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| 8-K - FORM 8-K FILING DOCUMENT - LHC Group, Inc | document.htm |
EXHIBIT 99.1
LHC Group Announces Fourth Quarter and Full-Year 2011 Results
Highlights:
- Net service revenue was $157.7 million for the fourth quarter of 2011 and $633.9 million for full-year 2011; and
- Diluted earnings per share was $0.39 for the fourth quarter of 2011 and the diluted loss per share was $0.73 for full-year 2011.
LAFAYETTE, La., Feb. 29, 2012 (GLOBE NEWSWIRE) -- LHC Group Inc. (Nasdaq:LHCG), a national provider of post-acute care services, announced today its financial results for the three months and year ended December 31, 2011.
Financial Results for the Fourth Quarter
- Net service revenue for the fourth quarter of 2011 decreased to $157.7 million compared with $167.1 million for the same period in 2010.
- Net income attributable to LHC Group for the fourth quarter of 2011 decreased to $7.2 million compared with $11.4 million for the same period in 2010.
- Diluted earnings per share was $0.39 for the fourth quarter of 2011 compared with $0.63 for the same period in 2010.
Financial Results for the Year
- Net service revenue for the year ended December 31, 2011, increased to $633.9 million compared with $631.6 million for the same period in 2010.
- The Company reported a net loss attributable to LHC Group for the year ended December 31, 2011, of $13.2 million compared with net income of $48.8 million for the same period in 2010. Net loss attributable to LHC Group for 2011 included $68.1 million, or $45 million net of tax, in fees and legal expense associated with the previously announced settlement agreement with the government in the third quarter of 2011.
- Loss per share was $0.73 for the year ended December 31, 2011, compared with diluted earnings per share of $2.68 for the same period in 2010. The $0.73 loss per share included the aforementioned $68.1 million, or $45 million net of tax, in expenses related to the Company's previously announced legal settlement.
In commenting on the results, Keith G. Myers, Chief Executive Officer of LHC Group, said, "We're pleased with our fourth-quarter operating results and are proud of the resiliency and dedication exhibited by our company in 2011. I congratulate and thank our team members for their unwavering commitment to excellence and for consistently delivering the highest quality of care to the growing number of patients, families and communities we serve.
"As we look forward to the next chapter in our company's story, we're well positioned to take advantage of future internal and external growth opportunities. We've made the investments necessary to capitalize on the consolidation and growth opportunities that lie ahead for high-quality, post-acute healthcare providers. Our unique joint venture strategy positions our company, as well as our existing and future hospital partners, to be at the forefront of change as our country moves toward a more integrated healthcare delivery system. A perfect example of this is our new joint venture, announced earlier today, with Alabama-based Baptist Health System."
Guidance
The Company is reaffirming its full year 2012 guidance issued on January 4, 2012, for net service revenue of $640 million to $660 million and fully diluted earnings per share in the range of $1.45 to $1.65. This guidance does not take into account the impact of any future acquisitions or share repurchases, if made, de novo locations, if opened, future reimbursement changes, if any, future legal or other expenses associated with the Company's ongoing investigations or costs associated with its previously announced review of strategic alternatives.
Conference Call
