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"Gentiva continued to build momentum in the third quarter, a period oftraditionally lower demand, and we benefited from expansion in Home Health andadditional business in CareCentrix(R)," said Chairman and CEO Ron Malone.Malone noted these performance highlights for the 2007 third quarter:
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Malone added that quarterly performance in the Other Related Servicessegment declined and reflected ongoing efforts to position those businessesfor accelerated growth.
Gentiva reported the following results for the nine months ended September30, 2007 and October 1, 2006, including the results of The Healthfield Group,Inc., which was acquired on February 28, 2006:
2007 and 2008 Information
Gentiva has reaffirmed its 2007 outlook with respect to EBITDA in a rangebetween $101 million and $105 million, and earnings per diluted share in arange between $1.15 and $1.22.
The Company has revised its 2007 revenue outlook to a range between $1.22billion and $1.24 billion (versus the previous range of $1.24 billion to $1.27billion) due to its continued success in eliminating low- margin business, andas a result of lower revenues in its Other Related Services segment.
Gentiva also announced an operating preview of 2008 with full-year netrevenues in a range of $1.25 billion to $1.29 billion and diluted earnings pershare in a range between $1.25 and $1.35, based upon the followingassumptions:
"We approach 2008 with both optimism and caution. While underlying demandis strong, our industry faces reimbursement uncertainties," Malone said. "Weunderstand the final PPS rule and believe we are well-positioned to adapt tothe significant changes it presents. While we support the continuedmodernization of the home health benefit, we vigorously oppose the reductionsunder the so-called 'case mix creep.'
"We are working to make sure members of Congress understand the criticalrole that our industry can play in meeting the challenges ahead for our healthcare system," he added. "We will strive to implement the new rule in the bestinterests of our patients and the exceptional care they have come to expectfrom Gentiva."
Non-GAAP Financial Measures
The information provided in this press release includes certain non-GAAPfinancial measures as defined under Securities and Exchange Commission (SEC)rules. In accordance with SEC rules, the Company has provided, in thesupplemental information and the footnotes to the tables, a reconciliation ofthose measures to the most directly comparable GAAP measures.
Conference Call and Web Cast Details
The Company will comment further on its third quarter 2007 results duringits conference call and live web cast to be held Thursday, November 1, 2007,at 11:00 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#9343150. The web cast is an audio-only, one-way event. Web cast listenerswho wish to ask questions must participate in the conference call. Log ontohttp://investors.gentiva.com/events.cfm to hear the web cast. This pressrelease is accessible at http://investors.gentiva.com/releases.cfm and atranscript of the conference call is expected to be available on the sitewithin 36 hours after the call.
About Gentiva Health Services, Inc.
Gentiva Health Services, Inc. is the nation's leading provider ofcomprehensive home health and related services. The Company serves patientsacross the United States, through its direct service delivery units or throughCareCentrix(R), which manages home health services for major managed car
