EXHIBIT 99.1
LHC Group Announces First Quarter 2015 Results
LAFAYETTE, La., May 6, 2015 (GLOBE NEWSWIRE) -- LHC Group, Inc. (Nasdaq:LHCG), a national provider of home health, hospice and community-based and comprehensive post-acute healthcare services, today announced its financial results for the three months ended March 31, 2015.
First Quarter Highlights
- Net service revenue for the first quarter of 2015 was $193.1 million, an increase of 18% compared with net service revenue of $163.7 million in the same period of 2014.
- Net income attributable to LHC Group for the first quarter of 2015 was $6.8 million, or $0.39 per diluted share, an increase of 62.5% compared with net income attributable to LHC Group of $4.1 million, or $0.24 per diluted share, in the same period of 2014.
- Organic growth in Home Health Medicare admissions for the first quarter of 2015 was 6.5% compared to the first quarter of 2014.
- The Company is raising its FY 2015 guidance for net service revenue to a range of $765 million to $780 million and revising its fully diluted earnings per share to a range of $1.55 to $1.70.
Commenting on the results, Keith G. Myers, LHC Group's chairman and CEO, said, "I am extremely proud of the strong and well-balanced operating results our team delivered during the first quarter. I am particularly pleased with our ability to once again achieve a solid organic growth rate in home health Medicare admissions of 6.5% compared with the first quarter of 2014. I would like to congratulate and thank our nearly 10,000 team members for their unwavering commitment to excellence and for consistently delivering high-quality care to the growing number of patients, families and communities we serve."
FY 2015 Guidance
The Company is raising its full year 2015 guidance issued on February 25, 2015, for net service revenue in the range of $755 million to $775 million to a new range of $765 million to $780 million. In addition, the Company is revising its fully diluted earnings per share in the range of $1.50 to $1.70 by raising the lower end and establishing a new range of $1.55 to $1.70. This guidance does not take into account the impact of future reimbursement changes, if any, future acquisitions or share repurchases, if made, de novo locations, if opened, or future legal expenses, if necessary.
Conference Call
LHC Group will host a conference call on Thursday, May 7, 2015, at 11:00 a.m. Eastern time to discuss its first quarter 2015 results. The toll-free number to call for this interactive teleconference is (866) 393-1608 (international callers should call (973) 890-8327). A telephonic replay of the conference call will be available through midnight on Wednesday, May 13, 2015, by dialing (855) 859‑2056 (international callers should call (404) 537-3406) and entering confirmation number 27216865. 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. A one-year online replay will be available approximately an hour after the conclusion of the live broadcast.
About LHC Group, Inc.
LHC Group, Inc. is a national provider of post-acute healthcare 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 healthcare services through home health, hospice and community-based services and provides inpatient care through long-term acute care hospitals.
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, 2014, 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 |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Amounts in thousands, except share data) |
| (Unaudited) |
| |
| | March 31,
2015 | Dec. 31,
2014 |
| ASSETS |
| Current assets: | | |
| Cash | $ 4,041 | $ 531 |
| Receivables: | | |
| Patient accounts receivable, less allowance for uncollectible accounts of $20,985 and $18,582, respectively | 98,041 | 97,498 |
| Other receivables | 2,523 | 1,334 |
| Amounts due from governmental entities | 978 | 1,164 |
| Total receivables, net | 101,542 | 99,996 |
| Deferred income taxes | 12,713 | 11,381 |
| Prepaid income taxes | 615 | 3,093 |
| Prepaid expenses | 10,477 | 8,724 |
| Other current assets | 4,597 | 3,777 |
| Receivable due from insurance carrier | -- | 7,850 |
| Total current assets | 133,985 | 135,352 |
| Property, building and equipment, net of accumulated depreciation of $45,784 and $44,683, respectively | 35,309 | 34,787 |
| Goodwill | 240,294 | 240,019 |
| Intangible assets, net of accumulated amortization of $7,124 and $6,560, respectively | 79,504 | 79,685 |
| Other assets | 1,872 | 1,896 |
