updated 4/18/2011 4:47:29 PM ET 2011-04-18T20:47:29

CLEARWATER, Fla., April 18, 2011 (GLOBE NEWSWIRE) -- Lincare Holdings Inc. (Nasdaq:LNCR) today announced financial results for the first quarter ended March 31, 2011.

For the quarter ended March 31, 2011, net revenues were $431.6 million, a 5.2% increase over net revenues of $410.0 million for the first quarter of 2010. The Company estimates that the 5.2% increase in net revenues in the first quarter of 2011 was comprised of approximately 9.3% internal and acquisition growth offset by approximately 4.1% negative impact from $16.7 million of Medicare payment changes during the first quarter of 2011. Net income for the quarter ended March 31, 2011, was $46.4 million, a 6.3% increase over net income of $43.6 million for the first quarter of 2010. Diluted earnings per share were $0.49 for the quarter ended March 31, 2011, an 8.3% increase over diluted earnings per share of $0.45 for the comparable prior year period.

John P. Byrnes, Lincare's Chief Executive Officer, said, "We are pleased with Lincare's operating and financial performance in the first quarter of 2011. As the year progresses, we look forward to building on our market share gains and driving earnings growth through organic expansion, selective acquisitions and other strategic opportunities."

Lincare generated $81.3 million of cash from operating activities during the first quarter of 2011 and invested $24.0 million in net capital expenditures and $20.6 million in business acquisitions. As of March 31, 2011, total long-term obligations, including current installments, were $509.2 million and cash and investments were $173.6 million.

On February 21, 2011, Lincare acquired a specialty pharmacy business with annual revenues of approximately $82 million.

Lincare, headquartered in Clearwater, Florida, is one of the nation's largest providers of respiratory therapy and other services to patients in the home. The Company provides services and equipment to more than 785,000 customers in 48 states through 1,093 local centers.

Statements in this release concerning future results, performance or expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All forward-looking statements included in this document are based upon information available to Lincare as of the date hereof and Lincare assumes no obligation to update any such forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause Lincare's actual results, levels of activity, performance or achievements to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statements. In some cases, forward-looking statements that involve risks and uncertainties contain terminology such as "may," "will," "should," "could," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or variations of these terms or other comparable terminology.

Key factors that have an impact on Lincare's ability to attain any estimates contained in this release include potential reductions in reimbursement rates by government and other third party payors, changes in reimbursement policies, the demand for Lincare's products and services, the availability of appropriate acquisition candidates and Lincare's ability to successfully complete and integrate acquisitions, efficient operation of Lincare's existing and future operating facilities, regulation and/or regulatory action affecting Lincare or its business, economic and competitive conditions, access to borrowed and/or equity capital on favorable terms and other risks described in the filings of Lincare with the Securities and Exchange Commission.

In developing its forward-looking statements, Lincare has made certain assumptions relating to reimbursement rates and policies, internal growth and acquisitions and the outcome of various legal and regulatory proceedings. If the assumptions used by Lincare differ materially from what actually occurs, then actual results could vary significantly from the performance projected in the forward-looking statements. Lincare is under no duty to update any of the forward-looking statements after the date of this release.

 
LINCARE HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
(In thousands, except share and per share data)
(Unaudited)
     
  For the three months ended
  March 31,

2011
March 31,

2010
     
     
Net revenues  $ 431,567  $ 410,040
Costs and expenses:    
Cost of goods and services 124,209 110,926
Operating expenses 101,907 98,527
Selling, general and administrative expenses 82,879 84,051
Bad debt expense 8,631 6,151
Depreciation and amortization expense 29,317 29,526
  346,943 329,181
     
Operating income 84,624 80,859
     
Other income (expense):    
Interest income 203 93
Interest expense (9,258) (8,934)
  (9,055) (8,841)
     
Income before income taxes 75,569 72,018
Income tax expense 29,192 28,382
     
Net income  $ 46,377  $ 43,636
     
Basic - earnings per common share  $ 0.50  $ 0.46
     
Diluted - earnings per common share  $ 0.49  $ 0.45
     
Dividends declared per common share  $ 0.20  $ 0.00 
     
Weighted average number of common

shares outstanding
92,977,984 95,710,461
     
Weighted average number of common

shares and common share equivalents

outstanding
95,465,833 97,307,220
 
LINCARE HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
     
  March 31,

2011
December 31,

2010
ASSETS    
     
Current assets:    
Cash and cash equivalents  $ 133,607  $ 164,203
Short-term investments 40,000 40,000
Restricted cash 0 345
Accounts receivable, net 216,796 186,001
Income tax receivable 0 9,443
Inventories 14,163 13,276
Prepaid and other current assets 3,467 3,542
Deferred income taxes 27,293 26,488
Total current assets 435,326 443,298
     
Property and equipment, net 336,153 338,778
Other assets:    
Goodwill 1,283,078 1,258,065
Other 18,097 7,690
Total other assets 1,301,175 1,265,755
     
Total assets  $ 2,072,654  $ 2,047,831
     
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Current liabilities:    
Current installments of long-term obligations  $ 8,744  $ 619
Accounts payable 64,536 64,078
Accrued expenses:    
Compensation and benefits 42,498 39,500
Liability insurance 18,097 19,052
Other current liabilities 54,651 51,501
Income taxes payable 5,768 0
Total current liabilities 194,294 174,750
     
Long-term obligations, net, excluding current installments 500,485 494,271
Deferred income taxes and other taxes 395,448 381,061
Total liabilities 1,090,227 1,050,082
     
Commitments and contingencies    
     
Stockholders' equity:    
Common stock 947 963
Additional paid-in capital 687,753 681,988
Retained earnings 293,727 314,798
Total stockholders' equity 982,427 997,749
     
Total liabilities and stockholders' equity  $ 2,072,654  $ 2,047,831
CONTACT: Paul G. Gabos
         (727) 530-7700

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