Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K FILING DOCUMENT - LHC Group, Inc | document.htm |
EXHIBIT 99.1
LHC Group Announces Fourth Quarter and Full-Year 2012 Results
LAFAYETTE, La., March 6, 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 and year ended December 31, 2012.
Financial Results for the Fourth Quarter
- Net service revenue for the fourth quarter of 2012 was $161.8 million, compared with $157.7 million for the same period in 2011.
- Net income attributable to LHC Group for the fourth quarter of 2012 was $7.4 million, compared with $7.2 million for the same period in 2011.
- Diluted earnings per share was $0.43 for the fourth quarter of 2012, compared with $0.39 for the same period in 2011.
- Organic growth in new home health admissions was 5.6% for the fourth quarter of 2012.
Financial Results for the Year
- Net service revenue for the year ended December 31, 2012, was $637.6 million, compared with $633.9 million for the same period in 2011.
- Net income attributable to LHC Group for the year ended December 31, 2012, was $27.4 million, compared with a net loss attributable to LHC Group for year ended December 31, 2011, of $13.2 million, which included a $45 million after-tax charge related to fees and legal expense associated with the third quarter 2011 settlement agreement with the government.
- Diluted earnings per share was $1.53 for the year ended December 31, 2012, compared with a loss per share of $0.73, including the aforementioned third quarter 2011 settlement with the government, for the same period in 2011.
- Organic growth in new home health admissions was 5.1% for the year ended December 31, 2012.
In commenting on the results, Keith G. Myers, Chief Executive Officer of LHC Group, said, "We are pleased with our operating results and the overall performance of our company and our team in 2012. We ended the year with solid momentum in both volume growth and cost containment, while going through a strategic alternative process during the first half of the year and converting to a new point-of-care software system. Most importantly, our team of dedicated caregivers in communities throughout the country continues to provide the highest quality of care, day in and day out, to the patients, families and communities we serve. As we look ahead to the remainder of 2013 and beyond, we are well prepared and well positioned to continue increasing shareholder value by focusing on efficiencies while capitalizing on the opportunities we see ahead for both internal and external volume growth."
FY 2013 Guidance
Fiscal year net service revenue is expected to be in the range of $660 million to $680 million, and fully diluted earnings per share are expected to be in the range of $1.10 to $1.30. This guidance includes the negative impact of sequestration, which is an approximate $8.5 million reduction in Medicare revenue and $0.30 reduction in fully diluted earnings per share for the nine month period of April 1 to December 31, 2013. This guidance assumes that sequestration will affect the reimbursement on Medicare patients whose service dates end on and after April 1. This guidance also includes 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, March 7, 2013, at 11 a.m. Eastern time to discuss its fourth quarter and year-end 2012 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 14, 2013, by dialing (855) 859‑2056 (international callers should call 404-537-3406) and entering confirmation number 89678158. 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 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, 2011, 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, 2012 |
Dec. 31, 2011 |
|
| ASSETS | ||
| Current assets: | ||
| Cash | $ 9,720 | $ 256 |
| Receivables: | ||
| Patient accounts receivable, less allowance for uncollectible accounts of $11,863 and $10,692, respectively | 83,951 | 91,183 |
| Other receivables | 589 | 1,636 |
| Amounts due from governmental entities | 1,596 | 315 |
| Total receivables, net | 86,136 | 93,134 |
| Deferred income taxes | 7,671 | 7,269 |
| Prepaid income taxes | 7,436 | 26,667 |
| Prepaid expenses | 6,818 | 6,576 |
| Other current assets | 2,949 | 4,363 |
| Total current assets | 120,730 | 138,265 |
| Property, building and equipment, net of accumulated depreciation of $34,331 and $28,073, respectively | 29,531 | 28,182 |
| Goodwill | 169,150 | 164,731 |
| Intangible assets, net of accumulated amortization of $2,985 and $2,325, respectively | 62,042 | 59,389 |
