U.S. markets closed
  • S&P Futures

    4,270.75
    -6.00 (-0.14%)
     
  • Dow Futures

    33,935.00
    -28.00 (-0.08%)
     
  • Nasdaq Futures

    13,463.50
    -29.75 (-0.22%)
     
  • Russell 2000 Futures

    1,989.30
    +0.20 (+0.01%)
     
  • Crude Oil

    88.08
    -0.03 (-0.03%)
     
  • Gold

    1,780.60
    +3.90 (+0.22%)
     
  • Silver

    19.75
    +0.01 (+0.07%)
     
  • EUR/USD

    1.0190
    +0.0009 (+0.09%)
     
  • 10-Yr Bond

    2.8930
    +0.0690 (+2.44%)
     
  • Vix

    19.90
    +0.21 (+1.07%)
     
  • GBP/USD

    1.2050
    -0.0001 (-0.01%)
     
  • USD/JPY

    134.8380
    -0.2520 (-0.19%)
     
  • BTC-USD

    23,431.94
    -532.37 (-2.22%)
     
  • CMC Crypto 200

    557.70
    -15.12 (-2.64%)
     
  • FTSE 100

    7,515.75
    -20.31 (-0.27%)
     
  • Nikkei 225

    28,946.18
    -276.59 (-0.95%)
     

LHC Group announces second quarter 2022 financial results

  • Oops!
    Something went wrong.
    Please try again later.
·8 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

LAFAYETTE, La., Aug. 3, 2022 /PRNewswire/ -- LHC Group, Inc. (NASDAQ: LHCG) announced its financial results for the quarter ended June 30, 2022.

LHC Group Logo (PRNewsfoto/LHC Group, Inc.)
LHC Group Logo (PRNewsfoto/LHC Group, Inc.)

Second Quarter 2022 Financial Results

  • Net service revenue increased 5.5% to $576.2 million.

  • Net income attributable to LHC Group's common stockholders was $10.6 million, or $0.35 per diluted share.

  • Adjusted net income attributable to LHC Group's common stockholders was $29.8 million, or $0.98 adjusted earnings per diluted share.

  • Adjusted EBITDA was $53.0 million.

A reconciliation of all non-GAAP financial results in this release appears on pages 9-10.

Operational and Strategic Highlights

  • LHC Group's quality and patient satisfaction scores continue to exceed the national average as the Company remains a leader among industry peers.

  • Home Health quality star ratings continue to improve from 4.20 in the April 2022 release to 4.25 in the July 2022 release and Home Health quality patient satisfaction ratings continue to improve from 3.83 in the April 2022 release to 4.01 in the July 2022 release.

  • Organic growth in hospice admissions increased 5.5% in the second quarter of 2022 compared with the same period in 2021.

  • On May 3, 2022, LHC Group announced that it has finalized a joint venture partnership for in-home services with Archbold Medical Center in Thomasville, Georgia.

The Company has posted supplemental financial information on the second quarter results, which can be found under Financial Results on the Company's Investor Relations page. 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 second 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)


June 30,

2022


December 31,
2021

ASSETS




Current assets:




Cash

$         27,400


$          9,809

Receivables:




Patient accounts receivable

342,068


348,820

Other receivables

13,304


13,780

Amounts due from governmental entities

483


Total receivables

355,855


362,600

Prepaid income taxes

19,613


7,531

Prepaid expenses

20,556


28,401

Other current assets

36,166


24,801

Total current assets

459,590


433,142

Property, building and equipment, net of accumulated depreciation of $106,541 and $98,394, respectively

155,978


153,959

Goodwill

1,751,430


1,748,426

Intangible assets, net of accumulated amortization of $21,902 and $19,152, respectively

397,121


400,002

Operating lease right of use asset

109,925


113,399

Other assets

63,830


46,693

Total assets

$    2,937,874


$   2,895,621

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable and other accrued liabilities

