This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gentiva® Health Services Provides 2013 Outlook

Stocks in this article: GTIV

ATLANTA, March 20, 2013 /PRNewswire/ -- Gentiva Health Services, Inc. (NASDAQ: GTIV) announced today its 2013 financial outlook for net revenues and adjusted income from continuing operations attributable to Gentiva shareholders.  This outlook reflects the recently issued instructions from the Centers for Medicare & Medicaid Services (CMS) regarding the treatment of sequestration.

For the full-year 2013, the Company expects:

  • Net revenues to be in the range of $1.69 billion to $1.73 billion, including a $21.0 million year-over-year negative impact from branches closed or sold in the prior year.
  • Adjusted income from continuing operations attributable to Gentiva shareholders to be in the range of $0.90 to $1.10 on a diluted per share basis, based on an estimated 31.0 million shares outstanding.

This guidance includes the negative impact of sequestration and Medicare related rate changes, which is an approximate $30.0 million reduction in net revenues and adjusted earnings before interest, taxes, depreciation and amortization attributable to continuing operations (Adjusted EBITDA) and a $0.60 reduction in adjusted income from continuing operations on a diluted per share basis. This guidance assumes that sequestration will affect the reimbursement related to Medicare patients whose service dates end on or after April 1, 2013.

This guidance does not include the potential impact of acquisitions, credit agreement amendments or future reimbursement rate changes. Adjusted income from continuing operations attributable to Gentiva shareholders and Adjusted EBITDA exclude charges related to restructuring, legal settlements, acquisition and integration activities and other special items.

Free cash flow is expected to be in the range of $40.0 to $50.0 million for the full-year 2013.  No further principal payments are due this year under the Company's credit agreement as the Company prepaid the $25.0 million due in February 2013.  Based on this debt prepayment and typical cash flow seasonality, the Company expects its cash flow to be lower in the first quarter of 2013, but to increase as the year progresses. Free cash flow is calculated as net cash provided by operating activities less capital expenditures.

"Against another difficult reimbursement year, our focus in 2013 is squarely on continuing to drive strong mid-single digit home health growth and on returning our hospice division to consistent growth to offset the impact of these cuts," said Gentiva CEO Tony Strange. "We remain committed to delivering the message to policy makers and legislators that home health and hospice are cost effective, clinically appropriate and patient preferred, and consequently, we expect our industry to receive the reimbursement clarity it desperately needs as we get into the second half of the year."

Non-GAAP Financial Measures

The information provided in this press release includes certain non-GAAP financial measures as defined under Securities and Exchange Commission rules. A reconciliation of adjusted income from continuing operations attributable to Gentiva shareholders to net income, the most directly comparable GAAP measure, is not accessible on a forward-looking basis without unreasonable effort due to the inherent difficulties in predicting the costs of restructuring, legal settlements and merger and acquisition activities, the results of discontinued operations and the impact of any future acquisitions or divestitures, which can fluctuate significantly and may have a significant impact on net income.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs