LAFAYETTE, La., Aug. 3, 2022
/PRNewswire/ -- LHC Group, Inc. (NASDAQ: LHCG) announced its
financial results for the quarter ended June
30, 2022.
Second Quarter 2022 Financial Results
- Net service revenue increased 5.5% to $576.2 million.
- Net income attributable to LHC Group's common stockholders was
$10.6 million, or $0.35 per diluted share.
- Adjusted net income attributable to LHC Group's common
stockholders was $29.8 million, or
$0.98 adjusted earnings per diluted
share.
- Adjusted EBITDA was $53.0
million.
A reconciliation of all non-GAAP financial results in this
release appears on pages 9-10.
Operational and Strategic Highlights
- LHC Group's quality and patient satisfaction scores continue to
exceed the national average as the Company remains a leader among
industry peers.
- Home Health quality star ratings continue to improve from 4.20
in the April 2022 release to 4.25 in
the July 2022 release and Home Health
quality patient satisfaction ratings continue to improve from 3.83
in the April 2022 release to 4.01 in
the July 2022 release.
- Organic growth in hospice admissions increased 5.5% in the
second quarter of 2022 compared with the same period in 2021.
- On May 3, 2022, LHC Group
announced that it has finalized a joint venture partnership for
in-home services with Archbold Medical Center in Thomasville, Georgia.
The Company has posted supplemental financial information on the
second quarter results, which can be found under Financial Results
on the Company's Investor Relations page. In light of the
pending acquisition of the Company by UnitedHealth Group
Incorporated ("UNH"), LHC Group will not conduct a quarterly
earnings call to discuss the second quarter results.
About LHC Group, Inc.
LHC Group, Inc. is a national
provider of in-home healthcare services and innovations for
communities around the nation, offering quality, value-based
healthcare to patients primarily within the comfort and privacy of
their home or place of residence. The company's 29,000 employees
deliver home health, hospice, home- and community-based services,
and facility-based care in 37 states and the District of Columbia – reaching 68 percent of
the U.S. population aged 65 and older. Through Imperium Health, the
company's ACO management and enablement company, LHC Group helps
partners improve both savings and patient outcomes with a
value-based approach. As the preferred joint venture partner for
more than 400 leading U.S. hospitals and health systems, LHC Group
works in cooperation with providers to customize each partnership
and reach more patients and families with an effective and
efficient model of care.
Forward-looking Statements
This press release contains
"forward-looking statements" (as defined in the Securities
Litigation Reform Act of 1995) regarding, among other things,
future events or the future financial performance of the Company,
or the timing or anticipated benefits of pending acquisition of the
Company by UnitedHealth Group Incorporated. Words such as
"anticipate," "expect," "project," "intend," "believe," "will,"
"estimates," "may," "could," "should" and words and terms of
similar substance used in connection with any discussion of future
plans, actions or events identify forward-looking statements.
Forward-looking statements are based on information currently
available to the Company and involve estimates, expectations and
projections. Investors are cautioned that all such forward-looking
statements are subject to risks and uncertainties, and important
factors could cause actual events or results to differ materially
from those indicated by such forward-looking statements. These
risks, uncertainties and other factors include, but are not limited
to, those discussed and described in our most recent Annual Report
on Form 10-K, including those risks described in Part I, Item 1A.
Risk Factors thereof, and in other reports filed subsequently by us
with the Securities and Exchange Commission and, with respect to
the pending acquisition of the Company by UnitedHealth Group
Incorporated, include, but are not limited to, those discussed in
the proxy statement filed by the Company with the SEC on
May 17, 2022. All forward-looking
statements included in this document are based on information
available to us on the date hereof, and the Company assumes no
obligation to update any such forward-looking statements to reflect
future events or circumstances, except as required by law.
