Gentiva Health Services Inc.
) reported third-quarter 2012 operating net earnings of 32 cents
per share, modestly beating the Zacks Consensus Estimate of 29
cents as well as year-ago quarter level of 27 cents per share.
Operating net income of $9.9 million also compares favorably with
$8.3 million in the year-ago quarter.
Including all one-time charges and results from discontinued
operations, Gentiva posted net loss of $0.5 million or 2 cents
per share, contracting substantially from the prior-year net loss
of $473.8 million or $15.62 per share.
Gentiva's net revenues declined 6% year over year to $424.4
million and also missed the Zacks Consensus Estimate of $428.0
million. The year-over-year decline was largely due to the sale
and closure of some branches coupled with a 6% decline in the
Home Health Episodic segment revenue to $206.4 million. This was
followed by a year-over-year decline of 3% related to the Hospice
segment revenue of $189.8 million.
Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) attributable to continuing operations
increased 11.1% to $46.1 million from $41.5 million in the
Gentiva exited the quarter with cash and cash equivalents of
approximately $156.0 million, down from $164.9 million as of
December 31, 2011. Long-term debt was $938.1 million, down from
$973.2 million at 2011 end.
During the reported quarter, net cash from operating
activities amounted to $25.5 million versus a cash outflow of
$5.5 million in the prior-year period. Free cash flow also
improved considerably to $23.2 million from a negative $11.4
million in the third-quarter of 2011.
As of September 30, 2012, Gentiva had total assets of $1.48
billion and shareholders' equity of $222.75 million, as compared
with $1.53 billion and $202.5 million, respectively, as of
December 31, 2011.
Outlook for 2012
Gentiva hiked its guidance for adjusted income from continuing
operations to $1.20-$1.30 per share from $1.00-$1.20 guided
earlier. Additionally, the guidance for net revenue was revised
to $1.71-$1.74 billion from $1.70-$1.76 billion. However, the
guidance does not include any impact of sequestration or
Hurricane Sandy on the fourth quarter earnings.
Gentiva carries a Zacks #3 Rank, which translates into a
short-term Hold rating. The company's close competitor
) also shares the Zacks #3 Rank, and is expected to release its
third-quarter 2012 earnings before the market opens on November
6, 2012. According to the Zacks Consensus Estimate, Amedisys is
expected to report operating earnings of 27 cents a share,
falling 25.6% from its prior-year quarter earnings.
AMEDISYS INC (AMED): Free Stock Analysis
GENTIVA HEALTH (GTIV): Free Stock Analysis
To read this article on Zacks.com click here.