Consolidated Revenues of $1.5 Billion, GAAP Loss from Continuing
Operations of $135 Million(1),
GAAP Diluted Loss Per Share from Continuing Operations of $1.65(1),
and EBITDA Loss of $193 Million(2)
in the Fourth Quarter
Core EBITDA of $119 Million(3)
and Core Diluted Earnings Per Share from Continuing Operations of $0.20(3)
in the Fourth Quarter
GAAP and Core Results in the Fourth Quarter include Negative
Pretax Earnings Impact of $2 Million andDiluted EPS
Impact of $0.02 from LTAC Hospital Closures
Consolidated Revenues of $6.0 Billion, GAAP Loss from Continuing
Operations of $247 Million, GAAP Diluted Loss Per Share from Continuing
Operations of $3.31, and EBITDA Loss of $62 Million(3)
for the Year
Core EBITDA of $444 Million(3)
and Core Diluted Earnings Per Share from Continuing Operations of $0.34(3)
for the Year
GAAP and Core Results for the Year Include Negative Pretax
Earnings Impact of $16 Million from Hurricanes and $6 Million from LTAC
Hospital Closures and Diluted EPS Impact of $0.11 from Hurricanes and
$0.04 from LTAC Hospital Closures
GAAP Operating Cash Flows of $67 Million in the Fourth Quarter
Core
Operating Cash Flows of $87 Million(3)
in the Fourth Quarter
GAAP Operating Cash Flows of $76 Millionfor
the Year; Core Operating Cash Flows of $137 Million(3)
for the Year
Core Free Cash Flows of $50 Million(3)
in the Fourth Quarter; Core Free Cash Flows of $6 Million(3)
for the Year
Company Reaffirms 2018 Outlook and Does Not Intend to Provide
Future Guidance Updates Due to Pending Merger
Company Website:
http://www.kindredhealthcare.com
LOUISVILLE, Ky. -- (Business Wire)
Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND) today
announced its operating results for the fourth quarter and full year
ended December 31, 2017. The Company also today will file its Annual
Report on Form 10-K with the Securities and Exchange Commission (“SEC”).
On December 19, 2017, the Company announced that its Board of Directors
approved a definitive agreement under which it will be acquired by a
consortium of three companies: TPG Capital (“TPG”), Welsh, Carson,
Anderson & Stowe (“WCAS”) and Humana Inc. (“Humana”) (NYSE:HUM)
(together, the “Consortium”) for approximately $4.1 billion in cash
including the assumption or repayment of net debt (the “Merger”).
Immediately following the Merger, the home health, hospice and community
care businesses will be separated from the Company and operated as a
standalone company owned 40 percent by Humana, with the remaining 60
percent owned by TPG and WCAS. The Company’s long-term acute care
(“LTAC”) hospitals, inpatient rehabilitation facilities (“IRFs”) and
contract rehabilitation services businesses will be operated as a
separate specialty hospital company owned by TPG and WCAS.
Benjamin A. Breier, President and Chief Executive Officer of Kindred,
commented, “Our fourth quarter results reflect continued execution of
the Company’s strategy. We are pleased to be moving forward with the
Consortium and look forward to completing the Merger to deliver
immediate and certain value to Kindred stockholders at a substantial
premium and eliminate the significant risks associated with continuing
to operate as a standalone public company or pursuing other strategic
alternatives. We are confident that the Merger will enhance innovation
at both the home care and specialty hospital companies, further
Kindred’s culture of a patient-first approach to care and create new
opportunities for Kindred employees.”
_______________________________
(1) Results reflect after-tax
costs of $163.7 million or $1.86 per diluted share related to impairment
charges, insurance restructuring costs, other restructuring charges,
litigation contingency expense, net change in deferred tax asset
valuation allowance and an adjustment to reduce deferred tax liabilities
based upon certain changes enacted by the Tax Cuts and Jobs Act of 2017
(“the Tax Reform Act”).
(2) Results reflect pretax costs of $312.0
million related to impairment charges, insurance restructuring costs,
other restructuring charges and litigation contingency expense. As used
herein, “EBITDA” means earnings before interest, income taxes,
depreciation and amortization. See reconciliation of generally accepted
accounting principles (“GAAP”) results to non-GAAP results beginning on
page 14.
(3) See reconciliation of GAAP results to non-GAAP results
beginning on page 14. During the first quarter of 2017, the Company
revised its definition of “core” non-GAAP measures. See “Non-GAAP
Measures” beginning on page 14 for a discussion regarding the revised
definitions. For comparability, core results for 2016 were revised to
conform to the current year presentation.
The agreement is subject to certain conditions to closing, including,
without limitation, the approval of the agreement by the stockholders of
Kindred, the receipt of certain licensure and regulatory approvals, and
other customary closing conditions. The waiting period for the Merger
under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as
amended, expired on February 20, 2018. The Merger is expected to close
during the summer of 2018.
All financial and statistical information included in this earnings
release reflects the continuing operations of the Company’s businesses
for all periods presented unless otherwise indicated. As previously
disclosed, while the operating results, direct overhead and losses
associated with the skilled nursing facility business divestiture, and
elimination of intercompany profits for certain applicable RehabCare
contracts, are classified as discontinued operations, they do not
include any allocations of indirect overhead related to the skilled
nursing facility business. In the fourth quarter of 2017, the Company
reclassified historical intercompany profits from certain RehabCare
contracts that were retained with new operators of divested skilled
nursing facilities from discontinued operations to continuing operations
for all periods presented. The impact of the retained RehabCare
contracts on fourth quarter 2017 revenues, loss from continuing
operations before income taxes, EBITDA and Core EBITDA was immaterial.
Fourth Quarter Consolidated Results(1):
-
Consolidated revenues were $1.5 billion, a 2.3% year-over-year
decrease, primarily attributable to the impact of the closure of seven
LTAC hospitals and termination of over 100 RehabCare sites of service
during 2017. GAAP loss from continuing operations was $135.4 million
compared to a loss of $1.9 million in the same period a year ago.
EBITDA decreased to a loss of $192.8 million compared to $88.7 million
of income in the prior year. The increase in the loss from continuing
operations and the adverse change in EBITDA was primarily due to a
$241.3 million increase in impairment charges and a $41.4 million
increase in restructuring charges. Core EBITDA increased to
$119.2 million compared to $108.2 million in the same period of 2016,
primarily due to growth in home health and IRF volumes, growth in home
health and hospice revenue rates, and lower professional liability and
workers compensation costs.
-
GAAP operating cash flows were $67.2 million compared to $147.0
million for the same period a year ago. Core operating cash flows were
$86.5 million compared to $142.5 million for the same period a year
ago. Core free cash flows were $49.7 million compared to $104.4
million in the same period a year ago. GAAP operating cash flows
declined compared to the prior year period due to severance, retention
and transaction costs associated with the skilled nursing facility
business divestiture and other restructuring activities, and an
increase in net working capital. Core operating cash flows and core
free cash flows declined compared to the prior year period due to
increases in net working capital.
-
GAAP diluted loss per share from continuing operations was $1.65 as
compared to $0.12 a year ago. The increase in the GAAP diluted loss
per share was primarily due to the increase in impairment charges and
restructuring charges. Core diluted earnings per share (“EPS”) from
continuing operations increased to $0.20, as compared to core diluted
EPS of $0.07 for the same period last year, primarily due to growth in
home health and IRF volumes, growth in home health and hospice revenue
rates, and lower professional liability and workers compensation costs.
-
The Company recorded a $236.3 million non-cash goodwill impairment
charge in the fourth quarter to reflect an adjustment to the carrying
value of its Hospital division reporting unit in connection with its
annual goodwill impairment test as of October 1, 2017. The Company
also recorded non-cash impairment charges of $3.2 million for an
intangible asset and $1.9 million for property and equipment, both
related to the Hospital division, and a $3.5 million non-cash
intangible asset impairment charge in the Kindred at Home division
(“KAH”).
Full Year Consolidated Results(1):
-
Consolidated revenues were $6.0 billion, a 4.1% year-over-year
decrease, primarily attributable to the impact of the transition to
LTAC patient criteria, the sale or closure of 22 LTAC hospitals since
the third quarter of 2016 and termination of over 100 RehabCare sites
of service during 2017. GAAP loss from continuing operations was
$247.2 million compared to a loss of $597.7 million in the same period
a year ago. The decrease in the loss was primarily due to a $280.3
million decrease in the deferred tax asset valuation allowance
provision as well as a $130.5 million tax benefit from the reduction
of deferred tax liabilities for certain changes enacted by the Tax
Reform Act. EBITDA declined to a loss of $61.6 million compared to
income of $79.9 million in the prior year, primarily due to an
increase in impairment charges, the impact of LTAC patient criteria,
the sale or closure of LTAC hospitals noted above and operating losses
associated with the one-time impact of Hurricanes Irma and Harvey (the
“Hurricanes”) of $15.8 million in the third quarter of 2017, partially
offset by lower professional liability and workers compensation costs.
Core EBITDA declined to $443.5 million compared to $508.4 million in
the same period of 2016, primarily due to LTAC patient criteria, the
sale or closure of LTAC hospitals and the Hurricane losses, partially
offset by lower professional liability and workers compensation costs.
_______________________________
(1)
See reconciliation of GAAP results to non-GAAP results beginning on
page 14. During the first quarter of 2017, the Company revised its
definition of “core” non-GAAP measures. See “Non-GAAP Measures”
beginning on page 14 for a discussion regarding the revised
definitions. For comparability, core results for 2016 were revised to
conform to the current year presentation.
-
GAAP diluted loss per share from continuing operations was $3.31 as
compared to $7.29 a year ago. The decrease in the GAAP diluted loss
per share was primarily due to a decrease in the deferred tax asset
valuation allowance provision as well as a tax benefit from the
reduction of deferred tax liabilities for certain changes enacted by
the Tax Reform Act. Core diluted EPS from continuing operations
declined to $0.34, as compared to core diluted EPS of $0.73 for the
same period last year, primarily due to LTAC patient criteria and the
Hurricane losses in the third quarter of 2017, partially offset by
lower professional liability and workers compensation costs.
-
GAAP operating cash flows were $75.7 million compared to $188.2
million for the same period a year ago. Core operating cash flows were
$136.9 million compared to $299.3 million for the same period a year
ago. Core free cash flows were $5.9 million compared to $157.2 million
in the same period a year ago. GAAP and core operating cash flows and
core free cash flows declined compared to the prior year period due to
LTAC patient criteria and increases in net working capital.
Fourth Quarter Segment Results(1)(2)(3):
KAH recorded fourth quarter revenues that increased 3.0% to
$649.0 million from $630.2 million in the prior year period. On a
same-store basis, home health admissions increased 1.6%, but same-store
hospice admissions decreased 2.0% over the prior year period. Home
health revenue per episode increased 2.6% and hospice revenues per
patient day increased 2.7%. GAAP segment adjusted operating income and
core segment adjusted operating income for the fourth quarter of 2017
both increased to $103.6 million, an increase of 14.7% and 16.6%,
respectively, as compared to the prior year period. The improvements are
a result of increased home health volumes, home health and hospice
revenue rates, and improved operating efficiencies compared to the prior
year. Home health direct labor costs per visit declined 2.6% and hospice
direct labor costs per patient day declined 2.1% in the fourth quarter
of 2017 both as compared to the fourth quarter of 2016.
Kindred’s Hospital division fourth quarter revenues declined 7.3% to
$505.8 million from $545.9 million in the prior year period, primarily
due to the elimination of approximately $20 million of revenue related
to the closure of seven LTAC hospitals during 2017 and an 8.2% decline
in same-hospital admissions compared to last year. For the fourth
quarter of 2017, approximately 92% of same-hospital revenue came from
LTAC compliant patients, which include all patients except Medicare site
neutral patients, an increase from approximately 89% in both the third
quarter of 2017 and the prior year period. Same-hospital managed care
and commercial volumes increased 6.0% in the fourth quarter of 2017
compared to the prior year period. GAAP segment adjusted operating
income and core segment adjusted operating income both declined to $91.0
million, a decrease of 2.9% and 2.3%, respectively, as compared to a
year ago. The declines were primarily due to the closure of seven LTAC
hospitals, which contributed $1.0 million in both GAAP and core segment
operating income during 2017 compared to $2.3 million in 2016, and
declines in same-hospital admissions.
Kindred Rehabilitation Services division fourth quarter revenues
declined 4.1% to $346.6 million as compared to $361.4 million in the
prior year period, primarily due to operating fewer sites of service in
RehabCare resulting from the sale of the Company’s affiliated skilled
nursing facility business and termination of unprofitable contracts.
GAAP segment adjusted operating income and core segment adjusted
operating income both decreased to $52.4 million, or by 2.7% as compared
to the prior year period, primarily due to the reduction in RehabCare
sites of service and lower affiliated LTAC volumes and sites of service
within the Kindred Hospital Rehabilitation Services (“KHRS”) contract
services business. The KHRS segment achieved revenue growth of 1.4% to
$173.7 million from $171.3 million a year ago. This growth is primarily
due to IRF revenues increasing 7.5% to $97.8 million as compared to
$91.0 million in the prior year as a result of IRF development and a 2.9%
_______________________________
(1) See reconciliation of GAAP
results to non-GAAP results beginning on page 14. During the first
quarter of 2017, the Company revised its definition of “core” non-GAAP
measures. See “Non-GAAP Measures” beginning on page 14 for a discussion
regarding the revised definitions. For comparability, core results for
2016 were revised to conform to the current year presentation.
(2)
See same-hospital and full segment data on pages 9 through 13.
(3)
For each of the Company’s segments, Segment adjusted operating income
(loss) is a measure of performance used by the Company’s chief operating
decision makers in accordance with “Accounting Standard Codification 280
– Segment Reporting.” The Company defines Segment adjusted operating
income (loss) as earnings before interest, income taxes, depreciation,
amortization and total rent for each of the Company’s operating
segments, excluding litigation contingency expense, impairment charges,
restructuring charges, transaction costs, and the allocation of support
center overhead.
Fourth Quarter Segment Results(1)(2)(Continued):
increase in same-hospital discharges. KHRS GAAP segment adjusted
operating income and core segment adjusted operating income both
declined to $49.0 million or by 1.3%, as compared to the same period a
year ago, primarily as a result of lower affiliated LTAC volumes and
sites of service. The IRFs contributed $33.2 million to KHRS GAAP
segment adjusted operating income, a 19.7% increase over the prior year.
RehabCare revenues declined 9.1% to $172.9 million from $190.1 million
for the fourth quarter of 2016, primarily due to operating fewer sites
of service. RehabCare GAAP segment adjusted operating income and core
segment adjusted operating income both decreased to $3.4 million or
18.5%, as compared to the prior year period, primarily due to operating
fewer sites of service.
Discontinued Operations
During the fourth quarter of 2017, the Company recorded $33.1 million of
pretax charges related to the continued divestiture of its skilled
nursing facility business, including $14.4 million of transaction,
severance and retention costs, $13.2 million related to asset write
downs, a $5.0 million lease guarantee provision and $0.5 million of
lease termination costs.
2018 Outlook and Other Commentary(3)
All forward-looking non-GAAP financial measures used to provide the
“2018 Outlook” are provided only on a non- GAAP basis. This is due to
the inherent difficulty of forecasting the timing or amount of items
that would be included in the most directly comparable forward-looking
GAAP financial measures. As a result, reconciliation of the
forward-looking non-GAAP financial measures to GAAP financial measures
is not available without unreasonable effort and the Company is unable
to assess the probable significance of the unavailable information.
For the 2018 Outlook, Kindred anticipates:
-
Annual revenues of $6.0 billion, with a range of $5.9 billion to $6.1
billion;
-
Core EBITDA of $515 million, with a range of $500 million to $530
million; and
-
Core diluted EPS from continuing operations of $0.75, with a range of
$0.65 to $0.85.
These estimates are identical to the 2018 Outlook provided in the
Company’s third quarter earnings release dated November 6, 2017, with
the exception of the annual revenues estimate, which was adjusted
primarily to reflect LTAC hospital closures, a reduction in RehabCare
sites of service and certain adjustments related to the adoption of a
new revenue recognition accounting standard on January 1, 2018.
The Company noted that its 2018 Outlook incorporates the estimated
near-term impact of the federal budget passed on February 8, 2018. The
Company further noted that the estimated future reimbursement impact on
the Company’s LTAC, home health and rehabilitation businesses from the
2018 federal budget is consistent with the Company’s longer term
expectations.
The Company reaffirmed its previously disclosed 2018 midpoint estimate
of approximately $175 of core free cash flows from continuing operations
and net operating loss (“NOLs”) utilization, comprising approximately
$120 million of core free cash flows from continuing operations and an
anticipated cash benefit of approximately $55 million from federal and
state tax NOLs. In addition, the Company expects negative free cash
flows from discontinued operations, at the midpoint, of approximately
$80 million in 2018. Combining continuing and discontinuing operations,
on a consolidated basis the Company anticipates 2018 core free cash flow
from operations at the midpoint of approximately $95 million, which
includes the $55 million of anticipated cash NOL benefits noted above.
The Company expects to use approximately $20 million of these cash flows
to fund its previously announced IRF development projects, some of which
will contribute to 2018 results.
_______________________________
(1) See reconciliation of GAAP
results to non-GAAP results beginning on page 14. During the first
quarter of 2017, the Company revised its definition of “core” non-GAAP
measures. See “Non-GAAP Measures” beginning on page 14 for a discussion
regarding the revised definitions. For comparability, core results for
2016 were revised to conform to the current year presentation.
(2)
For each of the Company’s segments, Segment adjusted operating income
(loss) is a measure of performance used by the Company’s chief operating
decision makers in accordance with “Accounting Standard Codification 280
– Segment Reporting.” The Company defines Segment adjusted operating
income (loss) as earnings before interest, income taxes, depreciation,
amortization and total rent for each of the Company’s operating
segments, excluding litigation contingency expense, impairment charges,
restructuring charges, transaction costs, and the allocation of support
center overhead.
(3) See Forward-Looking Statements beginning on
page 14.
2018 Outlook and Other Commentary(1)
(Continued):
The Company indicated that its actuarially estimated aggregate insurance
settlement cash outflows from discontinued operations for all future
periods as of December 31, 2017 approximates $100 million, which
comprises approximately $30 million of cash outflows in 2018 and $70
million of cash outflows for periods after 2018. The Company estimated
$80 million at the midpoint of expected negative free cash flows from
discontinued operations described above includes the estimated $30
million related to insurance settlements, with the remaining estimated
$50 million related to the Company’s completion of its skilled nursing
facility business divestiture.
The Company does not expect the Tax Reform Act to have a material impact
on its book income tax provision for 2018, as the reduction in the
federal statutory rate from 35% to 21% will be effectively offset for
Kindred by the new limitation on interest expense deductibility and
other changes.
The Company updated its preliminary midpoint estimate of available gross
federal NOLs to roughly $775 million at December 31, 2017, up from a
midpoint estimate of available gross federal NOLs of $575 million
included in the Company’s earnings release on November 6, 2017(2).
The Company noted that while the estimated gross federal NOLs have
increased, the net cash value of the Company’s federal NOLs has
decreased by approximately $40 million. Using the new 21% federal
statutory rate, the Company’s current gross federal NOLs are estimated
to offset approximately $160 million of 2018 and future federal cash tax
liabilities, down from approximately $200 million of expected cash value
for the Company’s federal NOL estimate at November 6, 2017 using the 35%
federal statutory rate prior to the Tax Reform Act. The Company expects
the Tax Reform Act will result in the accelerated utilization of its
NOLs, particularly given the new limitations on the tax deductibility of
interest expense.
Due to the pending Merger, Kindred does not intend to provide future
guidance updates.
Cancellation of Conference Calls
In light of the Merger, the Company has discontinued its practice of
holding quarterly earnings conference calls.
Forward-Looking Statements and Non-GAAP Reconciliations
See page 14 for important disclosures regarding the Company’s
forward-looking statements and the non-GAAP financial reconciliations
that follow.
About Kindred Healthcare
Kindred Healthcare, Inc., a top-105 private employer in the United
States, is a FORTUNE 500 healthcare services company based in
Louisville, Kentucky with annual revenues of approximately $6.0 billion.
At December 31, 2017, Kindred’s continuing operations, through its
subsidiaries, had approximately 85,300 employees providing healthcare
services in 2,471 locations in 45 states, including 75 LTAC hospitals,
19 inpatient rehabilitation hospitals, 13 sub-acute units, 608 Kindred
at Home home health, hospice and non-medical home care sites of service,
99 inpatient rehabilitation units (hospital-based) and contract
rehabilitation service businesses which served 1,657 non-affiliated
sites of service. Ranked as one of Fortune magazine’s Most Admired
Healthcare Companies for nine 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) See Forward-Looking
Statements beginning on page 14.
(2) The increase in gross NOLs is
primarily due to certain fourth quarter 2017 changes in book-to-tax
temporary differences, finalization of the Company’s 2017 taxable loss,
the Company’s previously disclosed insurance program restructuring and
additional clarity on the tax attributes of the Company’s skilled
nursing facility business divestiture.