$       124,222


$        98,118

Salaries, wages, and benefits payable

94,432


100,532

Self-insurance reserves

41,302


33,784

Contract liabilities - deferred revenue

8,222


106,489

Current operating lease payable

36,929


37,630

Amounts due to governmental entities

3,034


5,447

Current liabilities - deferred employer payroll tax

26,790


26,790

Total current liabilities

334,931


408,790

Deferred income taxes

80,691


70,026

Income taxes payable

7,754


7,320

Revolving credit facility

759,000


661,197

Long-term operating lease liabilities

75,971


78,688

                                   Total liabilities

1,258,347


1,226,021

Noncontrolling interest — redeemable

17,210


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; 36,703,550  and 36,549,524
shares issued, and 30,567,333 and 30,634,414 shares outstanding, respectively

367


365

Treasury stock —  6,136,217 and  5,915,110 shares at cost, respectively

(194,390)


(164,790)

Additional paid-in capital

990,247


979,642

Retained earnings

781,063


751,025

Total LHC Group, Inc. stockholders' equity

1,577,287


1,566,242

Noncontrolling interest — non-redeemable

85,030


85,857

Total stockholders' equity

1,662,317


1,652,099

Total liabilities and stockholders' equity

$    2,937,874


$   2,895,621

 

LHC GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share data)

(Unaudited)



Three Months Ended  

 June 30,


Six Months Ended 

 June 30,


2022


2021


2022


2021

Net service revenue

$       576,193


$       545,907


$    1,147,688


$    1,070,742

Cost of service revenue (excluding depreciation and amortization)

353,933


317,872


704,321


628,144

Gross margin

222,260


228,035


443,367


442,598

General and administrative expenses

196,390


167,061


380,749


330,310

Impairment of intangibles and other

842


760


2,071


937

Operating income

25,028


60,214


60,547


111,351

Interest expense

(6,407)


(143)


(10,578)


(406)

Income before income taxes and noncontrolling interest

18,621


60,071


49,969


110,945

Income tax expense

3,679


13,318


10,048


22,759

Net income

14,942


46,753


39,921


88,186

Less net income attributable to noncontrolling interests

4,358


9,110


9,883


15,884

Net income attributable to LHC Group, Inc.'s common stockholders

$         10,584


$         37,643


$         30,038


$         72,302









Earnings per share:








Basic

$              0.35


$              1.21


$              0.98


$              2.32

Diluted

$              0.35


$              1.20


$              0.98


$              2.30

Weighted average shares outstanding:








Basic

30,543


31,225


30,508


31,188

Diluted

30,676


31,430


30,623


31,423

 

LHC GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)



Six Months Ended June 30,



2022



2021

Operating activities:






Net income

$

39,921


$

88,186

Adjustments to reconcile net income to net cash provided by operating activities:






Depreciation and amortization expense


11,723



9,541

Amortization of operating lease right of use asset


20,412



17,995

Stock-based compensation expense


9,319



7,506

Deferred income taxes


10,665



19,489

Loss on disposal of assets


221



19

    Impairment of intangibles and other


2,071



937

Changes in operating assets and liabilities, net of acquisitions:






Receivables


5,686



(25,649)

Prepaid expenses


7,845



(4,484)

Other assets


(13,403)



6,170

Prepaid income taxes


(12,083)



(13,739)

Accounts payable and accrued expenses


31,358



(9,148)

Salaries, wages, and benefits payable


1,338



(4,560)

Contract liabilities - deferred revenue


(98,267)



(65,026)

Operating lease liabilities


(20,286)



(17,962)

Income taxes payable


434



(21,042)

Net amounts due to/from governmental entities


758



(57)

Net cash used in operating activities


(2,288)



(11,824)

Investing activities:






Purchases of property, building and equipment


(11,138)



(15,619)

Proceeds from sale of property, building and equipment




150

Cash paid for acquisitions, net of cash acquired


(2,570)



(649)

Proceeds from sale of an entity




1,531

Minority interest investments


(15,100)



(10,100)

Net cash used in investing activities


(28,808)



(24,687)

Financing activities:






Proceeds from line of credit


597,250



Payments on line of credit


(499,447)



(20,000)

Government stimulus advance