LAFAYETTE, La., Nov. 2, 2022
/PRNewswire/ -- LHC Group, Inc. (NASDAQ: LHCG) announced its
financial results for the quarter ended September 30, 2022.
Third Quarter 2022 Financial Results
- Net service revenue increased 2.0% to $576.9 million.
- Net income attributable to LHC Group's common stockholders was
$17.3 million, or $0.56 per diluted share.
- Adjusted net income attributable to LHC Group's common
stockholders was $32.6 million, or
$1.06 adjusted earnings per diluted
share.
- Adjusted EBITDA was $60.3
million.
A reconciliation of all non-GAAP financial results in this
release appears on pages 8-9.
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 third 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)
|
|
|
September 30,
2022
|
|
December 31,
2021
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
$
10,522
|
|
$
9,809
|
|
Receivables:
|
|
|
|
|
Patient accounts
receivable
|
331,524
|
|
348,820
|
|
Other
receivables
|
30,217
|
|
13,780
|
|
Total
receivables
|
361,741
|
|
362,600
|
|
Prepaid income
taxes
|
19,303
|
|
7,531
|
|
Prepaid
expenses
|
23,128
|
|
28,401
|
|
Other current
assets
|
25,687
|
|
24,801
|
|
Total current
assets
|
440,381
|
|
433,142
|
|
Property, building and
equipment, net of accumulated depreciation of $110,600 and $98,394,
respectively
|
153,806
|
|
153,959
|
|
Goodwill
|
1,750,420
|
|
1,748,426
|
|
Intangible assets, net
of accumulated amortization of $22,865 and $19,152,
respectively
|
395,309
|
|
400,002
|
|
Operating lease right
of use asset
|
108,975
|
|
113,399
|
|
Other assets
|
65,263
|
|
46,693
|
|
Total
assets
|
$
2,914,154
|
|
$
2,895,621
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
other accrued liabilities
|
$
108,748
|
|
$
98,118
|
|
Salaries, wages, and
benefits payable
|
84,412
|
|
100,532
|
|
Self-insurance
reserves
|
38,734
|
|
33,784
|
|
Contract liabilities -
deferred revenue
|
4,840
|
|
106,489
|
|
Current operating
lease payable
|
36,998
|
|
37,630
|
|
Amounts due to
governmental entities
|
2,499
|
|
5,447
|
|
Current liabilities -
deferred employer payroll tax
|
26,790
|
|
26,790
|
|
Total current
liabilities
|
303,021
|
|
408,790
|
|
Deferred income
taxes
|
87,661
|
|
70,026
|
|
Income taxes
payable
|
7,988
|
|
7,320
|
|
Revolving credit
facility
|
738,000
|
|
661,197
|
|
Long-term operating
lease liabilities
|
74,992
|
|
78,688
|
|
Total liabilities
|
1,211,662
|
|
1,226,021
|
|
Noncontrolling interest
— redeemable
|
16,978
|
|
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; 36,733,790 and 36,549,524
shares issued, and 30,587,735 and 30,634,414 shares outstanding,
respectively
|
367
|
|
365
|
|
Treasury stock —
6,146,055 and 5,915,110 shares at cost, respectively
|
(195,447)
|
|
(164,790)
|
|
Additional paid-in
capital
|
997,115
|
|
979,642
|
|
Retained
earnings
|
798,372
|
|
751,025
|
|
Total LHC Group, Inc.