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Condensed Consolidated Statement of Operations |
(In thousands, except per share amounts)
|
|
|
|
|
| |
|
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | Three months ended | | | Year ended |
| | | | | | | | | December 31, | | | December 31, |
| | | | | | | | |
| 2017 |
| | |
| 2016 |
| | |
| 2017 |
| | |
| 2016 |
|
| | | | | | | | | | | | | | | | | |
|
Revenues
| | | | $ | 1,480,982 |
| | |
$
|
1,515,086
|
| | | $ | 6,034,123 |
| | |
$
|
6,292,529
|
|
| | | | | | | | | | | | | | | | | |
|
Salaries, wages and benefits
| | | | | 814,811 | | | | |
846,232
| | | | | 3,318,885 | | | | |
3,392,263
| |
Supplies
| | | | | 72,694 | | | | |
79,386
| | | | | 303,923 | | | | |
343,065
| |
Building rent
| | | | | 63,577 | | | | |
64,350
| | | | | 257,516 | | | | |
264,306
| |
Equipment rent
| | | | | 8,571 | | | | |
8,649
| | | | | 34,856 | | | | |
39,929
| |
Other operating expenses
| | | | | 143,830 | | | | |
156,005
| | | | | 640,764 | | | | |
656,792
| |
General and administrative expenses
| | | | | 269,271 | | | | |
258,703
| | | | | 1,069,764 | | | | |
1,107,648
| |
Other income
| | | | | (565 | ) | | | |
(2,387
|
)
| | | | (3,460 | ) | | | |
(5,066
|
)
|
Litigation contingency expense
| | | | | 3,435 | | | | |
-
| | | | | 7,435 | | | | |
2,840
| |
Impairment charges
| | | | | 244,876 | | | | |
3,534
| | | | | 381,179 | | | | |
314,729
| |
Restructuring charges
| | | | | 53,305 | | | | |
11,913
| | | | | 84,861 | | | | |
96,126
| |
Depreciation and amortization
| | | | | 24,526 | | | | |
32,072
| | | | | 104,805 | | | | |
131,819
| |
Interest expense
| | | | | 60,136 | | | | |
59,214
| | | | | 241,411 | | | | |
234,612
| |
Investment income
| | | |
| (57 | ) | | |
|
(589
|
)
| | |
| (3,499 | ) | | |
|
(3,108
|
)
|
| | | | | | | | |
| 1,758,410 |
| | |
|
1,517,082
|
| | |
| 6,438,440 |
| | |
|
6,575,955
|
|
Loss from continuing operations before income taxes
| | | | | (277,428 | ) | | | |
(1,996
|
)
| | | | (404,317 | ) | | | |
(283,426
|
)
|
Provision (benefit) for income taxes
| | | |
| (142,009 | ) | | |
|
(116
|
)
| | |
| (157,116 | ) | | |
|
314,262
|
|
|
Loss from continuing operations
| | | | | (135,419 | ) | | | |
(1,880
|
)
| | | | (247,201 | ) | | | |
(597,688
|
)
|
Discontinued operations, net of income taxes:
| | | | | | | | | | | | | |
|
Income (loss) from operations
| | | | | (12,683 | ) | | | |
6,655
| | | | | (16,854 | ) | | | |
(6,192
|
)
|
|
Loss on divestiture of operations
| | | |
| (29,392 | ) | | |
|
(6,923
|
)
| | |
| (379,260 | ) | | |
|
(6,744
|
)
|
| |
Loss from discontinued operations
| | | |
| (42,075 | ) | | |
|
(268
|
)
| | |
| (396,114 | ) | | |
|
(12,936
|
)
|
| | |
Net loss
| | | | | (177,494 | ) | | | |
(2,148
|
)
| | | | (643,315 | ) | | | |
(610,624
|
)
|
Earnings attributable to noncontrolling interests:
| | | | | | | | | | | | | |
|
Continuing operations
| | | | | (9,942 | ) | | | |
(8,575
|
)
| | | | (42,176 | ) | | | |
(34,847
|
)
|
|
Discontinued operations
| | | |
| (264 | ) | | |
|
(4,684
|
)
| | |
| (12,861 | ) | | |
|
(18,759
|
)
|
| | | | | | | | |
| (10,206 | ) | | |
|
(13,259
|
)
| | |
| (55,037 | ) | | |
|
(53,606
|
)
|
| | | | |
Loss attributable to Kindred
| | | | $ | (187,700 | ) | | |
$
|
(15,407
|
)
| | | $ | (698,352 | ) | | |
$
|
(664,230
|
)
|
| | | | | | | | | | | | | | | | | |
|
Amounts attributable to Kindred stockholders:
| | | | | | | | | | | | | |
|
Loss from continuing operations
| | | | $ | (145,361 | ) | | |
$
|
(10,455
|
)
| | | $ | (289,377 | ) | | |
$
|
(632,535
|
)
|
|
Loss from discontinued operations
| | | |
| (42,339 | ) | | |
|
(4,952
|
)
| | |
| (408,975 | ) | | |
|
(31,695
|
)
|
| | | | |
Net loss
| | | | $ | (187,700 | ) | | |
$
|
(15,407
|
)
| | | $ | (698,352 | ) | | |
$
|
(664,230
|
)
|
| | | | | | | | | | | | | | | | | |
|
Loss per common share:
| | | | | | | | | | | | | |
|
Basic:
| | | | | | | | | | | | | |
| |
Loss from continuing operations
| | | | $ | (1.65 | ) | | |
$
|
(0.12
|
)
| | | $ | (3.31 | ) | | |
$
|
(7.29
|
)
|
| |
Discontinued operations:
| | | | | | | | | | | | | |
| | |
Loss from operations
| | | | | (0.15 | ) | | | |
0.02
| | | | | (0.34 | ) | | | |
(0.28
|
)
|
| | |
Loss on divestiture of operations
| | | |
| (0.33 | ) | | |
|
(0.08
|
)
| | |
| (4.33 | ) | | |
|
(0.08
|
)
|
| | | |
Loss from discontinued operations
| | | |
| (0.48 | ) | | |
|
(0.06
|
)
| | |
| (4.67 | ) | | |
|
(0.36
|
)
|
| | | | |
Net loss
| | | | $ | (2.13 | ) | | |
$
|
(0.18
|
)
| | | $ | (7.98 | ) | | |
$
|
(7.65
|
)
|
| | | | | | | | | | | | | | | | | |
|
|
Diluted:
| | | | | | | | | | | | | |
| |
Loss from continuing operations
| | | | $ | (1.65 | ) | | |
$
|
(0.12
|
)
| | | $ | (3.31 | ) | | |
$
|
(7.29
|
)
|
| |
Discontinued operations:
| | | | | | | | | | | | | |
| | |
Loss from operations
| | | | | (0.15 | ) | | | |
0.02
| | | | | (0.34 | ) | | | |
(0.28
|
)
|
| | |
Loss on divestiture of operations
| | | |
| (0.33 | ) | | |
|
(0.08
|
)
| | |
| (4.33 | ) | | |
|
(0.08
|
)
|
| | | |
Loss from discontinued operations
| | | |
| (0.48 | ) | | |
|
(0.06
|
)
| | |
| (4.67 | ) | | |
|
(0.36
|
)
|
| | | | |
Net loss
| | | | $ | (2.13 | ) | | |
$
|
(0.18
|
)
| | | $ | (7.98 | ) | | |
$
|
(7.65
|
)
|
| | | | | | | | | | | | | | | | | |
|
Shares used in computing loss per common share:
| | | | | | | | | | | | | |
|
Basic
| | | | | 87,902 | | | | |
86,904
| | | | | 87,525 | | | | |
86,800
| |
|
Diluted
| | | | | 87,902 | | | | |
86,904
| | | | | 87,525 | | | | |
86,800
| |
| | | | | | | | | | | | | | | | | |
|
Cash dividends declared and paid per common share
| | | | $ | - | | | |
$
|
0.12
| | | | $ | 0.12 | | | |
$
|
0.48
| |
|
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Condensed Consolidated Balance Sheet |
(In thousands, except per share amounts)
|
|
|
| | |
|
|
| |
|
| |
| | | | | | | | December 31, | | | December 31, |
| | | | | | | |
| 2017 |
| | |
| 2016 |
|
ASSETS | | | | | | | |
Current assets:
| | | | | | | |
|
Cash and cash equivalents
| | | | $ | 160,254 | | | |
$
|
137,061
| |
|
Insurance subsidiary investments
| | | | | 22,546 | | | | |
108,966
| |
|
Accounts receivable less allowance for loss
| | | | | 1,122,532 | | | | |
1,172,078
| |
|
Inventories
| | | | | 21,716 | | | | |
22,438
| |
|
Income taxes
| | | | | 4,546 | | | | |
10,067
| |
|
Assets held for sale
| | | | | 17,335 | | | | |
289,450
| |
|
Other
| | | |
| 60,610 |
| | |
|
63,693
|
|
| | | | | | | | | 1,409,539 | | | | |
1,803,753
| |
| | | | | | | | | | |
|
Property and equipment
| | | | | 1,682,965 | | | | |
1,531,598
| |
Accumulated depreciation
| | | |
| (946,986 | ) | | |
|
(912,978
|
)
|
| | | | | | | | | 735,979 | | | | |
618,620
| |
| | | | | | | | | | |
|
Goodwill
| | | | | 2,188,566 | | | | |
2,427,074
| |
Intangible assets less accumulated amortization
| | | | | 604,338 | | | | |
770,108
| |
Insurance subsidiary investments
| | | | | 28,988 | | | | |
204,929
| |
Other
| | | | |
| 265,307 |
| | |
|
288,240
|
|
| | |
Total assets
| | | | $ | 5,232,717 |
| | |
$
|
6,112,724
|
|
LIABILITIES AND EQUITY | | | | | | | |
Current liabilities:
| | | | | | | |
|
Accounts payable
| | | | $ | 191,827 | | | |
$
|
203,925
| |
|
Salaries, wages and other compensation
| | | | | 352,179 | | | | |
397,486
| |
|
Due to third party payors
| | | | | 35,321 | | | | |
41,320
| |
|
Professional liability risks
| | | | | 60,767 | | | | |
65,284
| |
|
Accrued lease termination fees
| | | | | 7,610 | | | | |
5,224
| |
|
Other accrued liabilities
| | | | | 263,977 | | | | |
264,512
| |
|
Long-term debt due within one year
| | | |
| 14,638 |
| | |
|
27,977
|
|
| | | | | | | | | 926,319 | | | | |
1,005,728
| |
| | | | | | | | | | |
|
Long-term debt
| | | | | 3,146,972 | | | | |
3,215,062
| |
Professional liability risks
| | | | | 276,829 | | | | |
295,311
| |
Deferred tax liabilities
| | | | | 36,881 | | | | |
201,808
| |
Deferred credits and other liabilities
| | | | | 497,954 | | | | |
353,294
| |
| | | | | | | | | | |
|
Equity:
| | | | | | | | |
|
Stockholders' equity:
| | | | | | | |
| | |
Common stock, $0.25 par value; authorized 175,000 shares; issued
91,454 shares - December 31, 2017 and 85,166 shares - December 31,
2016
| | | | | 22,864 | | | | |
21,291
| |
| |
Capital in excess of par value
| | | | | 1,713,179 | | | | |
1,710,231
| |
| |
Accumulated other comprehensive income
| | | | | 6,179 | | | | |
1,573
| |
| |
Accumulated deficit
| | | |
| (1,618,896 | ) | | |
|
(920,544
|
)
|
| | | | | | | | | 123,326 | | | | |
812,551
| |
|
Noncontrolling interests
| | | |
| 224,436 |
| | |
|
228,970
|
|
| | |
Total equity
| | | |
| 347,762 |
| | |
|
1,041,521
|
|
| | |
Total liabilities and equity
| | | | $ | 5,232,717 |
| | |
$
|
6,112,724
|
|
| |
|
|
|
|
|
|
|
|
|
|
| KINDRED HEALTHCARE, INC. Condensed Consolidated
Statement of Cash Flows (In thousands)
|
|
|
|
|
|
| |
|
|
| Three months ended |
|
| Year ended |
| | | | | | | | December 31, | | | December 31, |
| | | | | | | |
| 2017 |
|
|
|
| 2016 |
| | |
| 2017 |
|
|
|
| 2016 |
|
Cash flows from operating activities:
| | | | | | | | | | | | | |
|
Net loss
| | | | $ | (177,494 | ) | | |
$
|
(2,148
|
)
| | | $ | (643,315 | ) | | |
$
|
(610,624
|
)
|
|
Adjustments to reconcile net loss to net cash provided by
| | | | | | | | | | | | | |
| |
operating activities:
| | | | | | | | | | | | | |
| |
Depreciation expense
| | | | | 23,480 | | | | |
32,660
| | | | | 102,481 | | | | |
135,966
| |
| |
Amortization of intangible assets
| | | | | 2,728 | | | | |
5,422
| | | | | 14,637 | | | | |
23,673
| |
| |
Amortization of stock-based compensation costs
| | | | | 3,933 | | | | |
3,367
| | | | | 17,249 | | | | |
16,425
| |
| |
Amortization of deferred financing costs
| | | | | 4,342 | | | | |
4,005
| | | | | 17,189 | | | | |
15,267
| |
| |
Payment of capitalized lender fees related to debt amendments
| | | | | - | | | | |
-
| | | | | (5,403 | ) | | | |
(7,375
|
)
|
| |
Provision for doubtful accounts
| | | | | 10,773 | | | | |
9,849
| | | | | 68,284 | | | | |
40,804
| |
| |
Deferred income taxes
| | | | | (145,086 | ) | | | |
1,868
| | | | | (164,694 | ) | | | |
310,338
| |
| |
Impairment charges
| | | | | 244,876 | | | | |
4,351
| | | | | 382,447 | | | | |
342,559
| |
| |
Loss on divestiture of discontinued operations
| | | | | 29,392 | | | | |
6,923
| | | | | 379,260 | | | | |
6,744
| |
| |
Other
| | | | | 1,823 | | | | |
5,152
| | | | | 17,935 | | | | |
12,414
| |
| |
Change in operating assets and liabilities:
| | | | | | | | | | | | | |
| | |
Accounts receivable
| | | | | 82,303 | | | | |
84,922
| | | | | (20,896 | ) | | | |
(59,031
|
)
|
| | |
Inventories and other assets
| | | | | 32,371 | | | | |
(20,704
|
)
| | | | 22,854 | | | | |
(24,226
|
)
|
| | |
Accounts payable
| | | | | 13,946 | | | | |
1,764
| | | | | (12,267 | ) | | | |
26,215
| |
| | |
Income taxes
| | | | | 3,524 | | | | |
1,882
| | | | | 10,242 | | | | |
4,350
| |
| | |
Due to third party payors
| | | | | (13,470 | ) | | | |
(16,625
|
)
| | | | (5,999 | ) | | | |
3,692
| |
| | |
Other accrued liabilities
| | | |
| (50,258 | ) | | |
|
24,313
|
| | |
| (104,309 | ) | | |
|
(48,955
|
)
|
| | | |
Net cash provided by operating activities
| | | |
| 67,183 |
| | |
|
147,001
|
| | |
| 75,695 |
| | |
|
188,236
|
|
| | | | | | | | | | | | | | | | |
|
Cash flows from investing activities:
| | | | | | | | | | | | | |
|
Routine capital expenditures
| | | | | (24,006 | ) | | | |
(27,349
|
)
| | | | (69,806 | ) | | | |
(96,052
|
)
|
|
Development capital expenditures
| | | | | (8,184 | ) | | | |
(7,713
|
)
| | | | (25,895 | ) | | | |
(34,825
|
)
|
|
Acquisitions, net of cash acquired
| | | | | (3,000 | ) | | | |
(1,800
|
)
| | | | (9,650 | ) | | | |
(78,840
|
)
|
|
Acquisition deposits
| | | | | - | | | | |
-
| | | | | - | | | | |
18,489
| |
|
Sale of assets
| | | | | (77,049 | ) | | | |
21,025
| | | | | (71,555 | ) | | | |
25,987
| |
|
Purchase of insurance subsidiary investments
| | | | | (5,006 | ) | | | |
(22,318
|
)
| | | | (113,661 | ) | | | |
(97,740
|
)
|
|
Sale of insurance subsidiary investments
| | | | | 125,753 | | | | |
17,010
| | | | | 243,616 | | | | |
95,488
| |
|
Net change in insurance subsidiary cash and cash equivalents
| | | | | 110,146 | | | | |
(7,602
|
)
| | | | 133,618 | | | | |
877
| |
|
Net change in other investments
| | | | | 19,793 | | | | |
577
| | | | | 24,637 | | | | |
(32,770
|
)
|
|
Other
| | | |
| 42 |
| | |
|
1,022
|
| | |
| 7 |
| | |
|
(255
|
)
|
| | | |
Net cash provided by (used in) investing activities
| | | |
| 138,489 |
| | |
|
(27,148
|
)
| | |
| 111,311 |
| | |
|
(199,641
|
)
|
| | | | | | | | | | | | | | | | |
|
Cash flows from financing activities:
| | | | | | | | | | | | | |
|
Proceeds from borrowings under revolving credit
| | | | | 155,400 | | | | |
376,100
| | | | | 1,369,700 | | | | |
1,643,300
| |
|
Repayment of borrowings under revolving credit
| | | | | (311,600 | ) | | | |
(473,600
|
)
| | | | (1,432,200 | ) | | | |
(1,689,400
|
)
|
|
Proceeds from issuance of term loan, net of discount
| | | | | - | | | | |
-
| | | | | - | | | | |
198,100
| |
|
Proceeds from other long-term debt
| | | | | - | | | | |
-
| | | | | - | | | | |
750
| |
|
Repayment of term loan
| | | | | (3,509 | ) | | | |
(3,508
|
)
| | | | (14,034 | ) | | | |
(13,527
|
)
|
|
Repayment of other long-term debt
| | | | | (205 | ) | | | |
(278
|
)
| | | | (1,045 | ) | | | |
(1,104
|
)
|
|
Payment of deferred financing costs
| | | | | (114 | ) | | | |
(180
|
)
| | | | (413 | ) | | | |
(522
|
)
|
|
Issuance of common stock in connection with employee benefit plans
| | | | | - | | | | |
-
| | | | | 32 | | | | |
-
| |
|
Payment of dividend for mandatory redeemable preferred stock
| | | | | (3,177 | ) | | | |
(2,956
|
)
| | | | (12,372 | ) | | | |
(11,514
|
)
|
|
Dividends paid
| | | | | - | | | | |
(10,221
|
)
| | | | (10,228 | ) | | | |
(40,738
|
)
|
|
Contributions made by noncontrolling interests
| | | | | 392 | | | | |
3,253
| | | | | 505 | | | | |
14,514
| |
|
Distributions to noncontrolling interests
| | | | | (12,854 | ) | | | |
(10,745
|
)
| | | | (61,226 | ) | | | |
(45,985
|
)
|
|
Purchase of noncontrolling interests
| | | | | - | | | | |
-
| | | | | - | | | | |
(1,000
|
)
|
|
Payroll tax payments for equity awards issuance
| | | |
| (115 | ) | | |
|
(87
|
)
| | |
| (2,532 | ) | | |
|
(3,166
|
)
|
| | | |
Net cash provided by (used in) financing activities
| | | |
| (175,782 | ) | | |
|
(122,222
|
)
| | |
| (163,813 | ) | | |
|
49,708
|
|
Change in cash and cash equivalents
| | | | | 29,890 | | | | |
(2,369
|
)
| | | | 23,193 | | | | |
38,303
| |
Cash and cash equivalents at beginning of period
| | | |
| 130,364 |
| | |
|
139,430
|
| | |
| 137,061 |
| | |
|
98,758
|
|
Cash and cash equivalents at end of period
| | | | $ | 160,254 |
| | |
$
|
137,061
|
| | | $ | 160,254 |
| | |
$
|
137,061
|
|
|
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Condensed Consolidated and Business Segment Data |
(Unaudited) |
(In thousands, except per share amounts)
|
| |
|
|
|
| |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fourth quarter |
| | | | | | | | | 2016 Quarters | | | | 2017 Quarters | | | | % change v. |
| | | | | | | | | First | | Second | | Third | | Fourth | | Year | | First | | Second | | Third | | Fourth | | Year | | prior year |
Condensed consolidated statement of operations data: | | | | | | | | | | | | | | | | | | | |
