Health & Fitness
Thu, March 10, 2011Wed, March 9, 2011Tue, March 8, 2011Mon, March 7, 2011Sat, March 5, 2011Fri, March 4, 2011Thu, March 3, 2011Wed, March 2, 2011Tue, March 1, 2011Mon, February 28, 2011Sun, February 27, 2011Fri, February 25, 2011Thu, February 24, 2011Wed, February 23, 2011Tue, February 22, 2011Sun Healthcare Group, Inc. Reports 2010 Fourth-Quarter Results and Normalized EPS of $0.43; Achieves High-End of EBITDAR Guidan
Published in Health and Fitness on Tuesday, March 1st 2011 at 13:50 GMT by Market Wire
IRVINE, CA--(Marketwire - March 1, 2011) - Sun Healthcare Group, Inc. (
Normalized results for the fourth-quarter period ended Dec. 31, 2010:
-- consolidated revenues rose 2.0 percent to $483.4 million, compared to the same period in 2009, driven by rate growth in nursing center business and volume growth in hospice and rehabilitation therapy business; -- consolidated adjusted EBITDAR increased 3.3 percent to $66.0 million and adjusted EBITDAR margin grew 10 basis points to 13.6 percent compared to the same period in 2009; -- diluted earnings per share from continuing operations was $0.43 on 25.8 million weighted-average diluted shares; -- normalized free cash flow was $5.5 million, bringing full year 2010 normalized free cash flow to $68.4 million; and -- results have been normalized to exclude $74.8 million of pre-tax restructuring costs, acquisition and disposal costs, and additions to reserves for prior-periods' self-insurance and general liability matters.
Commenting on the Company's fourth-quarter results, William A. Mathies, Sun's chairman and chief executive officer, remarked, "I am pleased with our reported revenue and EBITDAR growth for the quarter and the year given the environmental challenges we faced in 2010 with the weak economy, soft census trends, reimbursement pressures and various regulatory changes affecting our sector. Our caregivers and leadership teams did an outstanding job embracing these challenges while maintaining their commitment to deliver quality care and achieving $250.6 million of normalized adjusted EBITDAR for fiscal 2010. In addition, we experienced positive admissions trends and rate growth in our nursing center business in alignment with our initiatives associated with caring for high-acuity short-stay patients."
Mathies added, "Our successful fourth-quarter completion of our previously announced restructuring was a milestone event for the Company in terms of creating stockholder value. With the restructuring now complete, I look forward to leading the Company in further value creation activities as we continue to grow our clinical capabilities and outcomes to assist our acute hospital partners in transitioning patients more quickly from acute care settings to our nursing centers. We remain committed to expanding our Rehab Recovery Suites® (RRS) footprint along with more aggressively investing in selected nursing centers to meet the needs of our markets and customer base. Our focus on growth will also include targeted acquisitions that expand our hospice business in synergistic markets and nursing center acquisitions that leverage our infrastructure."
Segment Updates
On a year-over-year basis, revenue growth for the quarter in Sun's inpatient services business totaled $8.2 million, or 1.9 percent. The inpatient services business reported normalized adjusted EBITDAR of $75.9 million for the quarter, with a normalized adjusted EBITDAR margin of 17.6 percent, up 40 basis points from the prior year. Our overall census and skilled mix for the quarter were down on a year-over-year basis by 150 basis points and 120 basis points, respectively, although our ability to capture Medicare and managed care rate growth allowed us to improve our skilled revenue mix by 70 basis points.
Included in the inpatient segment, the SolAmor hospice business experienced same-store revenue growth of 2.1 percent with revenues increasing from $11.7 million in the fourth quarter of 2009 to $11.9 million in the fourth quarter of 2010, due to census expansion. SolAmor contributed $2.9 million of normalized adjusted EBITDAR for the quarter and a normalized adjusted EBITDAR margin of 24.7 percent. On Dec. 29, 2010, SolAmor completed the acquisition of Countryside Hospice Care, Inc., a Medicare-certified hospice company that provides services to approximately 200 hospice patients in Alabama and Georgia. With this acquisition, SolAmor expanded its hospice services to 10 states serving approximately 1,050 patients daily.
SunBridge continues to expand its RRS portfolio which targets short stay, high-acuity patients. At Dec. 31, 2010, RRS centers aggregated 1,992 beds, representing sequential quarter and year-over-year quarter bed increases of 20.9 percent and 30.3 percent, respectively. In 2011, the Company remains committed to this strategy and expects to develop an additional 600 beds, both in new locations and in existing RRS units.
SunDance, Sun's rehabilitation therapy services business, experienced revenue growth of $6.5 million, or 14.0 percent, in the quarter on the strength of the 3.9 percent growth in revenue per contract coupled with growth in total contracts. For the quarter, SunDance reported adjusted EBITDAR of $2.6 million, down 4.9 percent from the prior year quarter due to the anticipated change in concurrent therapy reimbursement. For the fourth quarter, SunDance's adjusted EBITDAR margin was down 100 basis points to 5.0 percent.
As expected, the implementation of the new Medicare payment system, the 1.7 percent market basket increase, the changes to concurrent therapy and the elimination of the look-back period were overall positive to the revenue growth and EBITDAR of the Company on a consolidated basis, notwithstanding the negative impact on SunDance's EBITDAR margin. Experience to date affirms the Company's positive view of the opportunity that these changes in the reimbursement system afford it, given its strategy of serving high-acuity patients, as well as the overall savings the changes should achieve for the Medicare program.
In line with the medical staffing industry as a whole, Sun's medical staffing services business, CareerStaff, continued to be impacted negatively by the slow national economy. Accordingly, revenues from CareerStaff were down 3.5 percent to $22.7 million compared to revenues in the same quarter of 2009. Even with the challenging business environment, CareerStaff achieved adjusted EBITDAR of $1.5 million and an EBITDAR margin of 6.7 percent for the quarter.
