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      LHC Group announces second quarter 2021 financial results

      More than doubles acquired annual revenue target for 2021

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

      News provided by

      LHC Group, Inc.

      Aug 04, 2021, 16:01 ET

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      LAFAYETTE, La., Aug. 4, 2021 /PRNewswire/ -- LHC Group, Inc. (NASDAQ: LHCG) announced its financial results for the quarter ended June 30, 2021.

      Second Quarter 2021 Financial Results

      • Net service revenue increased 12.0% to $545.9 million.
      • Net income attributable to LHC Group's common stockholders was $37.6 million, or $1.20 per diluted share.
      • Adjusted net income attributable to LHC Group's common stockholders was $50.9 million, or $1.62 adjusted earnings per diluted share.
      • Adjusted EBITDA was $73.6 million.

       A reconciliation of all non-GAAP financial results in this release appears on pages 11-12.

      Operational and Strategic Highlights

      • LHC Group continues to be an industry leader in quality and patient satisfaction. Recent data provided in June 2021 by Strategic Healthcare Programs (SHP) shows that the company's overall home health quality star rating improved to 4.39 as compared to an overall home health quality star rating of 4.23 in the last published data from the Centers for Medicare and Medicaid Services (CMS) in October 2020.
      • Organic growth in home health admissions increased 16.4% in the second quarter of 2021 as compared to the second quarter of 2020 and increased sequentially by 1.0% in the second quarter of 2021 over the first quarter of 2021.
      • Medicare organic growth in home health admissions increased by 8.8% in the second quarter of 2021 compared with the same period in 2020 and increased sequentially by 1.2% in the second quarter of 2021 over the first quarter of 2021.
      • Non-Medicare episodic organic growth in home health admissions increased by 37.0% in the second quarter of 2021 compared with the same period in 2020 and increased by 4.0% sequentially over the first quarter of 2021.
      • Organic growth in hospice admissions increased 1.1% in the second quarter of 2021 as compared to the second quarter of 2020.
      • LHC Group's acquisition pipeline is currently over $400 million with over $300 million of the targets in exclusive discussions, which enabled the Company to increase its target for acquired revenue in 2021 to a range of $350 million to $500 million (compared with a range of $150 million to $200 million previously) and an expected incremental Adjusted EBITDA contribution in 2022 in a range of $35 million to $50 million.
      • Year-to-date, LHC Group has closed on or announced the acquisition of 26 hospice locations, three home health locations, and one HCBS location in 11 states representing annualized revenue of $161.7 million.
      • On July 7, 2021, LHC Group announced the formation of a strategic partnership to jointly develop and deliver an expanded service offering of advanced clinical care services in the home. This innovative, clinician-led, proprietary model will elevate in-home care and deliver higher acuity care in the home by harnessing the combined talent and experience of partner physicians and the nurses, therapists, and physician extenders at LHC Group as well as LHC Group's industry leading in-home patient care, proprietary data analytics capabilities, clinical modeling, and technologies.
      • On August 3, the Company closed on an expanded revolving credit facility totaling $800 million with lower borrowing costs and an accordion feature that increases the total borrowing capacity to $1.3 billion, an increase from the previous borrowing capacity of $700 million.

      Commenting on the results, Keith G. Myers, LHC Group's Chairman and Chief Executive Officer, said, "Favorable industry tailwinds continue to propel at home care and LHC Group with strong bi-partisan support for the recently introduced Choose Home legislation, our recently announced partnership that provides the missing link that advanced home care programs have needed, and leading quality scores that are driving market share gains. Recent third-party polling data demonstrates an overwhelming preference by patients to be treated in the safety and comfort of their home or residence. We are seeing the same kind of demand from our hospital partners for SNF-at-home and hospital-at-home programs that started during the pandemic and has accelerated since our recent announcement to launch a comprehensive offering of clinicians covering all aspects of advanced clinical care services in the home later this year."     

      Revenues in the second quarter of 2021 increased 12.0% to $545.9 million, compared to $487.3 million in the second quarter of 2020. Net income attributable to LHC Group, Inc. totaled $37.6 million, or $1.20 per diluted share, compared to $44.7 million, or $1.43 per diluted share, in the second quarter of 2020. The Company recognized $36.8 million, $27.2 million net of tax, or $0.87 per diluted share, in government stimulus income during the second quarter of 2020 related to general distribution funds received from the provider relief fund established by the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. During November 2020, the Company announced it would return, or repay early, its share of provider relief fund distributions of approximately $93.3 million and approximately $317.9 million in Medicare accelerated payments. In the third quarter of 2020, the Company reversed the $44.4 million of government stimulus income that it recognized during the second quarter of 2020.

