Gentiva Reports Strong Second Quarter led by Home Heal...($19747 $15791 Adjustments ...)

Adjustments to reconcile net income to

net cash provided by operating activities:

Depreciation and amortization 10,753 9,698

Amortization of debt issuance costs 593 509

Provision for doubtful accounts 6,124 3,886

Equity-based compensation expense 3,220 3,477

Windfall tax benefits associated

with equity-based compensation (1,306) (656)

Deferred income taxes 10,829 9,187

Changes in assets and liabilities,

net of acquired businesses:

Accounts receivable (24,960) (28,321)

Prepaid expenses and other current assets (1,508) (4,372)

Current liabilities (3,240) 11,112

Other, net 529 1,200

Net cash provided by operating

activities 20,781 21,511

INVESTING ACTIVITIES:

Purchase of fixed assets (13,831) (12,486)

Acquisition of businesses, net of

cash acquired (59,217) -

Purchases of short-term investments

available-for-sale (28,000) (39,100)

Maturities of short-term investments

available-for-sale 46,250 43,150

Net cash used in investing activities (54,798) (8,436)

FINANCING ACTIVITIES:

Proceeds from issuance of common stock 6,211 6,462

Windfall tax benefits associated

with equity-based compensation 1,306 656

Borrowings under revolvin
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