MELVILLE, N.Y., May 1 /PRNewswire-FirstCall/ -- Gentiva Health Services, Inc. (Nasdaq: GTIV), the nation's leading provider of comprehensive home health services, today reported the following financial results for the first quarter ended March 30, 2008:
"Gentiva's first quarter was an important transitional period as we adapted to new Medicare Prospective Payment System (PPS) rules, integrated our recent Mississippi acquisition and implemented contract renewals within CareCentrix," said Gentiva Chairman and CEO Ron Malone. "While we were pleased with our revenue growth, some of the quarter's events had a short-term, moderating effect on profitability. However, we are able to reaffirm our financial outlook for the full year, based on our review of current business trends, our progress in adapting to the changed Medicare environment, and our commercial business opportunities. We expect 2008 to be another good year for Gentiva."
The Company noted the following first quarter performance highlights in its Home Health segment:
Gentiva reported the following results in its CareCentrix and Other Related Services segments:
During the first quarter of 2008, Gentiva used $43 million of cash and incurred an additional $12 million in debt to fund the Home Health Care Affiliates acquisition. Despite the resulting increase in long-term debt to $322 million at March 30, 2008, Gentiva's leverage ratio remains below 3.0 and this has allowed the Company to maintain lower interest margins on its revolving credit and term loan borrowings as compared to the prior year.
Gentiva also reaffirmed its 2008 financial outlook of net revenues in a range of $1.28 billion to $1.32 billion and diluted earnings per share in a range between $1.32 and $1.40.
Non-GAAP Financial Measures
The information provided in this press release includes certain non-GAAP financial measures as defined under Securities and Exchange Commission (SEC) rules. In accordance with SEC rules, the Company has provided, in the supplemental information and the footnotes to the tables, a reconciliation of those measures to the most directly comparable GAAP measures.
Conference Call and Web Cast Details
The Company will comment further on its first quarter results during its conference call and live web cast to be held Thursday, May 1, 2008, at 10:00 a.m. Eastern Time. To participate in the call from the United States, Canada or an international location, dial (973) 935-2408 and reference call #42736083. The web cast is an audio-only, one-way event. Web cast listeners who wish to ask questions must participate in the conference call. Log onto http://investors.gentiva.com/events.cfm to hear the web cast. This press release is accessible at http://investors.gentiva.com/releases.cfm and a transcript of the conference call is expected to be available on the site within 36 hours after the call.
About Gentiva Health Services, Inc.
Gentiva Health Services, Inc. is the nation's leading provider of comprehensive home health services. The Company serves patients across the United States, through its direct service delivery units or through CareCentrix(R), which manages home health services for major managed care organizations. Gentiva is a single source for skilled nursing; physical, occupational, speech and neurorehabilitation services; hospice services; social work; nutrition; disease management education; help with daily living activities; respiratory therapy and home medical equipment; infusion therapy services; and other therapies and services. Gentiva's revenues are generated from federal and state government programs, commercial insurance and individual consumers. For more information, visit Gentiva's web site, http://www.gentiva.com, and its investor relations section at http://investors.gentiva.com. GTIV-E
Forward-Looking Statement
Certain statements contained in this news release, including, without limitation, statements containing the words "believes," "anticipates," "intends," "expects," "assumes," "trends" and similar expressions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon the Company's current plans, expectations and projections about future events. However, such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors include, among others, the following: economic and business conditions; demographic changes; changes in, or failure to comply with, existing governmental regulations; legislative proposals for healthcare reform; changes in Medicare and Medicaid reimbursement levels, including changes to the Medicare home health Prospective Payment System effective January 1, 2008; effects of competition in the markets in which the Company operates; liability and other claims asserted against the Company; ability to attract and retain qualified personnel; availability and terms of capital; loss of significant contracts or reduction in revenues associated with major payer sources; ability of customers to pay for services; business disruption due to natural disasters or terrorist acts; ability to successfully integrate the operations of acquisitions the Company may make and achieve expected synergies and operational efficiencies within expected time-frames; effect on liquidity of the Company's debt service requirements; a material shift in utilization within capitated agreements; and changes in estimates and judgments associated with critical accounting policies and estimates. For a detailed discussion of certain of these and other factors that could cause actual results to differ from those contained in this news release, please refer to the Company's various filings with the Securities and Exchange Commission (SEC), including the "Risk Factors" section contained in the Company's annual report on Form 10-K for the year ended December 30, 2007.
SOURCE Gentiva Health Services, Inc.
