PRODUCES FULL-YEAR 2016 EPS OF $2.07
Establishes Financial Guidance for 2017
LAFAYETTE, La., March 08, 2017 (GLOBE NEWSWIRE) -- LHC Group, Inc. (NASDAQ:LHCG) today announced its financial results for the three months and year ended December 31, 2016.
Financial Results for the Fourth Quarter of 2016 Compared with the Fourth Quarter of 2015
- Net service revenue increased 7.5% to $235.4 million for the fourth quarter of 2016 compared with $219.0 million for the fourth quarter of 2015.
- Net income attributable to LHC Group was $9.8 million, or $0.55 per diluted share, for the latest quarter, compared with $7.7 million, or $0.44 per diluted share, for the fourth quarter of 2015. Adjusted net income attributable to LHC Group for the fourth quarter of 2016 was $0.58 per diluted share(1) compared with $0.53 per diluted share for the fourth quarter of 2015(1).
- For the fourth quarter of 2016, net income attributable to LHC Group and adjusted net income attributed to LHC Group reflect the impact of estimated net Medicare reimbursement reductions of $0.11 per diluted share compared with the fourth quarter of 2015.
- Total comparable-quarter growth in admissions for all service lines for the fourth quarter was 13.2%.
- Total comparable-quarter organic growth in home health admissions for the fourth quarter was 10.8%.
(1) See “Reconciliation of Non-GAAP Measures - Adjusted net income attributable to LHC Group” to GAAP results on page 10.
Financial Results for Full-Year 2016 Compared with Full-Year 2015
- Net service revenue increased 12.1% to $914.8 million for 2016 compared with $816.4 million for 2015.
- Net income attributable to LHC Group grew 13.1% to $36.6 million compared with $32.3 million and 12.5% to $2.07 per diluted share compared with $1.84 per diluted share. Results for 2016 include estimated net Medicare reimbursement reductions of $0.28 per diluted share compared with 2015.
- Total comparable-annual growth in admissions for all service lines for 2016 was 12.9%.
- Total comparable-annual organic growth in home health admissions for 2016 was 9.3%.
Commenting on the announcement, Keith G. Myers, LHC Group’s chairman and CEO, said, “We are pleased with our fourth-quarter financial results and with the operating momentum we built throughout 2016. A continuation of favorable admission trends drove double-digit growth in both total admissions and organic home health admissions for the second consecutive quarter. In addition, the acuity of our home health admissions further increased resulting in a 4.7% rise in average Medicare reimbursement. Reflecting the strength of these increases, our home health organic revenue increased 7.3% for the fourth quarter and 6.4% for the full year.
“We expect to continue our organic home health growth momentum in 2017. This growth, in part, reflects the expansion of our marketing efforts into our substantial secondary markets – those in which we are licensed but do not have an agency location – due to our enhanced capabilities resulting from the completion of our point of care system in 2014. We believe these markets represent a meaningful long-term growth opportunity.
“We also attribute much of our fourth quarter and full-year organic growth and increased patient acuity to our 72 hospital and health system joint venture partnerships. We believe our increasing volume from these partners - at a time when the healthcare industry’s shift to value-based care is intensifying - has resulted from our ability to provide high quality care for their post-acute and non-acute patients and, thereby, create significant costs savings for these partners. We are further favorably differentiated within our industry by the CMS Star ratings for quality and patient satisfaction, both of which LHC Group has now led for three consecutive quarters. The Company also continues to be the country’s only home health provider that is 100% accredited with the Joint Commission excluding recent acquisitions.
“These attributes provide very substantial support to our ongoing effort to be the leading partner of choice for hospitals and health systems that recognize the value in improving their patients’ non-acute care. We expect them to drive continued organic growth from our existing joint venture partnerships and, as the recent completion of our newest joint venture with LifePoint Health indicates, to drive further success in our strategy to develop new joint venture partnerships.
“In addition to the positive industry and Company dynamics that have created a strong corporate development pipeline of potential hospital and health system joint ventures, rising consolidation pressures in the home health industry have also produced a robust pipeline of potential transactions for freestanding home health and hospice providers. Combined, these pipelines generated announced transactions in 2016 for over $106 million in annualized revenue. We remain well-positioned to fund future acquisitions, with significant anticipated cash flow from operations, which totaled $67.5 million for 2016, and $130 million of availability under our credit agreement.”
