Oct. 29, 2009 (PR Newswire) -- ATLANTA, Oct. 29 /PRNewswire-FirstCall/ -- Gentiva Health Services, Inc. (Nasdaq: GTIV), a leading provider of comprehensive home health services, today reported the following 2009 third quarter results:

    --  Net revenues of $295.6 million for the quarter ended September 27, 2009
compared to $345.2 million, which included net revenues of $75.5 million
from its CareCentrix business unit, for the quarter ended September 28,
2008. Excluding prior year's third quarter net revenues from
CareCentrix, Gentiva's net revenues grew over $25 million, or 9% in the
2009 third quarter. The Company sold a majority ownership interest in
CareCentrix to Water Street Healthcare Partners on September 25, 2008.

    --  Net income of $15.4 million, or $0.52 per diluted share compared to net
income of $120.9 million or $4.07 per diluted share in the 2008 third
quarter. Third quarter 2008 results included a non-recurring gain of
$107.9 million or $3.67 per diluted share relating to the sale of a
majority ownership interest in CareCentrix.

    --  Adjusted net income for the 2009 third quarter was $15.9 million, up 27%
compared with the prior year period. On a diluted earnings per share
basis, adjusted net income in the 2009 third quarter was $0.54 per
diluted share compared with $0.42 per diluted share in the corresponding
period of 2008.  Adjusted net income for both third quarter periods
excludes special charges of $0.02 per diluted share relating to
restructuring and merger and acquisition activities. In addition,
adjusted 2008 third quarter results exclude a non-recurring gain
relating to the sale of a majority ownership interest in CareCentrix.

    --  Earnings before interest, taxes, depreciation and amortization (EBITDA)
increased 8% to $31.0 million in the third quarter of 2009. EBITDA as a
percentage of net revenues improved to 10.5% in the third quarter of
2009 versus 8.3% in the prior-year period. EBITDA included restructuring
and integration costs of $0.9 million in the third quarter of 2009 as
compared to $1.4 million for the prior year period.

"Gentiva continues to execute well on its business strategy and we are well on track to achieve our full year 2009 financial outlook, with expectations toward the higher end of the earnings range," said Gentiva CEO Tony Strange. "Growth trends in both our Home Health and Hospice business units remain solid as we intensify our focus on serving the needs of the nation's growing high-acuity senior population. We are delivering on the key initiatives that will grow our company, including increasing the penetration of our specialty care programs, recruiting and retaining the best caregivers in the business, and operating efficiently, with a strong balance sheet."

Gentiva reported these segment highlights for the quarter:

    --  Home Health revenue growth of 9% to $261.4 million and operating
contribution growth of 7% to $41.4 million.

    --  Revenues in the All Other segment - which includes hospice, respiratory
therapy and home medical equipment, infusion therapy and consulting -
increased 11% to $34.6 million, while operating contribution increased
70% to $5.0 million compared to the prior-year period.

Gentiva reported these highlights for the nine months ended September 27, 2009:

    --  Net revenues of $882.6 million versus $1.01 billion in the prior year
period.  Net revenues in the 2008 period included approximately $232.7
million relating to CareCentrix.  Excluding the revenue contribution
from CareCentrix, Gentiva's net revenues grew about $103 million, or
13%, in the nine-month period ended September 27, 2009.

    --  Net income of $50.5 million, or $1.70 per diluted share which included
(i) a non-recurring pre-tax net gain of $5.7 million or $0.19 per
diluted share resulting from the 2009 first quarter sale of certain
branch offices that specialized primarily in pediatric home health care
services and (ii) special pre-tax charges of $2.4 million or $0.05 per
diluted share relating to restructuring and merger and acquisition
costs. These results compared to net income of $140.6 million or $4.80
per diluted share in the 2008 period which included a net gain of $3.72
per diluted share from the sale of  CareCentrix and special pre-tax
charges of $2.1 million or $0.04 per diluted share relating to
restructuring and merger and acquisition costs.

    --  Adjusted net income was $46.3 million, up 41% compared with the prior
year period. On a diluted earnings per share basis, adjusted net income
in the 2009 period was $1.56 compared with $1.12 in the corresponding
period of 2008. Adjusted net income excludes non-recurring transaction
gains and special charges relating to restructuring and merger and
acquisition activities in both periods.

    --  EBITDA increased 13% to $94.7 million versus $84.1 million in the
prior-year period.

    --  Operating cash flow was $76.5 million in the 2009 period compared to
$51.1 million in the comparable 2008 period.

At September 27, 2009, the Company reported cash and cash equivalents of $120.3 million and long-term debt of $237.0 million.

Full-Year 2009 Outlook

Gentiva announced that it is reaffirming its revenue and earnings outlook for fiscal 2009. Gentiva anticipates full-year 2009 net revenues will range between $1.19 billion to $1.21 billion. On a diluted earnings per share basis, adjusted net income is expected to be in a range between $2.04 and $2.10 per diluted share. Gentiva's 2009 outlook represents an increase in net revenues of 12% to 14% and an increase in adjusted net income per diluted share of 45% to 50% when compared with 2008 pro forma financial results, which reflect the Company's performance as if the CareCentrix divestiture had occurred at the beginning of fiscal 2008. The 2009 outlook excludes special charges relating to restructuring and merger and acquisition costs which are expected to range between $3 million and $4 million for the year and non-recurring charges and credits. The outlook includes the impact of recently announced acquisitions and also reflects 53 weeks of activity in fiscal 2009.

Non-GAAP Financial Measures

The information provided in this press release includes certain non-GAAP financial measures as defined under Securities and Exchange Commission (SEC) rules. In accordance with SEC rules, the Company has provided, in the supplemental information and the footnotes to the tables, a reconciliation of those measures to the most directly comparable GAAP measures.

Conference Call and Web Cast Details

The Company will comment further on its third quarter 2009 results during its conference call and live web cast to be held Thursday, October 29, 2009 at 10:00 a.m. Eastern Time. To participate in the call from the United States, Canada or an international location, dial (973) 935-2408 and reference call #35210278. The web cast is an audio-only, one-way event. Web cast listeners who wish to ask questions must participate in the conference call. Log onto http://investors.gentiva.com/events.cfm to hear the web cast. A replay of the call will be available on October 29, beginning at approximately 1 p.m. ET, and will remain available continuously through November 5. To listen to a replay of the call from the United States, Canada or international locations, dial (800) 642-1687 or (706) 645-9291 and enter the following PIN at the prompt: 35210278. Visit http://investors.gentiva.com/events.cfm to access the web cast archive. This press release is accessible at http://investors.gentiva.com/releases.cfm and a transcript of the conference call is expected to be available on the site within 48 hours after the call.

About Gentiva Health Services, Inc.

Gentiva Health Services, Inc. is a leading provider of comprehensive home health services, 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; respiratory therapy and home medical equipment; infusion therapy services; and other therapies and services. For more information, visit Gentiva's web site, http://www.gentiva.com, and its investor relations section at http://investors.gentiva.com. GTIV-E

(unaudited tables and notes follow)

Gentiva Health Services, Inc.