Cash Flow and Capital Structure
Sun ended 2010 with $81.2 million in cash and cash equivalents and $156.0 million of long-term debt. Sun's normalized free cash flow for 2010 was $68.4 million after taking into account $53.5 million of cash used for capital expenditures in 2010 and after excluding the $15.1 million of cash used for debt redemption fees associated with the restructuring, the $26.9 million of cash used for professional fees associated with the restructuring and broker fees associated with the acquisition of Countryside.
Normalizing Items
Following approval by the stockholders of Sun's former parent ("Old Sun") in November, Old Sun successfully completed its previously announced restructuring involving the separation of its real estate assets and its operating assets into two separate, publicly traded companies. In connection with the restructuring transaction, the Company incurred pre-tax transaction costs totaling $29.1 million, consisting of legal, accounting and investment banker fees and related costs. The Company also incurred $29.2 million in pre-tax costs associated with the extinguishment of long-term debt in conjunction with the restructuring.
Normalization adjustments also include, on a pre-tax basis, the impact of $15.3 million of additions to reserves for prior periods' self-insurance and general liabilities, $0.4 million of costs associated with the acquisition of Countryside, and $0.8 million of costs associated with the disposition of three nursing centers in the fourth quarter.
Affirmation of 2011 Guidance
The Company also announced that it is reaffirming its previously announced guidance for 2011.
Conference Call
As previously announced, investors and the general public are invited to listen to a conference call with Sun's senior management on Wednesday, March 2, 2011, at 10 a.m. Pacific / 1 p.m. Eastern, to discuss the Company's results for the fourth quarter and year end of 2010.
To listen to the conference call, dial (888) 299-7236 and refer to Sun Healthcare Group. A recording of the call will be available from 4 p.m. Eastern on March 2, 2011, until 11:59 p.m. Eastern on April 1, 2011, by calling (888) 203-1112 and using access code 3702327.
About Sun Healthcare Group, Inc.
Sun Healthcare Group, Inc. (
Forward-looking Statements
Statements made in this release that are not historical facts are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These forward-looking statements may include, but are not limited to, statements containing words such as "anticipate," "believe," "plan," "estimate," "expect," "hope," "intend," "may" and similar expressions. Forward-looking statements in this release include all statements regarding the expected results of operations, growth opportunities and plans and objectives of management for future operations, including expectations concerning the expansion of the Company's RRS portfolio, acquisitions and the impact of changes in the Medicare payment system. Factors that could cause actual results to differ are identified in filings made by the Company with the Securities and Exchange Commission and include changes in Medicare and Medicaid reimbursements; the impact that healthcare reform legislation will have on the Company's business; the ability to maintain the occupancy rates and payor mix at the Company's healthcare centers; potential liability for losses not covered by, or in excess of, insurance; the effects of government regulations and investigations; the ability of the Company to collect its accounts receivable on a timely basis; the significant amount of the Company's indebtedness; covenants in debt agreements that may restrict the Company's activities, including the Company's ability to make acquisitions and incur more indebtedness on favorable terms; the impact of the current economic downturn on the business; increasing labor costs and the shortage of qualified healthcare personnel; and the Company's ability to receive increases in reimbursement rates from government payors to cover increased costs. More information on factors that could affect the Company's business and financial results are included in Sun's filings made with the Securities and Exchange Commission, including its Annual Report on Forms 10-K and Quarterly Reports on Form 10-Q, copies of which are available on Sun's web site, [ www.sunh.com ]. There may be additional risks of which the Company is presently unaware or that it currently deems immaterial.
The forward-looking statements involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control. Sun cautions investors that any forward-looking statements made by Sun are not guarantees of future performance and are only made as of the date of this release. Sun disclaims any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements to reflect future events or developments.
Adjusted EBITDA, adjusted EBITDAR and free cash flow, as used in this press release and in the accompanying tables, which are non-GAAP financial measures, are each reconciled to their respective GAAP recognized financial measures in the accompanying tables. In addition, the normalizing adjustments to adjusted EBITDAR, earnings per share and free cash flow as discussed in this press release and shown, together with normalizing adjustments to other financial measures, in the accompanying tables, are non-GAAP adjustments, and are reconciled to GAAP financial measures in the accompanying tables.
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES KEY INCOME STATEMENT FIGURES CONSOLIDATED (in thousands, except per share data) For the For the Three Months Three Months Ended Ended December 31, December 31, 2010 2009 ------------ ------------ Revenue $ 483,418 $ 473,827 Depreciation and amortization 10,276 12,125 Interest expense, net 8,698 11,905 Pre-tax income (loss) (48,956) 16,631 Income tax (benefit) expense (17,026) 6,821 (Loss) income from continuing operations (31,930) 9,810 Loss from discontinued operations (446) (1,135) ------------ ------------ Net (loss) income $ (32,376) $ 8,675 ============ ============ Diluted earnings per share $ (1.26) $ 0.59 ============ ============ Adjusted EBITDAR $ 28,114 $ 59,465 Margin - Adjusted EBITDAR 5.8% 12.5% Adjusted EBITDAR normalized $ 65,977 $ 63,870 Margin - Adjusted EBITDAR normalized 13.6% 13.5% Adjusted EBITDA $ 86 $ 41,093 Margin - Adjusted EBITDA 0.0% 8.7% Adjusted EBITDA normalized $ 37,949 $ 45,498 Margin - Adjusted EBITDA normalized 7.9% 9.6% Pre-tax income continuing operations - normalized $ 18,975 $ 21,468 Income tax expense - normalized $ 7,779 $ 8,804 Income from continuing operations - normalized $ 11,196 $ 12,664 Diluted earnings per share from continuing operations - normalized $ 0.43 $ 0.86 Net income - normalized $ 10,750 $ 11,842 Diluted earnings per share - normalized $ 0.42 $ 0.80 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 