LHC (LHCG) 8-K LHC Group Announces Fourth Quarter EPS of $0.44 and 17.8% Growth in Adjusted EPS to $0.53

EXHIBIT 99.1

LHC Group Announces Fourth Quarter EPS of $0.44 and 17.8% Growth in Adjusted EPS to $0.53

Establishes Financial Guidance for 2016

LAFAYETTE, La., March 02, 2016 (GLOBE NEWSWIRE) -- LHC Group, Inc. (NASDAQ:LHCG), a national provider of home health, hospice, community-based and comprehensive post-acute healthcare services, today announced its financial results for the three months and year ended December 31, 2015.

Financial Results for the Fourth Quarter

• Net service revenue increased 13.2% to $219.0 million for the fourth quarter of 2015 compared with $193.4 million for the fourth quarter of 2014.
• Net income attributable to LHC Group for the fourth quarter of 2015 was $7.7 million, or $0.44 per diluted share, compared with $5.5 million, or $0.32 per diluted share, in the same period of 2014.
• Adjusted net income attributable to LHC Group increased 21.0% to $9.3 million and 17.8% to $0.53 per diluted share for the fourth quarter of 2015 from $7.7 million and $0.45 per diluted share for the fourth quarter of 2014.⁽¹⁾
• Total comparable-quarter growth in admissions for all service lines was 7.7%.
• Total comparable-quarter organic growth in home health admissions was 4.0%.

Financial Results for the Year

• Net service revenue grew 11.3% to $816.4 million for 2015 compared with $733.6 million for 2014.
• Net income attributable to LHC Group for 2015 was $32.3 million, or $1.84 per diluted share.
• Adjusted net income attributable to LHC Group for 2015 increased 41.9% to $34.1 million and 39.6% to $1.94 per diluted share.⁽¹⁾
• Total growth in admissions for all service lines for 2015 was 8.3% compared with 2014.
• Total organic growth in home health admissions for 2015 was 3.4% compared with 2014.
• General and administrative expense improved 140 basis points to 30.5% of revenue for 2015.

⁽¹⁾ See "Reconciliation of Non-GAAP Measures - Adjusted net income attributable to LHC Group" to GAAP results on page 9.

"LHC Group produced substantial profitable growth for the fourth quarter of 2015 to complete a year of strong financial performance," said Keith G. Myers, LHC Group's chairman and CEO. "The double-digit increase in our revenues reflected continued meaningful organic revenue growth, which, at 5.9%, was our strongest quarterly performance for the year. Our acquisition strategy also again drove our results. For 2015, we completed seven acquisition transactions, for nine home health agencies, 17 hospice agencies and two community-based services agencies, which generate aggregate annualized revenue of $64.6 million. These transactions included the fourth quarter acquisitions of Halcyon Hospice with approximately $41 million of annualized revenue and two home health agencies in Kentucky with approximately $7.6 million in aggregate annualized revenue. In addition, our ongoing cost containment efforts, combined with increased revenue-driven operating leverage, produced a 60 basis-point improvement in G&A as a percentage of revenue for the fourth quarter.

"I congratulate our team for these results, even as we continued to achieve above-industry quality scores. We expect our growth momentum to continue in 2016, as we capitalize on opportunities for further organic growth and evaluate a very robust pipeline of potential acquisition opportunities. With cash flow from operations for 2015 of $60 million and availability under our credit agreement of $117.1 million at year end, we are confident of our ability to execute our growth plans for 2016.

"Over the longer term, we also believe LHC Group is well positioned for the shift in the reimbursement system to value-based payment models, which incentivize payors to leverage the capabilities of high quality home health providers. We are already seeing an increase in the volume and acuity of our admissions as payors shift patients from more intensive and more expensive clinical settings, and we are already making a difference in the lives of our patients and their families with our innovative physician-led clinical protocols. With this shift intensifying over the coming years, we expect to be a leading partner of choice for health systems and payors as they seek to improve their patients’ non-acute care. Based on LHC Group’s demonstrated quality of care, scale and market density, innovative, data-driven technology capabilities, financial strength and proven acquisition and integration expertise, we expect to leverage these favorable market dynamics to produce further long-term growth in earnings and shareholder value."

