Gentiva Health Services, Inc. (Nasdaq: GTIV), a leading provider of home health and hospice services, today reported preliminary operating results for the second quarter ended July 4, 2010. A conference call to discuss these preliminary results will be held on July 21, 2010 at 9:00 a.m., Eastern Time. The Company will issue its final 2010 second quarter and six months financial results on July 29, 2010.
Preliminary second quarter 2010 financial highlights include:
- Total net revenues of approximately $297 million, an increase of 4% compared to $284.8 million for the quarter ended June 28, 2009. Net revenues included home health episodic revenues of $229 million and hospice revenues of $21 million, increases of approximately 7% and 14%, respectively, as compared to the 2009 second quarter. Home health episodic revenues for the 2010 period reflected slower than anticipated growth in episodic volumes.
- Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) of approximately $43.2 million, an increase of about 23% compared to $35.0 million for the second quarter of 2009. Adjusted EBITDA as a percentage of total net revenues was approximately 14.5% for the 2010 second quarter, compared to 12.3% in the year-ago period. Adjusted EBITDA included stock-based compensation expense in the 2010 and 2009 second quarters of $1.6 million and $1.7 million, respectively, and excluded net charges relating to restructuring, legal settlements and merger and acquisition activities.
- Adjusted income from continuing operations of approximately $22.6 million compared to $17.9 million for the second quarter of 2009, an increase of approximately 26%. On a diluted per share basis, adjusted income from continuing operations approximated $0.74 for the 2010 second quarter versus $0.61 for the 2009 second quarter. Adjusted income from continuing operations excluded the net charges described above as well as the impact of any losses on sales of assets.
- Cash and cash equivalents approximated $191 million at July 4, 2010 compared to $168.9 million at April 4, 2010 and $152.4 million at January 3, 2010.
Full-Year 2010 Outlook
Gentiva reaffirmed its 2010 full-year outlook for adjusted income from continuing operations of $2.67 to $2.75 on a diluted share basis. However, in light of recent softness in home health episodic volumes and the anticipated seasonality in third quarter volumes as experienced by the Company historically, Gentiva has reduced its full-year revenue guidance to a range of $1.20 billion to $1.23 billion from its prior guidance of between $1.23 billion to $1.26 billion. The outlook for adjusted income from continuing operations excludes the costs of restructuring, legal settlements and merger and acquisition activities, the results of discontinued operations and the impact of pending and future acquisitions.
Gentiva expects to further revise its full year 2010 outlook after the consummation of the Odyssey HealthCare, Inc. acquisition, which was announced on May 24, 2010 and is expected to close during the 2010 third quarter.