison."
|
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA and ADJUSTED EBITDAR
|
||||||||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
For the Nine Months Ended September 30, 2011
|
||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||
Inpatient
Services |
Rehabilitation
Therapy Services |
Medical
Staffing Services |
Other &
Corp Seg |
Elimination of Affiliated Revenue |
Consolidated
|
|||||||||||||||||||
Nonaffiliated revenue
|
$ | 1,302,431 | $ | 89,645 | $ | 65,309 | $ | 36 | $ | - | $ | 1,457,421 | ||||||||||||
Affiliated revenue
|
- | 98,710 | 2,079 | - | (100,789 | ) | - | |||||||||||||||||
Total revenue
|
$ | 1,302,431 | $ | 188,355 | $ | 67,388 | $ | 36 | $ | (100,789 | ) | $ | 1,457,421 | |||||||||||
Income (loss) from continuing operations
|
$ | (222,322 | ) | $ | 8,495 | $ | 4,082 | $ | (79,808 | ) | $ | - | $ | (289,553 | ) | |||||||||
Income tax expense
|
- | - | - | 14,642 | - | 14,642 | ||||||||||||||||||
Interest, net
|
(68 | ) | - | 1 | 14,756 | - | 14,689 | |||||||||||||||||
Depreciation and amortization
|
19,726 | 689 | 561 | 2,660 | - | 23,636 | ||||||||||||||||||
EBITDA
|
$ | (202,664 | ) | $ | 9,184 | $ | 4,644 | $ | (47,750 | ) | $ | - | $ | (236,586 | ) | |||||||||
Loss on sale of assets, net
|
809 | - | - | - | - | 809 | ||||||||||||||||||
Restructuring costs
|
302 | - | - | 2,426 | - | 2,728 | ||||||||||||||||||
Loss on asset impairment
|
317,091 | - | - | - | - | 317,091 | ||||||||||||||||||
Adjusted EBITDA
|
$ | 115,538 | $ | 9,184 | $ | 4,644 | $ | (45,324 | ) | $ | - | $ | 84,042 | |||||||||||
Center rent expense
|
110,203 | 394 | 513 | - | - | 111,110 | ||||||||||||||||||
Adjusted EBITDAR
|
$ | 225,741 | $ | 9,578 | $ | 5,157 | $ | (45,324 | ) | $ | - | $ | 195,152 | |||||||||||
Normalized Adjusted EBITDA
|
$ | 115,538 | $ | 9,184 | $ | 4,644 | $ | (45,324 | ) | $ | - | $ | 84,042 | |||||||||||
Normalized Adjusted EBITDAR
|
$ | 225,741 | $ | 9,578 | $ | 5,157 | $ | (45,324 | ) | $ | - | $ | 195,152 | |||||||||||
Adjusted EBITDA margin
|
8.9 | % | 4.9 | % | 6.9 | % | 5.8 | % | ||||||||||||||||
Adjusted EBITDAR margin
|
17.3 | % | 5.1 | % | 7.7 | % | 13.4 | % | ||||||||||||||||
Normalized Adjusted EBITDA margin
|
8.9 | % | 4.9 | % | 6.9 | % | 5.8 | % | ||||||||||||||||
Normalized Adjusted EBITDAR margin
|
17.3 | % | 5.1 | % | 7.7 | % | 13.4 | % | ||||||||||||||||
See definitions of EBITDA, Adjusted EBITDA and Adjusted EBITDAR in the table "Reconciliation of Net Income to
|
||||||||||||||||||||||||
Adjusted EBITDA and Adjusted EBITDAR."
|
||||||||||||||||||||||||
See normalizing adjustments in the table "Normalizing Adjustments - Year to Date Comparison."
