Gentiva Health Services Inc.
) reported second-quarter 2012 operating net earnings of 35 cents
per share, ahead of the Zacks Consensus Estimate of 28 cents but
lower than the year-ago quarter level of 47 cents per share.
Operating net income of $10.7 million also compares unfavorably
with $14.0 million in the year-ago quarter.
Including all one-time charges and income from gains on sales of
businesses of $3.25 million or 11 cents per share and expenses
related to restructuring, legal settlement and acquisition and
integration costs of $0.03 million, Gentiva posted net income of
$13.9 million or 46 cents per share, increasing substantially from
the prior-year income of $4.5 million or 15 cents per share.
Gentiva's net revenues declined 4.7% year over year to $427.7
million, and also missed the Zacks Consensus Estimate of $435.0
million. The year-over-year decline was largely due to the sale and
closure of some branches coupled with a 7.3% decline in the Home
Health Episodic segment revenue to $235.7 million, arising from
reduced Medicare reimbursement rates. This was followed by a
marginal year-over-year decline of 1.2% related to the Hospice
segment revenue of $192.0 million.
Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) attributable to continuing operations
decreased 6.6% to $48.3 million from $51.7 million in the
Gentiva exited the quarter with cash and cash equivalents of
approximately $155.3 million down from $164.9 million as of
December 31, 2011. Long-term debt was $922.7 million, down from
$973.2 million at 2011 end.
During the reported quarter, net cash from operating activities
amounted to $83.8 million versus $17.2 million in the prior-year
period. Free cash flow also improved considerably to $80.7 million
from $11.8 million in the second-quarter of 2011, primarily due to
fall in company's day sales outstanding and better operating
As of June 30, 2012, Gentiva had total assets of $1.48 billion
and shareholders' equity of $220.3 million, as compared with $1.53
billion and $202.5 million, respectively, as of December 31,
Gentiva received $5.9 million as proceeds from the sale of
branches in Louisiana -- eight home health branches and four
hospice branches. This was with respect to an asset purchase
agreement worth $6.4 million. About $0.5 million remains
Outlook for Fiscal 2012
Gentiva affirmed its net revenue guidance at $1.70-1.76 billion
and adjusted income from continuing operations guidance at
$1.00-1.20 per share.
Gentiva carries a Zacks #3 Rank, which translates into a
short-term Hold rating.
) also shares the same Zacks #3 Rank with Gentiva, and is expected
to release its second-quarter 2012 earnings before the market opens
on August 7, 2012. According to the Zacks Consensus Estimate,
Amedisys is expected to report operating earnings of 25 cents a
share, falling 62.7% from its prior-year quarter earnings.
AMEDISYS INC (AMED): Free Stock Analysis Report
GENTIVA HEALTH (GTIV): Free Stock Analysis
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