| Other assets | 5,441 | 5,809 |
| Total assets | $ 386,894 | $ 396,376 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and other accrued liabilities | $ 14,897 | $ 23,119 |
| Salaries, wages and benefits payable | 29,890 | 25,571 |
| Self insurance payable | 5,444 | 5,612 |
| Amounts due to governmental entities | 4,979 | 3,234 |
| Total current liabilities | 55,210 | 57,536 |
| Deferred income taxes | 25,129 | 22,523 |
| Income tax payable | 3,415 | 3,415 |
| Revolving credit facility | 19,500 | 34,820 |
| Total liabilities | 103,254 | 118,294 |
| Noncontrolling interest- redeemable | 11,426 | 11,348 |
| Stockholders' equity: | ||
| Common stock – $0.01 par value: 40,000,000 shares authorized; 21,578,772 and 21,374,264 shares issued and 16,925,733 and 18,298,659 shares outstanding, respectively | 216 | 183 |
| Treasury stock – 4,653,039 and 3,075,605 shares at cost, respectively | (33,846) | (6,216) |
| Additional paid-in capital | 100,619 | 95,964 |
| Retained earnings | 201,192 | 173,752 |
| Total LHC Group Inc. stockholders' equity | 268,181 | 263,683 |
| Noncontrolling interest- non-redeemable | 4,033 | 3,051 |
| Total equity | 272,214 | 266,734 |
| Total liabilities and stockholders' equity | $ 386,894 | $ 396,376 |
|
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, |
|||
| 2012 | 2011 | 2012 | 2011 | |
| Net service revenue | $ 161,827 | $ 157,676 | $ 637,569 | $ 633,872 |
| Cost of service revenue | 92,441 | 89,359 | 365,752 | 352,346 |
| Gross margin | 69,386 | 68,317 | 271,817 | 281,526 |
| Provision for bad debts | 3,480 | 3,417 | 11,875 | 12,320 |
| General and administrative expenses | 50,674 | 50,737 | 205,637 | 210,588 |
| Settlement with government agencies | – | – | – | 65,000 |
| Operating income (loss) | 15,232 | 14,163 | 54,305 | (6,382) |
| Interest expense | (578) | (511) | (1,550) | (1,018) |
| Gain (loss) on the sale of assets and entities | (5) | 54 | (105) | 59 |
| Non-operating income | 81 | 154 | 289 | 1,722 |
| Income (loss) from continuing operations before income taxes and noncontrolling interest | 14,730 | 13,860 | 52,939 | (5,619) |
| Income tax expense (benefit) | 4,805 | 4,452 | 17,511 | (1,968) |
| Net income (loss) from continuing operations | 9,925 | 9,408 | 35,428 | (3,651) |
| Less net income attributable to noncontrolling interest | 2,525 | 2,174 | 7,988 | 9,593 |
| Net income (loss) attributable to LHC Group, Inc.'s common stockholders | $ 7,400 | $ 7,234 | $ 27,440 | $ (13,244) |
| Earnings per share – basic: | ||||
| Net income (loss) attributable to LHC Group, Inc.'s common stockholders | $ 0.43 | $ 0.40 | $ 1.54 | $ (0.73) |
| Earnings per share – diluted: | ||||
| Net income (loss) attributable to LHC Group, Inc.'s common stockholders | $ 0.43 | $ 0.39 | $ 1.53 | $ (0.73) |
| Weighted average shares outstanding: | ||||
| Basic | 17,056,611 | 18,296,062 | 17,853,321 | 18,265,118 |
| Diluted | 17,155,909 | 18,353,505 | 17,899,195 | 18,265,118 |
|
LHC GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) (unaudited) |
||
|
Year Ended December 31, |
||
| 2012 | 2011 | |
| Operating activities | ||
| Net income (loss) | $ 35,428 | $ (3,651) |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
| Depreciation and amortization expense | 7,806 | 7,521 |
| Provision for bad debts | 11,875 | 12,320 |
| Stock based compensation expense | 4,390 | 4,092 |
| Deferred income taxes | 2,204 | 4,378 |
| Loss on sale of assets | 105 | – |
| Other intangibles impairment change | 650 | – |
| Changes in operating assets and liabilities, net of acquisitions: | ||
| Receivables | (4,497) | (21,024) |
| Prepaid expenses, other assets | 1,780 | 6,247 |
| Prepaid income taxes | 18,855 | (17,926) |
| Accounts payable and accrued expenses | (4,288) | 4,478 |
| Net amounts due to/from governmental entities | 464 | 189 |
| Net cash provided by (used in) operating activities | 74,772 | (3,376) |
| Investing activities | ||
| Purchases of property, building, and equipment | (8,415) | (11,680) |
| Proceeds from sale of assets | 33 | – |
| Cash paid for acquisitions, primarily goodwill and intangible assets and advance payment on acquisitions | (6,758) | (7,945) |
| Net cash used in investing activities | (15,140) | (19,625) |
| Financing activities | ||
| Proceeds from line of credit | 188,561 | 142,995 |
| Payments on line of credit | (203,881) | (108,175) |
| Payments on capital leases | – | (14) |
| Excess tax benefits from vesting of restricted stock | – | 320 |
