Supplemental Guarantor and Non-Guarantor Financial Information (Tables)

3 Months Ended

Mar. 31, 2014

March 31, 2014

(In thousands)



	Gentiva Health Services, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated Total
ASSETS
Current assets:
Cash and cash equivalents	$	31,002		$	—	$	31,882	$	—		$	62,884
Receivables, net	—			285,494		53,558		(47,714		)	291,338
Deferred tax assets, net	—			22,848		3,242		—			26,090
Prepaid expenses and other current assets	—			55,939		10,729		—			66,668
Total current assets	31,002			364,281		99,411		(47,714		)	446,980
Notes receivable from CareCentrix	—			28,471		—		—			28,471
Fixed assets, net	—			46,612		576		—			47,188
Intangible assets, net	—			252,132		2,600		—			254,732
Goodwill	—			381,150		8,931		—			390,081
Investment in subsidiaries	813,960			29,125		—		(843,085		)	—
Other assets	27,012			40,463		7		—			67,482
Total assets	$	871,974		$	1,142,234	$	111,525	$	(890,799	)	$	1,234,934

LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	47,263		$	—	$	—	$	—		$	47,263
Accounts payable	—			55,670		—		(43,074		)	12,596
Other current liabilities	1,917			212,335		78,296		(4,640		)	287,908
Total current liabilities	49,180			268,005		78,296		(47,714		)	347,767
Long-term debt	1,118,197			—		—		—			1,118,197
Deferred tax liabilities, net	—			14,711		—		—			14,711
Other liabilities	6,285			45,558		—		—			51,843
Total Gentiva shareholders’ (deficit) equity	(301,688		)	813,960		29,125		(843,085		)	(301,688		)
Noncontrolling interests	—			—		4,104		—			4,104
Total (deficit) equity	(301,688		)	813,960		33,229		(843,085		)	(297,584		)
Total liabilities and equity (deficit)	$	871,974		$	1,142,234	$	111,525	$	(890,799	)	$	1,234,934

Condensed Consolidating Balance Sheet

December 31, 2013

(In thousands)



	Gentiva Health Services, Inc.			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated Total
ASSETS
Current assets:
Cash and cash equivalents	$	55,076		$	—	$	31,881	$	—		$	86,957
Receivables, net	—			284,379		34,136		(28,610		)	289,905
Deferred tax assets, net	—			25,845		2,308		—			28,153
Prepaid expenses and other current assets	—			50,890		13,856		—			64,746
Total current assets	55,076			361,114		82,181		(28,610		)	469,761
Note receivable from CareCentrix	—			28,471		—		—			28,471
Fixed assets, net	—			48,824		551		—			49,375
Intangible assets, net	—			253,682		2,600		—			256,282
Goodwill	—			384,017		6,064		—			390,081
Investment in subsidiaries	791,456			28,382		—		(819,838		)	—
Other assets	28,266			40,370		11		—			68,647
Total assets	$	874,798		$	1,144,860	$	91,407	$	(848,448	)	$	1,262,617

LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	45,325		$	—	$	—	$	—		$	45,325
Accounts payable	—			15,377		282		—			15,659
Other current liabilities	188			283,040		59,868		(28,610		)	314,486
Total current liabilities	45,513			298,417		60,150		(28,610		)	375,470
Long-term debt	1,124,432			—		—		—			1,124,432
Deferred tax liabilities, net	—			9,825		—		—			9,825
Other liabilities	7,922			45,162		—		—			53,084
Total Gentiva shareholders’ (deficit) equity	(303,069		)	791,456		28,382		(819,838		)	(303,069		)
Noncontrolling interests	—			—		2,875		—			2,875
Total (deficit) equity	(303,069		)	791,456		31,257		(819,838		)	(300,194		)
Total liabilities and equity (deficit)	$	874,798		$	1,144,860	$	91,407	$	(848,448	)	$	1,262,617

For the Three Months Ended March 31, 2014

(In thousands)



	Gentiva Health Services, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Net revenues	$	—		$	474,694		$	17,945		$	(5,134	)	$	487,505
Cost of services sold	—			266,093			12,109			(5,134		)	273,068
Gross profit	—			208,601			5,836			—			214,437
Selling, general and administrative expenses	—			(183,887		)	(5,133		)	—			(189,020		)
Interest (expense) and other, net	(24,550		)	—			52			—			(24,498		)
Equity in earnings of subsidiaries	15,911			254			—			(16,165		)	—
(Loss) income before income taxes	(8,639		)	24,968			755			(16,165		)	919
Income tax benefit (expense)	8,953			(9,057		)	(317		)	—			(421		)
Net income	314			15,911			438			(16,165		)	498
Noncontrolling interests	—			—			(184		)	—			(184		)
Net income attributable to Gentiva shareholders	$	314		$	15,911		$	254		$	(16,165	)	$	314
Total comprehensive income	$	314		$	15,911		$	438		$	(16,165	)	$	498

