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And now, I would like to turn the call over to Bruce Mackey.
Great. Thank you, Tim. And thank you everyone for joining us today on our 2011 fourth quarter earnings call. For the quarter ended December 31, 2011 we recorded or 12th consecutive quarter of profitability of net income from continuing operations of $1.11 per basic share and $1.05 per diluted share. These results were positively impacted by an approximate $54 million income tax benefit related to the reversal of our tax valuation allowance, $3.5 million gain on the sale of available for sale securities partially offset by an impairment of long-lived assets of $3.5 million and acquisition related cost of $229,000.
Paul will discuss the details of the income tax benefit and the impairment of long-lived assets that we recorded in his prepared remarks. Excluding these items, our adjusted net income for continuing operations was $0.02 per basic and diluted share for the quarter.
For the 2011 full year, our adjusted diluted net income for continuing operations at $0.40 per share. As you know, starting on October 1st, 2011, Medicare cut its rates to (inaudible) by 11% with the impact of Five Star being closer to 12%. We did feel the effect of this loss in revenue and EBITDA during the quarter, however, we maintained our record of consistent profitability and through our recent acquisitions of private pay communities offset the majority of this loss on an annual basis. Over the past several months we made some changes to our corporate regional structure to help address this loss of Medicaid revenue going forward.