LAFAYETTE, La., March 02, 2016 (GLOBE NEWSWIRE) -- LHC Group, Inc. (NASDAQ:LHCG), a national provider of home health, hospice, community-based and comprehensive post-acute healthcare services, today announced its financial results for the three months and year ended December 31, 2015.
Financial Results for the Fourth Quarter
- Net service revenue increased 13.2% to $219.0 million for the fourth quarter of 2015 compared with $193.4 million for the fourth quarter of 2014.
- Net income attributable to LHC Group for the fourth quarter of 2015 was $7.7 million, or $0.44 per diluted share, compared with $5.5 million, or $0.32 per diluted share, in the same period of 2014.
- Adjusted net income attributable to LHC Group increased 21.0% to $9.3 million and 17.8% to $0.53 per diluted share for the fourth quarter of 2015 from $7.7 million and $0.45 per diluted share for the fourth quarter of 2014.(1)
- Total comparable-quarter growth in admissions for all service lines was 7.7%.
- Total comparable-quarter organic growth in home health admissions was 4.0%.
Financial Results for the Year
- Net service revenue grew 11.3% to $816.4 million for 2015 compared with $733.6 million for 2014.
- Net income attributable to LHC Group for 2015 was $32.3 million, or $1.84 per diluted share.
- Adjusted net income attributable to LHC Group for 2015 increased 41.9% to $34.1 million and 39.6% to $1.94 per diluted share.(1)
- Total growth in admissions for all service lines for 2015 was 8.3% compared with 2014.
- Total organic growth in home health admissions for 2015 was 3.4% compared with 2014.
- General and administrative expense improved 140 basis points to 30.5% of revenue for 2015.
(1) See "Reconciliation of Non-GAAP Measures - Adjusted net income attributable to LHC Group" to GAAP results on page 9.
"LHC Group produced substantial profitable growth for the fourth quarter of 2015 to complete a year of strong financial performance," said Keith G. Myers, LHC Group's chairman and CEO. "The double-digit increase in our revenues reflected continued meaningful organic revenue growth, which, at 5.9%, was our strongest quarterly performance for the year. Our acquisition strategy also again drove our results. For 2015, we completed seven acquisition transactions, for nine home health agencies, 17 hospice agencies and two community-based services agencies, which generate aggregate annualized revenue of $64.6 million. These transactions included the fourth quarter acquisitions of Halcyon Hospice with approximately $41 million of annualized revenue and two home health agencies in Kentucky with approximately $7.6 million in aggregate annualized revenue. In addition, our ongoing cost containment efforts, combined with increased revenue-driven operating leverage, produced a 60 basis-point improvement in G&A as a percentage of revenue for the fourth quarter.
"I congratulate our team for these results, even as we continued to achieve above-industry quality scores. We expect our growth momentum to continue in 2016, as we capitalize on opportunities for further organic growth and evaluate a very robust pipeline of potential acquisition opportunities. With cash flow from operations for 2015 of $60 million and availability under our credit agreement of $117.1 million at year end, we are confident of our ability to execute our growth plans for 2016.
"Over the longer term, we also believe LHC Group is well positioned for the shift in the reimbursement system to value-based payment models, which incentivize payors to leverage the capabilities of high quality home health providers. We are already seeing an increase in the volume and acuity of our admissions as payors shift patients from more intensive and more expensive clinical settings, and we are already making a difference in the lives of our patients and their families with our innovative physician-led clinical protocols. With this shift intensifying over the coming years, we expect to be a leading partner of choice for health systems and payors as they seek to improve their patients’ non-acute care. Based on LHC Group’s demonstrated quality of care, scale and market density, innovative, data-driven technology capabilities, financial strength and proven acquisition and integration expertise, we expect to leverage these favorable market dynamics to produce further long-term growth in earnings and shareholder value."
