Louisville, Ky.-based Kindred Healthcare reported Wednesday nearly $22.4 million in net income for the second quarter, up from last year's $35.8 million loss. Consolidated revenues also spiked 45.4 percent in Q2 to $1.83 billion from $1.26 billion in Q2 2014.
Kindred's hospital division revenues saw a 2.4 percent increase year over year to $627 million, due mainly to a 5.5 percent growth in revenue per admission. Same-hospital admissions actually declined, however, by 2.6 percent compared to Q2 2014.
The company reported $98 million in core operating cash flows, up significantly from $1 million in Q2 2014.
In the six months ended June 30, revenue grew 40 percent to $3.5 billion, compared to $2.5 billion at this time last year. The year-to-date loss attributable to Kindred totals $124 million, due largely to a reported loss in continuing operations. This year's total loss attributable to Kindred is significantly greater than last year's loss at this time of about $27.8 million.
These results reflect the company's first full quarter of combined operations since completing its acquisitions of Franklin, Tenn.-based Centerre Healthcare and Atlanta-based Gentiva Health Services.
"We have significantly progressed our Gentiva and Centerre integration efforts over the quarter. We are on track both operationally and financially for the year, including our goal to realize $35 million of synergy contribution in 2015," Stephen Farber, executive vice president and CFO of Kindred, said in a statement. "Our cash flow performance in the quarter was markedly improved over the prior year, and we continue to make progress with our leverage profile while investing in our businesses and returning significant capital to shareholders through our quarterly cash dividends."
Following these results, Kindred reaffirmed its 2015 outlook of $7.2 billion in annual revenue and core EBITDAR of about $1 billion to $1.05 billion. It raised its core earnings projections to $1.25 to $1.45 per diluted share from its prior estimate of $1.20 to $1.40 per diluted share.
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