Highlights:
- Net service revenue for the third quarter of 2010 increased 25.4% to $166.6 million as compared with the third quarter of 2009;
- Diluted earnings per share for the third quarter of 2010 increased 35.2% to $0.73 as compared with the third quarter of 2009;
- Organic growth for total new admissions for the third quarter of 2010 was 9.6% as compared with the third quarter of 2009; and
- During the third quarter, 110 of the Company's agencies were surveyed by the Joint Commission. Joint Commission accreditation and certification is recognized nationwide as a symbol of quality.
LAFAYETTE, La., Nov. 1, 2010 (GLOBE NEWSWIRE) -- LHC Group, Inc. (Nasdaq:LHCG), a national provider of home health and hospice services, announced today its financial results for the three and nine months ended September 30, 2010.
Financial Results for the Third Quarter
- Net service revenue for the third quarter of 2010 increased 25.4% to $166.6 million compared with $132.9 million for the same period in 2009.
- Days sales outstanding, or DSO, for the three months ended September 30, 2010, was 43 days as compared with 48 days for the same period in 2009.
- Net income attributable to LHC Group for the third quarter of 2010 totaled $13.3 million, an increase of 35.3%, compared with $9.8 million for the same period in 2009.
- Diluted earnings per share was $0.73 for the third quarter of 2010, an increase of 35.2%, compared with $0.54 for the same period in 2009.
In commenting on the results, Keith G. Myers, President and Chief Executive Officer of LHC Group, said, "I am extremely proud of the strong and well balanced operating results our team has delivered once again during the third quarter. It is a real tribute to the strength of our entire organization when we are able to exceed the expectations of all stakeholders while, at the same time, having 110 of our agencies complete Joint Commission surveys. I would like to congratulate and thank our entire team 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."
Financial Results for the Nine Months
- Net service revenue for the nine months ended September 30, 2010, increased 19.6% to $467.0 million compared with $390.5 million for the same period in 2009.
- Net income attributable to LHC Group for the nine months ended September 30, 2010, totaled $37.3 million, an increase of 19.7%, compared with $31.2 million for the same period in 2009.
- Diluted earnings per share was $2.05 for the nine months ended September 30, 2010, an increase of 18.5%, compared with $1.73 for the same period in 2009.
Share Repurchase Program
The Board of Directors of LHC Group has authorized the repurchase of up to $50 million of LHC Group's outstanding common stock. Under this plan, the Company can repurchase shares from time to time for cash in open market purchases, block transactions and privately negotiated transactions in accordance with applicable federal securities laws. This share repurchase program may be modified, suspended, terminated or extended by the Company at any time without prior notice.
In commenting on the stock repurchase plan, Mr. Myers added, "This stock repurchase program demonstrates the confidence we have in our company and shows our commitment to delivering long-term shareholder value. Our strong balance sheet enables us to actively invest cash in areas that we believe will drive future value for shareholders, such as acquisitions and stock repurchases. We intend to evaluate each share repurchase using the same discipline, analysis and process that have been so successful for us in our acquisition strategy. While stock price will be one factor in our ongoing repurchase analysis, we will also review many other factors – all with the goal of continuing to deliver the best possible return for our shareholders."
Guidance
The Company is raising its previously stated guidance range issued on April 28, 2010, with respect to full‑year net service revenue from the original range of $615 million to $625 million to a range of $625 million to $635 million. The Company is reaffirming guidance of fully diluted earnings per share in the range of $2.75 to $2.85. This guidance does not take into account the impact of any future acquisitions or share repurchases, if made, or de novo locations, if opened. This guidance also does not include any future legal or other expenses associated with responding to the Securities and Exchange Commission or Senate Finance Committee inquiries.
Conference Call
LHC Group will host a conference call on Tuesday, November 2, 2010, at 11:00 a.m. Eastern time. The toll-free number to call for this interactive teleconference is (800) 677-1840 (international callers should call 973-890-8327). A telephonic replay of the conference call will be available through midnight on Thursday, November 4, 2010, by dialing (800) 642-1687 (international callers should call 706-645-9291) and entering confirmation number 82945056. A live broadcast of LHC Group's conference call will be available under the Investor Relations section of the Company's website, . 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 healthcare 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 and hospice 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, 2009, 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.
CONTACT: LHC Group Eric Elliott, Vice President of Investor Relations (337) 233-1307 eric.elliott@lhcgroup.com