stockholders' equity
|
1,600,407
|
|
1,566,242
|
|
Noncontrolling
interest — non-redeemable
|
85,107
|
|
85,857
|
|
Total stockholders'
equity
|
1,685,514
|
|
1,652,099
|
|
Total liabilities and
stockholders' equity
|
$
2,914,154
|
|
$
2,895,621
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(Amounts in thousands, except per
share data)
(Unaudited)
|
|
|
Three months ended
September
30,
|
|
Nine months
ended
September
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net service
revenue
|
$
576,913
|
|
$
565,451
|
|
$
1,724,601
|
|
$
1,636,193
|
|
Cost of service revenue
(excluding depreciation and amortization)
|
347,772
|
|
343,862
|
|
1,052,093
|
|
972,006
|
|
Gross margin
|
229,141
|
|
221,589
|
|
672,508
|
|
664,187
|
|
General and
administrative expenses
|
189,051
|
|
176,444
|
|
569,800
|
|
506,754
|
|
Impairment of
intangibles and other
|
2,059
|
|
—
|
|
4,130
|
|
937
|
|
Operating
income
|
38,031
|
|
45,145
|
|
98,578
|
|
156,496
|
|
Interest
expense
|
(9,053)
|
|
(1,135)
|
|
(19,631)
|
|
(1,541)
|
|
Income before income
taxes and noncontrolling interest
|
28,978
|
|
44,010
|
|
78,947
|
|
154,955
|
|
Income tax
expense
|
6,966
|
|
10,150
|
|
17,014
|
|
32,909
|
|
Net income
|
22,012
|
|
33,860
|
|
61,933
|
|
122,046
|
|
Less net income
attributable to noncontrolling interests
|
4,703
|
|
6,126
|
|
14,586
|
|
22,010
|
|
Net income attributable
to LHC Group, Inc.'s common stockholders
|
$
17,309
|
|
$
27,734
|
|
$
47,347
|
|
$
100,036
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.57
|
|
$
0.89
|
|
$
1.55
|
|
$
3.21
|
|
Diluted
|
$
0.56
|
|
$
0.88
|
|
$
1.55
|
|
$
3.18
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
30,565
|
|
31,238
|
|
30,527
|
|
31,205
|
|
Diluted
|
30,706
|
|
31,434
|
|
30,639
|
|
31,422
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Amounts in
thousands) (Unaudited)
|
|
|
Nine months
ended
September
30,
|
|
2022
|
|
2021
|
|
Operating
activities:
|
|
|
|
|
Net income
|
$
61,933
|
|
$
122,046
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization expense
|
17,483
|
|
14,899
|
|
Amortization of
operating lease right of use asset
|
30,769
|
|
27,526
|
|
Stock-based
compensation expense
|
15,290
|
|
11,717
|
|
Deferred income
taxes
|
17,635
|
|
23,356
|
|
Loss (gain) on
disposal of assets
|
484
|
|
(1,190)
|
|
Impairment of intangibles and other
|
4,130
|
|
937
|
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
Receivables
|
(684)
|
|
(27,038)
|
|
Prepaid
expenses
|
5,273
|
|
397
|
|
Other
assets
|
(4,208)
|
|
(6,368)
|
|
Prepaid income
taxes
|
(11,772)
|
|
(11,575)
|
|
Prepaid
taxes
|
—
|
|
(12,509)
|
|
Accounts payable and
accrued expenses
|
16,282
|
|
6,626
|
|
Salaries, wages, and
benefits payable
|
(11,251)
|
|