|
LHC GROUP, INC. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Amounts in
thousands, except share data)
(Unaudited)
|
|
June
30,
2022
|
|
December 31,
2021
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
$
27,400
|
|
$
9,809
|
|
Receivables:
|
|
|
|
|
Patient accounts
receivable
|
342,068
|
|
348,820
|
|
Other
receivables
|
13,304
|
|
13,780
|
|
Amounts due from
governmental entities
|
483
|
|
—
|
|
Total
receivables
|
355,855
|
|
362,600
|
|
Prepaid income
taxes
|
19,613
|
|
7,531
|
|
Prepaid
expenses
|
20,556
|
|
28,401
|
|
Other current
assets
|
36,166
|
|
24,801
|
|
Total current
assets
|
459,590
|
|
433,142
|
|
Property, building and
equipment, net of accumulated depreciation of $106,541 and $98,394,
respectively
|
155,978
|
|
153,959
|
|
Goodwill
|
1,751,430
|
|
1,748,426
|
|
Intangible assets, net
of accumulated amortization of $21,902 and $19,152,
respectively
|
397,121
|
|
400,002
|
|
Operating lease right
of use asset
|
109,925
|
|
113,399
|
|
Other assets
|
63,830
|
|
46,693
|
|
Total
assets
|
$
2,937,874
|
|
$
2,895,621
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
other accrued liabilities
|
$
124,222
|
|
$
98,118
|
|
Salaries, wages, and
benefits payable
|
94,432
|
|
100,532
|
|
Self-insurance
reserves
|
41,302
|
|
33,784
|
|
Contract liabilities -
deferred revenue
|
8,222
|
|
106,489
|
|
Current operating
lease payable
|
36,929
|
|
37,630
|
|
Amounts due to
governmental entities
|
3,034
|
|
5,447
|
|
Current liabilities -
deferred employer payroll tax
|
26,790
|
|
26,790
|
|
Total current
liabilities
|
334,931
|
|
408,790
|
|
Deferred income
taxes
|
80,691
|
|
70,026
|
|
Income taxes
payable
|
7,754
|
|
7,320
|
|
Revolving credit
facility
|
759,000
|
|
661,197
|
|
Long-term operating
lease liabilities
|
75,971
|
|
78,688
|
|
Total liabilities
|
1,258,347
|
|
1,226,021
|
|
Noncontrolling interest
— redeemable
|
17,210
|
|
17,501
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
LHC Group, Inc.
stockholders' equity:
|
|
|
|
|
Preferred stock –
$0.01 par value; 5,000,000 shares authorized; none issued or
outstanding
|
—
|
|
—
|
|
Common stock — $0.01
par value; 60,000,000 shares authorized; 36,703,550 and
36,549,524
shares issued, and 30,567,333 and 30,634,414 shares outstanding,
respectively
|
367
|
|
365
|
|
Treasury stock —
6,136,217 and 5,915,110 shares at cost,
respectively
|
(194,390)
|
|
(164,790)
|
|
Additional paid-in
capital
|
990,247
|
|
979,642
|
|
Retained
earnings
|
781,063
|
|
751,025
|
|
Total LHC Group, Inc.
stockholders' equity
|
1,577,287
|
|
1,566,242
|
|
Noncontrolling
interest — non-redeemable
|
85,030
|
|
85,857
|
|
Total stockholders'
equity
|
1,662,317
|
|
1,652,099
|
|
Total liabilities and
stockholders' equity
|
$
2,937,874
|
|
$
2,895,621
|
|
LHC GROUP, INC. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in
thousands, except per share data)
(Unaudited)
|
|
|
Three Months Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net service
revenue
|
$
576,193
|
|
$
545,907
|
|
$
1,147,688
|
|
$
1,070,742
|
|
Cost of service revenue
(excluding depreciation and amortization)
|
353,933
|
|
317,872
|
|
704,321
|
|
628,144