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the Three Months Ended March 31, 2013

(In thousands)



	Gentiva Health Services, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Net revenues	$	—		$	403,144		$	15,626		$	(3,179	)	$	415,591
Cost of services sold	—			213,202			11,550			(3,179		)	221,573
Gross profit	—			189,942			4,076			—			194,018
Selling, general and administrative expenses	—			(155,249		)	(4,628		)	—			(159,877		)
Goodwill and other long-lived asset impairment	—			(224,320		)	—			—			(224,320		)
Interest (expense) and other, net	(22,310		)	—			17			—			(22,293		)
Equity in earnings of subsidiaries	(193,791		)	(397		)	—			194,188			—
Loss before income taxes	(216,101		)	(190,024		)	(535		)	194,188			(212,472		)
Income tax benefit (expense)	8,924			(3,767		)	259			—			5,416
Net loss	(207,177		)	(193,791		)	(276		)	194,188			(207,056		)
Noncontrolling interests	—			—			(121		)	—			(121		)
Net loss attributable to Gentiva shareholders	$	(207,177	)	$	(193,791	)	$	(397	)	$	194,188		$	(207,177	)
Total comprehensive loss	$	(207,177	)	$	(193,791	)	$	(276	)	$	194,188		$	(207,056	)

For the Three Months Ended March 31, 2014

(In thousands)



	Gentiva Health Services, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
OPERATING ACTIVITIES:
Net cash used in operating activities	$	(11,806	)	$	(5,012	)	$	(597	)	$	(328	)	$	(17,743	)
INVESTING ACTIVITIES:
Purchase of fixed assets	—			(3,104		)	(54		)	—			(3,158		)
Proceeds from sale of assets	—			191			—			—			191
Net cash used in investing activities	—			(2,913		)	(54		)	—			(2,967		)
FINANCING ACTIVITIES:
Proceeds from issuance of common stock	597			—			—			—			597
Windfall tax benefits associated with equity-based compensation	6			—			—			—			6
Repayment of long-term debt	(4,581		)	—			—			—			(4,581		)
Minority interest capital contributions	—			—			1,160						1,160
Distribution to minority interests	—			—			(115		)				(115		)
Distribution to majority interests	—			—			(328		)	328			—
Other	(337		)	(28		)	(65		)	—			(430		)
Net payments related to intercompany financing	(7,953		)	7,953			—			—			—
Net cash (used in) provided by financing activities	(12,268		)	7,925			652			328			(3,363		)
Net change in cash and cash equivalents	(24,074		)	—			1			—			(24,073		)
Cash and cash equivalents at beginning of period	55,076			—			31,881			—			86,957
Cash and cash equivalents at end of period	$	31,002		$	—		$	31,882		$	—		$	62,884

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 31, 2013

(In thousands)



	Gentiva Health Services, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated Total
OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	$	(8,314	)	$	(13,821	)	$	1,575		$	—	$	(20,560	)
INVESTING ACTIVITIES:
Purchase of fixed assets	—			(2,646		)	(52		)	—		(2,698		)
Net cash used in investing activities	—			(2,646		)	(52		)	—		(2,698		)
FINANCING ACTIVITIES:
Proceeds from issuance of common stock	992			—			—			—		992
Windfall tax benefits associated with equity-based compensation	72			—			—			—		72
Repayment of long-term debt	(25,000		)	—			—			—		(25,000		)
Debt issuance costs	—			—			—			—		—
Distribution to minority interests	387			(28		)	(599		)	—		(240		)
Other	(23		)	—			—			—		(23		)
Net payments related to intercompany financing	(16,495		)	16,495			—			—		—
Net cash (used in) provided by financing activities	(40,067		)	16,467			(599		)	—		(24,199		)
Net change in cash and cash equivalents	(48,381		)	—			924			—		(47,457		)
Cash and cash equivalents at beginning of period	166,140			—			40,912			—		207,052
Cash and cash equivalents at end of period	$	117,759		$	—		$	41,836		$	—	$	159,595