(9,687)
|
|
Contract liabilities -
deferred revenue
|
(101,649)
|
|
(141,629)
|
|
Operating lease
liabilities
|
(30,568)
|
|
(27,472)
|
|
Income taxes
payable
|
668
|
|
(20,819)
|
|
Net amounts due
to/from governmental entities
|
223
|
|
(833)
|
|
Net cash provided by
(used in) operating activities
|
10,038
|
|
(51,616)
|
|
Investing
activities:
|
|
|
|
|
Purchases of property,
building and equipment
|
(14,074)
|
|
(23,548)
|
|
Proceeds from sale of
property, building and equipment
|
—
|
|
3,350
|
|
Cash paid for
acquisitions, net of cash acquired
|
(2,570)
|
|
(383,475)
|
|
Purchase of intangible
assets
|
(100)
|
|
—
|
|
Proceeds from sale of
an entity
|
—
|
|
1,531
|
|
Minority interest
investments
|
(15,250)
|
|
(10,100)
|
|
Net cash used in
investing activities
|
(31,994)
|
|
(412,242)
|
|
Financing
activities:
|
|
|
|
|
Proceeds from line of
credit
|
815,155
|
|
544,056
|
|
Payments on line of
credit
|
(738,352)
|
|
(209,056)
|
|
Government stimulus
advance
|
—
|
|
(93,257)
|
|
Proceeds from employee
stock purchase plan
|
1,840
|
|
1,877
|
|
Payments on
deferred financing fees
|
—
|
|
(2,855)
|
|
Payments
on repurchasing common stock
|
(34,565)
|
|
—
|
|
Noncontrolling
interest distributions
|
(16,346)
|
|
(22,187)
|
|
Withholding taxes paid
on stock-based compensation
|
(4,630)
|
|
(11,594)
|
|
Purchase of additional
controlling interest
|
(433)
|
|
(2,113)
|
|
Sale of noncontrolling
interest
|
—
|
|
1,934
|
|
Net cash provided by
financing activities
|
22,669
|
|
206,805
|
|
Change in
cash
|
713
|
|
(257,053)
|
|
Cash at beginning of
period
|
9,809
|
|
286,569
|
|
Cash at end of
period
|
$
10,522
|
|
$
29,516
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Amounts in
thousands) (Unaudited)
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
Interest
paid
|
$
18,049
|
|
$
1,532
|
|
Income taxes
paid
|
$
10,701
|
|
$
42,036
|
|
Non-Cash Operating
Activity:
|
|
|
|
|
Operating right of use
assets in exchange for lease obligations
|
$
28,435
|
|
$
41,776
|
|
Reduction to right of
use assets and liabilities
|
$
2,089
|
|
$
2,746
|
|
Non-Cash Investing
Activity:
|
|
|
|
|
Net working capital
adjustment
|
$
1,440
|
|
$
—
|
|
Accrued capital
expenditures
|
$
126
|
|
$
1,807
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts
in thousands)
(Unaudited)
|
|
|
Three months ended
September 30, 2022
|
|
Home health
services
|
|
Hospice
services
|
|
Home and
community-
based
services
|
|
Facility-
based
services
|
|
HCI
|
|
Total
|
|
Net service
revenue
|
$ 373,335
|
|
$
103,799
|
|
$
47,978
|
|
$ 31,441
|
|
$
20,360
|
|
$ 576,913
|
|
Cost of service revenue
(excluding depreciation and amortization)
|
217,790
|
|
68,951
|
|
35,727
|
|
22,549
|
|
2,755
|
|
347,772
|
|
General and
