Gentiva Health Services
on Tuesday reported
57.8% higher net income in the second quarter of 2014 than the same period last year. The Atlanta-based company, which is being circled by two suitors, attributed the improvement to its restructuring strategy and the October acquisition of Harden Healthcare Holdings.
Gentiva CEO Tony Strange, on an earnings call, declined to discuss the two merger proposals, both worth $17.25 per share. Kindred Healthcare
and another, undisclosed suitor have both signed confidentiality agreements and will be given access to nonpublic information, he confirmed.
Gentiva last month offered a preview
of its results to make the case that Kindred’s
earlier offer of $14.50 per share undervalued the company.
In total, Gentiva reported $10 million in net income on $498 million in revenue for the second quarter, compared with $6.3 million in net income on $414.4 million in revenue in the year-ago period.
Including the Harden acquisition, admissions were up 11% in its home-health business and 6% in its hospice services, Strange said.
Gentiva has closed 54 branches over the past three quarters.
Gentiva shares Tuesday hit a 52-week high of $18.50, well above their two suitors’ $17.25 per share offer price, signaling Wall Street investors are betting a higher offer will be made for the company before the takeover battle ends.Follow Beth Kutscher on Twitter: @MHbkutscher