Select Medical, Cedar Realty, Kratos Defense report earnings
Select Medical Holdings Corp., Cedar Realty Trust and Kratos Defense & Security Solutions Inc.— all with connections to the midstate — have released earnings reports.
Select Medical Holdings Corp.
Select, based in Lower Allen Township, had net operating revenues of $1.54 billion for the six months ended June 30, of which approximately 73 percent was from its specialty hospitals and the remainder was from its outpatient rehabilitation segment.
For the quarter ended June 30, net operating revenues were up 2.1 percent over 2013, to $772.8 million. The specialty hospital segment was down 0.3 percent from last year, but the outpatient rehabilitation segment was up 9 percent. Overall net income was also up for the quarter, from $27.78 million last year to $35.34 million this year.
Select said specialty hospital revenues were down because patient days decreased 3.3 percent to 330,378 for the quarter, and occupancy percentage was down 4 percent to 69 percent for the quarter. However, average net revenue per patient day was up $30 to $1,562.
Outpatient rehabilitation revenue growth was principally due to a 5.9 percent increase in visits to 1,289,782 at Select's clinics and additional contracted management service revenue at clinics it manages, the company said. Net revenue per visit was $103, the same as last year.
Cedar Realty Trust
Net income for the quarter ended June 30 was $17.06 million, up significantly from $4.579 million last year. Much of the increase was attributable to gain on sales.
"As a result of our capital recycling efforts, we have disposed of four properties for $65.3 million with an average three-mile population density of 22,000 and acquired a property for $92.3 million with a three-mile population density of 325,000," Bruce Schanzer, Cedar president and CEO, said in a news release. "These ongoing portfolio improvements will enable us to drive increases in shareholder value."
Cedar said in the quarter, its same-property net operating income increased 2 percent; signed 61 new and renewal leases for 380,000 square feet; and had 93.3 percent of its total portfolio leased at quarter's end.
Cedar trades its shares on the New York Stock Exchange under the ticker CDR.
Kratos Defense & Security Solutions Inc.
Kratos reported a net loss of $49.9 million for the quarter ended June 29, compared to a net loss of $9.6 million for the same quarter last year.
"The U.S. federal government contracting and DoD environment remains challenging, including delays with program starts and contract awards, aggressive competition, routine protests being made by companies losing competitive procurements and the threat of a Continuing Resolution later this year," Kratos President and CEO Eric DeMarco said in a news release.
"However," he continued, "Kratos' business continued to strengthen in the second quarter ... and we are expecting a strong second half of the year as we execute on and deliver recent product orders and anticipate additional new contract awards."
The company said it continues to "right size" and restructure its business, reducing its employee headcount by 98 people — or 2.7 percent — in the quarter. It reports a 2 to 3 percent sequential headcount reduction in each of the past four quarters for a total of 425 personnel or 10.6 percent compared to July 1, 2013.