RHB Rehabcare Grp. Inc.

RehabCare Group, Inc. (NYSE:RHB) today reported the following unaudited financial results.

          Fourth Third Fourth

Year Ended

Quarter Quarter Quarter

December 31,

Amounts in millions, except per share data

2010

2010

2009

2010(unaudited)

2009

  Consolidated Operating Revenues $ 339.3 $ 337.5 $ 249.8 $ 1,329.4 $ 848.6 Consolidated Operating Earnings (a) 36.1 33.7 6.5 133.6 40.9 Consolidated Net Earnings from Continuing Operations 18.6 16.2 — 64.9 19.6

 

Gain from Discontinued Operations, Net of Tax (b)   0.7     0.6     0.3     1.2     1.4   Consolidated Net Earnings 19.3 16.8 0.3 66.1 21.0 Net (Earnings) Loss Attributable to Noncontrolling Interests   (2.2 )   (1.1 )   0.4     (3.6 )   2.0   Net Earnings Attributable to RehabCare 17.1 15.7 0.7 62.5 23.0 Diluted Earnings per Share Attributable to RehabCare: Earnings from Continuing Operations, Net of Tax 0.66 0.61 0.02 2.48 1.14 Net Earnings 0.69 0.64 0.03 2.53 1.22   Hospital Operating Revenues 164.8 160.9 78.9 633.2 174.2 Hospital EBITDA (a) 25.1 20.7 (6.2 ) 84.3 (18.5 ) Hospital Operating Earnings (Loss) (a) 19.2 14.8 (9.2 ) 61.5 (26.1 )   SRS Operating Revenues 128.1 130.9 126.0 516.3 496.3 SRS EBITDA (a) 8.8 11.7 9.8 44.7 44.0 SRS Operating Earnings (a) 7.4 10.4 8.4 39.2 37.8   HRS Inpatient Operating Revenues 33.7 32.6 33.3 129.1 130.9 HRS Outpatient Operating Revenues   12.7     13.0     11.7     50.9     47.3   HRS Operating Revenues 46.4 45.6 45.0 180.0 178.2 HRS EBITDA (a) 10.2 9.1 7.9 35.1 31.9 HRS Operating Earnings (a) 9.6 8.5 7.3 32.9 29.5    

(a) The fourth quarter and year ended December 31, 2009, include certain transaction related pretax charges of $9.4 million, or $0.34 per diluted share (see table on page 11).

 

(b) The years ended December 31, 2010 and 2009 include after-tax gains from the discontinued operations of an inpatient rehabilitation facility in Miami of $1.2 million and $2.2 million, respectively. The year ended December 31, 2009, also includes a $0.8 million after-tax loss related to the Company’s Phase 2 Consulting business.

 

Management Comments

“2010 was a period of transformation for our Hospital division, which finished the year on a high note,” commented John H. Short, Ph.D., RehabCare President and Chief Executive Officer. “Stronger census in the Houston market, substantial improvement of underperforming hospitals and an emphasis on cost management combined for significant margin expansion in the fourth quarter.”

Dr. Short continued, “As expected, our Skilled Nursing Rehabilitation Services division experienced the repercussions of major regulatory changes in the fourth quarter. While same store revenues improved, earnings were compressed by lower productivity, and thus higher labor costs, as we ramped up staffing to provide more individual therapy. Given our ability to respond quickly and effectively to market pressures, we expect a steady recovery during 2011.

“The Hospital Rehabilitation Services division delivered an exceptional earnings performance, with inpatient rehabilitation facility (IRF) same store volume growth of 6.8% driven in part by our automated pre-admission screening process. We will continue to leverage technology to streamline operations as well as position us for more integrated care.”

Proposed Acquisition by Kindred Healthcare, Inc.

In a separate release earlier today, the Company announced that its Board of Directors unanimously approved a definitive merger agreement to be acquired by Kindred Healthcare, Inc. (NYSE: KND), which was entered into February 7, 2011. It is expected that the pending transaction will be completed on or about June 30, 2011.

“Our combination with Kindred creates the nation’s premier provider of services along the post-acute continuum,” stated Dr. Short. “In addition to delivering significant shareholder value, our blended organization will provide an unmatched depth of services, resources and experience for our patients, clients and clinical professionals across the country. We are pleased that the RehabCare brand, which has been synonymous with high-quality, innovative post-acute care for nearly 30 years, will represent the combined company’s contract rehabilitation services going forward.”