FY 2016 Guidance
Fiscal year 2016 net service revenue is expected to be in the range of $870 million to $890 million, and fully diluted earnings per share are expected to be in the range of $1.90 to $2.00. This guidance includes:

⁽¹⁾ the negative impact from the Medicare Home Health Prospective Payment System for 2016, which is expected to have an approximate 2% impact, or $9.5 million reduction to Medicare Home Health revenue and $0.32 reduction in fully diluted earnings per share for 2016; and
⁽²⁾ the negative impact from the Medicare Long-Term Care Hospital (LTCH) Prospective Payment System (PPS), which establishes two different types of LTCH PPS payment rates depending on whether the patient meets certain clinical criteria: the LTCH PPS standard Federal payment rate and a new LTCH PPS site neutral payment rate comparable to the IPPS payment rates. The effect from the LTCH PPS is a 4.9% impact, or an expected $3.6 million reduction to Medicare LTCH revenue or $0.06 net reduction in fully diluted earnings per share for 2016 after implementation strategies.

The Company's financial guidance does not take into account the impact of other future reimbursement changes, if any, future acquisitions, if made, de novo locations, if opened, or future legal expenses, if necessary.

Conference Call
LHC Group will host a conference call on Thursday, March 3, 2016, at 11:00 a.m. Eastern time to discuss its fourth quarter and full year 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 Thursday, March 10, 2016, by dialing (855) 859‑2056 (international callers should call (404) 537-3406) and entering confirmation number 19231055. 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 following 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 primarily 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, community‑based services agencies and 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)
	Dec. 31, 2015			Dec. 31, 2014
ASSETS
Current assets:
Cash	$	6,139		$	531
Receivables:
Patient accounts receivable, less allowance for uncollectible accounts of $26,712 and $18,582, respectively		110,350			97,498
Other receivables		2,093			1,334
Amounts due from governmental entities		1,081			1,164
Total receivables, net		113,524			99,996
Deferred income taxes		–			11,381
Prepaid income taxes		1,949			3,093
Prepaid expenses		10,833			8,724
Other current assets		5,835			3,777
Receivable due from insurance carrier		550			7,850
Total current assets		138,830			135,352
Property, building and equipment, net of accumulated depreciation of $38,907 and $44,683, respectively		38,096			34,787
Goodwill		290,694			240,019
Intangible assets, net of accumulated amortization of $8,496 and $6,560, respectively		96,405			79,685
Other assets		2,029			1,896
Total assets	$	566,054		$	491,739
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and other accrued liabilities	$	24,586		$	19,278
Salaries, wages and benefits payable		28,098			22,466
Self-insurance reserve		9,636			6,559
Current portion of long-term debt		241			230
Amounts due to governmental entities		7,055			4,459
Legal settlement payable		550			7,850
Total current liabilities		70,166			60,842
Deferred income taxes		23,729			33,592
Income tax payable		3,415			3,415
Revolving credit facility		98,000			60,000
Long-term debt, less current portion		543			778
Total liabilities		195,853			158,627
Noncontrolling interest – redeemable		12,408			11,517
Stockholders’ equity:
Common stock – $0.01 par value: 40,000,000 shares authorized; 22,224,423 and 22,015,211 shares issued in 2015 and 2014, respectively		222			220
Treasury stock – 4,776,560 and 4,734,363 shares at cost, respectively		(37,139	)		(35,660	)
Additional paid-in capital		113,793			108,708
Retained earnings		277,706			245,371
Total LHC Group, Inc. stockholders’ equity		354,582			318,639
Noncontrolling interest – non-redeemable		3,211			2,956
Total stockholders’ equity		357,793			321,595
Total liabilities and stockholders’ equity	$	566,054		$	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 December 31,						Year Ended December 31,
		2015			2014			2015			2014
Net service revenue	$	218,993		$	193,371		$	816,366		$	733,632
Cost of service revenue		128,940			112,792			480,878			434,775
Gross margin		90,053			80,579			335,488			298,857
Provision for bad debts		4,369			4,081			19,243			15,780
General and administrative expenses		68,106			61,287			248,629			233,945
Impairment of intangibles and other		1,025			3,646			1,273			3,646
Operating income		16,553			11,565			66,343			45,486
Interest expense		(769	)		(625	)		(2,302	)		(2,486	)
Non-operating income		100			106			457			265
Income before income taxes and noncontrolling interest		15,884			11,046			64,498			43,265
Income tax expense		5,752			3,314			22,848			14,513
Net income		10,132			7,732			41,650			28,752
Less net income attributable to noncontrolling interest		2,398			2,198			9,315			6,915
Net income attributable to LHC Group, Inc.’s common stockholders	$	7,734		$	5,534		$	32,335		$	21,837
Earnings per share – basic:
Net income attributable to LHC Group, Inc.’s common stockholders	$	0.44		$	0.32		$	1.86		$	1.27
Earnings per share – diluted:
Net income attributable to LHC Group, Inc.’s common stockholders	$	0.44		$	0.32		$	1.84		$	1.26
Weighted average shares outstanding:
Basic		17,447,691			17,274,677			17,405,379			17,229,026
Diluted		17,647,483			17,419,423			17,547,531			17,315,333