administrative expenses
|
126,052
|
|
32,384
|
|
11,893
|
|
12,098
|
|
6,624
|
|
189,051
|
|
Impairment of
intangibles and other
|
—
|
|
1,590
|
|
469
|
|
—
|
|
—
|
|
2,059
|
|
Operating income
(loss)
|
29,493
|
|
874
|
|
(111)
|
|
(3,206)
|
|
10,981
|
|
38,031
|
|
Interest
expense
|
(6,347)
|
|
(1,356)
|
|
(808)
|
|
(362)
|
|
(180)
|
|
(9,053)
|
|
Income (loss) before
income taxes and noncontrolling interest
|
23,146
|
|
(482)
|
|
(919)
|
|
(3,568)
|
|
10,801
|
|
28,978
|
|
Income tax expense
(benefit)
|
5,723
|
|
(439)
|
|
(165)
|
|
(927)
|
|
2,774
|
|
6,966
|
|
Net income
(loss)
|
17,423
|
|
(43)
|
|
(754)
|
|
(2,641)
|
|
8,027
|
|
22,012
|
|
Less net income (loss)
attributable to non controlling interests
|
3,838
|
|
1,269
|
|
(125)
|
|
(439)
|
|
160
|
|
4,703
|
|
Net income (loss)
attributable to LHC Group, Inc.'s common stockholder
|
$
13,585
|
|
$ (1,312)
|
|
$
(629)
|
|
$ (2,202)
|
|
$ 7,867
|
|
$
17,309
|
|
Total assets
|
$
1,717,209
|
|
$
798,668
|
|
$
238,082
|
|
$ 80,223
|
|
$
79,972
|
|
$ 2,914,154
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts
in thousands)
(Unaudited)
|
|
|
Three months ended
September 30, 2021
|
|
Home health
services
|
|
Hospice
services
|
|
Home and
community-
based
services
|
|
Facility-
based
services
|
|
HCI
|
|
Total
|
|
Net service
revenue
|
$ 386,699
|
|
$ 82,653
|
|
$ 45,800
|
|
$ 32,415
|
|
$ 17,884
|
|
$
565,451
|
|
Cost of service revenue
(excluding depreciation and amortization)
|
230,839
|
|
51,631
|
|
34,386
|
|
23,725
|
|
3,281
|
|
343,862
|
|
General and
administrative expenses
|
126,695
|
|
22,548
|
|
11,764
|
|
11,050
|
|
4,387
|
|
176,444
|
|
Operating income
(loss)
|
29,165
|
|
8,474
|
|
(350)
|
|
(2,360)
|
|
10,216
|
|
45,145
|
|
Interest
expense
|
(811)
|
|
(139)
|
|
(109)
|
|
(54)
|
|
(22)
|
|
(1,135)
|
|
Income (loss) before
income taxes and noncontrolling interest
|
28,354
|
|
8,335
|
|
(459)
|
|
(2,414)
|
|
10,194
|
|
44,010
|
|
Income tax expense
(benefit)
|
6,407
|
|
1,874
|
|
(99)
|
|
(554)
|
|
2,522
|
|
10,150
|
|
Net income
(loss)
|
21,947
|
|
6,461
|
|
(360)
|
|
(1,860)
|
|
7,672
|
|
33,860
|
|
Less net income (loss)
attributable to noncontrolling interests
|
5,157
|
|
1,085
|
|
77
|
|
(187)
|
|
(6)
|
|
6,126
|
|
Net income (loss)
attributable to LHC Group, Inc.'s common stockholders
|
$
16,790
|
|
$
5,376
|
|
$
(437)
|
|
$ (1,673)
|
|
$
7,678
|
|
$ 27,734
|
|
Total assets
|
$
1,632,670
|
|
$
681,954
|
|
$
239,452
|
|
$
83,276
|
|
$
75,334
|
|
$ 2,712,686
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts
in thousands)
(Unaudited)
|
|
|
Nine months ended
September 30, 2022
|
|
Home health
services
|
|
Hospice
services
|
|
Home and
community-
based
services
|
|
Facility-
based
services
|
|
HCI
|
|
