The guidance includes projected pre-tax earnings range of $69.2 million to $73.8 million, with income from continuing operations ranging between $40.8 million and $43.5 million. According to the release, EBITDAR is a project range of $1.93 billion to $1.95 billion, with EBITDA between $244 million and $250 million.
According to the release, Sun’s 2010 guidance is based on the continuing operations of the company and the following additional assumptions:
- Compensation and benefits are expected to increase approximately 3 percent;
- Center lease costs are expected to increase approximately 3.8 percent, 1.5 percent for built-in increases and 2.3 percent related to facility modernization in cooperation with certain landlords;
- An effective income tax rate of 41 percent and 2010 cash income taxes paid of between $8 million and $10 million;
- No additional acquisitions or dispositions;
- An average outstanding debt balance of $685 million with an average all-in interest rate of 7.4 percent;
- Annual increase in depreciation and amortization of $5.0 million;
- Non-recurring costs in 2010 of $2.5 million associated with completing the installation of the first phase of our new clinical/billing platform, which will be fully implemented and operational in third quarter 2010; and
- Capital expenditures of between $50 million and $55 million, principally for: routine maintenance and renovations for facilities and IT systems; the build-out of 570 suite beds for our Rehab Recovery Suites in 2010, bringing the company’s total suite bed count up to 2,100 by the end of 2010, an increase of almost 38 percent; and the completion of our new clinical/billing platform.
Read the release on Sun Healthcare Group’s 2010 guidance.
