EXHIBIT 99.1
Highlights:
LAFAYETTE, La., Aug. 4, 2010 (GLOBE NEWSWIRE) -- LHC Group, Inc. (Nasdaq:LHCG), a national provider of home health and hospice services, announced today its financial results for the three and six months ended June 30, 2010.
Financial Results for the Second Quarter
In commenting on the results, Keith G. Myers, President and Chief Executive Officer of LHC Group, said, "We are extremely pleased with our operating results in the first half of 2010. We have made significant investments in people and infrastructure over the past few years, and as a result, we are well prepared for the challenges and opportunities we face this year as well as those that lie ahead in years to come. We are committed to excellence in the areas of quality, ethics, and patient satisfaction, which build long-term value and matter most to the patients, families, and communities we serve, as well as to payors and referral sources."
Financial Results for the Six Months
Guidance
The Company is reaffirming its full year 2010 guidance issued on April 28, 2010, for net service revenue of $615 million to $625 million and fully diluted earnings per share of $2.75 to $2.85. This guidance does not take into account the impact of any future acquisitions, if made, or de novo locations, if opened. This guidance also does not include any future legal or other expenses associated with responding to the Securities and Exchange Commission or Senate Finance Committee inquiries.
Conference Call
LHC Group will host a conference call on Thursday, August 5, 2010, at 11:00 a.m. Eastern time. The toll-free number to call for this interactive teleconference is (800) 677-1840 (international callers should call 973-890-8327). A telephonic replay of the conference call will be available through midnight on Thursday, August 12, 2010, by dialing (800) 642-1687 (international callers should call 706-645-9291) and entering confirmation number 82942907.
A live broadcast of LHC Group's conference call will be available under the Investor Relations section of the Company's website, www.lhcgroup.com or at www.opencompany.info. A one-year online replay will be available approximately an hour following the conclusion of the live broadcast.
About LHC Group, Inc.
LHC Group, Inc. (www.LHCGroup.com) is a national provider of home health and hospice services, providing quality, cost-effective healthcare to patients within the comfort and privacy of their home or place of residence. LHC Group provides a comprehensive array of post-acute healthcare services through home health and hospice locations in its home-based division and long-term acute care hospitals in its facility-based division.
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company's future financial performance and the strength of the Company's operations. Such forward-looking statements may be identified by words such as "continue," "expect," and similar expressions. Forward-looking statements involve a number of risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements, including changes in reimbursement, changes in government regulations, changes in LHC Group's relationships with referral sources, increased competition for LHC Group's services, increased competition for joint venture and acquisition candidates, changes in the interpretation of government regulations, and other risks set forth in Item 1A. Risk Factors in LHC Group's Annual Report on Form 10-K for the year ended December 31, 2009, filed with the Securities and Exchange Commission. LHC Group undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
| LHC GROUP, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (amounts in thousands, except share data) | ||
| (unaudited) | ||
| June 30, 2010 | Dec. 31, 2009 | |
| ASSETS | ||
| Current assets: | ||
| Cash | $ 1,274 | $ 394 |
| Receivables: | ||
