Gentiva's 4Q Revenues Up - Analyst Blog

Gentiva Health Services Inc. (GTIV) reported fourth-quarter (ended January 3, 2010) income from continuing operations (excluding non-recurring transaction profits and special charges related to restructuring and merger and acquisition activities) of 63 cents per share, as opposed to 41 cents in the year-ago period. The Zacks Consensus Estimate for the fourth quarter of 2009 was 54 cents.

Quarterly Results

Total net revenues for the quarter came in at $310 million, as against $267.3 million in the year-ago quarter, up 16%. Revenues from the Home Health segment increased 16% to $290.2 million in the reported quarter. Revenues in the Hospice segment came in at $19.8 million, which reflected an increase of approximately 16%.

Selling, general and administrative expenses in the reported quarter climbed to $131.2 million from $113.8 million in the year-ago quarter. The company reported a gross profit of $160.9 million in the fourth quarter of 2009 compared to $136.8 million in the year-ago quarter.

Yearly Results

Gentiva earned $2.19 per share in fiscal 2009 from continuing operations (excluding non-recurring transaction gains and special charges related to restructuring and merger and acquisition activities) as against $1.49 in fiscal 2008. The Zacks Consensus Estimate for fiscal 2009 was $2.10.

Total net revenues for the year came in at $1.15 billion, versus $1.24 billion in 2008, down 7.3%. Net revenues in 2008 included $232.7 million pertaining to the CareCentrix business unit.

On September 25, 2008, Gentiva sold a majority interest in CareCentrix to Water Street Healthcare Partners. Revenues from the Home Health segment increased 13.9% to $1.078 billion in fiscal 2009. Revenues in the Hospice segment in fiscal 2009 came in at $74.3 million, which reflected an increase of approximately 20%.

Gentiva exited 2009 with cash and cash equivalents of approximately $152.4 million and outstanding debt under its credit agreement of $237.0 million.

Outlook for Fiscal 2010

Gentiva expects net revenues between $1.23 billion and $1.26 billion in 2010. Furthermore, the company expects to earn (on an adjusted basis) between $2.57 and $2.67 per share. The guidance does not include results from the divested businesses and corresponding charges, any future acquisitions and special items. The Zacks Consensus Estimate for fiscal 2010 is $2.21.
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