LHC GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
	Year Ended December 31,
		2015			2014
Operating activities
Net income	$	41,650		$	28,752
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		11,955			9,571
Provision for bad debts		19,243			15,780
Stock based compensation expense		4,225			4,094
Deferred income taxes		1,518			2,402
Impairment of intangibles and other		1,990			3,650
Changes in operating assets and liabilities, net of acquisitions:
Receivables		(27,951	)		(16,372	)
Prepaid expenses and other assets		(3,793	)		191
Prepaid income taxes		441			911
Accounts payable and accrued expenses		10,526			(10,460	)
Net amounts due to/from governmental entities		130			138
Net cash provided by operating activities		59,934			38,657
Investing activities
Purchases of property, building and equipment		(13,283	)		(8,105	)
Cash paid for acquisitions, primarily goodwill and intangible assets		(70,572	)		(73,933	)
Net cash used in investing activities		(83,855	)		(82,038	)
Financing activities
Proceeds from line of credit		83,000			75,000
Payments on line of credit		(45,000	)		(37,000	)
Proceeds from employee stock purchase plan		782			782
Payments on debt		(233	)		(202	)
Noncontrolling interest distributions		(8,324	)		(6,843	)
Payment of deferred financing fees		–			(852	)
Excess tax benefits from vesting of restricted stock		914			124
Redemption of treasury shares		(1,479	)		(945	)
Purchase of additional noncontrolling interest		(275	)		(359	)
Proceeds from exercise of stock options		144			–
Sale of noncontrolling interest		–			193
Net cash provided by financing activities		29,529			29,898
Change in cash		5,608			(13,483	)
Cash at beginning of period		531			14,014
Cash at end of period	$	6,139		$	531
Supplemental disclosures of cash flow information
Interest paid	$	1,870		$	2,461
Income taxes paid	$	20,361		$	11,781

LHC GROUP, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in thousands)
(Unaudited)
	Three Months Ended December 31, 2015
	Home Health Services			Hospice Services			Community- Based Services			Facility- Based Services			Total
Net service revenue	$	158,279		$	31,166		$	10,488		$	19,060		$	218,993
Cost of service revenue		92,147			18,271			7,444			11,078			128,940
Provision for bad debts		3,627			306			384			52			4,369
General and administrative expenses		49,352			11,096			2,155			5,503			68,106
Impairment of intangibles and other		1,025			–			–			–			1,025
Operating income		12,128			1,493			505			2,427			16,553
Interest expense		(607	)		(85	)		(8	)		(69	)		(769	)
Non-operating income		89			13			1			(3	)		100
Income before income taxes and noncontrolling interest		11,610			1,421			498			2,355			15,884
Income tax expense		4,173			485			230			864			5,752
Net income		7,437			936			268			1,491			10,132
Less net income attributable to noncontrolling interest		1,839			299			(43	)		303			2,398
Net income attributable to LHC Group, Inc.'s  common stockholders	$	5,598		$	637		$	311		$	1,188		$	7,734
Total assets	$	394,392		$	101,641		$	31,235		$	38,786		$	566,054

	Three Months Ended December 31, 2014
	Home Health Services			Hospice Services			Community- Based Services			Facility- Based Services			Total
Net service revenue	$	147,637		$	18,260		$	9,439		$	18,035		$	193,371
Cost of service revenue		84,473			10,325			6,821			11,173			112,792
Provision for bad debts		3,104			442			366			169			4,081
General and administrative expenses		48,821			4,888			2,264			5,314			61,287
Impairment of intangibles and other		3,269			202			–			175			3,646
Operating income		7,970			2,403			(12	)		1,204			11,565
Interest expense		(495	)		(63	)		(4	)		(63	)		(625	)
Non-operating income		99			3			1			3			106
Income before income taxes and noncontrolling interest		7,574			2,343			(15	)		1,144			11,046
Income tax expense		2,319			558			22			415			3,314
Net income		5,255			1,785			(37	)		729			7,732
Less net income attributable to noncontrolling interest		1,780			294			(24	)		148			2,198
Net income attributable to LHC Group, Inc.’s common stockholders	$	3,475		$	1,491		$	(13	)	$	581		$	5,534
Total assets	$	386,511		$	34,847		$	34,027		$	36,354		$	491,739

LHC GROUP, INC. AND SUBSIDIARIES
SEGMENT INFORMATION (Continued)
(Amounts in thousands)
(Unaudited)
	Year Ended December 31, 2015
	Home Health Services			Hospice Services			Community- Based Services			Facility- Based Services			Total
Net service revenue	$	613,188		$	85,854		$	41,202		$	76,122		$	816,366
Cost of service revenue		354,750			50,906			29,076			46,146			480,878
Provision for bad debts		15,736			1,002			1,816			689			19,243
General and administrative expenses		191,135			26,517			8,506			22,471			248,629
Impairment of intangibles and other		1,245			–			28			–			1,273
Operating income		50,322			7,429			1,776			6,816			66,343
Interest expense		(1,819	)		(253	)		(23	)		(207	)		(2,302	)
Non-operating income		397			38			3			19			457
Income before income taxes and noncontrolling interest		48,900			7,214			1,756			6,628			64,498
Income tax expense		17,173			2,541			787			2,347			22,848
Net income		31,727			4,673			969			4,281			41,650
Less net income attributable to noncontrolling interest		7,424			1,077			(144	)		958			9,315
Net income attributable to LHC Group, Inc.'s common stockholders	$	24,303		$	3,596		$	1,113		$	3,323		$	32,335
Total assets	$	394,392		$	101,641		$	31,235		$	38,786		$	566,054

	Year Ended December 31, 2014
	Home  Health Services			Hospice Services			Community- Based Services			Facility- Based  Services			Total
Net service revenue	$	564,966		$	67,621		$	27,698		$	73,347		$	733,632
Cost of service revenue		329,856			39,804			19,611			45,504			434,775
Provision for bad debts		13,072			909			873			926			15,780
General and administrative expenses		187,281			18,882			6,551			21,231			233,945
Impairment of intangibles  and other		3,269			202			–			175			3,646
Operating income		31,488			7,824			663			5,511			45,486
Interest expense		(1,969	)		(249	)		(19	)		(249	)		(2,486	)
Non-operating income		201			43			2			19			265
Income before income taxes and noncontrolling interest		29,720			7,618			646			5,281			43,265
Income tax expense		10,999			1,955			105			1,454			14,513
Net income		18,721			5,663			541			3,827			28,752
Less net income attributable to noncontrolling interest		5,121			1,122			(36	)		708			6,915
Net income attributable to LHC Group, Inc.'s common stockholders	$	13,600		$	4,541		$	577		$	3,119		$	21,837
Total assets	$	386,511		$	34,847		$	34,027		$	36,354		$	491,739

LHC GROUP, INC. AND SUBSIDIARIES
SELECT CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA
(Unaudited)
	Three Months Ended December 31,						Year Ended December 31,
		2015			2014			2015			2014
Key Data:
Home-Health Services:
Locations		283			277			283			277
Acquired		4			2			9			40
De novo		–			–			–			3
Divested/Consolidated		(3	)		(11	)		(6	)		(22	)
Total new admissions		36,249			34,329			143,197			133,054
Medicare new admissions		24,060			23,404			96,911			90,490
Average daily census		37,060			36,153			36,752			35,299
Average Medicare daily census		27,432			26,781			27,297			26,336
Medicare completed and billed episodes		48,636			46,726			191,208			182,896
Average Medicare case mix for completed and billed Medicare episodes		1.02			1.01			0.99			0.99
Average reimbursement per completed and billed Medicare episodes	$	2,508		$	2,445		$	2,475		$	2,397
Total visits		1,088,846			1,012,677			4,183,204			3,911,293
Total Medicare visits		804,537			750,924			3,107,029			2,912,440
Average visits per completed and billed Medicare episodes		16.5			16.1			16.1			15.9
Organic growth:(1)
Net revenue		5.9	%		2.0	%		4.5	%		1.4	%
Net Medicare revenue		5.5	%		-0.8	%		3.5	%		-0.4	%
Total new admissions		4.0	%		4.5	%		3.4	%		1.6	%
Medicare new admissions		1.5	%		3.0	%		2.4	%		1.2	%
Average daily census		0.9	%		-0.7	%		0.1	%		-3.5	%
Average Medicare daily census		0.9	%		-3.1	%		-0.5	%		-4.1	%
Medicare completed and billed episodes		3.2	%		-1.2	%		1.4	%		0.9	%
Community-Based Services:
Locations		13			12			13			12
Acquired		–			–			2			6
De novo		–			–			–			–
Divested/Consolidated		–			(1	)		(1	)		(1	)
Average daily census		1,423			1,240			1,124			984
Billable hours		307,781			304,618			1,213,870			911,217
Revenue per billable hour	$	34.08		$	30.99		$	33.94		$	30.40
Hospice-Based Services:
Locations		56			38			56			38
Acquired		16			–			17			6
De novo		–			1			2			1
Divested/Consolidated		(2	)		1			(1	)		(3	)
Admissions		2,225			1,412			6,787			5,546
Average daily census		2,360			1,387			1,675			1,343
Patient days		217,157			127,633			611,493			490,252
Average revenue per patient day	$	144		$	143		$	141		$	138
Facility-Based Services:
Long-term Acute Care
Locations		8			8			8			8
Patient days		14,450			15,589			61,427			62,352
Average revenue per patient day	$	1,249		$	1,115		$	1,183		$	1,130

 ⁽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.

LHC GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP, INC.
(Amounts in thousands)
(Unaudited)
	Three Months Ended Dec. 31, 2015		Year Ended Dec. 31, 2015
Net income attributable to LHC Group, Inc.’s common stockholders	$	7,734	$	32,335
Add (net of tax):
Disposal costs on closures of underperforming locations (1)		657		657
Goodwill and intangible disposal costs (2)		605		749
Acquisition costs (3)		341		341
Adjusted net income attributable to LHC Group, Inc.’s common stockholders	$	9,337	$	34,082

RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP, INC. PER DILUTED SHARE
(Unaudited)
	Three Months Ended Dec. 31, 2015		Year Ended Dec. 31, 2015
Net income attributable to LHC Group, Inc.’s common stockholders per diluted share	$	0.44	$	1.84
Add:
Disposal costs on closures of underperforming locations (1)		0.04		0.04
Goodwill and intangible disposal costs (2)		0.03		0.04
Acquisition costs (3)		0.02		0.02
Adjusted net income attributable to LHC Group, Inc.’s common stockholders per diluted share	$	0.53	$	1.94

⁽¹⁾ Disposal costs related to the closures of underperforming locations
⁽²⁾ Goodwill and intangible disposal costs related to closures of underperforming locations and indefinite-lived intangible impairment related to write down of the assets.
⁽³⁾ Cost associated with Halcyon and Nurses Registry acquisitions.

Contact:
Eric Elliott
Senior Vice President of Finance
(337) 233-1307
eric.elliott@lhcgroup.com