Year Ended Year Ended December 31, December 31, 2010 2009 ------------ ------------ Revenue $ 1,906,861 $ 1,880,776 Depreciation and amortization 48,008 45,453 Interest expense, net 43,064 49,327 Pre-tax income 248 72,696 Income tax expense 2,964 29,616 (Loss) income from continuing operations (2,716) 43,080 Loss from discontinued operations (1,934) (4,409) ------------ ------------ Net (loss) income $ (4,650) $ 38,671 ============ ============ Diluted earnings per share $ (0.24) $ 2.63 ============ ============ Adjusted EBITDAR $ 205,722 $ 241,950 Margin - Adjusted EBITDAR 10.8% 12.9% Adjusted EBITDAR normalized $ 250,581 $ 250,655 Margin - Adjusted EBITDAR normalized 13.1% 13.3% Adjusted EBITDA $ 121,388 $ 168,822 Margin - Adjusted EBITDA 6.4% 9.0% Adjusted EBITDA normalized $ 166,247 $ 177,527 Margin - Adjusted EBITDA normalized 8.7% 9.4% Pre-tax income continuing operations - normalized $ 75,175 $ 82,705 Income tax expense - normalized $ 30,637 $ 33,720 Income from continuing operations - normalized $ 44,538 $ 48,985 Diluted earnings per share from continuing operations - normalized $ 2.31 $ 3.33 Net income - normalized $ 42,604 $ 45,237 Diluted earnings per share - normalized $ 2.21 $ 3.07 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 share data) December 31, December 31, 2010 2009 ------------ ------------ (audited) (audited) ASSETS Current assets: Cash and cash equivalents $ 81,163 $ 104,483 Restricted cash 15,329 24,034 Accounts receivable, net 218,040 220,319 Prepaid expenses and other assets 16,859 21,757 Deferred tax assets 69,800 68,415 ------------ ------------ Total current assets 401,191 439,008 Property and equipment, net 139,860 622,682 Intangible assets, net 41,967 38,628 Goodwill 348,047 338,296 Restricted cash, non-current 350 3,317 Deferred tax assets 126,540 108,999 Other assets 23,803 20,264 ------------ ------------ Total assets $ 1,081,758 $ 1,571,194 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 49,993 $ 57,109 Accrued compensation and benefits 61,518 58,953 Accrued self-insurance obligations, current portion 52,093 45,661 Other accrued liabilities 53,945 55,265 Current portion of long-term debt and capital lease obligations 11,050 46,416 ------------ ------------ Total current liabilities 228,599 263,404 Accrued self-insurance obligations, net of current portion 133,405 121,948 Long-term debt and capital lease obligations, net of current portion 144,930 654,132 Unfavorable lease obligations, net 9,815 12,663 Other long-term liabilities 52,566 69,983 ------------ ------------ Total liabilities 569,315 1,122,130 Stockholders' equity: Preferred stock of $.01 par value, authorized 3,333,333 shares, zero shares were issued and outstanding as of December 31, 2010 and authorized 10,000,000 shares, zero shares were issued and outstanding as of December 31, 2009 - - Common stock of $.01 par value, authorized 41,666,667 shares, 24,973,693 shares issued and outstanding as of December 31, 2010 and authorized 125,000,000 shares, 43,764,240 shares issued and outstanding as of December 31, 2009 250 438 Additional paid-in capital 720,854 655,666 Accumulated deficit (208,661) (204,011) Accumulated other comprehensive loss, net - (3,029) ------------ ------------ 512,443 449,064 ------------ ------------ Total liabilities and stockholders' equity $ 1,081,758 $ 1,571,194 ============ ============
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (in thousands, except per share data) For the For the Three Months Three Months Ended Ended December 31, December 31, 2010 2009 ------------ ------------ (unaudited) (unaudited) Total net revenues $ 483,418 $ 473,827 ------------ ------------ Costs and expenses: Operating salaries and benefits 273,556 266,522 Self-insurance for workers' compensation and general and professional liability insurance 27,104 18,122 Operating administrative costs 13,011 12,693 Other operating costs 98,660 97,422 Center rent expense 28,028 18,372 General and administrative expenses 16,273 14,011 Depreciation and amortization 10,276 12,125 Provision for losses on accounts receivable 4,583 5,592 Interest, net of interest income of $92 and $74, respectively 8,698 11,905 Loss on extinguishment of debt, net 29,221 - Transaction costs 22,117 - Loss on sale of assets, net 847 - Restructuring costs - 432 ------------ ------------ Total costs and expenses 532,374 457,196 ------------ ------------ (Loss) income before income taxes and discontinued operations (48,956) 16,631 Income tax (benefit) expense (17,026) 6,821 ------------ ------------ (Loss) income from continuing operations (31,930) 9,810 ------------ ------------ Discontinued operations: Loss from discontinued operations, net of related taxes (446) (1,136) Gain on disposal of discontinued operations, net of related taxes - 1 ------------ ------------ Loss from discontinued operations, net (446) (1,135) ------------ ------------ Net (loss) income $ (32,376) $ 8,675 ============ ============ Basic income per common and common equivalent share: (Loss) income from continuing operations $ (1.24) $ 0.67 Loss from discontinued operations, net (0.02) (0.08) ------------ ------------ Net (loss) income $ (1.26) $ 0.59 ============ ============ Diluted income per common and common equivalent share: (Loss) income from continuing operations $ (1.24) $ 0.67 Loss from discontinued operations, net (0.02) (0.08) ------------ ------------ Net (loss) income $ (1.26) $ 0.59 ============ ============ Weighted average number of common and common equivalent shares outstanding: Basic 25,791 14,648 Diluted 25,791 14,746
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (in thousands, except per share data) For the For the Year Ended Year Ended Ended Ended December 31, December 31, 2010 2009 ------------ ------------ (audited) (audited) Total net revenues $ 1,906,861 $ 1,880,776 Costs and expenses: Operating salaries and benefits 1,077,859 1,056,265 Self-insurance for workers' compensation and general and professional liability insurance 70,806 63,740 Operating administrative costs 51,943 50,924 Other operating costs 390,008 384,655 Center rent expense 84,334 73,128 General and administrative expenses 60,842 62,068 Depreciation and amortization 48,008 45,453 Provision for losses on accounts receivable 20,568 21,174 Interest, net of interest income of $315 and $383, respectively 43,064 49,327 Loss on extinguishment of debt, net 29,221 - Transaction costs 29,113 - Loss on sale of assets, net 847 42 Restructuring costs - 1,304 ------------ ------------ Total costs and expenses 1,906,613 1,808,080 ------------ ------------ Income before income taxes and discontinued operations 248 72,696 Income tax expense 2,964 29,616 ------------ ------------ (Loss) income from continuing operations (2,716) 43,080 ------------ ------------ Discontinued operations: Loss from discontinued operations, net of related taxes (1,934) (4,076) Loss on disposal of discontinued operations, net of related taxes - (333) ------------ ------------ Loss from discontinued operations, net (1,934) (4,409) ------------ ------------ Net (loss) income $ (4,650) $ 38,671 ============ ============ Basic income per common and common equivalent share: (Loss) income from continuing operations $ (0.14) $ 2.95 Loss from discontinued operations, net (0.10) (0.30) ------------ ------------ Net (loss) income $ (0.24) $ 2.65 ============ ============ Diluted income per common and common equivalent share: (Loss) income from continuing operations $ (0.14) $ 2.93 Loss from discontinued operations, net (0.10) (0.30) ------------ ------------ Net (Loss) income $ (0.24) $ 2.63 ============ ============ Weighted average number of common and common equivalent shares outstanding: Basic 19,280 14,614 Diluted 19,280 14,714