Mr. Myers concluded, “The strength of LHC Group’s differentiated quality of care, competitive positioning and market potential all reflect the character, experience, and work ethic, of our team, including both healthcare professionals and all those who support them throughout the Company. The commitment and compassion this team brings to their jobs every day make a vital difference in the lives of those we are privileged to care for and serve, every day. We thank them for their unceasing effort, while recognizing that this team of skilled and dedicated people provides the foundation of the Company’s prospects for long-term growth and increased shareholder value.”
FY 2017 Guidance
Fiscal year 2017 net service revenue is expected to be in the range of $1 billion to $1.03 billion, and fully diluted earnings per share are expected to be in the range of $2.07 to $2.23. This guidance includes:
(1) the negative impact from the Medicare Home Health Prospective Payment System for 2017, which is expected to have an approximate 2% impact, or $10 million reduction to Medicare Home Health revenue and $0.34 reduction in fully diluted earnings per share for 2017;
(2) the negative impact from the Medicare Long-Term Care Hospital (LTCH) Prospective Payment System (PPS), which is expected to reduce Medicare LTCH revenue by $6 million or $0.12 net reduction in fully diluted earnings per share for 2017 after mitigation strategies;
(3) the positive impact from the 2017 Medicare Hospice Wage Index and Payment Rate final rule, effective October 1, 2016, which is expected to increase our Medicare Hospice revenue for 2017 by 2.1%, or $2.7 million, and fully diluted earnings per share by $0.09; and
(4) the Home Health and Hospice Joint Venture with LifePoint which was effective January 1, 2017 and is anticipated to achieve approximately $50 - $55 million in revenue and $0.02-$0.05 in EPS attributable to LHC Group in 2017.
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 9, 2017, at 11:00 a.m. Eastern time to discuss its fourth quarter and year-end 2016 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 16, 2017, by dialing (855) 859‑2056 (international callers should call (404) 537-3406) and entering confirmation number 52252764. 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 non-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 facility-based services. LHC Group operates 298 home health services locations, 72 hospice locations, 16 community-based service locations and six long-term acute care hospitals (LTACHs) with eight locations.
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, 2015, 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, 2016 | Dec. 31, 2015 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash | $ | 3,264 | $ | 6,139 | ||
| Receivables: | ||||||
| Patient accounts receivable, less allowance for uncollectible accounts of $29,036 and $26,712, respectively | 124,803 | 110,350 | ||||
| Other receivables | 5,115 | 2,093 | ||||
| Amounts due from governmental entities | 942 | 1,081 | ||||
| Total receivables, net | 130,860 | 113,524 | ||||
| Prepaid income taxes | – | 1,949 | ||||
| Prepaid expenses | 9,821 | 10,833 | ||||
| Other current assets | 5,796 | 5,835 | ||||
| Receivable due from insurance carrier | – | 550 | ||||
| Total current assets | 149,741 | 138,830 | ||||
| Property, building and equipment, net of accumulated depreciation of $35,226 and $38,907, respectively | 43,251 | 38,096 | ||||
| Goodwill | 307,317 | 290,694 | ||||
| Intangible assets, net of accumulated amortization of $10,968 and $8,496, respectively | 102,006 | 96,405 | ||||
| Other assets | 11,756 | 2,029 | ||||