FY 2016 Guidance
Fiscal year 2016 net service revenue is expected to be in the range of $870 million to $890 million, and fully diluted earnings per share are expected to be in the range of $1.90 to $2.00. This guidance includes:
(1) the negative impact from the Medicare Home Health Prospective Payment System for 2016, which is expected to have an approximate 2% impact, or $9.5 million reduction to Medicare Home Health revenue and $0.32 reduction in fully diluted earnings per share for 2016; and
(2) the negative impact from the Medicare Long-Term Care Hospital (LTCH) Prospective Payment System (PPS), which establishes two different types of LTCH PPS payment rates depending on whether the patient meets certain clinical criteria: the LTCH PPS standard Federal payment rate and a new LTCH PPS site neutral payment rate comparable to the IPPS payment rates. The effect from the LTCH PPS is a 4.9% impact, or an expected $3.6 million reduction to Medicare LTCH revenue or $0.06 net reduction in fully diluted earnings per share for 2016 after implementation strategies.
The Company's financial guidance does not take into account the impact of other future reimbursement changes, if any, future acquisitions, if made, de novo locations, if opened, or future legal expenses, if necessary.
Conference Call
LHC Group will host a conference call on Thursday, March 3, 2016, at 11:00 a.m. Eastern time to discuss its fourth quarter and full year 2015 results. The toll-free number to call for this interactive teleconference is (866) 393‑1608 (international callers should call (973) 890-8327). A telephonic replay of the conference call will be available through midnight on Thursday, March 10, 2016, by dialing (855) 859‑2056 (international callers should call (404) 537-3406) and entering confirmation number 19231055. A live broadcast of LHC Group's conference call will be available under the Investor Relations section of the Company's website, www.LHCgroup.com. 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 post-acute healthcare services, providing quality, cost-effective healthcare to patients primarily within the comfort and privacy of their home or place of residence. LHC Group provides a comprehensive array of healthcare services through home health, hospice, community‑based services agencies and long-term acute care hospitals.
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, 2014, 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.
| LHC GROUP, INC. AND SUBSIDIARIES | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (Amounts in thousands, except share data) | ||||||
| (Unaudited) | ||||||
| Dec. 31, 2015 | Dec. 31, 2014 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash | $ | 6,139 | $ | 531 | ||
| Receivables: | ||||||
| Patient accounts receivable, less allowance for uncollectible accounts of $26,712 and $18,582, respectively | 110,350 | 97,498 | ||||
| Other receivables | 2,093 | 1,334 | ||||
| Amounts due from governmental entities | 1,081 | 1,164 | ||||
| Total receivables, net | 113,524 | 99,996 | ||||
| Deferred income taxes | – | 11,381 | ||||
| Prepaid income taxes | 1,949 | 3,093 | ||||
| Prepaid expenses | 10,833 | 8,724 | ||||
| Other current assets | 5,835 | 3,777 | ||||
| Receivable due from insurance carrier | 550 | 7,850 | ||||
