29.10.2008 21:30:00

LHC Group Announces Third Quarter 2008 Results

LHC Group, Inc. (NASDAQ: LHCG):

Third Quarter Highlights:

  • Net service revenue of $98.2 million;
  • Net income of $8.0 million; and
  • Diluted earnings per share of $0.45.

LHC Group, Inc. (NASDAQ: LHCG), one of the largest providers of home nursing services in the United States, announced today its financial results for the third quarter and nine months ended September 30, 2008.

The Company also announced that it will be hosting its 2nd annual Investor/Analyst Day to be held at the Nasdaq MarketSite in New York City on November 5, 2008, from 10:30 a.m. to 2:00 p.m. Eastern time. The presentation will include discussions by key-note speakers on corporate strategy, market factors and financial metrics followed by question and answer sessions.

Financial Results for the Third Quarter

  • Net service revenue for the third quarter of 2008, increased 26.7% to $98.2 million compared with $77.5 million in 2007.
  • Net income for the third quarter of 2008 totaled $8.0 million, or $0.45 per diluted share, compared with net income of $6.0 million, or $0.34 per diluted share, for the third quarter of 2007.
  • Internal growth (which is the combination of organic growth and internal growth on acquisitions) on Home-Based net service revenue and Medicare net service revenue for the third quarter of 2008 was 16.8% and 21.1%, respectively.
  • Internal growth on Home-Based average weekly census and Medicare average weekly census for the third quarter of 2008 was 13.1% and 21.5%, respectively.
  • Days sales outstanding, or DSO, for the three months ended September 30, 2008, was 52 days as compared with 69 days for the same three-month period in 2007.
  • DSO, when adjusted for unbilled accounts receivables from acquisitions on hold pending change of ownership processing by fiscal intermediaries, decreased to 49 days as compared with 64 days for the comparable period in 2007.

Financial Results for the Nine Months

  • Net service revenue for the nine months ended September 30, 2008, increased 25.4% to $271.8 million compared with $216.8 million in 2007.
  • Income from continuing operations for the nine months ended September 30, 2008, totaled $19.9 million, or $1.11 per diluted share, compared with income from continuing operations of $17.7 million, or $0.99 per diluted share, for the nine months ended September 30, 2007.
  • Net income for the nine months ended September 30, 2008, totaled $19.7 million, or $1.10 per diluted share, compared with net income of $16.8 million, or $0.94 per diluted share, for the nine months ended September 30, 2007.
  • Internal growth on Home-Based net service revenue and Medicare net service revenue for the nine months ended September 30, 2008, was 17.1% and 20.5%, respectively.
  • Internal growth on Home-Based average weekly census and Medicare average weekly census for the nine months ended September 30, 2008, was 9.4% and 16.0%, respectively.

In commenting on the results, Keith G. Myers, chief executive officer of LHC Group, said, "We are pleased to report another very strong quarter for the LHC Group family. By every measure, our third quarter results are the best in the history of our company. Our continued ability to deliver a strong return on equity was recently recognized once again when we were named #8 on the Forbes list of "Americas 200 Best Small Companies. This is the second year in a row that LHC Group has made the top 10. Although we are proud of the operating results this quarter and this most recent recognition from Forbes, we are most proud of the quality of care being delivered by our dedicated caregivers to the many patients, families and communities we serve each and every day.

Guidance

The Company also announced that it is increasing its guidance for full-year 2008 to revenues of $360 million to $380 million (previously $350 million to $370 million) and fully diluted earnings per share of $1.50 to $1.60 (previously $1.35 to $1.45). The guidance does not take into account any future acquisitions or de novo locations.

Conference Call

The live broadcast of LHC Groups conference call will begin at 11:00 a.m. Eastern time on Thursday, October 30, 2008. Speakers on the call will include Keith Myers, chief executive officer; John Indest, president and chief operating officer, and Pete Roman, senior vice president and chief financial officer. A link to the webcast can be found under the investor relations section of the Companys website, www.lhcgroup.com, or at www.earnings.com. A replay of the webcast will also be archived on LHC Groups website. A telephone replay will be available for one week by dialing (888) 286-8010 (US) or (617) 801-6888 (international) and entering the pass code 55054019.

About LHC Group, Inc.

LHC Group, Inc. is one of the largest providers of home nursing services in the United States providing quality cost effective healthcare services to patients within the comfort and privacy of their home or place of residence.