GAAP presentation: | | | | | | | | | | | | | | | | | | | | | | | |
|
Revenues
| | |
$
|
1,604,214
| | |
$
|
1,609,169
| | |
$
|
1,564,060
| | |
$
|
1,515,086
| | |
$
|
6,292,529
| | |
$
|
1,539,490
| | |
$
|
1,535,831
| | |
$
|
1,477,820
| | |
$
|
1,480,982
| | |
$
|
6,034,123
| | |
(2.3
|
)
|
|
Operating expenses
| | | |
1,403,467
| | | |
1,390,562
| | | |
1,760,982
| | | |
1,353,386
| | | |
5,908,397
| | | |
1,364,751
| | | |
1,498,396
| | | |
1,338,547
| | | |
1,601,657
| | | |
5,803,351
| | |
18.3
| |
|
Building rent
| | | |
65,985
| | | |
67,025
| | | |
66,946
| | | |
64,350
| | | |
264,306
| | | |
64,656
| | | |
64,861
| | | |
64,422
| | | |
63,577
| | | |
257,516
| | |
(1.2
|
)
|
|
Equipment rent
| | | |
10,158
| | | |
11,211
| | | |
9,911
| | | |
8,649
| | | |
39,929
| | | |
8,887
| | | |
8,861
| | | |
8,537
| | | |
8,571
| | | |
34,856
| | |
(0.9
|
)
|
|
Depreciation and amortization
| | | |
33,554
| | | |
33,198
| | | |
32,995
| | | |
32,072
| | | |
131,819
| | | |
29,820
| | | |
25,651
| | | |
24,808
| | | |
24,526
| | | |
104,805
| | |
(23.5
|
)
|
|
Interest, net
| | |
|
57,253
|
| |
|
57,567
|
| |
|
58,059
|
| |
|
58,625
|
| |
|
231,504
|
| |
|
58,819
|
| |
|
58,573
|
| |
|
60,441
|
| |
|
60,079
|
| |
|
237,912
|
| |
2.5
| |
|
Income (loss) from continuing operations before income taxes
| | | |
33,797
| | | |
49,606
| | | |
(364,833
|
)
| | |
(1,996
|
)
| | |
(283,426
|
)
| | |
12,557
| | | |
(120,511
|
)
| | |
(18,935
|
)
| | |
(277,428
|
)
| | |
(404,317
|
)
| |
n/m
| |
|
Provision (benefit) for income taxes
| | |
|
11,817
|
| |
|
19,379
|
| |
|
283,182
|
| |
|
(116
|
)
| |
|
314,262
|
| |
|
2,234
|
| |
|
(16,116
|
)
| |
|
(1,225
|
)
| |
|
(142,009
|
)
| |
|
(157,116
|
)
| |
n/m
| |
| |
Income (loss) from continuing operations
| | | |
21,980
| | | |
30,227
| | | |
(648,015
|
)
| | |
(1,880
|
)
| | |
(597,688
|
)
| | |
10,323
| | | |
(104,395
|
)
| | |
(17,710
|
)
| | |
(135,419
|
)
| | |
(247,201
|
)
| |
n/m
| |
|
Noncontrolling interests
| | |
|
(7,851
|
)
| |
|
(8,847
|
)
| |
|
(9,574
|
)
| |
|
(8,575
|
)
| |
|
(34,847
|
)
| |
|
(10,483
|
)
| |
|
(10,791
|
)
| |
|
(10,960
|
)
| |
|
(9,942
|
)
| |
|
(42,176
|
)
| |
15.9
| |
| |
Net income (loss) attributable to Kindred
| | |
$
|
14,129
|
| |
$
|
21,380
|
| |
$
|
(657,589
|
)
| |
$
|
(10,455
|
)
| |
$
|
(632,535
|
)
| |
$
|
(160
|
)
| |
$
|
(115,186
|
)
| |
$
|
(28,670
|
)
| |
$
|
(145,361
|
)
| |
$
|
(289,377
|
)
| |
n/m
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Diluted EPS
| | |
$
|
0.16
| | |
$
|
0.23
| | |
$
|
(7.57
|
)
| |
$
|
(0.12
|
)
| |
$
|
(7.29
|
)
| |
$
|
-
| | |
$
|
(1.32
|
)
| |
$
|
(0.32
|
)
| |
$
|
(1.65
|
)
| |
$
|
(3.31
|
)
| |
n/m
| |
|
Diluted shares
| | | |
87,249
| | | |
87,500
| | | |
86,869
| | | |
86,904
| | | |
86,800
| | | |
87,085
| | | |
87,506
| | | |
87,597
| | | |
87,902
| | | |
87,525
| | |
1.1
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Core presentation (a): | | | | | | | | | | | | | | | | | | | | | | | |
|
Building rent
| | |
$
|
65,985
| | |
$
|
67,025
| | |
$
|
66,674
| | |
$
|
64,350
| | |
$
|
264,034
| | |
$
|
64,656
| | |
$
|
64,861
| | |
$
|
64,422
| | |
$
|
63,577
| | |
$
|
257,516
| | |
(1.2
|
)
|
|
Equipment rent
| | | |
10,158
| | | |
11,211
| | | |
9,911
| | | |
8,649
| | | |
39,929
| | | |
8,887
| | | |
8,861
| | | |
8,537
| | | |
8,571
| | | |
34,856
| | |
(0.9
|
)
|
|
EBITDA
| | | |
136,697
| | | |
153,732
| | | |
109,770
| | | |
108,151
| | | |
508,350
| | | |
111,676
| | | |
128,093
| | | |
84,571
| | | |
119,199
| | | |
443,539
| | |
10.2
| |
|
Provision (benefit) for income taxes
| | | |
16,099
| | | |
21,253
| | | |
4,262
| | | |
2,230
| | | |
43,844
| | | |
9,407
| | | |
13,333
| | | |
(2,062
|
)
| | |
6,323
| | | |
27,001
| | |
183.5
| |
|
Noncontrolling interests
| | | |
(7,851
|
)
| | |
(9,863
|
)
| | |
(9,862
|
)
| | |
(8,575
|
)
| | |
(36,151
|
)
| | |
(10,483
|
)
| | |
(11,111
|
)
| | |
(10,960
|
)
| | |
(9,942
|
)
| | |
(42,496
|
)
| |
15.9
| |
|
Net income (loss) attributable to Kindred
| | | |
21,940
| | | |
31,851
| | | |
4,592
| | | |
6,649
| | | |
65,032
| | | |
3,147
| | | |
19,425
| | | |
(9,576
|
)
| | |
18,329
| | | |
31,325
| | |
175.7
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Core diluted EPS
| | |
$
|
0.25
| | |
$
|
0.35
| | |
$
|
0.05
| | |
$
|
0.07
| | |
$
|
0.73
| | |
$
|
0.03
| | |
$
|
0.21
| | |
$
|
(0.11
|
)
| |
$
|
0.20
| | |
$
|
0.34
| | |
185.7
| |
|
Diluted shares
| | | |
87,249
| | | |
87,500
| | | |
87,529
| | | |
87,641
| | | |
87,491
| | | |
87,744
| | | |
88,165
| | | |
87,597
| | | |
88,485
| | | |
88,200
| | |
1.0
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Revenues by segment: | | | | | | | | | | | | | | | | | | | | | | | |
|
Kindred at Home:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Home health
| | |
$
|
430,035
| | |
$
|
438,556
| | |
$
|
449,958
| | |
$
|
444,073
| | |
$
|
1,762,622
| | |
$
|
450,831
| | |
$
|
459,176
| | |
$
|
453,684
| | |
$
|
458,666
| | |
$
|
1,822,357
| | |
3.3
| |
| |
Hospice
| | |
|
176,426
|
| |
|
185,641
|
| |
|
188,575
|
| |
|
186,161
|
| |
|
736,803
|
| |
|
179,378
|
| |
|
185,281
|
| |
|
188,414
|
| |
|
190,370
|
| |
|
743,443
|
| |
2.3
| |
| | | | | | | | | |
606,461
| | | |
624,197
| | | |
638,533
| | | |
630,234
| | | |
2,499,425
| | | |
630,209
| | | |
644,457
| | | |
642,098
| | | |
649,036
| | | |
2,565,800
| | |
3.0
| |
|
Hospital division
| | | |
654,098
| | | |
645,406
| | | |
588,943
| | | |
545,864
| | | |
2,434,311
| | | |
556,646
| | | |
540,809
| | | |
503,138
| | | |
505,782
| | | |
2,106,375
| | |
(7.3
|
)
|
|
Kindred Rehabilitation Services:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Kindred Hospital Rehabilitation Services
| | | |
167,045
| | | |
171,095
| | | |
170,308
| | | |
171,352
| | | |
679,800
| | | |
178,115
| | | |
178,439
| | | |
173,638
| | | |
173,723
| | | |
703,915
| | |
1.4
| |
| |
RehabCare
| | |
|
202,023
|
| |
|
193,964
|
| |
|
190,756
|
| |
|
190,053
|
| |
|
776,796
|
| |
|
198,126
|
| |
|
194,715
|
| |
|
179,774
|
| |
|
172,852
|
| |
|
745,467
|
| |
(9.1
|
)
|
| | | | | | | | |
|
369,068
|
| |
|
365,059
|
| |
|
361,064
|
| |
|
361,405
|
| |
|
1,456,596
|
| |
|
376,241
|
| |
|
373,154
|
| |
|
353,412
|
| |
|
346,575
|
| |
|
1,449,382
|
| |
(4.1
|
)
|
| | | | | | | | | |
1,629,627
| | | |
1,634,662
| | | |
1,588,540
| | | |
1,537,503
| | | |
6,390,332
| | | |
1,563,096
| | | |
1,558,420
| | | |
1,498,648
| | | |
1,501,393
| | | |
6,121,557
| | |
(2.3
|
)
|
|
Eliminations
| | |
|
(25,413
|
)
| |
|
(25,493
|
)
| |
|
(24,480
|
)
| |
|
(22,417
|
)
| |
|
(97,803
|
)
| |
|
(23,606
|
)
| |
|
(22,589
|
)
| |
|
(20,828
|
)
| |
|
(20,411
|
)
| |
|
(87,434
|
)
| |
(8.9
|
)
|
| | | | | | | | |
$
|
1,604,214
|
| |
$
|
1,609,169
|
| |
$
|
1,564,060
|
| |
$
|
1,515,086
|
| |
$
|
6,292,529
|
| |
$
|
1,539,490
|
| |
$
|
1,535,831
|
| |
$
|
1,477,820
|
| |
$
|
1,480,982
|
| |
$
|
6,034,123
|
| |
(2.3
|
)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
(a)
|
See reconciliation of GAAP results to non-GAAP results beginning on
page 14. During the first quarter of 2017, the Company revised its
definitions of “core” non-GAAP measures. See “Non-GAAP Measures”
beginning on page 14 for a discussion regarding the revised
definitions. For comparability, core results for 2016 were revised
to conform to the current year presentation.
|
| |
| |
|
n/m = not meaningful.
|
|
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Condensed Consolidated and Business Segment Data (Continued) |
(Unaudited) |
(In thousands, except statistics)
|
| |
|
|
|
| |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fourth quarter |
| | | | | | | | | 2016 Quarters | | | | 2017 Quarters | | | | % change v. |
| | | | | | | | | First | | Second | | Third | | Fourth | | Year | | First | | Second | | Third | | Fourth | | Year | | prior year |
Segment adjusted operating income (loss): | | | | | | | | | | | | | | | | | | | | | |
|
Kindred at Home:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Home health
| | |
$
|
66,941
| | |
$
|
76,030
| | |
$
|
75,073
| | |
$
|
61,487
| | |
$
|
279,531
| | |
$
|
63,750
| | |
$
|
76,592
| | |
$
|
66,431
| | |
$
|
69,445
| | |
$
|
276,218
| | |
12.9
| |
| |
Hospice
| | |
|
24,866
|
| |
|
31,329
|
| |
|
31,326
|
| |
|
28,805
|
| |
|
116,326
|
| |
|
27,581
|
| |
|
32,784
|
| |
|
34,761
|
| |
|
34,147
|
| |
|
129,273
|
| |
18.5
| |
| | | | | | | | | |
91,807
| | | |
107,359
| | | |
106,399
| | | |
90,292
| | | |
395,857
| | | |
91,331
| | | |
109,376
| | | |
101,192
| | | |
103,592
| | | |
405,491
| | |
14.7
| |
|
Hospital division
| | | |
136,416
| | | |
127,510
| | | |
83,940
| | | |
93,778
| | | |
441,644
| | | |
93,438
| | | |
91,580
| | | |
61,455
| | | |
91,014
| | | |
337,487
| | |
(2.9
|
)
|
|
Kindred Rehabilitation Services:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Kindred Hospital Rehabilitation Services
| | | |
48,119
| | | |
50,729
| | | |
49,759
| | | |
49,728
| | | |
198,335
| | | |
51,760
| | | |
53,422
| | | |
49,151
| | | |
49,059
| | | |
203,392
| | |
(1.3
|
)
|
| |
RehabCare
| | |
|
9,762
|
| |
|
11,158
|
| |
|
7,524
|
| |
|
4,142
|
| |
|
32,586
|
| |
|
8,704
|
| |
|
(13,492
|
)
| |
|
8,298
|
| |
|
3,374
|
| |
|
6,884
|
| |
(18.5
|
)
|
| | | | | | | | | |
57,881
| | | |
61,887
| | | |
57,283
| | | |
53,870
| | | |
230,921
| | | |
60,464
| | | |
39,930
| | | |
57,449
| | | |
52,433
| | | |
210,276
| | |
(2.7
|
)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Core segment adjusted operating income (a): | | | | | | | | | | | | | | | | | | | |
|
Kindred at Home:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Home health
| | |
$
|
65,803
| | |
$
|
75,859
| | |
$
|
75,073
| | |
$
|
61,185
| | |
$
|
277,920
| | |
$
|
63,750
| | |
$
|
75,797
| | |
$
|
66,431
| | |
$
|
69,445
| | |
$
|
275,423
| | |
13.5
| |
| |
Hospice
| | |
|
24,866
|
| |
|
31,329
|
| |
|
31,326
|
| |
|
27,668
|
| |
|
115,189
|
| |
|
27,581
|
| |
|
32,784
|
| |
|
34,761
|
| |
|
34,147
|
| |
|
129,273
|
| |
23.4
| |
| | | | | | | | | |
90,669
| | | |
107,188
| | | |
106,399
| | | |
88,853
| | | |
393,109
| | | |
91,331
| | | |
108,581
| | | |
101,192
| | | |
103,592
| | | |
404,696
| | |
16.6
| |
|
Hospital division
| | | |
136,416
| | | |
127,510
| | | |
83,940
| | | |
93,148
| | | |
441,014
| | | |
93,438
| | | |
90,572
| | | |
61,455
| | | |
91,014
| | | |
336,479
| | |
(2.3
|
)
|
|
Kindred Rehabilitation Services:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Kindred Hospital Rehabilitation Services
| | | |
48,119
| | | |
50,729
| | | |
49,759
| | | |
49,728
| | | |
198,335
| | | |
51,760
| | | |
53,422
| | | |
49,151
| | | |
49,059
| | | |
203,392
| | |
(1.3
|
)
|
| |
RehabCare
| | |
|
9,762
|
| |
|
11,158
|
| |
|
7,524
|
| |
|
4,142
|
| |
|
32,586
|
| |
|
8,704
|
| |
|
11,812
|
| |
|
6,055
|
| |
|
3,374
|
| |
|
29,945
|
| |
(18.5
|
)
|
| | | | | | | | | |
57,881
| | | |
61,887
| | | |
57,283
| | | |
53,870
| | | |
230,921
| | | |
60,464
| | | |
65,234
| | | |
55,206
| | | |
52,433
| | | |
233,337
| | |
(2.7
|
)
|
|
Support center expenses
| | | |
(71,159
|
)
| | |
(64,265
|
)
| | |
(59,535
|
)
| | |
(54,334
|
)
| | |
(249,293
|
)
| | |
(60,014
|
)
| | |
(62,572
|
)
| | |
(60,323
|
)
| | |
(55,692
|
)
| | |
(238,601
|
)
| |
2.5
| |
|
Litigation contingency expense
| | | |
(885
|
)
| | |
(180
|
)
| | |
-
| | | |
-
| | | |
(1,065
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
|
Transaction costs
| | |
|
(82
|
)
| |
|
(172
|
)
| |
|
(1,732
|
)
| |
|
(387
|
)
| |
|
(2,373
|
)
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| | |
| | | | | | | | |
$
|
212,840
|
| |
$
|
231,968
|
| |
$
|
186,355
|
| |
$
|
181,150
|
| |
$
|
812,313
|
| |
$
|
185,219
|
| |
$
|
201,815
|
| |
$
|
157,530
|
| |
$
|
191,347
|
| |
$
|
735,911
|
| |
5.6
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Segment adjusted operating income (loss) margin: | | | | | | | | | | | | | | | | | | | |
|
Kindred at Home:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Home health
| | | |
15.6
| | | |
17.3
| | | |
16.7
| | | |
13.8
| | | |
15.9
| | | |
14.1
| | | |
16.7
| | | |
14.6
| | | |
15.1
| | | |
15.2
| | |
1.3
| |
| |
Hospice
| | | |
14.1
| | | |
16.9
| | | |
16.6
| | | |
15.5
| | | |
15.8
| | | |
15.4
| | | |
17.7
| | | |
18.4
| | | |
17.9
| | | |
17.4
| | |
2.4
| |
| | |
Kindred at Home
| | | |
15.1
| | | |
17.2
| | | |
16.7
| | | |
14.3
| | | |
15.8
| | | |
14.5
| | | |
17.0
| | | |
15.8
| | | |
16.0
| | | |
15.8
| | |
1.7
| |
|
Hospital division
| | | |
20.9
| | | |
19.8
| | | |
14.3
| | | |
17.2
| | | |
18.1
| | | |
16.8
| | | |
16.9
| | | |
12.2
| | | |
18.0
| | | |
16.0
| | |
0.8
| |
|
Kindred Rehabilitation Services:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Kindred Hospital Rehabilitation Services
| | | |
28.8
| | | |
29.6
| | | |
29.2
| | | |
29.0
| | | |
29.2
| | | |
29.1
| | | |
29.9
| | | |
28.3
| | | |
28.2
| | | |
28.9
| | |
(0.8
|
)
|
| |
RehabCare
| | | |
4.8
| | | |
5.8
| | | |
3.9
| | | |
2.2
| | | |
4.2
| | | |
4.4
| | | |
(6.9
|
)
| | |
4.6
| | | |
2.0
| | | |
0.9
| | |
(0.2
|
)
|
| | |
Kindred Rehabilitation Services
| | | |
15.7
| | | |
17.0
| | | |
15.9
| | | |
14.9
| | | |
15.9
| | | |
16.1
| | | |
10.7
| | | |
16.3
| | | |
15.1
| | | |
14.5
| | |
0.2
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Core segment adjusted operating income margin (a): | | | | | | | | | | | | | | | | | | |
|
Kindred at Home:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Home health
| | | |
15.3
| | | |
17.3
| | | |
16.7
| | | |
13.8
| | | |
15.8
| | | |
14.1
| | | |
16.5
| | | |
14.6
| | | |
15.1
| | | |
15.1
| | |
1.3
| |
| |
Hospice
| | | |
14.1
| | | |
16.9
| | | |
16.6
| | | |
14.9
| | | |
15.6
| | | |
15.4
| | | |
17.7
| | | |
18.4
| | | |
17.9
| | | |
17.4
| | |
3.0
| |
| | |
Kindred at Home
| | | |
15.0
| | | |
17.2
| | | |
16.7
| | | |
14.1
| | | |
15.7
| | | |
14.5
| | | |
16.8
| | | |
15.8
| | | |
16.0
| | | |
15.8
| | |
1.9
| |
|
Hospital division
| | | |
20.9
| | | |
19.8
| | | |
14.3
| | | |
17.1
| | | |
18.1
| | | |
16.8
| | | |
16.7
| | | |
12.2
| | | |
18.0
| | | |
16.0
| | |
0.9
| |
|
Kindred Rehabilitation Services:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Kindred Hospital Rehabilitation Services
| | | |
28.8
| | | |
29.6
| | | |
29.2
| | | |
29.0
| | | |
29.2
| | | |
29.1
| | | |
29.9
| | | |
28.3
| | | |
28.2
| | | |
28.9
| | |
(0.8
|
)
|
| |
RehabCare
| | | |
4.8
| | | |
5.8
| | | |
3.9
| | | |
2.2
| | | |
4.2
| | | |
4.4
| | | |
6.1
| | | |
3.4
| | | |
2.0
| | | |
4.0
| | |
(0.2
|
)
|
| | |
Kindred Rehabilitation Services
| | | |
15.7
| | | |
17.0
| | | |
15.9
| | | |
14.9
| | | |
15.9
| | | |
16.1
| | | |
17.5
| | | |
15.6
| | | |
15.1
| | | |
16.1
| | |
0.2
| |
|
Consolidated
| | | |
13.3
| | | |
14.4
| | | |
11.9
| | | |
12.0
| | | |
12.9
| | | |
12.0
| | | |
13.1
| | | |
10.7
| | | |
12.9
| | | |
12.2
| | |
0.9
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
(a)
|
See reconciliation of GAAP results to non-GAAP results beginning
on page 14. During the first quarter of 2017, the Company revised
its definitions of “core” non-GAAP measures. See “Non-GAAP
Measures” beginning on page 14 for a discussion regarding the
revised definitions. For comparability, core results for 2016 were
revised to conform to the current year presentation.
