Gentiva® Health Services Provides 2013 Outlook

                Gentiva® Health Services Provides 2013 Outlook

PR Newswire

ATLANTA, March 20, 2013

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:

  oNet 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.
  oAdjusted 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.

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. GTIV-G

Forward-Looking Statements

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; demographic changes; changes in, or failure to comply with,
existing governmental regulations; the impact on our Company of healthcare
reform legislation and its implementation through governmental regulations;
legislative proposals for healthcare reform; 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;
compliance with any corporate integrity agreement affecting the Company'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; ability to access capital markets;
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, terrorist acts or cyber attacks; availability, effectiveness,
stability and security of the Company's information technology systems;
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, 2012.

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.

Website: http://www.gentiva.com
 
Press spacebar to pause and continue. Press esc to stop.