|
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA and ADJUSTED EBITDAR
|
||||||||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
For the Three Months Ended September 30, 2010
|
||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||
Inpatient
Services |
Rehabilitation
Therapy Services |
Medical
Staffing Services |
Other &
Corp Seg |
Elimination of Affiliated Revenue |
Consolidated
|
|||||||||||||||||||
Nonaffiliated revenue
|
$ | 421,573 | $ | 30,343 | $ | 21,481 | $ | 14 | $ | - | $ | 473,411 | ||||||||||||
Affiliated revenue
|
- | 21,397 | 724 | - | (22,121 | ) | - | |||||||||||||||||
Total revenue
|
$ | 421,573 | $ | 51,740 | $ | 22,205 | $ | 14 | $ | (22,121 | ) | $ | 473,411 | |||||||||||
Income (loss) from continuing operations
|
$ | 36,168 | $ | 3,961 | $ | 1,195 | $ | (33,291 | ) | $ | - | $ | 8,033 | |||||||||||
Income tax expense
|
- | - | - | 5,559 | - | 5,559 | ||||||||||||||||||
Interest, net
|
2,483 | - | - | 8,044 | - | 10,527 | ||||||||||||||||||
Depreciation and amortization
|
11,536 | 173 | 181 | 749 | - | 12,639 | ||||||||||||||||||
EBITDA
|
$ | 50,187 | $ | 4,134 | $ | 1,376 | $ | (18,939 | ) | $ | - | $ | 36,758 | |||||||||||
Restructuring costs
|
- | - | - | - | - | - | ||||||||||||||||||
Adjusted EBITDA
|
$ | 50,187 | $ | 4,134 | $ | 1,376 | $ | (18,939 | ) | $ | - | $ | 36,758 | |||||||||||
Center rent expense
|
18,629 | 123 | 202 | - | - | 18,954 | ||||||||||||||||||
Adjusted EBITDAR
|
$ | 68,816 | $ | 4,257 | $ | 1,578 | $ | (18,939 | ) | $ | - | $ | 55,712 | |||||||||||
Normalized Adjusted EBITDA
|
$ | 50,187 | $ | 4,134 | $ | 1,376 | $ | (14,192 | ) | $ | - | $ | 41,505 | |||||||||||
Normalized Adjusted EBITDAR
|
$ | 68,816 | $ | 4,257 | $ | 1,578 | $ | (14,192 | ) | $ | - | $ | 60,459 | |||||||||||
Adjusted EBITDA margin
|
11.9 | % | 8.0 | % | 6.2 | % | 7.8 | % | ||||||||||||||||
Adjusted EBITDAR margin
|
16.3 | % | 8.2 | % | 7.1 | % | 11.8 | % | ||||||||||||||||
Normalized Adjusted EBITDA margin
|
11.9 | % | 8.0 | % | 6.2 | % | 8.8 | % | ||||||||||||||||
Normalized Adjusted EBITDAR margin
|
16.3 | % | 8.2 | % | 7.1 | % | 12.8 | % | ||||||||||||||||
See definitions of EBITDA, Adjusted EBITDA and Adjusted EBITDAR in the table "Reconciliation of Net Income to
|
||||||||||||||||||||||||
Adjusted EBITDA and Adjusted EBITDAR."
|
||||||||||||||||||||||||
See normalizing adjustments in the table "Normalizing Adjustments - Quarter Comparison."
|
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA and ADJUSTED EBITDAR
|
||||||||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
For the Nine Months Ended September 30, 2010
|
||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||
Inpatient
Services |
Rehabilitation
Therapy Services |
Medical
Staffing Services |
Other &
Corp Seg |
Elimination of Affiliated Revenue |
Consolidated
|
|||||||||||||||||||
Nonaffiliated revenue
|
$ | 1,258,271 | $ | 89,723 | $ | 67,712 | $ | 28 | $ | - | $ | 1,415,734 | ||||||||||||
Affiliated revenue
|
- | 63,584 | 1,364 | - | (64,948 | ) | - | |||||||||||||||||
Total revenue
|
$ | 1,258,271 | $ | 153,307 | $ | 69,076 | $ | 28 | $ | (64,948 | ) | $ | 1,415,734 | |||||||||||
