Kelly Gill, CEO, commented, "For the second quarter, our EBITDA increased $1.3 million to $1.9 million compared to $0.6 million in the first quarter of 2012.
This is due in large part to operational improvements during the period.
Adjusted EBITDA, which takes into consideration our significant investment in start-up costs for our new nursing centers in Kentucky and West Virginia as well as certain separation costs, increased by $1.1 million to $2.7 million compared to $1.6 million in the first quarter of 2012.
We expect both of these centers to be accretive to earnings in 2013."
noted, "Although our skilled mix decreased slightly from the first quarter of 2012, consistent with other industry peers, we remain focused on enhancing our high acuity patient care services, modernizing our facilities, and prudently expanding our facility portfolio.
We have reached the phase of our strategic plan where we are actively seeking opportunities to grow our portfolio.
We now have the ability to add and integrate additional licensed beds with greater ease increasing our operating margins while incurring only modest incremental growth in general and administrative expense."
continued, "From a development standpoint, I am very pleased the recently announced nursing center in Clinton, Kentucky has admitted its first patients and is on its way to obtaining its Medicare and Medicaid certifications.
Also, our recently opened facility in West Virginia has obtained its certification and has begun to admit additional patients each day.
We expect certification of the Clinton, Kentucky, facility to be completed in the next few months.
As expected, our brand new, state-of-the art West Virginia nursing center has attracted a large percentage of Medicare patients and we expect this nursing center to generate monthly positive pre-tax income before the end of 2012."
, commenting further on the company's growth strategy, noted "We believe that through acquisition of new nursing centers we can grow the Company's revenue and contribution margin with only modest incremental growth in general and administrative expense.
Kelly J. Gill
Chief Executive Officer