Home healthcare and hospice provider Gentiva Health Services, Inc. (NASDAQ:GTIV) saw its net revenues drop 5% to $427.7 million in the second quarter ended June 30, 2012, but cost-cutting helped the company beat analysts’ estimate of $435.2 million.
The decrease in revenue compared to the second quarter of 2011 was due in part to a 6% drop in home health episodic revenues, to $207.5 million, compared to $219.8 million last year. Hospice revenues fell slightly to $192 million, compared to $194.4 million in the same quarter of 2011. Gentiva has had to cut costs to compensate for Medicare reimbursement cuts that went into effect last October.
Excluding the impact of branches sold or closed, total net revenues would have seen a slight increased compared to the $448.7 million reported in the second quarter of 2011, the company notes.
Net income attributable to Gentiva shareholders more than doubled to $13.9 million, or $0.46 per diluted share in 2012’s second quarter, compared to $5.2 million, or $0.17 per diluted share during the same period last year.
Based on results from the first half of 2012, Gentiva reaffirmed its 2012 guidance for full-year net revenues to be in the range of $1.70 billion to $1.76 billion and 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.
Written by Alyssa Gerace