| Total assets | $ | 614,071 | $ | 566,054 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable and other accrued liabilities | $ | 26,805 | $ | 24,586 | ||
| Salaries, wages, and benefits payable | 34,265 | 28,098 | ||||
| Self-insurance reserves | 10,691 | 9,636 | ||||
| Current portion of long-term debt | 252 | 241 | ||||
| Amounts due to governmental entities | 4,955 | 7,055 | ||||
| Income tax payable | 3,499 | – | ||||
| Legal settlement payable | – | 550 | ||||
| Total current liabilities | 80,467 | 70,166 | ||||
| Deferred income taxes | 31,941 | 23,729 | ||||
| Income tax payable | – | 3,415 | ||||
| Revolving credit facility | 87,000 | 98,000 | ||||
| Long-term debt, less current portion | 544 | 543 | ||||
| Total liabilities | 199,952 | 195,853 | ||||
| Noncontrolling interest – redeemable | 12,567 | 12,408 | ||||
| Stockholders’ equity: | ||||||
| LHC Group, Inc. stockholders’ equity: | ||||||
| Common stock – $0.01 par value; 40,000,000 shares authorized; 22,429,041 and 22,224,423 shares issued in 2016 and 2015, respectively | 224 | 222 | ||||
| Treasury stock – 4,828,679 and 4,776,560 shares at cost, respectively | (39,135 | ) | (37,139 | ) | ||
| Additional paid-in capital | 119,748 | 113,793 | ||||
| Retained earnings | 314,289 | 277,706 | ||||
| Total LHC Group, Inc. stockholders’ equity | 395,126 | 354,582 | ||||
| Noncontrolling interest – non-redeemable | 6,426 | 3,211 | ||||
| Total equity | 401,552 | 357,793 | ||||
| Total liabilities and equity | $ | 614,071 | $ | 566,054 | ||
| 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, | |||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||
| Net service revenue | $ | 235,443 | $ | 218,993 | $ | 914,823 | $ | 816,366 | ||||
| Cost of service revenue | 144,089 | 128,940 | 557,650 | 480,878 | ||||||||
| Gross margin | 91,354 | 90,053 | 357,173 | 335,488 | ||||||||
| Provision for bad debts | 3,131 | 4,370 | 14,790 | 19,243 | ||||||||
| General and administrative expenses | 69,050 | 68,076 | 270,622 | 247,919 | ||||||||
| Impairment of intangibles and other | – | 1,025 | – | 1,273 | ||||||||
| (Gain) loss on disposal of assets | (190 | ) | 30 | 1,199 | 710 | |||||||
| Operating income | 19,363 | 16,552 | 70,562 | 66,343 | ||||||||
| Interest expense | (768 | ) | (769 | ) | (2,936 | ) | (2,302 | ) | ||||
| Non-operating income | 213 | 100 | 492 | 457 | ||||||||
| Income before income taxes and noncontrolling interest | 18,808 | 15,883 | 68,118 | 64,498 | ||||||||
| Income tax expense | 6,676 | 5,751 | 22,176 | 22,848 | ||||||||
| Net income | 12,132 | 10,132 | 45,942 | 41,650 | ||||||||
| Less net income attributable to noncontrolling interests | 2,315 | 2,399 | 9,359 | 9,315 | ||||||||
| Net income attributable to LHC Group, Inc.’s common stockholders | $ | 9,817 | $ | 7,735 | $ | 36,583 | $ | 32,335 | ||||
| Earnings per share – basic: | ||||||||||||
| Net income attributable to LHC Group, Inc.’s common stockholders | $ | 0.56 | $ | 0.44 | $ | 2.08 | $ | 1.86 | ||||
| Earnings per share – diluted: | ||||||||||||
| Net income attributable to LHC Group, Inc.’s common stockholders | $ | 0.55 | $ | 0.44 | $ | 2.07 | $ | 1.84 | ||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 17,597,190 | 17,447,691 | 17,559,477 | 17,405,379 | ||||||||
| Diluted | 17,764,066 | 17,647,483 | 17,682,820 | 17,547,531 | ||||||||
| LHC GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited) | ||||||
| Year Ended December 31, | ||||||
| 2016 | 2015 | |||||
| Operating activities: | ||||||
| Net income | $ | 45,942 | $ | 41,650 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Depreciation and amortization expense | 12,160 | 11,955 | ||||
| Provision for bad debts | 14,790 | 19,243 | ||||
| Stock-based compensation expense | 4,872 | 4,225 | ||||
| Deferred income taxes | 7,402 | 1,518 | ||||
