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Kindred Healthcare (KND)
Q3 2012 Earnings Call
October 30, 2012 10:00 am ET
Charles Edward Jones - Chairman and Principal
Paul J. Diaz - Chief Executive Officer, Director and Chairman of Strategic Development Committee
Richard A. Lechleiter - Chief Financial Officer and Executive Vice President
Benjamin A. Breier - President and Chief Operating Officer
Kevin Campbell - Avondale Partners, LLC, Research Division
Gary Lieberman - Wells Fargo Securities, LLC, Research Division
Gary P. Taylor - Citigroup Inc, Research Division
Albert J. Rice - UBS Investment Bank, Research Division
Frank G. Morgan - RBC Capital Markets, LLC, Research Division
Robert M. Mains - Stifel, Nicolaus & Co., Inc., Research Division
Joanna Gajuk - BofA Merrill Lynch, Research Division
Previous Statements by KND
» Kindred Healthcare, Inc. Q3 2009 Earnings Call Transcript
» Kindred Healthcare Inc., Q3 2008 Earnings Call Transcript
» Kindred Healthcare, Inc. Q2 2008 Earnings Call Transcript
Charles Edward Jones
Good morning. Welcome to the Kindred Healthcare Third Quarter Conference Call. This is Eddie Jones from Corporate Communications. Before the company's presentation, I would like to read a cautionary statement.
This conference call includes forward-looking statements as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which involves a number of risks and uncertainties.
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 and its management are unable to predict or control, that may cause the company's actual results or performance to differ materially from any future results or performance expressed or implied by such forward-looking statements.
The company cautions participants that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. The company refers you to its reports filed with the Securities and Exchange Commission, including the company's annual report on Form 10-K, the company's other reports filed periodically with the SEC and its press release regarding the third quarter operating results for a discussion of these forward-looking statements and other factors that could affect these forward-looking statements.
Many of these factors are beyond the control of the company and its management. The company cautions investors that any forward-looking statements made by the company are not guarantees of future performance. The information being provided today is as of this date only, and 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.
Certain references to operating income or EBITDAR, as well as other non-GAAP disclosures, have been reconciled to the company's consolidated operating results and are available on the company's website, www.kindredhealthcare.com.
It is now my pleasure to introduce the participants in today's call: Paul Diaz, Chief Executive Officer; Rich Lechleiter, Executive Vice President and Chief Financial Officer; and Ben Breier, President and Chief Operating Officer. Mr. Diaz will begin the call.
Paul J. Diaz
Thank you, and good morning, everyone. Before we get started, I want to just take a moment to thank all of our teammates on the East Coast, thousands of which braved the night last night to make sure that all our patients were safe. We've had some minor damage in our facilities. We had at one point 30 facilities under generator last night. But again, thanks to all of our people in the field, clinical and operations, we got through the night. We obviously hope you'll join us in praying for those lives that were lost last night and all the families, thousands of families that have been displaced. But within the Kindred family, we're okay and we'll hopefully dig out over the next 48 hours.
Last night, we announced our operating results for the third quarter and maintained the midpoint of our annual earnings guidance of $1.45 per share and guided to a fourth quarter midpoint of $0.43 per share. Excluding certain items, our diluted earnings per share for the third quarter totaled $0.21, in line with our expectations. Each of our operating divisions reported good results from both a clinical and financial perspective, and our clinical and operating teams continued to deliver on our mission and our promise to patients, residents, customers and shareholders.
These results reaffirm our confidence in our long-term strategic plan, our annual earnings guidance and our ability to look for new ways to create value for our patients, teammates and shareholders.
For commenting further on our results and our opportunities going forward, I'd like for Rich to recap our operating results, and then we'll provide some additional operating color. Rich?
Richard A. Lechleiter
Thanks, Paul. Good morning, everybody. Just a couple of highlights. The $0.21 is our core EPS for the quarter. That's in line with our expectations internally as we think about the full year.
A couple of items to note. One, the Hospital division was very strong. 2% same-store admission growth, 4% revenue growth and 10% EBITDAR growth for the quarter, a very good showing. Our RehabCare business, margins were 11%, down a little bit sequentially from Q2 but quite strong nonetheless. In our Home Care business, we now approach $200 million of revenue and the margin's in that business now at 10% compared to 7% a year ago.
On the cost front, some very good news. In our Hospital division, our total cost per patient day was up only 0.08% from a year ago, while in our nursing centers, our cost per patient, they were actually down 0.04% from Q3 last year, very good showing.