| Total current assets | 138,830 | 135,352 | ||||
| Property, building and equipment, net of accumulated depreciation of $38,907 and $44,683, respectively | 38,096 | 34,787 | ||||
| Goodwill | 290,694 | 240,019 | ||||
| Intangible assets, net of accumulated amortization of $8,496 and $6,560, respectively | 96,405 | 79,685 | ||||
| Other assets | 2,029 | 1,896 | ||||
| Total assets | $ | 566,054 | $ | 491,739 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable and other accrued liabilities | $ | 24,586 | $ | 19,278 | ||
| Salaries, wages and benefits payable | 28,098 | 22,466 | ||||
| Self-insurance reserve | 9,636 | 6,559 | ||||
| Current portion of long-term debt | 241 | 230 | ||||
| Amounts due to governmental entities | 7,055 | 4,459 | ||||
| Legal settlement payable | 550 | 7,850 | ||||
| Total current liabilities | 70,166 | 60,842 | ||||
| Deferred income taxes | 23,729 | 33,592 | ||||
| Income tax payable | 3,415 | 3,415 | ||||
| Revolving credit facility | 98,000 | 60,000 | ||||
| Long-term debt, less current portion | 543 | 778 | ||||
| Total liabilities | 195,853 | 158,627 | ||||
| Noncontrolling interest – redeemable | 12,408 | 11,517 | ||||
| Stockholders’ equity: | ||||||
| Common stock – $0.01 par value: 40,000,000 shares authorized; 22,224,423 and 22,015,211 shares issued in 2015 and 2014, respectively | 222 | 220 | ||||
| Treasury stock – 4,776,560 and 4,734,363 shares at cost, respectively | (37,139 | ) | (35,660 | ) | ||
| Additional paid-in capital | 113,793 | 108,708 | ||||
| Retained earnings | 277,706 | 245,371 | ||||
| Total LHC Group, Inc. stockholders’ equity | 354,582 | 318,639 | ||||
| Noncontrolling interest – non-redeemable | 3,211 | 2,956 | ||||
| Total stockholders’ equity | 357,793 | 321,595 | ||||
| Total liabilities and stockholders’ equity | $ | 566,054 | $ | 491,739 | ||
| LHC GROUP, INC. AND SUBSIDIARIES | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| (Amounts in thousands, except share and per share data) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Net service revenue | $ | 218,993 | $ | 193,371 | $ | 816,366 | $ | 733,632 | ||||
| Cost of service revenue | 128,940 | 112,792 | 480,878 | 434,775 | ||||||||
| Gross margin | 90,053 | 80,579 | 335,488 | 298,857 | ||||||||
| Provision for bad debts | 4,369 | 4,081 | 19,243 | 15,780 | ||||||||
| General and administrative expenses | 68,106 | 61,287 | 248,629 | 233,945 | ||||||||
| Impairment of intangibles and other | 1,025 | 3,646 | 1,273 | 3,646 | ||||||||
| Operating income | 16,553 | 11,565 | 66,343 | 45,486 | ||||||||
| Interest expense | (769 | ) | (625 | ) | (2,302 | ) | (2,486 | ) | ||||
| Non-operating income | 100 | 106 | 457 | 265 | ||||||||
| Income before income taxes and noncontrolling interest | 15,884 | 11,046 | 64,498 | 43,265 | ||||||||
| Income tax expense | 5,752 | 3,314 | 22,848 | 14,513 | ||||||||
| Net income | 10,132 | 7,732 | 41,650 | 28,752 | ||||||||
| Less net income attributable to noncontrolling interest | 2,398 | 2,198 | 9,315 | 6,915 | ||||||||
| Net income attributable to LHC Group, Inc.’s common stockholders | $ | 7,734 | $ | 5,534 | $ | 32,335 | $ | 21,837 | ||||
| Earnings per share – basic: | ||||||||||||
| Net income attributable to LHC Group, Inc.’s common stockholders | $ | 0.44 | $ | 0.32 | $ | 1.86 | $ | 1.27 | ||||
| Earnings per share – diluted: | ||||||||||||
