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Exhibit 99.1
 
 
  Consolidated Results of Operations for the First Quarter of 2008
   
    
    $23.1 million, or 16.0 percentage points of the increase in revenues resulted from
healthcare facilities acquired or developed after December 31, 2006;
    
    $9.5 million, or 6.6 percentage points, resulted from healthcare facilities owned
throughout the first quarter of 2007 and 2008; and
    
    $3.4 million, or 2.3 percentage points, resulted from the companys ancillary services
segment, which was primarily due to two hospice businesses which were acquired as part of
the New Mexico acquisition in September 2007.




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Outlook
   Conference Call
   About Skilled Healthcare Group
 www.skilledhealthcaregroup.com
 Forward-Looking Statements
 This release includes forward-looking statements. You can identify these statements by the fact
that they do not relate strictly to historical or current facts. These statements contain words
such as may, will, project, might, expect, believe, anticipate, intend, could,
would, estimate, continue or pursue, or the negative or other variations thereof or
comparable terminology. In particular, they include the statements outlook for Skilled Healthcares
financial performance and future actions of Skilled




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Healthcare. These forward-looking statements are based on current expectations and projections
about future events.
 Investors are cautioned that forward-looking statements are not guarantees of future performance or
results and involve risks and uncertainties that cannot be predicted or quantified and,
consequently, the actual performance of Skilled Healthcare may differ materially from that
expressed or implied by such forward-looking statements. Such risks and uncertainties include, but
are not limited to, the factors described in Skilled Healthcares Annual Report on Form 10-K for
the year ended December 31, 2007 filed with the Securities and Exchange Commission (including the
sections entitled Risk Factors and Managements Discussion and Analysis of Financial Condition
and Results of Operations contained therein).
 Any forward-looking statements are made only as of the date of this release. Skilled Healthcare
disclaims any obligation to update the forward-looking statements. You are cautioned not to place
undue reliance on these forward-looking statements.




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Skilled
Healthcare Group, Inc.
 Condensed Consolidated Statements of Operations
 (In thousands, except per share data)
 Three Months EndedMarch 31,2008
    
    
    2007(Unaudited)Revenue
    
    $
    180,727
    
    
    $
    144,655Expenses:Cost of services (exclusive of rent cost of
revenue and depreciation and amortization shown
below)
    
    
    142,144
    
    
    
    113,949Rent cost of revenue
    
    
    4,465
    
    
    
    2,694General and administrative
    
    
    6,222
    
    
    
    4,761Depreciation and amortization
    
    
    5,160
    
    
    
    3,961157,991
    
    
    
    125,365Other income (expenses):Interest expense
    
    
    (9,653
    )
    
    
    (12,092
    )Interest income
    
    
    214
    
    
    
    327Other
    
    
    222
    
    
    
    Equity in earnings of joint venture
    
    
    391
    
    
    
    540Change in fair value of interest rate hedge
    
    
    
    
    
    
    (33
    )Total other income (expenses), net
    
    
    (8,826
    )
    
    
    (11,258
    )Income before provision for income taxes
    
    
    13,910
    
    
    
    8,032Provision for income taxes
    
    
    5,466
    
    
    
    3,378Net income
    
    
    8,444
    
    
    
    4,654Accretion on preferred stock
    
    
    
    
    
    
    (4,772
    )Net income (loss) attributable to common stockholders
    
    $
    8,444
    
    
    $
    (118
    )Net income (loss) per share data:Net income (loss) per common share, basic
    
    $
    0.23
    
    
    $
    (0.01
    )Net income (loss) per common share, diluted
    
    $
    0.23
    
    
    $
    (0.01
    )Weighted average common shares outstanding, basic
    
    
    36,551
    
    
    
    11,959Weighted average common shares outstanding, diluted
    
    
    36,881
    
    
    
    11,959




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Skilled
Healthcare Group, Inc.
 Consolidated Balance Sheet and Cash Flow Data
 (In thousands)
(Unaudited)
 March 31,
    
    
    December 31,2008
    
    
    2007Balance Sheet Data:ASSETSCash and cash equivalents
    
    $
    3,992
    
    
    $
    5,012Other current assets
    
    
    155,758
    
    
    
    145,292Property and equipment, net
    
    
    299,322
    
    
    
    294,281Other assets
    
    
    527,401
    
    
    
    525,522Total assets
    
    $
    986,473
    
    
    $
    970,107LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities less current portion of long-term debt
    
    $
    83,480
    
    
    $
    88,847Current portion of long-term debt and capital leases
    
    
    4,173
    
    
    
    6,335Other long-term liabilities
    
    
    55,600
    
    
    
    48,355Long-term debt and capital leases, less current portion
    
    
    461,406
    
    
    
    452,101Stockholders equity
    
    
    381,814
    
    
    
    374,469Total liabilities and stockholders equity
    
    $
    986,473
    
    
    $
    970,107
 Three Months EndedMarch 31,2008
    
    2007Cash Flow Data:Net cash provided by operating activities
    
    $
    2,036
    
    
    $
    2,653Net cash used in investing activities
    
    $
    (8,789
    )
    
