Gentiva Reports Strong Second Quarter led by Home Heal...(22207 20093 Payroll and ...)

Payroll and related taxes 19,094 17,163

Deferred revenue 33,624 29,015

Medicare liabilities 8,782 7,985

Cost of claims incurred but not

reported 22,089 24,321

Obligations under insurance

programs 38,805 36,816

Other accrued expenses 34,138 42,282

Total current liabilities 178,739 179,979

Long-term debt 331,000 307,696

Deferred tax liabilities, net 57,152 48,572

Other liabilities 22,109 22,557

Shareholders' equity 353,375 323,429

Total liabilities and

shareholders' equity $942,375 $882,233

Common shares outstanding 28,507 28,046

(A) Cash, cash equivalents and restricted cash included restricted cash of $0.3 million at June 29, 2008 and $22.0 million at December 30, 2007.

(B) Short-term and long-term investments at June 29, 2008 and December 30, 2007 consisted of AAA-rated auction rate securities. At June 29, 2008, long-term investments were presented net of a $0.4 million valuation allowance, the charge for which was recorded in shareholders' equity.

(C) Accounts receivable, net, included an allowance for doubtful accounts of $10.5 million and $9.4 million at June 29, 2008 and December 30, 2007, respectively.

(in 000's) Six Months

Condensed Statements of Cash Flows 2008 2007

OPERATING ACTIVITIES:

Net income
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