Income (loss) from continuing operations
|
$ | 113,601 | $ | 11,757 | $ | 4,479 | $ | (100,376 | ) | $ | - | $ | 29,461 | |||||||||||
Income tax expense
|
- | - | - | 19,990 | - | 19,990 | ||||||||||||||||||
Interest, net
|
7,826 | - | (1 | ) | 26,280 | - | 34,105 | |||||||||||||||||
Depreciation and amortization
|
34,037 | 484 | 543 | 2,385 | - | 37,449 | ||||||||||||||||||
EBITDA
|
$ | 155,464 | $ | 12,241 | $ | 5,021 | $ | (51,721 | ) | $ | - | $ | 121,005 | |||||||||||
Restructuring costs
|
- | - | - | - | - | - | ||||||||||||||||||
Adjusted EBITDA
|
$ | 155,464 | $ | 12,241 | $ | 5,021 | $ | (51,721 | ) | $ | - | $ | 121,005 | |||||||||||
Center rent expense
|
55,326 | 364 | 616 | - | - | 56,306 | ||||||||||||||||||
Adjusted EBITDAR
|
$ | 210,790 | $ | 12,605 | $ | 5,637 | $ | (51,721 | ) | $ | - | $ | 177,311 | |||||||||||
Normalized Adjusted EBITDA
|
$ | 155,464 | $ | 12,241 | $ | 5,021 | $ | (44,726 | ) | $ | - | $ | 128,000 | |||||||||||
Normalized Adjusted EBITDAR
|
$ | 210,790 | $ | 12,605 | $ | 5,637 | $ | (44,726 | ) | $ | - | $ | 184,306 | |||||||||||
Adjusted EBITDA margin
|
12.4 | % | 8.0 | % | 7.3 | % | 8.5 | % | ||||||||||||||||
Adjusted EBITDAR margin
|
16.8 | % | 8.2 | % | 8.2 | % | 12.5 | % | ||||||||||||||||
Normalized Adjusted EBITDA margin
|
12.4 | % | 8.0 | % | 7.3 | % | 9.0 | % | ||||||||||||||||
Normalized Adjusted EBITDAR margin
|
16.8 | % | 8.2 | % | 8.2 | % | 13.0 | % | ||||||||||||||||
See definitions of EBITDA, Adjusted EBITDA and Adjusted EBITDAR in the table "Reconciliation of Net Income to
|
||||||||||||||||||||||||
Adjusted EBITDA and Adjusted EBITDAR."
|
||||||||||||||||||||||||
See normalizing adjustments in the table "Normalizing Adjustments - Year to Date Comparison."
|
Sun Healthcare Group, Inc. and Subsidiaries
|
||||||||||||||||||||||||||||||||
Selected Operating Statistics
|
||||||||||||||||||||||||||||||||
Continuing Operations
|
||||||||||||||||||||||||||||||||
For the
|
For the
|
|||||||||||||||||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||||||||||||
Consolidated Company
|
||||||||||||||||||||||||||||||||
Revenues - Non-affiliated (in thousands)
|
||||||||||||||||||||||||||||||||
Skilled Nursing and similar facilities
|
$ | 419,878 | $ | 409,709 | $ | 1,257,342 | $ | 1,222,976 | ||||||||||||||||||||||||
Hospice
|
14,885 | 11,277 | 43,647 | 33,633 | ||||||||||||||||||||||||||||
Other - Inpatient Services
|
508 | 587 | 1,442 | 1,662 | ||||||||||||||||||||||||||||
Inpatient Services
|
435,271 | 421,573 | 1,302,431 | 1,258,271 | ||||||||||||||||||||||||||||
Rehabilitation Therapy Services
|
29,568 | 30,343 | 89,645 | 89,723 | ||||||||||||||||||||||||||||
Medical Staffing Services
|
20,996 | 21,481 | 65,309 | 67,712 | ||||||||||||||||||||||||||||
Other - non-core businesses
|
15 | 14 | 36 | 28 | ||||||||||||||||||||||||||||
Total
|
$ | 485,850 | $ | 473,411 | $ | 1,457,421 | $ | 1,415,734 | ||||||||||||||||||||||||
Revenue Mix - Non-affiliated (in thousands)
|
||||||||||||||||||||||||||||||||
Medicare
|
$ | 154,953 | 32 | % | $ | 137,606 | 29 | % | $ | 472,652 | 32 | % | $ | 419,846 | 30 | % | ||||||||||||||||
