Gentiva Health Services Inc.
) reported fourth-quarter 2012 operating earnings of 31 cents per
share, which lagged the Zacks Consensus Estimate of 35 cents as
well as the year-ago quarter level of 37 cents per share.
Operating income of $9.7 million also declined from $11.3 million
in the year-ago quarter.
Operating income for the reported quarter includes a loss of 1
cent due to the impact of Hurricane Sandy. Including all one-time
charges and results from discontinued operations, Gentiva posted
net income of $8.6 million or 28 cents per share, increasing from
$4.6 million or 15 cents per share in the fourth quarter of
Gentiva's net revenues declined 5% year over year to $425.0
million from $449.2 million in the year-ago quarter. Net revenue
also missed the Zacks Consensus Estimate of $433.0 million. The
year-over-year decline was largely due to a significant cut in
the home health Medicare rates along with the sale and closure of
The Home Health Episodic segment revenue declined 3% year over
year to $209.8 million. Additionally, the Hospice segment revenue
declined 6% year over year to $187.3 million.
Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) attributable to continuing operations
decreased 6.2% to $44.2 million from $47.1 million in the
Full-Year 2012 Highlights
For full year 2012, Gentiva reported operating income of $37.7
million or $1.23 per share, substantially lower than $49.2
million or $1.60 per share in 2011. Earnings per share also
lagged the Zacks Consensus Estimate of $1.29.
Earnings include credit agreement amendment fees of 3 cents
and a negative impact of 1 cent due to Hurricane Sandy. Net
income came in at $26.8 million or 87 cents per share against
prior-year net loss of $450.5 million or $14.85 per share.
Net revenue was $1.71 billion, down 5% year over year from
$1.80 billion in 2011. Net revenue missed the Zacks Consensus
Estimate of $1.72 billion.
Gentiva exited 2012 with cash and cash equivalents of
approximately $207.1 million, up from $164.9 million as of Dec
31, 2011. Long-term debt was $935.2 million, down from $973.2
million at 2011 end.
During the reported quarter, net cash from operating
activities amounted to $51.3 million versus cash outflow of $9.2
million in the prior-year period. Free cash flow also improved
considerably to $48.8 million from ($13.9) million in the
fourth-quarter of 2011.
As of Dec 31, 2012, Gentiva had total assets of $1.51 billion
and shareholders' equity of $234.7 million, as compared with
$1.53 billion and $202.5 million, respectively, as of Dec 31,
Gentiva carries a Zacks Rank #2 (Buy). Another healthcare
UnitedHealth Group Inc.
) reported fourth-quarter 2012 earnings of $1.20 per share, in
line with the Zacks Consensus Estimate. Earnings, however,
increased 2.6% on a year-over-year basis.
Other healthcare companies such as
LHC Group, Inc.
), carrying a Zacks Rank #2 (Buy), are expected to release their
fourth-quarter 2012 earnings results shortly.
GENTIVA HEALTH (GTIV): Free Stock Analysis
LHC GROUP LLC (LHCG): Free Stock Analysis
RADNET INC (RDNT): Free Stock Analysis Report
UNITEDHEALTH GP (UNH): Free Stock Analysis
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