|
| |
| |
|
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Condensed Business Segment Data |
(Unaudited) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fourth quarter |
| | | | | | | 2016 Quarters | | | | | | 2017 Quarters | | | | | | % change v. |
| | | | | | | First | | | Second | | | Third | | | Fourth | | | Year | | | First | | | Second | | | Third | | | Fourth | | | Year | | | prior year |
Kindred at Home: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Home Health:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
Sites of service (at end of period)
| | | |
384
| | | |
384
| | | |
395
| | | |
390
| | | | | | |
379
| | | |
377
| | | |
376
| | | |
375
| | | | | | |
| |
Revenue mix %:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Medicare
| | | |
79.8
| | | |
79.3
| | | |
78.1
| | | |
77.9
| | | |
78.8
| | | |
76.7
| | | |
75.7
| | | |
74.0
| | | |
73.8
| | | |
75.0
| | | |
| | |
Medicaid
| | | |
2.1
| | | |
2.1
| | | |
2.5
| | | |
1.9
| | | |
2.1
| | | |
1.7
| | | |
1.7
| | | |
1.7
| | | |
1.6
| | | |
1.7
| | | |
| | |
Commercial and other
| | | |
8.4
| | | |
8.2
| | | |
8.6
| | | |
10.6
| | | |
8.9
| | | |
11.5
| | | |
11.4
| | | |
12.7
| | | |
12.7
| | | |
12.1
| | | |
| | |
Commercial paid at episodic rates
| | | |
9.7
| | | |
10.4
| | | |
10.8
| | | |
9.6
| | | |
10.2
| | | |
10.1
| | | |
11.2
| | | |
11.6
| | | |
11.9
| | | |
11.2
| | | |
| |
Episodic revenues ($ 000s)
| | |
$
|
325,821
| | |
$
|
332,193
| | |
$
|
332,562
| | |
$
|
323,398
| | |
$
|
1,313,974
| | |
$
|
326,881
| | |
$
|
334,420
| | |
$
|
320,279
| | |
$
|
332,595
| | |
$
|
1,314,175
| | |
2.8
| |
| |
Total admissions
| | | |
88,696
| | | |
87,084
| | | |
86,761
| | | |
87,148
| | | |
349,689
| | | |
94,510
| | | |
89,018
| | | |
87,156
| | | |
88,224
| | | |
358,908
| | |
1.2
| |
| |
Same-store total admissions
| | | |
87,394
| | | |
85,922
| | | |
85,511
| | | |
86,619
| | | |
345,446
| | | |
93,922
| | | |
88,300
| | | |
86,312
| | | |
88,004
| | | |
356,538
| | |
1.6
| |
| |
Total episodic admissions
| | | |
71,426
| | | |
70,212
| | | |
69,219
| | | |
67,501
| | | |
278,358
| | | |
73,270
| | | |
69,657
| | | |
67,790
| | | |
67,858
| | | |
278,575
| | |
0.5
| |
| |
Same-store total episodic admissions
| | | |
70,416
| | | |
69,317
| | | |
68,285
| | | |
67,119
| | | |
275,137
| | | |
72,911
| | | |
69,207
| | | |
67,191
| | | |
67,650
| | | |
276,959
| | |
0.8
| |
| |
Medicare episodic admissions
| | | |
62,011
| | | |
60,730
| | | |
59,823
| | | |
59,540
| | | |
242,104
| | | |
62,404
| | | |
58,575
| | | |
56,772
| | | |
56,829
| | | |
234,580
| | |
(4.6
|
)
|
| |
Total episodes
| | | |
113,887
| | | |
113,278
| | | |
113,256
| | | |
111,164
| | | |
451,585
| | | |
114,964
| | | |
113,579
| | | |
111,488
| | | |
111,411
| | | |
451,442
| | |
0.2
| |
| |
Episodes per admission
| | | |
1.59
| | | |
1.61
| | | |
1.64
| | | |
1.65
| | | |
1.62
| | | |
1.57
| | | |
1.63
| | | |
1.64
| | | |
1.64
| | | |
1.62
| | |
(0.6
|
)
|
| |
Revenue per episode
| | |
$
|
2,861
| | |
$
|
2,933
| | |
$
|
2,936
| | |
$
|
2,909
| | |
$
|
2,910
| | |
$
|
2,843
| | |
$
|
2,944
| | |
$
|
2,873
| | |
$
|
2,985
| | |
$
|
2,911
| | |
2.6
| |
|
Hospice:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
Sites of service (at end of period)
| | | |
177
| | | |
177
| | | |
185
| | | |
183
| | | | | | |
180
| | | |
177
| | | |
178
| | | |
178
| | | | | | |
| |
Admissions
| | | |
13,234
| | | |
13,149
| | | |
12,916
| | | |
12,660
| | | |
51,959
| | | |
13,649
| | | |
12,561
| | | |
12,236
| | | |
12,274
| | | |
50,720
| | |
(3.0
|
)
|
| |
Same-store admissions
| | | |
12,761
| | | |
12,743
| | | |
12,541
| | | |
12,413
| | | |
50,458
| | | |
13,332
| | | |
12,363
| | | |
11,997
| | | |
12,162
| | | |
49,854
| | |
(2.0
|
)
|
| |
Average length of stay
| | | |
92
| | | |
91
| | | |
98
| | | |
100
| | | |
95
| | | |
96
| | | |
94
| | | |
97
| | | |
96
| | | |
96
| | |
(4.0
|
)
|
| |
Patient days
| | | |
1,183,908
| | | |
1,238,584
| | | |
1,277,125
| | | |
1,246,152
| | | |
4,945,769
| | | |
1,193,061
| | | |
1,215,619
| | | |
1,239,094
| | | |
1,243,574
| | | |
4,891,348
| | |
(0.2
|
)
|
| |
Average daily census
| | | |
13,010
| | | |
13,611
| | | |
13,882
| | | |
13,545
| | | |
13,513
| | | |
13,256
| | | |
13,358
| | | |
13,468
| | | |
13,517
| | | |
13,401
| | |
(0.2
|
)
|
| |
Revenue per patient day
| | |
$
|
149
| | |
$
|
150
| | |
$
|
148
| | |
$
|
149
| | |
$
|
149
| | |
$
|
150
| | |
$
|
152
| | |
$
|
152
| | |
$
|
153
| | |
$
|
152
| | |
2.7
| |
|
Community care and other revenues (included in Home Health
business segment) ($ 000s)
| | |
$
|
66,305
| | |
$
|
68,229
| | |
$
|
75,978
| | |
$
|
74,875
| | |
$
|
285,387
| | |
$
|
74,095
| | |
$
|
74,222
| | |
$
|
79,720
| | |
$
|
69,974
| | |
$
|
298,011
| | |
(6.5
|
)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Kindred Rehabilitation Services: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Kindred Hospital Rehabilitation Services:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
Freestanding IRFs:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
End of period data:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Number of IRFs
| | | |
19
| | | |
19
| | | |
19
| | | |
19
| | | | | | |
19
| | | |
19
| | | |
19
| | | |
19
| | | | | | |
| | | |
Number of licensed beds
| | | |
969
| | | |
969
| | | |
969
| | | |
995
| | | | | | |
995
| | | |
995
| | | |
995
| | | |
995
| | | | | | |
| | |
Discharges (a)
| | | |
4,448
| | | |
4,646
| | | |
4,644
| | | |
4,671
| | | |
18,409
| | | |
4,775
| | | |
4,766
| | | |
4,755
| | | |
5,011
| | | |
19,307
| | |
7.3
| |
| | |
Same-hospital discharges (a)
| | | |
4,295
| | | |
4,535
| | | |
4,546
| | | |
4,538
| | | |
17,914
| | | |
4,393
| | | |
4,517
| | | |
4,477
| | | |
4,671
| | | |
18,058
| | |
2.9
| |
| | |
Occupancy % (a)
| | | |
70.6
| | | |
70.6
| | | |
68.8
| | | |
66.5
| | | |
69.1
| | | |
71.4
| | | |
70.0
| | | |
68.8
| | | |
71.2
| | | |
70.4
| | |
7.1
| |
| | |
Average length of stay (a)
| | | |
13.2
| | | |
12.9
| | | |
12.7
| | | |
12.6
| | | |
12.8
| | | |
12.8
| | | |
12.8
| | | |
12.7
| | | |
12.5
| | | |
12.7
| | |
(0.8
|
)
|
| | |
Revenue per discharge (a)
| | |
$
|
19,731
| | |
$
|
19,318
| | |
$
|
19,599
| | |
$
|
19,486
| | |
$
|
19,531
| | |
$
|
20,097
| | |
$
|
20,620
| | |
$
|
20,329
| | |
$
|
19,523
| | |
$
|
20,134
| | |
0.2
| |
| |
Contract services:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Sites of service (at end of period):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Inpatient rehabilitation units
| | | |
104
| | | |
105
| | | |
104
| | | |
102
| | | | | | |
101
| | | |
102
| | | |
101
| | | |
99
| | | | | | |
| | | |
LTAC hospitals
| | | |
119
| | | |
121
| | | |
120
| | | |
119
| | | | | | |
119
| | | |
116
| | | |
110
| | | |
104
| | | | | | |
| | | |
Sub-acute units
| | | |
7
| | | |
7
| | | |
7
| | | |
5
| | | | | | |
7
| | | |
6
| | | |
6
| | | |
4
| | | | | | |
| | | |
Outpatient units
| | |
|
139
| | |
|
138
| | |
|
139
| | |
|
132
| | | | | |
|
129
| | |
|
121
| | |
|
123
| | |
|
123
| | | | | | |
| | | | | | |
|
369
| | |
|
371
| | |
|
370
| | |
|
358
| | | | | |
|
356
| | |
|
345
| | |
|
340
| | |
|
330
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | |
Revenue per site
| | |
$
|
211,417
| | |
$
|
215,798
| | |
$
|
210,810
| | |
$
|
220,733
| | |
$
|
858,758
| | |
$
|
227,100
| | |
$
|
228,534
| | |
$
|
222,504
| | |
$
|
225,919
| | |
$
|
904,057
| | |
2.3
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
RehabCare:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
Sites of service (at end of period)
| | | |
1,767
| | | |
1,759
| | | |
1,754
| | | |
1,718
| | | | | | |
1,703
| | | |
1,734
| | | |
1,624
| | | |
1,616
| | | | | | |
| |
Revenue per site
| | |
$
|
114,331
| | |
$
|
110,270
| | |
$
|
108,755
| | |
$
|
110,624
| | |
$
|
443,980
| | |
$
|
116,340
| | |
$
|
112,292
| | |
$
|
110,699
| | |
$
|
106,963
| | |
$
|
446,294
| | |
(3.3
|
)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(a)
|
Excludes non-consolidating IRF.
|
|
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Condensed Business Segment Data (Continued) |
(Unaudited) |
|
|
|
| |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Fourth quarter |
| | | | | | | 2016 Quarters | | | | 2017 Quarters | | | | % change v. |
| | | | | | | First | | Second | | Third | | Fourth | | Year | | First | | Second | | Third | | Fourth | | Year | | prior year |
Hospitals (excluding sub-acute units and skilled nursing
facility): | | | | | | | | | | | | | | | | | | | | | |
|
End of period data:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Number of transitional care hospitals
| | | |
95
| | |
97
| | |
94
| | |
82
| | | | | |
82
| | | |
81
| | | |
77
| | | |
75
| | | | | |
| |
Number of licensed beds
| | | |
7,089
| | |
7,067
| | |
6,890
| | |
6,107
| | | | | |
6,107
| | | |
6,041
| | | |
5,797
| | | |
5,553
| | | | | |
|
Revenues (000s)
| | |
$
|
643,299
| |
$
|
633,695
| |
$
|
575,323
| |
$
|
530,746
| | |
$
|
2,383,063
| |
$
|
540,280
| | |
$
|
525,458
| | |
$
|
487,012
| | |
$
|
489,621
| | |
$
|
2,042,371
| | |
(7.7
|
)
|
|
Revenue mix %:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Medicare
| | | |
57.8
| | |
55.5
| | |
54.6
| | |
53.5
| | | |
55.5
| | |
52.8
| | | |
50.3
| | | |
50.6
| | | |
50.2
| | | |
51.0
| | | |
| |
Medicaid
| | | |
4.2
| | |
4.2
| | |
4.0
| | |
4.5
| | | |
4.2
| | |
3.9
| | | |
5.0
| | | |
4.3
| | | |
4.1
| | | |
4.3
| | | |
| |
Medicare Advantage
| | | |
11.5
| | |
12.0
| | |
12.1
| | |
11.0
| | | |
11.7
| | |
12.2
| | | |
12.3
| | | |
12.3
| | | |
13.5
| | | |
12.6
| | | |
| |
Medicaid Managed
| | | |
5.6
| | |
6.3
| | |
7.3
| | |
8.0
| | | |
6.7
| | |
9.1
| | | |
9.1
| | | |
10.1
| | | |
10.1
| | | |
9.6
| | | |
| |
Commercial insurance and other
| | | |
20.9
| | |
22.0
| | |
22.0
| | |
23.0
| | | |
21.9
| | |
22.0
| | | |
23.3
| | | |
22.7
| | | |
22.1
| | | |
22.5
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Patient criteria data:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Revenues:
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
Compliant patients
| | | | | | | | | |
88.5
|
%
| | | | |
86.0
|
%
| | |
88.3
|
%
| | |
89.1
|
%
| | |
91.8
|
%
| | |
88.7
|
%
| | |
| | |
Site neutral
| | | | | | | | | |
11.5
|
%
| | | | |
14.0
|
%
| | |
11.7
|
%
| | |
10.9
|
%
| | |
8.2
|
%
| | |
11.3
|
%
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
Revenues per patient day:
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
Compliant patients
| | | | | | | | |
$
|
1,853
| | | | |
$
|
1,816
| | |
$
|
1,806
| | |
$
|
1,799
| | |
$
|
1,835
| | |
$
|
1,814
| | | |
| | |
Site neutral
| | | | | | | | | |
926
| | | | | |
1,041
| | | |
1,053
| | | |
1,067
| | | |
1,047
| | | |
1,051
| | | |
| | |
Total
| | | | | | | | | |
1,662
| | | | | |
1,645
| | | |
1,667
| | | |
1,674
| | | |
1,729
| | | |
1,677
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Admissions:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Medicare
| | | |
8,919
| | |
8,253
| | |
7,861
| | |
7,351
| | | |
32,384
| | |
7,529
| | | |
6,743
| | | |
6,073
| | | |
5,862
| | | |
26,207
| | |
(20.3
|
)
|
| |
Medicaid
| | | |
463
| | |
386
| | |
375
| | |
336
| | | |
1,560
| | |
354
| | | |
381
| | | |
362
| | | |
287
| | | |
1,384
| | |
(14.6
|
)
|
| |
Medicare Advantage
| | | |
1,453
| | |
1,382
| | |
1,327
| | |
1,210
| | | |
5,372
| | |
1,354
| | | |
1,239
| | | |
1,197
| | | |
1,225
| | | |
5,015
| | |
1.2
| |
| |
Medicaid Managed
| | | |
733
| | |
768
| | |
861
| | |
787
| | | |
3,149
| | |
851
| | | |
903
| | | |
861
| | | |
875
| | | |
3,490
| | |
11.2
| |
| |
Commercial insurance and other
| | |
|
1,871
| |
|
1,807
| |
|
1,727
| |
|
1,488
|
| |
|
6,893
| |
|
1,614
|
| |
|
1,608
|
| |
|
1,483
|
| |
|
1,401
|
| |
|
6,106
|
| |
(5.8
|
)
|
| | | | | | |
|
13,439
| |
|
12,596
| |
|
12,151
| |
|
11,172
|
| |
|
49,358
| |
|
11,702
|
| |
|
10,874
|
| |
|
9,976
|
| |
|
9,650
|
| |
|
42,202
|
| |
(13.6
|
)
|
|
Patient days:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Medicare
| | | |
229,004
| | |
219,013
| | |
202,482
| | |
186,290
| | | |
836,789
| | |
187,738
| | | |
173,916
| | | |
158,083
| | | |
149,892
| | | |
669,629
| | |
(19.5
|
)
|
| |
Medicaid
| | | |
21,134
| | |
19,409
| | |
16,781
| | |
12,181
| | | |
69,505
| | |
13,334
| | | |
13,333
| | | |
13,429
| | | |
12,048
| | | |
52,144
| | |
(1.1
|
)
|
| |
Medicare Advantage
| | | |
45,760
| | |
47,697
| | |
43,241
| | |
37,526
| | | |
174,224
| | |
41,020
| | | |
40,555
| | | |
38,338
| | | |
41,488
| | | |
161,401
| | |
10.6
| |
| |
Medicaid Managed
| | | |
25,341
| | |
27,267
| | |
28,534
| | |
29,275
| | | |
110,417
| | |
32,713
| | | |
32,635
| | | |
31,249
| | | |
32,389
| | | |
128,986
| | |
10.6
| |
| |
Commercial insurance and other
| | |
|
62,769
| |
|
63,009
| |
|
59,856
| |
|
54,148
|
| |
|
239,782
| |
|
53,695
|
| |
|
54,809
|
| |
|
49,895
|
| |
|
47,355
|
| |
|
205,754
|
| |
(12.5
|
)
|
| | | | | | |
|
384,008
| |
|
376,395
| |
|
350,894
| |
|
319,420
|
| |
|
1,430,717
| |
|
328,500
|
| |
|
315,248
|
| |
|
290,994
|
| |
|
283,172
|
| |
|
1,217,914
|
| |
(11.3
|
)
|
|
Average length of stay:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Medicare
| | | |
25.7
| | |
26.5
| | |
25.8
| | |
25.3
| | | |
25.8
| | |
24.9
| | | |
25.8
| | | |
26.0
| | | |
25.6
| | | |
25.6
| | |
1.2
| |
| |
Medicaid
| | | |
45.6
| | |
50.3
| | |
44.7
| | |
36.3
| | | |
44.6
| | |
37.7
| | | |
35.0
| | | |
37.1
| | | |
42.0
| | | |
37.7
| | |
15.7
| |
| |
Medicare Advantage
| | | |
31.5
| | |
34.5
| | |
32.6
| | |
31.0
| | | |
32.4
| | |
30.3
| | | |
32.7
| | | |
32.0
| | | |
33.9
| | | |
32.2
| | |
9.4
| |
| |
Medicaid Managed
| | | |
34.6
| | |
35.5
| | |
33.1
| | |
37.2
| | | |
35.1
| | |
38.4
| | | |
36.1
| | | |
36.3
| | | |
37.0
| | | |
37.0
| | |
(0.5
|
)
|
| |
Commercial insurance and other
| | | |
33.5
| | |
34.9
| | |
34.7
| | |
36.4
| | | |
34.8
| | |
33.3
| | | |
34.1
| | | |
33.6
| | | |
33.8
| | | |
33.7
| | |
(7.1
|
)
|
| |
Weighted average
| | | |
28.6
| | |
29.9
| | |
28.9
| | |
28.6
| | | |
29.0
| | |
28.1
| | | |
29.0
| | | |
29.2
| | | |
29.3
| | | |
28.9
| | |
2.4
| |
|
Revenues per admission:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Medicare
| | |
$
|
41,717
| |
$
|
42,579
| |
$
|
39,945
| |
$
|
38,602
| | |
$
|
40,800
| |
$
|
37,867
| | |
$
|
39,219
| | |
$
|
40,577
| | |
$
|
41,904
| | |
$
|
39,746
| | |
8.6
| |
| |
Medicaid
| | | |
57,928
| | |
69,797
| | |
61,338
| | |
70,333
| | | |
64,356
| | |
60,091
| | | |
69,304
| | | |
57,365
| | | |
70,352
| | | |
64,042
| | |
-
| |
| |
Medicare Advantage
| | | |
51,080
| | |
55,105
| | |
52,363
| | |
48,387
| | | |
51,826
| | |
48,555
| | | |
51,958
| | | |
50,301
| | | |
53,834
| | | |
51,102
| | |
11.3
| |
| |
Medicaid Managed
| | | |
49,287
| | |
51,696
| | |
48,631
| | |
54,238
| | | |
50,932
| | |
57,736
| | | |
53,159
| | | |
57,172
| | | |
56,881
| | | |
56,198
| | |
4.9
| |
| |
Commercial insurance and other
| | | |
71,651
| | |
77,193
| | |
73,515
| | |
82,066
| | | |
75,819
| | |
73,750
| | | |
76,007
| | | |
74,435
| | | |
77,140
| | | |
75,289
| | |
(6.0
|
)
|
| |
Weighted average
| | | |
47,868
| | |
50,309
| | |
47,348
| | |
47,507
| | | |
48,281
| | |
46,170
| | | |
48,322
| | | |
48,818
| | | |
50,738
| | | |
48,395
| | |
6.8
| |
|
Revenues per patient day:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Medicare
| | |
$
|
1,625
| |
$
|
1,605
| |
$
|
1,551
| |
$
|
1,523
| | |
$
|
1,579
| |
$
|
1,519
| | |
$
|
1,521
| | |
$
|
1,559
| | |
$
|
1,639
| | |
$
|
1,556
| | |
7.6
| |
| |
Medicaid
| | | |
1,269
| | |
1,388
| | |
1,371
| | |
1,940
| | | |
1,444
| | |
1,595
| | | |
1,980
| | | |
1,546
| | | |
1,676
| | | |
1,700
| | |
(13.6
|
)
|
| |
Medicare Advantage
| | | |
1,622
| | |
1,597
| | |
1,607
| | |
1,560
| | | |
1,598
| | |
1,603
| | | |
1,587
| | | |
1,571
| | | |
1,590
| | | |
1,588
| | |
1.9
| |
| |
Medicaid Managed
| | | |
1,426
| | |
1,456
| | |
1,467
| | |
1,458
| | | |
1,453
| | |
1,502
| | | |
1,471
| | | |
1,575
| | | |
1,537
| | | |
1,521
| | |
5.4
| |
| |
Commercial insurance and other
| | | |
2,136
| | |
2,214
| | |
2,121
| | |
2,255
| | | |
2,180
| | |
2,217
| | | |
2,230
| | | |
2,212
| | | |
2,282
| | | |
2,234
| | |
1.2
| |
| |
Weighted average
| | | |
1,675
| | |
1,684
| | |
1,640
| | |
1,662
| | | |
1,666
| | |
1,645
| | | |
1,667
| | | |
1,674
| | | |
1,729
| | | |
1,677
| | |
4.0
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Medicare case mix index (discharged patients only)
| | | |
1.163
| | |
1.179
| | |
1.172
| | |
1.153
| | | |
1.169
| | |
1.172
| | | |
1.171
| | | |
1.180
| | | |
1.177
| | | |
1.178
| | |
2.1
| |
|
Average daily census
| | | |
4,220
| | |
4,136
| | |
3,814
| | |
3,472
| | | |
3,909
| | |
3,650
| | | |
3,464
| | | |
3,163
| | | |
3,078
| | | |
3,337
| | |
(11.3
|
)
|
|
Occupancy %
| | | |
68.0
| | |
67.5
| | |
61.6
| | |
64.1
| | | |
65.1
| | |
67.6
| | | |
64.3
| | | |
59.9
| | | |
61.1
| | | |
63.3
| | |
(4.7
|
)
|
|
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Condensed Business Segment Data (Continued) |
(Unaudited) |
| |
|
| |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Fourth quarter |
| | | | | | | 2016 Quarters | | | | 2017 Quarters | | | | % change v. |
| | | | | | | First | | Second | | Third | | Fourth | | Year | | First | | Second | | Third | | Fourth | | Year | | prior year |
Same-hospital data (a): | | | | | | | | | | | | | | | | | | | | | | | |
|
End of period data:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Number of transitional care hospitals
| | | |
72
| | |
72
| | |
75
| | |
75
| | | | | |
72
| | | |
72
| | | |
75
| | | |
75
| | | | | |
| |
Number of licensed beds
| | | |
5,436
| | |
5,436
| | |
5,553
| | |
5,553
| | | | | |
5,436
| | | |
5,436
| | | |
5,553
| | | |
5,553
| | | | | |
|
Revenues (000s)
| | |
$
|
531,815
| |
$
|
527,578
| |
$
|
493,480
| |
$
|
504,871
| | |
$
|
2,057,744
| |
$
|
504,135
| | |
$
|
492,002
| | |
$
|
476,356
| | |
$
|
482,677
| | |
$
|
1,955,170
| | |
(4.4
|
)
|
|
Revenue mix %:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Medicare
| | | |
58.1
| | |
55.2
| | |
53.8
| | |
53.3
| | | |
55.2
| | |
52.2
| | | |
50.2
| | | |
50.6
| | | |
50.6
| | | |
50.9
| | | |
| |
Medicaid
| | | |
3.6
| | |
3.6
| | |
3.5
| | |
4.4
| | | |
3.8
| | |
3.9
| | | |
4.9
| | | |
4.2
| | | |
3.4
| | | |
4.1
| | | |
| |
Medicare Advantage
| | | |
11.2
| | |
11.7
| | |
12.3
| | |
11.0
| | | |
11.5
| | |
12.0
| | | |
12.0
| | | |
12.4
| | | |
13.6
| | | |
12.5
| | | |
| |
Medicaid Managed
| | | |
6.0
| | |
6.9
| | |
8.0
| | |
8.4
| | | |
7.3
| | |
9.6
| | | |
9.5
| | | |
10.2
| | | |
10.3
| | | |
9.9
| | | |
| |
Commercial insurance and other
| | | |
21.1
| | |
22.6
| | |
22.4
| | |
22.9
| | | |
22.2
| | |
22.3
| | | |
23.4
| | | |
22.6
| | | |
22.1
| | | |
22.6
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Patient criteria data:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Revenues:
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
Compliant patients
| | | | | | | | | |
88.7
|
%
| | | | |
86.2
|
%
| | |
88.7
|
%
| | |
89.2
|
%
| | |
91.8
|
%
| | |
89.0
|
%
| | |
| | |
Site neutral
| | | | | | | | | |
11.3
|
%
| | | | |
13.8
|
%
| | |
11.3
|
%
| | |
10.8
|
%
| | |
8.2
|
%
| | |
11.0
|
%
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
Revenues per patient day:
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
Compliant patients
| | | | | | | | |
$
|
1,860
| | | | |
$
|
1,821
| | |
$
|
1,811
| | |
$
|
1,798
| | |
$
|
1,815
| | |
$
|
1,811
| | | |
| | |
Site neutral
| | | | | | | | | |
931
| | | | | |
1,057
| | | |
1,049
| | | |
1,064
| | | |
1,047
| | | |
1,055
| | | |
| | |
Total
| | | | | | | | | |
1,671
| | | | | |
1,656
| | | |
1,674
| | | |
1,674
| | | |
1,711
| | | |
1,678
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Admissions:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Medicare
| | | |
7,322
| | |
6,770
| | |
6,620
| | |
6,879
| | | |
27,591
| | |
6,884
| | | |
6,260
| | | |
5,942
| | | |
5,848
| | | |
24,934
| | |
(15.0
|
)
|
| |
Medicaid
| | | |
376
| | |
327
| | |
329
| | |
315
| | | |
1,347
| | |
325
| | | |
346
| | | |
342
| | | |
284
| | | |
1,297
| | |
(9.8
|
)
|
| |
Medicare Advantage
| | | |
1,148
| | |
1,073
| | |
1,118
| | |
1,131
| | | |
4,470
| | |
1,239
| | | |
1,137
| | | |
1,181
| | | |
1,222
| | | |
4,779
| | |
8.0
| |
| |
Medicaid Managed
| | | |
625
| | |
688
| | |
778
| | |
780
| | | |
2,871
| | |
827
| | | |
852
| | | |
843
| | | |
875
| | | |
3,397
| | |
12.2
| |
| |
Commercial insurance and other
| | |
|
1,477
| |
|
1,450
| |
|
1,385
| |
|
1,386
|
| |
|
5,698
| |
|
1,484
|
| |
|
1,489
|
| |
|
1,450
|
| |
|
1,397
|
| |
|
5,820
|
| |
0.8
| |
| | | | | | |
|
10,948
| |
|
10,308
| |
|
10,230