Financial Overview of Fourth Quarter

Consolidated operating revenues for the fourth quarter of 2010 were $339.3 million, a 35.8% increase compared to $249.8 million in the 2009 fourth quarter. Excluding Triumph, which contributed revenues of $117.8 million in the 2010 fourth quarter and $39.7 million in the 2009 fourth quarter, consolidated operating revenues increased $11.4 million, or 5.4%.

Consolidated net earnings attributable to RehabCare were $17.1 million, or $0.69 per diluted share, in the fourth quarter of 2010 compared to $0.7 million, or $0.03 per diluted share, in the prior year quarter. Earnings in the fourth quarter of 2009 included $7.2 million, or $0.34 per diluted share, of certain after-tax charges, substantially all of which related to the Triumph merger (see table on page 11).

The Company’s IRF in Miami has been classified as a discontinued operation as a result of an agreement with Select Medical Corporation, which closed on January 1, 2011, that involved the exchange of the IRF for Select’s 70-bed long-term acute care hospital (LTACH) in northwest Indiana. The Company generated income from this discontinued operation, net of tax, of $0.7 million, or $0.03 per diluted share, in the fourth quarter of 2010 and approximately $0.3 million, or $0.01 per diluted share, in the 2009 fourth quarter.

Operating revenues in the Hospital division for the fourth quarter of 2010 increased $3.8 million, or 2.4%, sequentially to $164.8 million. Same store revenues increased $2.9 million, or 1.8% on a sequential basis. Earnings before interest, taxes, depreciation and amortization (EBITDA) improved by $4.4 million sequentially to $25.1 million, or 15.2% of revenue.

At year end, the Hospital division operated a total of 34 hospitals, including 29 LTACHs and five IRFs.

Operating revenues in the Skilled Nursing Rehabilitation Services (SRS) division increased 1.7% from $126.0 million in the fourth quarter of 2009 to $128.1 million in the fourth quarter of 2010, driven by a 2.2% increase in the average number of contract therapy programs operated. Contract therapy same store revenues increased 3.2%. Operating earnings were $7.4 million, or 5.8% of revenue, compared to $8.4 million, or 6.6% of revenue, in the fourth quarter of 2009.

On December 31, 2010, SRS operated in 1,112 locations compared to 1,131 locations at the end of the third quarter of 2010 and 1,118 locations at the end of the fourth quarter of 2009. Openings and closings in the quarter totaled 38 and 57, respectively, resulting in a net 19 fewer units. SRS had 39 signed but unopened contracts at the end of the fourth quarter.

In December, the Medicare Part B physician fee schedule and therapy cap exceptions process were extended through December 31, 2011.

The Hospital Rehabilitation Services (HRS) division’s 2010 fourth quarter operating revenues increased 3.3% to $46.4 million from $45.0 million in the fourth quarter of 2009. Inpatient operating revenues increased 1.2% and same store revenues improved 4.9% over the prior year quarter. The average number of inpatient programs declined 1.5% compared to the prior year quarter. Outpatient operating revenues increased 9.0% in the 2010 fourth quarter despite an 11.8% decline in the average number of outpatient programs. This was driven by a 23.7% improvement in average revenue per program including 10.5% same store growth in outpatient revenues. HRS operating earnings were $9.6 million, or 20.6% of revenue, compared to operating earnings of $7.3 million, or 16.3% of revenue, for the 2009 fourth quarter.

At December 31, 2010, the division operated 105 IRF programs, down one both sequentially and from a year ago. The division had two IRF openings and three IRF closings, one outpatient opening and one outpatient closing during the fourth quarter. At year end, the number of signed but unopened contracts was six, including three IRFs.

Balance Sheet and Liquidity

At December 31, 2010, the Company had $23.2 million in cash and cash equivalents and $398.5 million in outstanding debt excluding unamortized original issue discounts. The Company has paid down debt by $65.7 million during 2010. Days sales outstanding (DSO) remained flat sequentially at 61.9 days.

