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Last Update: 08-Jan-13 07:43 ET
Kindred Healthcare shares fall 2% following lowered 2013 guidance
Kindred Healthcare (KND $10.99 -0.28) announced revised earnings guidance for the year ended December 31, 2013 as a result of certain Medicare reimbursement changes included in the recently enacted American Taxpayer Relief Act of 2012. The Company expects consolidated revenues for 2013 will approximate $5.9 billion versus the $5.91 consensus. The Company expects to report income from continuing operations for 2013 between $60 million and $70 million or $1.10 to $1.30 per diluted share based upon diluted shares of 52.7 million versus the $1.31 consensus. The Company's previous earnings guidance for 2013 ranged from $1.20 to $1.40 per diluted share. The Company re-affirmed its operating cash flow guidance for 2013 at a range between $230 million and $250 million. Estimated routine capital expenditures for 2013 are expected to range from $120 million to $130 million, unchanged from previous guidance. In addition to its routine capital expenditures, the Company re-affirmed that its development of new or replacement transitional care hospitals, transitional care centers, and inpatient rehabilitation hospitals will approximate $20 million to $30 million in 2013. Operating cash flows in excess of the Company's routine and development capital spending programs, which are expected to remain at approximately $90 million for 2013, will be available to repay debt and fund acquisitions.
