Skilled Healthcare To Restate 2006 To 2009 Results

FOOTHILL RANCH, Calif. (AP) — Nursing-facility operator Skilled Healthcare Group Inc. on Wednesday said it expects to restate its results going back to 2006 because it understated reserves for its accounts receivables.

Skilled Healthcare said it appears the errors came from improper dating of accounts receivables by a former employee. The restatement affects the company's results from January 1, 2006 to March 31, 2009.

Accounts receivable are money the company owes in exchange for good or services that have been delivered and used, but not paid for. Skilled Healthcare estimated it will cost $8 million to $9 million to correct the errors, after taxes. As a result, the Foothill Ranch, Calif., company now expects a profit of $1.02 to $1.08 per share for this year, down from its prior view of $1.08 to $1.14 per share.

Thomson Reuters says analysts expect $1.11 per share.