Thursday, January 22, 2015

Gentiva Shareholders Vote for Kindred Buyout


StrangeTony,

SEC filings revealed:

LOUISVILLE, Ky. (January 22, 2015) – Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND) announced that, at the Special Meeting of Stockholders of Gentiva Health Services, Inc. (“Gentiva”) (NASDAQ:GTIV) held today, the Gentiva stockholders approved Gentiva’s combination with Kindred. 

Kindred expects to close the transaction on February 2, 2015.  What will Kindred be for Gentiva employees and patients? 

Anonymous (from Gentiva until February 2nd)

Monday, January 19, 2015

Kindred to Consummate Gentiva Transaction


StrangeTony,

Kindred talked about the impending takeover of Gentiva at the J.P. Morgan Annual Healthcare Conference:

Secondly, as part of consummating the Gentiva transaction which we announced publicly, we expect to close on February 2 here. So just in a couple of weeks. We will become the largest provider of home health and hospice in the country. Well over $2 billion of revenue, approaching almost $2.5 billion of revenue. Included in that is about $850 million of hospice revenue, the rest of it being on the home health, skilled nursing side and personal care side in a place that as we will talk more about our integrated care strategy, we at Kindred Healthcare believe that as the consumer continues to be more responsible for their first dollar out of pocket, as medical technology continues to improve and as our ability to continue to take care of a patient at the end of their stay grows that being able to provide care in the home is going to be more and more important in the future of healthcare delivery. And so being the largest in the home care space is very, very important to us as well. 
That's twelve days before Valentine's Day.  Time will show how much love Kindred shows Gentiva employees. Here's the close from Kindred's President and CEO Ben Breier:

As I mentioned earlier, not only you know are we confident in the work that we’re doing today in the context of integration, but that we believe that this is moving us into higher revenue growth businesses, as I mentioned earlier with higher EBITDA margins, better growth rate characteristics than what we’ve ever had at any other time in the history of Kindred. 

We take a lot of pride and spend a lot of time thinking about the leverage aspects of our Company and we’re going to work hard, investors, equity investors should note we’re going to spend a lot of time this year and beyond thinking about the continued focus on delevering our Company. We’re in a reasonable position now, but certainly as we start to grow into Gentiva, we’d like to get that leverage number into sort of the 5 times range and ultimately as we get through the first two years of the Gentiva close, we think that investors should expect us to be sort of more in the 4.5 range from a leverage perspective. 

 And so last — just from I think to a close from an investment perspective and an investment rationale perspective you know, we aspire to do really what we hope are amazing things inside of the healthcare delivery system. We really do think that we’re in a position to reshape the way healthcare is delivered for an aging population in America which we take very importantly. We think that, as I mentioned, we’re uniquely positioned in a fee-for-service world today to move our fee-for-service business into more of a value-based purchasing environment where over the course of the next couple of years, people will want to pay us for taking care of a patient more broadly. This continue the care strategy that we have developed, we think is absolutely a strategic advantage to how we deliver care out in the marketplace. If you think about our business today and how it compares to any of our competitors out there really, there is nobody that has the deep local market penetration with the broad national scale that we have to manage costs but really develop brand and be able to take care of patients all across the continuum like Kindred Healthcare does. 

 And as we continue to connect the dots on health information, IT, and on care coordination, we will continue to be much more effective at how we manage these patients. You know we’ve had transformational growth, there’s no question about it. I mean, both doing Gentiva and Centerre, it represents, I think, certainly the strength of the back office of our Company and our ability to integrate these businesses. And so this transformational growth you will continue to see play out over the course of 2015 which will have a strong growth profile with, as I said, improving margin characteristics. We will have you know what we think are substantial operating cash flow possibilities with a deleveraging profile

Warms the hospice heart doesn't it?

Anonymous (from Gentiva)

Thursday, January 15, 2015

Gentiva Headcount Down 11%


StrangeTony,

In three months time Gentiva's employment numbers dropped 5,000 people, according to Kindred Healthcare.  Kindred plans to close on Gentiva in early February.  Gentiva leaders say few changes will occur at the site or branch level.  How many of the missing 5,000 came from local operations vs. corporate layers?  Kindred did not break that out.

Anonymous (from Gentiva)

Tuesday, December 30, 2014

Gentiva Board Member's Shares Magically Grow


StrangeTony,

SEC filings show Gentiva Board member Robert Forman's stock holdings increased by roughly 28,000 shares with no declared activity.  His September filing showed holdings of 43,938 shares.  This rose to 71,538 shares in a December 23rd filing.  How does that happen with no filing in between?  Something's missing or amiss.

Anonymous (from Gentiva)

Friday, December 19, 2014

Slusser Latest to Exercise Executive Options


StrangeTony,

Gentiva Chief Financial Officer Eric Slusser exercised his stock options for a profit of $760,000.  His remaining stock holdings are valued at $4.6 million. Susser's stock option sale occurred nearly two weeks after a number of Gentiva leaders.  This wait cost Slusser over 25 cents per share in proceeds.  He left over $22,000 on the table.  How many Gentiva employees work for a year for that level of pay?  I bet that number would fill a lot of buses.

Also, the buyout vote for Gentiva shareholders will occur on Thursday, January 15, 2015. It will take a Gentiva wreck for the deal to not go through.

Anonymous (from Gentiva)

Tuesday, December 16, 2014

Chairman of Fun Exercises Options

StrangeTony,

Gentiva Executive Chairman Rod Windley became the latest senior leader to exercise stock options prior to selling their company to Kindred Healthcare.  Windley stands to nearly double his money given an option purchase price of $10.24 per share and a quick flip sale at $19.05.  It's an 86% return at those prices.

Windley still holds over 515,000 shares of Gentiva stock worth over $9.8 million.  That will buy a lot of future fun.  Meanwhile the company cut its health insurance contribution for 2015.  That could mean much misery for employees living on the margin

Anonymous (from Gentiva)

Friday, December 12, 2014

Kindred's December Debt Offering

StrangeTony,

Kindred's SEC filing stated the company will float unsecured debt as part of its financing of its Gentiva purchase:

Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND) today announced that it proposes to offer, subject to market and other conditions, $1.35 billion of senior unsecured notes (the “Notes”) to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-United States persons in offshore transactions. 

The actual terms of the Notes, including interest rate, principal amount and maturity, will be determined at the time of pricing. The Notes are expected initially to be issued by Kindred’s subsidiary, Kindred Escrow Corp. II.

Qualified institutional buyers, offshore transactions, Kindred Escrow Corp. II?  This is high finance, levered healthcare priced at premium levels, 8% and 8.75%. 

Kindred's debt is expected to be sold by December 18th, one week before Christmas.  It's nearly the shortest day of the year, the one with the least light.  It's fitting. 


Anonymous (from Gentiva)