|
|
Gross margin
|
222,260
|
|
228,035
|
|
443,367
|
|
442,598
|
|
General and
administrative expenses
|
196,390
|
|
167,061
|
|
380,749
|
|
330,310
|
|
Impairment of
intangibles and other
|
842
|
|
760
|
|
2,071
|
|
937
|
|
Operating
income
|
25,028
|
|
60,214
|
|
60,547
|
|
111,351
|
|
Interest
expense
|
(6,407)
|
|
(143)
|
|
(10,578)
|
|
(406)
|
|
Income before income
taxes and noncontrolling interest
|
18,621
|
|
60,071
|
|
49,969
|
|
110,945
|
|
Income tax
expense
|
3,679
|
|
13,318
|
|
10,048
|
|
22,759
|
|
Net income
|
14,942
|
|
46,753
|
|
39,921
|
|
88,186
|
|
Less net income
attributable to noncontrolling interests
|
4,358
|
|
9,110
|
|
9,883
|
|
15,884
|
|
Net income attributable
to LHC Group, Inc.'s common stockholders
|
$
10,584
|
|
$
37,643
|
|
$
30,038
|
|
$
72,302
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.35
|
|
$
1.21
|
|
$
0.98
|
|
$
2.32
|
|
Diluted
|
$
0.35
|
|
$
1.20
|
|
$
0.98
|
|
$
2.30
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
30,543
|
|
31,225
|
|
30,508
|
|
31,188
|
|
Diluted
|
30,676
|
|
31,430
|
|
30,623
|
|
31,423
|
|
LHC GROUP, INC. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in
thousands)
(Unaudited)
|
|
|
Six Months
Ended June 30,
|
|
|
2022
|
|
|
2021
|
|
Operating
activities:
|
|
|
|
|
|
|
Net income
|
$
|
39,921
|
|
$
|
88,186
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
11,723
|
|
|
9,541
|
|
Amortization of
operating lease right of use asset
|
|
20,412
|
|
|
17,995
|
|
Stock-based
compensation expense
|
|
9,319
|
|
|
7,506
|
|
Deferred income
taxes
|
|
10,665
|
|
|
19,489
|
|
Loss on disposal of
assets
|
|
221
|
|
|
19
|
|
Impairment of intangibles and other
|
|
2,071
|
|
|
937
|
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
Receivables
|
|
5,686
|
|
|
(25,649)
|
|
Prepaid
expenses
|
|
7,845
|
|
|
(4,484)
|
|
Other
assets
|
|
(13,403)
|
|
|
6,170
|
|
Prepaid income
taxes
|
|
(12,083)
|
|
|
(13,739)
|
|
Accounts payable and
accrued expenses
|
|
31,358
|
|
|
(9,148)
|
|
Salaries, wages, and
benefits payable
|
|
1,338
|
|
|
(4,560)
|
|
Contract liabilities -
deferred revenue
|
|
(98,267)
|
|
|
(65,026)
|
|
Operating lease
liabilities
|
|
(20,286)
|
|
|
(17,962)
|
|
Income taxes
payable
|
|
434
|
|
|
(21,042)
|
|
Net amounts due
to/from governmental entities
|
|
758
|
|
|
(57)
|
|
Net cash used in
operating activities
|
|
(2,288)
|
|
|
(11,824)
|
|
Investing
activities:
|
|
|
|
|
|
|
Purchases of property,
building and equipment
|
|
(11,138)
|
|
|
(15,619)
|
|
Proceeds from sale of
property, building and equipment
|
|
—
|
|
|
150
|
|
Cash paid for
acquisitions, net of cash acquired
|
|
(2,570)
|
|
|
(649)
|
|
Proceeds from sale of
an entity
|
|
—
|
|
|
1,531
|
|
Minority interest
investments
|
|
(15,100)
|
|
|
(10,100)
|
|
Net cash used in
investing activities
|
|
(28,808)
|
|
|
(24,687)
|
|
Financing
activities:
|
|
|
|
|
|
|
Proceeds from line of
credit
|
|
597,250
|
|
|
—
|
|
Payments on line of
credit
|
|
(499,447)
|
|
|
(20,000)
|
|
Government stimulus
advance
|
|
—
|
|
|
(93,257)
|
|
Proceeds from employee
stock purchase plan
|
|
1,233
|
|
|
1,222
|
|
Payments
on repurchasing common stock
|
|