For the year ended December 31, 2010, the Company generated cash from operations of $103.8 million and expended $30.6 million for capital expenditures related to hospital start-ups, upgraded services at several hospitals, companywide information systems and hospital facility maintenance capital.

Outlook

The Company does not provide consolidated revenue and earnings per share guidance, but provides the following outlook for 2011:

• The Hospital division expects total year revenue of $700 to $725 million and EBITDA margin of 14% to 15%, with sequentially improving margins throughout the year. This outlook reflects a net 1.0% lower Medicare reimbursement adjustment for the Company’s LTACHs in the current rate year.
• The Skilled Nursing Rehabilitation Services division expects total year revenue of $525 to $540 million and operating earnings margins to progressively improve from approximately 5.5% to 7% by year end. This reflects the impact of regulatory changes, including the Multiple Procedure Payment Reduction rule, new concurrent therapy rules and the rollout of information system technologies to be completed in April 2011.
• The Hospital Rehabilitation Services division expects full year revenue of $185 to $200 million and comparable quarterly operating earnings margins as achieved in 2010.
• The effective tax rate, after consideration of noncontrolling interests, is anticipated to be 38.25% for the year.
• Net income attributable to noncontrolling interests is expected to approximate $5 to $6 million for the full year.
• DSO is expected to be between 60 and 63 days.
• Capital expenditures are anticipated to be $25 million in 2011, consisting of $8 million of information systems investments, $7.5 million in expansion projects and $9.5 million related to maintenance.

Conference Call Information

As noted in today’s separate acquisition announcement, Kindred and RehabCare management will host a conference call on February 8, 2011, beginning at 8:30 AM Eastern standard time. Listeners may access the call by dialing (913) 312-1305, or in a listen-only mode through Kindred’s website at www.kindredhealthcare.com.

A replay of the call will be available beginning at approximately 11:30 AM Eastern on February 8 by dialing (719) 457-0820, access code 7191328. The replay will be available through February 16.

About RehabCare Group

Established in 1982 and headquartered in St. Louis, MO, RehabCare (www.rehabcare.com) is a leading provider of post-acute care, owning and operating 34 long-term acute care and rehabilitation hospitals and providing program management services in partnership with over 1,250 hospitals and skilled nursing facilities in 42 states and Puerto Rico. RehabCare is included in the Russell 2000 and Standard and Poor’s Small Cap 600 Indices.

Additional Information about the Transaction between RehabCare and Kindred Healthcare, Inc.

In connection with the proposed transaction between Kindred and RehabCare, Kindred will file with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 that will include a joint proxy statement of Kindred and RehabCare that also constitutes a prospectus of Kindred. RehabCare and Kindred will mail the definitive proxy statement/prospectus to their respective stockholders. WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. You may obtain a free copy of the joint proxy statement/prospectus (when available) and other related documents filed by RehabCare and Kindred with the SEC at the SEC’s website at www.sec.gov. The joint proxy statement/prospectus (when available) and the other documents filed by RehabCare and Kindred with the SEC may also be obtained for free by accessing RehabCare’s website at www.rehabcare.com and clicking on the “Investor Information” link and then clicking on the link for “SEC Filings,” and Kindred’s website at www.kindredhealthcare.com and clicking on the “Investors” link and then clicking on the link for “SEC Filings.”

Participants in the Transaction

RehabCare, Kindred, and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from their respective stockholders in favor of the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of stockholders in connection with the proposed transaction will be set forth in the joint proxy statement/prospectus when it is filed with the SEC. You can find information about RehabCare’s executive officers and directors in its definitive proxy statement filed with the SEC on March 23, 2010. You can find information about Kindred’s executive officers and directors in Kindred’s definitive proxy statement filed with the SEC on April 1, 2010. You can obtain free copies of these documents from RehabCare or Kindred, respectively, from the RehabCare and Kindred websites using the contact information above.

Forward-Looking Statements

Information set forth in this document contains forward-looking statements, which involve a number of risks and uncertainties. RehabCare cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to, statements about the benefits of the business combination transaction involving RehabCare and Kindred, including future financial and operating results, the combined company’s plans, objectives, expectations and intentions and other statements that are not historical facts.