      For the second quarter of 2021, adjusted net income attributable to LHC Group's common stockholders increased 32.0% to $50.9 million, or $1.62 per diluted share, compared to $38.6 million, or $1.23 per diluted share, in the second quarter of 2020. For the second quarter of 2021, Adjusted EBITDA increased 27.5% to $73.6 million, compared to $57.7 million in the second quarter of 2020. Adjusted net income attributable to LHC Group's common stockholders and Adjusted EBITDA are non-GAAP financial measures. A table providing reconciliation of these non-GAAP financial results is provided in this release on pages 11-12.

      Full Year 2021 Guidance
      The Company affirmed its 2021 guidance for revenue and adjusted EBITDA, less non-controlling interest, of $2.215 billion to $2.265 billion and $290 million to $300 million, respectively, and raised its adjusted earnings per diluted share guidance to be in a range of $6.30 to $6.50 (compared with $6.20 to $6.40 previously).

      Joshua L. Proffitt, LHC Group's President, added, "With the second quarter results in line with our expectations, we enter the back half of 2021 with increased confidence in our organic growth trajectory. Our total organic home health, Medicare and non-Medicare episodic admissions are all up year over year and sequentially while organic admissions, length of stay and average daily census are up year over year and census is up sequentially on improving length of stay in our hospice service line. We had previously anticipated this would be a record year for M&A transactions, and we have already exceeded those initial projections. Based on the breadth and depth of our pipeline, we have more than doubled our original target to $350 million to $500 million in acquired annual revenue in 2021 with a corresponding increase in Adjusted EBITDA that will accelerate next year's growth as well."

      The Company's guidance ranges reflect a number of assumptions that are subject to change based on uncertainties related to the impact of the COVID-19 pandemic. The Company's guidance ranges do not take into account the impact of future COVID-19 related costs and expenses. The Company is estimating COVID-19 related costs and expenses in the range of $30 million to $35 million in the full year of 2021. The Company's guidance ranges also do not take into account reimbursement changes, if any, future acquisitions, if made, de novo locations, if opened, location closures, if any, or future legal expenses, if necessary. Please refer to the supplemental information that can be found under Financial Results on the Company's Investor Relations page to access more detailed guidance assumptions. 

      Conference Call
      LHC Group will host a conference call on Thursday, August 5, 2021, at 9:00 a.m. Eastern time to discuss its second quarter 2021 results. The toll-free number to call for this interactive teleconference is (888) 347-8204 (international callers: (412) 902-4249). A telephonic replay of the conference call will be available through midnight on Thursday, August 12, 2021, by dialing (877) 344-7529 (international callers: (412) 317-0088) and entering confirmation number 10158292.

      The Company has posted supplemental financial information on the second quarter results that it will reference during the conference call. The supplemental information can be found under Quarterly Results on the Company's Investor Relations page. A live webcast 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 one hour following the conclusion of the live broadcast.

      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 30,000 employees deliver home health, hospice, home, and community-based services, and facility-based care in 35 states and the District of Columbia – reaching 60 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 over 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 anticipated benefits of the transaction. 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 contained in this press release include, but are not limited to: our 2021 revenue and earnings guidance, statements about the benefits of the acquisition, including anticipated earnings accretion, synergies and cost savings and the timing thereof; the Company's plans, objectives, expectations, projections and intentions; and other statements relating to the transaction that are not historical facts. 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. With respect to the acquisition, these risks, uncertainties and factors include, but are not limited to: the risk that the businesses will not be integrated successfully; the risk that the cost savings, synergies and growth from the transaction may not be fully realized or may take longer to realize than expected; the diversion of management time on integration-related issues; and the risk that costs associated with the integration of the businesses are higher than anticipated. With respect to the Company's  businesses, these risks, uncertainties and factors include, but are not limited to: changes in, or failure to comply with, existing government regulations that impact the Company's businesses; legislative proposals for healthcare reform; the impact of changes in future interpretations of fraud, anti-kickback, or other laws; changes in Medicare and Medicaid reimbursement levels; changes in laws and regulations with respect to Accountable Care Organizations; changes in the marketplace and regulatory environment for Health Risk Assessments; decrease in demand for the Company's services; the potential impact of the transaction on relationships with customers, joint venture and other partners, competitors, management and other employees, including the loss of significant contracts or reduction in revenues associated with major payor sources; ability of customers to pay for services; risks related to any current or future litigation proceedings; potential audits and investigations by government and regulatory agencies, including the impact of any negative publicity or litigation; the ability to attract new customers and retain existing customers in the manner anticipated; the ability to hire and retain key personnel; increased competition from other entities offering similar services as offered by the  Company; reliance on and integration of information technology systems; ability to protect intellectual property rights; impact of security breaches, cyber-attacks or fraudulent activity on the Company's reputation; the risks associated with assumptions the parties make in connection with the parties' critical accounting estimates and legal proceedings; the risks associated with the Company's expansion strategy, the successful integration of recent acquisitions, and if necessary, the ability to relocate or restructure current facilities; and the potential impact of an economic downturn or effects of tax assessments or tax positions taken, risks related to goodwill and other intangible asset impairment, tax adjustments, anticipated tax rates, benefit or retirement plan costs, or other regulatory compliance costs.