| Proceeds from issuance of common stock under Employee Stock Purchase Plan | 783 | 860 |
| Noncontrolling interest distributions | (8,444) | (11,857) |
| Purchase of additional controlling interest | (309) | (891) |
| Sale of noncontrolling interest | 80 | 308 |
| Repurchase of common stock | (26,958) | (577) |
| Net cash (used in) provided by financing activities | (50,168) | 22,969 |
| Change in cash | 9,464 | (32) |
| Cash at beginning of period | 256 | 288 |
| Cash at end of period | $ 9,720 | $ 256 |
| Supplemental disclosures of cash flow information | ||
| Interest paid | $ 1,550 | $ 1,018 |
| Income taxes paid | $ 8,645 | $ 11,363 |
|
LHC GROUP INC. AND SUBSIDIARIES SEGMENT INFORMATION (amounts in thousands) (unaudited) |
||||||
|
Three Months Ended December 31, 2012 |
Year Ended December 31, 2012 |
|||||
|
Home-Based Services |
Facility-Based Services |
Total |
Home-Based Services |
Facility-Based Services |
Total | |
| Net service revenue | $ 143,894 | $ 17,933 | $ 161,827 | $ 563,741 | $ 73,828 | $ 637,569 |
| Cost of service revenue | 81,842 | 10,599 | 92,441 | 322,189 | 43,563 | 365,752 |
| Provision for bad debts | 2,967 | 513 | 3,480 | 10,593 | 1,282 | 11,875 |
| General and administrative expenses | 45,573 | 5,101 | 50,674 | 184,125 | 21,512 | 205,637 |
| Operating income | 13,512 | 1,720 | 15,232 | 46,834 | 7,471 | 54,305 |
| Interest expense | (482) | (96) | (578) | (1,356) | (194) | (1,550) |
| Non-operating income, including gain on sale of assets | 56 | 20 | 76 | 133 | 51 | 184 |
| Income before income taxes and noncontrolling interest | 13,086 | 1,644 | 14,730 | 45,611 | 7,328 | 52,939 |
| Income tax expense | 3,979 | 826 | 4,805 | 15,457 | 2,054 | 17,511 |
| Net income | 9,107 | 818 | 9,925 | 30,154 | 5,274 | 35,428 |
| Noncontrolling interest | 2,138 | 387 | 2,525 | 6,964 | 1,024 | 7,988 |
| Net income attributable to LHC Group Inc. | $ 6,969 | $ 431 | $ 7,400 | $ 23,190 | $ 4,250 | $ 27,440 |
| Total assets | $ 349,740 | $ 37,154 | $ 386,894 | $ 349,740 | $ 37,154 | $ 386,894 |
|
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 |
| General and administrative expenses | 45,222 | 5,515 | 50,737 | 190,264 | 20,324 | 210,588 |
| Settlement with government agencies | – | – | – | 65,000 | – | 65,000 |
| 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 |
|
LHC GROUP INC. AND SUBSIDIARIES SELECT CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA (unaudited) |
||||
|
Three Months Ended December 31, |
Year Ended December 31, |
|||
| 2012 | 2011 | 2012 | 2011 | |
| Key Data: | ||||
| Home-Based Services: | ||||
| Home Health | ||||
| Locations | 232 | 247 | 232 | 247 |
| Acquired | 1 | 0 | 3 | 5 |
| De novo | 0 | 3 | 0 | 6 |
| Total new admissions | 27,443 | 25,410 | 108,938 | 102,326 |
| Medicare new admissions | 18,665 | 17,803 | 73,963 | 72,260 |
| Average daily census | 33,103 | 31,692 | 32,834 | 32,165 |
| Average Medicare daily census | 24,765 | 24,301 | 24,639 | 24,899 |
| Medicare completed and billed episodes | 41,563 | 41,391 | 167,029 | 169,189 |
| Average Medicare case mix for completed and billed Medicare episodes | 1.27 | 1.26 | 1.25 | 1.25 |
| Average reimbursement per completed and billed Medicare episodes | $ 2,374 | $ 2,383 | $ 2,336 | $ 2,357 |
| Total visits | 902,275 | 845,709 | 3,580,231 | 3,471,752 |
| Total Medicare visits | 660,289 | 624,682 | 2,609,218 | 2,602,347 |
| Average visits per completed and billed Medicare episodes | 15.9 | 15.1 | 16.0 | 15.4 |
| Organic growth (1): | ||||
| Net revenue | 1.3% | -7.9% | -0.5% | -2.5% |
| Net Medicare revenue | -1.3% | -8.6% | -3.7% | -4.3% |
| Total new admissions | 5.6% | 0.9% | 5.1% | 7.5% |
| Medicare new admissions | 3.3% | 1.0% | 1.5% | 5.4% |
| Average daily census | 3.3% | -8.6% | 1.6% | -2.3% |
| Average Medicare daily census | 1.2% | -9.5% | -1.3% | -4.1% |
| Medicare completed and billed episodes | -0.5% | -9.0% | -1.6% | -0.1% |
| Hospice | ||||
| Locations | 32 | 32 | 32 | 32 |
| Acquired | 0 | 0 | 0 | 8 |
| Admissions | 1,126 | 972 | 4,424 | 3,997 |
| Average Daily Census | 1,037 | 905 | 1,000 | 897 |
| Patient Days | 95,374 | 83,233 | 364,874 | 327,313 |
| Average revenue per patient day | $ 139 | $ 137 | $ 138 | $ 136 |
| Facility-Based Services: | ||||
| Long-term Acute Care | ||||
| Locations | 9 | 9 | 9 | 9 |
| Patient days | 15,552 | 15,953 | 62,900 | 61,939 |
| Patient acuity mix | 0.99 | 1.03 | 1.00 | 1.03 |
| Average revenue per patient day | $ 1,173 | $ 1,129 | $ 1,151 | $ 1,168 |
| (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