| Net income attributable to LHC Group, Inc.’s common stockholders | $ | 0.44 | $ | 0.32 | $ | 1.84 | $ | 1.26 | ||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 17,447,691 | 17,274,677 | 17,405,379 | 17,229,026 | ||||||||
| Diluted | 17,647,483 | 17,419,423 | 17,547,531 | 17,315,333 | ||||||||
| LHC GROUP, INC. AND SUBSIDIARIES | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| (Amounts in thousands) | ||||||
| (Unaudited) | ||||||
| Year Ended December 31, | ||||||
| 2015 | 2014 | |||||
| Operating activities | ||||||
| Net income | $ | 41,650 | $ | 28,752 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Depreciation and amortization expense | 11,955 | 9,571 | ||||
| Provision for bad debts | 19,243 | 15,780 | ||||
| Stock based compensation expense | 4,225 | 4,094 | ||||
| Deferred income taxes | 1,518 | 2,402 | ||||
| Impairment of intangibles and other | 1,990 | 3,650 | ||||
| Changes in operating assets and liabilities, net of acquisitions: | ||||||
| Receivables | (27,951 | ) | (16,372 | ) | ||
| Prepaid expenses and other assets | (3,793 | ) | 191 | |||
| Prepaid income taxes | 441 | 911 | ||||
| Accounts payable and accrued expenses | 10,526 | (10,460 | ) | |||
| Net amounts due to/from governmental entities | 130 | 138 | ||||
| Net cash provided by operating activities | 59,934 | 38,657 | ||||
| Investing activities | ||||||
| Purchases of property, building and equipment | (13,283 | ) | (8,105 | ) | ||
| Cash paid for acquisitions, primarily goodwill and intangible assets | (70,572 | ) | (73,933 | ) | ||
| Net cash used in investing activities | (83,855 | ) | (82,038 | ) | ||
| Financing activities | ||||||
| Proceeds from line of credit | 83,000 | 75,000 | ||||
| Payments on line of credit | (45,000 | ) | (37,000 | ) | ||
| Proceeds from employee stock purchase plan | 782 | 782 | ||||
| Payments on debt | (233 | ) | (202 | ) | ||
| Noncontrolling interest distributions | (8,324 | ) | (6,843 | ) | ||
| Payment of deferred financing fees | – | (852 | ) | |||
| Excess tax benefits from vesting of restricted stock | 914 | 124 | ||||
| Redemption of treasury shares | (1,479 | ) | (945 | ) | ||
| Purchase of additional noncontrolling interest | (275 | ) | (359 | ) | ||
| Proceeds from exercise of stock options | 144 | – | ||||
| Sale of noncontrolling interest | – | 193 | ||||
| Net cash provided by financing activities | 29,529 | 29,898 | ||||
| Change in cash | 5,608 | (13,483 | ) | |||
| Cash at beginning of period | 531 | 14,014 | ||||
| Cash at end of period | $ | 6,139 | $ | 531 | ||
| Supplemental disclosures of cash flow information | ||||||
| Interest paid | $ | 1,870 | $ | 2,461 | ||
| Income taxes paid | $ | 20,361 | $ | 11,781 | ||
| LHC GROUP, INC. AND SUBSIDIARIES | |||||||||||||||
| SEGMENT INFORMATION | |||||||||||||||
| (Amounts in thousands) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended December 31, 2015 | |||||||||||||||
| Home Health Services | Hospice Services | Community- Based Services | Facility- Based Services | Total | |||||||||||
| Net service revenue | $ | 158,279 | $ | 31,166 | $ | 10,488 | $ | 19,060 | $ | 218,993 | |||||
| Cost of service revenue | 92,147 | 18,271 | 7,444 | 11,078 | 128,940 | ||||||||||
| Provision for bad debts | 3,627 | 306 | 384 | 52 | 4,369 | ||||||||||