| |
|
10,491
|
| |
|
41,977
| |
|
10,759
|
| |
|
10,084
|
| |
|
9,758
|
| |
|
9,626
|
| |
|
40,227
|
| |
(8.2
|
)
|
|
Patient days:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Medicare
| | | |
188,238
| | |
179,196
| | |
170,060
| | |
175,336
| | | |
712,830
| | |
172,186
| | | |
161,435
| | | |
154,553
| | | |
149,524
| | | |
637,698
| | |
(14.7
|
)
|
| |
Medicaid
| | | |
13,731
| | |
12,381
| | |
11,211
| | |
11,396
| | | |
48,719
| | |
12,610
| | | |
12,378
| | | |
12,985
| | | |
11,777
| | | |
49,750
| | |
3.3
| |
| |
Medicare Advantage
| | | |
36,058
| | |
38,555
| | |
37,240
| | |
35,436
| | | |
147,289
| | |
37,573
| | | |
37,073
| | | |
37,678
| | | |
41,375
| | | |
153,699
| | |
16.8
| |
| |
Medicaid Managed
| | | |
22,124
| | |
24,571
| | |
26,384
| | |
29,047
| | | |
102,126
| | |
31,970
| | | |
31,606
| | | |
30,759
| | | |
32,355
| | | |
126,690
| | |
11.4
| |
| |
Commercial insurance and other
| | |
|
50,711
| |
|
51,293
| |
|
49,622
| |
|
50,861
|
| |
|
202,487
| |
|
50,116
|
| |
|
51,465
|
| |
|
48,591
|
| |
|
46,990
|
| |
|
197,162
|
| |
(7.6
|
)
|
| | | | | | |
|
310,862
| |
|
305,996
| |
|
294,517
| |
|
302,076
|
| |
|
1,213,451
| |
|
304,455
|
| |
|
293,957
|
| |
|
284,566
|
| |
|
282,021
|
| |
|
1,164,999
|
| |
(6.6
|
)
|
|
Average length of stay:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Medicare
| | | |
25.7
| | |
26.5
| | |
25.7
| | |
25.5
| | | |
25.8
| | |
25.0
| | | |
25.8
| | | |
26.0
| | | |
25.6
| | | |
25.6
| | |
0.4
| |
| |
Medicaid
| | | |
36.5
| | |
37.9
| | |
34.1
| | |
36.2
| | | |
36.2
| | |
38.8
| | | |
35.8
| | | |
38.0
| | | |
41.5
| | | |
38.4
| | |
14.6
| |
| |
Medicare Advantage
| | | |
31.4
| | |
35.9
| | |
33.3
| | |
31.3
| | | |
33.0
| | |
30.3
| | | |
32.6
| | | |
31.9
| | | |
33.9
| | | |
32.2
| | |
8.3
| |
| |
Medicaid Managed
| | | |
35.4
| | |
35.7
| | |
33.9
| | |
37.2
| | | |
35.6
| | |
38.7
| | | |
37.1
| | | |
36.5
| | | |
37.0
| | | |
37.3
| | |
(0.5
|
)
|
| |
Commercial insurance and other
| | | |
34.3
| | |
35.4
| | |
35.8
| | |
36.7
| | | |
35.5
| | |
33.8
| | | |
34.6
| | | |
33.5
| | | |
33.6
| | | |
33.9
| | |
(8.4
|
)
|
| |
Weighted average
| | | |
28.4
| | |
29.7
| | |
28.8
| | |
28.8
| | | |
28.9
| | |
28.3
| | | |
29.2
| | | |
29.2
| | | |
29.3
| | | |
29.0
| | |
1.7
| |
|
Revenues per admission:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Medicare
| | |
$
|
42,215
| |
$
|
43,048
| |
$
|
40,145
| |
$
|
39,130
| | |
$
|
41,154
| |
$
|
38,242
| | |
$
|
39,482
| | |
$
|
40,587
| | |
$
|
41,750
| | |
$
|
39,935
| | |
6.7
| |
| |
Medicaid
| | | |
50,166
| | |
58,447
| | |
52,583
| | |
69,628
| | | |
57,318
| | |
60,805
| | | |
70,237
| | | |
57,650
| | | |
57,482
| | | |
61,762
| | |
(17.4
|
)
|
| |
Medicare Advantage
| | | |
51,653
| | |
57,562
| | |
54,276
| | |
49,232
| | | |
53,115
| | |
49,018
| | | |
51,807
| | | |
50,163
| | | |
53,894
| | | |
51,211
| | |
9.5
| |
| |
Medicaid Managed
| | | |
51,395
| | |
52,601
| | |
50,491
| | |
54,389
| | | |
52,252
| | |
58,227
| | | |
54,789
| | | |
57,538
| | | |
56,854
| | | |
56,840
| | |
4.5
| |
| |
Commercial insurance and other
| | | |
76,121
| | |
82,125
| | |
79,752
| | |
83,445
| | | |
80,313
| | |
75,623
| | | |
77,205
| | | |
74,292
| | | |
76,301
| | | |
75,859
| | |
(8.6
|
)
|
| |
Weighted average
| | | |
48,576
| | |
51,181
| | |
48,239
| | |
48,124
| | | |
49,021
| | |
46,857
| | | |
48,790
| | | |
48,817
| | | |
50,143
| | | |
48,603
| | |
4.2
| |
|
Revenues per patient day:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Medicare
| | |
$
|
1,642
| |
$
|
1,626
| |
$
|
1,563
| |
$
|
1,535
| | |
$
|
1,593
| |
$
|
1,529
| | |
$
|
1,531
| | |
$
|
1,560
| | |
$
|
1,633
| | |
$
|
1,561
| | |
6.4
| |
| |
Medicaid
| | | |
1,374
| | |
1,544
| | |
1,543
| | |
1,925
| | | |
1,585
| | |
1,567
| | | |
1,963
| | | |
1,518
| | | |
1,386
| | | |
1,610
| | |
(28.0
|
)
|
| |
Medicare Advantage
| | | |
1,645
| | |
1,602
| | |
1,629
| | |
1,571
| | | |
1,612
| | |
1,616
| | | |
1,589
| | | |
1,572
| | | |
1,592
| | | |
1,592
| | |
1.3
| |
| |
Medicaid Managed
| | | |
1,452
| | |
1,473
| | |
1,489
| | |
1,460
| | | |
1,469
| | |
1,506
| | | |
1,477
| | | |
1,577
| | | |
1,538
| | | |
1,524
| | |
5.3
| |
| |
Commercial insurance and other
| | | |
2,217
| | |
2,322
| | |
2,226
| | |
2,274
| | | |
2,260
| | |
2,239
| | | |
2,234
| | | |
2,217
| | | |
2,268
| | | |
2,239
| | |
(0.3
|
)
|
| |
Weighted average
| | | |
1,711
| | |
1,724
| | |
1,676
| | |
1,671
| | | |
1,696
| | |
1,656
| | | |
1,674
| | | |
1,674
| | | |
1,711
| | | |
1,678
| | |
2.4
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Average daily census
| | | |
3,416
| | |
3,363
| | |
3,201
| | |
3,283
| | | |
3,315
| | |
3,383
| | | |
3,230
| | | |
3,093
| | | |
3,065
| | | |
3,192
| | |
(6.6
|
)
|
|
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
(a)
|
All historical statistics have been adjusted to present the ongoing
hospital division portfolio excluding three hospitals acquired
during the second quarter of 2016. See reconciliation of
same-hospital revenues to reported hospital revenues on page 18.
|
| |
Forward-Looking Statements |
|
This earnings 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 are often identified by
words such as “anticipate,” “approximate,” “believe,” “plan,”
“estimate,” “expect,” “project,” “could,” “would,” “should,” “will,”
“intend,” “hope,” “may,” “potential,” “upside,” “seek,” “continue,”
and other similar expressions.
|
|
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. 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. Risks and uncertainties related
to the Merger include, but are not limited to, the occurrence of any
event, change or other circumstance that could give rise to the
termination of the merger agreement; the failure of the parties to
satisfy conditions to completion of the Merger, including the
failure of the Company’s stockholders to approve the Merger or the
failure of the parties to obtain required regulatory approvals; the
risk that regulatory or other approvals are delayed or are subject
to terms and conditions that are not anticipated; changes in the
business or operating prospects of the Company or its businesses;
changes in healthcare and other laws and regulations; the impact of
the announcement of, or failure to complete, the Merger on the
Company’s relationships with employees, customers, vendors and other
business partners; and litigation related to the Merger. In
addition, these statements involve risks, uncertainties, and other
factors detailed from time to time in the Company’s Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K filed with the SEC.
|
|
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.
|
|
Non-GAAP Measures |
|
In addition to the results provided in accordance with GAAP, the
Company has provided information in this earnings release using
certain non-GAAP measures. The use of these non-GAAP measures is not
intended to replace the presentation of the Company’s financial
results in accordance with GAAP. Reconciliations of these non-GAAP
measures to the most directly comparable GAAP measures are included
in the following pages of this earnings release.
|
|
During the first quarter of 2017, the Company revised its
definitions of “core” non-GAAP measures. As revised, the Company’s
core non-GAAP measures, including core net income (loss)
attributable to Kindred, core EBITDA, core diluted EPS, core
operating cash flows and core free cash flows, no longer exclude (1)
transaction, integration, research and development, and litigation
contingency expenses that are not individually material, (2)
non-restructuring related facility closing charges, and (3)
non-executive or non-restructuring related severance, retirement and
retention costs. For comparability, “core” results for 2016 were
revised to conform to the current year presentation.
|
|
For each of the Company’s segments, Segment adjusted operating
income (loss) is a measure of performance used by the Company’s
chief operating decision makers in accordance with “Accounting
Standard Codification 280 − Segment Reporting.” In this context, the
Company defines Segment adjusted operating income (loss) as earnings
before interest, income taxes, depreciation, amortization and total
rent for each of the Company’s operating segments, excluding
litigation contingency expense, impairment charges, restructuring
charges, transaction costs, and the allocation of support center
overhead.
|
|
EBITDA: The Company defines EBITDA as earnings before
interest, income taxes, depreciation, and amortization, and believes
that the presentation of EBITDA is useful to investors because
creditors, securities analysts and investors use EBITDA to compare
the performance and valuation of companies in the healthcare
industry before consideration of non-cash depreciation and
amortization expense, and financing costs, which can vary
significantly among companies.
|
Non-GAAP Measures (Continued) |
|
Core Operating Results: The Company calculates core operating
results, including core net income (loss) attributable to Kindred,
core EBITDA, and core diluted EPS, by excluding charges related to
impairments, business interruption settlements, restructuring
charges, debt amendment costs, executive or restructuring-related
severance, retirement and retention costs, restructuring-related
facility closing charges, deferred tax asset valuation allowance,
deferred tax liability adjustment associated with the Tax Reform
Act, and material transaction, integration, litigation, and research
and development costs. 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’s management
uses core net income (loss) attributable to Kindred, core EBITDA,
and core diluted EPS as measures of operational performance that are
meaningful to investors. The Company uses these measures to assess
the relative performance of its operating divisions, as well as the
employees that operate these businesses. In addition, the Company
believes these measures are important, because securities analysts
and investors use these measures to compare the Company’s
performance to other companies in the healthcare industry.
|
|
Same-Hospital Revenues: The same-hospital revenues are
calculated by excluding from the Company’s Hospital division
revenues the results from two hospitals that closed during the
fourth quarter of 2017, four hospitals that closed during the third
quarter of 2017, one hospital that closed during the second quarter
of 2017, three hospitals acquired in 2016, 15 hospitals sold in
2016, and three hospitals that closed during 2016. The Company
believes the presentation of same-hospital revenues provides
investors, equity analysts and others with useful information
regarding the performance of the Company’s hospital operations that
are comparable for the periods presented.
|
|
For core net income (loss) attributable to Kindred and core EBITDA,
the Company believes that income (loss) from continuing operations
is the most comparable GAAP measure. For core diluted EPS, the
Company believes that GAAP diluted earnings (loss) per share from
continuing operations is the most comparable GAAP measure. Readers
of the Company’s financial information should consider income (loss)
from continuing operations and diluted earnings (loss) per share
from continuing operations as important measures of the Company’s
financial performance, because they provide the most complete
measures of its performance. For same-hospital revenues, the Company
believes that reported hospital segment revenues is the most
comparable GAAP measure. Readers of the Company’s financial
information should consider reported hospital segment revenues as an
important measure of the Company’s Hospital division financial
performance because it provides the most complete measure of its
revenue performance. Operating results presented on a core basis, as
well as a same-hospital basis, 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.
|
|
Also in this earnings 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, respectively.
|
|
Core Operating Cash Flows: The Company defines core operating
cash flows as operating cash flows excluding payments related to
business interruption settlements, restructuring charges, debt
amendment costs, executive or restructuring-related severance,
retirement and retention costs, restructuring-related facility
closing charges, and material transaction, integration, litigation,
and research and development costs, net of income tax benefits. The
Company believes that core operating cash flows provide important
information to investors for comparability to other companies that
use similar measures. Management uses core operating cash flows to
evaluate consolidated operating performance and in making decisions
related to acquisitions, development capital expenditures,
dividends, long-term debt repayments and other uses.
|
|
Core Free Cash Flows: The Company defines core free cash
flows as operating cash flows excluding payments related to business
interruption settlements, restructuring charges, debt amendment
costs, executive or restructuring-related severance, retirement and
retention costs, restructuring-related facility closing charges, and
material transaction, integration, litigation, and research and
development costs, net of income tax benefits but including routine
capital expenditures and distributions to noncontrolling interests.
The Company believes that core free cash flows provide important
information to investors for comparability to other companies that
use similar measures. Management uses core free cash flows in making
decisions related to acquisitions, development capital expenditures,
dividends, long-term debt repayments and other uses.
|
|
The Company recognizes that core operating cash flows and core free
cash flows are non-GAAP measures and are not intended to replace the
presentation of the Company’s cash flows in accordance with GAAP.
For core operating cash flows and core free cash flows, 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 because it provides the most
complete measure of cash provided by operating activities. Core
operating cash flows and core free cash flows should be considered
in addition to, not as a substitute for, or superior to, financial
measures based upon GAAP as an indicator of the Company’s cash flows
provided by operating activities.
|
|
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Reconciliation of GAAP Results to Non-GAAP Measures |
(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 earnings release to compute
certain non-GAAP measures for the three months ended December 31,
2017 and 2016, and for the year ended December 31, 2017 and 2016,
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,
including the deferred tax liability adjustment associated with the
Tax Reform Act and the deferred tax asset valuation allowance for
the three months and for the year ended December 31, 2017, and the
deferred tax asset valuation allowance for the three months and for
the year ended December 31, 2016 was calculated using an effective
income tax rate of 47.5% and 12.1% for the three months ended
December 31, 2017 and 2016, respectively, and 36.4% and 63.1% for
the year ended December 31, 2017 and 2016, respectively. The
difference in the effective income tax rate compared to the same
prior year period is primarily attributable to the change in the
amount of deferred tax valuation allowance, the deferred tax
liability adjustment associated with the Tax Reform Act and the
composition of charges that are non-deductible for income tax
purposes, including the impairment charges.
|
| | | | | | | | | | | | |
|
| | | | | | | Three months ended | | Year ended |
| | | | | | | December 31, | | December 31, |
| | | | | | |
| 2017 |
| |
| 2016 |
| |
| 2017 |
| |
| 2016 |
|
Reconciliation of income from continuing operations before charges:
| | | | | | | | | |
| | | | | | | | | | | | |
|
As reported:
| | | | | | | | | |
|
Loss from continuing operations attributable to Kindred
| | | |
($145,361
|
)
| | |
($10,455
|
)
| | |
($289,377
|
)
| | |
($632,535
|
)
|
|
Diluted loss per common share from continuing operations
| | | |
($1.65
|
)
| | |
($0.12
|
)
| | |
($3.31
|
)
| | |
($7.29
|
)
|
|
Weighted average diluted shares outstanding
| | | |
87,902
| | | |
86,904
| | | |
87,525
| | | |
86,800
| |
| | | | | | | | | | | | |
|
Detail of charges:
| | | | | | | | | |
|
Restructuring charges:
| | | | | | | | | |
| |
Facility/branch divestitures and closings
| | | |
($1,806
|
)
| | |
($3,745
|
)
| | |
($18,731
|
)
| | |
($23,539
|
)
|
| |
Retention, severance and other costs
| | | |
(2,956
|
)
| | |
(5,302
|
)
| | |
(11,623
|
)
| | |
(8,781
|
)
|
| |
Merger/transaction costs
| | |
|
(9,989
|
)
| |
|
(837
|
)
| |
|
(9,989
|
)
| |
|
(2,414
|
)
|
| | | | | | | |
(14,751
|
)
| | |
(9,884
|
)
| | |
(40,343
|
)
| | |
(34,734
|
)
|
| |
Lease termination and lease amendment costs (charged to rent
restructuring charges)
| | | |
(38,554
|
)
| | |
(2,029
|
)
| | |
(44,518
|
)
| | |
(61,392
|
)
|
| | | | | | | | | | | | |
|
|
Impairment charges
| | | |
(244,876
|
)
| | |
(3,534
|
)
| | |
(381,179
|
)
| | |
(314,729
|
)
|
|
RehabCare collection litigation
| | | |
-
| | | |
-
| | | |
(23,061
|
)
| | |
-
| |
|
Insurance restructuring costs
| | | |
(10,406
|
)
| | |
-
| | | |
(10,406
|
)
| | |
-
| |
|
Research and development
| | | |
-
| | | |
(4,293
|
)
| | |
-
| | | |
(11,520
|
)
|
|
Litigation contingency expense
| | | |
(3,435
|
)
| | |
-
| | | |
(7,435
|
)
| | |
(1,775
|
)
|
|
Business interruption settlements
| | | |
-
| | | |
2,069
| | | |
1,803
| | | |
3,378
| |
|
Debt amendment fees not capitalized
| | | |
-
| | | |
-
| | | |
-
| | | |
(1,103
|
)
|
|
Gentiva transaction costs:
| | | | | | | | | |
| |
Professional and consulting fees
| | | |
-
| | | |
(1,779
|
)
| | |
-
| | | |
(5,610
|
)
|
| |
Severance and retention
| | | |
-
| | | |
-
| | | |
-
| | | |
(696
|
)
|
| |
Lease termination (charged to building rent)
| | |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
(272
|
)
|
| | | | | | | |
(312,022
|
)
| | |
(19,450
|
)
| | |
(505,139
|
)
| | |
(428,453
|
)
|
|
Income tax benefit
| | | |
66,951
| | | |
7,878
| | | |
142,062
| | | |
98,246
| |
|
Deferred tax liability adjustment associated with the Tax Reform Act
| | | |
130,453
| | | |
-
| | | |
130,453
| | | |
-
| |
|
Deferred tax asset valuation allowance
| | |
|
(49,072
|
)
| |
|
(5,532
|
)
| |
|
(88,398
|
)
| |
|
(368,664
|
)
|
|
Charges net of income taxes
| | | |
(163,690
|
)
| | |
(17,104
|
)
| | |
(321,022
|
)
| | |
(698,871
|
)
|
|
Noncontrolling interests
| | |
|
-
|
| |
|
-
|
| |
|
320
|
| |
|
1,304
|
|
| | | | | | | |
(163,690
|
)
| | |
(17,104
|
)
| | |
(320,702
|
)
| | |
(697,567
|
)
|
|
Allocation to participating unvested restricted stockholders
| | |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
|
|
Available to common stockholders
| | |
|
($163,690
|
)
| |
|
($17,104
|
)
| |
|
($320,702
|
)
| |
|
($697,567
|
)
|
| | | | | | | | | | | | |
|
|
Diluted loss per common share related to charges
| | | |
($1.86
|
)
| | |
($0.20
|
)
| | |
($3.66
|
)
| | |
($8.04
|
)
|
| | | | | | | | | | | | |
|
|
Weighted average diluted shares outstanding
| | | |
87,902
| | | |
86,904
| | | |
87,525
| | | |
86,800
| |
| | | | | | | | | | | | |
|
Core:
| | | | | | | | | |
|
Income from continuing operations attributable to Kindred before
charges
| | |
$
|
18,329
| | |
$
|
6,649
| | |
$
|
31,325
| | |
$
|
65,032
| |
|
Diluted earnings per common share from continuing operations before
charges (a)
| | |
$
|
0.20
| | |
$
|
0.07
| | |
$
|
0.34
| | |
$
|
0.73
| |
|
Weighted average diluted shares outstanding used to compute
earnings per common share from continuing operations before charges
| | | |
88,485
| | | |
87,641
| | | |
88,200
| | | |
87,491
| |
| | | | | | | | | | | | |
|
Reconciliation of effective income tax rate before charges:
| | | | | | | | | |
|
Effective income tax rate before charges
| | | |
18.3
|
%
| | |
12.8
|
%
| | |
26.8
|
%
| | |
30.2
|
%
|
|
Impact of charges on effective income tax rate
| | |
|
32.9
|
%
| |
|
-7.0
|
%
| |
|
12.1
|
%
| |
|
80.7
|
%
|
|
Reported effective income tax rate
| | |
|
51.2
|
%
| |
|
5.8
|
%
| |
|
38.9
|
%
| |
|
110.9
|
%
|
|
|
|
| | | | | | | | | | |
(a)
|
For purposes of computing diluted earnings per common share before
charges, income from continuing operations before charges was
reduced by $0.6 million and $0.1 million for the three months ended
December 31, 2017 and 2016, respectively, and by $0.9 million and
$1.4 million for the year ended December 31, 2017 and 2016,
respectively, for the allocation of income to participating unvested
restricted stockholders.
