Boston, MA 05\/16\/2014 (wallstreetpr) \u2013 Skilled Healthcare Group, Inc. (NYSE:SKH) <\/b>reported its financial results for the first quarter ended March 31, 2014. During the quarter, Skilled\u2019s revenue declined by 3.6% to $207.3 million due to decreasing quality, skilled and occupancy rate.<\/p>\n
Weak performance<\/b><\/p>\n
Quality mix was down by 230 basis points (bps) to 67.7%, skilled mix declined by 60 bps to 22.4% and occupancy decreased by 40 bps to 82.5%. Therefore, the three operating segments reported lower revenue compared to prior year quarter.<\/p>\n
Long-Term Care Services segment, which represents ~80% of total revenue during the period were down marginally to $161.4 million (1Q2013: $161.9 million).<\/p>\n
However, Therapy Services segment contributed ~11% to total revenue and decreased by 15.1% to $23.0 million due to lower revenue from its Hallmark Rehabilitation centers. The Signature Hospice and Home Health segment also reported lower revenue of $22.9 million, down by 12.3% due to ~19% decline in average daily hospice population.<\/p>\n
The declining revenue as a result of lower occupancy across the three segments compressed the operating margins. So, the adjusted EBITDA was decreased by 6.3% to $17.9 million (1Q2013: $19.1 million) and adjusted EBITDAR declined by 4.6% to $22.6 million (1Q2013: $23.7 million).<\/p>\n
Lower operating earnings and higher provision for income tax squeezed the bottom line significantly. Adjusted net income during the period was $2.3 million, down by 43% and adjusted EPS was down by 40% to $0.06 (1Q2013: $0.10).<\/p>\n
Liquidity and capital resources<\/b><\/p>\n
Despite weak earnings, Skilled Healthcare Group, Inc. (NYSE:SKH) improved the operating cash flow to $5.7 million versus $4.5 million in 1Q2013, as a result, higher change in working capital. But, the Company used higher capital expenditures of $3.6 million in 1Q2014 that reduced the free cash flow to $2.2 million.<\/p>\n
In addition, higher cash used for debt repayment that decreased the net cash balance to $4.2 million. Skilled Healthcare Group, Inc. (NYSE:SKH) has a total available long-term debt of $419.2 million as of March 31, 2014.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/16\/2014 (wallstreetpr) \u2013 Skilled Healthcare Group, Inc. (NYSE:SKH) reported its financial results for the first quarter ended March 31, 2014. During the quarter, […]<\/p>\n","protected":false},"author":6,"featured_media":22538,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[264],"tags":[6675,6674],"stock_ticker":[],"class_list":["post-22535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health","tag-nyseskh","tag-skilled-healthcare-group-inc-nyseskh","entry"],"acf":[],"yoast_head":"\n