Total
|
|
Net service
revenue
|
$
1,154,009
|
|
$
308,322
|
|
$
137,036
|
|
$ 94,289
|
|
$ 30,945
|
|
$ 1,724,601
|
|
Cost of service revenue
(excluding depreciation and amortization)
|
674,508
|
|
202,864
|
|
96,470
|
|
69,584
|
|
8,667
|
|
1,052,093
|
|
General and
administrative expenses
|
387,482
|
|
97,152
|
|
35,755
|
|
35,737
|
|
13,674
|
|
569,800
|
|
Impairment of
intangibles and other
|
930
|
|
2,677
|
|
523
|
|
—
|
|
—
|
|
4,130
|
|
Operating income
(loss)
|
91,089
|
|
5,629
|
|
4,288
|
|
(11,032)
|
|
8,604
|
|
98,578
|
|
Interest
expense
|
(13,805)
|
|
(2,803)
|
|
(1,785)
|
|
(851)
|
|
(387)
|
|
(19,631)
|
|
Income (loss) before
income taxes and noncontrolling interest
|
77,284
|
|
2,826
|
|
2,503
|
|
(11,883)
|
|
8,217
|
|
78,947
|
|
Income tax expense
(benefit)
|
17,057
|
|
(3)
|
|
680
|
|
(2,849)
|
|
2,129
|
|
17,014
|
|
Net income
(loss)
|
60,227
|
|
2,829
|
|
1,823
|
|
(9,034)
|
|
6,088
|
|
61,933
|
|
Less net income (loss)
attributable to non controlling interests
|
12,758
|
|
2,837
|
|
(74)
|
|
(1,085)
|
|
150
|
|
14,586
|
|
Net income (loss)
attributable to LHC Group, Inc.'s common stockholder
|
$
47,469
|
|
$
(8)
|
|
$
1,897
|
|
$ (7,949)
|
|
$
5,938
|
|
$ 47,347
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts
in thousands)
(Unaudited)
|
|
|
Nine months ended
September 30, 2021
|
|
Home health
services
|
|
Hospice
services
|
|
Home and
community-
based
services
|
|
Facility-
based
services
|
|
HCI
|
|
Total
|
|
Net service
revenue
|
$
1,157,061
|
|
$
209,191
|
|
$
143,332
|
|
$ 96,814
|
|
$ 29,795
|
|
$ 1,636,193
|
|
Cost of service revenue
(excluding depreciation and amortization)
|
663,137
|
|
129,848
|
|
103,941
|
|
65,360
|
|
9,720
|
|
972,006
|
|
General and
administrative expenses
|
369,337
|
|
58,789
|
|
35,216
|
|
33,213
|
|
10,199
|
|
506,754
|
|
Impairment of
intangibles and other
|
937
|
|
—
|
|
—
|
|
—
|
|
—
|
|
937
|
|
Operating income
(loss)
|
123,650
|
|
20,554
|
|
4,175
|
|
(1,759)
|
|
9,876
|
|
156,496
|
|
Interest
expense
|
(1,099)
|
|
(195)
|
|
(143)
|
|
(73)
|
|
(31)
|
|
(1,541)
|
|
Income (loss) before
income taxes and noncontrolling interest
|
122,551
|
|
20,359
|
|
4,032
|
|
(1,832)
|
|
9,845
|
|
154,955
|
|
Income tax expense
(benefit)
|
26,003
|
|
4,221
|
|
889
|
|
(649)
|
|
2,445
|
|
32,909
|
|
Net income
(loss)
|
96,548
|
|
16,138
|
|
3,143
|
|
(1,183)
|
|
7,400
|
|
122,046
|
|
Less net income (loss)
attributable to non controlling interests
|
17,506
|
|
3,308
|
|
441
|
|
792
|
|
(37)
|
|
22,010
|
|
Net income (loss)
attributable to LHC Group, Inc.'s common stockholder
|
$
79,042
|
|
$ 12,830
|
|
$
2,702
|
|
$ (1,975)
|
|
$
7,437
|
|
$
100,036
|
|
RECONCILIATION OF
ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP,
INC.
