Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - KINDRED HEALTHCARE, INC | d25075d8k.htm |
| EX-99.2 - EX-99.2 - KINDRED HEALTHCARE, INC | d25075dex992.htm |
EXHIBIT 99.1
| Contact: | Susan E. Moss | |
| Investor Relations | ||
| (502) 596-6569 |
KINDRED HEALTHCARE REPORTS SECOND QUARTER 2015 RESULTS
Core Diluted EPS from Continuing Operations of $0.39(1) in the Second Quarter
GAAP EPS from Continuing Operations of $0.25 in the Second Quarter Reflects Costs of
$0.14 Per Share Related to Transaction, Integration, Litigation and Other Restructuring Initiatives
Second Quarter Consolidated Revenue Growth of 45% and Core EBITDAR Growth of 49%(1)
Acquisition Integration and Synergy Realization Goals On Schedule
Reaffirms 2015 Revenue, Core EBITDAR, and Adjusted Core EPS Guidance
Raises 2015 Core EPS Guidance to $1.25 to $1.45 Per Diluted Share
LOUISVILLE, Ky. (August 5, 2015) – Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND) today announced its operating results for the second quarter ended June 30, 2015.
Benjamin A. Breier, President and Chief Executive Officer of the Company, commented, “We are pleased to report a solid second quarter that represents our first full quarter of combined operations since completing the Gentiva Health Services, Inc. (“Gentiva”) and Centerre Healthcare Corporation (“Centerre”) acquisitions earlier this year. We made substantial progress on our integration and synergy initiatives for Gentiva and Centerre and expect to continue that positive momentum into the third quarter. The operating and financial performance of both of these businesses has exceeded our expectations and further strengthened our ability to deliver outstanding patient care across the Company.”
All financial and statistical information included in this press release reflects the continuing operations of the Company’s businesses for all periods presented unless otherwise indicated. The acquisitions of Gentiva and Centerre have been included in the operating results presented since the date of acquisition.
Second Quarter Consolidated Highlights(1):
| • | Consolidated revenues increased 45.4% to $1.83 billion and earnings before interest, income taxes, depreciation, amortization, rent and certain charges (“core EBITDAR”) increased 48.9% to $262 million, each as compared to the same period last year |
| • | Core diluted EPS from continuing operations was $0.39 and adjusted core diluted EPS from continuing operations was $0.51 based upon 86.4 million weighted average diluted shares, an improvement as compared to core diluted EPS of $0.35 and adjusted core diluted EPS of $0.50 for the same period a year ago based upon 53.8 million weighted average diluted shares |
| • | The Company generated significant core operating cash flows of $98 million compared to $1 million for the same period a year ago; core free cash flows were $73 million compared to a core free cash flow deficit of $23 million in the second quarter of 2014 |
| • | The Kindred Board of Directors declared a regular quarterly cash dividend of $0.12 per share on the Company’s common stock payable on September 4, 2015 |
| (1) | See reconciliation of core results to generally accepted accounting principles (“GAAP”) results beginning on page 11. |
– MORE –
680 South Fourth Street Louisville, Kentucky 40202
502.596.7300 www.kindredhealthcare.com
Kindred Healthcare Announces Second Quarter 2015 Results
Page 2
August 5, 2015
Second Quarter Segment Highlights(1):
Kindred’s Hospital Division (“HD”) revenues increased 2.4% over the prior year to $627 million in the second quarter of 2015 driven primarily by growth in revenue per admission of 5.5%. Admissions in the quarter declined 2.6% on a same-hospital basis over the prior year. HD’s core EBITDAR contribution remained unchanged at $132 million, due to effective cost controls that kept cost per patient day growth under 1.0%. HD continues to make solid progress in its preparations for the implementation of the new long-term acute care hospital criteria, which has an initial effective date for the Company of September 1, 2016.
Kindred at Home (“KAH”) revenues and core EBITDAR grew to $606 million and $101 million, respectively, for the quarter. The home health operations achieved solid growth during the second quarter of 2015, with episodic admissions increasing 6.5% and revenues increasing 7.6% to $360 million, both over the prior year on a combined basis. The hospice segment generated $178 million of revenues, continuing its growth trajectory with a 2% sequential growth in average daily census.
Kindred Rehabilitation Services (“KRS”) revenues grew 11.7% to $389 million and core EBITDAR contribution grew 29.8% to $59 million. The hospital-based rehabilitation services segment, which includes Kindred’s freestanding inpatient rehabilitation facilities (“IRF”), experienced strong revenue growth of $58 million or 60.6% over the prior year, due to the successful Centerre acquisition, and achieved core EBITDAR margin improvement from 27.1% to 29.2%. The skilled nursing rehabilitation services segment (“RHB”) experienced a 6.7% revenue reduction from the prior year primarily due to contract losses in the first quarter. RHB had additional contract losses in the second quarter, but these moderated compared to the levels in the first quarter of 2015.
Kindred’s Nursing Center Division (“NCD”) had an outstanding quarter, reporting revenue and admissions growth of 3.6% and 2.2%, respectively, over the prior year. NCD core EBITDAR increased 4.8% over the prior year to $41 million based upon improved revenue, rates and admissions compared to the prior year.
Mr. Breier commented, “While we are pleased with the operational and clinical performance of each of our business segments, we are even more encouraged by how these businesses are coming together to deliver a coordinated continuum of care that enables population-based delivery models in a value-based reimbursement system. With the integrated markets we serve, and the diversity of services we deploy today, we are able to deliver quality care in the right setting, at the right time and at the right cost. We believe that this network is one that will be increasingly valued by payors and patients alike.”
2015 Outlook
Kindred today reaffirmed its previously provided estimates for 2015 financial results and raised its core earnings per share guidance for 2015. (2) Kindred now expects:
| • | 2015 annual revenues of approximately $7.2 billion |
| • | Core EBITDAR of approximately $1.0 billion to $1.05 billion (3) |
| • | Adjusted core earnings of $1.70 to $1.90 per diluted share(4)(5) |
| • | Kindred raised its core earnings expectations to $1.25 to $1.45 per diluted share (4) compared to its prior expectations of $1.20 to $1.40 per diluted share. |
For the third quarter of 2015, the Company expects core diluted earnings per share from continuing operations to approximate $0.18 to $0.28 and adjusted core diluted earnings per share from continuing operations to approximate $0.30 to $0.40.
| (1) | See reconciliation of core results to GAAP results beginning on page 11. |
| (2) | Guidance includes Gentiva for eleven months and Centerre for the full year. |
| (3) | Includes $35 million from Gentiva synergies expected to be realized in 2015. |
| (4) | The earnings per share estimate is based upon an estimated weighted average annual diluted share count for 2015 of 86 million shares. The estimated annual diluted share count for 2015 includes approximately 3.5 million shares of common stock issued in February and May to holders of 80,621 tangible equity units that elected early conversion settlements. |
| (5) | Adjusted core earnings per diluted share is calculated by excluding non-cash expenses, net of the income tax benefit, related to amortization of intangible assets, stock-based compensation and deferred financing costs, from core income from continuing operations. The estimated non-cash expenses for 2015 total approximately $66 million ($40 million net of income taxes) or approximately $0.45 per diluted share. |
- MORE -
Kindred Healthcare Announces Second Quarter 2015 Results
Page 3
August 5, 2015
Stephen D. Farber, Executive Vice President and Chief Financial Officer, commented, “We have significantly progressed our Gentiva and Centerre integration efforts over the quarter. We are on track both operationally and financially for the year, including our goal to realize $35 million of synergy contribution in 2015. Our cash flow performance in the quarter was markedly improved over the prior year, and we continue to make progress with our leverage profile while investing in our businesses and returning significant capital to shareholders through our quarterly cash dividends.”
The guidance excludes transaction costs, pre-closing financing costs and post-closing integration costs associated with the acquisitions of Gentiva and Centerre, the effect of reimbursement changes, debt refinancing costs, severance, retirement, retention and restructuring costs, litigation and related contingency expense (including the $95 million loss contingency reserve accrued during the first quarter of 2015 related to the previously disclosed investigation into a therapy services company acquired by Kindred in 2011), other transaction costs, any further acquisitions or divestitures, any impairment charges, any further issuances of common stock or any repurchases of common stock.
Quarterly Cash Dividend
The Company announced that its Board of Directors has approved the payment of the regular quarterly cash dividend of $0.12 per share of common stock to be paid on September 4, 2015 to shareholders of record as of the close of business on August 19, 2015.
Conference Call
As previously announced, investors and the general public may access a live webcast of the second quarter 2015 conference call through a link on the Company’s website at http://investors.kindredhealthcare.com. The conference call will be held on August 6 at 10:00 a.m. (Eastern Time).
A telephone replay of the conference call will become available at approximately 1:00 p.m. on August 6 by dialing (719) 457-0820, access code: 5256358. The replay will be available through August 16.
Forward-Looking Statements and Non-GAAP Reconciliations
See page 10 for important disclosures regarding our forward-looking statements and the non-GAAP financial reconciliations that follow.
About Kindred Healthcare
Kindred Healthcare, Inc., a top-85 private employer in the United States, is a FORTUNE 500 healthcare services company based in Louisville, Kentucky with annual revenues of approximately $7.2 billion(1). At June 30, 2015, Kindred through its subsidiaries had approximately 103,700 employees providing healthcare services in 2,730 locations in 47 states, including 96 transitional care hospitals, 16 inpatient rehabilitation hospitals, 90 nursing centers, 21 sub-acute units, 656 Kindred at Home home health, hospice and non-medical home care sites of service, 99 inpatient rehabilitation units (hospital-based) and a contract rehabilitation services business, RehabCare, which served 1,752 non-affiliated sites of service. Ranked as one of Fortune magazine’s Most Admired Healthcare Companies for six years, Kindred’s mission is to promote healing, provide hope, preserve dignity and produce value for each patient, resident, family member, customer, employee and shareholder we serve. For more information, go to www.kindredhealthcare.com. You can also follow us on Twitter and Facebook.
| (1) | Revenues were computed by combining the twelve months ended December 31, 2014 data for Kindred, Gentiva and Centerre. |
- MORE -
Kindred Healthcare Announces Second Quarter 2015 Results
Page 4
August 5, 2015
KINDRED HEALTHCARE, INC.