The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the ability to obtain regulatory approvals of the transaction on the proposed terms and schedule; the failure of RehabCare and Kindred stockholders to approve the transaction; failure to obtain the necessary financing for the transaction; the failure to consummate or delay in consummating the proposed merger for other reasons; the outcome of pending or potential litigation or governmental investigations; the risk that the businesses will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; uncertainty of the expected financial performance of Kindred following completion of the proposed transaction; Kindred’s ability to achieve the cost savings and synergies contemplated by the proposed transaction within the expected time frame; disruption from the proposed transaction making it more difficult to maintain relationships with customers, employees or suppliers; and general economic conditions that are less favorable than expected. Additional factors that may affect future results are contained in RehabCare’s and Kindred’s filings with the SEC, which are available at the SEC’s web site at www.sec.gov. Many of these factors are beyond the control of RehabCare or Kindred. RehabCare and Kindred disclaim any obligation to update and revise statements contained in these materials based on new information or otherwise.

This press release contains non-GAAP financial measures as such term is defined in Regulation G under the rules of the Securities and Exchange Commission. While the Company believes these non-GAAP financial measures are useful in evaluating the Company, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Further, these non-GAAP financial measures may differ from similarly titled measures presented by other companies. The Company has included reconciliations of these non-GAAP measures to the most directly comparable GAAP measure in the tables of this release.

 

I. Condensed Consolidated Statements of Earnings

(Unaudited; amounts in thousands, except per share data)           Three Months Ended Year Ended Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31, 2010 2010 2009 2010 2009   Operating revenues $ 339,344 $ 337,481 $ 249,807 $ 1,329,443 $ 848,612 Costs and expenses: Operating 267,836 269,078 204,403 1,056,671 684,312 Selling, general and administrative 27,397 26,872 33,876 108,618 107,130 Depreciation and amortization 7,998 7,801 5,058 30,595 16,250 Total costs and expenses 303,231 303,751 243,337 1,195,884 807,692   Operating earnings 36,113 33,730 6,470 133,559 40,920   Interest income 20 32 79 98 98 Interest expense (7,866 ) (8,250 ) (3,927 ) (33,167 ) (5,546 ) Other income (expense), net 312 5 8 319 12 Equity in net income of affiliates 199 114 105 640 431  

Earnings from continuing operations before income taxes

28,778 25,631 2,735 101,449 35,915 Income tax expense 10,148 9,394 2,689 36,559 16,291 Earnings from continuing operations 18,630 16,237 46 64,890 19,624 Gain from discontinued operations 673 541 257 1,237 1,365 Net earnings 19,303 16,778 303 66,127 20,989 Net (earnings) loss attributable to noncontrolling interests (2,250 ) (1,079 ) 352 (3,677 ) 1,966 Net earnings attributable to RehabCare $ 17,053 $ 15,699 $ 655 $ 62,450 $ 22,955   Amounts attributable to RehabCare: Earnings from continuing operations $ 16,380 $ 15,158 $ 398 $ 61,213 $ 21,590 Gain from discontinued operations 673 541 257 1,237 1,365 Net earnings $ 17,053 $ 15,699 $ 655 $ 62,450 $ 22,955   Diluted EPS attributable to RehabCare: Earnings from continuing operations $ 0.66 $ 0.61 $ 0.02 $ 2.48 $ 1.14 Gain from discontinued operations 0.03 0.03 0.01 0.05 0.08 Net earnings $ 0.69 $ 0.64 $ 0.03 $ 2.53 $ 1.22   Weighted average diluted shares 24,770 24,715 21,284 24,706 18,862       II. Condensed Consolidated Balance Sheets (Amounts in thousands)     Unaudited December 31, December 31, 2010 2009 Assets Cash and cash equivalents $ 23,205 $ 24,690 Accounts receivable, net 222,179 199,447 Deferred tax assets 21,034 21,249 Other current assets 14,559 19,530 Total current assets 280,977 264,916   Property and equipment, net 119,591 111,814 Goodwill 559,866 566,078 Intangible assets 127,227 135,406 Investment in unconsolidated affiliate 4,913 4,761 Assets held for sale 10,407 — Other assets 23,588 27,005 $ 1,126,569 $ 1,109,980 Liabilities & Equity Current portion of long-term debt $ 9,116 $ 7,507 Payables & accruals 154,248 144,113 Total current liabilities 163,364 151,620   Long-term debt, less current portion 381,772 447,760 Other non-current liabilities 60,450 50,980 Stockholders’ equity 500,098 437,338 Noncontrolling interests 20,885 22,282 $ 1,126,569 $ 1,109,980       III. Condensed Consolidated Statements of Cash Flows (Unaudited; amounts in thousands)   Year Ended December 31, 2010   2009   Net cash provided by operating activities $ 103,838 $ 48,090 Net cash used in investing activities (30,981 ) (557,851 ) Net cash provided by (used in) financing activities (74,342 ) 507,078   Net decrease in cash and cash equivalents (1,485 ) (2,683 ) Cash and cash equivalents at beginning of period 24,690 27,373 Cash and cash equivalents at end of period $ 23,205 $ 24,690    