      Many of these risks, uncertainties and assumptions are beyond the Company's ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the information currently available to the Company on the date they are made, and the Company does not undertake any obligation to update publicly or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release. The Company does not give any assurance (1) that the Company will achieve its guidance or expectations, or (2) concerning any result or the timing thereof. All subsequent written and oral forward-looking statements concerning the transaction or other matters and attributable to the Company or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.

      LHC GROUP, INC. AND SUBSIDIARIES

      CONDENSED CONSOLIDATED BALANCE SHEETS

      (Amounts in thousands, except share data) (Unaudited)



      June 30,
      2021


      December 31,
      2020

      ASSETS




      Current assets:




      Cash

      $

      112,108



      $

      286,569


      Receivables:




      Patient accounts receivable

      329,166



      301,209


      Other receivables

      9,214



      11,522


      Amounts due from governmental entities

      149



      —


      Total receivables

      338,529



      312,731


      Prepaid income taxes

      13,739



      —


      Prepaid expenses

      26,542



      22,058


      Other current assets

      18,749



      25,664


      Total current assets

      509,667



      647,022


      Property, building and equipment, net of accumulated depreciation of $90,652 and $82,721, respectively

      145,314



      138,366


      Goodwill

      1,259,726



      1,259,147


      Intangible assets, net of accumulated amortization of $18,261 and $17,659, respectively

      313,638



      315,355


      Assets held for sale

      1,900



      1,900


      Operating lease right of use asset

      105,201



      100,046


      Other assets

      31,679



      21,518


      Total assets

      $

      2,367,125



      $

      2,483,354


      LIABILITIES AND STOCKHOLDERS' EQUITY




      Current liabilities:




      Accounts payable and other accrued liabilities

      $

      56,888



      $

      64,864


      Salaries, wages, and benefits payable

      88,030



      88,666


      Self-insurance reserves

      31,140



      35,103


       Income tax payable

      —



      21,464


      Government stimulus advance

      —



      93,257


      Contract liabilities - deferred revenue

      252,936



      317,962


      Current operating lease liabilities

      33,081



      32,676


      Amounts due to governmental entities

      1,608



      1,516


      Current liabilities - deferred employer payroll tax

      25,928



      25,928


      Total current liabilities

      489,611



      681,436


      Deferred income taxes

      66,726



      47,237


      Income taxes payable

      6,625



      6,203


      Revolving credit facility

      —



      20,000


      Other long term liabilities

      25,928



      25,928


      Long-term operating lease liabilities

      74,993



      70,275


                                         Total liabilities

      663,883



      851,079


      Noncontrolling interest — redeemable

      18,589



      18,921


      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; 36,525,831  and 36,355,497 shares issued, and 31,252,929 and 31,139,840 shares outstanding, respectively

      365



      364


      Treasury stock —  5,272,902 and  5,215,657 shares at cost, respectively

      (79,765)



      (69,011)


      Additional paid-in capital

      969,897



      962,120


      Retained earnings

      707,599



      635,297


      Total LHC Group, Inc. stockholders' equity

      1,598,096



      1,528,770


      Noncontrolling interest — non-redeemable

      86,557



      84,584


      Total stockholders' equity

      1,684,653



      1,613,354


      Total liabilities and stockholders' equity

      $

      2,367,125



      $

      2,483,354


      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,


      2021


      2020


      2021


      2020

      Net service revenue

      $

      545,907



      $

      487,320



      $

      1,070,742



      $

      1,000,191


      Cost of service revenue (excluding depreciation and amortization)

      317,872



      306,712



      628,144



      627,914


      Gross margin

      228,035



      180,608



      442,598



      372,277


      General and administrative expenses

      167,061



      150,574



      330,310



      308,440


      Impairment of intangibles and other

      760



      600



      937



      600


      Government stimulus income

      —



      (44,435)