| General and administrative expenses | 49,352 | 11,096 | 2,155 | 5,503 | 68,106 | ||||||||||
| Impairment of intangibles and other | 1,025 | – | – | – | 1,025 | ||||||||||
| Operating income | 12,128 | 1,493 | 505 | 2,427 | 16,553 | ||||||||||
| Interest expense | (607 | ) | (85 | ) | (8 | ) | (69 | ) | (769 | ) | |||||
| Non-operating income | 89 | 13 | 1 | (3 | ) | 100 | |||||||||
| Income before income taxes and noncontrolling interest | 11,610 | 1,421 | 498 | 2,355 | 15,884 | ||||||||||
| Income tax expense | 4,173 | 485 | 230 | 864 | 5,752 | ||||||||||
| Net income | 7,437 | 936 | 268 | 1,491 | 10,132 | ||||||||||
| Less net income attributable to noncontrolling interest | 1,839 | 299 | (43 | ) | 303 | 2,398 | |||||||||
| Net income attributable to LHC Group, Inc.'s common stockholders | $ | 5,598 | $ | 637 | $ | 311 | $ | 1,188 | $ | 7,734 | |||||
| Total assets | $ | 394,392 | $ | 101,641 | $ | 31,235 | $ | 38,786 | $ | 566,054 | |||||
| Three Months Ended December 31, 2014 | |||||||||||||||
| Home Health Services | Hospice Services | Community- Based Services | Facility- Based Services | Total | |||||||||||
| Net service revenue | $ | 147,637 | $ | 18,260 | $ | 9,439 | $ | 18,035 | $ | 193,371 | |||||
| Cost of service revenue | 84,473 | 10,325 | 6,821 | 11,173 | 112,792 | ||||||||||
| Provision for bad debts | 3,104 | 442 | 366 | 169 | 4,081 | ||||||||||
| General and administrative expenses | 48,821 | 4,888 | 2,264 | 5,314 | 61,287 | ||||||||||
| Impairment of intangibles and other | 3,269 | 202 | – | 175 | 3,646 | ||||||||||
| Operating income | 7,970 | 2,403 | (12 | ) | 1,204 | 11,565 | |||||||||
| Interest expense | (495 | ) | (63 | ) | (4 | ) | (63 | ) | (625 | ) | |||||
| Non-operating income | 99 | 3 | 1 | 3 | 106 | ||||||||||
| Income before income taxes and noncontrolling interest | 7,574 | 2,343 | (15 | ) | 1,144 | 11,046 | |||||||||
| Income tax expense | 2,319 | 558 | 22 | 415 | 3,314 | ||||||||||
| Net income | 5,255 | 1,785 | (37 | ) | 729 | 7,732 | |||||||||
| Less net income attributable to noncontrolling interest | 1,780 | 294 | (24 | ) | 148 | 2,198 | |||||||||
| Net income attributable to LHC Group, Inc.’s common stockholders | $ | 3,475 | $ | 1,491 | $ | (13 | ) | $ | 581 | $ | 5,534 | ||||
| Total assets | $ | 386,511 | $ | 34,847 | $ | 34,027 | $ | 36,354 | $ | 491,739 | |||||
| LHC GROUP, INC. AND SUBSIDIARIES | |||||||||||||||
| SEGMENT INFORMATION (Continued) | |||||||||||||||
| (Amounts in thousands) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Year Ended December 31, 2015 | |||||||||||||||
| Home Health Services | Hospice Services | Community- Based Services | Facility- Based Services | Total | |||||||||||
| Net service revenue | $ | 613,188 | $ | 85,854 | $ | 41,202 | $ | 76,122 | $ | 816,366 | |||||
| Cost of service revenue | 354,750 | 50,906 | 29,076 | 46,146 | 480,878 | ||||||||||
| Provision for bad debts | 15,736 | 1,002 | 1,816 | 689 | 19,243 | ||||||||||
| General and administrative expenses | 191,135 | 26,517 | 8,506 | 22,471 | 248,629 | ||||||||||
| Impairment of intangibles and other | 1,245 | – | 28 | – | 1,273 | ||||||||||
| Operating income | 50,322 | 7,429 | 1,776 | 6,816 | 66,343 | ||||||||||
| Interest expense | (1,819 | ) | (253 | ) | (23 | ) | (207 | ) | (2,302 | ) | |||||
| Non-operating income | 397 | 38 | 3 | 19 | 457 | ||||||||||