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by words such as "believe, "expect, "anticipate, "intend, "estimate or similar expressions. These forward-looking statements include, among other things, statements regarding our financial performance for 2008 and the impact that recent changes in reimbursement and our operations will have on our future results. Forward-looking statements involve a number of risks and uncertainties and there can be no assurance that any forward-looking statements will prove to be accurate. Important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include: changes in reimbursement, changes in government regulations, changes in our relationships with referral sources, increased competition for our services, increased competition for joint venture and acquisition candidates and changes in the interpretation of government regulations. LHC Group undertakes no obligation to update or revise any forward-looking statements. Further information regarding risks, uncertainties and other factors that could adversely affect LHC Group or cause actual results to differ materially from those anticipated in forward-looking statements are included in LHC Groups Form 10K for the year ended December 31, 2007, filed with the Securities and Exchange Commission.

LHC GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except share data)

   
Sept. 30,

2008

Dec. 31,

2007

(unaudited)
ASSETS
 
Current assets:
Cash $ 11,674 $ 1,155
Receivables:
Patient accounts receivable, less allowance for uncollectible accounts of $10,819 and $8,953, respectively 55,878 70,033
Other receivables 4,488 2,425
Amounts due from governmental entities   1,221     1,459  
Total receivables, net 61,587 73,917
Deferred income taxes 4,155 2,946
Prepaid expenses and other current assets 4,312 4,423
Assets held for sale   436     556  
Total current assets 82,164 82,997
Property, building and equipment, net 14,623 12,523
Goodwill 95,156 62,227
Intangible assets, net 18,784 14,055
Advance payments on acquisitions 2,800
Other assets   3,038     3,183  
Total assets $ 216,565   $ 174,985  
 
LIABILITIES AND STOCKHOLDERS EQUITY
 
Current liabilities:
Accounts payable and other accrued liabilities $ 8,648 $ 6,103
Salaries, wages and benefits payable 17,491 11,303
Amounts due to governmental entities 6,023 3,162
Income taxes payable 4,526 863
Current portion of capital lease obligations 77 88
Current portion of long-term debt   531     433  
Total current liabilities 37,296 21,952
Deferred income taxes, less current portion 4,949 3,243
Capital lease obligations 63
Long-term debt, less current portion 4,579 2,847
Minority interests subject to exchange contracts and/or put options 85 121
Other minority interests 3,914 3,388
Stockholders equity:
Common stock $0.01 par value: 40,000,000 shares authorized; 20,836,612 and 20,725,713 shares issued and 17,882,824 and 17,775,284 shares outstanding, respectively 179 177
Treasury stock 2,953,788 and 2,950,429 shares at cost, respectively (2,939 ) (2,866 )
Additional paid-in capital 84,684 81,983
Retained earnings   83,818     64,077  
Total stockholders equity   165,742     143,371  
Total liabilities and stockholders equity $ 216,565   $ 174,985  

LHC GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except share and per share data)

(unaudited)

   
Three Months Ended

September 30,

Nine Months Ended

September 30,

2008   2007 2008   2007
Net service revenue $ 98,166 $ 77,495 $ 271,755 $ 216,786
Cost of service revenue   47,977     39,979     135,432     110,676  
Gross margin 50,189 37,516 136,323 106,110
Provision for bad debts 3,158 2,230 10,467 6,109
General and administrative expenses   30,687     24,518     86,283     68,449  
Operating income 16,344 10,768 39,573 31,552
Interest expense (128 ) (96 ) (356 ) (273 )
Non-operating income   74     358     882     955  
Income from continuing operations before income taxes and minority interest allocations 16,290 11,030 40,099 32,234
Income tax expense 5,243 3,377 12,513 10,246
Minority interest   3,012     1,413     7,710     4,327  
Income from continuing operations 8,035 6,240 19,876 17,661

Loss from discontinued operations (net of income tax benefit of $2, $157, $110 and $539, respectively)

(3 ) (246 ) (171 ) (843 )

Gain on sale of discontinued operations (net of income taxes of $20 in the three and nine months ended September 30, 2007)

      31         31  
Net income 8,032 6,025 19,705 16,849
Redeemable minority interests   (29 )   57     36     213  
Net income available to common stockholders $ 8,003   $ 6,082   $ 19,741   $ 17,062  
 
Earnings per share basic and diluted:
Income from continuing operations $ 0.45 $ 0.35 $ 1.11 $ 0.99
Loss from discontinued operations, net       (0.01 )   (0.01 )   (0.05 )
Net income 0.45 0.34 1.10 0.94
Redeemable minority interests               0.01  
Net income available to common shareholders $ 0.45   $ 0.34   $ 1.10   $ 0.95  
 
Weighted average shares outstanding:
Basic 17,881,228 17,766,612 17,843,869 17,756,537
Diluted 18,001,397 17,794,072 17,978,038 17,823,237

LHC GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in thousands)

(unaudited)

 

 

