Kindred first-quarter profit up almost 90 percent

Kindred Healthcare Inc. Tuesday reported that its first-quarter net income increased nearly 90 percent on strong hospital admissions growth, improving nursing center results and growth in rehabilitation services.

First-quarter net income increased to $14.7 million, or 38 cents a share, compared with $7.8 million, or 20 cents per share, a year ago.

Certain items reduced net income by about $2.5 million, or 6 cents a share, the company said in a news release.

Content Continues Below

Analysts had expected earnings of 26 cents a share on revenue of $1.03 billion.

First-quarter revenue declined to $1.1 billion from $1.14 billion a year earlier. The company attributed the decline to the July 2007 spin-off of Kindred's institutional pharmacy business.

Excluding the institutional pharmacy business, revenue increased about 9 percent over the first quarter of 2007.

Kindred raised its full-year outlook for net income from continuing operations from $55 million to $59 million, or $1.40 to $1.50 a share, on revenue of about $4.2 billion. The company previously predicted earnings of $1.25 to $1.35.

The company said it expects second-quarter net income from continuing operations of $11 million to $13 million, or 29 cents to 34 cents a share.

Louisville-based Kindred (NYSE: KND) operates long-term acute-care hospitals, skilled nursing centers, and a contract rehabilitation services business.