| Patient accounts receivable, less allowance for uncollectible accounts of $9,264 and $8,262, respectively | 75,962 | 73,651 |
| Other receivables | 2,361 | 3,850 |
| Amounts due from governmental entities | -- | 1,184 |
| Total receivables, net | 78,323 | 78,685 |
| Deferred income taxes | 5,865 | 4,370 |
| Prepaid income taxes | 4,528 | 3,131 |
| Prepaid expenses and other current assets | 8,073 | 8,798 |
| Total current assets | 98,063 | 95,378 |
| Property, building and equipment, net of accumulated depreciation of $11,701 and $15,031, respectively | 24,219 | 21,361 |
| Goodwill | 149,546 | 139,474 |
| Intangible assets, net | 50,601 | 46,851 |
| Other assets | 8,769 | 3,169 |
| Total assets | $ 331,198 | $ 306,233 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and other accrued liabilities | $ 21,100 | $ 20,873 |
| Salaries, wages and benefits payable | 25,707 | 22,521 |
| Amounts due to governmental entities | 3,208 | 3,208 |
| Current portion of long-term debt | 416 | 387 |
| Total current liabilities | 50,431 | 46,989 |
| Deferred income taxes | 14,160 | 12,475 |
| Revolving credit facility | -- | 5,723 |
| Long-term debt, less current portion | 3,928 | 4,096 |
| Other long-term obligations | 1,550 | 1,567 |
| Total liabilities | 70,069 | 70,850 |
| Noncontrolling interest- redeemable | 13,683 | 13,823 |
| Stockholders' equity: | ||
| Common stock – $0.01 par value: 40,000,000 shares authorized; 21,121,802 and 20,967,418 shares issued and 18,119,529 and 17,990,685 shares outstanding, respectively | 181 | 179 |
| Treasury stock – 3,002,273 and 2,976,733 shares at cost, respectively | (4,297) | (3,513) |
| Additional paid-in capital | 88,210 | 86,310 |
| Retained earnings | 162,254 | 138,196 |
| Total LHC Group, Inc. stockholders' equity | 246,348 | 221,172 |
| Noncontrolling interest- non-redeemable | 1,098 | 388 |
| Total equity | 247,446 | 221,560 |
| Total liabilities and equity | $ 331,198 | $ 306,233 |
| LHC GROUP, INC. AND SUBSIDIARIES | ||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||
| (amounts in thousands, except share and per share data) | ||||
| (unaudited) | ||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||
| 2010 | 2009 | 2010 | 2009 | |
| Net service revenue | $ 154,235 | $ 132,953 | $ 299,915 | $ 257,215 |
| Cost of service revenue | 79,482 | 66,954 | 154,125 | 128,979 |
| Gross margin | 74,753 | 65,999 | 145,790 | 128,236 |
| Provision for bad debts | 1,541 | 1,853 | 3,601 | 3,035 |
| General and administrative expenses | 49,545 | 43,547 | 95,175 | 82,226 |
| Operating income | 23,667 | 20,599 | 47,014 | 42,975 |
| Interest expense | (25) | (39) | (50) | (98) |
| Non-operating income (loss) | 593 | 84 | 622 | (376) |
| Income from continuing operations before income taxes and noncontrolling interest | 24,235 | 20,644 | 47,586 | 42,501 |
| Income tax expense | 7,975 | 6,385 | 15,484 | 13,145 |
| Income from continuing operations | 16,260 | 14,259 | 32,102 | 29,356 |
| Income (loss) from discontinued operations, net of income tax expense (benefit) of $4, $(20), $4 and $(41), respectively | 6 | (31) | 6 | (65) |
| Net income | 16,266 | 14,228 | 32,108 | 29,291 |
| Less net income attributable to noncontrolling interest | 3,873 | 3,966 | 8,091 | 7,948 |
| Net income attributable to LHC Group, Inc. | 12,393 | 10,262 | 24,017 | 21,343 |
| Redeemable noncontrolling interest | -- | 20 | 41 | 49 |
| Net income attributable to LHC Group, Inc.'s common stockholders | $ 12,393 | $ 10,282 | $ 24,058 | $ 21,392 |
| Earnings per share – basic: | ||||
| Income from continuing operations attributable to LHC Group, Inc. | $ 0.68 | $ 0.57 | $ 1.33 | $ 1.19 |
| Loss from discontinued operations attributable to LHC Group, Inc. | -- | -- | -- | -- |
| Net income attributable to LHC Group, Inc. | 0.68 | 0.57 | 1.33 | 1.19 |
| Redeemable noncontrolling interest | -- | -- | -- | -- |