| Total assets | $ 490,964 | $ 491,739 |
| | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY |
| Current liabilities: | | |
| Accounts payable and other accrued liabilities | $ 20,301 | $ 19,278 |
| Salaries, wages and benefits payable | 30,711 | 22,466 |
| Self-insurance reserve | 7,923 | 6,559 |
| Current portion of long-term debt | 233 | 230 |
| Amounts due to governmental entities | 5,382 | 4,459 |
| Legal settlement payable | -- | 7,850 |
| Total current liabilities | 64,550 | 60,842 |
| Deferred income taxes | 34,741 | 33,592 |
| Income tax payable | 3,415 | 3,415 |
| Revolving credit facility | 47,000 | 60,000 |
| Long-term debt, less current portion | 719 | 778 |
| Total liabilities | 150,425 | 158,627 |
| Noncontrolling interest – redeemable | 11,297 | 11,517 |
| Stockholders' equity: | | |
| Common stock – $0.01 par value: 40,000,000 shares authorized; 22,168,703 and 22,015,211 shares issued in 2015 and 2014, respectively | 222 | 220 |
| Treasury stock – 4,767,570 and 4,734,363 shares at cost, respectively | (36,782) | (35,660) |
| Additional paid-in capital | 110,549 | 108,708 |
| Retained earnings | 252,176 | 245,371 |
| Total LHC Group, Inc. stockholders' equity | 326,165 | 318,639 |
| Noncontrolling interest – non-redeemable | 3,077 | 2,956 |
| Total stockholders' equity | 329,242 | 321,595 |
| Total liabilities and stockholders' equity | $ 490,964 | $ 491,739 |
| LHC GROUP, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
| (Amounts in thousands, except share and per share data) |
| (Unaudited) |
| |
| | Three Months Ended
March 31, |
| | 2015 | 2014 |
| Net service revenue | $ 193,079 | $ 163,681 |
| Cost of service revenue | 114,426 | 97,334 |
| Gross margin | 78,653 | 66,347 |
| Provision for bad debts | 5,259 | 3,362 |
| General and administrative expenses | 59,298 | 54,579 |
| Operating income | 14,096 | 8,406 |
| Interest expense | (545) | (388) |
| Income before income taxes and noncontrolling interest | 13,551 | 8,018 |
| Income tax expense | 4,729 | 2,923 |
| Net income | 8,822 | 5,095 |
| Less net income attributable to noncontrolling interests | 2,017 | 1,027 |
| Net income attributable to LHC Group, Inc.'s common stockholders | $ 6,805 | $ 4,068 |
| | | |
| Earnings per share – basic and diluted: | | |
| Net income attributable to LHC Group, Inc.'s common stockholders | $ 0.39 | $ 0.24 |
| | | |
| Weighted average shares outstanding: | | |
| Basic | 17,322,791 | 17,148,043 |
| Diluted | 17,489,483 | 17,268,716 |
| LHC GROUP, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Amounts in thousands) |
| (Unaudited) |
| |
| | Three Months Ended
March 31, |
| | 2015 | 2014 |
| Operating activities | | |
| Net income | $ 8,822 | $ 5,095 |
| Adjustments to reconcile net income to net cash provided by operating activities: | | |
| Depreciation and amortization expense | 2,716 | 2,125 |
| Provision for bad debts | 5,259 | 3,362 |
| Stock-based compensation expense | 991 | 1,048 |
| Deferred income taxes | (183) | 395 |
| Impairment of intangibles and other | 79 | -- |
| Loss on disposal of assets | 284 | -- |
| Changes in operating assets and liabilities, net of acquisitions: | | |
| Receivables | (7,026) | 956 |
| Prepaid expenses and other assets | (2,549) | (39) |
| Prepaid income taxes | 2,478 | 248 |
| Accounts payable and accrued expenses | 10,624 | (6,428) |
| Net amounts due to/from governmental entities | 1,109 | (659) |
| Net cash provided by operating activities | 22,604 | 6,103 |
| | | |
| Investing activities | | |
| Purchases of property, building and equipment | (2,958) | (1,520) |
| Cash paid for acquisitions, primarily goodwill and intangible assets | (567) | (61,159) |
| Net cash (used in) investing activities | (3,525) | (62,679) |
| | | |
| Financing activities | | |
| Proceeds from line of credit | -- | 60,000 |
| Payments on line of credit | (13,000) | (12,000) |
| Proceeds from employee stock purchase plan | 210 | 184 |
| Payments on debt | (57) | (37) |
| Noncontrolling interest distributions | (2,242) | (1,768) |
| Excess tax benefits from vesting of stock awards | 642 | 112 |
| Redemption of treasury shares | (1,122) | (727) |
| Sale of noncontrolling interest | -- | 193 |
| Net cash provided by (used in) financing activities | (15,569) | 45,957 |
| Change in cash | 3,510 | (10,619) |
| Cash at beginning of period | 531 | 14,014 |
| Cash at end of period | $ 4,041 | $ 3,395 |
| | | |
| Supplemental disclosures of cash flow information | | |
