Kindred Healthcare, Inc. (the “Company”) (NYSE:KND) today announced its operating results for the second quarter ended June 30, 2012. The Company’s consolidated financial statements include the operating results of RehabCare Group, Inc. (“RehabCare”) since the closing of the acquisition on June 1, 2011.
Second Quarter Highlights:
- Consolidated revenues rose 19% to $1.5 billion
- RehabCare acquisition added $359 million to current quarter revenues and $114 million to last year’s second quarter
- RehabCare synergy plan reaches $70 million annual goal
- Hospital results were bolstered by the RehabCare acquisition, volume growth and cost efficiencies
- Reported admissions grew 26% from last year; same-facility admissions grew 3%
- Excluding disclosed charges, operating income grew 37% to $149 million (compared to reported amount of $141 million)
- Nursing and rehabilitation center division operating income improved to $71 million from $66 million in the first quarter of 2012
- RehabCare contract therapy division operating income rose to $41 million from $30 million in the first quarter of 2012 as operating margins rebounded to 12.4%
- PeopleFirst home health and hospice division reported significant revenue and operating income growth
- Corporate overhead declined as a percent of revenues to 2.9% from 3.4% in last year’s second quarter
- Operating cash flows improved from first quarter levels to $53 million despite $14 million in Medicaid payments deferred by states until July
Second Quarter Results
Continuing OperationsConsolidated revenues for the second quarter ended June 30, 2012 rose 19% to $1.5 billion compared to $1.3 billion in the second quarter last year. Income from continuing operations for the second quarter of 2012 totaled $15.5 million or $0.29 per diluted share compared to a loss of $6.1 million or $0.14 per diluted share in the second quarter last year.