Gentiva(R) Health Services Sells Respiratory/HME and Infusion Businesses
ATLANTA, Feb. 4 /PRNewswire-FirstCall/ -- Gentiva Health Services, Inc. (Nasdaq: GTIV), a leading provider of comprehensive home health services, announced today that it has sold its businesses providing respiratory therapy and home medical equipment, and infusion therapy to a subsidiary of Lincare Holdings Inc. (Nasdaq: LNCR) in an all-cash transaction. Terms were not disclosed.
Included in the transaction are approximately forty locations in seven states providing respiratory/HME and/or infusion therapy. The businesses generated revenue of approximately $55 million for the trailing twelve months ended September 27, 2009. The sale of these operations by Gentiva is consistent with a series of divestitures of non-core assets, including the sale of (i) a majority interest in the ancillary care benefit management services provider CareCentrix in the third quarter of 2008; and (ii) branch offices specializing in pediatric and adult private duty services in March 2009. Moving forward, Gentiva's business will consist primarily of home health and hospice services targeted to the senior population.
"The transaction continues our efforts to focus Gentiva on our core expertise in providing in-home geriatric care services," said Gentiva CEO and President Tony Strange. "By simplifying our business, we are able to direct our resources on internal and external growth initiatives in home health and hospice, including the continuing roll-out of our industry leading specialty care programs and the completion of strategic acquisitions. We wish everyone in the respiratory/HME and infusion businesses the best for the future and thank them for their contributions to Gentiva."
The financial results of the respiratory therapy and home medical equipment and infusion therapy businesses are expected to be reported as discontinued operations in Gentiva's consolidated financial statements for the year ended January 3, 2010. The Company anticipates that such discontinued operations will reflect a small operating loss for fiscal year 2009, exclusive of any special items or asset impairment charges. Gentiva will release its fourth quarter and full-year 2009 financial results, announce its 2010 financial outlook and host its quarterly earnings conference call on February 18, 2010.
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; 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-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; legislative proposals for healthcare reform; changes in Medicare and Medicaid reimbursement levels; 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 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; 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 (SEC), including the "Risk Factors" section contained in the Company's annual report on Form 10-K for the year ended December 28, 2008.
Financial and Investor Contact: |
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John R. Potapchuk |
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631-501-7035 |
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or Brandon Ballew |
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770-221-6700 |
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Media Contact: Scott Cianciulli |
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Brainerd Communicators |
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212-986-6667 |
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SOURCE Gentiva Health Services, Inc.
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