SEGMENTS

6 Months Ended

Jun. 30, 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 the 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 excludes interest expense and other non-operating income and expenses. The table below sets forth our segment information for the three and six months ended June 30, 2012 and 2011.

						Corporate
(Amounts in 000’s)	SNF			ALF		& Other			Eliminations			Total
Three months ended June 30, 2012 Restated (Note 2)
Net revenues	$	47,853		$	3,413	$	3,133		$	(2,608	)	$	51,791
Cost of services	40,259			2,606		59			(2,608		)	40,316
General and administrative	(36		)	—		4,381			—			4,345
Facility rent expense	2,000			—		50			—			2,050
Depreciation and amortization	1,202			219		173			—			1,594
Operating income/(loss)	$	4,428		$	588	$	(1,530	)	$	—		$	3,486
Three months ended June 30, 2011
Net revenues	$	31,462		$	2,410	$	2,585		$	(2,101	)	$	34,356
Cost of services	27,283			1,869		53			(2,101		)	27,104
General and administrative	—			—		3,167			—			3,167
Facility rent expense	1,902			—		45			—			1,947
Depreciation and amortization	504			161		40			—			705
Salary retirement and continuation costs	—			—		622			—			622
Operating income/(loss)	$	1,773		$	380	$	(1,342	)	$	—		$	811
Six months ended June 30, 2012 Restated (Note 2)
Net revenues	$	90,897		$	6,676	$	5,982		$	(4,933	)	$	98,622
Cost of services	79,040			4,975		41			(4,933		)	79,123
General and administrative	—			—		8,338			—			8,338
Facility rent expense	4,026			—		89			—			4,115
Depreciation and amortization	2,532			429		343			—			3,304
Operating income/(loss)	$	5,299		$	1,272	$	(2,829	)	$	—		$	3,742
Total assets, June 30, 2012	$	139,963		$	29,403	$	29,749		$	—		$	199,115
Six months ended June 30, 2011
Net revenues	$	59,653		$	4,751	$	5,297		$	(4,315	)	$	65,386
Cost of services	52,607			3,854		133			(4,315		)	52,279
General and administrative	—			—		6,091			—			6,091
Facility rent expense	3,805			—		45			—			3,850
Depreciation and amortization	963			313		76			—			1,352
Salary retirement and continuation costs	—			—		622			—			622
Operating income/(loss)	$	2,278		$	584	$	(1,670	)	$	—		$	1,192
Total assets, December 31, 2011	$	110,532		$	22,328	$	35,792		$	(9,548	)	$	159,104