(34,565)
|
|
|
—
|
|
Noncontrolling
interest distributions
|
|
(11,541)
|
|
|
(13,332)
|
|
Withholding taxes paid
on stock-based compensation
|
|
(3,867)
|
|
|
(10,754)
|
|
Purchase of additional
controlling interest
|
|
(376)
|
|
|
(2,113)
|
|
Sale of noncontrolling
interest
|
|
—
|
|
|
284
|
|
Net cash provided by
(used in) financing activities
|
|
48,687
|
|
|
(137,950)
|
|
Change in
cash
|
|
17,591
|
|
|
(174,461)
|
|
Cash at beginning of
period
|
|
9,809
|
|
|
286,569
|
|
Cash at end of
period
|
$
|
27,400
|
|
$
|
112,108
|
|
|
|
|
|
|
|
Non-Cash Financing
Activity:
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
Interest
paid
|
$
|
9,321
|
|
$
|
1,322
|
|
Income taxes
paid
|
$
|
11,191
|
|
$
|
38,103
|
|
Non-Cash Operating
Activity:
|
|
|
|
|
|
|
Operating right of use
assets in exchange for lease obligations
|
$
|
18,633
|
|
$
|
25,656
|
|
Reduction to right of
use assets and liabilities
|
$
|
(1,695)
|
|
|
—
|
|
Non-Cash Investing
Activity:
|
|
|
|
|
|
|
Net working capital
adjustment
|
$
|
1,440
|
|
|
—
|
|
Accrued capital
expenditures
|
$
|
74
|
|
$
|
1,108
|
|
LHC GROUP, INC. AND
SUBSIDIARIES
SEGMENT
INFORMATION
(Amounts in
thousands)
(Unaudited)
|
|
|
Three Months Ended
June 30, 2022
|
|
Home health
services
|
|
Hospice
services
|
|
Home and
community-
based
services
|
|
Facility-
based
services
|
|
HCI
|
|
Total
|
|
Net service
revenue
|
$ 392,782
|
|
$
102,617
|
|
$
44,718
|
|
$ 30,709
|
|
$ 5,367
|
|
$ 576,193
|
|
Cost of service revenue
(excluding depreciation and amortization)
|
228,511
|
|
67,848
|
|
31,788
|
|
22,830
|
|
2,956
|
|
353,933
|
|
General and
administrative expenses
|
134,623
|
|
33,423
|
|
12,444
|
|
12,211
|
|
3,689
|
|
196,390
|
|
Impairment of
intangibles and other
|
481
|
|
361
|
|
—
|
|
—
|
|
—
|
|
842
|
|
Operating income
(loss)
|
29,167
|
|
985
|
|
486
|
|
(4,332)
|
|
(1,278)
|
|
25,028
|
|
Interest
expense
|
(4,488)
|
|
(949)
|
|
(564)
|
|
(281)
|
|
(125)
|
|
(6,407)
|
|
Income (loss) before
income taxes and noncontrolling interest
|
24,679
|
|
36
|
|
(78)
|
|
(4,613)
|
|
(1,403)
|
|
18,621
|
|
Income tax expense
(benefit)
|
6,565
|
|
(160)
|
|
(1,413)
|
|
(960)
|
|
(353)
|
|
3,679
|
|
Net income
(loss)
|
18,114
|
|
196
|
|
1,335
|
|
(3,653)
|
|
(1,050)
|
|
14,942
|
|
Less net income (loss)
attributable to non controlling interests
|
4,324
|
|
888
|
|
(34)
|
|
(817)
|
|
(3)
|
|
4,358
|
|
Net income (loss)
attributable to LHC Group, Inc.'s common stockholder
|
$
13,790
|
|
$
(692)
|
|
$ 1,369
|
|
$ (2,836)
|
|
$ (1,047)
|
|
$
10,584
|
|
Total assets
|
$
1,746,161
|
|
$
807,100
|
|
$
240,481
|
|
$ 80,617
|
|
$
63,515
|
|
$ 2,937,874
|
|
LHC GROUP, INC. AND
SUBSIDIARIES
SEGMENT
INFORMATION
(Amounts in
thousands)
(Unaudited)
|
|
|
Three Months Ended
June 30, 2021
|
|
Home health
services
|
|
Hospice
services
|
|
Home and
community-
based
services
|
|
Facility-
based
services
|
|
HCI
|
|
Total
|
|
Net service
revenue
|
$ 396,534
|
|
$ 63,804
|
|
$ 48,407
|
|
$ 31,030
|
|
$
6,132
|
|
$
545,907
|
|
Cost of service revenue
(excluding depreciation and amortization)
|
219,925
|
|
39,647
|
|
34,683
|
|
20,460
|
|
3,157
|
|
317,872
|
|
General and