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) For the For the Three Months Three Months Ended Ended December 31, December 31, 2010 2009 ------------ ------------ (unaudited) (unaudited) Cash flows from operating activities: Net income $ (32,376) $ 8,675 Adjustments to reconcile net income to net cash provided by operating activities, including discontinued operations: Loss on extinguishment of debt 14,126 - Depreciation and amortization 10,279 12,128 Amortization of favorable and unfavorable lease intangibles (493) (474) Provision for losses on accounts receivable 4,747 5,597 Loss on sale of assets, including discontinued operations, net 847 (2) Stock-based compensation expense 1,552 1,425 Deferred taxes (16,566) 8,984 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable (6,445) (12,959) Restricted cash 331 1,817 Prepaid expenses and other assets (2,341) 2,795 Accounts payable 1,786 3,433 Accrued compensation and benefits 574 (7,916) Accrued self-insurance obligations 12,849 6,504 Income taxes payable (1,605) - Other accrued liabilities (8,643) (11,721) Other long-term liabilities (872) (1,401) ------------ ------------ Net cash (used for) provided by operating activities (22,250) 16,885 ------------ ------------ Cash flows from investing activities: Capital expenditures (12,040) (12,854) Acquisitions, net of cash acquired (13,894) (14,936) ------------ ------------ Net cash used for investing activities (25,934) (27,790) ------------ ------------ Cash flows from financing activities: Borrowings of long-term debt 415,000 (2,043) Principal repayments of long-term debt and capital lease obligations (322,041) - Distribution to non-controlling interest (36) - Distribution to Sabra Heatlh Care REIT, Inc. (66,862) - Dividends to stockholders (9,996) - Proceeds from issuance of common stock (608) 26 Deferred financing costs (24,460) - ------------ ------------ Net cash used for financing activities (9,003) (2,017) ------------ ------------ Net (decrease) increase in cash and cash equivalents (57,187) (12,922) Cash and cash equivalents at beginning of period 138,350 117,405 ------------ ------------ Cash and cash equivalents at end of period $ 81,163 $ 104,483 ============ ============ Reconciliation of net cash provided by operating activities to free cash flow: Net cash (used for) provided by operating activities $ (22,250) $ 16,885 Capital expenditures (12,040) (12,854) Cash used for professional fees on restructuring 24,232 - Cash used for early redemption fees 15,095 - Cash used for broker fees on acquisitions 446 - ------------ ------------ Normalized free cash flow $ 5,483 $ 4,031 ============ ============ Normalized free cash flow is defined as net cash flow provided by operating activities less cash used for capital expenditures. Normalized free cash flow is used by management to evaluate discretionary cash flow potentially available for debt service and other financing activities.
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) For the For the Twelve Twelve Months Ended Months Ended December 31, December 31, 2010 2009 ------------ ------------ (audited) (audited) Cash flows from operating activities: Net income $ (4,650) $ 38,671 Adjustments to reconcile net income to net cash provided by operating activities, including discontinued operations: Loss on extinguishment of debt 14,126 - Depreciation and amortization 48,023 45,465 Amortization of favorable and unfavorable lease intangibles (1,945) (1,824) Provision for losses on accounts receivable 21,175 21,196 Loss on sale of assets, including discontinued operations, net 847 605 Stock-based compensation expense 6,300 5,810 Deferred taxes (1,590) 27,003 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable (18,945) (33,547) Restricted cash 3,176 10,628 Prepaid expenses and other assets 5,671 2,940 Accounts payable (1,842) (8,390) Accrued compensation and benefits 2,519 (2,989) Accrued self-insurance obligations 17,890 7,759 Other accrued liabilities (9,919) (3,196) Other long-term liabilities (928) (1,223) ------------ ------------ Net cash provided by operating activities 79,908 108,908 ------------ ------------ Cash flows from investing activities: Capital expenditures (53,528) (54,312) Purchase of leased real estate - (3,275) Proceeds from sale of assets held for sale - 2,174 Acquisitions, net of cash acquired (13,894) (14,936) ------------ ------------ Net cash used for investing activities (67,422) (70,349) ------------ ------------ Cash flows from financing activities: Borrowings of long-term debt 435,500 20,822 Principal repayments of long-term debt and capital lease obligations (590,939) (46,292) Payment to non-controlling interest (2,025) (311) Distribution to non-controlling interest (105) (549) Distribution to Sabra Heatlh Care REIT, Inc. (66,862) - Dividends to stockholders (9,996) - Proceeds from issuance of common stock 225,393 101 Deferred financing costs (26,772) - ------------ ------------ Net cash used for financing activities (35,806) (26,229) ------------ ------------ Net increase in cash and cash equivalents (23,320) 12,330 Cash and cash equivalents at beginning of period 104,483 92,153 ------------ ------------ Cash and cash equivalents at end of period $ 81,163 $ 104,483 ============ ============ Reconciliation of net cash provided by operating activities to free cash flow: Net cash provided by operating activities $ 79,908 $ 108,908 Capital expenditures (53,528) (54,312) Cash used for professional fees on restructuring 26,436 - Cash used for early redemption fees 15,095 - Cash used for broker fees on acquisitions 446 - ------------ ------------ Normalized free cash flow $ 68,357 $ 54,596 ============ ============ Normalized free cash flow is defined as net cash flow provided by operating activities less cash used for capital expenditures. Normalized free cash flow is used by management to evaluate discretionary cash flow potentially available for debt service and other financing activities.