LHC Group will host a conference call on Thursday, March 1, 2012, at 11:00 a.m. Eastern time to discuss its fourth quarter and year-end 2011 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 8, 2012, by dialing (855) 859-2056 (international callers should call 404-537-3406) and entering confirmation number 43655941. 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 home health and hospice services, 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 private duty 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, 2010, 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) | ||
|
Dec. 31, 2011 |
Dec. 31, 2010 |
|
| ASSETS | ||
| Current assets: | ||
| Cash | $ 256 | $ 288 |
| Receivables: | ||
| Patient accounts receivable, less allowance for uncollectible accounts of $10,692 and $9,769, respectively | 91,183 | 79,939 |
| Other receivables | 1,636 | 5,210 |
| Amounts due from governmental entities | 315 | 429 |
| Total receivables, net | 93,134 | 85,578 |
| Deferred income taxes | 7,269 | 5,941 |
| Prepaid income taxes | 26,667 | 5,326 |
| Prepaid expenses | 6,576 | 6,573 |
| Other current assets | 4,363 | 3,442 |
| Total current assets | 138,265 | 107,148 |
| Property, building and equipment, net of accumulated depreciation of $28,073 and $21,693, respectively | 28,182 | 26,862 |
| Goodwill | 164,731 | 157,338 |
| Intangible assets, net of accumulated amortization of $2,325 and $1,499, respectively | 59,389 | 54,051 |
| Advance payment on acquisitions | – | 6,947 |
| Other assets | 5,809 | 4,959 |
| Total assets | $ 396,376 | $ 357,305 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and other accrued liabilities | $ 23,119 | $ 21,017 |
| Salaries, wages and benefits payable | 25,571 | 23,112 |
| Self insurance payable | 5,612 | 4,177 |
| Amounts due to governmental entities | 3,234 | 3,159 |
| Total current liabilities | 57,536 | 51,465 |
| Deferred income taxes | 22,523 | 16,817 |
| Income tax payable | 3,415 | – |
| Revolving credit facility | 34,820 | – |
| Total liabilities | 118,294 | 68,282 |
| Noncontrolling interest- redeemable | 11,348 | 13,535 |
| Stockholders' equity: | ||
| Common stock – $0.01 par value: 40,000,000 shares authorized; 21,374,264 and 21,180,286 shares issued and 18,298,659 and 18,172,022 shares outstanding, respectively | 183 | 181 |
| Treasury stock – 3,075,605 and 3,008,264 shares at cost, respectively | (6,216) | (4,453) |
| Additional paid-in capital | 95,964 | 91,017 |
| Retained earnings | 173,752 | 186,996 |
| Total LHC Group Inc. stockholders' equity | 263,683 | 273,741 |
| Noncontrolling interest- non-redeemable | 3,051 | 1,747 |
| Total equity | 266,734 | 275,488 |
| Total liabilities and stockholders' equity | $ 396,376 | $ 357,305 |
| LHC GROUP INC. AND SUBSIDIARIES | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (amounts in thousands, except share and per share data) | ||||
| (unaudited) | ||||
|
Three Months Ended December 31, |
Year Ended December 31, |
|||
| 2011 | 2010 | 2011 | 2010 | |
| Net service revenue | $ 157,676 | $ 167,092 | $ 633,872 | $ 631,567 |
| Cost of service revenue | 89,359 | 86,569 | 352,346 | 326,521 |
| Gross margin | 68,317 | 80,523 | 281,526 | 305,046 |
| Provision for bad debts | 3,417 | 2,307 | 12,320 | 7,607 |
| Settlement with government agencies | – | – | 65,000 | – |
| General and administrative expenses | 50,737 | 55,329 | 210,588 | 201,837 |
| Operating income (loss) | 14,163 | 22,887 | (6,382) | 95,602 |
| Interest expense | (511) | (51) | (1,018) | (134) |
| Gain (loss) on the sale of assets and entities | 54 | – | 59 | (7) |
| Non-operating income | 154 | 93 | 1,722 | 812 |
| Income (loss) before income taxes and noncontrolling interest | 13,860 | 22,929 | (5,619) | 96,273 |
| Income tax expense (benefit) | 4,452 | 7,606 | (1,968) | 31,727 |
| Net income (loss) | 9,408 | 15,323 | (3,651) | 64,546 |
| Less net income attributable to noncontrolling interest | 2,174 | 3,879 | 9,593 | 15,787 |
| Net income (loss) attributable to LHC Group Inc. | 7,234 | 11,444 | (13,244) | 48,759 |
| Redeemable noncontrolling interest | – | – | – | 41 |
| Net income (loss) attributable to LHC Group Inc.'s common stockholders | $ 7,234 | $ 11,444 | $ (13,244) | $ 48,800 |
| Earnings per share – basic: | ||||