administrative expenses
|
123,245
|
|
18,114
|
|
11,923
|
|
10,906
|
|
2,873
|
|
167,061
|
|
Impairment of
intangibles and other
|
760
|
|
—
|
|
—
|
|
—
|
|
—
|
|
760
|
|
Operating income
(loss)
|
52,604
|
|
6,043
|
|
1,801
|
|
(336)
|
|
102
|
|
60,214
|
|
Interest
expense
|
(106)
|
|
(20)
|
|
(10)
|
|
(5)
|
|
(2)
|
|
(143)
|
|
Income (loss) before
income taxes and noncontrolling interest
|
52,498
|
|
6,023
|
|
1,791
|
|
(341)
|
|
100
|
|
60,071
|
|
Income tax expense
(benefit)
|
11,706
|
|
1,280
|
|
470
|
|
(152)
|
|
14
|
|
13,318
|
|
Net income
(loss)
|
40,792
|
|
4,743
|
|
1,321
|
|
(189)
|
|
86
|
|
46,753
|
|
Less net income (loss)
attributable to noncontrolling interests
|
7,500
|
|
1,208
|
|
85
|
|
322
|
|
(5)
|
|
9,110
|
|
Net income (loss)
attributable to LHC Group, Inc.'s common stockholders
|
$
33,292
|
|
$
3,535
|
|
$
1,236
|
|
$
(511)
|
|
$
91
|
|
$ 37,643
|
|
Total assets
|
$
1,681,871
|
|
$
288,985
|
|
$
245,071
|
|
$ 85,520
|
|
$ 65,678
|
|
$ 2,367,125
|
|
LHC GROUP, INC. AND
SUBSIDIARIES
SEGMENT
INFORMATION
(Amounts in
thousands)
(Unaudited)
|
|
|
Six months ended
June 30, 2022
|
|
Home health
services
|
|
Hospice
services
|
|
Home and
community-
based
services
|
|
Facility-
based
services
|
|
HCI
|
|
Total
|
|
Net service
revenue
|
$ 780,674
|
|
$
204,523
|
|
$ 89,058
|
|
$ 62,848
|
|
$ 10,585
|
|
$ 1,147,688
|
|
Cost of service revenue
(excluding depreciation and amortization)
|
456,718
|
|
133,913
|
|
60,743
|
|
47,035
|
|
5,912
|
|
704,321
|
|
General and
administrative expenses
|
261,430
|
|
64,768
|
|
23,862
|
|
23,639
|
|
7,050
|
|
380,749
|
|
Impairment of
intangibles and other
|
930
|
|
1,087
|
|
54
|
|
—
|
|
—
|
|
2,071
|
|
Operating income
(loss)
|
61,596
|
|
4,755
|
|
4,399
|
|
(7,826)
|
|
(2,377)
|
|
60,547
|
|
Interest
expense
|
(7,458)
|
|
(1,447)
|
|
(977)
|
|
(489)
|
|
(207)
|
|
(10,578)
|
|
Income (loss) before
income taxes and noncontrolling interest
|
54,138
|
|
3,308
|
|
3,422
|
|
(8,315)
|
|
(2,584)
|
|
49,969
|
|
Income tax expense
(benefit)
|
11,334
|
|
436
|
|
845
|
|
(1,922)
|
|
(645)
|
|
10,048
|
|
Net income
(loss)
|
42,804
|
|
2,872
|
|
2,577
|
|
(6,393)
|
|
(1,939)
|
|
39,921
|
|
Less net income (loss)
attributable to non controlling interests
|
8,920
|
|
1,568
|
|
51
|
|
(646)
|
|
(10)
|
|
9,883
|
|
Net income (loss)
attributable to LHC Group, Inc.'s common stockholder
|
$
33,884
|
|
$
1,304
|
|
$
2,526
|
|
$ (5,747)
|
|
$ (1,929)
|
|
$ 30,038
|
|
LHC GROUP, INC. AND
SUBSIDIARIES
SEGMENT
INFORMATION
(Amounts in
thousands)
(Unaudited)
|
|
|
Six months ended
June 30, 2021
|
|
Home health
services
|
|
Hospice
services
|
|
Home and
community-
based
services
|
|
Facility-
based
services
|
|
HCI
|
|
Total
|
|
Net service
revenue
|
$ 770,362
|
|
$
126,538
|
|
$ 97,532
|
|
$ 64,399
|
|
$ 11,911
|
|
$ 1,070,742
|
|
Cost of service revenue
(excluding depreciation and amortization)
|
432,298
|
|
78,217
|
|
69,555
|
|
41,635
|
|
6,439
|
|
628,144
|
|
General and
administrative expenses
|
242,642
|
|
36,241
|
|
23,452
|
|
22,163
|
|
5,812
|
|
330,310
|
|
Impairment of
intangibles and other
|
937
|
|
—
|
|
—
|
|
—
|
|
—
|
|
937
|
|
Operating income
(loss)