Medicaid
|
191,821 | 39 | % | 193,013 | 41 | % | 562,981 | 39 | % | 569,222 | 40 | % | ||||||||||||||||||||
Private and Other
|
109,232 | 23 | % | 113,502 | 24 | % | 332,338 | 23 | % | 339,162 | 24 | % | ||||||||||||||||||||
Managed Care / Insurance
|
24,387 | 5 | % | 24,142 | 5 | % | 73,762 | 5 | % | 72,476 | 5 | % | ||||||||||||||||||||
Veterans
|
5,457 | 1 | % | 5,148 | 1 | % | 15,688 | 1 | % | 15,028 | 1 | % | ||||||||||||||||||||
Total
|
$ | 485,850 | 100 | % | $ | 473,411 | 100 | % | $ | 1,457,421 | 100 | % | $ | 1,415,734 | 100 | % | ||||||||||||||||
Inpatient Services Stats
|
||||||||||||||||||||||||||||||||
Number of centers:
|
199 | 199 | 199 | 199 | ||||||||||||||||||||||||||||
Number of available beds:
|
22,045 | 22,113 | 22,045 | 22,113 | ||||||||||||||||||||||||||||
Occupancy %:
|
86.3 | % | 87.1 | % | 86.6 | % | 87.1 | % | ||||||||||||||||||||||||
Payor Mix % based on patient days:
|
||||||||||||||||||||||||||||||||
Medicare - SNF Beds
|
15.0 | % | 14.7 | % | 15.5 | % | 15.2 | % | ||||||||||||||||||||||||
Managed care / Ins. - SNF Beds
|
3.9 | % | 3.9 | % | 4.1 | % | 4.0 | % | ||||||||||||||||||||||||
Total SNF skilled mix
|
18.9 | % | 18.6 | % | 19.6 | % | 19.2 | % | ||||||||||||||||||||||||
Medicare
|
13.7 | % | 13.4 | % | 14.2 | % | 13.9 | % | ||||||||||||||||||||||||
Medicaid
|
62.6 | % | 62.4 | % | 62.2 | % | 62.1 | % | ||||||||||||||||||||||||
Private and Other
|
18.9 | % | 19.4 | % | 18.7 | % | 19.1 | % | ||||||||||||||||||||||||
Managed Care / Insurance
|
3.6 | % | 3.6 | % | 3.7 | % | 3.7 | % | ||||||||||||||||||||||||
Veterans
|
1.2 | % | 1.2 | % | 1.2 | % | 1.2 | % | ||||||||||||||||||||||||
Revenue Mix % of revenues:
|
||||||||||||||||||||||||||||||||
Medicare - SNF Beds
|
33.8 | % | 31.2 | % | 34.7 | % | 32.0 | % | ||||||||||||||||||||||||
Managed care / Ins. - SNF Beds
|
6.0 | % | 6.0 | % | 6.0 | % | 6.1 | % | ||||||||||||||||||||||||
Total SNF skilled mix
|
39.8 | % | 37.2 | % | 40.7 | % | 38.1 | % | ||||||||||||||||||||||||
Medicare
|
34.5 | % | 31.5 | % | 35.2 | % | 32.3 | % | ||||||||||||||||||||||||
Medicaid
|
44.1 | % | 45.8 | % | 43.2 | % | 45.2 | % | ||||||||||||||||||||||||
Private and Other
|
14.6 | % | 15.8 | % | 14.8 | % | 15.6 | % | ||||||||||||||||||||||||
Managed Care / Insurance
|
5.5 | % | 5.7 | % | 5.6 | % | 5.7 | % | ||||||||||||||||||||||||
Veterans
|
1.3 | % | 1.2 | % | 1.2 | % | 1.2 | % | ||||||||||||||||||||||||
Revenues PPD:
|
||||||||||||||||||||||||||||||||
Medicare (Part A)
|
$ | 519.12 | $ | 463.45 | $ | 519.70 | $ | 464.51 | ||||||||||||||||||||||||
Medicare Blended Rate (Part A & B)
|
$ | 562.41 | $ | 505.71 | $ | 558.66 | $ | 504.00 | ||||||||||||||||||||||||
Medicaid
|
$ | 174.89 | $ | 173.11 | $ | 173.73 | $ | 172.91 | ||||||||||||||||||||||||
Medicaid, net of provider taxes
|
$ | 159.64 | $ | 159.20 | $ | 158.81 | $ | 159.30 | ||||||||||||||||||||||||
Private and Other
|
$ | 183.77 | $ | 182.90 | $ | 187.62 | $ | 184.91 | ||||||||||||||||||||||||
Managed Care / Insurance
|
$ | 382.31 | $ | 375.78 | $ | 375.49 | $ | 368.92 | ||||||||||||||||||||||||
