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Kindred 1Q profit rises 49 percent; stock rockets

Tue, 04/26/2011 - 9:45am
The Associated Press

Health care services company Kindred Healthcare Inc.'s first-quarter profit surged 49 percent and topped expectations on rising admissions.

The company runs long-term acute-care hospitals and nursing homes and has a contract rehabilitation services business.

Kindred said Tuesday that first-quarter net income jumped to $22.1 million, or 55 cents per share, compared with $14.9 million, or 38 cents per share, during the same period last year. Revenue rose 9 percent to $1.19 billion.

Excluding certain charges, Kindred reported earnings of 65 cents per share. Analysts polled by FactSet expected 48 cents per share on $1.19 billion in revenue.

Admissions rose 10 percent, boosted by Medicare patients and a hospital acquisition in southern California. Meanwhile, admissions at facilities open at least a year, which exclude new and recently acquired facilities, rose 3 percent.

Kindred is not providing guidance for the full year, citing its pending buyout of RehabCare Group Inc. In February, Kindred announced that it would pay $900 million, or about $35 per share, for RehabCare, based in St. Louis, in a cash and stock deal.

The companies expect the deal to close around June 30.

Kindred's stock price rose $3.16, or 13 percent, to $27.39 in afternoon trading. The stock earlier reached $27.57, its highest point in more than two years.

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