|
94,485
|
|
12,080
|
|
4,525
|
|
601
|
|
(340)
|
|
111,351
|
|
Interest
expense
|
(288)
|
|
(56)
|
|
(34)
|
|
(19)
|
|
(9)
|
|
(406)
|
|
Income (loss) before
income taxes and noncontrolling interest
|
94,197
|
|
12,024
|
|
4,491
|
|
582
|
|
(349)
|
|
110,945
|
|
Income tax expense
(benefit)
|
19,596
|
|
2,347
|
|
988
|
|
(95)
|
|
(77)
|
|
22,759
|
|
Net income
(loss)
|
74,601
|
|
9,677
|
|
3,503
|
|
677
|
|
(272)
|
|
88,186
|
|
Less net income (loss)
attributable to non controlling interests
|
12,349
|
|
2,223
|
|
364
|
|
979
|
|
(31)
|
|
15,884
|
|
Net income (loss)
attributable to LHC Group, Inc.'s common stockholder
|
$
62,252
|
|
$
7,454
|
|
$
3,139
|
|
$
(302)
|
|
$
(241)
|
|
$ 72,302
|
|
LHC GROUP, INC. AND
SUBSIDIARIES
SELECT CONSOLIDATED
KEY STATISTICAL AND FINANCIAL DATA
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
|
Key
Data:
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
Home Health
Services:
|
|
|
|
|
|
|
|
|
|
Locations
|
|
543
|
|
|
531
|
|
|
543
|
|
|
531
|
|
|
Total new
admissions
|
|
107,268
|
|
|
109,082
|
|
|
220,390
|
|
|
217,004
|
|
|
Episodic new
admissions
|
|
66,419
|
|
|
68,738
|
|
|
134,573
|
|
|
136,130
|
|
|
Average daily
census
|
|
84,320
|
|
|
85,554
|
|
|
84,833
|
|
|
84,745
|
|
|
Average episodic daily
census
|
|
53,415
|
|
|
55,706
|
|
|
53,191
|
|
|
55,152
|
|
|
Completed
episodes
|
|
104,053
|
|
|
105,393
|
|
|
204,580
|
|
|
207,129
|
|
|
Average reimbursement
per completed episodes
|
|
$2,878
|
|
|
$2,882
|
|
|
$2,906
|
|
|
$2,869
|
|
|
Total visits
|
|
2,089,747
|
|
|
2,151,665
|
|
|
4,207,819
|
|
|
4,209,298
|
|
|
Total episodic
visits
|
|
1,286,584
|
|
|
1,352,608
|
|
|
2,573,685
|
|
|
2,641,261
|
|
|
Average visits per
episodes
|
|
12.4
|
|
|
12.8
|
|
|
12.6
|
|
|
12.8
|
|
|
Organic growth:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
-3.4
|
%
|
|
16.4
|
%
|
|
-1.5
|
%
|
|
9.4
|
%
|
|
Episodic
revenue
|
|
-4.2
|
%
|
|
14.8
|
%
|
|
-3.0
|
%
|
|
8.0
|
%
|
|
Total new
admissions
|
|
-4.3
|
%
|
|
16.4
|
%
|
|
-1.4
|
%
|
|
7.3
|
%
|
|
Episodic
new admissions
|
|
-6.3
|
%
|
|
13.4
|
%
|
|
-4.4
|
%
|
|
4.6
|
%
|
|
Average
daily census
|
|
-3.5
|
%
|
|
10.3
|
%
|
|
-2.2
|
%
|
|
10.2
|
%
|
|
Average
episodic daily census
|
|
-6.4
|
%
|
|
5.7
|
%
|
|
-5.7
|
%
|
|
4.5
|
%
|
|
Completed
episodes
|
|
-3.7
|
%
|
|
11.0
|
%
|
|
-3.5
|
%
|
|
5.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Hospice
Services:
|
|
|
|
|
|
|
|
|
|
Locations
|
|
169
|
|
|
120
|
|
|
169
|
|
|
120
|
|
|
Admissions
|
|
7,370
|
|
|
4,967
|
|
|
15,746
|
|
|
10,418
|
|
|
Average daily
census
|
|
7,123
|
|
|
4,454
|
|
|
7,093
|
|
|
4,433
|
|
|
Patient days
|
|
648,216
|
|
|
405,339
|
|
|
1,284,037
|
|
|
802,313
|
|
|
Average revenue per
patient day
|
|
$
|
160.97
|
|
|
$
|
158.54
|
|
|
$
|
161.99
|
|
|
$
|
160.19
|
|
|
Organic growth:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total new
admissions
|
|
5.5
|
%
|
|
1.1
|
%
|
|
7.1
|
%
|
|
4.7
|
%
|
|
|
|
|
|
|
|
|
|
|
Home and
Community-Based Services:
|
|
|
|
|
|
|
|
|
|
Locations
|
|
135
|
|
|
135
|
|
|
135
|
|
|
133
|
|
|
Average daily
census
|
|
11,598
|
|
|
13,514
|
|
|
11,864
|
|
|
13,613
|
