Shares of Skilled Healthcare Group Inc. surged after the nursing facility operator said its profit rose 29 percent in the first quarter, exceeding Wall Street forecasts. The Foothill Ranch, Calif., company said revenue grew at its skilled nursing and assisted living business and its ancillary service business, which provides hospice and rehabilitation therapy services. Its profit rose to $10.9 million, or 29 cents per share, and revenue grew 5 percent to $189.5 million.
Reuters says analysts were expecting 27 cents per share and revenue of $194.2 million in revenue. Skilled Healthcare stock climbed 84 cents, or 8.4 percent, to $10.91. The company said skilled nursing and assisted living facility revenue grew 4 percent to $165.5 million, and ancillary service revenue increased 9 percent to $23.9 million. A year ago, it reported a profit of $8.4 million, or 23 cents per share, on $180.7 million in revenue.
So why does the nursing home industry spend millions every year for unconstitutional tort reform measures when they are extremely profitable?