Kindred Healthcare stocks plummet 30% following $685M loss
Louisville, Ky.-based Kindred Healthcare reported a $685.6 million loss in this year's third quarter, with stocks plunging 30 percent Tuesday, Louisville Business First reports.
Here are four things to know.
1. In addition to the deficit, Kindred will leave the skilled nursing facility industry.
2. The $685.6 million, or $7.89 per share, loss compares to Kindred's $14.6 million, or $0.20 per share, loss in the same period last year, according to the report.
3. Kindred said reasons for the deficit include $324.3 million in noncash goodwill and property impairment charges, $366.5 million in a noncash deferred tax valuation allowance and $77.5 million in restructuring changes after closing 15 long-term acute care hospitals.
4. "We are taking proactive strategic steps to position Kindred for long-term success against the backdrop of dynamic changes in the healthcare services industry," president and CEO Benjamin Breier said. "Our plan to exit the skilled nursing facility business, together with the significant cost realignment initiative we are undertaking in connection with the exit, are substantial steps forward in our continuing effort to transform Kindred's strategy and growth profile to enhance shareholder value."
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