| Net income attributable to LHC Group, Inc.'s common stockholders | $ 0.68 | $ 0.57 | $ 1.33 | $ 1.19 |
| Earnings per share – diluted: | ||||
| Income from continuing operations attributable to LHC Group, Inc. | $ 0.68 | $ 0.57 | $ 1.32 | $ 1.19 |
| Loss from discontinued operations attributable to LHC Group, Inc. | -- | -- | -- | -- |
| Net income attributable to LHC Group, Inc. | 0.68 | 0.57 | 1.32 | 1.19 |
| Redeemable noncontrolling interest | -- | -- | -- | -- |
| Net income attributable to LHC Group, Inc.'s common stockholders | $ 0.68 | $ 0.57 | $ 1.32 | $ 1.19 |
| Weighted average shares outstanding: | ||||
| Basic | 18,118,197 | 17,959,823 | 18,080,077 | 17,942,119 |
| Diluted | 18,236,380 | 18,030,373 | 18,200,066 | 17,992,331 |
| LHC GROUP, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (amounts in thousands) | ||
| (unaudited) | ||
| | Six Months Ended June 30, | |
| 2010 | 2009 | |
| Operating activities | ||
| Net income | $ 32,108 | $ 29,291 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization expense | 3,377 | 2,286 |
| Provision for bad debts | 3,601 | 3,035 |
| Stock-based compensation expense | 1,859 | 1,101 |
| Deferred income taxes | 190 | 1,256 |
| Loss on impairment of intangible assets | -- | 543 |
| Changes in operating assets and liabilities, net of acquisitions: | ||
| Receivables | (5,206) | (8,605) |
| Prepaid expenses and other assets | 2,650 | (5,057) |
| Prepaid income taxes | (1,398) | (10,683) |
| Accounts payable and accrued expenses | 4,265 | 7,836 |
| Net cash provided by operating activities | 41,446 | 21,003 |
| Investing activities | ||
| Purchases of property, building, and equipment | (5,713) | (3,741) |
| Cash paid for acquisitions, primarily goodwill, intangible assets and advance payment on acquisitions | (20,215) | (12,176) |
| Net cash used in investing activities | (25,928) | (15,917) |
| Financing activities | ||
| Proceeds from line of credit | 9,023 | 18,134 |
| Payments on line of credit | (14,745) | (18,134) |
| Payment of deferred financing fees | -- | (260) |
| Principal payments on debt | (171) | (240) |
| Payments on capital leases | (14) | (65) |
| Excess tax benefits from vesting of restricted stock | 632 | 95 |
| Proceeds from employee stock purchase plan | 374 | 275 |
| Purchase of additional controlling interest | (1,914) | -- |
| Noncontrolling interest distributions | (7,823) | (7,179) |
| Net cash used in financing activities | (14,638) | (7,374) |
| Change in cash | 880 | (2,288) |
| Cash at beginning of period | 394 | 3,511 |
| Cash at end of period | $ 1,274 | $ 1,223 |
| Supplemental disclosures of cash flow information | ||
| Interest paid | $ 50 | $ 98 |
| Income taxes paid | $ 16,137 | $ 26,040 |
| LHC GROUP, INC. AND SUBSIDIARIES | ||||||
| SEGMENT INFORMATION | ||||||
| (amounts in thousands) | ||||||
| (unaudited) | ||||||
| Three Months Ended June 30, 2010 | Six Months Ended June 30, 2010 | |||||
| Home-Based Services | Facility-Based Services | Total | Home-Based Services | Facility-Based Services | Total | |
| Net service revenue | $ 136,554 | $ 17,681 | $ 154,235 | $ 265,232 | $ 34,683 | $ 299,915 |
| Cost of service revenue | 69,501 | 9,981 | 79,482 | 134,123 | 20,002 | 154,125 |
| Provision for bad debts | 1,337 | 204 | 1,541 | 3,292 | 309 | 3,601 |
| General and administrative expenses | 45,341 | 4,204 | 49,545 | 86,834 | 8,341 | 95,175 |
| Operating income | 20,375 | 3,292 | 23,667 | 40,983 | 6,031 | 47,014 |
| Interest expense | (22) | (3) | (25) | (45) | (5) | (50) |
| Non-operating income (loss) | 583 | 10 | 593 | 625 | (3) | 622 |
| Income from continuing operations before income taxes and noncontrolling interest | 20,936 | 3,299 | 24,235 | 41,563 | 6,023 | 47,586 |
| Income tax expense | 7,221 | 754 | 7,975 | 13,979 | 1,505 | 15,484 |
| Income from continuing operations | 13,715 | 2,545 | 16,260 | 27,584 | 4,518 | 32,102 |
| Noncontrolling interest | 3,417 | 456 | 3,873 | 7,184 | 907 | 8,091 |