| Income before income taxes and noncontrolling interest | 48,900 | 7,214 | 1,756 | 6,628 | 64,498 | ||||||||||
| Income tax expense | 17,173 | 2,541 | 787 | 2,347 | 22,848 | ||||||||||
| Net income | 31,727 | 4,673 | 969 | 4,281 | 41,650 | ||||||||||
| Less net income attributable to noncontrolling interest | 7,424 | 1,077 | (144 | ) | 958 | 9,315 | |||||||||
| Net income attributable to LHC Group, Inc.'s common stockholders | $ | 24,303 | $ | 3,596 | $ | 1,113 | $ | 3,323 | $ | 32,335 | |||||
| Total assets | $ | 394,392 | $ | 101,641 | $ | 31,235 | $ | 38,786 | $ | 566,054 | |||||
| Year Ended December 31, 2014 | |||||||||||||||
| Home Health Services | Hospice Services | Community- Based Services | Facility- Based Services | Total | |||||||||||
| Net service revenue | $ | 564,966 | $ | 67,621 | $ | 27,698 | $ | 73,347 | $ | 733,632 | |||||
| Cost of service revenue | 329,856 | 39,804 | 19,611 | 45,504 | 434,775 | ||||||||||
| Provision for bad debts | 13,072 | 909 | 873 | 926 | 15,780 | ||||||||||
| General and administrative expenses | 187,281 | 18,882 | 6,551 | 21,231 | 233,945 | ||||||||||
| Impairment of intangibles and other | 3,269 | 202 | – | 175 | 3,646 | ||||||||||
| Operating income | 31,488 | 7,824 | 663 | 5,511 | 45,486 | ||||||||||
| Interest expense | (1,969 | ) | (249 | ) | (19 | ) | (249 | ) | (2,486 | ) | |||||
| Non-operating income | 201 | 43 | 2 | 19 | 265 | ||||||||||
| Income before income taxes and noncontrolling interest | 29,720 | 7,618 | 646 | 5,281 | 43,265 | ||||||||||
| Income tax expense | 10,999 | 1,955 | 105 | 1,454 | 14,513 | ||||||||||
| Net income | 18,721 | 5,663 | 541 | 3,827 | 28,752 | ||||||||||
| Less net income attributable to noncontrolling interest | 5,121 | 1,122 | (36 | ) | 708 | 6,915 | |||||||||
| Net income attributable to LHC Group, Inc.'s common stockholders | $ | 13,600 | $ | 4,541 | $ | 577 | $ | 3,119 | $ | 21,837 | |||||
| Total assets | $ | 386,511 | $ | 34,847 | $ | 34,027 | $ | 36,354 | $ | 491,739 | |||||
| LHC GROUP, INC. AND SUBSIDIARIES | ||||||||||||
| SELECT CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Key Data: | ||||||||||||
| Home-Health Services: | ||||||||||||
| Locations | 283 | 277 | 283 | 277 | ||||||||
| Acquired | 4 | 2 | 9 | 40 | ||||||||
| De novo | – | – | – | 3 | ||||||||
| Divested/Consolidated | (3 | ) | (11 | ) | (6 | ) | (22 | ) | ||||
| Total new admissions | 36,249 | 34,329 | 143,197 | 133,054 | ||||||||
| Medicare new admissions | 24,060 | 23,404 | 96,911 | 90,490 | ||||||||
| Average daily census | 37,060 | 36,153 | 36,752 | 35,299 | ||||||||
| Average Medicare daily census | 27,432 | 26,781 | 27,297 | 26,336 | ||||||||
| Medicare completed and billed episodes | 48,636 | 46,726 | 191,208 | 182,896 | ||||||||
| Average Medicare case mix for completed and billed Medicare episodes | 1.02 | 1.01 | 0.99 | 0.99 | ||||||||
| Average reimbursement per completed and billed Medicare episodes | $ | 2,508 | $ | 2,445 | $ | 2,475 | $ | 2,397 | ||||
| Total visits | 1,088,846 | 1,012,677 | 4,183,204 | 3,911,293 | ||||||||
| Total Medicare visits | 804,537 | 750,924 | 3,107,029 | 2,912,440 | ||||||||
| Average visits per completed and billed Medicare episodes | 16.5 | 16.1 | 16.1 | 15.9 | ||||||||
| Organic growth:(1) | ||||||||||||
| Net revenue | 5.9 | % | 2.0 | % | 4.5 | % | 1.4 | % | ||||