|
|
Billable
hours
|
|
1,694,994
|
|
|
1,878,138
|
|
|
3,368,686
|
|
|
3,779,419
|
|
|
Revenue per billable
hour
|
|
$
|
27.22
|
|
|
$
|
25.88
|
|
|
$
|
27.19
|
|
|
$
|
25.96
|
|
|
Facility-Based
Services:
|
|
|
|
|
|
|
|
|
|
Long-term Acute
Care
|
|
|
|
|
|
|
|
|
|
Locations
|
|
12
|
|
|
12
|
|
|
12
|
|
|
12
|
|
|
Average revenue per
patient day
|
|
$
|
1,479
|
|
|
$
|
1,517
|
|
|
$
|
1,463
|
|
|
$
|
1,517
|
|
|
Patient days
|
|
17,550
|
|
|
20,199
|
|
|
38,063
|
|
|
41,359
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
RECONCILIATION OF
ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP, INC.
(Amounts in
thousands)
(Unaudited)
|
|
|
|
Three Months
Ended
June 30,
|
Six
Months Ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net income attributable
to LHC Group, Inc.'s common stockholders
|
|
$
|
10,584
|
|
|
$
|
37,643
|
|
|
$
|
30,038
|
|
|
$
|
72,302
|
|
|
Add (net of
tax):
|
|
|
|
|
|
|
|
|
|
Acquisition, de novo and legal expenses
(1)
|
|
6,771
|
|
|
3,477
|
|
|
9,790
|
|
|
3,477
|
|
|
Closures/relocations/consolidations (2)
|
|
3,010
|
|
|
1,048
|
|
|
5,142
|
|
|
1,179
|
|
|
COVID-19
impact:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPE, supplies and
other expenses (3)
|
|
—
|
|
|
7,999
|
|
|
—
|
|
|
16,851
|
|
|
ERP
implementation (4)
|
|
2,446
|
|
|
728
|
|
|
4,138
|
|
|
728
|
|
|
Cost
improvement initiatives (5)
|
|
6,562
|
|
|
—
|
|
|
10,204
|
|
|
—
|
|
|
Cost
report and contract settlements (6)
|
|
465
|
|
|
—
|
|
|
3,963
|
|
|
—
|
|
|
Adjusted net income
attributable to LHC Group, Inc.'s common stockholders
|
|
$
|
29,838
|
|
|
$
|
50,895
|
|
|
$
|
63,275
|
|
|
$
|
94,537
|
|
|
RECONCILIATION OF
ADJUSTED NET INCOME
ATTRIBUTABLE TO LHC
GROUP, INC. PER DILUTED SHARE
(Unaudited)
|
|
|
|
Three Months
Ended
June 30,
|
Six
Months Ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net income attributable
to LHC Group, Inc.'s common stockholders
|
|
$
|
0.35
|
|
|
$
|
1.20
|
|
|
$
|
0.98
|
|
|
$
|
2.30
|
|
|
Add (net of
tax):
|
|
|
|
|
|
|
|
|
|
Acquisition, de novo and legal expenses
(1)
|
|
0.22
|
|
|
0.11
|
|
|
0.32
|
|
|
0.11
|
|
|
Closures/relocations/consolidations (2)
|
|
0.10
|
|
|
0.03
|
|
|
0.17
|
|
|
0.04
|
|
|
COVID-19
impact:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPE, supplies and
other expenses (3)
|
|
—
|
|
|
0.26
|
|
|
—
|
|
|
0.54
|
|
|
ERP
implementation (4)
|
|
0.08
|
|
|
0.02
|
|
|
0.14
|
|
|
0.02
|
|
|
Cost
improvement initiatives (5)
|
|
0.21
|
|
|
—
|
|
|
0.33
|
|
|
—
|
|
|
Cost
report and contract settlements (6)
|
|
0.02
|
|
|
—
|
|
|
0.13
|
|
|
—
|
|
|
Adjusted net income
attributable to LHC Group, Inc.'s common stockholders
|
|
$
|
0.98
|
|
|
$
|
1.62
|
|
|
$
|
2.07
|
|
|
$
|
3.01
|
|
|
RECONCILIATION OF
EBITDA AND ADJUSTED EBITDA
(Amounts in
thousands)
(Unaudited)
|
|
|
|
Three Months
Ended
June 30,
|
Six Months Ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net income attributable
to LHC Group, Inc.'s common stockholders
|
|
$
|
10,584
|
|
|
$
|
37,643
|
|
|
$
|
30,038
|
|
|
$
|
72,302
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
3,679
|
|
|
13,318
|
|
|
10,048
|
|
|
22,759
|
|
|
Interest
expense, net