| Gain from discontinued operations | -- | 6 | 6 | -- | 6 | 6 |
| Net income attributable to LHC Group, Inc. | $ 10,298 | $ 2,095 | $ 12,393 | $ 20,400 | $ 3,617 | $ 24,017 |
| Total assets | $ 296,462 | $ 34,736 | $ 331,198 | $ 296,462 | $ 34,736 | $ 331,198 |
| Three Months Ended June 30, 2009 | Six Months Ended June 30, 2009 | |||||
| Home-Based Services | Facility-Based Services | Total | Home-Based Services | Facility-Based Services | Total | |
| Net service revenue | $ 118,343 | $ 14,610 | $ 132,953 | $ 227,691 | $ 29,524 | $ 257,215 |
| Cost of service revenue | 57,957 | 8,997 | 66,954 | 111,543 | 17,436 | 128,979 |
| Provision for bad debts | 1,853 | -- | 1,853 | 2,881 | 154 | 3,035 |
| General and administrative expenses | 40,192 | 3,355 | 43,547 | 75,105 | 7,121 | 82,226 |
| Operating income | 18,341 | 2,258 | 20,599 | 38,162 | 4,813 | 42,975 |
| Interest expense | (34) | (5) | (39) | (86) | (12) | (98) |
| Non-operating income (loss) | 64 | 20 | 84 | (410) | 34 | (376) |
| Income from continuing operations before income taxes and noncontrolling interest | 18,371 | 2,273 | 20,644 | 37,666 | 4,835 | 42,501 |
| Income tax expense | 5,729 | 656 | 6,385 | 11,794 | 1,351 | 13,145 |
| Income from continuing operations | 12,642 | 1,617 | 14,259 | 25,872 | 3,484 | 29,356 |
| Noncontrolling interest | 3,603 | 363 | 3,966 | 7,101 | 847 | 7,948 |
| Gain from discontinued operations | -- | 31 | 31 | -- | 65 | 65 |
| Net income attributable to LHC Group, Inc. | $ 9,039 | $ 1,223 | $ 10,262 | $ 18,771 | $ 2,572 | $ 21,343 |
| Total assets | $ 245,503 | $ 24,094 | $ 269,597 | $ 245,503 | $ 24,094 | $ 269,597 |
| LHC GROUP, INC. AND SUBSIDIARIES | ||||
| SELECT CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA | ||||
| (unaudited) | ||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||
| 2010 | 2009 | 2010 | 2009 | |
| Key Data: | ||||
| Home-Based Services: | ||||
| Home Health locations | 235 | 220 | 235 | 220 |
| Hospice locations | 21 | 21 | 21 | 21 |
| Acquired (1) | 1 | 6 | 5 | 9 |
| De novo (1) | 3 | 7 | 5 | 9 |
| Home Health: | ||||
| Total new admissions | 22,540 | 19,779 | 44,345 | 37,883 |
| Medicare new admissions | 16,374 | 14,721 | 32,526 | 26,963 |
| Average weekly census | 31,345 | 29,182 | 31,033 | 28,508 |
| Average Medicare weekly census | 24,951 | 23,592 | 24,795 | 22,978 |
| Medicare completed and billed episodes | 40,509 | 37,410 | 79,245 | 71,531 |
| Average Medicare case mix for completed and billed Medicare episodes | 1.28 | 1.26 | 1.27 | 1.26 |
| Average reimbursement per completed and billed Medicare episodes | $ 2,505 | $ 2,422 | $ 2,493 | $ 2,425 |
| Total visits | 834,350 | 733,777 | 1,620,807 | 1,412,471 |
| Total Medicare visits | 647,541 | 581,669 | 1,264,908 | 1,115,889 |
| Average visits per completed and billed Medicare episodes | 16.0 | 15.5 | 16.0 | 15.6 |
| Organic growth (2): | ||||
| Net revenue | 6.9% | 24.5% | 8.2% | 27.7% |
| Net Medicare revenue | 6.2% | 26.7% | 7.6% | 29.9% |
| Total new admissions | 3.0% | 5.0% | 6.1% | 5.8% |
| Medicare new admissions | 2.3% | 8.6% | 11.1% | 2.7% |
| Average weekly census | -0.5% | 18.4% | 1.0% | 20.4% |
| Average Medicare weekly census | -1.0% | 20.7% | 1.2% | 24.4% |
| Medicare completed and billed episodes | 1.7% | 19.9% | 4.1% | 22.0% |
| Facility-Based Services: | ||||
| Long-term Acute Care Hospital locations | 9 | 8 | 9 | 8 |
| Acquired (1) | 1 | 1 | 1 | 1 |
| Patient days | 14,071 | 12,880 | 27,943 | 24,861 |
| Patient acuity mix | 1.0575 | 0.9795 | 1.0189 | 0.9954 |
| (1) Inclusive of both home health and hospice agencies. | ||||
| (2) Organic growth is calculated as the sum of same store plus de novo for the period divided by total from the same period in the prior year. | ||||
CONTACT: LHC Group, Inc.
Eric Elliott, Vice President of Investor Relations
(337) 233-1307
eric.elliott@lhcgroup.com