    $
    (50,101
    )Net cash provided by financing activities
    
    $
    5,733
    
    
    $
    45,005




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Skilled Healthcare Group, Inc.
Consolidated Key Performance Indicators
 (Unaudited)
  Three Months Ended March 31,2008
    
    
    2007Occupancy statistics
(skilled nursing
facilities):Available beds in
service at end of
period
    
    
    8,960
    
    
    
    7,459Available patient days
    
    
    815,360
    
    
    
    668,208Actual patient days
    
    
    696,291
    
    
    
    574,957Occupancy percentage
    
    
    85.4
    %
    
    
    86.0
    %Skilled mix
    
    
    25.7
    %
    
    
    25.3
    %Percentage of Medicare
days in the upper nine
RUG categories(1)
    
    
    40.7
    %
    
    
    38.3
    %Average daily number of
patients
    
    
    7,652
    
    
    
    6,388EBITDA(2) (in thousands)
    
    $
    28,509
    
    
    $
    23,758Adjusted EBITDA (2) (in
thousands)
    
    $
    28,509
    
    
    $
    23,791Adjusted EBITDA margin
    
    
    15.8
    %
    
    
    16.4
    %Adjusted EBITDAR (2) (in
thousands)
    
    $
    32,974
    
    
    $
    26,485Adjusted EBITDAR margin
    
    
    18.3
    %
    
    
    18.3
    %Revenue per patient day
(skilled nursing
facilities)Medicare
    
    $
    505
    
    
    $
    481Managed care
    
    
    351
    
    
    
    351Medicaid
    
    
    136
    
    
    
    126Private and other
    
    
    155
    
    
    
    151Weighted average for all
    
    $
    222
    
    
    $
    212Revenue from:Medicare
    
    
    37.4
    %
    
    
    38.2
    %Managed care and
private pay
    
    
    31.9
    
    
    
    32.3Quality mix
    
    
    69.3
    
    
    
    70.5Medicaid
    
    
    30.7
    
    
    
    29.5Total
    
    
    100.0
    %
    
    
    100.0
    %




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Skilled Healthcare Group, Inc.
Consolidated Key Performance Indicators (continued)
 (Unaudited)
 As of March 31,2008
    
    2007Facilities:Skilled nursing
facilities (at end of
period):Owned
    
    
    50
    
    
    
    44Leased
    
    
    24
    
    
    
    17Total skilled
nursing facilities
    
    
    74
    
    
    
    61Total licensed beds
    
    
    9,183
    
    
    
    7,578Assisted living
facilities (at end of
period):Owned
    
    
    11
    
    
    
    11Leased
    
    
    2
    
    
    
    2Total assisted
living facilities
    
    
    13
    
    
    
    13Total licensed units
    
    
    955
    
    
    
    889Total facilities (at end
of period)
    
    
    87
    
    
    
    74Percentage owned
facilities (at end of
period)
    
    
    70.0
    %
    
    
    74.3
 
 (1)
    
    As of January 1, 2006, the Medicare resource utilization group, or
RUG, categories were expanded from 44 to 53. This measures the
percentage of our Medicare days that were generated by patients for
whom we are reimbursed under one of the nine highest paying RUG
categories.(2)
    
    EBITDA, Adjusted EBITDA and Adjusted EBITDAR are supplemental measures
of our performance that are not required by, or presented in
accordance with, GAAP. We define EBITDA as net income before
depreciation, amortization and interest expense (net of interest
income) and the provision for (benefit from) income taxes. Adjusted
EBITDA excludes certain special charges that are included in EBITDA.
We define EBITDAR as net income before depreciation, amortization and
interest expense (net of interest income), the provision for (benefit
from) income taxes and facility rent expense.




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Skilled Healthcare Group, Inc.
Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Adjusted EBITDAR
 (amounts in thousands)
 Three Months EndedMarch 31,2008
    
    
    2007(Unaudited)Net income
    
    $
    8,444
    
    
    $
    4,654Interest expense, net of interest income
    
    
    9,439
    
    
    
    11,765Related provision for income taxes
    
    
    5,466
    
    
    
    3,378Depreciation and amortization expense
    
    
    5,160
    
    
    
    3,961EBITDA
    
    
    28,509
    
    
    
    23,758Change in fair value of interest rate hedge
    
    
    
    
    
    
    33Adjusted EBITDA
    
    
    28,509
    
    
    
    23,791Rent cost of revenue
    
    
    4,465
    
    
    
    2,694Adjusted EBITDAR
    
    $
    32,974
    
    
    $
    26,485




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Skilled Healthcare Group, Inc.
Reconciliation of Forecasted Net Income to Forecasted EBITDA
Year Ended December 31, 2008
 (in millions)
 (Unaudited)
 Reconciliation of Forecasted Net Income to EBITDA:
 OutlookLow
    
    
    HighGAAP net income guidance
    
    $
    35.0
    
    
    $
    37.1Interest expense, net of interest income and other
    
    
    36.5
    
    
    
    36.5Provision for income taxes
    
    
    23.5
    
    
    
    25.3Depreciation and amortization expense
    
    
    20.0
    
    
    
    20.0EBITDA guidance
    
    
    115.0
    
    
    
    119.0Rent cost of revenue
    
    
    19.0
    
    
    
    19.0EBITDAR guidance
    
    $
    134.0
    
    
    $
    138.0