(Amounts in
thousands)
(Unaudited)
|
|
|
|
Three Months
Ended
September 30,
|
Nine
Months
Ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net income attributable
to LHC Group, Inc.'s common stockholders
|
|
$
|
17,309
|
|
|
$
|
27,734
|
|
|
$
|
47,347
|
|
|
$
|
100,036
|
|
|
Add (net of
tax):
|
|
|
|
|
|
|
|
|
|
Acquisition, de novo and legal expenses
(1)
|
|
4,244
|
|
|
6,875
|
|
|
14,034
|
|
|
10,352
|
|
|
Closures/relocations/consolidations (2)
|
|
3,970
|
|
|
369
|
|
|
9,112
|
|
|
1,548
|
|
|
COVID-19
impact:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPE, supplies and
other expenses (3)
|
|
—
|
|
|
10,290
|
|
|
—
|
|
|
27,141
|
|
|
ERP
implementation (4)
|
|
1,360
|
|
|
498
|
|
|
5,498
|
|
|
1,226
|
|
|
Cost
improvement initiatives (5)
|
|
3,621
|
|
|
—
|
|
|
13,825
|
|
|
—
|
|
|
Cost
report and contract settlements (6)
|
|
2,063
|
|
|
—
|
|
|
6,026
|
|
|
—
|
|
|
Hurricane
Ida (7)
|
|
—
|
|
|
844
|
|
|
—
|
|
|
844
|
|
|
Gain on
sale of asset (8)
|
|
—
|
|
|
(951)
|
|
|
—
|
|
|
(951)
|
|
|
Adjusted net income
attributable to LHC Group, Inc.'s common stockholders
|
|
$
|
32,567
|
|
|
$
|
45,659
|
|
|
$
|
95,842
|
|
|
$
|
140,196
|
|
|
RECONCILIATION OF
ADJUSTED
NET INCOME
ATTRIBUTABLE TO LHC GROUP,
INC. PER DILUTED
SHARE
(Unaudited)
|
|
|
|
Three Months
Ended
September 30,
|
Nine
Months
Ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net income attributable
to LHC Group, Inc.'s common stockholders
|
|
$
|
0.56
|
|
|
$
|
0.88
|
|
|
$
|
1.55
|
|
|
$
|
3.18
|
|
|
Add (net of
tax):
|
|
|
|
|
|
|
|
|
|
Acquisition, de novo and legal expenses
(1)
|
|
0.14
|
|
|
0.22
|
|
|
0.46
|
|
|
0.33
|
|
|
Closures/relocations/consolidations (2)
|
|
0.13
|
|
|
0.01
|
|
|
0.30
|
|
|
0.05
|
|
|
COVID-19
impact:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPE, supplies and
other expenses (3)
|
|
—
|
|
|
0.33
|
|
|
—
|
|
|
0.87
|
|
|
ERP
implementation (4)
|
|
0.04
|
|
|
0.01
|
|
|
0.17
|
|
|
0.03
|
|
|
Cost
improvement initiatives (5)
|
|
0.12
|
|
|
—
|
|
|
0.45
|
|
|
—
|
|
|
Cost
report and contract settlements (6)
|
|
0.07
|
|
|
—
|
|
|
0.20
|
|
|
—
|
|
|
Hurricane
Ida (7)
|
|
—
|
|
|
0.03
|
|
|
—
|
|
|
0.03
|
|
|
Gain on
sale of asset (8)
|
|
—
|
|
|
(0.03)
|
|
|
—
|
|
|
(0.03)
|
|
|
Adjusted net income
attributable to LHC Group, Inc.'s common stockholders
|
|
$
|
1.06
|
|
|
$
|
1.45
|
|
|
$
|
3.13
|
|
|
$
|
4.46
|
|
|
RECONCILIATION OF
EBITDA AND ADJUSTED EBITDA
(Amounts in
thousands)
(Unaudited)
|
|
|
|
Three Months
Ended
September 30,
|
Nine Months
Ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net income attributable
to LHC Group, Inc.'s common stockholders
|
|
$
|
17,309
|
|
|
$
|
27,734
|
|
|
$
|
47,347
|
|
|
$
|
100,036
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
6,966
|
|
|
10,150
|
|
|
17,014
|
|
|
32,909
|
|
|
Interest
expense, net
|
|
9,053
|
|
|
1,135
|
|
|
19,631
|
|
|
1,541
|
|
|
Depreciation and amortization
|
|
5,759
|
|
|
5,358
|
|
|
17,483
|
|
|
14,899
|
|
|
Adjustment
items (*)
|
|
21,167
|
|
|
24,415
|
|
|
66,304
|
|
|
54,524
|
|
|
Adjusted
EBITDA
|
|
$
|
60,254
|
|
|
$
|
68,792
|
|
|
$
|
167,779
|
|
|
$
|
203,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Adjustment items
(pre-tax):
|
|
|
|
|
|
|
|
|
|
Acquisition, de novo and legal expenses
(1)