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME TO EBITDA and EBITDAR (in thousands) For the For the Three Months Three Months Ended Ended December 31, December 31, 2010 2009 ------------ ------------ (unaudited) (unaudited) Total net revenues $ 483,418 $ 473,827 ------------ ------------ Net (loss) income $ (32,376) $ 8,675 ------------ ------------ (Loss) income from continuing operations (31,930) 9,810 Income tax (benefit) expense (17,026) 6,821 Interest, net 8,698 11,905 Depreciation and amortization 10,276 12,125 ------------ ------------ EBITDA $ (29,982) $ 40,661 Loss on extinguishment of debt, net 29,221 - Loss on sale of assets, net 847 - Restructuring costs - 432 ------------ ------------ Adjusted EBITDA $ 86 $ 41,093 Center rent expense 28,028 18,372 ------------ ------------ Adjusted EBITDAR $ 28,114 $ 59,465 ============ ============ EBITDA is defined as earnings before loss on discontinued operations, income taxes, interest, net, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before loss on extinguishment of debt, restructuring costs and loss on sale of assets, net. Adjusted EBITDAR is defined as Adjusted EBITDA before center rent expense. Adjusted EBITDA and Adjusted EBITDAR are used by management to evaluate financial performance and resource allocation for each entity within the operating units and for the Company as a whole. Adjusted EBITDA and Adjusted EBITDAR are commonly used as analytical indicators within the healthcare industry and also serve as measures of leverage capacity and debt service ability. Adjusted EBITDA and Adjusted EBITDAR should not be considered as measures of financial performance under generally accepted accounting principles. As the items excluded from Adjusted EBITDA and Adjusted EBITDAR are significant components in understanding and assessing finance performance, Adjusted EBITDA and Adjusted EBITDAR should not be considered in isolation or as alternatives to net income, cash flows generated by or used in operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Because Adjusted EBITDA and Adjusted EBTIDAR are not measurements determined in accordance with U.S. generally accepted accounting principles and are thus susceptible to varying calculations, Adjusted EBITDA and Adjusted EBITDAR as presented may not be comparable to other similarly titled measures of other companies.
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME TO EBITDA and ADJUSTED EBITDAR (in thousands) For the For the Year Ended Year Ended Ended Ended December 31, December 31, 2010 2009 ------------ ------------ (audited) (audited) Total net revenues $ 1,906,861 $ 1,880,776 ------------ ------------ Net (loss) income $ (4,650) $ 38,671 ------------ ------------ (Loss) income from continuing operations (2,716) 43,080 Income tax expense 2,964 29,616 Interest, net 43,064 49,327 Depreciation and amortization 48,008 45,453 ------------ ------------ EBITDA $ 91,320 $ 167,476 Loss on extinguishment of debt, net 29,221 - Loss on sale of assets, net 847 42 Restructuring costs - 1,304 ------------ ------------ Adjusted EBITDA $ 121,388 $ 168,822 Center rent expense 84,334 73,128 ------------ ------------ Adjusted EBITDAR $ 205,722 $ 241,950 ============ ============ EBITDA is defined as earnings before loss on discontinued operations, income taxes, interest, net, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before, loss on extinguishment of debt, restructuring costs and loss on sale of assets, net. Adjusted EBITDAR is defined as Adjusted EBITDA before center rent expense. Adjusted EBITDA and Adjusted EBITDAR are used by management to evaluate financial performance and resource allocation for each entity within the operating units and for the Company as a whole. Adjusted EBITDA and Adjusted EBITDAR are commonly used as analytical indicators within the healthcare industry and also serve as measures of leverage capacity and debt service ability. Adjusted EBITDA and Adjusted EBITDAR should not be considered as measures of financial performance under generally accepted accounting principles. As the items excluded from Adjusted EBITDA and Adjusted EBITDAR are significant components in understanding and assessing finance performance, Adjusted EBITDA and Adjusted EBITDAR should not be considered in isolation or as alternatives to net income, cash flows generated by or used in operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Because Adjusted EBITDA and Adjusted EBTIDAR are not measurements determined in accordance with U.S. generally accepted accounting principles and are thus susceptible to varying calculations, Adjusted EBITDA and Adjusted EBITDAR as presented may not be comparable to other similarly titled measures of other companies.