Condensed Consolidated Statement of Operations
(Unaudited)
(In thousands, except per share amounts)
| Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Revenues |
$ | 1,833,475 | $ | 1,261,397 | $ | 3,509,442 | $ | 2,534,007 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Salaries, wages and benefits |
935,687 | 606,095 | 1,782,780 | 1,224,789 | ||||||||||||
| Supplies |
98,237 | 71,585 | 191,508 | 144,550 | ||||||||||||
| Rent |
96,402 | 77,699 | 188,542 | 156,229 | ||||||||||||
| Other operating expenses |
212,117 | 172,674 | 409,844 | 342,204 | ||||||||||||
| General and administrative expenses |
334,805 | 244,746 | 740,907 | 476,018 | ||||||||||||
| Other income |
(569 | ) | (122 | ) | (1,049 | ) | (334 | ) | ||||||||
| Litigation contingency expense |
3,925 | 4,600 | 98,925 | 4,600 | ||||||||||||
| Impairment charges |
— | — | 6,726 | — | ||||||||||||
| Depreciation and amortization |
38,625 | 39,172 | 77,560 | 78,264 | ||||||||||||
| Interest expense |
57,170 | 80,530 | 119,688 | 106,329 | ||||||||||||
| Investment income |
(1,030 | ) | (2,449 | ) | (1,771 | ) | (2,631 | ) | ||||||||
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| 1,775,369 | 1,294,530 | 3,613,660 | 2,530,018 | |||||||||||||
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|||||||||
| Income (loss) from continuing operations before income taxes |
58,106 | (33,133 | ) | (104,218 | ) | 3,989 | ||||||||||
| Provision (benefit) for income taxes |
24,396 | (12,683 | ) | (3,340 | ) | 1,512 | ||||||||||
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|
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| Income (loss) from continuing operations |
33,710 | (20,450 | ) | (100,878 | ) | 2,477 | ||||||||||
| Discontinued operations, net of income taxes: |
||||||||||||||||
| Loss from operations |
(589 | ) | (8,768 | ) | (4,013 | ) | (16,210 | ) | ||||||||
| Gain (loss) on divestiture of operations |
983 | (2,018 | ) | 983 | (5,024 | ) | ||||||||||
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| Income (loss) from discontinued operations |
394 | (10,786 | ) | (3,030 | ) | (21,234 | ) | |||||||||
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|||||||||
| Net income (loss) |
34,104 | (31,236 | ) | (103,908 | ) | (18,757 | ) | |||||||||
| (Earnings) loss attributable to noncontrolling interests: |
||||||||||||||||
| Continuing operations |
(11,735 | ) | (4,828 | ) | (20,582 | ) | (9,357 | ) | ||||||||
| Discontinued operations |
2 | 253 | 31 | 323 | ||||||||||||
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|||||||||
| (11,733 | ) | (4,575 | ) | (20,551 | ) | (9,034 | ) | |||||||||
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|||||||||
| Income (loss) attributable to Kindred |
$ | 22,371 | $ | (35,811 | ) | $ | (124,459 | ) | $ | (27,791 | ) | |||||
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| Amounts attributable to Kindred stockholders: |
||||||||||||||||
| Income (loss) from continuing operations |
$ | 21,975 | $ | (25,278 | ) | $ | (121,460 | ) | $ | (6,880 | ) | |||||
| Income (loss) from discontinued operations |
396 | (10,533 | ) | (2,999 | ) | (20,911 | ) | |||||||||
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| Net income (loss) |
$ | 22,371 | $ | (35,811 | ) | $ | (124,459 | ) | $ | (27,791 | ) | |||||
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| Earnings (loss) per common share: |
||||||||||||||||
| Basic: |
||||||||||||||||
| Income (loss) from continuing operations |
$ | 0.25 | $ | (0.47 | ) | $ | (1.47 | ) | $ | (0.13 | ) | |||||
| Discontinued operations: |
||||||||||||||||
| Loss from operations |
(0.01 | ) | (0.16 | ) | (0.05 | ) | (0.30 | ) | ||||||||
| Gain (loss) on divestiture of operations |
0.01 | (0.04 | ) | 0.01 | (0.09 | ) | ||||||||||
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| Income (loss) from discontinued operations |
— | (0.20 | ) | (0.04 | ) | (0.39 | ) | |||||||||
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| Net income (loss) |
$ | 0.25 | $ | (0.67 | ) | $ | (1.51 | ) | $ | (0.52 | ) | |||||
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| Diluted: |
||||||||||||||||
| Income (loss) from continuing operations |
$ | 0.25 | $ | (0.47 | ) | $ | (1.47 | ) | $ | (0.13 | ) | |||||
| Discontinued operations: |
||||||||||||||||
| Loss from operations |
(0.01 | ) | (0.16 | ) | (0.05 | ) | (0.30 | ) | ||||||||
| Gain (loss) on divestiture of operations |
0.01 | (0.04 | ) | 0.01 | (0.09 | ) | ||||||||||
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| Income (loss) from discontinued operations |
— | (0.20 | ) | (0.04 | ) | (0.39 | ) | |||||||||
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| Net income (loss) |
$ | 0.25 | $ | (0.67 | ) | $ | (1.51 | ) | $ | (0.52 | ) | |||||
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| Shares used in computing earnings (loss) per common share: |
||||||||||||||||
| Basic |
86,045 | 53,714 | 82,828 | 53,180 | ||||||||||||
| Diluted |
86,402 | 53,714 | 82,828 | 53,180 | ||||||||||||
| Cash dividends declared and paid per common share |
$ | 0.12 | $ | 0.12 | $ | 0.24 | $ | 0.24 | ||||||||
– MORE –
Kindred Healthcare Announces Second Quarter 2015 Results
Page 5
August 5, 2015
KINDRED HEALTHCARE, INC.
Condensed Consolidated Balance Sheet
(Unaudited)
(In thousands, except per share amounts)
| June 30, 2015 |
December 31, 2014 |
|||||||
| ASSETS | ||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 119,536 | $ | 164,188 | ||||
| Insurance subsidiary investments |
104,534 | 99,951 | ||||||
| Accounts receivable less allowance for loss |
1,253,218 | 944,219 | ||||||
| Inventories |
27,120 | 25,702 | ||||||
| Deferred tax assets |
92,786 | 82,391 | ||||||
| Income taxes |
15,996 | 8,575 | ||||||
| Interest deposit on senior unsecured notes held in escrow |
— | 23,438 | ||||||
| Other |
78,172 | 41,598 | ||||||
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| 1,691,362 | 1,390,062 | |||||||
| Property and equipment |
2,084,349 | 1,978,153 | ||||||
| Accumulated depreciation |
(1,134,817 | ) | (1,076,049 | ) | ||||
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|
|||||
| 949,532 | 902,104 | |||||||
| Goodwill |
2,643,328 | 997,597 | ||||||
| Intangible assets less accumulated amortization |
799,902 | 400,700 | ||||||
| Assets held for sale |
2,384 | 3,475 | ||||||
| Insurance subsidiary investments |
198,410 | 166,045 | ||||||
| Deferred tax assets |
— | 11,174 | ||||||
| Proceeds from senior unsecured notes held in escrow |
— | 1,350,000 | ||||||
| Acquisition deposit |
— | 195,000 | ||||||
| Other |
321,009 | 236,807 | ||||||
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| Total assets |
$ | 6,605,927 | $ | 5,652,964 | ||||
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| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 183,843 | $ | 175,725 | ||||
| Salaries, wages and other compensation |
467,693 | 358,857 | ||||||
| Due to third party payors |
44,490 | 43,957 | ||||||
| Professional liability risks |
61,550 | 64,137 | ||||||
| Other accrued liabilities |
347,230 | 189,980 | ||||||
| Long-term debt due within one year |
32,354 | 24,607 | ||||||
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| 1,137,160 | 857,263 | |||||||
| Long-term debt |
3,222,443 | 2,852,531 | ||||||
| Professional liability risks |
267,503 | 243,614 | ||||||
| Deferred tax liabilities |
8,422 | — | ||||||
| Deferred credits and other liabilities |
298,124 | 213,584 | ||||||
| Equity: |
||||||||
| Stockholders’ equity: |
||||||||
| Common stock, $0.25 par value; authorized 175,000 shares; issued 83,693 shares - June 30, 2015 and 69,977 shares - December 31, 2014 |
20,923 | 17,494 | ||||||
| Capital in excess of par value |
1,747,585 | 1,586,692 | ||||||
| Accumulated other comprehensive loss |
(3,211 | ) | (2,551 | ) | ||||
| Accumulated deficit |
(286,357 | ) | (159,768 | ) | ||||
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| 1,478,940 | 1,441,867 | |||||||
| Noncontrolling interests |
193,335 | 44,105 | ||||||
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| Total equity |
1,672,275 | 1,485,972 | ||||||
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| Total liabilities and equity |
$ | 6,605,927 | $ | 5,652,964 | ||||
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– MORE –
Kindred Healthcare Announces Second Quarter 2015 Results
Page 6
August 5, 2015
KINDRED HEALTHCARE, INC.
Condensed Consolidated Statement of Cash Flows
(Unaudited)
(In thousands)
| Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Cash flows from operating activities: |
||||||||||||||||
| Net income (loss) |
$ | 34,104 | $ | (31,236 | ) | $ | (103,908 | ) | $ | (18,757 | ) | |||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
||||||||||||||||
| Depreciation and amortization |
38,849 | 40,922 | 77,926 | 82,226 | ||||||||||||
| Amortization of stock-based compensation costs |
6,746 | 6,378 | 12,570 | 8,963 | ||||||||||||
| Amortization of deferred financing costs |
3,539 | 16,832 | 6,601 | 19,229 | ||||||||||||
| Payment of capitalized lender fees related to debt issuance |
— | (19,125 | ) | (28,012 | ) | (19,125 | ) | |||||||||
| Provision for doubtful accounts |
10,511 | 12,133 | 18,803 | 20,893 | ||||||||||||
| Deferred income taxes |
21,130 | 17,528 | (4,450 | ) | 21,503 | |||||||||||
| Impairment charges |
— | 220 | 6,726 | 664 | ||||||||||||
| (Gain) loss on divestiture of discontinued operations |
(983 | ) | 2,018 | (983 | ) | 5,024 | ||||||||||
| Other |
4,975 | 70 | 6,972 | 2,114 | ||||||||||||
| Change in operating assets and liabilities: |
||||||||||||||||
| Accounts receivable |
(7,733 | ) | (41,066 | ) | (39,389 | ) | (112,895 | ) | ||||||||
| Inventories and other assets |
(17,608 | ) | (3,769 | ) | 35,414 | (9,987 | ) | |||||||||
| Accounts payable |
(12,900 | ) | (5,425 | ) | (12,435 | ) | (18,877 | ) | ||||||||
| Income taxes |
1,923 | (40,476 | ) | (3,845 | ) | (11,063 | ) | |||||||||
| Due to third party payors |
(3,554 | ) | (12,354 | ) | (18,973 | ) | (14,367 | ) | ||||||||
| Other accrued liabilities |
21,380 | 7,387 | 7,760 | (21,262 | ) | |||||||||||
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| Net cash provided by (used in) operating activities |
100,379 | (49,963 | ) | (39,223 | ) | (65,717 | ) | |||||||||
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| Cash flows from investing activities: |
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| Routine capital expenditures |
(24,500 | ) | (24,485 | ) | (45,269 | ) | (46,162 | ) | ||||||||
| Development capital expenditures |
(518 | ) | (372 | ) | (6,306 | ) | (1,123 | ) | ||||||||
| Acquisitions, net of cash acquired |
(2,684 | ) | (1,383 | ) | (661,755 | ) | (24,098 | ) | ||||||||
| Acquisition deposit |
— | — | 195,000 | — | ||||||||||||
| Sale of assets |
2,229 | 8,927 | 3,177 | 13,961 | ||||||||||||
| Proceeds from senior unsecured notes offering held in escrow |
— | — | 1,350,000 | — | ||||||||||||
| Interest in escrow for senior unsecured notes |
— | — | 23,438 | — | ||||||||||||
| Purchase of insurance subsidiary investments |
(16,911 | ) | (13,179 | ) | (42,829 | ) | (23,293 | ) | ||||||||
| Sale of insurance subsidiary investments |
12,764 | 17,758 | 34,793 | 26,520 | ||||||||||||
| Net change in insurance subsidiary cash and cash equivalents |
(5,205 | ) | (4,957 | ) | (5,763 | ) | (11,556 | ) | ||||||||
| Change in other investments |
175 | 70 | 199 | 710 | ||||||||||||
| Other |
(798 | ) | 17 | (793 | ) | (534 | ) | |||||||||
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| Net cash provided by (used in) investing activities |
(35,448 | ) | (17,604 | ) | 843,892 | (65,575 | ) | |||||||||
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| Cash flows from financing activities: |
||||||||||||||||
| Proceeds from borrowings under revolving credit |
347,700 | 648,315 | 1,155,150 | 1,157,015 | ||||||||||||
| Repayment of borrowings under revolving credit |
(360,100 | ) | (943,715 | ) | (970,150 | ) | (1,369,515 | ) | ||||||||
| Proceeds from issuance of term loan, net of discount |
— | 997,500 | 199,000 | 997,500 | ||||||||||||
| Proceeds from issuance of senior unsecured notes |
— | 500,000 | — | 500,000 | ||||||||||||
| Repayment of Gentiva debt |
— | — | (1,177,363 | ) | — | |||||||||||
| Repayment of senior unsecured notes |
— | (550,000 | ) | — | (550,000 | ) | ||||||||||
| Repayment of term loan |
(6,005 | ) | (781,594 | ) | (6,005 | ) | (783,563 | ) | ||||||||
| Repayment of other long-term debt |
(459 | ) | (67 | ) | (900 | ) | (157 | ) | ||||||||
| Payment of deferred financing costs |
(445 | ) | (2,378 | ) | (2,983 | ) | (2,648 | ) | ||||||||
| Equity offering, net of offering costs |
— | 203,977 | — | 203,977 | ||||||||||||
| Issuance of common stock in connection with employee benefit plans |
139 | 883 | 205 | 4,687 | ||||||||||||
| Payment of costs associated with issuance of common stock and tangible equity units |
— | — | (915 | ) | — | |||||||||||
| Payment of dividend for mandatory redeemable preferred stock |
(2,654 | ) | — | (5,432 | ) | — | ||||||||||
| Dividends paid |
(10,027 | ) | (6,572 | ) | (20,002 | ) | (13,086 | ) | ||||||||
| Distributions to noncontrolling interests |
(10,119 | ) | (2,662 | ) | (21,138 | ) | (5,595 | ) | ||||||||
| Other |
50 | 248 | 1,212 | 2,121 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash provided by (used in) financing activities |
(41,920 | ) | 63,935 | (849,321 | ) | 140,736 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Change in cash and cash equivalents |
23,011 | (3,632 | ) | (44,652 | ) | 9,444 | ||||||||||
| Cash and cash equivalents at beginning of period |
96,525 | 49,048 | 164,188 | 35,972 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Cash and cash equivalents at end of period |
$ | 119,536 | $ | 45,416 | $ | 119,536 | $ | 45,416 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
– MORE –
Kindred Healthcare Announces Second Quarter 2015 Results
Page 7
August 5, 2015
KINDRED HEALTHCARE, INC.