| Net Income (loss) attributable to LHC Group Inc. | $ 0.40 | $ 0.63 | $ (0.73) | $ 2.69 |
| Redeemable noncontrolling interest | – | – | – | – |
| Net income (loss) attributable to LHC Group Inc.'s common stockholders | $ 0.40 | $ 0.63 | $ (0.73) | $ 2.69 |
| Earnings per share – diluted: | ||||
| Net Income (loss) attributable to LHC Group Inc. | $ 0.39 | $ 0.63 | $ (0.73) | $ 2.68 |
| Redeemable noncontrolling interest | – | – | – | – |
| Net income (loss) attributable to LHC Group Inc.'s common stockholders | $ 0.39 | $ 0.63 | $ (0.73) | $ 2.68 |
| Weighted average shares outstanding: | ||||
| Basic | 18,296,062 | 18,166,586 | 18,265,118 | 18,119,183 |
| Diluted | 18,353,505 | 18,294,369 | 18,265,118 | 18,226,091 |
| LHC GROUP INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (amounts in thousands) | ||
| (unaudited) | ||
|
Year Ended December 31, |
||
| 2011 | 2010 | |
| Operating activities | ||
| Net income (loss) | $ (3,651) | $ 64,546 |
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
| Depreciation and amortization expense | 7,521 | 7,496 |
| Provision for bad debts | 12,320 | 7,607 |
| Stock-based compensation expense | 4,092 | 3,742 |
| Deferred income taxes | 4,378 | 2,771 |
| Changes in operating assets and liabilities, net of acquisitions: | ||
| Receivables | (21,024) | (16,195) |
| Prepaid expenses, other assets | 6,247 | (4,513) |
| Prepaid taxes | (17,926) | – |
| Accounts payable and accrued expenses | 4,478 | 5,777 |
| Net amounts due to/from governmental entities | 189 | 706 |
| Net cash (used in) provided by operating activities | (3,376) | 71,937 |
| Investing activities | ||
| Purchases of property, building, and equipment | (7,945) | (11,586) |
| Cash paid for acquisitions, primarily goodwill and intangible assets and advance payment on acquisitions | (11,680) | (31,747) |
| Net cash used in investing activities | (19,625) | (43,333) |
| Financing activities | ||
| Proceeds from line of credit | 142,995 | 9,023 |
| Payments on line of credit | (108,175) | (14,746) |
| Principal payments on debt | – | (4,483) |
| Payment of deferred financing fees | – | (498) |
| Payments on capital leases | (14) | (31) |
| Payment of contingent consideration | – | (1,726) |
| Excess tax benefits from vesting of restricted stock | 320 | 476 |
| Proceeds from exercise of stock options | – | 74 |
| Proceeds from employee stock purchase plan | 860 | 781 |
| Noncontrolling interest distributions | (11,857) | (15,666) |
| Payments on repurchase of common stock | (577) | – |
| Purchase of additional controlling interest | (891) | (1,914) |
| Sale of noncontrolling interest | 308 | – |
| Net cash (used in) provided by financing activities | 22,969 | (28,710) |
| Change in cash | (32) | (106) |
| Cash at beginning of period | 288 | 394 |
| Cash at end of period | $ 256 | $ 288 |
| Supplemental disclosures of cash flow information | ||
| Interest paid | $ 1,018 | $ 134 |
| Income taxes paid | $ 11,363 | $ 30,605 |
| LHC GROUP INC. AND SUBSIDIARIES | ||||||
| SEGMENT INFORMATION | ||||||
| (amounts in thousands) | ||||||
| (unaudited) | ||||||
|
Three Months Ended December 31, 2011 |
Year Ended December 31, 2011 |
|||||
|
Home- Based Services |
Facility- Based Services |
Total |
Home- Based Services |
Facility- Based Services |
Total |
|
| Net service revenue | $139,167 | $18,509 | $157,676 | $557,901 | $75,971 | $633,872 |
| Cost of service revenue | 78,591 | 10,768 | 89,359 | 307,744 | 44,602 | 352,346 |
| Provision for bad debts | 3,178 | 239 | 3,417 | 11,680 | 640 | 12,320 |
| Settlement with government agencies | – | – | – | 65,000 | – | 65,000 |
| General and administrative expenses | 45,222 | 5,515 | 50,737 | 190,264 | 20,324 | 210,588 |
| Operating income (loss) | 12,176 | 1,987 | 14,163 | (16,787) | 10,405 | (6,382) |
| Interest expense | (458) | (53) | (511) | (914) | (104) | (1,018) |
| Non-operating income, including gain on sale of assets | 129 | 79 | 208 | 1,645 | 136 | 1,781 |
| Income (loss) before income taxes and noncontrolling interest | 11,847 | 2,013 | 13,860 | (16,056) | 10,437 | (5,619) |
