LHC Group Announces First Quarter 2013 Results

LHC Group Announces First Quarter 2013 Results

LAFAYETTE, La., May 8, 2013 (GLOBE NEWSWIRE) -- LHC Group Inc. (Nasdaq:LHCG),
a national provider of post-acute care services, today announced its financial
results for the three months ended March 31, 2013.

Financial Results for the First Quarter

  *Net service revenue for the first quarter of 2013 was $162.0 million,
    compared with $158.8 million for the same period in 2012.
  *Net income attributable to LHC Group for the first quarter of 2013 was
    $6.3 million, compared with $7.7 million in the prior year quarter.
  *Diluted earnings per share was $0.37 for the first quarter of 2013,
    compared with $0.42 for the same period in 2012.
  *Organic growth in new home health admissions in the first quarter of 2013
    was 3.7% compared with the same period in 2012.

In commenting on the results, Keith G. Myers, chief executive officer of LHC
Group, said, "I am extremely proud of the strong and well-balanced operating
results our team delivered during the first quarter. I am particularly proud
of our ability to once again achieve a solid organic growth rate in total new
admissions of 3.7% over the first quarter of 2012. I would like to
congratulate and thank our 8,500 team members for their unwavering commitment
to excellence and for consistently delivering high-quality care to the growing
number of patients, families and communities we serve.Because of our team's
dedication to clinical excellence and compassion for those we serve, we have
experienced positive organic growth in total new admissions for 18 consecutive
quarters dating back to 2008."

Guidance

The company is reaffirming its full year 2013 guidance issued on March 6,
2013, for net service revenue of $660 million to $680 million and fully
diluted earnings per share in the range of $1.10 to $1.30.This guidance
includes the impact of sequestration, as well as the impact of the recently
announced acquisition of the home health service line of Addus HomeCare Corp.
This guidance, however, does not take into account the impact of other future
reimbursement changes, if any, future acquisitions or share repurchases, if
made, de novo locations, if opened, or future legal expenses, if necessary.

Conference Call

LHC Group will host a conference call Thursday, May 9, 2013, at 11 a.m.
Eastern time to discuss its first quarter 2013 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, May 16, 2013, by dialing
(855)859‑2056 (international callers should call (404) 537-3406) and entering
confirmation number 31667703. 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 after the conclusion of the live broadcast.

About LHC Group Inc.

LHC Group Inc. is a national provider of post-acute care, providing quality,
cost-effective health care 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, hospice and
community-based service agencies 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, 2012, 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
CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
(unaudited)

                                                          March 31, Dec. 31,
                                                           2013      2012
ASSETS
Current assets:                                                     
Cash                                                       $3,404   $9,720
Receivables:                                                        
Patient accounts receivable, less allowance for
uncollectible accounts of $12,917and $11,863,            81,238    83,951
respectively
Other receivables                                          622       589
Amounts due from governmental entities                     1,237     1,596
Total receivables, net                                     83,097    86,136
Deferred income taxes                                      9,283     7,671
Prepaid income taxes                                       3,733     7,436
Prepaid expenses                                           6,573     6,818
Other current assets                                       3,893     2,949
Total current assets                                       109,983   120,730
Property, building and equipment, net of accumulated       29,037    29,531
depreciation of $35,947 and $34,331, respectively
Goodwill                                                   189,153   169,150
Intangible assets, net of accumulated amortization of      61,328    62,042
$3,113 and $2,985, respectively
Other assets                                               5,406     5,441
Total assets                                               $394,907 $386,894
                                                                   
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:                                                
Accounts payable and other accrued liabilities             $17,647  $14,897
Salaries, wages and benefits payable                       23,581    29,890
Self insurance reserve                                     6,170     5,444
Amounts due to governmental entities                       4,301     4,979
Total current liabilities                                  51,699    55,210
Deferred income taxes                                      27,587    25,129
Income tax payable                                         3,415     3,415
Revolving credit facility                                  22,996    19,500
Note payable                                               201       –
Total liabilities                                          105,898   103,254
Noncontrolling interest- redeemable                        11,791    11,426
Stockholders' equity:                                               
Common stock – $0.01 par value: 40,000,000 shares
authorized; 21,727,657 and 21,578,772 shares issued in     217       216
2013 and 2012, respectively
Treasury stock – 4,681,930 and 4,653,039 shares at cost,   (34,453)  (33,846)
respectively
Additional paid-in capital                                 101,346   100,619
Retained earnings                                          207,478   201,192
Total LHC Group Inc. stockholders' equity                  274,588   268,181
Noncontrolling interest- non-redeemable                    2,630     4,033
Total equity                                               277,218   272,214
Total liabilities and stockholders' equity                 $394,907 $386,894



LHC GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(amounts in thousands, except share and per share data)
(unaudited)

                                                        Three Months Ended
                                                         March 31,
                                                        2013       2012
Net service revenue                                      $161,953  $158,761
Cost of service revenue                                  93,248     89,859
Gross margin                                             68,705     68,902
Provision for bad debts                                  3,917      2,761
General and administrative expenses                      51,623     50,882
Operating income                                         13,165     15,259
Interest expense                                        (425)      (359)
Non-operating income                                     65         65
Income from continuing operations before income taxes    12,805     14,965
and noncontrolling interest
Income tax expense                                       4,536      5,226
Net income                                               8,269      9,739
Less net income attributable to noncontrolling interest  1,983      1,998
Net income attributable to LHC Group, Inc.'s common      $6,286    $7,741
stockholders
                                                                  
Earnings per share – basic and diluted:                            
Net income attributable to LHC Group, Inc.'s common      $0.37     $0.42
stockholders
                                                                  
Weighted average shares outstanding:                               
Basic                                                    16,966,525 18,333,838
Diluted                                                  17,073,543 18,399,608