Condensed Consolidated and Business Segment Data (a)
(Unaudited)
(In thousands, except per share amounts)
| Second quarter % change v. prior year |
||||||||||||||||||||||||||||
| 2014 Quarters | 2015 Quarters | |||||||||||||||||||||||||||
| First | Second | Third | Fourth | First | Second | |||||||||||||||||||||||
| Consolidated income statement data: |
||||||||||||||||||||||||||||
| Revenues |
$ | 1,272,610 | $ | 1,261,397 | $ | 1,228,918 | $ | 1,264,674 | $ | 1,675,967 | $ | 1,833,475 | 45.4 | |||||||||||||||
| Core EBITDAR |
$ | 181,044 | $ | 175,865 | $ | 157,218 | $ | 170,088 | $ | 234,211 | $ | 261,800 | 48.9 | |||||||||||||||
| Rent |
78,530 | 77,452 | 77,643 | 79,167 | 91,199 | 95,528 | 23.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Core EBITDA |
102,514 | 98,413 | 79,575 | 90,921 | 143,012 | 166,272 | 69.0 | |||||||||||||||||||||
| Depreciation and amortization |
39,092 | 39,172 | 38,748 | 38,558 | 38,935 | 38,625 | (1.4 | ) | ||||||||||||||||||||
| Interest, net |
25,617 | 21,438 | 22,171 | 21,857 | 44,346 | 56,140 | 161.9 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Income from continuing operations before income taxes |
37,805 | 37,803 | 18,656 | 30,506 | 59,731 | 71,507 | 89.2 | |||||||||||||||||||||
| Provision for income taxes |
14,445 | 13,612 | 6,168 | 8,471 | 22,466 | 25,721 | 89.0 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Income from continuing operations |
23,360 | 24,191 | 12,488 | 22,035 | 37,265 | 45,786 | 89.3 | |||||||||||||||||||||
| Noncontrolling interests |
(4,529 | ) | (4,828 | ) | (4,372 | ) | (5,143 | ) | (8,847 | ) | (11,735 | ) | 143.1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net income attributable to Kindred |
$ | 18,831 | $ | 19,363 | $ | 8,116 | $ | 16,892 | $ | 28,418 | $ | 34,051 | 75.9 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Core EPS |
$ | 0.35 | $ | 0.35 | $ | 0.13 | $ | 0.26 | $ | 0.34 | $ | 0.39 | 11.4 | |||||||||||||||
| Adjusted Core EPS |
$ | 0.46 | $ | 0.50 | $ | 0.20 | $ | 0.38 | $ | 0.43 | $ | 0.51 | 2.0 | |||||||||||||||
| Diluted shares |
52,711 | 53,792 | 62,902 | 63,163 | 82,422 | 86,402 | 60.6 | |||||||||||||||||||||
| Revenues by segment: |
||||||||||||||||||||||||||||
| Hospital division |
$ | 627,245 | $ | 612,517 | $ | 591,121 | $ | 619,185 | $ | 640,483 | $ | 627,206 | 2.4 | |||||||||||||||
| Kindred at Home: |
||||||||||||||||||||||||||||
| Home health |
74,791 | 75,502 | 74,026 | 74,588 | 300,867 | 427,820 | 466.6 | |||||||||||||||||||||
| Hospice |
12,913 | 12,484 | 12,160 | 12,538 | 119,057 | 178,005 | 1,325.9 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 87,704 | 87,986 | 86,186 | 87,126 | 419,924 | 605,825 | 588.5 | ||||||||||||||||||||||
| Kindred Rehabilitation Services: |
||||||||||||||||||||||||||||
| Kindred Hospital Rehabilitation Services |
93,177 | 94,963 | 93,139 | 92,922 | 151,564 | 152,544 | 60.6 | |||||||||||||||||||||
| RehabCare |
253,943 | 253,694 | 246,732 | 252,667 | 252,595 | 236,791 | (6.7 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 347,120 | 348,657 | 339,871 | 345,589 | 404,159 | 389,335 | 11.7 | ||||||||||||||||||||||
| Nursing center division |
262,590 | 264,437 | 263,897 | 271,625 | 274,308 | 273,870 | 3.6 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 1,324,659 | 1,313,597 | 1,281,075 | 1,323,525 | 1,738,874 | 1,896,236 | 44.4 | ||||||||||||||||||||||
| Eliminations |
(52,049 | ) | (52,200 | ) | (52,157 | ) | (58,851 | ) | (62,907 | ) | (62,761 | ) | 20.2 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 1,272,610 | $ | 1,261,397 | $ | 1,228,918 | $ | 1,264,674 | $ | 1,675,967 | $ | 1,833,475 | 45.4 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Core EBITDAR by segment: |
||||||||||||||||||||||||||||
| Hospital division |
$ | 139,505 | $ | 131,990 | $ | 117,604 | $ | 134,791 | $ | 134,786 | $ | 131,532 | (0.3 | ) | ||||||||||||||
| Kindred at Home: |
||||||||||||||||||||||||||||
| Home health |
2,845 | 5,769 | 5,961 | 7,398 | 46,798 | 72,917 | 1,163.9 | |||||||||||||||||||||
| Hospice |
1,852 | 2,139 | 1,149 | 524 | 16,996 | 27,887 | 1,203.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 4,697 | 7,908 | 7,110 | 7,922 | 63,794 | 100,804 | 1,174.7 | ||||||||||||||||||||||
| Kindred Rehabilitation Services: |
||||||||||||||||||||||||||||
| Kindred Hospital Rehabilitation Services |
25,710 | 25,742 | 24,887 | 23,884 | 44,564 | 44,531 | 73.0 | |||||||||||||||||||||
| RehabCare |
18,016 | 19,863 | 17,080 | 16,029 | 16,493 | 14,681 | (26.1 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 43,726 | 45,605 | 41,967 | 39,913 | 61,057 | 59,212 | 29.8 | ||||||||||||||||||||||
| Nursing center division |
37,572 | 38,614 | 35,920 | 38,810 | 36,963 | 40,461 | 4.8 | |||||||||||||||||||||
| Support center |
(44,456 | ) | (48,252 | ) | (45,383 | ) | (51,348 | ) | (62,389 | ) | (70,209 | ) | 45.5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 181,044 | $ | 175,865 | $ | 157,218 | $ | 170,088 | $ | 234,211 | $ | 261,800 | 48.9 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Core EBITDAR margin by segment: |
||||||||||||||||||||||||||||
| Hospital division |
22.2 | 21.5 | 19.9 | 21.8 | 21.0 | 21.0 | (2.3 | ) | ||||||||||||||||||||
| Kindred at Home: |
||||||||||||||||||||||||||||
| Home health |
3.8 | 7.6 | 8.1 | 9.9 | 15.6 | 17.0 | 123.7 | |||||||||||||||||||||
| Hospice |
14.3 | 17.1 | 9.4 | 4.2 | 14.3 | 15.7 | (8.2 | ) | ||||||||||||||||||||
| Kindred at Home |
5.4 | 9.0 | 8.2 | 9.1 | 15.2 | 16.6 | 84.4 | |||||||||||||||||||||
| Kindred Rehabilitation Services: |
||||||||||||||||||||||||||||
| Kindred Hospital Rehabilitation Services |
27.6 | 27.1 | 26.7 | 25.7 | 29.4 | 29.2 | 7.7 | |||||||||||||||||||||
| RehabCare |
7.1 | 7.8 | 6.9 | 6.3 | 6.5 | 6.2 | (20.5 | ) | ||||||||||||||||||||
| Kindred Rehabilitation Services |
12.6 | 13.1 | 12.3 | 11.5 | 15.1 | 15.2 | 16.0 | |||||||||||||||||||||
| Nursing center division |
14.3 | 14.6 | 13.6 | 14.3 | 13.5 | 14.8 | 1.4 | |||||||||||||||||||||
| Consolidated |
14.2 | 13.9 | 12.8 | 13.4 | 14.0 | 14.3 | 2.9 | |||||||||||||||||||||
| (a) | See reconciliation of core and adjusted results to GAAP results beginning on page 11. |
– MORE –
Kindred Healthcare Announces Second Quarter 2015 Results
Page 8
August 5, 2015
KINDRED HEALTHCARE, INC.