| Loss on disposal of assets | 1,199 | 710 | ||||
| Impairment of intangibles and other | – | 1,280 | ||||
| Changes in operating assets and liabilities, net of acquisitions: | ||||||
| Receivables | (28,873 | ) | (27,951 | ) | ||
| Prepaid expenses and other assets | 1,034 | (3,793 | ) | |||
| Prepaid income taxes | 1,641 | 441 | ||||
| Accounts payable and accrued expenses | 9,182 | 10,526 | ||||
| Income tax payable | 84 | – | ||||
| Net amounts due to/from governmental entities | (1,961 | ) | 130 | |||
| Net cash provided by operating activities | 67,472 | 59,934 | ||||
| Investing activities: | ||||||
| Cash paid for acquisitions, primarily goodwill and intangible assets | (23,156 | ) | (70,572 | ) | ||
| Purchases of property, building and equipment | (16,009 | ) | (13,283 | ) | ||
| Advanced payments on acquisitions | (11,488 | ) | – | |||
| Other | 273 | – | ||||
| Net cash (used in) investing activities | (50,380 | ) | (83,855 | ) | ||
| Financing activities: | ||||||
| Proceeds from line of credit | 38,000 | 83,000 | ||||
| Payments on line of credit | (49,000 | ) | (45,000 | ) | ||
| Excess tax benefits from vesting of stock awards | 1,303 | 914 | ||||
| Proceeds from employee stock purchase plan | 912 | 782 | ||||
| Payments on debt | (238 | ) | (233 | ) | ||
| Noncontrolling interest distributions | (9,413 | ) | (8,324 | ) | ||
| Purchase of additional controlling interest | – | (275 | ) | |||
| Sale of noncontrolling interest | 356 | – | ||||
| Withholding taxes paid on stock-based compensation | (1,996 | ) | (1,479 | ) | ||
| Proceeds from exercise of stock options | 109 | 144 | ||||
| Net cash (used in) provided by financing activities | (19,967 | ) | 29,529 | |||
| Change in cash | (2,875 | ) | 5,608 | |||
| Cash at beginning of period | 6,139 | 531 | ||||
| Cash at end of period | $ | 3,264 | $ | 6,139 | ||
| Supplemental disclosures of cash flow information | ||||||
| Interest paid | $ | 3,123 | $ | 1,870 | ||
| Income taxes paid | $ | 11,533 | $ | 20,361 | ||
| LHC GROUP, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Amounts in thousands) (Unaudited) | |||||||||||||||
| Three Months Ended December 31, 2016 | |||||||||||||||
| Home Health Services | Hospice Services | Community- Based Services | Facility- Based Services | Total | |||||||||||
| Net service revenue | $ | 173,806 | $ | 34,898 | $ | 11,067 | $ | 15,672 | $ | 235,443 | |||||
| Cost of service revenue | 104,091 | 21,523 | 7,947 | 10,528 | 144,089 | ||||||||||
| Provision for bad debts | 1,486 | 1,037 | 309 | 299 | 3,131 | ||||||||||
| General and administrative expenses | 52,255 | 9,393 | 2,217 | 5,185 | 69,050 | ||||||||||
| Gain (loss) on disposal of assets | 47 | 9 | 2 | (248 | ) | (190 | ) | ||||||||
| Operating income | 15,927 | 2,936 | 592 | (92 | ) | 19,363 | |||||||||
| Interest expense | (576 | ) | (85 | ) | (38 | ) | (69 | ) | (768 | ) | |||||
| Non-operating income (loss) | 208 | (1 | ) | 1 | 5 | 213 | |||||||||
| Income from continuing operations before income taxes and noncontrolling interest | 15,559 | 2,850 | 555 | (156 | ) | 18,808 | |||||||||
| Income tax expense | 5,480 | 1,001 | 237 | (42 | ) | 6,676 | |||||||||
| Net income | 10,079 | 1,849 | 318 | (114 | ) | 12,132 | |||||||||
| Less net income attributable to noncontrolling interests | 1,875 | 499 | (2 | ) | (57 | ) | 2,315 | ||||||||
| Net income attributable to LHC Group, Inc.’s common stockholders | $ | 8,204 | $ | 1,350 | $ | 320 | $ | (57 | ) | $ | 9,817 | ||||
| Total assets | $ | 427,782 | $ | 116,090 | $ | 33,520 | $ | 36,679 | $ | 614,071 | |||||
| Three Months Ended December 31, 2015 | |||||||||||||||
| Home- Health Services | Hospice Services | Community- Based Services | Facility- Based Services | Total | |||||||||||