| Income tax expense (benefit) | 3,710 | 742 | 4,452 | (4,201) | 2,233 | (1,968) |
| Net income (loss) | 8,137 | 1,271 | 9,408 | (11,855) | 8,204 | (3,651) |
| Noncontrolling interest | 2,000 | 174 | 2,174 | 8,404 | 1,189 | 9,593 |
| Net income (loss) attributable to LHC Group Inc. | $ 6,137 | $ 1,097 | $ 7,234 | $ (20,259) | $ 7,015 | $ (13,244) |
| Total assets | $ 360,340 | $ 36,036 | $ 396,376 | $ 360,340 | $ 36,036 | $ 396,376 |
|
Three Months Ended December 31, 2010 |
Year Ended December 31, 2010 |
|||||
|
Home- Based Services |
Facility- Based Services |
Total |
Home- Based Services |
Facility- Based Services |
Total |
|
| Net service revenue | $146,586 | $20,506 | $167,092 | $555,110 | $76,457 | $631,567 |
| Cost of service revenue | 73,944 | 12,625 | 86,569 | 281,013 | 45,508 | 326,521 |
| Provision for bad debts | 1,937 | 370 | 2,307 | 7,078 | 529 | 7,607 |
| General and administrative expenses | 49,797 | 5,532 | 55,329 | 182,750 | 19,087 | 201,837 |
| Operating income | 20,908 | 1,979 | 22,887 | 84,269 | 11,333 | 95,602 |
| Interest expense | (41) | (10) | (51) | (116) | (18) | (134) |
| Non-operating income, including gain on sale of assets | 83 | 10 | 93 | 746 | 59 | 805 |
| Income before income taxes and noncontrolling interest | 20,950 | 1,979 | 22,929 | 84,899 | 11,374 | 96,273 |
| Income tax expense | 6,841 | 765 | 7,606 | 28,613 | 3,114 | 31,727 |
| Net income | 14,109 | 1,214 | 15,323 | 56,286 | 8,260 | 64,546 |
| Noncontrolling interest | 3,548 | 331 | 3,879 | 14,170 | 1,617 | 15,787 |
| Net income attributable to LHC Group Inc. | $10,561 | $883 | $11,444 | $42,116 | $6,643 | $48,759 |
| Total assets | $319,447 | $37,858 | $357,305 | $319,447 | $37,858 | $357,305 |
| LHC GROUP INC. AND SUBSIDIARIES | ||||
| SELECT CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA | ||||
| (unaudited) | ||||
|
Three Months Ended December 31, |
Year Ended December 31, |
|||
| 2011 | 2010 | 2011 | 2010 | |
| Key Data: | ||||
| Home-Based Services: | ||||
| Home Health | ||||
| Locations | 247 | 257 | 247 | 257 |
| Acquired | 0 | 3 | 5 | 20 |
| De novo | 3 | 4 | 6 | 12 |
| Total new admissions | 25,410 | 24,612 | 102,326 | 92,764 |
| Medicare new admissions | 17,803 | 17,200 | 72,260 | 66,826 |
| Average weekly census | 31,692 | 34,030 | 32,165 | 32,375 |
| Average Medicare weekly census | 24,301 | 26,336 | 24,899 | 25,541 |
| Medicare completed and billed episodes | 41,391 | 44,745 | 169,189 | 166,803 |
| Average Medicare case mix for completed and billed Medicare episodes | 1.26 | 1.27 | 1.25 | 1.27 |
| Average reimbursement per completed and billed Medicare episodes | $ 2,383 | $ 2,457 | $ 2,357 | $ 2,531 |
| Total visits | 845,709 | 902,346 | 3,471,752 | 3,412,114 |
| Total Medicare visits | 624,682 | 683,605 | 2,602,347 | 2,632,269 |
| Average visits per completed and billed Medicare episodes | 15.1 | 15.3 | 15.4 | 15.8 |
| Organic growth (1): | ||||
| Net revenue | -7.9% | 11.4% | -2.5% | 12.6% |
| Net Medicare revenue | -8.6% | 10.2% | -4.3% | 11.4% |
| Total new admissions | 0.9% | 11.5% | 7.5% | 13.1% |
| Medicare new admissions | 1.0% | 8.0% | 5.4% | 13.5% |
| Average weekly census | -8.6% | 6.2% | -2.3% | 4.5% |
| Average Medicare weekly census | -9.5% | 5.4% | -4.1% | 4.6% |
| Medicare completed and billed episodes | -9.0% | 12.9% | -0.1% | 8.6% |
| Hospice | ||||
| Locations | 32 | 26 | 32 | 26 |
| Acquired | 0 | 0 | 8 | 6 |
| Admissions | 972 | 770 | 3,997 | 2,924 |
| Average Daily Census | 905 | 670 | 897 | 622 |
| Patient Days | 83,233 | 61,675 | 327,313 | 226,860 |
| Average revenue per patient day | $ 137 | $ 136 | $ 136 | $ 136 |
| Facility-Based Services: | ||||
| Long-term Acute Care | ||||
| Locations | 9 | 9 | 9 | 9 |
| Patient days | 15,953 | 16,979 | 61,939 | 61,658 |
| Patient acuity mix | 1.03 | 1.02 | 1.03 | 1.02 |
| Average revenue per patient day | $ 1,129 | $ 1,128 | $ 1,168 | $ 1,148 |
| (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