Gentiva Health Services Inc. has a market cap of $693.5 million; its shares were traded at around $20.6 with a P/E ratio of 8.1 and P/S ratio of 0.6. Gentiva Health Services Inc. had an annual average earning growth of 17.5% over the past 5 years.GTIV is in the portfolios of Chuck Royce of Royce& Associates, Kenneth Fisher of Fisher Asset Management, LLC, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:In connection with the Odyssey acquisition, the Company also entered into a financing commitment letter on May 23, 2010 (Commitment Letter) with Bank of America, N.A., Banc of America Bridge LLC, Banc of America Securities LLC, Barclays Bank PLC, Barclays Capital, the investment banking division of Barclays Bank PLC, General Electric Capital Corporation, GE Capital Markets, Inc., SunTrust Bank and SunTrust Robinson Humphrey, Inc. (collectively, the Commitment Parties), pursuant to which the Commitment Parties have agreed, subject to the terms and conditions contained in the Commitment Letter, to provide and/or arrange for (a) $925.0 million in senior secured credit facilities for the Company, comprising term loan facilities aggregating $800.0 million and a revolving credit facility of $125.0 million; and (b) $305.0 million in gross proceeds from the issuance and sale by the Company of senior unsecured notes or, if and to the extent that less than $305 million in aggregate principal amount of such notes are issued and sold on or prior to the consummation of the Merger, $305.0 million of senior unsecured loans under a bridge facility.
Effective February 1, 2010, the Company completed the sale of its HME and IV businesses to a subsidiary of Lincare Holdings, Inc., pursuant to an asset purchase agreement, for total consideration of approximately $16.4 million, consisting of (i) cash proceeds of approximately $8.5 million, (ii) approximately $2.5 million associated with operating and capital lease buyout obligations, (iii) an escrow fund of $5.0 million, which was recorded at estimated fair value of $3.2 million, to be received by the Company based on achieving a cumulative cash collections target for claims for services provided for a
period of one year from the date of closing and (iv) an escrow fund of approximately $0.4 million for reimbursement of certain post closing liabilities. During the first six months of 2010, the Company recorded a $0.1 million pre-tax gain, net of transaction costs in discontinued operations, net of tax, in the Companys consolidated statement of income.
During the first six months of 2009, the Company sold assets associated 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. 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 gain on sale of assets, net in the Companys consolidated statement of income and consolidated statement of cash flows for the six months ended June 28, 2009.
Incremental net revenues related to businesses acquired in 2009 and 2010 approximated $6.5 million and $10.7 million for the second quarter and first six months of 2010, respectively, as compared to the respective periods of 2009. Net revenues generated from assets that were sold in 2009 and 2010 were $0.1 million for the first six months of 2010 as compared to $1.0 million and $6.5 million for the second quarter and first six months of 2009.
Home Health segment revenues are derived from all three payer groups: Medicare, Medicaid and Local Government and Commercial Insurance and Other. Second quarter 2010 net revenues were $276.2 million, up $9.6 million, or 3.6 percent, from $266.6 million in the prior year period. For the first six months of 2010, net revenues were $553.7 million, up $28.4 million or 5.4 percent, from $525.3 million in the prior year period.
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