Condensed Consolidated and Business Segment Data (Continued)
(Unaudited)
| Second quarter % change v. prior year |
||||||||||||||||||||||||||||
| 2014 Quarters | 2015 Quarters | |||||||||||||||||||||||||||
| First | Second | Third | Fourth | First | Second | |||||||||||||||||||||||
| Hospital division: |
||||||||||||||||||||||||||||
| End of period data: |
||||||||||||||||||||||||||||
| Number of transitional care hospitals |
97 | 97 | 97 | 97 | 97 | 96 | ||||||||||||||||||||||
| Number of licensed beds |
7,145 | 7,145 | 7,145 | 7,147 | 7,147 | 7,124 | ||||||||||||||||||||||
| Revenue mix %: |
||||||||||||||||||||||||||||
| Medicare |
59.8 | 58.2 | 57.0 | 57.0 | 56.8 | 55.2 | ||||||||||||||||||||||
| Medicaid |
6.6 | 6.8 | 6.9 | 6.0 | 5.5 | 5.3 | ||||||||||||||||||||||
| Medicare Advantage |
11.4 | 11.2 | 10.5 | 10.5 | 11.9 | 11.6 | ||||||||||||||||||||||
| Medicaid Managed |
2.4 | 3.0 | 3.8 | 4.5 | 4.7 | 5.6 | ||||||||||||||||||||||
| Commercial insurance and other |
19.8 | 20.8 | 21.8 | 22.0 | 21.1 | 22.3 | ||||||||||||||||||||||
| Admissions: |
||||||||||||||||||||||||||||
| Medicare |
9,038 | 8,555 | 8,460 | 8,525 | 8,775 | 8,267 | (3.4 | ) | ||||||||||||||||||||
| Medicaid |
819 | 896 | 805 | 750 | 610 | 610 | (31.9 | ) | ||||||||||||||||||||
| Medicare Advantage |
1,435 | 1,389 | 1,250 | 1,359 | 1,555 | 1,352 | (2.7 | ) | ||||||||||||||||||||
| Medicaid Managed |
317 | 381 | 511 | 572 | 643 | 675 | 77.2 | |||||||||||||||||||||
| Commercial insurance and other |
1,914 | 1,885 | 1,703 | 1,696 | 1,868 | 1,815 | (3.7 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 13,523 | 13,106 | 12,729 | 12,902 | 13,451 | 12,719 | (3.0 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Patient days: |
||||||||||||||||||||||||||||
| Medicare |
230,350 | 220,035 | 213,170 | 220,548 | 228,483 | 218,577 | (0.7 | ) | ||||||||||||||||||||
| Medicaid |
32,712 | 32,619 | 30,480 | 30,454 | 28,663 | 25,213 | (22.7 | ) | ||||||||||||||||||||
| Medicare Advantage |
44,025 | 43,027 | 39,938 | 41,260 | 48,448 | 44,740 | 4.0 | |||||||||||||||||||||
| Medicaid Managed |
10,733 | 13,191 | 16,556 | 20,000 | 22,013 | 24,833 | 88.3 | |||||||||||||||||||||
| Commercial insurance and other |
59,567 | 59,293 | 57,486 | 59,295 | 62,241 | 62,922 | 6.1 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 377,387 | 368,165 | 357,630 | 371,557 | 389,848 | 376,285 | 2.2 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Average length of stay: |
||||||||||||||||||||||||||||
| Medicare |
25.5 | 25.7 | 25.2 | 25.9 | 26.0 | 26.4 | 2.7 | |||||||||||||||||||||
| Medicaid |
39.9 | 36.4 | 37.9 | 40.6 | 47.0 | 41.3 | 13.5 | |||||||||||||||||||||
| Medicare Advantage |
30.7 | 31.0 | 32.0 | 30.4 | 31.2 | 33.1 | 6.8 | |||||||||||||||||||||
| Medicaid Managed |
33.9 | 34.6 | 32.4 | 35.0 | 34.2 | 36.8 | 6.4 | |||||||||||||||||||||
| Commercial insurance and other |
31.1 | 31.5 | 33.8 | 35.0 | 33.3 | 34.7 | 10.2 | |||||||||||||||||||||
| Weighted average |
27.9 | 28.1 | 28.1 | 28.8 | 29.0 | 29.6 | 5.3 | |||||||||||||||||||||
| Revenues per admission: |
||||||||||||||||||||||||||||
| Medicare |
$ | 41,492 | $ | 41,670 | $ | 39,828 | $ | 41,425 | $ | 41,483 | $ | 41,892 | 0.5 | |||||||||||||||
| Medicaid |
50,894 | 46,106 | 50,344 | 49,760 | 57,594 | 54,795 | 18.8 | |||||||||||||||||||||
| Medicare Advantage |
49,666 | 49,352 | 49,814 | 47,756 | 48,908 | 53,578 | 8.6 | |||||||||||||||||||||
| Medicaid Managed |
47,803 | 48,814 | 44,321 | 48,691 | 46,740 | 51,950 | 6.4 | |||||||||||||||||||||
| Commercial insurance and other |
64,858 | 67,679 | 75,591 | 80,167 | 72,395 | 77,110 | 13.9 | |||||||||||||||||||||
| Weighted average |
46,384 | 46,736 | 46,439 | 47,991 | 47,616 | 49,312 | 5.5 | |||||||||||||||||||||
| Revenues per patient day: |
||||||||||||||||||||||||||||
| Medicare |
$ | 1,628 | $ | 1,620 | $ | 1,581 | $ | 1,601 | $ | 1,593 | $ | 1,584 | (2.2 | ) | ||||||||||||||
| Medicaid |
1,274 | 1,266 | 1,330 | 1,225 | 1,226 | 1,326 | 4.7 | |||||||||||||||||||||
| Medicare Advantage |
1,619 | 1,593 | 1,559 | 1,573 | 1,570 | 1,619 | 1.6 | |||||||||||||||||||||
| Medicaid Managed |
1,412 | 1,410 | 1,368 | 1,393 | 1,365 | 1,412 | 0.1 | |||||||||||||||||||||
| Commercial insurance and other |
2,084 | 2,152 | 2,239 | 2,293 | 2,173 | 2,224 | 3.3 | |||||||||||||||||||||
| Weighted average |
1,662 | 1,664 | 1,653 | 1,666 | 1,643 | 1,667 | 0.2 | |||||||||||||||||||||
| Medicare case mix index (discharged patients only) |
1.173 | 1.182 | 1.157 | 1.139 | 1.166 | 1.163 | (1.6 | ) | ||||||||||||||||||||
| Average daily census |
4,193 | 4,046 | 3,887 | 4,039 | 4,332 | 4,135 | 2.2 | |||||||||||||||||||||
| Occupancy % |
67.3 | 64.6 | 62.1 | 64.5 | 69.2 | 66.1 | 2.3 | |||||||||||||||||||||
– MORE –
Kindred Healthcare Announces Second Quarter 2015 Results
Page 9
August 5, 2015
KINDRED HEALTHCARE, INC.
Condensed Consolidated and Business Segment Data (Continued)
(Unaudited)
| Second quarter % change v. prior year |
||||||||||||||||||||||||||||
| 2014 Quarters | 2015 Quarters | |||||||||||||||||||||||||||
| First | Second | Third | Fourth | First | Second | |||||||||||||||||||||||
| Kindred at Home (data combined to include Kindred and Gentiva for each historical period): |
||||||||||||||||||||||||||||
| Home Health: |
||||||||||||||||||||||||||||
| Sites of service (at end of period) |
447 | 440 | 439 | 427 | 415 | 411 | ||||||||||||||||||||||
| Revenue mix %: |
||||||||||||||||||||||||||||
| Medicare |
81.8 | 81.5 | 80.7 | 80.7 | 80.9 | 80.4 | ||||||||||||||||||||||
| Medicaid |
2.7 | 2.6 | 2.4 | 2.2 | 2.1 | 2.1 | ||||||||||||||||||||||
| Commercial and other |
9.1 | 9.0 | 8.9 | 6.7 | 7.3 | 7.9 | ||||||||||||||||||||||
| Commercial paid at episodic rates |
6.4 | 6.9 | 8.0 | 10.4 | 9.7 | 9.6 | ||||||||||||||||||||||
| Episodic revenues ($ 000s) |
$ | 281,226 | $ | 294,208 | $ | 292,675 | $ | 305,668 | $ | 308,317 | $ | 324,027 | 10.1 | |||||||||||||||
| Total episodic admissions |
65,077 | 63,676 | 65,049 | 65,183 | 69,936 | 67,808 | 6.5 | |||||||||||||||||||||
| Medicare episodic admissions |
59,248 | 58,140 | 57,921 | 57,372 | 61,186 | 59,394 | 2.2 | |||||||||||||||||||||
| Total episodes |
103,758 | 103,689 | 105,906 | 106,708 | 110,980 | 109,599 | 5.7 | |||||||||||||||||||||
| Episodes per admission |
1.59 | 1.63 | 1.63 | 1.64 | 1.59 | 1.62 | (0.6 | ) | ||||||||||||||||||||
| Revenue per episode |
$ | 2,710 | $ | 2,837 | $ | 2,764 | $ | 2,865 | $ | 2,778 | $ | 2,956 | 4.2 | |||||||||||||||
| Hospice: |
||||||||||||||||||||||||||||
| Sites of service (at end of period) |
216 | 200 | 199 | 193 | 190 | 185 | ||||||||||||||||||||||
| Admissions |
13,807 | 12,751 | 12,088 | 12,151 | 13,164 | 12,574 | (1.4 | ) | ||||||||||||||||||||
| Average length of stay |
103 | 106 | 103 | 103 | 95 | 93 | (12.3 | ) | ||||||||||||||||||||
| Patient days |
1,252,787 | 1,251,301 | 1,236,792 | 1,215,209 | 1,150,841 | 1,190,604 | (4.9 | ) | ||||||||||||||||||||
| Revenue per patient day |
$ | 150 | $ | 148 | $ | 149 | $ | 154 | $ | 151 | $ | 150 | 1.4 | |||||||||||||||
| Average daily census |
13,920 | 13,751 | 13,443 | 13,209 | 12,787 | 13,084 | (4.9 | ) | ||||||||||||||||||||
| Community Care and other revenues (included in Home Health business segment) |
$ | 66,732 | $ | 66,372 | $ | 67,390 | $ | 67,621 | $ | 65,530 | $ | 67,647 | 1.9 | |||||||||||||||
| Kindred Rehabilitation Services: |
||||||||||||||||||||||||||||
| Kindred Hospital Rehabilitation Services: |
||||||||||||||||||||||||||||
| Freestanding IRFs: |
||||||||||||||||||||||||||||
| End of period data: |
||||||||||||||||||||||||||||
| Number of IRFs |
5 | 5 | 5 | 5 | 16 | 16 | ||||||||||||||||||||||
| Number of licensed beds |
215 | 215 | 215 | 215 | 829 | 829 | ||||||||||||||||||||||
| Discharges (a) |
1,053 | 1,121 | 1,004 | 1,046 | 3,806 | 3,927 | 250.3 | |||||||||||||||||||||
| Occupancy % (a) |
71.6 | 71.6 | 68.5 | 69.6 | 73.2 | 71.5 | (0.1 | ) | ||||||||||||||||||||
| Average length of stay (a) |
13.2 | 12.5 | 13.5 | 13.2 | 13.7 | 13.1 | 4.8 | |||||||||||||||||||||
| Revenue per discharge (a) |
$ | 18,246 | $ | 17,519 | $ | 18,259 | $ | 17,039 | $ | 19,517 | $ | 19,325 | 10.3 | |||||||||||||||
| Contract services: |
||||||||||||||||||||||||||||
| Sites of service (at end of period): |
||||||||||||||||||||||||||||
| Inpatient rehabilitation units |
105 | 104 | 102 | 100 | 100 | 99 | ||||||||||||||||||||||
| LTAC hospitals |
121 | 118 | 117 | 117 | 120 | 120 | ||||||||||||||||||||||
| Sub-acute units |
10 | 9 | 10 | 10 | 8 | 8 | ||||||||||||||||||||||
| Outpatient units |
143 | 143 | 139 | 138 | 138 | 139 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 379 | 374 | 368 | 365 | 366 | 366 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Revenue per site |
$ | 195,157 | $ | 201,400 | $ | 203,284 | $ | 205,749 | $ | 211,151 | $ | 209,436 | 4.0 | |||||||||||||||
| RehabCare: |
||||||||||||||||||||||||||||
| Sites of service (at end of period) |
1,851 | 1,863 | 1,896 | 1,935 | 1,829 | 1,789 | ||||||||||||||||||||||
| Revenue per site |
$ | 137,193 | $ | 136,175 | $ | 130,133 | $ | 130,576 | $ | 138,106 | $ | 132,359 | (2.8 | ) | ||||||||||||||
| Nursing center division: |
||||||||||||||||||||||||||||
| End of period data: |
||||||||||||||||||||||||||||
| Number of nursing centers |
89 | 89 | 90 | 90 | 90 | 90 | ||||||||||||||||||||||
| Number of licensed beds |
11,503 | 11,491 | 11,575 | 11,535 | 11,535 | 11,535 | ||||||||||||||||||||||
| Admissions (b) |
9,789 | 9,621 | 9,746 | 9,616 | 10,376 | 9,831 | 2.2 | |||||||||||||||||||||
| Medicare average length of stay (b) |
29.6 | 29.8 | 29.9 | 29.0 | 28.9 | 28.9 | (3.0 | ) | ||||||||||||||||||||
| Patient days (b) |
861,340 | 858,772 | 865,415 | 871,976 | 861,278 | 852,691 | (0.7 | ) | ||||||||||||||||||||
| Revenues per patient day (b) |
$ | 305 | $ | 308 | $ | 305 | $ | 312 | $ | 319 | $ | 321 | 4.2 | |||||||||||||||
| Average daily census (b) |
9,570 | 9,437 | 9,407 | 9,478 | 9,570 | 9,370 | (0.7 | ) | ||||||||||||||||||||
| Occupancy % (b) |
81.7 | 80.7 | 80.1 | 80.5 | 81.3 | 79.6 | (1.4 | ) | ||||||||||||||||||||
| (a) | Excludes non-consolidating IRF. |
| (b) | Excludes managed facilities. |
– MORE –
Kindred Healthcare Announces Second Quarter 2015 Results
Page 10
August 5, 2015
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements regarding the Company’s acquisitions of Gentiva and Centerre (including the benefits, results and effects of such acquisitions), all statements regarding the Company’s expected future financial position, results of operations, cash flows, dividends, financing plans, business strategy, budgets, capital expenditures, competitive positions, growth opportunities, plans and objectives of management, and statements containing the words such as “anticipate,” “approximate,” “believe,” “plan,” “estimate,” “expect,” “project,” “could,” “would,” “should,” “will,” “intend,” “may,” “potential,” “upside,” and other similar expressions. Statements in this press release concerning the Company’s business outlook or future economic performance, anticipated profitability, revenues, expenses, dividends or other financial items, and product or services line growth, together with other statements that are not historical facts, are forward-looking statements that are estimates reflecting the best judgment of the Company based upon currently available information.