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 December 31, 2010 (unaudited) Rehabil- Elimination itation Medical of Inpatient Therapy Staffing Other & Affiliated Consoli- Services Services Services Corp Seg Revenue dated ---------- -------- -------- --------- -------- ---------- Nonaffiliated revenue $ 431,464 $ 29,889 $ 22,053 $ 12 $ - $ 483,418 Affiliated revenue - 22,892 672 - (23,564) - ---------- -------- -------- --------- -------- ---------- Total revenue $ 431,464 $ 52,781 $ 22,725 $ 12 $(23,564) $ 483,418 ---------- -------- -------- --------- -------- ---------- Income (loss) from continuing operations $ 36,547 $ 2,315 $ 1,116 $ (71,908) $ - $ (31,930) Income tax expense - - - (17,026) - (17,026) Interest, net 1,406 - - 7,292 - 8,698 Depreciation and amortization 9,013 194 189 880 - 10,276 ---------- -------- -------- --------- -------- ---------- EBITDA $ 46,966 $ 2,509 $ 1,305 $ (80,762) $ - $ (29,982) Loss on extinguishment of debt, net - - - 29,221 - 29,221 Loss on sale of assets, net 847 - - - - 847 ---------- -------- -------- --------- -------- ---------- Adjusted EBITDA $ 47,813 $ 2,509 $ 1,305 $ (51,541) $ - $ 86 Center rent expense 27,667 133 228 - - 28,028 ---------- -------- -------- --------- -------- ---------- Adjusted EBITDAR $ 75,480 $ 2,642 $ 1,533 $ (51,541) $ - $ 28,114 ========== ======== ======== ========= ======== ========== Normalized Adjusted EBITDA $ 48,259 $ 2,509 $ 1,305 $ (14,124) $ - $ 37,949 Normalized Adjusted EBITDAR $ 75,926 $ 2,642 $ 1,533 $ (14,124) $ - $ 65,977 Adjusted EBITDA margin 11.1% 4.8% 5.7% 0.0% Adjusted EBITDAR margin 17.5% 5.0% 6.7% 5.8% Normalized Adjusted EBITDA margin 11.2% 4.8% 5.7% 7.9% Normalized Adjusted EBITDAR margin 17.6% 5.0% 6.7% 13.6% 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 RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA and ADJUSTED EBITDAR ($ in thousands) For the Year Ended December 31, 2010 (audited) Rehabil- Elimination itation Medical of Inpatient Therapy Staffing Other & Affiliated Consoli- Services Services Services Corp Seg Revenue dated ---------- -------- -------- --------- -------- ---------- Nonaffiliated revenue $1,697,444 $119,612 $ 89,765 $ 40 $ - $1,906,861 Affiliated revenue - 86,476 2,036 - (88,512) - ---------- -------- -------- --------- -------- ---------- Total revenue $1,697,444 $206,088 $ 91,801 $ 40 $(88,512) $1,906,861 ---------- -------- -------- --------- -------- ---------- Income (loss) from continuing operations $ 149,900 $ 14,073 $ 5,595 (172,284) $ - $ (2,716) Income tax expense - - - 2,964 - 2,964 Interest, net 9,493 - (1) 33,572 - 43,064 Depreciation and amortization 43,333 678 732 3,265 - 48,008 ---------- -------- -------- --------- -------- ---------- EBITDA $ 202,726 $ 14,751 $ 6,326 $(132,483) $ - $ 91,320 Loss on extinguish- ment of debt, net - - - 29,221 - 29,221 Loss on sale of assets, net 847 - - - - 847 ---------- -------- -------- --------- -------- ---------- Adjusted EBITDA $ 203,573 $ 14,751 $ 6,326 $(103,262) $ - $ 121,388 Center rent expense 82,994 496 844 - - 84,334 ---------- -------- -------- --------- -------- ---------- Adjusted EBITDAR $ 286,567 $ 15,247 $ 7,170 $(103,262) $ - $ 205,722 ========== ======== ======== ========= ======== ========== Normalized Adjusted EBITDA $ 204,019 $ 14,751 $ 6,326 $ (58,849) $ - $ 166,247 Normalized Adjusted EBITDAR $ 287,013 $ 15,247 $ 7,170 $ (58,849) $ - $ 250,581 Adjusted EBITDA margin 12.0% 7.2% 6.9% 6.4% Adjusted EBITDAR margin 16.9% 7.4% 7.8% 10.8% Normalized Adjusted EBITDA margin 12.0% 7.2% 6.9% 8.7% Normalized Adjusted EBITDAR margin 16.9% 7.4% 7.8% 13.1% 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 RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA and ADJUSTED EBITDAR ($ in thousands) For the Three Months Ended December 31, 2009 (unaudited) Rehabil- Elimination itation Medical of Inpatient Therapy Staffing Other & Affiliated Consoli- Services Services Services Corp Seg Revenue dated ---------- -------- -------- --------- -------- ---------- Nonaffiliated revenue $ 423,228 $ 27,303 $ 23,289 $ 7 $ - $ 473,827 Affiliated revenue - 18,998 262 - (19,260) - ---------- -------- -------- --------- -------- ---------- Total revenue $ 423,228 $ 46,301 $ 23,551 $ 7 $(19,260) $ 473,827 ---------- -------- -------- --------- -------- ---------- Income (loss) from continuing operations $ 36,144 $ 2,506 $ 2,209 $ (31,049) $ - $ 9,810 Income tax expense - - - 6,821 - 6,821 Interest, net 2,881 - (1) 9,025 - 11,905 Depreciation and amortization 11,004 141 179 801 - 12,125 ---------- -------- -------- --------- -------- ---------- EBITDA $ 50,029 $ 2,647 $ 2,387 $ (14,402) $ - $ 40,661 Restructuring costs 143 - - 289 - 432 ---------- -------- -------- --------- -------- ---------- Adjusted EBITDA $ 50,172 $ 2,647 $ 2,387 $ (14,113) $ - $ 41,093 Center rent expense 18,021 131 220 - - 18,372 ---------- -------- -------- --------- -------- ---------- Adjusted EBITDAR $ 68,193 $ 2,778 $ 2,607 $ (14,113) $ - $ 59,465 ========== ======== ======== ========= ======== ========== Normalized Adjusted EBITDA $ 54,577 $ 2,647 $ 2,387 $ (14,113) $ - $ 45,498 Normalized Adjusted EBITDAR $ 72,598 $ 2,778 $ 2,607 $ (14,113) $ - $ 63,870 Adjusted EBITDA margin 11.9% 5.7% 10.1% 8.7% Adjusted EBITDAR margin 16.1% 6.0% 11.1% 12.5% Normalized Adjusted