| Net service revenue | $ | 158,277 | $ | 31,166 | $ | 10,489 | $ | 19,061 | $ | 218,993 | |||||
| Cost of service revenue | 92,146 | 18,272 | 7,444 | 11,078 | 128,940 | ||||||||||
| Provision for bad debts | 3,627 | 305 | 385 | 53 | 4,370 | ||||||||||
| General and administrative expenses | 49,327 | 11,091 | 2,155 | 5,501 | 68,228 | ||||||||||
| Impairment of intangibles and other | 1,025 | – | – | – | 1,025 | ||||||||||
| Loss on sale of asset | 25 | 4 | – | – | 29 | ||||||||||
| Operating income | 12,127 | 1,494 | 505 | 2,429 | 16,555 | ||||||||||
| Interest expense | (608 | ) | (85 | ) | (6 | ) | (70 | ) | (769 | ) | |||||
| Non-operating income (loss) | 88 | 13 | 1 | (3 | ) | 99 | |||||||||
| Income before income taxes and noncontrolling interest | 11,607 | 1,422 | 500 | 2,356 | 15,885 | ||||||||||
| Income tax expense | 4,174 | 485 | 230 | 862 | 5,751 | ||||||||||
| Net income | 7,433 | 937 | 270 | 1,494 | 10,134 | ||||||||||
| Less net income attributable to noncontrolling interests | 1,840 | 299 | (43 | ) | 303 | 2,399 | |||||||||
| Net income attributable to LHC Group, Inc.’s common stockholders | $ | 5,593 | $ | 638 | $ | 313 | $ | 1,191 | $ | 7,735 | |||||
| Total assets | $ | 394,392 | $ | 101,641 | $ | 31,235 | $ | 38,786 | $ | 566,054 | |||||
| LHC GROUP, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Continued) (Amounts in thousands) (Unaudited) | |||||||||||||||
| Year Ended December 31, 2016 | |||||||||||||||
| Home Health Services | Hospice Services | Community- Based Services | Facility- Based Services | Total | |||||||||||
| Net service revenue | $ | 665,896 | $ | 134,948 | $ | 43,891 | $ | 70,088 | $ | 914,823 | |||||
| Cost of service revenue | 398,450 | 83,359 | 32,603 | 43,238 | 557,650 | ||||||||||
| Provision for bad debts | 9,609 | 3,401 | 797 | 983 | 14,790 | ||||||||||
| General and administrative expenses | 203,418 | 37,207 | 8,785 | 21,212 | 270,622 | ||||||||||
| Loss (gain) on disposal of assets | 857 | 338 | 49 | (45 | ) | 1,199 | |||||||||
| Operating income | 53,562 | 10,643 | 1,657 | 4,700 | 70,562 | ||||||||||
| Interest expense | (2,216 | ) | (317 | ) | (144 | ) | (259 | ) | (2,936 | ) | |||||
| Non-operating income | 422 | 25 | 14 | 31 | 492 | ||||||||||
| Income from continuing operations before income taxes and noncontrolling interest | 51,768 | 10,351 | 1,527 | 4,472 | 68,118 | ||||||||||
| Income tax expense | 16,505 | 3,485 | 651 | 1,535 | 22,176 | ||||||||||
| Net income | 35,263 | 6,866 | 876 | 2,937 | 45,942 | ||||||||||
| Less net income attributable to noncontrolling interests | 6,876 | 1,867 | (58 | ) | 674 | 9,359 | |||||||||
| Net income attributable to LHC Group, Inc.’s common stockholders | $ | 28,387 | $ | 4,999 | $ | 934 | $ | 2,263 | $ | 36,583 | |||||
| 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 | 190,591 | 26,437 | 8,465 | 22,426 | 247,919 | ||||||||||
| Impairment of intangibles and other | 1,245 | – | 28 | – | 1,273 | ||||||||||
| Loss on sale of asset | 544 | 80 | 41 | 45 | 710 | ||||||||||
| 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 interests | 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 | |||||
| LHC GROUP, INC. AND SUBSIDIARIES SELECT CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA (Unaudited) | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||
| Key Data: | ||||||||||||
| Home-Health Services: | ||||||||||||
| Home Health | ||||||||||||
| Locations | 281 | 280 | 281 | 280 | ||||||||
| Acquired | 3 | 4 | 12 | 9 | ||||||||
| De novo | 1 | – | 5 | – | ||||||||
| Divested/Consolidated | (9 | ) | (3 | ) | (16 | ) | (6 | ) | ||||
| Total new admissions | 41,184 | 36,249 | 159,914 | 143,197 | ||||||||
| Medicare new admissions | 26,812 | 24,060 | 105,575 | 96,911 | ||||||||
