![]() Investor Presentation September 2011 Exhibit 99.1 |
![]() Forward-Looking Statements 2 This presentation should be considered forward-looking and is subject to various risk factors and uncertainties. For more information on those risk factors, please refer to Gentiva's various filings with the Securities and Exchange Commission (SEC), including the Company’s annual report on Form 10-K. This presentation is also produced in compliance with the SEC's Regulation FD, which provides guidelines on all disclosures by publicly traded companies. The viewer or listener should not place undue reliance on forward-looking statements, which speak only as of the date indicated in this presentation. The Company is not obligated to publicly release any revisions to forward-looking statements to reflect unforeseen or other events after such date. |
![]() Agenda Company Overview Legislative & Reimbursement Environment Current Business Priorities Financial Update 3 |
![]() Company Overview Leading U.S. provider of home healthcare and hospice services Revenue Mix* * Revenue mix calculated based on Q211 results. Average patient age Average daily census Locations: Home Health Hospice States FT employees 79 85K 478 312 166 42 15K 43% 57% 4 |
![]() Growth in U.S. Population of 65+ 10,000 U.S. citizens become eligible for Medicare each day. This trend is expected to continue for the next 20 years. 5 Sources: 2010 - U.S. Census Bureau. 2030 estimate - Administration on Aging, Dept. of Health & Human Services. |
![]() 6 Benefits of Home Healthcare Medicare Part A & Part B Average Payment Per Day (2) (1) Source: U.S. Census Bureau projections. (2) Source: CMS HCIS data files for 2006. Hospital data includes inpatient PPS and non-PPS. Home Health day calculated based on 60-day episode. Lower cost per day vs. hospitals and SNFs $1,479 $135 $303 $50 Hospice Home Health |
![]() 7 • Partnership for Quality Home Health active in Washington • Meetings with CMS to discuss changes to new Face-to-Face requirements • Drafting new legislation targeting industry fraud as substitute for other approaches Legislative Update |
![]() 8 Proposed rule issued July 2011 • 3.35% decrease including market basket/wage index updates and case-mix reduction • Removes two hypertension codes and lowers payments for high- therapy episodes Effective January 1, 2012 Home Health 2012 Medicare Reimbursement Update Final rule issued July 2011 • 2.5% net increase approved for 2012 Effective October 1, 2011 Potential 2012 Impact Combined 2012 EBITDA impact estimated to be $40-45M, excluding any revisions to current proposed rule Hospice |
![]() Current Business Priorities Actions to mitigate potential 2012 Medicare rate cut Grow volumes Reduce non-essential costs Divest non-core assets Seek legislative change 9 |
![]() Financial Update 10 |
![]() 11 Asset Sale Update • Announced sale of CareCentrix Holdings Inc. on August 26, 2011 • Sold remaining equity stake • Continue to hold $25M note receivable with 10% interest Net cash flow of $65-70M expected Net cash flow of $65-70M expected |
![]() 12 Cost Reduction Update • Business reviews underway focused on the following: – Limiting discretionary spending – Right-sizing business to reflect near-term growth trends – Achieving operating efficiencies at branch and support levels • Will provide a more detailed update in Q4 when assessment is complete |
![]() 13 Debt & Leverage Update (in millions, except leverage ratio) As of: June 30, 2011 December 31, 2010 Debt Total Debt $1,028.1 $1,051.6 Cash & Equivalents $98.1 $104.8 Net Debt $930.0 $946.8 Leverage Ratio Reported 3.93x Maximum Allowed 4.75x |
![]() 14 • In compliance today – Q211 leverage ratio of 3.93x vs. 4.75x requirement • Expect to be in compliance through year-end – Asset sales, cost reductions, and strong cash position offset potential Q411 impact of home health rate cut Q2 Q4 4.75x 4.5x Debt Update Covenant Waiver Considerations • Considerations – Final Medicare home health rules – Mitigating actions taken by GTIV – Growth environment • Working closely with banks should need arise for waiver 2012 2011 Q1 4.5x Q4 3.75x |
![]() 15 Investment Summary Significant long-term growth opportunities Strong financial track record Diversified revenue mix Positioned to play consolidator role Experienced management team |
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