|
|
5,888
|
|
|
9,364
|
|
|
19,195
|
|
|
14,072
|
|
|
Closures/relocation/consolidations (2)
|
|
5,508
|
|
|
502
|
|
|
12,491
|
|
|
2,098
|
|
|
COVID-19 PPE, supplies and other
expenses (3)
|
|
—
|
|
|
14,016
|
|
|
—
|
|
|
36,835
|
|
|
ERP
implementation (4)
|
|
1,886
|
|
|
679
|
|
|
7,505
|
|
|
1,665
|
|
|
Cost
improvement initiatives (5)
|
|
5,023
|
|
|
—
|
|
|
18,888
|
|
|
—
|
|
|
Cost
report and contract settlements (6)
|
|
2,862
|
|
|
—
|
|
|
8,225
|
|
|
—
|
|
|
Hurricane
Ida (7)
|
|
—
|
|
|
1,150
|
|
|
—
|
|
|
1,150
|
|
|
Gain on
sale of asset (8)
|
|
—
|
|
|
(1,296)
|
|
|
—
|
|
|
(1,296)
|
|
|
Total
adjustments
|
|
$
|
21,167
|
|
|
$
|
24,415
|
|
|
$
|
66,304
|
|
|
$
|
54,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Expenses and other costs associated with recently announced or
completed acquisitions, de novos and the pending acquisition
by UnitedHealth Group. ($5.9 million
pre-tax in the three months ended September
30, 2022 and $19.2 million
pre-tax in the nine months ended September
30, 2022; $9.4 million and
$14.1 million pre-tax in the three
and nine months ended September 30,
2021, respectively).
- Loss on the sale of an asset and other expenses associated with
a closure or consolidation, including impairment ($5.5 million pre-tax in the three months ended
September 30, 2022 and $12.5 million in the nine months ended
September 30, 2022; $0.5 million and $2.1
million pre-tax in the three and nine months ended
September 30, 2021,
respectively).
- COVID-19 related expenses for purchases of personal protective
equipment (PPE), supplies and wage adjustments (No adjustments were
made in the three months and nine months ended September 30, 2022; $14.0
million and $36.8 million
pre-tax in the three and nine months ended September 30, 2021, respectively).
- Expenses and other costs associated with the implementation of
an Enterprise Resource Planning software ($1.9 million pre-tax in the three months ended
September 30, 2022 and $7.5 million pre-tax in the nine months ended
September 30, 2022; $0.7 million and $1.7
million pre-tax in the three and nine months ended
September 30, 2021,
respectively).
- Expenses associated with cost improvement initiatives
implemented in the first three quarters of 2022, which consisted of
contract terminations and general and administrative cost
reductions ($5.0 million pre-tax in
the three months ended September 30,
2022 and $18.9 million pre-tax
in the nine months ended September 30,
2022).
- Expenses associated with a 2004 cost report settlement along
with other contract settlements ($1.2
million pre-tax in the three months ended September 30, 2022 and $8.2 million in the nine months ended
September 30, 2022).
- Direct recovery costs associated with Hurricane Ida
($1.2 million pre-tax in the three
and nine months ended September 30,
2021).
- As of December 31, 2020, the
Company's assets held for sale was $1.9
million, which consisted of one hospice facility in
Knoxville, Tennessee. The Company sold the property during
the third quarter of 2021 for $3.2
million.
|
Contact:
|
Eric
Elliott
|
|
Senior Vice
President of Finance
|
|
(337)
233-1307
|
|
eric.elliott@lhcgroup.com
|
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SOURCE LHC Group, Inc.