Veterans
|
$ | 257.15 | $ | 238.74 | $ | 249.90 | $ | 241.06 | ||||||||||||||||||||||||
Rehab contracts
|
||||||||||||||||||||||||||||||||
Affiliated
|
178 | 132 | 178 | 132 | ||||||||||||||||||||||||||||
Non-affiliated
|
343 | 344 | 343 | 344 | ||||||||||||||||||||||||||||
Average Qtrly Revenue per Contract
(in thousands)
|
$ | 120 | $ | 109 | $ | 121 | $ | 107 | ||||||||||||||||||||||||
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||||||
NORMALIZING ADJUSTMENTS - QUARTER COMPARISON
|
||||||||||||||||||||||||||||
(in thousands, except per share data)
|
||||||||||||||||||||||||||||
AS REPORTED - 3rd QUARTER 2011
|
||||||||||||||||||||||||||||
Revenue
|
Adjusted
EBITDAR |
Adjusted
EBITDA |
Pre-tax
|
Income from
Continuing Operations |
Disc Ops
|
Net Income
|
||||||||||||||||||||||
As Reported 3rd QUARTER 2011
|
$ | 485,850 | $ | 63,843 | $ | 26,659 | $ | (306,797 | ) | $ | (308,366 | ) | $ | (1,040 | ) | $ | (309,406 | ) | ||||||||||
Percent of Revenue
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13.1 | % | 5.5 | % | -63.1 | % | -63.5 | % | -0.2 | % | -63.7 | % | ||||||||||||||||
Normalizing Adjustments:
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Restructuring costs
|
- | - | - | 2,426 | 1,480 | - | 1,480 | |||||||||||||||||||||
Impairment of assets
|
- | - | - | 317,091 | 315,289 | - | 315,289 | |||||||||||||||||||||
Normalized As Reported - 3rd QUARTER 2011
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$ | 485,850 | $ | 63,843 | $ | 26,659 | $ | 12,720 | $ | 8,403 | $ | (1,040 | ) | $ | 7,363 | |||||||||||||
Percent of Revenue
|
13.1 | % | 5.5 | % | 2.6 | % | 1.7 | % | -0.2 | % | 1.5 | % | ||||||||||||||||
As Reported
|
$ | (11.77 | ) | $ | (0.04 | ) | $ | (11.81 | ) | |||||||||||||||||||
Diluted EPS: As Normalized
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$ | 0.32 | $ | (0.04 | ) | $ | 0.28 | |||||||||||||||||||||
AS REPORTED - 3rd QUARTER 2010
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Revenue
|
Adjusted
EBITDAR |
Adjusted
EBITDA |
Pre-tax
|
Income from
Continuing Operations |
Disc Ops
|
Net Income
|
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As Reported - 3rd QUARTER 2010
|
$ | 473,411 | $ | 55,712 | $ | 36,758 | $ | 13,592 | $ | 8,033 | $ | (477 | ) | $ | 7,556 | |||||||||||||
Percent of Revenue
|
11.8 | % | 7.8 | % | 2.9 | % | 1.7 | % | -0.1 | % | 1.6 | % | ||||||||||||||||
Normalizing Adjustments:
|
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REIT separation transaction costs
|
- | 4,747 | 4,747 | 4,747 | 2,801 | - | 2,801 | |||||||||||||||||||||
Normalized As Reported - 3rd QUARTER 2010
|
$ | 473,411 | $ | 60,459 | $ | 41,505 | $ | 18,339 | $ | 10,834 | $ | (477 | ) | $ | 10,357 | |||||||||||||
Percent of Revenue
|
12.8 | % | 8.8 | % | 3.9 | % | 2.3 | % | -0.1 | % | 2.2 | % | ||||||||||||||||
As Reported
|
$ | 0.39 | $ | (0.02 | ) | $ | 0.37 | |||||||||||||||||||||
Diluted EPS: As Normalized
|
$ | 0.53 | $ | (0.03 | ) | $ | 0.50 | |||||||||||||||||||||
See definitions of Adjusted EBITDA and Adjusted EBITDAR in the table "Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDAR."
