UPDATE 1-RehabCare quarterly profit doubles; shares jump
April 30th, 2008 | by admin |(Recasts, adds details, share movement)
April 30 (Reuters) - Rehabilitation services providerRehabCare Group Inc (RHB.N: Quote, Profile, Research) said first-quarter earnings morethan doubled, helped by lower operating expenses, sending itsshares up as much as 20 percent.
The company said it expects strong consolidated netearnings growth for 2008, but its quarterly consolidatedoperating earnings are expected to be uneven with all quartersimpacted by hospital start-up and ramp-up losses.
RehabCare’s contract therapy division, which accounted formore than 56 percent of its quarterly revenue, is expected tosee a modest net increase in the number of units and operatingearnings margins of 4.5 percent to 5.5 percent during 2008.
This is driven by same-store revenue growth and improvedoperating efficiencies, the company said in a statement.
The St. Louis, Missouri-based RehabCare posted a net incomeof $4.5 million, or 25 cents a share, for the latest firstquarter, compared with $2.0 million, or 12 cents per share, ayear ago.
Revenue was flat at $184.1 million.
Analysts had expected a profit of 24 cents a share,excluding items, on revenue of $173.8 million, according toReuters Estimates.
Contract therapy operating revenue was up 2 percentyear-over-year and 5 percent sequentially, at $104.3 million,helped by higher patient volume.
Shares of the company were trading up $2.14 at $17.70 inlate morning trade on the New York Stock Exchange. (Reporting by Suzannah Benjamin in Bangalore; Editing byGopakumar Warrier)
