Gentiva Health Services, Inc. (Nasdaq: GTIV), a leading provider of comprehensive home health services, today reported the following 2009 third quarter results:
- Net revenues of $295.6 million for the quarter ended September 27, 2009 compared to $345.2 million, which included net revenues of $75.5 million from its CareCentrix business unit, for the quarter ended September 28, 2008. Excluding prior year's third quarter net revenues from CareCentrix, Gentiva's net revenues grew over $25 million, or 9% in the 2009 third quarter. The Company sold a majority ownership interest in CareCentrix to Water Street Healthcare Partners on September 25, 2008.
- Net income of $15.4 million, or $0.52 per diluted share compared to net income of $120.9 million or $4.07 per diluted share in the 2008 third quarter. Third quarter 2008 results included a non-recurring gain of $107.9 million or $3.67 per diluted share relating to the sale of a majority ownership interest in CareCentrix.
- Adjusted net income for the 2009 third quarter was $15.9 million, up 27% compared with the prior year period. On a diluted earnings per share basis, adjusted net income in the 2009 third quarter was $0.54 per diluted share compared with $0.42 per diluted share in the corresponding period of 2008. Adjusted net income for both third quarter periods excludes special charges of $0.02 per diluted share relating to restructuring and merger and acquisition activities. In addition, adjusted 2008 third quarter results exclude a non-recurring gain relating to the sale of a majority ownership interest in CareCentrix.
- Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 8% to $31.0 million in the third quarter of 2009. EBITDA as a percentage of net revenues improved to 10.5% in the third quarter of 2009 versus 8.3% in the prior-year period. EBITDA included restructuring and integration costs of $0.9 million in the third quarter of 2009 as compared to $1.4 million for the prior year period.
"Gentiva continues to execute well on its business strategy and we are well on track to achieve our full year 2009 financial outlook, with expectations toward the higher end of the earnings range," said Gentiva CEO Tony Strange. "Growth trends in both our Home Health and Hospice business units remain solid as we intensify our focus on serving the needs of the nation's growing high-acuity senior population. We are delivering on the key initiatives that will grow our company, including increasing the penetration of our specialty care programs, recruiting and retaining the best caregivers in the business, and operating efficiently, with a strong balance sheet."
Gentiva reported these segment highlights for the quarter:
- Home Health revenue growth of 9% to $261.4 million and operating contribution growth of 7% to $41.4 million.
- Revenues in the All Other segment - which includes hospice, respiratory therapy and home medical equipment, infusion therapy and consulting - increased 11% to $34.6 million, while operating contribution increased 70% to $5.0 million compared to the prior-year period.
Gentiva reported these highlights for the nine months ended September 27, 2009: