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| 8-K - FORM 8-K FILING DOCUMENT - LHC Group, Inc | document.htm |
EXHIBIT 99.1
LHC Group Announces First Quarter 2013 Results
LAFAYETTE, La., May 8, 2013 (GLOBE NEWSWIRE) -- LHC Group Inc. (Nasdaq:LHCG), a national provider of post-acute care services, today announced its financial results for the three months ended March 31, 2013.
Financial Results for the First Quarter
- Net service revenue for the first quarter of 2013 was $162.0 million, compared with $158.8 million for the same period in 2012.
- Net income attributable to LHC Group for the first quarter of 2013 was $6.3 million, compared with $7.7 million in the prior year quarter.
- Diluted earnings per share was $0.37 for the first quarter of 2013, compared with $0.42 for the same period in 2012.
- Organic growth in new home health admissions in the first quarter of 2013 was 3.7% compared with the same period in 2012.
In commenting on the results, Keith G. Myers, chief executive officer of LHC Group, said, "I am extremely proud of the strong and well-balanced operating results our team delivered during the first quarter. I am particularly proud of our ability to once again achieve a solid organic growth rate in total new admissions of 3.7% over the first quarter of 2012. I would like to congratulate and thank our 8,500 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. Because of our team's dedication to clinical excellence and compassion for those we serve, we have experienced positive organic growth in total new admissions for 18 consecutive quarters dating back to 2008."
Guidance
The company is reaffirming its full year 2013 guidance issued on March 6, 2013, for net service revenue of $660 million to $680 million and fully diluted earnings per share in the range of $1.10 to $1.30. This guidance includes the impact of sequestration, as well as the impact of the recently announced acquisition of the home health service line of Addus HomeCare Corp. This guidance, however, does not take into account the impact of other 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 Thursday, May 9, 2013, at 11 a.m. Eastern time to discuss its first quarter 2013 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, May 16, 2013, by dialing (855) 859‑2056 (international callers should call (404) 537-3406) and entering confirmation number 31667703. 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 care, providing quality, cost-effective health care 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, hospice and community-based service agencies 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, 2012, 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) | ||
|
March 31, 2013 |
Dec. 31, 2012 |
|
| ASSETS | ||
| Current assets: | ||
| Cash | $ 3,404 | $ 9,720 |
| Receivables: | ||
| Patient accounts receivable, less allowance for uncollectible accounts of $12,917 and $11,863, respectively | 81,238 | 83,951 |
| Other receivables | 622 | 589 |
| Amounts due from governmental entities | 1,237 | 1,596 |
| Total receivables, net | 83,097 | 86,136 |
| Deferred income taxes | 9,283 | 7,671 |
| Prepaid income taxes | 3,733 | 7,436 |
| Prepaid expenses | 6,573 | 6,818 |
| Other current assets | 3,893 | 2,949 |
| Total current assets | 109,983 | 120,730 |
| Property, building and equipment, net of accumulated depreciation of $35,947 and $34,331, respectively | 29,037 | 29,531 |
| Goodwill | 189,153 | 169,150 |
| Intangible assets, net of accumulated amortization of $3,113 and $2,985, respectively | 61,328 | 62,042 |
| Other assets | 5,406 | 5,441 |
| Total assets | $ 394,907 | $ 386,894 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and other accrued liabilities | $ 17,647 | $ 14,897 |
| Salaries, wages and benefits payable | 23,581 | 29,890 |
| Self insurance reserve | 6,170 | 5,444 |
| Amounts due to governmental entities | 4,301 | 4,979 |
| Total current liabilities | 51,699 | 55,210 |
| Deferred income taxes | 27,587 | 25,129 |
| Income tax payable | 3,415 | 3,415 |
| Revolving credit facility | 22,996 | 19,500 |
| Note payable | 201 | – |
| Total liabilities | 105,898 | 103,254 |
| Noncontrolling interest- redeemable | 11,791 | 11,426 |
| Stockholders' equity: | ||
| Common stock – $0.01 par value: 40,000,000 shares authorized; 21,727,657 and 21,578,772 shares issued in 2013 and 2012, respectively | 217 | 216 |
| Treasury stock – 4,681,930 and 4,653,039 shares at cost, respectively | (34,453) | (33,846) |
| Additional paid-in capital | 101,346 | 100,619 |
| Retained earnings | 207,478 | 201,192 |
| Total LHC Group Inc. stockholders' equity | 274,588 | 268,181 |
| Noncontrolling interest- non-redeemable | 2,630 | 4,033 |
| Total equity | 277,218 | 272,214 |
| Total liabilities and stockholders' equity | $ 394,907 | $ 386,894 |
| LHC GROUP INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF INCOME | ||
| (amounts in thousands, except share and per share data) | ||
| (unaudited) | ||
|
Three Months Ended March 31, |
||
| 2013 | 2012 | |
| Net service revenue | $ 161,953 | $ 158,761 |
| Cost of service revenue | 93,248 | 89,859 |
| Gross margin | 68,705 | 68,902 |
| Provision for bad debts | 3,917 | 2,761 |
| General and administrative expenses | 51,623 | 50,882 |
| Operating income | 13,165 | 15,259 |
| Interest expense | (425) | (359) |
| Non-operating income | 65 | 65 |
| Income from continuing operations before income taxes and noncontrolling interest | 12,805 | 14,965 |
| Income tax expense | 4,536 | 5,226 |
| Net income | 8,269 | 9,739 |
| Less net income attributable to noncontrolling interest | 1,983 | 1,998 |
| Net income attributable to LHC Group, Inc.'s common stockholders | $ 6,286 | $ 7,741 |
| Earnings per share – basic and diluted: | ||
| Net income attributable to LHC Group, Inc.'s common stockholders | $ 0.37 | $ 0.42 |
| Weighted average shares outstanding: | ||
| Basic | 16,966,525 | 18,333,838 |
| Diluted | 17,073,543 | 18,399,608 |
| LHC GROUP INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (amounts in thousands) | ||
| (unaudited) | ||
|
Three Months Ended March 31, |
||
| 2013 | 2012 | |
| Operating activities | ||
| Net income | $ 8,269 | $ 9,739 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization expense | 1,830 | 1,919 |
| Provision for bad debts | 3,917 | 2,761 |
| Stock based compensation expense | 888 | 1,408 |
| Deferred income taxes | 846 | (353) |
| Loss on sale of assets | 14 | – |
| Changes in operating assets and liabilities, net of acquisitions: | ||
| Receivables | (1,237) | (3,774) |
| Prepaid expenses and other assets | (664) | 1,200 |
| Prepaid income taxes | 3,703 | 18,349 |
| Accounts payable and accrued expenses | (3,178) | (5,484) |
| Net amounts due to/from governmental entities | (319) | (180) |
| Net cash provided by operating activities | 14,069 | 25,585 |
| Investing activities | ||
| Purchases of property, building, and equipment | (1,151) | (1,160) |
| Cash paid for acquisitions, primarily goodwill and intangible assets | (19,655) | (1,700) |
| Net cash used in investing activities | (20,806) | (2,860) |
| Financing activities | ||
| Proceeds from line of credit | 41,500 | 26,879 |
| Payments on line of credit | (38,004) | (47,486) |
| Proceeds from Employee stock purchase plan | 179 | 189 |
| Proceeds from debt issuance | 201 | – |
| Noncontrolling interest distributions | (2,509) | (2,302) |
| Excess tax benefits from vesting of restricted stock | 11 | – |
| Redemption of treasury shares | (607) | – |
| Purchase of additional controlling interest | (350) | – |
| Sale of noncontrolling interest | – | 80 |
| Net cash provided by (used in) financing activities | 421 | (22,640) |
| Change in cash | (6,316) | 85 |
| Cash at beginning of period | 9,720 | 256 |
| Cash at end of period | $ 3,404 | $ 341 |
| Supplemental disclosures of cash flow information | ||
| Interest paid | $ 425 | $ 359 |
| Income taxes paid | $ 10,337 | $ 243 |
| LHC GROUP INC. AND SUBSIDIARIES | |||
| SEGMENT INFORMATION | |||
| (amounts in thousands) | |||
| (unaudited) | |||
|
Three Months Ended March 31, 2013 |
|||
|
Home- Based Services |
Facility- Based Services |
Total |
|
| Net service revenue | $ 141,987 | $ 19,966 | $ 161,953 |
| Cost of service revenue | 81,590 | 11,658 | 93,248 |
| Provision for bad debts | 3,277 | 640 | 3,917 |
| General and administrative expenses | 46,172 | 5,451 | 51,623 |
| Operating income | 10,948 | 2,217 | 13,165 |
| Interest expense | (387) | (38) | (425) |
| Non-operating income | 41 | 24 | 65 |
| Income before income taxes and noncontrolling interest | 10,602 | 2,203 | 12,805 |
| Income tax expense | 4,087 | 449 | 4,536 |
| Net income | 6,515 | 1,754 | 8,269 |
| Less net income attributable to noncontrolling interest | 1,599 | 384 | 1,983 |
| Net income attributable to LHC Group, Inc.'s common stockholders | $ 4,916 | $ 1,370 | $ 6,286 |
| Total assets | $ 358,140 | $ 36,767 | $ 394,907 |
|
Three Months Ended March 31, 2012 |
|||
|
Home- Based Services |
Facility- Based Services |
Total |
|
| Net service revenue | $ 139,595 | $ 19,166 | $ 158,761 |
| Cost of service revenue | 79,061 | 10,798 | 89,859 |
| Provision for bad debts | 2,623 | 138 | 2,761 |
| General and administrative expenses | 45,226 | 5,656 | 50,882 |
| Operating income | 12,685 | 2,574 | 15,259 |
| Interest expense | (323) | (36) | (359) |
| Non-operating income | 53 | 12 | 65 |
| Income before income taxes and noncontrolling interest | 12,415 | 2,550 | 14,965 |
| Income tax expense | 4,731 | 495 | 5,226 |
| Net income | 7,684 | 2,055 | 9,739 |
| Less net income attributable to noncontrolling interest | 1,692 | 306 | 1,998 |
| Net income attributable to LHC Group, Inc.'s common stockholders | $ 5,992 | $ 1,749 | $ 7,741 |
| Total assets | $ 345,287 | $ 34,761 | $ 380,048 |
| LHC GROUP INC. AND SUBSIDIARIES | ||
| SELECT CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA | ||
| (unaudited) | ||
|
Three Months Ended March 31, |
||
| 2013 | 2012 | |
| Key Data: | ||
| Home-Based Services: | ||
| Home Health | ||
| Locations | 251 | 246 |
| Acquired | 19 | 0 |
| De novo | 0 | 1 |
| Total new admissions | 30,214 | 27,696 |
| Medicare new admissions | 20,527 | 19,046 |
| Average daily census | 35,481 | 32,608 |
| Average Medicare daily census | 26,890 | 24,689 |
| Medicare completed and billed episodes | 42,808 | 41,287 |
| Average Medicare case mix for completed and billed Medicare episodes | 1.26 | 1.26 |
| Average reimbursement per completed and billed Medicare episodes | $ 2,297 | $ 2,345 |
| Total visits | 859,498 | 898,377 |
| Total Medicare visits | 653,796 | 658,566 |
| Average visits per completed and billed Medicare episodes | 15.3 | 16.0 |
| Organic growth: (1) | ||
| Net revenue | -2.9% | -2.9% |
| Net Medicare revenue | -2.1% | -6.1% |
| Total new admissions | 3.7% | 5.6% |
| Medicare new admissions | 3.2% | 2.1% |
| Average daily census | 1.7% | -6.0% |
| Average Medicare daily census | 1.5% | -7.7% |
| Medicare completed and billed episodes | 0.6% | -1.9% |
| Hospice | ||
| Locations | 33 | 32 |
| Acquired | 1 | 0 |
| Admissions | 1,380 | 1,109 |
| Average daily census | 1,148 | 934 |
| Patient days | 96,385 | 84,964 |
| Average revenue per patient day | $ 139 | $ 139 |
| Facility-Based Services: | ||
| Long-term Acute Care | ||
| Locations | 9 | 9 |
| Patient days | 16,118 | 16,191 |
| Average revenue per patient day | $ 1,194 | $ 1,156 |
|
(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