Supplemental information:

Additions to property and equipment $ (30,579 ) $ (13,215 )       IV. Operating Statistics (Unaudited; dollars in thousands)           Fourth Third Fourth Year Ended Quarter Quarter Quarter December 31, 2010 2010 2009 2010 2009 Hospitals (a) Operating revenues $ 164,778 $ 160,937 $ 78,876 $ 633,156 $ 174,194 Operating expenses 128,423 129,541 69,039 505,722 157,093 Selling, general and administrative 11,247 10,694 16,055 43,134 35,623 Depreciation and amortization 5,946 5,873 3,003 22,850 7,544 Operating earnings (loss) $ 19,162 $ 14,829 $ (9,221 ) $ 61,450 $ (26,066 ) Operating earnings margin 11.6 % 9.2 % -11.7 % 9.7 % -15.0 %   EBITDA $ 25,108 $ 20,702 $ (6,218 ) $ 84,300 $ (18,522 )   LTACHs Number of hospitals – end of period 29 29 28 29 28 Available licensed beds – end of period 1,605 1,605 1,593 1,605 1,593 Admissions 3,680 3,754 1,767 14,519 3,604 Patient days 96,834 96,424 47,596 376,567 94,394 Average length of stay (Medicare days only) 25 25 27 26 26 Net inpatient revenue per patient day $ 1,545 $ 1,513 $ 1,342 $ 1,523 $ 1,267 Occupancy rate 66 % 65 % 67 % 64 % 63 % Percent patient days - Medicare 74 % 74 % 72 % 73 % 72 %   IRFs (a) Number of hospitals – end of period 5 5 5 5 5 Available licensed beds – end of period 183 183 183 183 183 Admissions 921 905 871 3,590 3,513 Discharges 935 894 891 3,587 3,477 Average length of stay (Medicare days only) 12 12 12 12 12 Net inpatient revenue per discharge $ 14,504 $ 14,955 $ 15,042 $ 14,692 $ 14,273 Occupancy rate 68 % 70 % 68 % 69 % 67 % Percent patient days - Medicare 71 % 67 % 69 % 69 % 70 %     (a) Amounts in all periods exclude West Gables Rehabilitation Hospital, which was held for sale as of December 31, 2010, and accounted for as a discontinued operation.       IV. Operating Statistics Continued (Unaudited; dollars in thousands)           Fourth Third Fourth Year Ended Quarter Quarter Quarter December 31, 2010 2010 2009 2010 2009 Skilled Nursing Rehabilitation Services Operating revenues $ 128,132 $ 130,943 $ 125,965 $ 516,278 $ 496,250 Operating expenses 107,344 107,067 103,698 423,399 402,461 Selling, general and administrative 11,950 12,138 12,448 48,172 49,753 Depreciation and amortization 1,466 1,385 1,463 5,523 6,283 Operating earnings $ 7,372 $ 10,353 $ 8,356 $ 39,184 $ 37,753 Operating earnings margin 5.8 % 7.9 % 6.6 % 7.6 % 7.6 %   EBITDA $ 8,838 $ 11,738 $ 9,819 $ 44,707 $ 44,036   Average number of contract therapy locations 1,146 1,136 1,121 1,135 1,088 End of period number of contract therapy locations 1,112 1,131 1,118 1,112 1,118   Patient visits (in thousands) 2,008 2,054 2,023 8,162 8,056     Hospital Rehabilitation Services Operating revenues Inpatient Rehabilitation Facility (IRF) $ 31,469 $ 30,144 $ 31,294 $ 120,238 $ 123,661 Subacute 2,217 2,454 1,981 8,890 7,202 Total Inpatient $ 33,686 $ 32,598 $ 33,275 $ 129,128 $ 130,863 Outpatient 12,748 13,003 11,691 50,881 47,305 Total HRS $ 46,434 $ 45,601 $ 44,966 $ 