

Gentiva Health Services Provides 2012 Earnings Per Share Outlook and Adopts Rule 10b5-1 Stock Repurchase Plan
Gentiva Health Services Provides 2012 Earnings Per Share Outlook and Adopts Rule 10b5-1... -- ATLANTA, March 12, 2012 /PRNewswire/ --
Gentiva Health Services Provides 2012 Earnings Per Share Outlook and Adopts Rule 10b5-1 Stock Repurchase Plan
ATLANTA, March 12, 2012 /PRNewswire/ -- Gentiva Health Services, Inc. (Nasdaq: [ GTIV ]) announced today its 2012 outlook for adjusted income from continuing operations attributable to Gentiva shareholders. This outlook includes the financial impact of its recently announced credit agreement amendment which provides the Company significant covenant flexibility through the remaining term of the facility.
For 2012, Gentiva expects full-year adjusted income from continuing operations attributable to Gentiva shareholders to be in the range of $1.00 to $1.20 on a diluted per share basis. The adjusted income from continuing operations outlook includes the impact of the higher interest expense associated with the recently announced amendment. Gentiva continues to expect full-year 2012 net revenues to be in the range of $1.70 billion to $1.76 billion and Adjusted EBITDA to be $170 million to $190 million.
Adjusted income from continuing operations attributable to Gentiva shareholders and Adjusted EBITDA exclude charges related to cost savings initiatives, restructuring, acquisition, integration activities, the cost of legal settlements and other special charges.
Additionally, the Company announced today that it entered into a stock repurchase plan under Rule 10b5-1 of the Securities and Exchange Commission (SEC) to repurchase its outstanding common stock under existing repurchase authorizations. The Company is permitted to buy back up to $5 million of common stock each fiscal year based on the terms in its credit agreement.
A plan under Rule 10b5-1 allows a company to repurchase its shares at times when it might otherwise be prevented from doing so because of self-imposed trading blackout periods and because it possesses material non-public information. A broker selected by the Company will have the authority under the terms and limitations specified in the plan to repurchase shares on the Company's behalf in accordance with the terms of the plan. Repurchases are subject to SEC regulations as well as certain price, market volume and timing constraints specified in the plan.
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.
Adjusted income from continuing operations attributable to Gentiva shareholders and Adjusted EBITDA exclude charges related to cost savings initiatives, restructuring, acquisition, integration activities, the cost of legal settlements and other special charges. Management uses Adjusted EBITDA to compare operating results with other companies in the healthcare industry. Adjusted EBITDA should not be considered in isolation or as a substitute for the comparable GAAP measure.
A reconciliation of Adjusted income from continuing operations attributable to Gentiva shareholders and Adjusted EBITDA to net income, the most directly comparable GAAP measure, are 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.
About Gentiva Health Services, Inc.
Gentiva Health Services, Inc. is the nation's largest provider of home health and hospice services based on revenue, delivering innovative, high quality care to patients across the United States. Gentiva is a single source for skilled nursing; physical, occupational, speech and neurorehabilitation services; hospice services; social work; nutrition; disease management education; help with daily living activities; and other therapies and services. In August 2010, Gentiva acquired Odyssey HealthCare, Inc., one of the largest providers of hospice care in the United States. GTIV-G
Forward-Looking Statement
Certain statements contained in this news release, including, without limitation, statements containing the words "believes," "anticipates," "intends," "expects," "assumes," "trends" and similar expressions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon the Company's current plans, expectations and projections about future events. However, such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors include, among others, the following: economic and business conditions, including the ability to access capital markets; demographic changes; changes in, or failure to comply with, existing governmental regulations; the impact on our Company of recently passed healthcare reform legislation and its subsequent implementation through governmental regulations; changes in Medicare, Medicaid and commercial payer reimbursement levels; the outcome of any inquiries into the Company's operations and business practices by governmental authorities; the Company's ability to effectively integrate Odyssey's operations; effects of competition in the markets in which the Company operates; liability and other claims asserted against the Company; ability to attract and retain qualified personnel; availability and terms of capital; loss of significant contracts or reduction in revenues associated with major payer sources; ability of customers to pay for services; business disruption due to natural disasters, pandemic outbreaks, or terrorist acts; ability to successfully integrate the operations of acquisitions the Company may make and achieve expected synergies and operational efficiencies within expected time-frames; ability to maintain compliance with its financial covenants under the Company's credit agreement; effect on liquidity of the Company's debt service requirements; and changes in estimates and judgments associated with critical accounting policies and estimates. For a detailed discussion of certain of these and other factors that could cause actual results to differ from those contained in this news release, please refer to the Company's various filings with the Securities and Exchange Commission, including the "Risk Factors" section contained in the Company's annual report on Form 10-K for the year ended December 31, 2010 and the Company's quarterly report on Form 10-Q for the quarter ended September 30, 2011.
Financial and Investor Contact:
Eric Slusser
770-951-6101
[ eric.slusser@gentiva.com ]
or John Mongelli
770-951-6496
[ john.mongelli@gentiva.com ]
Media Contact:
Scott Cianciulli
Brainerd Communicators
212-986-6667
[ cianciulli@braincomm.com ]
SOURCE Gentiva Health Services, Inc.
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