SEGMENTS

3 Months Ended

Mar. 31, 2012

SEGMENTS

SEGMENTS

NOTE 5.      SEGMENTS

The Company reports its operations in three segments:  Skilled Nursing Facility (“SNF”), Assisted Living Facility (“ALF”), and Corporate & Other. The SNF and ALF segments provide services to individuals needing long-term care in a nursing home or assisted living setting and management of those facilities. The Corporate & Other segment engages in the management of facilities and accounting and IT services. We evaluate financial performance and allocate resources primarily based upon segment operating income (loss). Segment operating results exclude interest expense and other non-operating income and expenses. The table below contains our segment information for the three months ended March 31, 2012 and 2011.

					Corporate
(Amounts in 000’s)	SNF		ALF		& Other			Eliminations			Total
Three months ended March 31, 2012 Restated (Note 2)
Net revenue	$	43,044	$	3,263	$	2,849		$	(2,325	)	$	46,831
Cost of services	38,763		2,369		—			(2,325		)	38,807
General and administrative	36		—		3,957			—			3,993
Facility rent expense	2,065		—		—			—			2,065
Depreciation and amortization	1,330		210		170			—			1,710
Operating income/(loss)	$	850	$	684	$	(1,278	)	$	—		$	256
Total assets, March 31, 2012	$	105,663	$	27,389	$	40,470		$	(9,849	)	$	163,673
Three months ended March 31, 2011
Net revenue	$	28,191	$	2,341	$	2,712		$	(2,214	)	$	31,030
Cost of services	25,324		1,985		80			(2,214		)	25,175
General and administrative	—		—		2,924			—			2,924
Facility rent expense	1,903		—		—			—			1,903
Depreciation and amortization	459		152		36			—			647
Operating income/(loss)	$	505	$	204	$	(328	)	$	—		$	381
Total assets, December 31, 2011	$	110,532	$	22,328	$	35,792		$	(9,548	)	$	159,104