Such forward-looking statements are inherently uncertain, and stockholders and other potential investors must recognize that actual results may differ materially from the Company’s expectations as a result of a variety of factors, including, without limitation, those discussed below. Such forward-looking statements are based upon management’s current expectations and include known and unknown risks, uncertainties and other factors, many of which the Company is unable to predict or control, that may cause the Company’s actual results, performance or plans to differ materially from any future results, performance or plans expressed or implied by such forward-looking statements. These statements involve risks, uncertainties and other factors discussed below and detailed from time to time in the Company’s filings with the Securities and Exchange Commission.
Risks and uncertainties related to the Company’s acquisitions of Gentiva and Centerre include, but are not limited to, uncertainties as to whether the acquisitions will have the accretive effect on the Company’s earnings or cash flows that it expects, the inability to obtain, or delays in obtaining, cost savings and synergies from the acquisitions, costs and difficulties related to the integration of Gentiva’s and Centerre’s businesses and operations with the Company’s businesses and operations, unexpected costs, liabilities, charges or expenses resulting from the acquisitions, adverse effects on the Company’s stock price resulting from the acquisitions, the inability to retain key personnel, and potential adverse reactions, changes to business relationships or competitive responses resulting from the acquisitions.
In addition to the factors set forth above, other factors that may affect the Company’s plans, results or stock price are set forth in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Many of these factors are beyond the Company’s control. The Company cautions investors that any forward-looking statements made by the Company are not guarantees of future performance. The Company 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.
– MORE –
Kindred Healthcare Announces Second Quarter 2015 Results
Page 11
August 5, 2015
Non-GAAP Measurements
In addition to the results provided in accordance with GAAP, the Company has provided information in this release to compute certain non-GAAP measurements for the two quarters in 2015, four quarters in 2014 and six months ended June 30, 2015 and 2014 before certain charges or on a core and adjusted core basis. The use of these non-GAAP measures are not intended to replace the presentation of the Company’s financial results in accordance with GAAP. The Company believes that the presentation of core operating results provides additional information to investors to facilitate the comparison between periods by excluding certain charges that are not representative of its ongoing operations due to the materiality and nature of the charges. The Company believes the presentation of adjusted core operating results, which excludes non-cash expenses related to amortization of intangible assets, stock-based compensation and deferred financing costs from core operating results, is a useful performance measure used by some investors, equity analysts and others to make informed investment decisions and for comparability to other companies that use similar measures. The Company’s earnings release also includes financial measures referred to as operating income, or EBITDAR or core EBITDAR, and earnings before interest, income taxes, depreciation and amortization (“EBITDA”). The Company’s management uses core EBITDAR or core EBITDA as meaningful measures of operational performance in addition to other measures. The Company uses core EBITDAR or core EBITDA to assess the relative performance of its operating divisions as well as the employees that operate these businesses. In addition, the Company believes these measurements are important because securities analysts and investors use these measurements to compare the Company’s performance to other companies in the healthcare industry. The Company believes that income (loss) from continuing operations is the most comparable GAAP measure. Readers of the Company’s financial information should consider income (loss) from continuing operations as an important measure of the Company’s financial performance because it provides the most complete measure of its performance. Operating results presented on a core and adjusted core basis and core EBITDAR or core EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures based upon GAAP as an indicator of operating performance. Reconciliations of the non-GAAP measurements to the GAAP measurements are included in the following pages of this press release.
Also in this press release, the Company provides the financial measures of operating cash flows and free cash flows excluding certain items, which the Company refers to as core operating cash flows and core free cash flows. The Company recognizes that operating cash flows and free cash flows excluding certain items are non-GAAP measurements and are not intended to replace the presentation of the Company’s cash flows in accordance with GAAP. The Company believes that these non-GAAP measurements provide important information to investors for comparability to other companies that use similar measures. In addition, management uses operating cash flows and free cash flows excluding certain items in making decisions related to acquisitions, development capital expenditures, dividends, long-term debt repayments and other uses. The Company believes net cash flows provided by operating activities is the most comparable GAAP measure. Readers of the Company’s financial information should consider net cash flows provided by operating activities as an important measure of the Company’s financial performance because it provides the most complete measure of its performance. Operating cash flows and free cash flows excluding certain items should be considered in addition to, not as a substitute for, or superior to, financial measures based upon GAAP as an indicator of operating performance. Reconciliations of net cash flows provided by operating activities to operating cash flows and free cash flows excluding certain items are included in this press release.
– MORE –
Kindred Healthcare Announces Second Quarter 2015 Results
Page 12
August 5, 2015
KINDRED HEALTHCARE, INC.
Reconciliation of Non-GAAP Measurements to GAAP Results
(Unaudited)
(In thousands, except per share amounts and statistics)
In addition to the results provided in accordance with GAAP, the Company has provided information in this release to compute certain non-GAAP measurements for the three months and six months ended June 30, 2015 and 2014 before certain charges or on a core basis. The charges that were excluded from core operating results are denoted in the tables below.
The income tax benefit associated with the excluded charges was calculated using an effective income tax rate of 9.9% and 37.1% for the three months ended June 30, 2015 and 2014, respectively, and 21.9% and 37.1% for the six months ended June 30, 2015 and 2014, respectively. The difference in the effective income tax rate for both periods compared to the same prior year periods is attributable to the composition of charges that are non-deductible or the deductibility is uncertain for income tax purposes, including the litigation contingency expense.
The use of these non-GAAP measures are not intended to replace the presentation of the Company’s financial results in accordance with GAAP. The Company believes that the presentation of core operating results provides additional information to investors to facilitate the comparison between periods by excluding certain charges for the three months and six months ended June 30, 2015 and 2014 that are not representative of its ongoing operations due to the materiality and the nature of the charges. The Company’s core operating results also represent a key performance measure for the purpose of evaluating performance internally. The Company believes the presentation of adjusted core operating results, which excludes non-cash expenses related to amortization of intangible assets, stock-based compensation and deferred financing costs from core operating results, is a performance measure used by some investors, equity analysts and others to make informed investment decisions and for comparability to other companies that use similar measures.
| Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Detail of charges: |
||||||||||||||||
| Litigation contingency expense |
($ | 3,925 | ) | ($ | 4,600 | ) | ($ | 98,925 | ) | ($ | 4,600 | ) | ||||
| Retirement and severance costs |
— | (4,950 | ) | (4,961 | ) | (4,950 | ) | |||||||||
| Hospital and home health/hospice closings |
(2,802 | ) | — | (4,421 | ) | — | ||||||||||
| Development project cancellation and other restructuring costs |
(584 | ) | — | (1,259 | ) | — | ||||||||||
| Gentiva transaction and integration costs: |
||||||||||||||||
| Professional and consulting fees |
(1,931 | ) | (2,079 | ) | (34,065 | ) | (2,079 | ) | ||||||||
| Severance and retention |
(2,411 | ) | — | (56,875 | ) | — | ||||||||||
| Lease termination (charged to rent expense) |
(203 | ) | — | (792 | ) | — | ||||||||||
| Pre-closing financing charges (charged to general and administrative expenses) |
— | — | (6,005 | ) | — | |||||||||||
| Pre-closing financing charges (charged to interest expense) |
— | — | (17,431 | ) | — | |||||||||||
| Trade name impairment charges |
— | — | (6,726 | ) | — | |||||||||||
| Lease termination (charged to rent expense) |
(671 | ) | (247 | ) | (1,023 | ) | (247 | ) | ||||||||
| Debt refinancing costs (charged to interest expense) |
— | (56,643 | ) | — | (56,643 | ) | ||||||||||
| Other transaction costs |
(874 | ) | (2,417 | ) | (2,973 | ) | (3,100 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (13,401 | ) | (70,936 | ) | (235,456 | ) | (71,619 | ) | |||||||||
| Income tax benefit |
1,325 | 26,295 | 51,527 | 26,545 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Charges net of income taxes |
(12,076 | ) | (44,641 | ) | (183,929 | ) | (45,074 | ) | ||||||||
| Allocation to participating unvested restricted stockholders |
211 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Available to common stockholders |
($ | 11,865 | ) | ($ | 44,641 | ) | ($ | 183,929 | ) | ($ | 45,074 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average diluted shares outstanding |
86,402 | 53,714 | 82,828 | 53,180 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted loss per common share related to charges |
($ | 0.14 | ) | ($ | 0.83 | ) | ($ | 2.22 | ) | ($ | 0.85 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Reconciliation of income from continuing operations before charges: |
||||||||||||||||
| Amounts attributable to Kindred stockholders: |
||||||||||||||||
| Income from continuing operations before charges |
$ | 34,051 | $ | 19,363 | $ | 62,469 | $ | 38,194 | ||||||||
| Charges net of income taxes |
(12,076 | ) | (44,641 | ) | (183,929 | ) | (45,074 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Reported income (loss) from continuing operations |
$ | 21,975 | ($ | 25,278 | ) | ($ | 121,460 | ) | ($ | 6,880 | ) | |||||
|
|
|
|
|
|
|
|
|
|||||||||
| Reconciliation of diluted earnings per common share from continuing operations before charges: |
||||||||||||||||
| Diluted earnings per common share before charges (a) |
$ | 0.39 | $ | 0.35 | $ | 0.73 | $ | 0.70 | ||||||||
| Charges net of income taxes |
(0.14 | ) | (0.83 | ) | (2.22 | ) | (0.85 | ) | ||||||||
| Other |