|
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Normalizing adjustments are transactions or adjustments not related to ongoing operations and consist of impairment of assets, restructuring costs and REIT separation transaction costs.
|
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Since normalizing adjustments are not measurements determined in accordance with U.S. generally accepted accounting principles and are thus susceptible to varying calculations and interpretations, the information presented herein may not be comparable to other similarly described information of other companies.
|
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES
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NORMALIZING ADJUSTMENTS - YEAR TO DATE COMPARISON
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(in thousands, except per share data)
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AS REPORTED - NINE MONTHS 2011
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Revenue
|
Adjusted
EBITDAR |
Adjusted
EBITDA |
Pre-tax
|
Income from
Continuing Operations |
Disc Ops
|
Net Income
|
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As Reported - Nine Months 2011
|
$ | 1,457,421 | $ | 195,152 | $ | 84,042 | $ | (274,911 | ) | $ | (289,553 | ) | $ | (1,794 | ) | $ | (291,347 | ) | ||||||||||
Percent of Revenue
|
13.4 | % | 5.8 | % | -18.9 | % | -19.9 | % | -0.1 | % | -20.0 | % | ||||||||||||||||
Normalizing Adjustments:
|
||||||||||||||||||||||||||||
Restructuring costs
|
- | - | - | 2,426 | 1,480 | - | 1,480 | |||||||||||||||||||||
Impairment of assets
|
- | - | - | 317,091 | 315,289 | - | 315,289 | |||||||||||||||||||||
Normalized As Reported - Nine Months 2011
|
$ | 1,457,421 | $ | 195,152 | $ | 84,042 | $ | 44,606 | $ | 27,216 | $ | (1,794 | ) | $ | 25,422 | |||||||||||||
Percent of Revenue
|
13.4 | % | 5.8 | % | 3.1 | % | 1.9 | % | -0.1 | % | 1.7 | % | ||||||||||||||||
As Reported
|
$ | (11.12 | ) | $ | (0.07 | ) | $ | (11.19 | ) | |||||||||||||||||||
Diluted EPS: As Normalized
|
$ | 1.05 | $ | (0.07 | ) | $ | 0.98 | |||||||||||||||||||||
AS REPORTED - NINE MONTHS 2010
|
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Revenue
|
Adjusted
EBITDAR |
Adjusted
EBITDA |
Pre-tax
|
Income from
Continuing Operations |
Disc Ops
|
Net Income
|
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As Reported - Nine Months 2010
|
$ | 1,415,734 | $ | 177,311 | $ | 121,005 | $ | 49,451 | $ | 29,461 | $ | (1,734 | ) | $ | 27,727 | |||||||||||||
Percent of Revenue
|
12.5 | % | 8.5 | % | 3.5 | % | 2.1 | % | -0.1 | % | 2.0 | % | ||||||||||||||||
Normalizing Adjustments:
|
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REIT separation transaction costs
|
- | 6,995 | 6,995 | 6,995 | 4,127 | - | 4,127 | |||||||||||||||||||||
Normalized As Reported - Nine Months 2010
|
$ | 1,415,734 | $ | 184,306 | $ | 128,000 | $ | 56,446 | $ | 33,588 | $ | (1,734 | ) | $ | 31,854 | |||||||||||||
Percent of Revenue
|
13.0 | % | 9.0 | % | 4.0 | % | 2.4 | % | -0.1 | % | 2.2 | % | ||||||||||||||||
As Reported
|
$ | 1.68 | $ | (0.09 | ) | $ | 1.59 | |||||||||||||||||||||
Diluted EPS: As Normalized
|
$ | 1.92 | $ | (0.10 | ) | $ | 1.82 | |||||||||||||||||||||
See definitions of Adjusted EBITDA and Adjusted EBITDAR in the table "Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDAR."
|
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Normalizing adjustments are transactions or adjustments not related to ongoing operations and consist of impairment of assets, restructuring costs and REIT separation transaction costs.
|
||||||||||||||||||||||||||||
Since normalizing adjustments are not measurements determined in accordance with U.S. generally accepted accounting principles and are thus susceptible to varying calculations and interpretations, the information presented herein may not be comparable to other similarly described information of other companies.
|