| Average daily census | 39,407 | 37,060 | 38,587 | 36,752 | ||||||||
| Average Medicare daily census | 28,381 | 27,432 | 28,146 | 27,297 | ||||||||
| Medicare completed and billed episodes | 51,040 | 48,636 | 199,235 | 191,208 | ||||||||
| Average Medicare case mix for completed and billed Medicare episodes | 1.09 | 1.05 | 1.06 | 1.03 | ||||||||
| Average reimbursement per completed and billed Medicare episodes | $ | 2,774 | $ | 2,650 | $ | 2,688 | $ | 2,579 | ||||
| Total visits | 1,192,042 | 1,088,846 | 4,629,695 | 4,183,204 | ||||||||
| Total Medicare visits | 869,759 | 804,537 | 3,396,164 | 3,107,029 | ||||||||
| Average visits per completed and billed Medicare episodes | 17.0 | 16.5 | 17.0 | 16.2 | ||||||||
| Organic growth:(1) | ||||||||||||
| Net revenue | 7.3 | % | 5.9 | % | 6.4 | % | 4.5 | % | ||||
| Net Medicare revenue | 5.3 | % | 5.5 | % | 4.7 | % | 3.5 | % | ||||
| Total new admissions | 10.8 | % | 4.0 | % | 9.3 | % | 3.4 | % | ||||
| Medicare new admissions | 8.5 | % | 1.5 | % | 6.6 | % | 2.4 | % | ||||
| Average daily census | 3.5 | % | 0.9 | % | 2.3 | % | 0.1 | % | ||||
| Average Medicare daily census | 0.8 | % | 0.9 | % | 0.4 | % | -0.5 | % | ||||
| Medicare completed and billed episodes | 2.5 | % | 3.2 | % | 2.2 | % | 1.4 | % | ||||
| Community-Based Services: | ||||||||||||
| Locations | 11 | 13 | 11 | 13 | ||||||||
| Acquired | – | – | 1 | 2 | ||||||||
| De novo | – | – | – | – | ||||||||
| Divested/Consolidated | – | – | (3 | ) | (1 | ) | ||||||
| Average daily census | 1,633 | 1,513 | 1,629 | 1,371 | ||||||||
| Billable hours | 349,053 | 307,781 | 1,339,182 | 1,213,870 | ||||||||
| Revenue per billable hour | $ | 31.71 | $ | 34.08 | $ | 32.77 | $ | 33.94 | ||||
| Hospice-Based Services: | ||||||||||||
| Locations | 65 | 56 | 65 | 56 | ||||||||
| Acquired | – | 16 | 10 | 17 | ||||||||
| De novo | 1 | – | 1 | 2 | ||||||||
| Divested/Consolidated | – | (2 | ) | (2 | ) | (1 | ) | |||||
| Admissions | 2,607 | 2,225 | 10,147 | 6,787 | ||||||||
| Average daily census | 2,713 | 2,360 | 2,623 | 1,675 | ||||||||
| Patient days | 249,608 | 217,157 | 960,023 | 611,493 | ||||||||
| Average revenue per patient day | $ | 140 | $ | 144 | $ | 141 | $ | 140 | ||||
| Facility-Based Services: | ||||||||||||
| Long-term Acute Care | ||||||||||||
| Locations | 8 | 8 | 8 | 8 | ||||||||
| Patient days | 13,257 | 14,450 | 56,224 | 61,427 | ||||||||
| Average revenue per patient day | $ | 1,060 | $ | 1,249 | $ | 1,159 | $ | 1,183 | ||||
(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, 2016 | Three Months Ended Dec. 31, 2015 | |||
| Net income attributable to LHC Group, Inc.’s common stockholders | $ | 9,817 | $ | 7,734 |
| Add (net of tax): | ||||
| Disposal costs on closures of underperforming locations (1) | – | 657 | ||
| Goodwill and intangible disposal costs (2) | – | 605 | ||
| Acquisition costs (3) | 451 | 341 | ||
| Adjusted net income attributable to LHC Group, Inc.’s common stockholders | $ | 10,268 | $ | 9,337 |
| RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP, INC. PER DILUTED SHARE (Unaudited) | ||||
| Three Months Ended Dec. 31, 2016 | Three Months Ended Dec. 31, 2015 | |||
| Net income attributable to LHC Group, Inc.’s common stockholders per diluted share | $ | 0.55 | $ | 0.44 |
| Add: | ||||
| Disposal costs on closures of underperforming locations (1) | – | 0.04 | ||
| Goodwill and intangible disposal costs (2) | – | 0.03 | ||
| Acquisition costs (3) | 0.03 | 0.02 | ||
| Adjusted net income attributable to LHC Group, Inc.’s common stockholders per diluted share | $ | 0.58 | $ | 0.53 |
(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) 2016 Cost associated with PHR and LifePoint and 2015 cost associated with Halcyon and Nurses Registry acquisitions.