|
|
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Reconciliation of GAAP Results to Non-GAAP Measures (Continued) |
(Unaudited) |
(In thousands)
|
|
|
|
| |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
In addition to the results provided in accordance with GAAP, the
Company has provided information in this earnings release to compute
certain non-GAAP measures for the quarters of 2016 and 2017, before
certain charges or on a core basis. The charges that were excluded
from core operating results are denoted in the table below.
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | 2016 Quarters | | | | 2017 Quarters | | |
| | | | | | | First | | Second | | Third | | Fourth | | Year | | First | | Second | | Third | | Fourth | | Year |
Reconciliation of income (loss) from continuing operations before
charges:
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
As reported:
| | | | | | | | | | | | | | | | | | | | | |
|
Income (loss) from continuing operations attributable to Kindred
| | |
$
|
14,129
| | |
$
|
21,380
| | | |
($657,589
|
)
| | |
($10,455
|
)
| | |
($632,535
|
)
| | |
($160
|
)
| | |
($115,186
|
)
| | |
($28,670
|
)
| | |
($145,361
|
)
| | |
($289,377
|
)
|
|
Depreciation and amortization
| | | |
33,554
| | | |
33,198
| | | |
32,995
| | | |
32,072
| | | |
131,819
| | | |
29,820
| | | |
25,651
| | | |
24,808
| | | |
24,526
| | | |
104,805
| |
|
Interest, net
| | | |
57,253
| | | |
57,567
| | | |
58,059
| | | |
58,625
| | | |
231,504
| | | |
58,819
| | | |
58,573
| | | |
60,441
| | | |
60,079
| | | |
237,912
| |
|
Provision (benefit) for income taxes
| | | |
11,817
| | | |
19,379
| | | |
283,182
| | | |
(116
|
)
| | |
314,262
| | | |
2,234
| | | |
(16,116
|
)
| | |
(1,225
|
)
| | |
(142,009
|
)
| | |
(157,116
|
)
|
|
Noncontrolling interest
| | |
|
7,851
|
| |
|
8,847
|
| |
|
9,574
|
| |
|
8,575
|
| |
|
34,847
|
| |
|
10,483
|
| |
|
10,791
|
| |
|
10,960
|
| |
|
9,942
|
| |
|
42,176
|
|
| |
EBITDA
| | | |
124,604
| | | |
140,371
| | | |
(273,779
|
)
| | |
88,701
| | | |
79,897
| | | |
101,196
| | | |
(36,287
|
)
| | |
66,314
| | | |
(192,823
|
)
| | |
(61,600
|
)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Detail of charges:
| | | | | | | | | | | | | | | | | | | | | |
|
Restructuring charges:
| | | | | | | | | | | | | | | | | | | | | |
| |
Facility/branch divestitures and closings
| | | |
341
| | | |
(759
|
)
| | |
20,212
| | | |
3,745
| | | |
23,539
| | | |
5,360
| | | |
2,842
| | | |
8,723
| | | |
1,806
| | | |
18,731
| |
| |
Retention, severance and other costs
| | | |
924
| | | |
446
| | | |
2,109
| | | |
5,302
| | | |
8,781
| | | |
2,741
| | | |
274
| | | |
5,652
| | | |
2,956
| | | |
11,623
| |
| |
Merger/transaction costs
| | |
|
436
|
| |
|
649
|
| |
|
492
|
| |
|
837
|
| |
|
2,414
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
9,989
|
| |
|
9,989
|
|
| | | | | | | |
1,701
| | | |
336
| | | |
22,813
| | | |
9,884
| | | |
34,734
| | | |
8,101
| | | |
3,116
| | | |
14,375
| | | |
14,751
| | | |
40,343
| |
| |
Lease termination and lease amendment costs (charged to rent
restructuring charges)
| | | |
251
| | | |
462
| | | |
58,650
| | | |
2,029
| | | |
61,392
| | | |
1,905
| | | |
1,934
| | | |
2,125
| | | |
38,554
| | | |
44,518
| |
|
Impairment charges
| | | |
7,788
| | | |
6,131
| | | |
297,276
| | | |
3,534
| | | |
314,729
| | | |
474
| | | |
135,829
| | | |
-
| | | |
244,876
| | | |
381,179
| |
|
RehabCare collection litigation
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
25,304
| | | |
(2,243
|
)
| | |
-
| | | |
23,061
| |
|
Insurance restructuring costs
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
10,406
| | | |
10,406
| |
|
Research and development
| | | |
863
| | | |
3,076
| | | |
3,288
| | | |
4,293
| | | |
11,520
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| |
|
Litigation contingency expense
| | | |
1,025
| | | |
750
| | | |
-
| | | |
-
| | | |
1,775
| | | |
-
| | | |
-
| | | |
4,000
| | | |
3,435
| | | |
7,435
| |
|
Business interruption settlements
| | | |
(1,138
|
)
| | |
(171
|
)
| | |
-
| | | |
(2,069
|
)
| | |
(3,378
|
)
| | |
-
| | | |
(1,803
|
)
| | |
-
| | | |
-
| | | |
(1,803
|
)
|
|
Debt amendment fees not capitalized
| | | |
-
| | | |
1,103
| | | |
-
| | | |
-
| | | |
1,103
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| |
|
Gentiva transaction costs:
| | | | | | | | | | | | | | | | | | | | | |
| |
Professional and consulting fees
| | | |
1,048
| | | |
1,319
| | | |
1,464
| | | |
1,779
| | | |
5,610
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| |
| |
Severance and retention
| | | |
555
| | | |
355
| | | |
(214
|
)
| | |
-
| | | |
696
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| |
| |
Lease termination (charged to building rent)
| | |
|
-
|
| |
|
-
|
| |
|
272
|
| |
|
-
|
| |
|
272
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
|
| | | | | | |
|
12,093
|
| |
|
13,361
|
| |
|
383,549
|
| |
|
19,450
|
| |
|
428,453
|
| |
|
10,480
|
| |
|
164,380
|
| |
|
18,257
|
| |
|
312,022
|
| |
|
505,139
|
|
| |
Core EBITDA
| | |
$
|
136,697
|
| |
$
|
153,732
|
| |
$
|
109,770
|
| |
$
|
108,151
|
| |
$
|
508,350
|
| |
$
|
111,676
|
| |
$
|
128,093
|
| |
$
|
84,571
|
| |
$
|
119,199
|
| |
$
|
443,539
|
|
|
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Reconciliation of GAAP Results to Non-GAAP Measures (Continued) |
(Unaudited) |
(In thousands)
|
| |
|
| |
|
| |
| | | |
| |
| |
| |
| | | |
| |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
A reconciliation of revenues for home health for each historical
period follows:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | Fourth quarter |
| | | | | | | 2016 Quarters | | | | 2017 Quarters | | | | % change v. |
| | | | | | | First | | Second | Third | | Fourth | | Year | | First | | Second | Third | | Fourth | | Year | | prior year |
|
Home health
| | |
$
|
363,730
| | |
$
|
370,327
| | |
$
|
373,980
| | |
$
|
369,198
| | |
$
|
1,477,235
| | |
$
|
376,736
| | |
$
|
384,954
| | |
$
|
373,964
| | |
$
|
388,692
| | |
$
|
1,524,346
| | |
5.3
| |
|
Community care and other
| | |
|
66,305
|
| |
|
68,229
|
| |
|
75,978
|
| |
|
74,875
|
| |
|
285,387
|
| |
|
74,095
|
| |
|
74,222
|
| |
|
79,720
|
| |
|
69,974
|
| |
|
298,011
|
| |
(6.5
|
)
|
|
Reported home health revenues
| | |
$
|
430,035
|
| |
$
|
438,556
|
| |
$
|
449,958
|
| |
$
|
444,073
|
| |
$
|
1,762,622
|
| |
$
|
450,831
|
| |
$
|
459,176
|
| |
$
|
453,684
|
| |
$
|
458,666
|
| |
$
|
1,822,357
|
| |
3.3
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
A reconciliation of revenues for the Hospital Division for each
historical period follows:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | Fourth quarter |
| | | | | | | 2016 Quarters | | | | 2017 Quarters | | | | % change v. |
| | | | | | | First | | Second | Third | | Fourth | | Year | | First | | Second | Third | | Fourth | | Year | | prior year |
|
Transitional care hospitals
| | |
$
|
643,299
| | |
$
|
633,695
| | |
$
|
575,323
| | |
$
|
530,746
| | |
$
|
2,383,063
| | |
$
|
540,280
| | |
$
|
525,458
| | |
$
|
487,012
| | |
$
|
489,621
| | |
$
|
2,042,371
| | |
(7.7
|
)
|
|
Sub-acute units and one skilled nursing facility
| | |
|
10,799
|
| |
|
11,711
|
| |
|
13,620
|
| |
|
15,118
|
| |
|
51,248
|
| |
|
16,366
|
| |
|
15,351
|
| |
|
16,126
|
| |
|
16,161
|
| |
|
64,004
|
| | |
|
Reported hospital division revenues
| | |
$
|
654,098
|
| |
$
|
645,406
|
| |
$
|
588,943
|
| |
$
|
545,864
|
| |
$
|
2,434,311
|
| |
$
|
556,646
|
| |
$
|
540,809
|
| |
$
|
503,138
|
| |
$
|
505,782
|
| |
$
|
2,106,375
|
| |
(7.3
|
)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
A reconciliation of reported hospital revenues to same-hospital
revenues for each historical period follows:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | Fourth quarter |
| | | | | | | 2016 Quarters | | | | 2017 Quarters | | | | % change v. |
| | | | | | | First | | Second | Third | | Fourth | | Year | | First | | Second | Third | | Fourth | | Year | | prior year |
|
Transitional care hospitals
| | |
$
|
643,299
| | |
$
|
633,695
| | |
$
|
575,323
| | |
$
|
530,746
| | |
$
|
2,383,063
| | |
$
|
540,280
| | |
$
|
525,458
| | |
$
|
487,012
| | |
$
|
489,621
| | |
$
|
2,042,371
| | |
(7.7
|
)
|
|
Hospitals acquired during 2016 (a)
| | | |
-
| | | |
(2,217
|
)
| | |
-
| | | |
-
| | | |
(2,217
|
)
| | |
(9,724
|
)
| | |
(10,164
|
)
| | |
-
| | | |
-
| | | |
(19,888
|
)
| | |
|
Hospitals sold during 2016 (b)
| | | |
(71,941
|
)
| | |
(64,084
|
)
| | |
(47,098
|
)
| | |
732
| | | |
(182,391
|
)
| | |
449
| | | |
(623
|
)
| | |
(168
|
)
| | |
(746
|
)
| | |
(1,088
|
)
| | |
|
Hospitals closed during 2017 (c)
| | | |
(31,272
|
)
| | |
(30,952
|
)
| | |
(25,837
|
)
| | |
(26,424
|
)
| | |
(114,485
|
)
| | |
(26,838
|
)
| | |
(23,226
|
)
| | |
(10,400
|
)
| | |
(6,041
|
)
| | |
(66,505
|
)
| | |
|
Hospitals closed during 2016 (d)
| | |
|
(8,271
|
)
| |
|
(8,864
|
)
| |
|
(8,908
|
)
| |
|
(183
|
)
| |
|
(26,226
|
)
| |
|
(32
|
)
| |
|
557
|
| |
|
(88
|
)
| |
|
(157
|
)
| |
|
280
|
| | |
|
Same-hospital revenues
| | |
$
|
531,815
|
| |
$
|
527,578
|
| |
$
|
493,480
|
| |
$
|
504,871
|
| |
$
|
2,057,744
|
| |
$
|
504,135
|
| |
$
|
492,002
|
| |
$
|
476,356
|
| |
$
|
482,677
|
| |
$
|
1,955,170
|
| |
(4.4
|
)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
(a)
|
Three hospitals acquired during the second quarter of 2016.
|
(b)
|
Three hospitals sold during the second quarter of 2016 and 12
hospitals sold during the fourth quarter of 2016.
|
(c)
|
One hospital closed during the second quarter of 2017, four
hospitals closed during the third quarter of 2017 and two hospitals
closed during the fourth quarter of 2017.
|
(d)
|
Three hospitals closed during the third quarter of 2016.
|
|
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Reconciliation of GAAP Results to Non-GAAP Measures (Continued) |
(Unaudited) |
(In thousands, except per share amounts)
|
| |
|
|
|
| |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | Three months ended December 31, 2017 |
| | | | | | | | | | | Charges | | |
| | | | | | | | | | | | | | | | | | | Deferred | | Deferred | | | | |
| | | | | | | | | | | | | | | | | | | tax liability | | tax asset | | | | Before |
| | | | | | | | | As | | Insurance | | Litigation | | Impairment | | Restructuring | | Tax Reform Act | | valuation | | | | charges |
| | | | | | | | | reported | | restructuring | | contingency | | charges | | charges | | adjustment | | allowance | | Total | | ("core") (a) |
Income (loss) from continuing operations: | | | | | | | | | | | | | | | | | | | |
Segment adjusted operating income:
| | | | | | | | | | | | | | | | | | | |
|
Kindred at Home:
| | | | | | | | | | | | | | | | | | | |
| |
Home health
| | |
$
|
69,445
| | |
$
|
-
| | |
$
|
-
| |
$
|
-
| |
$
|
-
| |
$
|
-
| | |
$
|
-
| | |
$
|
-
| | |
$
|
69,445
| |
| |
Hospice
| | |
|
34,147
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
34,147
|
|
| | | | | | | | |
|
103,592
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
103,592
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Hospital division
| | | |
91,014
| | | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
91,014
| |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Kindred Rehabilitation Services:
| | | | | | | | | | | | | | | | | | | |
| |
Kindred Hospital Rehabilitation Services
| | | |
49,059
| | | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
49,059
| |
| |
RehabCare
| | |
|
3,374
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
3,374
|
|
| | | | | | | | |
|
52,433
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
52,433
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Support center expenses
| | | |
(66,098
|
)
| | |
10,406
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
10,406
| | | |
(55,692
|
)
|
Litigation contingency expense
| | | |
(3,435
|
)
| | | | |
3,435
| | | | | | | | | | |
3,435
| | | |
-
| |
Impairment charges
| | | |
(244,876
|
)
| | |
-
| | | |
-
| | |
244,876
| | |
-
| | |
-
| | | |
-
| | | |
244,876
| | | |
-
| |
Restructuring charges
| | | |
(14,751
|
)
| | |
-
| | | |
-
| | |
-
| | |
14,751
| | |
-
| | | |
-
| | | |
14,751
| | | |
-
| |
Building rent
| | | |
(63,577
|
)
| | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
(63,577
|
)
|
Equipment rent
| | | |
(8,571
|
)
| | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
(8,571
|
)
|
Restructuring charges - rent
| | | |
(38,554
|
)
| | |
-
| | | |
-
| | |
-
| | |
38,554
| | |
-
| | | |
-
| | | |
38,554
| | | |
-
| |
Depreciation and amortization
| | | |
(24,526
|
)
| | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
(24,526
|
)
|
Interest, net
| | |
|
(60,079
|
)
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
(60,079
|
)
|
Income (loss) from continuing operations before income taxes
| | | |
(277,428
|
)
| | |
10,406
| | | |
3,435
| | |
244,876
| | |
53,305
| | |
-
| | | |
-
| | | |
312,022
| | | |
34,594
| |
Provision (benefit) for income taxes
| | |
|
(142,009
|
)
| |
|
4,095
|
| |
|
1,351
| |
|
43,909
| |
|
17,596
| |
|
130,453
|
| |
|
(49,072
|
)
| |
|
148,332
|
| |
|
6,323
|
|
| | | | | | | | | |
(135,419
|
)
| |
$
|
6,311
|
| |
$
|
2,084
| |
$
|
200,967
| |
$
|
35,709
| |
$
|
(130,453
|
)
| |
$
|
49,072
|
| |
$
|
163,690
|
| | |
28,271
| |
Noncontrolling interests
| | |
|
(9,942
|
)
| | | | | | | | | | | | | | | |
|
(9,942
|
)
|
|
Income (loss) attributable to Kindred
| | |
$
|
(145,361
|
)
| | | | | | | | | | | | | | | |
$
|
18,329
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Diluted earnings (loss) per common share
| | |
$
|
(1.65
|
)
| | | | | | | | | | | | | | | |
$
|
0.20
| |
| | | | | | | | | | | | | | | | | |
Diluted shares used in computing earnings (loss) per common share
| | | |
87,902
| | | | | | | | | | | | | | | | | |
88,485
| |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | Three months ended December 31, 2016 |
| | | | | | | | | | | Charges | | |
| | | | | | | | | | | | | | | | | | | Gentiva | | Deferred | | | | |
| | | | | | | | | | | Business | | | | | | | | transaction | | tax asset | | | | Before |
| | | | | | | | | As | | interruption | | Impairment | | Research and | | Restructuring | | and | | valuation | | | | charges |
| | | | | | | | | reported | | settlements | | charges | | development | | charges | | integration | | allowance | | Total | | ("core") (a) |
Income (loss) from continuing operations: | | | | | | | | | | | | | | | | | | | |
Segment adjusted operating income:
| | | | | | | | | | | | | | | | | | | |
|
Kindred at Home:
| | | | | | | | | | | | | | | | | | | |
| |
Home health
| | |
$
|
61,487
| | |
$
|
(302
|
)
| |
$
|
-
| |
$
|
-
| |
$
|
-
| |
$
|
-
| | |
$
|
-
| | |
$
|
(302
|
)
| |
$
|
61,185
| |
| |
Hospice
| | |
|
28,805
|
| |
|
(1,137
|
)
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
(1,137
|
)
| |
|
27,668
|
|
| | | | | | | | |
|
90,292
|
| |
|
(1,439
|
)
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
(1,439
|
)
| |
|
88,853
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Hospital division
| | | |
93,778
| | | |
(630
|
)
| | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
(630
|
)
| | |
93,148
| |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Kindred Rehabilitation Services:
| | | | | | | | | | | | | | | | | | | |
| |
Kindred Hospital Rehabilitation Services
| | | |
49,728
| | | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
49,728
| |
| |
RehabCare
| | |
|
4,142
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
4,142
|
|
| | | | | | | | |
|
53,870
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
53,870
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Support center expenses
| | | |
(58,627
|
)
| | |
-
| | | |
-
| | |
4,293
| | |
-
| | |
-
| | | |
-
| | | |
4,293
| | | |
(54,334
|
)
|
Impairment charges
| | | |
(3,534
|
)
| | |
-
| | | |
3,534
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
3,534
| | | |
-
| |
Restructuring charges
| | | |
(9,884
|
)
| | |
-
| | | |
-
| | |
-
| | |
9,884
| | |
-
| | | |
-
| | | |
9,884
| | | |
-
| |
Transaction costs
| | | |
(2,166
|
)
| | |
-
| | | |
-
| | |
-
| | |
-
| | |
1,779
| | | |
-
| | | |
1,779
| | | |
(387
|
)
|
Building rent
| | | |
(64,350
|
)
| | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
(64,350
|
)
|
Equipment rent
| | | |
(8,649
|
)
| | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
(8,649
|
)
|
Restructuring charges - rent
| | | |
(2,029
|
)
| | |
-
| | | |
-
| | |
-
| | |
2,029
| | |
-
| | | |
-
| | | |
2,029
| | | |
-
| |
Depreciation and amortization
| | | |
(32,072
|
)
| | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
(32,072
|
)
|
Interest, net
| | |
|
(58,625
|
)
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
(58,625
|
)
|
Income (loss) from continuing operations before income taxes
| | | |
(1,996
|
)
| | |
(2,069
|
)
| | |
3,534
| | |
4,293
| | |
11,913
| | |
1,779
| | | |
-
| | | |
19,450
| | | |
17,454
| |
Provision (benefit) for income taxes
| | |
|
(116
|
)
| |
|
(817
|
)
| |
|
1,391
| |
|
1,706
| |
|
4,887
| |
|
711
|
| |
|
(5,532
|
)
| |
|
2,346
|
| |
|
2,230
|
|
| | | | | | | | | |
(1,880
|
)
| |
$
|
(1,252
|
)
| |
$
|
2,143
| |
$
|
2,587
| |
$
|
7,026
| |
$
|
1,068
|
| |
$
|
5,532
|
| |
$
|
17,104
|
| | |
15,224
| |
Noncontrolling interests
| | |
|
(8,575
|
)
| | | | | | | | | | | | | | | |
|
(8,575
|
)
|
|
Income (loss) attributable to Kindred
| | |
$
|
(10,455
|
)
| | | | | | | | | | | | | | | |
$
|
6,649
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Diluted earnings (loss) per common share
| | |
$
|
(0.12
|
)
| | | | | | | | | | | | | | | |
$
|
0.07
| |
| | | | | | | | | | | | | | | | | |
Diluted shares used in computing earnings (loss) per common share
| | | |
86,904
| | | | | | | | | | | | | | | | | |
87,641
| |
|
|
|
|
| | | | | | | | | | | | | | | | | | | | | |
(a)
|
During the first quarter of 2017, the Company revised its
definitions of “core” non-GAAP measures. See “Non-GAAP Measures”
beginning on page 14 for a discussion regarding the revised
definitions. For comparability, core results for 2016 were revised
to conform to the current year presentation.
|
| |
|
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Reconciliation of GAAP Results to Non-GAAP Measures (Continued) |
(Unaudited) |
(In thousands, except per share amounts)
|
| |
|
|
|
| |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | Year ended December 31, 2017 |
| | | | | | | | | | | Charges | | |
| | | | | | | | | | | | | | | | | | | | | | | Deferred | | Deferred | | | | |
| | | | | | | | | | | Business | | RehabCare | | | | | | | | | | tax liaiblity | | tax asset | | | | Before |
| | | | | | | | | As | | interruption | | collection | | Insurance | | Litigation | | Impairment | | Restructuring | | Tax Reform Act | | valuation | | | | charges |
| | | | | | | | | reported | | settlements | | litigation | | restructuring | | contingency | | charges | | charges | | adjustment | | allowance | | Total | | ("core") (a) |
Income (loss) from continuing operations: | | | | | | | | | | | | | | | | | | | | | | | |
Segment adjusted operating income:
| | | | | | | | | | | | | | | | | | | | | | | |
|
Kindred at Home:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Home health
| | |
$
|
276,218
| | |
$
|
(795
|
)
| |
$
|
-
| | |
$
|
-
| | |
$
|
-
| |
$
|
-
| |
$
|
-
| |
$
|
-
| | |
$
|
-
| | |
$
|
(795
|
)
| |
$
|
275,423
| |
| |
Hospice
| | |
|
129,273
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
129,273
|
|
| | | | | | | | |
|
405,491
|
| |
|
(795
|
)
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
(795
|
)
| |
|
404,696
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Hospital division
| | | |
337,487
| | | |
(1,008
|
)
| | |
-
| | | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
(1,008
|
)
| | |
336,479
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Kindred Rehabilitation Services:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Kindred Hospital Rehabilitation Services
| | | |
203,392
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
203,392
| |
| |
RehabCare
| | |
|
6,884
|
| |
|
-
|
| |
|
23,061
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
23,061
|
| |
|
29,945
|
|
| | | | | | | | |
|
210,276
|
| |
|
-
|
| |
|
23,061
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
23,061
|
| |
|
233,337
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Support center expenses
| | | |
(249,007
|
)
| | |
-
| | | |
-
| | | |
10,406
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
10,406
| | | |
(238,601
|
)
|
Litigation contingency expense
| | | |
(7,435
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
7,435
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
7,435
| | | |
-
| |
Impairment charges
| | | |
(381,179
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
381,179
| | |
-
| | |
-
| | | |
-
| | | |
381,179
| | | |
-
| |
Restructuring charges
| | | |
(40,343
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | |
40,343
| | |
-
| | | |
-
| | | |
40,343
| | | |
-
| |
Building rent
| | | |
(257,516
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
(257,516
|
)
|
Equipment rent
| | | |
(34,856
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
(34,856
|
)
|
Restructuring charges - rent
| | | |
(44,518
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | |
44,518
| | |
-
| | | |
-
| | | |
44,518
| | | |
-
| |
Depreciation and amortization
| | | |
(104,805
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
(104,805
|
)
|
Interest, net
| | |
|
(237,912
|
)
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
(237,912
|
)
|
Income (loss) from continuing operations
| | | | | | | | | | | | | | | | | | | | | | | |
|
before income taxes
| | | |
(404,317
|
)
| | |
(1,803
|
)
| | |
23,061
| | | |
10,406
| | | |
7,435
| | |
381,179
| | |
84,861
| | |
-
| | | |
-
| | | |
505,139
| | | |
100,822
| |
Provision (benefit) for income taxes
| | |
|
(157,116
|
)
| |
|
(709
|
)
| |
|
9,074
|
| |
|
4,095
|
| |
|
2,925
| |
|
97,544
| |
|
29,133
| |
|
130,453
|
| |
|
(88,398
|
)
| |
|
184,117
|
| |
|
27,001
|
|
| | | | | | | | | |
(247,201
|
)
| | |
(1,094
|
)
| | |
13,987
| | | |
6,311
| | | |
4,510
| | |
283,635
| | |
55,728
| | |
(130,453
|
)
| | |
88,398
| | | |
321,022
| | | |
73,821
| |
Noncontrolling interests
| | |
|
(42,176
|
)
| |
|
-
|
| |
|
(320
|
)
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
(320
|
)
| |
|
(42,496
|
)
|
|
Income (loss) attributable to Kindred
| | |
$
|
(289,377
|
)
| |
$
|
(1,094
|
)
| |
$
|
13,667
|
| |
$
|
6,311
|
| |
$
|
4,510
| |
$
|
283,635
| |
$
|
55,728
| |
$
|
(130,453
|
)
| |
$
|
88,398
|
| |
$
|
320,702
|
| |
$
|
31,325
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Diluted earnings (loss) per common share
| | |
$
|
(3.31
|
)
| | | | | | | | | | | | | | | | | | | |
$
|
0.34
| |
Diluted shares used in computing earnings (loss) per common share
| | | |
87,525
| | | | | | | | | | | | | | | | | | | | | |
88,200
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | Year ended December 31, 2016 |
| | | | | | | | | | | Charges | | |
| | | | | | | | | | | | | | | | | | | | | | | Gentiva | | Deferred | | | | |
| | | | | | | | | | | Business | | | | | | | | | | | | transaction | | tax asset | | | | Before |
| | | | | | | | | As | | interruption | | Litigation | | Impairment | | Research and | | Debt | | Restructuring | | and | | valuation | | | | charges |
| | | | | | | | | reported | | settlements | | contingency | | charges | | development | | amendment | | charges | | integration | | allowance | | Total | | ("core") (a) |
Income (loss) from continuing operations: | | | | | | | | | | | | | | | | | | | | | | | |
Segment adjusted operating income:
| | | | | | | | | | | | | | | | | | | | | | | |
|
Kindred at Home:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Home health
| | |
$
|
279,531
| | |
$
|
(1,611
|
)
| |
$
|
-
| | |
$
|
-
| | |
$
|
-
| |
$
|
-
| |
$
|
-
| |
$
|
-
| | |
$
|
-
| | |
$
|
(1,611
|
)
| |
$
|
277,920
| |
| |
Hospice
| | |
|
116,326
|
| |
|
(1,137
|
)
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
(1,137
|
)
| |
|
115,189
|
|
| | | | | | | | |
|
395,857
|
| |
|
(2,748
|
)
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
(2,748
|
)
| |
|
393,109
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Hospital division
| | | |
441,644
| | | |
(630
|
)
| | |
-
| | | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
(630
|
)
| | |
441,014
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Kindred Rehabilitation Services:
| | | | | | | | | | | | | | | | | | | | | | | |
| |
Kindred Hospital Rehabilitation Services
| | | |
198,335
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
198,335
| |
| |
RehabCare
| | |
|
32,586
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
32,586
|
|
| | | | | | | | |
|
230,921
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
230,921
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Support center expenses
| | | |
(261,916
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
11,520
| | |
1,103
| | |
-
| | |
-
| | | |
-
| | | |
12,623
| | | |
(249,293
|
)
|
Litigation contingency expense
| | | |
(2,840
|
)
| | |
-
| | | |
1,775
| | | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
1,775
| | | |
(1,065
|
)
|
Impairment charges
| | | |
(314,729
|
)
| | |
-
| | | |
-
| | | |
314,729
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
314,729
| | | |
-
| |
Restructuring charges
| | | |
(34,734
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | |
34,734
| | |
-
| | | |
-
| | | |
34,734
| | | |
-
| |
Transaction costs
| | | |
(8,679
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | |
-
| | |
6,306
| | | |
-
| | | |
6,306
| | | |
(2,373
|
)
|
Building rent
| | | |
(264,306
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | |
-
| | |
272
| | | |
-
| | | |
272
| | | |
(264,034
|
)
|
Equipment rent
| | | |
(39,929
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
(39,929
|
)
|
Restructuring charges - rent
| | | |
(61,392
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | |
61,392
| | |
-
| | | |
-
| | | |
61,392
| | | |
-
| |
Depreciation and amortization
| | | |
(131,819
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
(131,819
|
)
|
Interest, net
| | |
|
(231,504
|
)
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
(231,504
|
)
|
Income (loss) from continuing operations before income taxes
| | | |
(283,426
|
)
| | |
(3,378
|
)
| | |
1,775
| | | |
314,729
| | | |
11,520
| | |
1,103
| | |
96,126
| | |
6,578
| | | |
-
| | | |
428,453
| | | |
145,027
| |
Provision for income taxes
| | |
|
314,262
|
| |
|
(1,329
|
)
| |
|
(381
|
)
| |
|
54,578
|
| |
|
4,533
| |
|
431
| |
|
37,826
| |
|
2,588
|
| |
|
(368,664
|
)
| |
|
(270,418
|
)
| |
|
43,844
|
|
| | | | | | | | | |
(597,688
|
)
| | |
(2,049
|
)
| | |
2,156
| | | |
260,151
| | | |
6,987
| | |
672
| | |
58,300
| | |
3,990
| | | |
368,664
| | | |
698,871
| | | |
101,183
| |
Noncontrolling interests
| | |
|
(34,847
|
)
| |
|
-
|
| |
|
-
|
| |
|
(1,304
|
)
| |
|
-
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
(1,304
|
)
| |
|
(36,151
|
)
|
|
Income (loss) attributable to Kindred
| | |
$
|
(632,535
|
)
| |
$
|
(2,049
|
)
| |
$
|
2,156
|
| |
$
|
258,847
|
| |
$
|
6,987
| |
$
|
672
| |
$
|
58,300
| |
$
|
3,990
|
| |
$
|
368,664
|
| |
$
|
697,567
|
| |
$
|
65,032
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Diluted earnings (loss) per common share
| | |
$
|
(7.29
|
)
| | | | | | | | | | | | | | | | | | | |
$
|
0.73
| |
Diluted shares used in computing earnings (loss) per common share
| | | |
86,800
| | | | | | | | | | | | | | | | | | | | | |
87,491
| |
|
|
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
(a)
|
During the first quarter of 2017, the Company revised its
definitions of “core” non-GAAP measures. See “Non-GAAP Measures”
beginning on page 14 for a discussion regarding the revised
definitions. For comparability, core results for 2016 were revised
to conform to the current year presentation.
|
| |
|
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Reconciliation of GAAP Results to Non-GAAP Measures (Continued) |
(Unaudited) |
(In thousands, except per share amounts)
|
| |
|
|
|
| |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | Three months ended March 31, 2017 | | | | | | |
| | | | | | | | | | | Charges | | | | | | | | |
| | | | | | | | | | | | | | | Deferred | | | | | | | | | | |
| | | | | | | | | | | | | | | tax asset | | | | Before | | | | | | |
| | | | | | | | | As | | Impairment | | Restructuring | | valuation | | | | charges | | | | | | |
| | | | | | | | | reported | | charges | | charges | | allowance | | Total | | ("core") (a) | | | | | | |
Income from continuing operations: | | | | | | | | | | | | | | | | | | | |
Segment adjusted operating income:
| | | | | | | | | | | | | | | | | | | |
|
Kindred at Home:
| | | | | | | | | | | | | | | | | | | |
| |
Home health
| | |
$
|
63,750
| | |
$
|
-
| | |
$
|
-
| |
$
|
-
| | |
$
|
-
| |
$
|
63,750
| | | | | | | |
| |
Hospice
| | |
|
27,581
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
| |
|
27,581
|
| | | | | | |
| | | | | | | | |
|
91,331
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
| |
|
91,331
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Hospital division
| | | |
93,438
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | |
93,438
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Kindred Rehabilitation Services:
| | | | | | | | | | | | | | | | | | | |
| |
Kindred Hospital Rehabilitation Services
| | | |
51,760
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | |
51,760
| | | | | | | |
| |
RehabCare
| | |
|
8,704
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
| |
|
8,704
|
| | | | | | |
| | | | | | | | |
|
60,464
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
| |
|
60,464
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Support center expenses
| | | |
(60,014
|
)
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
(60,014
|
)
| | | | | | |
Impairment charges
| | | |
(474
|
)
| | |
474
| | | |
-
| | |
-
| | | |
474
| | |
-
| | | | | | | |
Restructuring charges
| | | |
(8,101
|
)
| | |
-
| | | |
8,101
| | |
-
| | | |
8,101
| | |
-
| | | | | | | |
Building rent
| | | |
(64,656
|
)
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
(64,656
|
)
| | | | | | |
Equipment rent
| | | |
(8,887
|
)
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
(8,887
|
)
| | | | | | |
Restructuring charges - rent
| | | |
(1,905
|
)
| | |
-
| | | |
1,905
| | |
-
| | | |
1,905
| | |
-
| | | | | | | |
Depreciation and amortization
| | | |
(29,820
|
)
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
(29,820
|
)
| | | | | | |
Interest, net
| | |
|
(58,819
|
)
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
| |
|
(58,819
|
)
| | | | | | |
Income from continuing operations before income taxes
| | | |
12,557
| | | |
474
| | | |
10,006
| | |
-
| | | |
10,480
| | |
23,037
| | | | | | | |
Provision for income taxes
| | |
|
2,234
|
| |
|
187
|
| |
|
3,937
| |
|
3,049
|
| |
|
7,173
| |
|
9,407
|
| | | | | | |
| | | | | | | | | |
10,323
| | |
$
|
287
|
| |
$
|
6,069
| |
$
|
(3,049
|
)
| |
$
|
3,307
| | |
13,630
| | | | | | | |
Noncontrolling interests
| | |
|
(10,483
|
)
| | | | | | | | | |
|
(10,483
|
)
| | | | | | |
|
Income (loss) attributable to Kindred
| | |
$
|
(160
|
)
| | | | | | | | | |
$
|
3,147
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Diluted earnings (loss) per common share
| | |
$
|
-
| | | | | | | | | | |
$
|
0.03
| | | | | | | |
| | | | | | | | | | | | | | | | | |
Diluted shares used in computing earnings (loss) per common share
| | | |
87,085
| | | | | | | | | | | |
87,744
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | Three months ended March 31, 2016 |
| | | | | | | | | | | Charges | | |
| | | | | | | | | | | | | | | | | | | | | Gentiva | | | | |
| | | | | | | | | | | Business | | | | | | | | | | transaction | | | | Before |
| | | | | | | | | As | | interruption | | Litigation | | Impairment | | Research and | | Restructuring | | and | | | | charges |
| | | | | | | | | reported | | settlements | | contingency | | charges | | development | | charges | | integration | | Total | | ("core") (a) |
Income from continuing operations: | | | | | | | | | | | | | | | | | | | |
Segment adjusted operating income:
| | | | | | | | | | | | | | | | | | | |
|
Kindred at Home:
| | | | | | | | | | | | | | | | | | | |
| |
Home health
| | |
$
|
66,941
| | |
$
|
(1,138
|
)
| |
$
|
-
| |
$
|
-
| | |
$
|
-
| |
$
|
-
| | |
$
|
-
| |
$
|
(1,138
|
)
| |
$
|
65,803
| |
| |
Hospice
| | |
|
24,866
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
24,866
|
|
| | | | | | | | |
|
91,807
|
| |
|
(1,138
|
)
| |
|
-
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
| |
|
(1,138
|
)
| |
|
90,669
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Hospital division
| | | |
136,416
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
-
| | | |
136,416
| |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Kindred Rehabilitation Services:
| | | | | | | | | | | | | | | | | | | |
| |
Kindred Hospital Rehabilitation Services
| | | |
48,119
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
-
| | | |
48,119
| |
| |
RehabCare
| | |
|
9,762
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
9,762
|
|
| | | | | | | | |
|
57,881
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
57,881
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Support center expenses
| | | |
(72,022
|
)
| | |
-
| | | |
-
| | |
-
| | | |
863
| | |
-
| | | |
-
| | |
863
| | | |
(71,159
|
)
|
Litigation contingency expense
| | | |
(1,910
|
)
| | |
-
| | | |
1,025
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
1,025
| | | |
(885
|
)
|
Impairment charges
| | | |
(7,788
|
)
| | |
-
| | | |
-
| | |
7,788
| | | |
-
| | |
-
| | | |
-
| | |
7,788
| | | |
-
| |
Restructuring charges
| | | |
(1,701
|
)
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
1,701
| | | |
-
| | |
1,701
| | | |
-
| |
Transaction costs
| | | |
(1,685
|
)
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
-
| | | |
1,603
| | |
1,603
| | | |
(82
|
)
|
Building rent
| | | |
(65,985
|
)
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
-
| | | |
(65,985
|
)
|
Equipment rent
| | | |
(10,158
|
)
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
-
| | | |
(10,158
|
)
|
Restructuring charges - rent
| | | |
(251
|
)
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
251
| | | |
-
| | |
251
| | | |
-
| |
Depreciation and amortization
| | | |
(33,554
|
)
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
-
| | | |
(33,554
|
)
|
Interest, net
| | |
|
(57,253
|
)
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
(57,253
|
)
|
Income from continuing operations before income taxes
| | | |
33,797
| | | |
(1,138
|
)
| | |
1,025
| | |
7,788
| | | |
863
| | |
1,952
| | | |
1,603
| | |
12,093
| | | |
45,890
| |
Provision for income taxes
| | |
|
11,817
|
| |
|
(403
|
)
| |
|
363
| |
|
2,758
|
| |
|
305
| |
|
691
|
| |
|
568
| |
|
4,282
|
| |
|
16,099
|
|
| | | | | | | | | |
21,980
| | |
$
|
(735
|
)
| |
$
|
662
| |
$
|
5,030
|
| |
$
|
558
| |
$
|
1,261
|
| |
$
|
1,035
| |
$
|
7,811
|
| | |
29,791
| |
Noncontrolling interests
| | |
|
(7,851
|
)
| | | | | | | | | | | | | | | |
|
(7,851
|
)
|
|
Income attributable to Kindred
| | |
$
|
14,129
|
| | | | | | | | | | | | | | | |
$
|
21,940
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Diluted earnings per common share
| | |
$
|
0.16
| | | | | | | | | | | | | | | | |
$
|
0.25
| |
Diluted shares used in computing earnings per common share
| | | |
87,249
| | | | | | | | | | | | | | | | | |
87,249
| |
|
|
|
|
| | | | | | | | | | | | | | | | | | | | | |
(a)
|
During the first quarter of 2017, the Company revised its
definitions of “core” non-GAAP measures. See “Non-GAAP Measures”
beginning on page 14 for a discussion regarding the revised
definitions. For comparability, core results for 2016 were revised
to conform to the current year presentation.