— | 0.01 | 0.02 | 0.02 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Reported diluted earnings (loss) per common share from continuing operations |
$ | 0.25 | ($ | 0.47 | ) | ($ | 1.47 | ) | ($ | 0.13 | ) | |||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average diluted shares used to compute earnings per common share from continuing operations before charges |
86,402 | 53,792 | 84,560 | 53,255 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Reconciliation of effective income tax rate before charges: |
||||||||||||||||
| Effective income tax rate before charges |
36.0 | % | 36.0 | % | 36.7 | % | 37.1 | % | ||||||||
| Impact of charges on effective income tax rate |
6.0 | % | 2.3 | % | -33.5 | % | 0.8 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Reported effective income tax rate |
42.0 | % | 38.3 | % | 3.2 | % | 37.9 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (a) | For purposes of computing diluted earnings per common share before charges, income from continuing operations before charges was reduced by $0.6 million for both the three months ended June 30, 2015 and 2014, and by $1.1 million and $1.2 million for the six months ended June 30, 2015 and 2014, respectively, for the allocation of income to participating unvested restricted stockholders. |
– MORE –
Kindred Healthcare Announces Second Quarter 2015 Results
Page 13
August 5, 2015
A reconciliation of adjusted core earnings follows:
| 2014 Quarters | 2015 Quarters | |||||||||||||||||||||||
| First | Second | Third | Fourth | First | Second | |||||||||||||||||||
| Reconciliation of adjusted core earnings: |
||||||||||||||||||||||||
| Income from continuing operations before charges (as calculated and reconciled to GAAP measurement on the following pages) |
$ | 18,831 | $ | 19,363 | $ | 8,116 | $ | 16,892 | $ | 28,418 | $ | 34,051 | ||||||||||||
| Add back non-cash expenses: |
||||||||||||||||||||||||
| Amortization of intangible assets |
5,560 | 5,513 | 5,378 | 5,215 | 6,932 | 7,536 | ||||||||||||||||||
| Amortization of stock-based compensation costs |
2,585 | 5,924 | 748 | 5,073 | 3,141 | 6,687 | ||||||||||||||||||
| Amortization of deferred financing costs |
2,397 | 1,950 | 1,982 | 2,044 | 3,062 | 3,539 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| 10,542 | 13,387 | 8,108 | 12,332 | 13,135 | 17,762 | |||||||||||||||||||
| Income tax benefit related to non-cash expenses |
4,148 | 5,268 | 3,190 | 4,853 | 5,169 | 6,989 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Non-cash expenses, net of income taxes |
6,394 | 8,119 | 4,918 | 7,479 | 7,966 | 10,773 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Adjusted core earnings |
$ | 25,225 | $ | 27,482 | $ | 13,034 | $ | 24,371 | $ | 36,384 | $ | 44,824 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Reconciliation of diluted adjusted core earnings from continuing operations: |
||||||||||||||||||||||||
| Diluted income per common share before charges (as calculated on the following pages) |
$ | 0.35 | $ | 0.35 | $ | 0.13 | $ | 0.26 | $ | 0.34 | $ | 0.39 | ||||||||||||
| Non-cash expenses, net of income taxes |
0.11 | 0.15 | 0.07 | 0.12 | 0.09 | 0.12 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Diluted adjusted core earnings per common share from continuing operations |
$ | 0.46 | $ | 0.50 | $ | 0.20 | $ | 0.38 | $ | 0.43 | $ | 0.51 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Weighted average diluted shares used to compute adjusted core earnings per common share |
52,711 | 53,792 | 62,902 | 63,163 | 82,422 | 86,402 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
A reconciliation of combined Kindred and Gentiva home health revenues (excluding community care) for each historical period follows:
| Second quarter % change v. prior year |
||||||||||||||||||||||||||||
| 2014 Quarters | 2015 Quarters | |||||||||||||||||||||||||||
| First | Second | Third | Fourth | First | Second | |||||||||||||||||||||||
| Kindred |
$ | 67,266 | $ | 67,830 | $ | 65,954 | $ | 66,491 | $ | 254,965 | $ | 360,173 | ||||||||||||||||
| Gentiva |
253,895 | 267,018 | 266,340 | 275,342 | 87,520 | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 321,161 | $ | 334,848 | $ | 332,294 | $ | 341,833 | $ | 342,485 | $ | 360,173 | 7.6 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
– MORE –
Kindred Healthcare Announces Second Quarter 2015 Results
Page 14
August 5, 2015
| Three months ended June 30, 2015 | ||||||||||||||||||||||||||||||||
| Charges | ||||||||||||||||||||||||||||||||
| Before charges |
Hospital and home health/hospice closings |
Development project cancellation and other |
Litigation contingency |
Gentiva transaction and integration |
Other transaction |
Total | As reported |
|||||||||||||||||||||||||
| Income from continuing operations: |
||||||||||||||||||||||||||||||||
| Operating income (loss) (EBITDAR): |
||||||||||||||||||||||||||||||||
| Hospital division |
$ | 131,532 | $ | (565 | ) | $ | — | $ | — | $ | — | $ | — | $ | (565 | ) | $ | 130,967 | ||||||||||||||
| Kindred at Home: |
||||||||||||||||||||||||||||||||
| Home health |
72,917 | (588 | ) | — | — | — | — | (588 | ) | 72,329 | ||||||||||||||||||||||
| Hospice |
27,887 | (1,649 | ) | — | — | — | — | (1,649 | ) | 26,238 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 100,804 | (2,237 | ) | — | — | — | — | (2,237 | ) | 98,567 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Kindred Rehabilitation Services: |
||||||||||||||||||||||||||||||||
| Kindred Hospital Rehabilitation Services |
44,531 | — | — | — | — | — | — | 44,531 | ||||||||||||||||||||||||
| RehabCare |
14,681 | — | — | — | — | — | — | 14,681 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 59,212 | — | — | — | — | — | — | 59,212 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Nursing center division |
40,461 | — | (584 | ) | — | — | — | (584 | ) | 39,877 | ||||||||||||||||||||||
| Support center |
(70,209 | ) | — | — | — | — | — | — | (70,209 | ) | ||||||||||||||||||||||
| Litigation contingency expense |
— | — | — | (3,925 | ) | — | — | (3,925 | ) | (3,925 | ) | |||||||||||||||||||||
| Transaction costs |
— | — | — | — | (4,342 | ) | (874 | ) | (5,216 | ) | (5,216 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating income (EBITDAR) |
261,800 | (2,802 | ) | (584 | ) | (3,925 | ) | (4,342 | ) | (874 | ) | (12,527 | ) | 249,273 | ||||||||||||||||||
| Rent |
(95,528 | ) | (671 | ) | — | — | (203 | ) | — | (874 | ) | (96,402 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EBITDA |
166,272 | (3,473 | ) | (584 | ) | (3,925 | ) | (4,545 | ) | (874 | ) | (13,401 | ) | 152,871 | ||||||||||||||||||
| Depreciation and amortization |
(38,625 | ) | — | — | — | — | — | — | (38,625 | ) | ||||||||||||||||||||||
| Interest, net |
(56,140 | ) | — | — | — | — | — | — | (56,140 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Income from continuing operations before income taxes |
71,507 | (3,473 | ) | (584 | ) | (3,925 | ) | (4,545 | ) | (874 | ) | (13,401 | ) | 58,106 | ||||||||||||||||||
| Provision for income taxes |
25,721 | (368 | ) | (62 | ) | (416 | ) | (386 | ) | (93 | ) | (1,325 | ) | 24,396 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 45,786 | $ | (3,105 | ) | $ | (522 | ) | $ | (3,509 | ) | $ | (4,159 | ) | $ | (781 | ) | $ | (12,076 | ) | 33,710 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Noncontrolling interests |
(11,735 | ) | (11,735 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||
| Net income attributable to Kindred |
$ | 34,051 | $ | 21,975 | ||||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||
| Diluted earnings per common share |
$ | 0.39 | $ | 0.25 | ||||||||||||||||||||||||||||
| Diluted shares used in computing earnings per common share |
86,402 | 86,402 | ||||||||||||||||||||||||||||||
| Three months ended June 30, 2014 | ||||||||||||||||||||||||||||||||
| Charges | ||||||||||||||||||||||||||||||||
| Before charges |
Severance and other restructuring |
Litigation contingency |
Debt refinancing |
Gentiva transaction |
Other transaction |
Total | As reported |
|||||||||||||||||||||||||
| Income (loss) from continuing operations: |
||||||||||||||||||||||||||||||||
| Operating income (loss) (EBITDAR): |
||||||||||||||||||||||||||||||||
| Hospital division |
$ | 131,990 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 131,990 | ||||||||||||||||
| Kindred at Home: |
||||||||||||||||||||||||||||||||
| Home health |
5,769 | (721 | ) | — | — | — | — | (721 | ) | 5,048 | ||||||||||||||||||||||
| Hospice |
2,139 | (122 | ) | — | — | — | — | (122 | ) | 2,017 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 7,908 | (843 | ) | — | — | — | — | (843 | ) | 7,065 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Kindred Rehabilitation Services: |
||||||||||||||||||||||||||||||||
| Kindred Hospital Rehabilitation Services |
25,742 | (170 | ) | — | — | — | — | (170 | ) | 25,572 | ||||||||||||||||||||||
| RehabCare |
19,863 | (176 | ) | — | — | — | — | (176 | ) | 19,687 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 45,605 | (346 | ) | — | — | — | — | (346 | ) | 45,259 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Nursing center division |
38,614 | (3,205 | ) | — | — | — | — | (3,205 | ) | 35,409 | ||||||||||||||||||||||
| Support center |
(48,252 | ) | (556 | ) | — | — | — | — | (556 | ) | (48,808 | ) | ||||||||||||||||||||
| Litigation contingency expense |
— | — | (4,600 | ) | — | — | — | (4,600 | ) | (4,600 | ) | |||||||||||||||||||||
| Transaction costs |
— | — | — | — | (2,079 | ) | (2,417 | ) | (4,496 | ) | (4,496 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating income (EBITDAR) |
175,865 | (4,950 | ) | (4,600 | ) | — | (2,079 | ) | (2,417 | ) | (14,046 | ) | 161,819 | |||||||||||||||||||
| Rent |
(77,452 | ) | (247 | ) | — | — | — | — | (247 | ) | (77,699 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EBITDA |
98,413 | (5,197 | ) | (4,600 | ) | — | (2,079 | ) | (2,417 | ) | (14,293 | ) | 84,120 | |||||||||||||||||||
| Depreciation and amortization |
(39,172 | ) | — | — | — | — | — | — | (39,172 | ) | ||||||||||||||||||||||
| Interest, net |
(21,438 | ) | — | — | (56,643 | ) | — | — | (56,643 | ) | (78,081 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Income (loss) from continuing operations before income taxes |
37,803 | (5,197 | ) | (4,600 | ) | (56,643 | ) | (2,079 | ) | (2,417 | ) | (70,936 | ) | (33,133 | ) | |||||||||||||||||
| Provision (benefit) for income taxes |
13,612 | (1,985 | ) | (1,757 | ) | (21,639 | ) | — | (914 | ) | (26,295 | ) | (12,683 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 24,191 | $ | (3,212 | ) | $ | (2,843 | ) | $ | (35,004 | ) | $ | (2,079 | ) | $ | (1,503 | ) | $ | (44,641 | ) | (20,450 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Noncontrolling interests |
(4,828 | ) | (4,828 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||
| Net income (loss) attributable to Kindred |
$ | 19,363 | $ | (25,278 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||
| Diluted earnings (loss) per common share |
$ | 0.35 | $ | (0.47 | ) | |||||||||||||||||||||||||||
| Diluted shares used in computing earnings (loss) per common share |
53,792 | 53,714 | ||||||||||||||||||||||||||||||
– MORE –
Kindred Healthcare Announces Second Quarter 2015 Results
Page 15
August 5, 2015
| Six months ended June 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||
| Charges | ||||||||||||||||||||||||||||||||||||||||||||
| Before charges |
Retirement and severance |
Hospital and home health/hospice closings |
Development project cancellation and other |
Litigation contingency |
Impairment charges |
Gentiva pre-closing financing costs |
Gentiva transaction and integration |
Other transaction |