| Net Medicare revenue | 5.5 | % | -0.8 | % | 3.5 | % | -0.4 | % | ||||
| Total new admissions | 4.0 | % | 4.5 | % | 3.4 | % | 1.6 | % | ||||
| Medicare new admissions | 1.5 | % | 3.0 | % | 2.4 | % | 1.2 | % | ||||
| Average daily census | 0.9 | % | -0.7 | % | 0.1 | % | -3.5 | % | ||||
| Average Medicare daily census | 0.9 | % | -3.1 | % | -0.5 | % | -4.1 | % | ||||
| Medicare completed and billed episodes | 3.2 | % | -1.2 | % | 1.4 | % | 0.9 | % | ||||
| Community-Based Services: | ||||||||||||
| Locations | 13 | 12 | 13 | 12 | ||||||||
| Acquired | – | – | 2 | 6 | ||||||||
| De novo | – | – | – | – | ||||||||
| Divested/Consolidated | – | (1 | ) | (1 | ) | (1 | ) | |||||
| Average daily census | 1,423 | 1,240 | 1,124 | 984 | ||||||||
| Billable hours | 307,781 | 304,618 | 1,213,870 | 911,217 | ||||||||
| Revenue per billable hour | $ | 34.08 | $ | 30.99 | $ | 33.94 | $ | 30.40 | ||||
| Hospice-Based Services: | ||||||||||||
| Locations | 56 | 38 | 56 | 38 | ||||||||
| Acquired | 16 | – | 17 | 6 | ||||||||
| De novo | – | 1 | 2 | 1 | ||||||||
| Divested/Consolidated | (2 | ) | 1 | (1 | ) | (3 | ) | |||||
| Admissions | 2,225 | 1,412 | 6,787 | 5,546 | ||||||||
| Average daily census | 2,360 | 1,387 | 1,675 | 1,343 | ||||||||
| Patient days | 217,157 | 127,633 | 611,493 | 490,252 | ||||||||
| Average revenue per patient day | $ | 144 | $ | 143 | $ | 141 | $ | 138 | ||||
| Facility-Based Services: | ||||||||||||
| Long-term Acute Care | ||||||||||||
| Locations | 8 | 8 | 8 | 8 | ||||||||
| Patient days | 14,450 | 15,589 | 61,427 | 62,352 | ||||||||
| Average revenue per patient day | $ | 1,249 | $ | 1,115 | $ | 1,183 | $ | 1,130 | ||||
(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.
| LHC GROUP, INC. AND SUBSIDIARIES | ||||||
| RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP, INC. | ||||||
| (Amounts in thousands) | ||||||
| (Unaudited) | ||||||
| Three Months Ended Dec. 31, 2015 | Year Ended Dec. 31, 2015 | |||||
| Net income attributable to LHC Group, Inc.’s common stockholders | $ | 7,734 | $ | 32,335 | ||
| Add (net of tax): | ||||||
| Disposal costs on closures of underperforming locations (1) | 657 | 657 | ||||
| Goodwill and intangible disposal costs (2) | 605 | 749 | ||||
| Acquisition costs (3) | 341 | 341 | ||||
| Adjusted net income attributable to LHC Group, Inc.’s common stockholders | $ | 9,337 | $ | 34,082 | ||
| RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP, INC. PER DILUTED SHARE | ||||||
| (Unaudited) | ||||||
| Three Months Ended Dec. 31, 2015 | Year Ended Dec. 31, 2015 | |||||
| Net income attributable to LHC Group, Inc.’s common stockholders per diluted share | $ | 0.44 | $ | 1.84 | ||
| Add: | ||||||
| Disposal costs on closures of underperforming locations (1) | 0.04 | 0.04 | ||||
| Goodwill and intangible disposal costs (2) | 0.03 | 0.04 | ||||
| Acquisition costs (3) | 0.02 | 0.02 | ||||
| Adjusted net income attributable to LHC Group, Inc.’s common stockholders per diluted share | $ | 0.53 | $ | 1.94 | ||
(1) Disposal costs related to the closures of underperforming locations
(2) Goodwill and intangible disposal costs related to closures of underperforming locations and indefinite-lived intangible impairment related to write down of the assets.
(3) Cost associated with Halcyon and Nurses Registry acquisitions.