|
|
6,407
|
|
|
143
|
|
|
10,578
|
|
|
406
|
|
|
Depreciation and amortization
|
|
6,106
|
|
|
4,542
|
|
|
11,723
|
|
|
9,541
|
|
|
Adjustment
items (*)
|
|
26,233
|
|
|
17,942
|
|
|
45,137
|
|
|
30,109
|
|
|
Adjusted
EBITDA
|
|
$
|
53,009
|
|
|
$
|
73,588
|
|
|
$
|
107,524
|
|
|
$
|
135,117
|
|
|
* Adjustment items
(pre-tax):
|
|
|
|
|
|
|
|
|
|
Acquisition, de novo and legal expenses
(1)
|
|
9,226
|
|
|
4,708
|
|
|
13,307
|
|
|
4,708
|
|
|
Closures/relocation/consolidations (2)
|
|
4,101
|
|
|
1,419
|
|
|
6,983
|
|
|
1,596
|
|
|
COVID-19 PPE, supplies and other
expenses (3)
|
|
—
|
|
|
10,829
|
|
|
—
|
|
|
22,819
|
|
|
ERP
implementation (4)
|
|
3,332
|
|
|
986
|
|
|
5,619
|
|
|
986
|
|
|
Cost
improvement initiatives (5)
|
|
8,941
|
|
|
—
|
|
|
13,865
|
|
|
—
|
|
|
Cost
report and contract settlements (6)
|
|
633
|
|
|
—
|
|
|
5,363
|
|
|
—
|
|
|
Total
adjustments
|
|
$
|
26,233
|
|
|
$
|
17,942
|
|
|
$
|
45,137
|
|
|
$
|
30,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Expenses and other costs associated with recently announced or
completed acquisitions, de novos and the pending acquisition
by UnitedHealth Group. ($9.2 million
pre-tax in the three months ended June 30,
2022 and $13.3 million pre-tax
in the six months ended June 30,
2022; $4.7 million pre-tax in
the three and six months ended June 30,
2021).
- Loss on the sale of an asset and other expenses associated with
a closure or consolidation, including impairment ($4.1 million pre-tax in the three months ended
June 30, 2022 and $7.0 million in the six months ended June 30, 2022; $1.4
million pre-tax in the three months ended June 30, 2021 and $1.6
million in the six months ended June
30, 2021).
- COVID-19 related expenses for purchases of personal protective
equipment (PPE), supplies and wage adjustments (No adjustments were
made in the three months and six months ended June 30, 2022; $10.8
million pre-tax in the three months ended June 30, 2021 and $22.8
million pre-tax in the six months ended June 30, 2021).
- Expenses and other costs associated with the implementation of
an Enterprise Resource Planning software ($3.3 million pre-tax in the three months ended
June 30, 2022 and $5.6 million pre-tax in the six months ended
June 30, 2022; $1.0 million pre-tax in the three and six months
ended June 30, 2021).
- Expenses associated with cost improvement initiatives
implemented in the first and second quarters of 2022, which
consisted of contract terminations and general and administrative
cost reductions ($8.9 million pre-tax
in the three months ended June 30,
2022 and $13.9 million pre-tax
in the six months ended June 30,
2022).
- Expenses associated with a 2004 cost report settlement along
with other disputed contract settlements ($0.6 million pre-tax in the three months ended
June 30, 2022 and $5.4 million pre-tax in the six months ended
June 30, 2022).
|
Contact:
|
Eric
Elliott
|
|
Senior Vice
President of Finance
|
|
(337)
233-1307
|
|
eric.elliott@lhcgroup.com
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/lhc-group-announces-second-quarter-2022-financial-results-301599308.html
SOURCE LHC Group, Inc.