Gentiva Health Services Inc. (GTIV) filed Quarterly Report for the period ended 2009-09-27.
Gentiva Health Services Inc. operates its health services business in the United States and provides specialty pharmaceutical services (including infusion therapy and distribution services) and home health care services. Gentiva Health Services Inc. has a market cap of $710.1 million; its shares were traded at around $24.39 with a P/E ratio of 12.2 and P/S ratio of 0.6. Gentiva Health Services Inc. had an annual average earning growth of 20.6% over the past 5 years.
Highlight of Business Operations:
During the first quarter of 2009, the Company sold assets associated primarily with certain branch offices that specialized primarily in pediatric home health care services for total consideration of $6.5 million. The sales related to seven offices in five cities and included the adult home care services in the affected offices. Annual revenues generated from the assets that were sold approximated $24 million for the twelve months prior to the sales’ effective dates. The Company received $5.9 million in cash at the close of the sale and $0.6 million as the final payment in September 2009. The sales, after deducting related costs, resulted in a net gain before income taxes of $5.7 million. This gain is included in the gain on sale of assets, net in the Company’s consolidated statement of income and consolidated statement of cash flows for the nine months ended September 27, 2009.
The Company’s consolidated statements of income for the third quarter and nine months ended September 28, 2008 presented herein include the results of CareCentrix operations, including net revenues of $75.6 million and $232.7 million, respectively. The Company’s consolidated statements of income for the third quarter and nine months ended September 27, 2009 presented herein include the Company’s equity in the net earnings of CareCentrix Holdings Inc., a holding company which owns CareCentrix.
The Company has closed several acquisitions since early 2008. In comparing results of operations between the 2008 and 2009 reporting periods, incremental net revenues relating to acquired businesses approximated $2.1 million and $16.7 million for the third quarter and first nine months of 2009, respectively.
Net revenues decreased by $128.5 million or 12.7 percent for the first nine months of 2009 as compared to the first nine months of 2009. Excluding prior year’s first nine months revenues from the Company’s CareCentrix business unit and the related adjustment to intersegment revenues, net revenues increased approximately $102.6 million or 13.1 percent in the first nine months of 2009.
Home Health segment revenues are derived from all three payer groups: Medicare, Medicaid and Local Government and Commercial Insurance and Other. Third quarter 2009 net revenues were $261.4 million, up $22.1 million, or 9 percent, from $239.3 million in the prior year period. For the first nine months of fiscal 2009, net revenues were $784.8 million, a $91.6 million or 13 percent increase compared to $693.2 million for the corresponding period of fiscal 2008.
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