Kindred Shares Plunge On Sizeable Loss, Plan To Exit Nursing Facility Business
Shares of Kindred Healthcare Inc. sank in Monday's extended session after the healthcare company posted wider losses and announced its decision to exit the nursing facility business. Kindred reported its third-quarter loss widened to $685.6 million, or $7.89 a share, from a loss of $14.6 million, or 17 cents a share, a year ago. Kindred cited various items including impairment and restructuring charges for deeper losses. Revenue grew to $1.79 billion from $1.76 billion. The company also plans to exit the nursing facility business as part of its growth strategy. "This decision will reduce annual rent obligations by approximately $90 million and annual capital expenditures by approximately $30 million," said Kindred in a statement. For 2016, the company projected revenue of $7.2 billion and earnings of 70 cents a share to 80 cents a share. Kindred shares plunged 18% after hours.
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