Nursing-facility operator Skilled Healthcare Group Inc. on Wednesday said it expects to restate its results going back to 2006 because it understated reserves for its accounts receivables.
Skilled Healthcare said it appears the errors came from improper dating of accounts receivables by a former employee. The restatement affects the company's results from January 1, 2006 to March 31, 2009.
Accounts receivable are money the company is owed in exchange for good or services that have been delivered and used, but not yetpaid for. Skilled Healthcare estimated it will cost $8 million to $9 million to correct the errors, after taxes. As a result, the Foothill Ranch, Calif., company now expects a profit of $1.02 to $1.08 per share for this year, down from its prior view of $1.08 to $1.14 per share.
A poll by Thomson Reuters shows analysts expect $1.11 per share, on average.
Shares fell 76 cents, or 9.1 percent, to close at $7.58, having reached a new 52-week low of $7.45 earlier in the session.
source: yahoo
Skilled Healthcare said it appears the errors came from improper dating of accounts receivables by a former employee. The restatement affects the company's results from January 1, 2006 to March 31, 2009.
Accounts receivable are money the company is owed in exchange for good or services that have been delivered and used, but not yetpaid for. Skilled Healthcare estimated it will cost $8 million to $9 million to correct the errors, after taxes. As a result, the Foothill Ranch, Calif., company now expects a profit of $1.02 to $1.08 per share for this year, down from its prior view of $1.08 to $1.14 per share.
A poll by Thomson Reuters shows analysts expect $1.11 per share, on average.
Shares fell 76 cents, or 9.1 percent, to close at $7.58, having reached a new 52-week low of $7.45 earlier in the session.
source: yahoo
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