Total | As reported |
||||||||||||||||||||||||||||||||||
| Income (loss) from continuing operations: |
||||||||||||||||||||||||||||||||||||||||||||
| Operating income (loss) (EBITDAR): |
||||||||||||||||||||||||||||||||||||||||||||
| Hospital division |
$ | 266,318 | $ | — | $ | (565 | ) | $ | (675 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (1,240 | ) | $ | 265,078 | |||||||||||||||||||
| Kindred at Home: |
||||||||||||||||||||||||||||||||||||||||||||
| Home health |
119,715 | — | (1,690 | ) | — | — | — | — | — | — | (1,690 | ) | 118,025 | |||||||||||||||||||||||||||||||
| Hospice |
44,883 | — | (2,166 | ) | — | — | — | — | — | — | (2,166 | ) | 42,717 | |||||||||||||||||||||||||||||||
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 164,598 | — | (3,856 | ) | — | — | — | — | — | — | (3,856 | ) | 160,742 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Kindred Rehabilitation Services: |
||||||||||||||||||||||||||||||||||||||||||||
| Kindred Hospital Rehabilitation Services |
89,095 | — | — | — | — | — | — | — | — | — | 89,095 | |||||||||||||||||||||||||||||||||
| RehabCare |
31,174 | (785 | ) | — | — | — | — | — | — | — | (785 | ) | 30,389 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 120,269 | (785 | ) | — | — | — | — | — | — | — | (785 | ) | 119,484 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Nursing center division |
77,424 | — | — | (584 | ) | — | — | — | — | — | (584 | ) | 76,840 | |||||||||||||||||||||||||||||||
| Support center |
(132,598 | ) | (4,176 | ) | — | — | — | — | — | — | — | (4,176 | ) | (136,774 | ) | |||||||||||||||||||||||||||||
| Litigation contingency expense |
— | — | — | — | (98,925 | ) | — | — | — | — | (98,925 | ) | (98,925 | ) | ||||||||||||||||||||||||||||||
| Transaction costs |
— | — | — | — | — | — | (6,005 | ) | (90,940 | ) | (2,973 | ) | (99,918 | ) | (99,918 | ) | ||||||||||||||||||||||||||||
| Impairment charges |
— | — | — | — | — | (6,726 | ) | — | — | — | (6,726 | ) | (6,726 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Operating income (EBITDAR) |
496,011 | (4,961 | ) | (4,421 | ) | (1,259 | ) | (98,925 | ) | (6,726 | ) | (6,005 | ) | (90,940 | ) | (2,973 | ) | (216,210 | ) | 279,801 | ||||||||||||||||||||||||
| Rent |
(186,727 | ) | — | (671 | ) | (352 | ) | — | — | — | (792 | ) | — | (1,815 | ) | (188,542 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| EBITDA |
309,284 | (4,961 | ) | (5,092 | ) | (1,611 | ) | (98,925 | ) | (6,726 | ) | (6,005 | ) | (91,732 | ) | (2,973 | ) | (218,025 | ) | 91,259 | ||||||||||||||||||||||||
| Depreciation and amortization |
(77,560 | ) | — | — | — | — | — | — | — | — | — | (77,560 | ) | |||||||||||||||||||||||||||||||
| Interest, net |
(100,486 | ) | — | — | — | — | — | (17,431 | ) | — | — | (17,431 | ) | (117,917 | ) | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes |
131,238 | (4,961 | ) | (5,092 | ) | (1,611 | ) | (98,925 | ) | (6,726 | ) | (23,436 | ) | (91,732 | ) | (2,973 | ) | (235,456 | ) | (104,218 | ) | |||||||||||||||||||||||
| Provision (benefit) for income taxes |
48,187 | (1,977 | ) | (2,030 | ) | (642 | ) | (1,564 | ) | (2,681 | ) | (9,341 | ) | (32,107 | ) | (1,185 | ) | (51,527 | ) | (3,340 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 83,051 | $ | (2,984 | ) | $ | (3,062 | ) | $ | (969 | ) | $ | (97,361 | ) | $ | (4,045 | ) | $ | (14,095 | ) | $ | (59,625 | ) | $ | (1,788 | ) | $ | (183,929 | ) | (100,878 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| Noncontrolling interests |
(20,582 | ) | (20,582 | ) | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to Kindred |
$ | 62,469 | $ | (121,460 | ) | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Diluted earnings (loss) per common share |
$ | 0.73 | $ | (1.47 | ) | |||||||||||||||||||||||||||||||||||||||
| Diluted shares used in computing earnings (loss) per common share |
84,560 | 82,828 | ||||||||||||||||||||||||||||||||||||||||||
| Six months ended June 30, 2014 | ||||||||||||||||||||||||||||||||
| Charges | ||||||||||||||||||||||||||||||||
| Before charges |
Severance and other restructuring |
Litigation contingency |
Debt refinancing |
Gentiva transaction |
Other transaction |
Total | As reported |
|||||||||||||||||||||||||
| Income from continuing operations: |
||||||||||||||||||||||||||||||||
| Operating income (loss) (EBITDAR): |
||||||||||||||||||||||||||||||||
| Hospital division |
$ | 271,495 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 271,495 | ||||||||||||||||
| Kindred at Home: |
||||||||||||||||||||||||||||||||
| Home health |
8,614 | (721 | ) | — | — | — | — | (721 | ) | 7,893 | ||||||||||||||||||||||
| Hospice |
3,991 | (122 | ) | — | — | — | — | (122 | ) | 3,869 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 12,605 | (843 | ) | — | — | — | — | (843 | ) | 11,762 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Kindred Rehabilitation Services: |
||||||||||||||||||||||||||||||||
| Kindred Hospital Rehabilitation Services |
51,452 | (170 | ) | — | — | — | — | (170 | ) | 51,282 | ||||||||||||||||||||||
| RehabCare |
37,879 | (176 | ) | — | — | — | — | (176 | ) | 37,703 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 89,331 | (346 | ) | — | — | — | — | (346 | ) | 88,985 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Nursing center division |
76,186 | (3,205 | ) | — | — | — | — | (3,205 | ) | 72,981 | ||||||||||||||||||||||
| Support center |
(92,708 | ) | (556 | ) | — | — | — | — | (556 | ) | (93,264 | ) | ||||||||||||||||||||
| Litigation contingency expense |
— | — | (4,600 | ) | (4,600 | ) | (4,600 | ) | ||||||||||||||||||||||||
| Transaction costs |
— | — | — | — | (2,079 | ) | (3,100 | ) | (5,179 | ) | (5,179 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating income (EBITDAR) |
356,909 | (4,950 | ) | (4,600 | ) | — | (2,079 | ) | (3,100 | ) | (14,729 | ) | 342,180 | |||||||||||||||||||
| Rent |
(155,982 | ) | (247 | ) | — | — | — | — | (247 | ) | (156,229 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EBITDA |
200,927 | (5,197 | ) | (4,600 | ) | — | (2,079 | ) | (3,100 | ) | (14,976 | ) | 185,951 | |||||||||||||||||||
| Depreciation and amortization |
(78,264 | ) | — | — | — | — | — | — | (78,264 | ) | ||||||||||||||||||||||
| Interest, net |
(47,055 | ) | — | — | (56,643 | ) | — | — | (56,643 | ) | (103,698 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Income from continuing operations before income taxes |
75,608 | (5,197 | ) | (4,600 | ) | (56,643 | ) | (2,079 | ) | (3,100 | ) | (71,619 | ) | 3,989 | ||||||||||||||||||
| Provision for income taxes |
28,057 | (1,988 | ) | (1,760 | ) | (21,669 | ) | — | (1,128 | ) | (26,545 | ) | 1,512 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 47,551 | $ | (3,209 | ) | $ | (2,840 | ) | $ | (34,974 | ) | $ | (2,079 | ) | $ | (1,972 | ) | $ | (45,074 | ) | 2,477 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Noncontrolling interests |
(9,357 | ) | (9,357 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||
| Net income (loss) attributable to Kindred |
$ | 38,194 | $ | (6,880 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||
| Diluted earnings (loss) per common share |
$ | 0.70 | $ | (0.13 | ) | |||||||||||||||||||||||||||
| Diluted shares used in computing earnings (loss) per common share |
53,255 | 53,180 | ||||||||||||||||||||||||||||||
– MORE –
Kindred Healthcare Announces Second Quarter 2015 Results
Page 16
August 5, 2015
| Three months ended March 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||
| Charges | ||||||||||||||||||||||||||||||||||||||||||||
| Before charges |
Retirement and severance |
Home health and hospice closings |
Development project cancellation and other |
Litigation contingency |
Impairment charges |
Gentiva pre-closing financing costs |
Gentiva transaction and integration |
Other transaction |
Total | As reported |
||||||||||||||||||||||||||||||||||
| Income (loss) from continuing operations: |
||||||||||||||||||||||||||||||||||||||||||||
| Operating income (loss) (EBITDAR): |
||||||||||||||||||||||||||||||||||||||||||||
| Hospital division |
$ | 134,786 | $ | — | $ | — | $ | (675 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (675 | ) | $ | 134,111 | ||||||||||||||||||||
| Kindred at Home: |
||||||||||||||||||||||||||||||||||||||||||||
| Home health |
46,798 | — | (1,102 | ) | — | — | — | — | — | — | (1,102 | ) | 45,696 | |||||||||||||||||||||||||||||||
| Hospice |
16,996 | — | (517 | ) | — | — | — | — | — | — | (517 | ) | 16,479 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 63,794 | — | (1,619 | ) | — | — | — | — | — | — | (1,619 | ) | 62,175 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Kindred Rehabilitation Services: |
||||||||||||||||||||||||||||||||||||||||||||
| Kindred Hospital Rehabilitation Services |
44,564 | — | — | — | — | — | — | — | — | — | 44,564 | |||||||||||||||||||||||||||||||||
| RehabCare |
16,493 | (785 | ) | — | — | — | — | — | — | — | (785 | ) | 15,708 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 61,057 | (785 | ) | — | — | — | — | — | — | — | (785 | ) | 60,272 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Nursing center division |
36,963 | — | — | — | — | — | — | — | — | — | 36,963 | |||||||||||||||||||||||||||||||||
| Support center |
(62,389 | ) | (4,176 | ) | — | — | — | — | — | — | — | (4,176 | ) | (66,565 | ) | |||||||||||||||||||||||||||||
| Litigation contingency expense |
— | — | — | — | (95,000 | ) | — | — | — | — | (95,000 | ) | (95,000 | ) | ||||||||||||||||||||||||||||||
| Transaction costs |
— | — | — | — | — | — | (6,005 | ) | (86,598 | ) | (2,099 | ) | (94,702 | ) | (94,702 | ) | ||||||||||||||||||||||||||||
| Impairment charges |
— | — | — | — | — | (6,726 | ) | — | — | — | (6,726 | ) | (6,726 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Operating income (EBITDAR) |
234,211 | (4,961 | ) | (1,619 | ) | (675 | ) | (95,000 | ) | (6,726 | ) | (6,005 | ) | (86,598 | ) | (2,099 | ) | (203,683 | ) | 30,528 | ||||||||||||||||||||||||
| Rent |
(91,199 | ) | — | — | (352 | ) | — | — | — | (589 | ) | — | (941 | ) | (92,140 | ) | ||||||||||||||||||||||||||||
|
|
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|
|
|
|
|
|
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|
|
|
|
|
|
|
|||||||||||||||||||||||
| EBITDA |
143,012 | (4,961 | ) | (1,619 | ) | (1,027 | ) | (95,000 | ) | (6,726 | ) | (6,005 | ) | (87,187 | ) | (2,099 | ) | (204,624 | ) | (61,612 | ) | |||||||||||||||||||||||
| Depreciation and amortization |
(38,935 | ) | — | — | — | — | — | — | — | — | — | (38,935 | ) | |||||||||||||||||||||||||||||||
| Interest, net |
(44,346 | ) | — | — | — | — | — | (17,431 | ) | — | — | (17,431 | ) | (61,777 | ) | |||||||||||||||||||||||||||||
|
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|
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|
|
|
|
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|
|
|
|
|
|
|
|||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes |
59,731 | (4,961 | ) | (1,619 | ) | (1,027 | ) | (95,000 | ) | (6,726 | ) | (23,436 | ) | (87,187 | ) | (2,099 | ) | (222,055 | ) | (162,324 | ) | |||||||||||||||||||||||
| Provision (benefit) for income taxes |
22,466 | (2,133 | ) | (696 | ) | (442 | ) | — | (2,891 | ) | (10,075 | ) | (33,063 | ) | (902 | ) | (50,202 | ) | (27,736 | ) | ||||||||||||||||||||||||
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|
|||||||||||||||||||||||
| 37,265 | $ | (2,828 | ) | $ | (923 | ) | $ | (585 | ) | $ | (95,000 | ) | $ | (3,835 | ) | $ | (13,361 | ) | $ | (54,124 | ) | $ | (1,197 | ) | $ | (171,853 | ) | (134,588 | ) | |||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| Noncontrolling interests |
(8,847 | ) | (8,847 | ) | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to Kindred |