EBITDA margin 12.9% 5.7% 10.1% 9.6% Normalized Adjusted EBITDAR margin 17.2% 6.0% 11.1% 13.5% 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 RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA and ADJUSTED EBITDAR ($ in thousands) For the Year Ended December 31, 2009 (audited) Rehabil- Elimination itation Medical of Inpatient Therapy Staffing Other & Affiliated Consoli- Services Services Services Corp Seg Revenue dated ---------- -------- -------- --------- -------- ---------- Nonaffiliated revenue $1,674,752 $105,366 $100,624 $ 34 $ - $1,880,776 Affiliated revenue - 74,166 1,930 - (76,096) - ---------- -------- -------- --------- -------- ---------- Total revenue $1,674,752 $179,532 $102,554 $ 34 $(76,096) $1,880,776 ---------- -------- -------- --------- -------- ---------- Income (loss) from continuing operations $ 156,537 $ 11,078 $ 8,610 $(133,145) $ - $ 43,080 Income tax expense - - - 29,616 - 29,616 Interest, net 12,226 (2) (2) 37,105 - 49,327 Depreciation and amortization 41,325 540 780 2,808 - 45,453 ---------- -------- -------- --------- -------- ---------- EBITDA $ 210,088 $ 11,616 $ 9,388 $ (63,616) $ - $ 167,476 Loss on sale of assets, net 8 34 - - - 42 Restructuring costs 143 - - 1,161 - 1,304 ---------- -------- -------- --------- -------- ---------- Adjusted EBITDA $ 210,239 $ 11,650 $ 9,388 $ (62,455) $ - $ 168,822 Center rent expense 71,728 480 920 - - 73,128 ---------- -------- -------- --------- -------- ---------- Adjusted EBITDAR $ 281,967 $ 12,130 $ 10,308 $ (62,455) $ - $ 241,950 ========== ======== ======== ========= ======== ========== Normalized Adjusted EBITDA $ 218,944 $ 11,650 $ 9,388 $ (62,455) $ - $ 177,527 Normalized Adjusted EBITDAR $ 290,672 $ 12,130 $ 10,308 $ (62,455) $ - $ 250,655 Adjusted EBITDA margin 12.6% 6.5% 9.2% 9.0% Adjusted EBITDAR margin 16.8% 6.8% 10.1% 12.9% Normalized Adjusted EBITDA margin 13.1% 6.5% 9.2% 9.4% Normalized Adjusted EBITDAR margin 17.4% 6.8% 10.1% 13.3% 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 Selected Operating Statistics Continuing Operations For the For the Three Months Ended Twelve Months Ended December 31, December 31, ---------------------- -------------------------- 2010 2009 2010 2009 Consolidated Company Revenues - Non-affiliated (in thousands) ----------------- Skilled Nursing and similar facilities $418,993 $411,019 1,649,677 1,641,571 Hospice 11,901 11,654 45,533 30,903 Other - Inpatient Services 570 555 2,234 2,278 -------- -------- ---------- ---------- Inpatient Services 431,464 423,228 1,697,444 1,674,752 Rehabilitation Therapy Services 29,889 27,303 119,612 105,366 Medical Staffing Services 22,053 23,289 89,765 100,624 Other - non-core businesses 12 7 40 34 -------- -------- ---------- ---------- Total $483,418 $473,827 $1,906,861 $1,880,776 ======== ======== ========== ========== Revenue Mix - Non-affiliated (in thousands) ---------------- Medicare $145,477 30% $137,511 29% 566,874 30% 554,570 29% Medicaid 196,272 41% 194,035 41% 771,128 40% 753,393 40% Private and Other 112,815 23% 112,702 24% 452,309 24% 454,126 25% Managed Care / Insurance 23,518 5% 25,004 5% 96,153 5% 101,595 5% Veterans 5,336 1% 4,575 1% 20,397 1% 17,092 1% ------------ ------------ -------------- -------------- Total $483,418 100% $473,827 100% $1,906,861 100% $1,880,776 100% ============ ============ ============== ============== Inpatient Services Stats Number of centers: 200 200 200 200 Number of available beds: 22,243 22,166 22,243 22,166 Occupancy %: 86.6% 88.1% 87.0% 88.5% Payor Mix % based on patient days: Medicare - SNF Beds 14.1% 14.9% 14.9% 15.6% Managed care / Ins. - SNF Beds 3.7% 4.1% 3.9% 4.1% -------- -------- ---------- ---------- Total SNF skilled mix 17.8% 19.0% 18.8% 19.7% -------- -------- ---------- ---------- Medicare 12.9% 13.5% 13.6% 14.2% Medicaid 63.1% 61.7% 62.4% 60.7% Private and Other 19.3% 20.0% 19.2% 20.3% Managed Care / Insurance 3.4% 3.7% 3.6% 3.8% Veterans 1.3% 1.1% 1.2% 1.0% Revenue Mix % of revenues: Medicare - SNF Beds 32.3% 31.1% 32.0% 32.4% Managed care / Ins. - SNF Beds 5.8% 6.3% 6.0% 6.4% -------- -------- ---------- ---------- Total SNF skilled mix 38.1% 37.4% 38.0% 38.8% -------- -------- ---------- ---------- Medicare 32.6% 31.5% 32.3% 32.1% Medicaid 45.5% 45.8% 45.4% 45.0% Private and Other 15.3% 15.7% 15.5% 15.9% Managed Care / Insurance 5.4% 5.9% 5.6% 6.0% Veterans 1.2% 1.1% 1.2% 1.0% Revenues PPD: Medicare (Part A) $ 515.62 $ 457.79 $ 476.59 $ 455.02 Medicare Blended Rate (Part A & B) $ 558.85 $ 494.01 $ 517.05 $ 492.44 Medicaid $ 174.59 $ 173.57 $ 173.62 $ 171.55 Private and Other $ 184.23 $ 178.17 $ 184.77 $ 176.40 Managed Care / Insurance $ 390.15 $ 370.11 $ 374.02 $ 372.93 Veterans $ 239.33 $ 235.19 $ 240.88 $ 231.33 Rehab contracts Affiliated 162 127 162 127 Non-affiliated 346 337 346 337 Average Qtrly Revenue per Contract (in thousands) $ 104 $ 100 $ 101 $ 97
