Orange County Business Journal

Skilled Healthcare Down on Lower Forecast

Vita Reed Tuesday, November 6, 2012

Shares of Foothill Ranch-based Skilled Healthcare Group Inc. were down about 6% in midday trading today after it lowered its full-year forecast and posted mixed third-quarter results.

The nursing home operator said it now expects full-year profit of $27.8 million to $28.5 million, compared to prior estimates of $28.5 million to $30.4 million.

Wall Street sees Skilled’s 2012 profit at $29.3 million.

Skilled said it anticipates 2012 revenue of $870 million to $875 million, down from previous estimates of $875 million to $885 million. Analysts expect the company’s revenue to come in at $878.3 million.

The company said it swung to a third-quarter profit of $6.1 million from a $210.8 million net loss in the year-ago quarter. Wall Street expected Skilled to post a profit of $7.1 million in the quarter.

Third-quarter revenue was flat over the previous year at $216.6 million but beat consensus projections of $216.5 million.

Skilled also said that it received approval from the Department of Housing and Urban Development for as much as $460 million in HUD-insured loans secured by 78 of its facilities. Skilled said it’s not yet determined the amount it will borrow under the loan program.