Headquarters: 18331 Von Karman Ave., Suite 400, Irvine
Employees: 33,000; 161 in OC
Business: nursing home operator
Market value as of April 1: $595 million
Revenue for 12 months ended Dec. 31: $1.6 billion, up 58%
Net income for 12 months ended Dec. 31: $57 million, up 112%
Year in review:
Sun spent 2007 widening its reach around the country. The company, which operates nursing homes, short-term rehabilitation centers, a medical staffing arm and hospices, bought Harborside Healthcare Corp., a Boston-based company, for $350 million. Buying Harborside gave Sun 75 skilled nursing, assisted living and independent living centers in 10 states.
What’s ahead:
Harborside played into a strategy shift for Sun, according to Chief Executive Richard Matros.
“Having completely deconstructed and reconstructed Sun’s asset base during the last five years, management believes it now has a strong platform with which to grow the company organically,” Matros said.
The healthcare provider sees its revenue for 2008 at $1.84 billion to $1.85 billion, up 16% from 2007. Sun expects profits from continuing operations to come in at $37.2 million to $39.6 million. Analysts expect Sun to earn $37.7 million on sales of $1.85 billion this year.
Wall Street’s Take:
In a fickle market for nursing homes, Sun has done fairly well. The company’s gotten favorable attention for the most part. Analysts have cited a combination of increasing demand for its services because of an aging population and the role of Matros,who arrived at Sun around the time it was coming out of bankruptcy in 2001,as the factors behind the company’s turnaround.
Sun “is well on the way toward establishing itself as a leading long-term care provider in terms of patient-care quality and operational strength,” said Michael Wiederhorn of CIBC in a research report published last May.
The Harborside deal should boost profits, Wiederhorn said.
,
Vita Reed
WHO’S IN CHARGE
RICHARD K. MATROS
Chief executive, Sun Healthcare Group
Joined Company:
2001
Education:
Attended graduate school at University of Southern California, master’s degree in gerontology
Career:
Served as chief executive and president of Bright Now Dental, 1998 to 2000. Was at Regency Health Services Inc. from 1994 to 1997, including a two-year stint as its chief executive.
Notable:
Native of Long Island, N.Y. Enjoys music, attending Lakers games and kickboxing.