  Nine Months Ended

September 30,

2008   2007
Operating activities
Net income $ 19,705 $ 16,849

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization expense 2,730 2,201
Provision for bad debts 10,820 7,291
Stock-based compensation expense 1,380 758
Minority interest in earnings of subsidiaries 7,395 3,932
Deferred income taxes 497 (678 )
Gain on sale of assets (343 )
Changes in operating assets and liabilities, net of acquisitions:
Receivables 1,199 (17,390 )
Prepaid income taxes 788 (519 )
Prepaid expenses and other assets (318 )
Accounts payable and accrued expenses 12,094

2,890

Net amounts due governmental entities   3,099     (61 )
Net cash provided by operating activities   59,364    

14,955

 
 
Investing activities
Purchases of property, building, and equipment (7,351 ) (2,634 )
Proceeds from sale of assets 3,094
Cash paid for acquisitions, primarily goodwill and intangible assets   (40,039 )   (22,376 )
Net cash used in investing activities   (44,296 )   (25,010 )
 
Financing activities
Proceeds from line of credit 32,851
Payments on line of credit (32,851 )
Proceeds from debt issuance 5,050
Principal payments on debt (3,220 ) (159 )
Payments on capital leases (74 ) (175 )
Excess tax benefits from vesting of restricted stock 34 89
Proceeds from employee stock purchase plan 385 303
Minority interest distributions, net   (6,724 )   (4,021 )
Net cash provided by (used in) financing activities   (4,549 )  

(3,963

)
Change in cash 10,519 (14,018 )
Cash at beginning of period   1,155     26,877  
Cash at end of period $ 11,674   $ 12,859  
 
Supplemental disclosures of cash flow information
Interest paid $ 356   $ 148  
Income taxes paid $ 8,553   $ 11,336  

LHC GROUP, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(in thousands)

 
  Three Months Ended

September 30, 2008

  Nine Months Ended

September 30, 2008

Home-Based

Services

  Facility-Based

Services

 

Total

Home-Based

Services

  Facility-Based

Services

 

Total

Net service revenue $ 84,514 $ 13,652 $ 98,166 $ 229,296 $ 42,459 $ 271,755
Cost of service revenue 39,916 8,061 47,977 110,738 24,694 135,432
Provision for bad debts 2,759 399 3,158 9,090 1,377 10,467
General and administrative expenses 27,696 2,991 30,687 75,915 10,368 86,283
Operating income 14,143 2,201 16,344 33,553 6,020 39,573
Interest expense (113 ) (15 ) (128 ) (276 ) (80 ) (356 )
Non-operating income 58 16 74 703 179 882
Income from continuing operations before income taxes and minority interest 14,088 2,202 16,290 33,980 6,119 40,099
Minority interest 2,754 258 3,012 6,471 1,239 7,710
Income from continuing operations before income taxes 11,334 1,944 13,278 27,509 4,880 32,389
Total assets $ 194,672 $ 21,893 $ 216,565 $ 194,672 $ 21,893 $ 216,565
  Three Months Ended

September 30, 2007

  Nine Months Ended

September 30, 2007

Home-Based

Services

  Facility-Based

Services

 

Total

Home-Based

Services

  Facility-Based

Services

 

Total

Net service revenue $ 63,217 $ 14,278 $ 77,495 $ 176,275 $ 40,511 $ 216,786
Cost of service revenue 31,135 8,844 39,979 84,874 25,802 110,676
Provision for bad debts 1,390 840 2,230 4,036 2,073 6,109
General and administrative expenses 20,717 3,801 24,518 56,703 11,746 68,449
Operating income 9,975 793 10,768 30,662 890 31,552
Interest expense (64 ) (32 ) (96 ) (180 ) (93 ) (273 )
Non-operating income 246 112 358 661 294 955
Income from continuing operations before income taxes and minority interest 10,157 873 11,030 31,143 1,091 32,234
Minority interest 1,264 149 1,413 3,673 654 4,327
Income from continuing operations before income taxes 8,893 724 9,617 27,470 437 27,907
Total assets $ 148,909 $ 28,771 $ 177,680 $ 148,909 $ 28,771 $ 177,680

Nachrichten zu LHC Group Inc Registered Shs Cash Settlementmehr Nachrichten

Keine Nachrichten verfügbar.

Analysen zu LHC Group Inc Registered Shs Cash Settlementmehr Analysen

Eintrag hinzufügen
Hinweis: Sie möchten dieses Wertpapier günstig handeln? Sparen Sie sich unnötige Gebühren! Bei finanzen.net Brokerage handeln Sie Ihre Wertpapiere für nur 5 Euro Orderprovision* pro Trade? Hier informieren!
Es ist ein Fehler aufgetreten!