LHC GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)

                                                           Three Months Ended
                                                            March 31,
                                                           2013      2012
Operating activities                                                 
Net income                                                  $8,269   $9,739
Adjustments to reconcile net income to net cash provided by          
operating activities:
Depreciation and amortization expense                       1,830     1,919
Provision for bad debts                                     3,917     2,761
Stock based compensation expense                            888       1,408
Deferred income taxes                                       846       (353)
Loss on sale of assets                                      14        –
Changes in operating assets and liabilities, net of                  
acquisitions:
Receivables                                                 (1,237)   (3,774)
Prepaid expenses and other assets                           (664)     1,200
Prepaid income taxes                                        3,703     18,349
Accounts payable and accrued expenses                       (3,178)   (5,484)
Net amounts due to/from governmental entities               (319)     (180)
Net cash provided by operating activities                   14,069    25,585
                                                                    
Investing activities                                                 
Purchases of property, building, and equipment              (1,151)   (1,160)
Cash paid for acquisitions, primarily goodwill and          (19,655)  (1,700)
intangible assets
Net cash used in investing activities                       (20,806)  (2,860)
                                                                    
Financing activities                                                 
Proceeds from line of credit                                41,500    26,879
Payments on line of credit                                  (38,004)  (47,486)
Proceeds from Employee stock purchase plan                  179       189
Proceeds from debt issuance                                 201       –
Noncontrolling interest distributions                       (2,509)   (2,302)
Excess tax benefits from vesting of restricted stock        11        –
Redemption of treasury shares                               (607)     –
Purchase of additional controlling interest                 (350)     –
Sale of noncontrolling interest                             –         80
Net cash provided by (used in) financing activities         421       (22,640)
Change in cash                                              (6,316)   85
Cash at beginning of period                                 9,720     256
Cash at end of period                                       $3,404   $341
                                                                    
Supplemental disclosures of cash flow information                    
Interest paid                                               $425     $359
Income taxes paid                                           $10,337  $243



LHC GROUP INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(amounts in thousands)
(unaudited)

                                                Three Months Ended
                                                 March 31, 2013
                                                 Home-     Facility-
                                                Based     Based     Total
                                                 Services  Services
Net service revenue                              $141,987 $19,966  $161,953
Cost of service revenue                          81,590    11,658    93,248
Provision for bad debts                          3,277     640       3,917
General and administrative expenses              46,172    5,451     51,623
Operating income                                 10,948    2,217     13,165
Interest expense                                 (387)     (38)      (425)
Non-operating income                             41        24        65
Income before income taxes and noncontrolling    10,602    2,203     12,805
interest
Income tax expense                               4,087     449       4,536
Net income                                       6,515     1,754     8,269
Less net income attributable to noncontrolling   1,599     384       1,983
interest
Net income attributable to LHC Group, Inc.'s     $4,916   $1,370   $6,286
common stockholders
Total assets                                     $358,140 $36,767  $394,907
                                                
                                                Three Months Ended
                                                 March 31, 2012
                                                 Home-     Facility-
                                                Based     Based     Total
                                                 Services  Services
Net service revenue                              $139,595 $19,166  $158,761
Cost of service revenue                          79,061    10,798    89,859
Provision for bad debts                          2,623     138       2,761
General and administrative expenses              45,226    5,656     50,882
Operating income                                 12,685    2,574     15,259
Interest expense                                 (323)     (36)      (359)
Non-operating income                             53        12        65
Income before income taxes and noncontrolling    12,415    2,550     14,965
interest
Income tax expense                               4,731     495       5,226
Net income                                       7,684     2,055     9,739
Less net income attributable to noncontrolling   1,692     306       1,998
interest
Net income attributable to LHC Group, Inc.'s     $5,992   $1,749   $7,741
common stockholders
Total assets                                     $345,287 $34,761  $380,048



LHC GROUP INC. AND SUBSIDIARIES
SELECT CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA
(unaudited)

                                                           Three Months Ended
                                                            March 31,
                                                           2013      2012
Key Data:                                                            
Home-Based Services:                                                 
Home Health                                                          
Locations                                                   251       246
Acquired                                                    19        0
De novo                                                     0         1
Total new admissions                                        30,214    27,696
Medicare new admissions                                     20,527    19,046
Average daily census                                        35,481    32,608
Average Medicare daily census                               26,890    24,689
Medicare completed and billed episodes                      42,808    41,287
Average Medicare case mix for completed and billed Medicare 1.26      1.26
episodes
Average reimbursement per completed and billed Medicare     $2,297   $2,345
episodes
Total visits                                                859,498   898,377
Total Medicare visits                                       653,796   658,566
Average visits per completed and billed Medicare episodes   15.3      16.0
Organic growth: ^(1)                                                 
Net revenue                                                 -2.9%     -2.9%
Net Medicare revenue                                        -2.1%     -6.1%
Total new admissions                                        3.7%      5.6%
Medicare new admissions                                    3.2%      2.1%
Average daily census                                        1.7%      -6.0%
Average Medicare daily census                               1.5%      -7.7%
Medicare completed and billed episodes                      0.6%      -1.9%
                                                                    
Hospice                                                              
Locations                                                   33        32
Acquired                                                    1         0
Admissions                                                  1,380     1,109
Average daily census                                        1,148     934
Patient days                                                96,385    84,964
Average revenue per patient day                             $139     $139
                                                                    
Facility-Based Services:                                             
Long-term Acute Care                                                 
Locations                                                   9         9
Patient days                                                16,118    16,191
Average revenue per patient day                             $1,194   $1,156
                                                                    
^(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.


CONTACT: Eric Elliott
         Investor Relations
         (337) 233-1307
         eric.elliott@lhcgroup.com

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