$ | 28,418 | $ | (143,435 | ) | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Diluted earnings (loss) per common share |
$ | 0.34 | $ | (1.80 | ) | |||||||||||||||||||||||||||||||||||||||
| Diluted shares used in computing earnings (loss) per common share |
82,422 | 79,575 | ||||||||||||||||||||||||||||||||||||||||||
| Three months ended March 31, 2014 | ||||||||||||
| Charges | ||||||||||||
| Before charges |
Transaction costs |
As reported |
||||||||||
| Income from continuing operations: |
||||||||||||
| Operating income (loss) (EBITDAR): |
||||||||||||
| Hospital division |
$ | 139,505 | $ | — | $ | 139,505 | ||||||
| Kindred at Home: |
||||||||||||
| Home health |
2,845 | — | 2,845 | |||||||||
| Hospice |
1,852 | — | 1,852 | |||||||||
|
|
|
|
|
|
|
|||||||
| 4,697 | — | 4,697 | ||||||||||
|
|
|
|
|
|
|
|||||||
| Kindred Rehabilitation Services: |
||||||||||||
| Kindred Hospital Rehabilitation Services |
25,710 | — | 25,710 | |||||||||
| RehabCare |
18,016 | — | 18,016 | |||||||||
|
|
|
|
|
|
|
|||||||
| 43,726 | — | 43,726 | ||||||||||
|
|
|
|
|
|
|
|||||||
| Nursing center division |
37,572 | — | 37,572 | |||||||||
| Support center |
(44,456 | ) | — | (44,456 | ) | |||||||
| Transaction costs |
— | (683 | ) | (683 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Operating income (EBITDAR) |
181,044 | (683 | ) | 180,361 | ||||||||
| Rent |
(78,530 | ) | — | (78,530 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| EBITDA |
102,514 | (683 | ) | 101,831 | ||||||||
| Depreciation and amortization |
(39,092 | ) | — | (39,092 | ) | |||||||
| Interest, net |
(25,617 | ) | — | (25,617 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Income from continuing operations before income taxes |
37,805 | (683 | ) | 37,122 | ||||||||
| Provision for income taxes |
14,445 | (250 | ) | 14,195 | ||||||||
|
|
|
|
|
|
|
|||||||
| 23,360 | $ | (433 | ) | 22,927 | ||||||||
|
|
|
|||||||||||
| Noncontrolling interests |
(4,529 | ) | (4,529 | ) | ||||||||
|
|
|
|
|
|||||||||
| Net income attributable to Kindred |
$ | 18,831 | $ | 18,398 | ||||||||
|
|
|
|
|
|||||||||
| Diluted earnings per common share |
$ | 0.35 | $ | 0.34 | ||||||||
| Diluted shares used in computing earnings per common share |
52,711 | 52,711 | ||||||||||
– MORE –
Kindred Healthcare Announces Second Quarter 2015 Results
Page 17
August 5, 2015
| Three months ended September 30, 2014 | ||||||||||||||||||||||||||||
| Charges | ||||||||||||||||||||||||||||
| Before charges |
Severance and other restructuring |
Customer bankruptcy |
Gentiva transaction |
Other transaction |
Total | As reported |
||||||||||||||||||||||
| Income from continuing operations: |
||||||||||||||||||||||||||||
| Operating income (loss) (EBITDAR): |
||||||||||||||||||||||||||||
| Hospital division |
$ | 117,604 | $ | (617 | ) | $ | — | $ | — | $ | — | $ | (617 | ) | $ | 116,987 | ||||||||||||
| Kindred at Home: |
||||||||||||||||||||||||||||
| Home health |
5,961 | (275 | ) | — | — | — | (275 | ) | 5,686 | |||||||||||||||||||
| Hospice |
1,149 | (46 | ) | — | — | — | (46 | ) | 1,103 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 7,110 | (321 | ) | — | — | — | (321 | ) | 6,789 | ||||||||||||||||||||
|
|
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|
|
|
|
|
|
|
|||||||||||||||
| Kindred Rehabilitation Services: |
||||||||||||||||||||||||||||
| Kindred Hospital Rehabilitation Services |
24,887 | — | (1,857 | ) | — | — | (1,857 | ) | 23,030 | |||||||||||||||||||
| RehabCare |
17,080 | 162 | — | — | — | 162 | 17,242 | |||||||||||||||||||||
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|||||||||||||||
| 41,967 | 162 | (1,857 | ) | — | — | (1,695 | ) | 40,272 | ||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|||||||||||||||
| Nursing center division |
35,920 | (483 | ) | — | — | — | (483 | ) | 35,437 | |||||||||||||||||||
| Support center |
(45,383 | ) | (427 | ) | — | — | — | (427 | ) | (45,810 | ) | |||||||||||||||||
| Transaction costs |
— | — | — | (3,200 | ) | (914 | ) | (4,114 | ) | (4,114 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating income (EBITDAR) |
157,218 | (1,686 | ) | (1,857 | ) | (3,200 | ) | (914 | ) | (7,657 | ) | 149,561 | ||||||||||||||||
| Rent |
(77,643 | ) | — | — | — | — | — | (77,643 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| EBITDA |
79,575 | (1,686 | ) | (1,857 | ) | (3,200 | ) | (914 | ) | (7,657 | ) | 71,918 | ||||||||||||||||
| Depreciation and amortization |
(38,748 | ) | — | — | — | — | — | (38,748 | ) | |||||||||||||||||||
| Interest, net |
(22,171 | ) | — | — | — | — | — | (22,171 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Income from continuing operations before income taxes |
18,656 | (1,686 | ) | (1,857 | ) | (3,200 | ) | (914 | ) | (7,657 | ) | 10,999 | ||||||||||||||||
| Provision for income taxes |
6,168 | (923 | ) | (1,017 | ) | (69 | ) | (382 | ) | (2,391 | ) | 3,777 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 12,488 | $ | (763 | ) | $ | (840 | ) | $ | (3,131 | ) | $ | (532 | ) | $ | (5,266 | ) | 7,222 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Noncontrolling interests |
(4,372 | ) | (4,372 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||
| Net income attributable to Kindred |
$ | 8,116 | $ | 2,850 | ||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||
| Diluted earnings per common share |
$ | 0.13 | $ | 0.04 | ||||||||||||||||||||||||
| Diluted shares used in computing earnings per common share |
62,902 | 62,902 | ||||||||||||||||||||||||||
| Three months ended December 31, 2014 | ||||||||||||||||||||||||||||||||
| Charges | ||||||||||||||||||||||||||||||||
| Before charges |
Severance and other restructuring |
LTAC criteria consulting |
Gentiva pre-closing financing |
Gentiva transaction |
Other transaction |
Total | As reported |
|||||||||||||||||||||||||
| Income (loss) from continuing operations: |
||||||||||||||||||||||||||||||||
| Operating income (loss) (EBITDAR): |
||||||||||||||||||||||||||||||||
| Hospital division |
$ | 134,791 | $ | (318 | ) | $ | — | $ | — | $ | — | $ | — | $ | (318 | ) | $ | 134,473 | ||||||||||||||
| Kindred at Home: |
||||||||||||||||||||||||||||||||
| Home health |
7,398 | (828 | ) | — | — | — | — | (828 | ) | 6,570 | ||||||||||||||||||||||
| Hospice |
524 | (106 | ) | — | — | — | — | (106 | ) | 418 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 7,922 | (934 | ) | — | — | — | — | (934 | ) | 6,988 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Kindred Rehabilitation Services: |
||||||||||||||||||||||||||||||||
| Kindred Hospital Rehabilitation Services |
23,884 | — | — | — | — | — | — | 23,884 | ||||||||||||||||||||||||
| RehabCare |
16,029 | — | — | — | — | — | — | 16,029 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 39,913 | — | — | — | — | — | — | 39,913 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Nursing center division |
38,810 | (500 | ) | — | — | — | — | (500 | ) | 38,310 | ||||||||||||||||||||||
| Support center |
(51,348 | ) | (10,193 | ) | (2,460 | ) | — | — | — | (12,653 | ) | (64,001 | ) | |||||||||||||||||||
| Transaction costs |
— | — | — | — | (5,545 | ) | (3,145 | ) | (8,690 | ) | (8,690 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating income (EBITDAR) |
170,088 | (11,945 | ) | (2,460 | ) | — | (5,545 | ) | (3,145 | ) | (23,095 | ) | 146,993 | |||||||||||||||||||
| Rent |
(79,167 | ) | — | — | — | — | — | — | (79,167 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EBITDA |
90,921 | (11,945 | ) | (2,460 | ) | — | (5,545 | ) | (3,145 | ) | (23,095 | ) | 67,826 | |||||||||||||||||||
| Depreciation and amortization |
(38,558 | ) | — | — | — | — | — | — | (38,558 | ) | ||||||||||||||||||||||
| Interest, net |
(21,857 | ) | — | — | (17,041 | ) | — | — | (17,041 | ) | (38,898 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Income (loss) from continuing operations before income taxes |
30,506 | (11,945 | ) | (2,460 | ) | (17,041 | ) | (5,545 | ) | (3,145 | ) | (40,136 | ) | (9,630 | ) | |||||||||||||||||
| Provision (benefit) for income taxes |
8,471 | (4,251 | ) | (875 | ) | (5,975 | ) | (1,514 | ) | (683 | ) | (13,298 | ) | (4,827 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 22,035 | $ | (7,694 | ) | $ | (1,585 | ) | $ | (11,066 | ) | $ | (4,031 | ) | $ | (2,462 | ) | $ | (26,838 | ) | (4,803 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Noncontrolling interests |
(5,143 | ) | (5,143 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||
| Net income (loss) attributable to Kindred |
$ | 16,892 | $ | (9,946 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||
| Diluted earnings (loss) per common share |
$ | 0.26 | $ | (0.15 | ) | |||||||||||||||||||||||||||
| Diluted shares used in computing earnings (loss) per common share |
63,163 | 65,135 | ||||||||||||||||||||||||||||||
– MORE –
Kindred Healthcare Announces Second Quarter 2015 Results
Page 18
August 5, 2015
KINDRED HEALTHCARE, INC.
Reconciliation of Non-GAAP Measurements to GAAP Results (Continued)
(Unaudited)
(In thousands, except per share amounts and statistics)
The Company recognizes that operating cash flows and free cash flows excluding certain items, which the Company refers to as core operating cash flows and core free cash flows, are non-GAAP measurements and are not intended to replace the presentation of the Company’s cash flows in accordance with GAAP. The Company believes that these non-GAAP measurements provide important information to investors related to the amount of discretionary cash flows that are available for other investing and financing activities. In addition, management uses operating cash flows and free cash flows excluding certain items in making decisions related to acquisitions, development capital expenditures, dividends, long-term debt repayments and other uses.
| Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Reconciliation of net cash flows provided by (used in) operating activities to free cash flows: |
||||||||||||||||
| Net cash flows provided by (used in) operating activities |
$ | 100,379 | ($ | 49,963 | ) | ($ | 39,223 | ) | ($ | 65,717 | ) | |||||
| Adjustments to remove certain payments (including payments made for discontinued operations) included in net cash flows provided by (used in) operating activities: |
||||||||||||||||
| Transaction, severance, retirement and retention |
14,509 | 5,367 | 96,849 | 9,554 | ||||||||||||
| Ventas, Inc. lease termination fee |
— | — | 40,000 | — | ||||||||||||
| Capitalized lender fees related to debt refinancing |
— | 19,125 | 28,012 | 19,125 | ||||||||||||
| Other debt refinancing costs (expensed) |
— | 40,373 | 27,001 | 40,373 | ||||||||||||
| Lease cancellation charges |
— | — | 353 | — | ||||||||||||
| Litigation |
16,575 | 700 | 16,575 | 25,850 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 31,084 | 65,565 | 208,790 | 94,902 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash flows provided by operating activities excluding certain items before income tax benefit of certain payments |
131,463 | 15,602 | 169,567 | 29,185 | ||||||||||||
| Benefit of reduced income tax payments resulting from certain payments |
(33,754 | ) | (14,604 | ) | (33,754 | ) | (14,604 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash flows provided by operating activities excluding certain items (core operating cash flows) |
97,709 | 998 | 135,813 | 14,581 | ||||||||||||
| Less routine capital expenditures |
(24,500 | ) | (24,485 | ) | (45,269 | ) | (46,162 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Free cash flows excluding certain items (core free cash flows) |
$ | 73,209 | ($ | 23,487 | ) | $ | 90,544 | ($ | 31,581 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
– END –