|
| |
|
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Reconciliation of GAAP Results to Non-GAAP Measures (Continued) |
(Unaudited) |
(In thousands, except per share amounts)
|
| |
|
|
|
| |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | Three months ended June 30, 2017 | | | | |
| | | | | | | | | | | Charges | | | | | | |
| | | | | | | | | | | | | | | | | | | Deferred | | | | | | | | |
| | | | | | | | | | | Business | | RehabCare | | | | | | tax asset | | | | Before | | | | |
| | | | | | | | | As | | interruption | | collection | | Impairment | | Restructuring | | valuation | | | | charges | | | | |
| | | | | | | | | reported | | settlements | | litigation | | charges | | charges | | allowance | | Total | | ("core") (a) | | | | |
Income (loss) from continuing operations: | | | | | | | | | | | | | | | | | | | | | |
Segment adjusted operating income (loss):
| | | | | | | | | | | | | | | | | | | | | |
|
Kindred at Home:
| | | | | | | | | | | | | | | | | | | | | |
| |
Home health
| | |
$
|
76,592
| | |
$
|
(795
|
)
| |
$
|
-
| | |
$
|
-
| | |
$
|
-
| |
$
|
-
| | |
$
|
(795
|
)
| |
$
|
75,797
| | | | | |
| |
Hospice
| | |
|
32,784
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
32,784
|
| | | | |
| | | | | | | | |
|
109,376
|
| |
|
(795
|
)
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
(795
|
)
| |
|
108,581
|
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Hospital division
| | | |
91,580
| | | |
(1,008
|
)
| | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
(1,008
|
)
| | |
90,572
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Kindred Rehabilitation Services:
| | | | | | | | | | | | | | | | | | | | | |
| |
Kindred Hospital Rehabilitation Services
| | | |
53,422
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | | |
53,422
| | | | | |
| |
RehabCare
| | |
|
(13,492
|
)
| |
|
-
|
| |
|
25,304
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
25,304
|
| |
|
11,812
|
| | | | |
| | | | | | | | |
|
39,930
|
| |
|
-
|
| |
|
25,304
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
25,304
|
| |
|
65,234
|
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Support center expenses
| | | |
(62,572
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | | |
(62,572
|
)
| | | | |
Impairment charges
| | | |
(135,829
|
)
| | |
-
| | | |
-
| | | |
135,829
| | | |
-
| | |
-
| | | |
135,829
| | | |
-
| | | | | |
Restructuring charges
| | | |
(3,116
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
3,116
| | |
-
| | | |
3,116
| | | |
-
| | | | | |
Building rent
| | | |
(64,861
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | | |
(64,861
|
)
| | | | |
Equipment rent
| | | |
(8,861
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | | |
(8,861
|
)
| | | | |
Restructuring charges - rent
| | | |
(1,934
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
1,934
| | |
-
| | | |
1,934
| | | |
-
| | | | | |
Depreciation and amortization
| | | |
(25,651
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | | |
(25,651
|
)
| | | | |
Interest, net
| | |
|
(58,573
|
)
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
(58,573
|
)
| | | | |
Income (loss) from continuing operations before income taxes
| | | |
(120,511
|
)
| | |
(1,803
|
)
| | |
25,304
| | | |
135,829
| | | |
5,050
| | |
-
| | | |
164,380
| | | |
43,869
| | | | | |
Provision (benefit) for income taxes
| | |
|
(16,116
|
)
| |
|
(709
|
)
| |
|
9,957
|
| |
|
53,449
|
| |
|
1,987
| |
|
(35,235
|
)
| |
|
29,449
|
| |
|
13,333
|
| | | | |
| | | | | | | | | |
(104,395
|
)
| | |
(1,094
|
)
| | |
15,347
| | | |
82,380
| | | |
3,063
| | |
35,235
| | | |
134,931
| | | |
30,536
| | | | | |
Noncontrolling interests
| | |
|
(10,791
|
)
| |
|
-
|
| |
|
(320
|
)
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
(320
|
)
| |
|
(11,111
|
)
| | | | |
|
Income (loss) attributable to Kindred
| | |
$
|
(115,186
|
)
| |
$
|
(1,094
|
)
| |
$
|
15,027
|
| |
$
|
82,380
|
| |
$
|
3,063
| |
$
|
35,235
|
| |
$
|
134,611
|
| |
$
|
19,425
|
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Diluted earnings (loss) per common share
| | |
$
|
(1.32
|
)
| | | | | | | | | | | | | |
$
|
0.21
| | | | | |
Diluted shares used in computing earnings (loss) per common share
| | | |
87,506
| | | | | | | | | | | | | | | |
88,165
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | Three months ended June 30, 2016 |
| | | | | | | | | | | Charges | | |
| | | | | | | | | | | | | | | | | | | | | | | Gentiva | | | | |
| | | | | | | | | | | Business | | | | | | | | | | | | transaction | | | Before |
| | | | | | | | | As | | interruption | | Litigation | | Impairment | | Research and | | Debt | | Restructuring | | and | | | | charges |
| | | | | | | | | reported | | settlements | | contingency | | charges | | development | | amendment | | charges | | integration | | Total | | ("core") (a) |
Income from continuing operations: | | | | | | | | | | | | | | | | | | | | | |
Segment adjusted operating income:
| | | | | | | | | | | | | | | | | | | | | |
|
Kindred at Home:
| | | | | | | | | | | | | | | | | | | | | |
| |
Home health
| | |
$
|
76,030
| | |
$
|
(171
|
)
| |
$
|
-
| | |
$
|
-
| | |
$
|
-
| |
$
|
-
| | |
$
|
-
| | |
$
|
-
| | |
$
|
(171
|
)
| |
$
|
75,859
| |
| |
Hospice
| | |
|
31,329
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
31,329
|
|
| | | | | | | | |
|
107,359
|
| |
|
(171
|
)
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
(171
|
)
| |
|
107,188
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Hospital division
| | | |
127,510
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
127,510
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Kindred Rehabilitation Services:
| | | | | | | | | | | | | | | | | | | | | |
| |
Kindred Hospital Rehabilitation Services
| | | |
50,729
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
50,729
| |
| |
RehabCare
| | |
|
11,158
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
11,158
|
|
| | | | | | | | |
|
61,887
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
61,887
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Support center expenses
| | | |
(68,444
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
3,076
| | |
1,103
| | | |
-
| | | |
-
| | | |
4,179
| | | |
(64,265
|
)
|
Litigation contingency expense
| | | |
(930
|
)
| | |
-
| | | |
750
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
750
| | | |
(180
|
)
|
Impairment charges
| | | |
(6,131
|
)
| | |
-
| | | |
-
| | | |
6,131
| | | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
6,131
| | | |
-
| |
Restructuring charges
| | | |
(336
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
336
| | | |
-
| | | |
336
| | | |
-
| |
Transaction costs
| | | |
(1,846
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | | |
1,674
| | | |
1,674
| | | |
(172
|
)
|
Building rent
| | | |
(67,025
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
(67,025
|
)
|
Equipment rent
| | | |
(11,211
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
(11,211
|
)
|
Restructuring charges - rent
| | | |
(462
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
462
| | | |
-
| | | |
462
| | | |
-
| |
Depreciation and amortization
| | | |
(33,198
|
)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
(33,198
|
)
|
Interest, net
| | |
|
(57,567
|
)
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
(57,567
|
)
|
Income from continuing operations before income taxes
| | | |
49,606
| | | |
(171
|
)
| | |
750
| | | |
6,131
| | | |
3,076
| | |
1,103
| | | |
798
| | | |
1,674
| | | |
13,361
| | | |
62,967
| |
Provision for income taxes
| | |
|
19,379
|
| |
|
(129
|
)
| |
|
(1,511
|
)
| |
|
(2,962
|
)
| |
|
2,324
| |
|
833
|
| |
|
2,054
|
| |
|
1,265
|
| |
|
1,874
|
| |
|
21,253
|
|
| | | | | | | | | |
30,227
| | | |
(42
|
)
| | |
2,261
| | | |
9,093
| | | |
752
| | |
270
| | | |
(1,256
|
)
| | |
409
| | | |
11,487
| | | |
41,714
| |
Noncontrolling interests
| | |
|
(8,847
|
)
| |
|
-
|
| |
|
-
|
| |
|
(1,016
|
)
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
(1,016
|
)
| |
|
(9,863
|
)
|
|
Income attributable to Kindred
| | |
$
|
21,380
|
| |
$
|
(42
|
)
| |
$
|
2,261
|
| |
$
|
8,077
|
| |
$
|
752
| |
$
|
270
|
| |
$
|
(1,256
|
)
| |
$
|
409
|
| |
$
|
10,471
|
| |
$
|
31,851
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Diluted earnings per common share
| | |
$
|
0.23
| | | | | | | | | | | | | | | | | | |
$
|
0.35
| |
Diluted shares used in computing earnings per common share
| | | |
87,500
| | | | | | | | | | | | | | | | | | | |
87,500
| |
|
|
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
(a)
|
During the first quarter of 2017, the Company revised its
definitions of “core” non-GAAP measures. See “Non-GAAP Measures”
beginning on page 14 for a discussion regarding the revised
definitions. For comparability, core results for 2016 were revised
to conform to the current year presentation.
|
| |
|
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Reconciliation of GAAP Results to Non-GAAP Measures (Continued) |
(Unaudited) |
(In thousands, except per share amounts)
|
| |
|
|
|
| |
|
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | Three months ended September 30, 2017 | | |
| | | | | | | | | | | Charges | | | | |
| | | | | | | | | | | | | | | | | Deferred | | | | | | |
| | | | | | | | | | | RehabCare | | | | | | tax asset | | | | Before | | |
| | | | | | | | | As | | collection | | Litigation | | Restructuring | | valuation | | | | charges | | |
| | | | | | | | | reported | | litigation | | contingency | | charges | | allowance | | Total | | ("core") (a) | | |
Income (loss) from continuing operations: | | | | | | | | | | | | | | | | | |
Segment adjusted operating income:
| | | | | | | | | | | | | | | | | |
|
Kindred at Home:
| | | | | | | | | | | | | | | | | |
| |
Home health
| | |
$
|
66,431
| | |
$
|
-
| | |
$
|
-
| |
$
|
-
| |
$
|
-
| | |
$
|
-
| | |
$
|
66,431
| | | |
| |
Hospice
| | |
|
34,761
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
34,761
|
| | |
| | | | | | | | |
|
101,192
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
101,192
|
| | |
| | | | | | | | | | | | | | | | | | | | | | |
|
|
Hospital division
| | | |
61,455
| | | |
-
| | | |
-
| | |
-
| | |
-
| | | |
-
| | | |
61,455
| | | |
| | | | | | | | | | | | | | | | | | | | | | |
|
|
Kindred Rehabilitation Services:
| | | | | | | | | | | | | | | | | |
| |
Kindred Hospital Rehabilitation Services
| | | |
49,151
| | | |
-
| | | |
-
| | |
-
| | |
-
| | | |
-
| | | |
49,151
| | | |
| |
RehabCare
| | |
|
8,298
|
| |
|
(2,243
|
)
| |
|
-
| |
|
-
| |
|
-
|
| |
|
(2,243
|
)
| |
|
6,055
|
| | |
| | | | | | | | |
|
57,449
|
| |
|
(2,243
|
)
| |
|
-
| |
|
-
| |
|
-
|
| |
|
(2,243
|
)
| |
|
55,206
|
| | |
| | | | | | | | | | | | | | | | | | | | | | |
|
Support center expenses
| | | |
(60,323
|
)
| | |
-
| | | |
-
| | |
-
| | |
-
| | | |
-
| | | |
(60,323
|
)
| | |
Litigation contingency expense
| | | |
(4,000
|
)
| | |
-
| | | |
4,000
| | |
-
| | |
-
| | | |
4,000
| | | |
-
| | | |
Restructuring charges
| | | |
(14,375
|
)
| | |
-
| | | |
-
| | |
14,375
| | |
-
| | | |
14,375
| | | |
-
| | | |
Building rent
| | | |
(64,422
|
)
| | |
-
| | | |
-
| | |
-
| | |
-
| | | |
-
| | | |
(64,422
|
)
| | |
Equipment rent
| | | |
(8,537
|
)
| | |
-
| | | |
-
| | |
-
| | |
-
| | | |
-
| | | |
(8,537
|
)
| | |
Restructuring charges - rent
| | | |
(2,125
|
)
| | |
-
| | | |
-
| | |
2,125
| | |
-
| | | |
2,125
| | | |
-
| | | |
Depreciation and amortization
| | | |
(24,808
|
)
| | |
-
| | | |
-
| | |
-
| | |
-
| | | |
-
| | | |
(24,808
|
)
| | |
Interest, net
| | |
|
(60,441
|
)
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
(60,441
|
)
| | |
Loss from continuing operations before income taxes
| | | |
(18,935
|
)
| | |
(2,243
|
)
| | |
4,000
| | |
16,500
| | |
-
| | | |
18,257
| | | |
(678
|
)
| | |
Income tax benefit
| | |
|
(1,225
|
)
| |
|
(883
|
)
| |
|
1,574
| |
|
5,612
| |
|
(7,140
|
)
| |
|
(837
|
)
| |
|
(2,062
|
)
| | |
| | | | | | | | | |
(17,710
|
)
| |
$
|
(1,360
|
)
| |
$
|
2,426
| |
$
|
10,888
| |
$
|
7,140
|
| |
$
|
19,094
|
| | |
1,384
| | | |
Noncontrolling interests
| | |
|
(10,960
|
)
| | | | | | | | | | | |
|
(10,960
|
)
| | |
|
Loss attributable to Kindred
| | |
$
|
(28,670
|
)
| | | | | | | | | | | |
$
|
(9,576
|
)
| | |
| | | | | | | | | | | | | | | | | | | | | | |
|
Diluted loss per common share
| | |
$
|
(0.32
|
)
| | | | | | | | | | | |
$
|
(0.11
|
)
| | |
Diluted shares used in computing loss per common share
| | | |
87,597
| | | | | | | | | | | | | |
87,597
| | | |
| | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | Three months ended September 30, 2016 |
| | | | | | | | | | | Charges | | |
| | | | | | | | | | | | | | | | | Gentiva | | Deferred | | | | |
| | | | | | | | | | | | | | | | | transaction | | tax | | | | Before |
| | | | | | | | | As | | Impairment | | Research and | | Restructuring | | and | | valuation | | | | charges |
| | | | | | | | | reported | | charges | | development | | charges | | integration | | allowance | | Total | | ("core") (a) |
Income (loss) from continuing operations: | | | | | | | | | | | | | | | |
Segment adjusted operating income:
| | | | | | | | | | | | | | | | | |
|
Kindred at Home:
| | | | | | | | | | | | | | | | | |
| |
Home health
| | |
$
|
75,073
| | |
$
|
-
| | |
$
|
-
| |
$
|
-
| |
$
|
-
| | |
$
|
-
| | |
$
|
-
| | |
$
|
75,073
| |
| |
Hospice
| | |
|
31,326
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
31,326
|
|
| | | | | | | | |
|
106,399
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
106,399
|
|
| | | | | | | | | | | | | | | | | | | | | | |
|
|
Hospital division
| | | |
83,940
| | | |
-
| | | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
83,940
| |
| | | | | | | | | | | | | | | | | | | | | | |
|
|
Kindred Rehabilitation Services:
| | | | | | | | | | | | | | | | | |
| |
Kindred Hospital Rehabilitation Services
| | | |
49,759
| | | |
-
| | | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
49,759
| |
| |
RehabCare
| | |
|
7,524
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
7,524
|
|
| | | | | | | | |
|
57,283
|
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
57,283
|
|
| | | | | | | | | | | | | | | | | | | | | | |
|
Support center expenses
| | | |
(62,823
|
)
| | |
-
| | | |
3,288
| | |
-
| | |
-
| | | |
-
| | | |
3,288
| | | |
(59,535
|
)
|
Impairment charges
| | | |
(297,276
|
)
| | |
297,276
| | | |
-
| | |
-
| | |
-
| | | |
-
| | | |
297,276
| | | |
-
| |
Restructuring charges
| | | |
(22,813
|
)
| | |
-
| | | |
-
| | |
22,813
| | |
-
| | | |
-
| | | |
22,813
| | | |
-
| |
Transaction costs
| | | |
(2,982
|
)
| | |
-
| | | |
-
| | |
-
| | |
1,250
| | | |
-
| | | |
1,250
| | | |
(1,732
|
)
|
Building rent
| | | |
(66,946
|
)
| | |
-
| | | |
-
| | |
-
| | |
272
| | | |
-
| | | |
272
| | | |
(66,674
|
)
|
Equipment rent
| | | |
(9,911
|
)
| | |
-
| | | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
(9,911
|
)
|
Restructuring charges - rent
| | | |
(58,650
|
)
| | |
-
| | | |
-
| | |
58,650
| | |
-
| | | |
-
| | | |
58,650
| | | |
-
| |
Depreciation and amortization
| | | |
(32,995
|
)
| | |
-
| | | |
-
| | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
(32,995
|
)
|
Interest, net
| | |
|
(58,059
|
)
| |
|
-
|
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
(58,059
|
)
|
Income (loss) from continuing operations before income taxes
| | | |
(364,833
|
)
| | |
297,276
| | | |
3,288
| | |
81,463
| | |
1,522
| | | |
-
| | | |
383,549
| | | |
18,716
| |
Provision for income taxes
| | |
|
283,182
|
| |
|
50,637
|
| |
|
1,280
| |
|
31,703
| |
|
592
|
| |
|
(363,132
|
)
| |
|
(278,920
|
)
| |
|
4,262
|
|
| | | | | | | | | |
(648,015
|
)
| | |
246,639
| | | |
2,008
| | |
49,760
| | |
930
| | | |
363,132
| | | |
662,469
| | | |
14,454
| |
Noncontrolling interests
| | |
|
(9,574
|
)
| |
|
(288
|
)
| |
|
-
| |
|
-
| |
|
-
|
| |
|
-
|
| |
|
(288
|
)
| |
|
(9,862
|
)
|
|
Income (loss) attributable to Kindred
| | |
$
|
(657,589
|
)
| |
$
|
246,351
|
| |
$
|
2,008
| |
$
|
49,760
| |
$
|
930
|
| |
$
|
363,132
|
| |
$
|
662,181
|
| |
$
|
4,592
|
|
| | | | | | | | | | | | | | | | | | | | | | |
|
Diluted earnings (loss) per common share
| | |
$
|
(7.57
|
)
| | | | | | | | | | | | | |
$
|
0.05
| |
| | | | | | | | | | | | | | | |
Diluted shares used in computing earnings (loss) per common share
| | | |
86,869
| | | | | | | | | | | | | | | |
87,529
| |
|
|
|
|
| | | | | | | | | | | | | | | | | | | |
(a)
|
During the first quarter of 2017, the Company revised its
definitions of “core” non-GAAP measures. See “Non-GAAP Measures”
beginning on page 14 for a discussion regarding the revised
definitions. For comparability, core results for 2016 were revised
to conform to the current year presentation.
|
| |
|
|
|
|
|
KINDRED HEALTHCARE, INC. |
Reconciliation of GAAP Results to Non-GAAP Measures (Continued) |
(Unaudited) |
(In thousands)
|
| |
|
| |
|
| |
| |
| |
| |
| | | | | | | Three months ended | | Year ended |
| | | | | | | December 31, | | December 31, |
| | | | | | |
| 2017 |
| |
| 2016 |
| |
| 2017 |
| |
| 2016 |
|
| | | | | | | | | | | | |
|
Reconciliation of net cash flows provided by operating activities to
core
| | | | | | | | | |
|
operating cash flows and core free cash flows:
| | | | | | | | | |
|
Net cash flows provided by operating activities
| | | $ | 67,183 | | |
$
|
147,001
| | | $ | 75,695 | | |
$
|
188,236
| |
|
Adjustments to remove certain payments (including payments made
for discontinued operations) included in net cash flows provided
by operating activities:
| | | | | | | | | |
| | |
Transaction, severance, research and development, and retention
| | | | 20,160 | | | |
12,822
| | | | 56,479 | | | |
30,780
| |
| | |
Insurance restructuring costs
| | | | 10,406 | | | |
-
| | | | 10,406 | | | |
-
| |
| | |
Business interruption settlements
| | | | - | | | |
-
| | | | (3,796 | ) | | |
(1,309
|
)
|
| | |
Lease termination fees - restructuring
| | | | 7,458 | |
| |
4,998
| | | | 13,389 | | | |
8,498
| |
| | |
Capitalized lender fees related to debt amendment
| | | | - | | | |
-
| | | | 5,403 | | | |
7,375
| |
| | |
Other debt refinancing costs (expensed)
| | | | - | | | |
-
| | | | - | | | |
917
| |
| | |
Litigation
| | |
| - |
| |
|
-
|
| |
| 12,593 |
| |
|
132,643
|
|
| | | | | | |
| 38,024 |
| |
|
17,820
|
| |
| 94,474 |
| |
|
178,904
|
|
| |
Net cash flows provided by operating activities excluding certain
items before income tax benefit of certain payments
| | | | 105,207 | | | |
164,821
| | | | 170,169 | | | |
367,140
| |
| |
Benefit of reduced income tax payments resulting from certain
payments (a)
| | |
| (18,676 | ) | |
|
(22,343
|
)
| |
| (33,250 | ) | |
|
(67,862
|
)
|
| | |
Net cash flows provided by operating activities excluding certain
items (core operating cash flows)
| | | | 86,531 | | | |
142,478
| | | | 136,919 | | | |
299,278
| |
| | | | | | | | | | | | |
|
|
Less routine capital expenditures
| | | | (24,006 | ) | | |
(27,349
|
)
| | | (69,806 | ) | | |
(96,052
|
)
|
|
Less distributions to noncontrolling interests
| | |
| (12,854 | ) | |
|
(10,745
|
)
| |
| (61,226 | ) | |
|
(45,985
|
)
|
| | |
Free cash flows excluding certain items (core free cash flows)
| | | $ | 49,671 |
| |
$
|
104,384
|
| | $ | 5,887 |
| |
$
|
157,241
|
|
| | | | | | | | | | | | |
|
|
|
|
| | | | | | | | | | |
(a)
|
The Company did not pay federal and state income taxes (where state
unitary or consolidated tax returns are allowed) in 2017 due
primarily to the loss associated with the sale of the Company's
skilled nursing facility business. In 2016, the Company did not pay
these taxes as a result of a consolidated taxable loss. These cash
savings in both years are recognized in GAAP cash flows and offer
additional sources of cash when evaluating the Company's cash flow
generating capability before certain payments. The Company
anticipates it will have approximately $775 million of federal NOLs
that, on a tax effected basis of approximately $160 million, should
offset approximately 90% of core book tax estimates until exhausted.
|
| |
| |
| |
| |
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180228005452/en/
Contacts:
Kindred Healthcare, Inc.
Todd Flowers, 502-596-6569
Source: Kindred Healthcare, Inc.
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