| Interest paid | $ 447 | $ 370 |
| Income taxes paid | $ 1,787 | $ 2,413 |
| LHC GROUP, INC. AND SUBSIDIARIES |
| SEGMENT INFORMATION |
| (Amounts in thousands) |
| (Unaudited) |
| |
| | Three Months Ended March 31, 2015 |
| | Home-
Based Services | Community-
Based Services | Hospice
Services | Facility-Based
Services |
Total |
| Net service revenue | $ 146,592 | $ 9,773 | $ 16,851 | $ 19,863 | $ 193,079 |
| Cost of service revenue | 85,546 | 6,900 | 10,099 | 11,881 | 114,426 |
| Provision for bad debts | 4,476 | 180 | 347 | 256 | 5,259 |
| General and administrative expenses | 46,454 | 2,217 | 4,888 | 5,739 | 59,298 |
| Operating income | 10,116 | 476 | 1,517 | 1,987 | 14,096 |
| Interest expense | (430) | (6) | (60) | (49) | (545) |
| Income before income taxes and noncontrolling interest | 9,686 | 470 | 1,457 | 1,938 | 13,551 |
| Income tax expense | 3,657 | 45 | 620 | 407 | 4,729 |
| Net income | 6,029 | 425 | 837 | 1,531 | 8,822 |
| Less net income attributable to noncontrolling interests | 1,521 | (20) | 246 | 270 | 2,017 |
| Net income attributable to LHC Group, Inc.'s common stockholders | $ 4,508 | $ 445 | $ 591 | $ 1,261 | $ 6,805 |
| Total assets | $ 385,653 | $ 32,971 | $ 34,019 | $ 38,321 | $ 490,964 |
| | Three Months Ended March 31, 2014 |
| | Home-
Based Services | Community-
Based Services | Hospice
Services | Facility-Based
Services |
Total |
| Net service revenue | $ 127,793 | $ 887 | $ 15,222 | $ 19,779 | $ 163,681 |
| Cost of service revenue | 75,800 | 644 | 8,897 | 11,993 | 97,334 |
| Provision for bad debts | 2,623 | 31 | 105 | 603 | 3,362 |
| General and administrative expenses | 44,194 | 323 | 4,444 | 5,618 | 54,579 |
| Operating income (loss) | 5,176 | (111) | 1,776 | 1,565 | 8,406 |
| Interest expense | (307) | (3) | (39) | (39) | (388) |
| Income (loss) before income taxes and noncontrolling interest | 4,869 | (114) | 1,737 | 1,526 | 8,018 |
| Income tax expense | 2,270 | 23 | 346 | 284 | 2,923 |
| Net income (loss) | 2,599 | (137) | 1,391 | 1,242 | 5,095 |
| Less net income attributable to noncontrolling interest | 607 | -- | 201 | 219 | 1,027 |
| Net income (loss) attributable to LHC Group, Inc.'s common stockholders | $ 1,992 | $ (137) | $ 1,190 | $ 1,023 | $ 4,068 |
| Total assets | $ 400,911 | $ 1,544 | $ 28,919 | $ 36,726 | $ 468,100 |
| LHC GROUP, INC. AND SUBSIDIARIES |
| SELECT CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA |
| (Unaudited) |
| |
| | Three Months Ended
March 31, |
| | 2015 | 2014 |
| Key Data: | | |
| Home-Based Services: | | |
| Home Health | | |
| Locations | 272 | 267 |
| Acquired | 1 | 2 |
| De novo | 2 | 1 |
| Divested/Consolidated | 3 | 2 |
| Total new admissions | 35,965 | 30,913 |
| Medicare new admissions | 24,875 | 21,141 |
| Average daily census | 36,450 | 32,988 |
| Average Medicare daily census | 27,235 | 24,938 |
| Medicare completed and billed episodes | 46,684 | 42,375 |
| Average Medicare case mix for completed and billed Medicare episodes | 0.97 | 0.98 |
| Average reimbursement per completed and billed Medicare episodes | $ 2,435 | $ 2,360 |
| Total visits | 990,135 | 907,446 |
| Total Medicare visits | 741,850 | 681,523 |
| Average visits per completed and billed Medicare episodes | 15.9 | 16.1 |
| Organic growth:(1) | | |
| Net revenue | 4.5% | -5.1% |
| Net Medicare revenue | 2.9% | -5.4% |
| Total new admissions | 6.2% | -6.9% |
| Medicare new admissions | 6.5% | -7.9% |
| Average daily census | 0.8% | -11.5% |
| Average Medicare daily census | (0.5)% | -11.6% |
| Medicare completed and billed episodes | 0.3% | -3.7% |
| | | |
| Community-Based Services: | | |
| Locations | 14 | 8 |
| Acquired | 1 | 0 |
| De novo | 0 | 0 |
| Divested/Consolidated | 0 | 0 |
| Average daily census | 1,262 | 461 |
| Billable hours | 294,016 | 41,064 |
| Revenue per billable hour | $ 33.24 | $ 21.58 |
| | | |
| Hospice-Based Services: | | |
| Locations | 38 | 33 |
| Acquired | 0 | 1 |
| De novo | 0 | 0 |
| Divested/Consolidated | 0 | 1 |
| Admissions | 1,481 | 1,232 |
| Average daily census | 1,357 | 1,223 |
| Patient days | 122,179 | 110,043 |
| Average revenue per patient day | $ 138 | $ 138 |
| | | |
| Facility-Based Services: | | |
| Long-term Acute Care | | |
| Locations | 8 | 8 |
| Patient days | 16,162 | 16,462 |
| Average revenue per patient day | $ 1,187 | $ 1,154 |
| | | |
(1) 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: Eric Elliott
Investor Relations
(337) 233-1307
eric.elliott@lhcgroup.com