180,009 $ 178,168 Operating expenses 32,069 32,470 31,666 127,550 124,758 Selling, general and administrative 4,200 4,040 5,373 17,312 21,500 Depreciation and amortization 586 543 592 2,222 2,423 Operating earnings $ 9,579 $ 8,548 $ 7,335 $ 32,925 $ 29,487 Operating earnings margin 20.6 % 18.7 % 16.3 % 18.3 % 16.6 %   EBITDA $ 10,165 $ 9,091 $ 7,927 $ 35,147 $ 31,910   Average number of programs IRF 106 106 110 105 112 Subacute 11 11 9 11 9 Total Inpatient 117 117 119 116 121 Outpatient 30 31 34 31 35 Total HRS 147 148 153 147 156   End of period number of programs IRF 105 106 106 105 106 Subacute 11 11 9 11 9 Total Inpatient 116 117 115 116 115 Outpatient 30 30 30 30 30 Total HRS 146 147 145 146 145   IRF discharges 11,136 10,473 10,907 41,992 44,123 Outpatient visits (in thousands) 263 274 305 1,078 1,264           V. Charges/Credits Included in Statement of Earnings (Amounts in thousands, except per share data)   Fourth Quarter 2009   Pre-Tax Impact After-Tax Impact Diluted EPS   Transaction expenses1 $ 7,070 $ 4,313 $ 0.20 Tax impact of non-deductible transaction expenses2 — 1,502 0.07 Severance expenses3 862 526 0.03 Long-term incentive plan expense resulting from transaction2 1,443 880 0.04   —   —   — $ 9,375 $ 7,221 $ 0.34   Breakdown by division Hospitals $ 8,405 Skilled Nursing Rehabilitation Services 648 Hospital Rehabilitation Services   322 $ 9,375   1$6,781 pretax related to the Triumph merger   2Transaction expenses directly related to the Triumph merger   3Severance expenses were primarily incurred in an effort to reduce corporate overhead and eliminate redundancies created by the Triumph merger       VI. Operating Earnings and EBITDA Reconciliation           Fourth Third Fourth Year Ended Quarter Quarter Quarter December 31, 2010 2010 2009 2010 2009   Net earnings $ 19,303 $ 16,778 $ 303 $ 66,127 $ 20,989 Income tax expense 10,148 9,394 2,689 36,559 16,291 Interest income (20 ) (32 ) (79 ) (98 ) (98 ) Interest expense 7,866 8,250 3,927 33,167 5,546 Other (income) expense, net (312 ) (5 ) (8 ) (319 ) (12 ) Equity in net income of affiliates (199 ) (114 ) (105 ) (640 ) (431 ) Gain from discontinued operations (673 ) (541 ) (257 ) (1,237 ) (1,365 ) Operating earnings 36,113 33,730 6,470 133,559 40,920 Depreciation and amortization 7,998 7,801 5,058 30,595 16,250 Consolidated EBITDA $ 44,111 $ 41,531 $ 11,528 $ 164,154 $ 57,170       Hospital operating earnings (loss) $ 19,162 $ 14,829 $ (9,221 ) $ 61,450 $ (26,066 ) Hospital depreciation and amortization 5,946 5,873 3,003 22,850 7,544 Hospital EBITDA $ 25,108 $ 20,702 $ (6,218 ) $ 84,300 $ (18,522 )     SRS operating earnings $ 7,372 $ 10,353 $ 8,356 $ 39,184 $ 37,753 SRS depreciation and amortization 1,466 1,385 1,463 5,523 6,283 SRS EBITDA $ 8,838 $ 11,738 $ 9,819 $ 44,707 $ 44,036     HRS operating earnings $ 9,579 $ 8,548 $ 7,335 $ 32,925 $ 29,487 HRS depreciation and amortization 586 543 592 2,222 2,423 HRS EBITDA $ 10,165 $ 9,091 $ 7,927 $ 35,147 $ 31,910