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES NORMALIZING ADJUSTMENTS - QUARTER COMPARISON (in thousands, except per share data) AS REPORTED - 4th QUARTER 2010 -------------------------------------------------------------- Income from Continuing Adjusted Adjusted Opera- Disc Net Revenue EBITDAR EBITDA Pre-tax tions Ops Income -------- ------- ------- ------- -------- ------- -------- As Reported 4th QUARTER 2010 $483,418 $28,114 $ 86 $(48,956) $(31,930) $ (446) $(32,376) -------- ------- ------- ------- -------- ------- -------- Percent of Revenue 5.8% 0.0% -10.1% -6.6% -0.1% -6.7% Normalizing Adjustments: Loss on sale of property - - - 847 500 - 500 Loss on extinguish- ment of debt - - - 29,221 17,240 - 17,240 Transaction costs related to acquisition - 446 446 446 263 - 263 Prior periods' self- insurance costs and other general liability matters - 15,300 15,300 15,300 9,027 - 9,027 REIT separation transaction costs - 22,117 22,117 22,117 16,096 - 16,096 -------- ------- ------- ------- -------- ------- -------- Normalized As Reported - 4th QUARTER 2010 $483,418 $65,977 $37,949 $18,975 $ 11,196 $ (446) $ 10,750 ======== ======= ======= ======= ======== ======= ======== Percent of Revenue 13.6% 7.9% 3.9% 2.3% -0.1% 2.2% Diluted EPS: As Reported $ (1.24) $ (0.02) $ (1.26) As Normalized $ 0.43 $ (0.01) $ 0.42 AS REPORTED - 4th QUARTER 2009 -------------------------------------------------------------- Income from Continuing Adjusted Adjusted Opera- Disc Net Revenue EBITDAR EBITDA Pre-tax tions Ops Income -------- ------- ------- ------- -------- ------- -------- As Reported - 4th QUARTER 2009 $473,827 $59,465 $41,093 $16,631 $ 9,810 $(1,135) $ 8,675 Percent of Revenue 12.5% 8.7% 3.5% 2.1% -0.2% 1.8% Normalizing Adjustments: Restructur- ing costs - - - 432 255 - 255 Transaction costs related to acquisition - 485 485 485 286 - 286 Prior periods' self- insurance costs - 3,920 3,920 3,920 2,313 313 2,626 -------- ------- ------- ------- -------- ------- -------- Normalized As Reported - 4th QUARTER 2009 $473,827 $63,870 $45,498 $21,468 $ 12,664 $ (822) $ 11,842 ======== ======= ======= ======= ======== ======= ======== Percent of Revenue 13.5% 9.6% 4.5% 2.7% -0.2% 2.5% Diluted EPS: As Reported $ 0.67 $ (0.08) $ 0.59 As Normalized $ 0.86 $ (0.06) $ 0.80 See definitions of Adjusted EBITDA and Adjusted EBITDAR in the table "Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDAR". Normalizing adjustments are transactions or adjustments not related to ongoing operations and consist of: loss on sale of property, loss on extinguishment of debt, transaction costs related to acquisition, prior periods' self-insurance costs and other general liability matters, REIT separation transaction costs and restructuring 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.
SUN HEALTHCARE GROUP, INC. AND SUBSIDIARIES NORMALIZING ADJUSTMENTS - YEAR TO DATE COMPARISON (in thousands, except per share data) AS REPORTED - TWELVE MONTHS 2010 --------------------------------------------------------------- Income from Continuing Adjusted Adjusted Opera- Disc Net Revenue EBITDAR EBITDA Pre-tax tions Ops Income ---------- -------- -------- ------- ------- ------- -------- As Reported - Twelve Months 2010 $1,906,861 $205,722 $121,388 $ 248 $(2,716) $(1,934) $ (4,650) Percent of Revenue 10.8% 6.4% 0.0% -0.1% -0.1% -0.2% Normalizing Adjustments: Loss on sale of property - - - 847 500 - 500 Loss on extinguish- ment of debt - - - 29,221 17,240 - 17,240 Transaction costs related to acquisition - 446 446 446 263 - 263 Prior periods' self- insurance costs and other general liability matters - 15,300 15,300 15,300 9,027 - 9,027 REIT separation transaction costs - 29,113 29,113 29,113 20,224 - 20,224 ---------- -------- -------- ------- ------- ------- -------- Normalized As Reported - Twelve Months 2010 $1,906,861 $250,581 $166,247 $75,175 $44,538 $(1,934) $ 42,604 ========== ======== ======== ======= ======= ======= ======== Percent of Revenue 13.1% 8.7% 3.9% 2.3% -0.1% 2.2% Diluted EPS: As Reported $ (0.14) $ (0.10) $ (0.24) As Normalized $ 2.31 $ (0.10) $ 2.21
AS REPORTED - TWELVE MONTHS 2009 --------------------------------------------------------------- Income from Continuing Adjusted Adjusted Opera- Disc Net Revenue EBITDAR EBITDA Pre-tax tions Ops Income ---------- -------- -------- ------- ------- ------- -------- As Reported - Twelve Months 2009 $1,880,776 $241,950 $168,822 $72,696 $43,080 $(4,409) $ 38,671 Percent of Revenue 12.9% 9.0% 3.9% 2.3% -0.2% 2.1% Normalizing Adjustments: Restructur- ing costs - - - 1,304 769 - 769 Transaction costs related to acquisition - 485 485 485 286 - 286 Prior periods' self- insurance costs - 8,220 8,220 8,220 4,850 661 5,511 ---------- -------- -------- ------- ------- ------- -------- Normalized As Reported - Twelve Months 2009 $1,880,776 $250,655 $177,527 $82,705 $48,985 $(3,748) $ 45,237 ========== ======== ======== ======= ======= ======= ======== Percent of Revenue 13.3% 9.4% 4.4% 2.6% -0.2% 2.4% Diluted EPS: As Reported $ 2.93 $ (0.30) $ 2.63 As Normalized $ 3.33 $ (0.26) $ 3.07 See definitions of Adjusted EBITDA and Adjusted EBITDAR in the table "Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDAR". Normalizing adjustments are transactions or adjustments not related to ongoing operations and consist of: loss on sale of property, loss on extinguishment of debt, transaction costs related to acquisition, prior periods' self-insurance costs and other general liability matters, REIT separation transaction costs and restructuring costs. Normalizing adjustments do not include any adjustment for the August 2010 equity offering or the use of proceeds to pay down debt, avoiding interest expense. 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.
