Skip to main content

Market Overview

Gentiva's 4Q Revenues Up - Analyst Blog

Share:

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.
Read the full analyst report on "GTIV"
Zacks Investment Research

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

 

Related Articles

View Comments and Join the Discussion!