      —



      (44,435)


      Operating income

      60,214



      73,869



      111,351



      107,672


      Interest expense

      (143)



      (841)



      (406)



      (3,609)


      Income before income taxes and noncontrolling interest

      60,071



      73,028



      110,945



      104,063


      Income tax expense

      13,318



      15,227



      22,759



      18,586


      Net income

      46,753



      57,801



      88,186



      85,477


      Less net income attributable to noncontrolling interests

      9,110



      13,109



      15,884



      18,761


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

      $

      37,643



      $

      44,692



      $

      72,302



      $

      66,716










      Earnings per share:








      Basic

      $

      1.21



      $

      1.44



      $

      2.32



      $

      2.15


      Diluted

      $

      1.20



      $

      1.43



      $

      2.30



      $

      2.13


      Weighted average shares outstanding:








      Basic

      31,225



      31,104



      31,188



      31,060


      Diluted

      31,430



      31,324



      31,423



      31,301


      LHC GROUP, INC. AND SUBSIDIARIES

      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

      (Amounts in thousands) (Unaudited)



      Six Months Ended
      June 30,


      2021


      2020


      Operating activities:





      Net income

      $

      88,186



      $

      85,477



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





      Depreciation and amortization expense

      9,541



      10,385



      Amortization of operating lease right of use asset

      17,995



      17,090



      Stock-based compensation expense

      7,506



      6,943



      Deferred income taxes

      19,489



      10,461



      Loss on disposal of assets

      19



      154



          Impairment of intangibles and other

      937



      600



      Changes in operating assets and liabilities, net of acquisitions:





      Receivables

      (25,649)



      (38,186)



      Prepaid expenses

      (4,484)



      (2,436)



      Other assets

      6,170



      (4,169)



      Prepaid income taxes

      (13,739)



      3,322



      Accounts payable and accrued expenses

      (9,148)



      (16,354)



      Salaries, wages, and benefits payable

      (4,560)



      3,850



      Government stimulus advance

      —



      44,273



      Contract liabilities - deferred revenue

      (65,026)



      310,712



      Other long term liabilities

      —



      17,818



      Operating lease liabilities

      (17,962)



      (16,876)



      Income taxes payable

      (21,042)



      2,506



      Net amounts due to/from governmental entities

      (57)



      306



      Net cash provided by (used in) operating activities

      (11,824)



      435,876



      Investing activities:





      Purchases of property, building and equipment

      (15,619)



      (40,944)



      Proceeds from sale of property, building and equipment

      150



      7,142



      Cash received (paid) for acquisitions

      (649)



      3,125



      Proceeds from sale of an entity

      1,531



      —



      Investments

      (10,100)





      Net cash used in investing activities

      (24,687)



      (30,677)



      Financing activities:





      Proceeds from line of credit

      —



      256,230



      Payments on line of credit

      (20,000)



      (479,230)



      Government stimulus advance

      (93,257)



      —



      Proceeds from employee stock purchase plan

      1,222



      1,107



      Noncontrolling interest distributions

      (13,332)



      (10,267)



      Withholding taxes paid on stock-based compensation

      (10,754)



      (8,602)



      Purchase of additional controlling interest

      (2,113)



      (23,575)



      Exercise of vested awards and stock options

      —



      218



      Sale of noncontrolling interest

      284



      —



      Net cash (used in) provided  by financing activities

      (137,950)



      (264,119)



      Change in cash

      (174,461)



      141,080



      Cash at beginning of period

      286,569



      31,672



      Cash at end of period

      $

      112,108



      $

      172,752



      Supplemental disclosures of cash flow information:





      Interest paid

      $

      1,322



      $

      4,083



      Income taxes paid

      $

      38,103



      $

      2,375



      Non-Cash Operating Activity:





      Operating right of use assets in exchange for lease obligations

      $

      25,656



      $

      18,690



      Non-Cash Investing Activity:





      Accrued capital expenditures

      $

      1,108



      $

      2,348



      LHC GROUP, INC. AND SUBSIDIARIES

      SEGMENT INFORMATION

      (Amounts in thousands)

      (Unaudited)



      Three Months Ended June 30, 2021


      Home health
      services


      Hospice
      services


      Home and
      community-
      based
      services


      Facility-
      based
      services


      HCI


      Total

      Net service revenue

      $

      396,534



      $

      63,804



      $

      48,407



      $

      31,030



      $

      6,132



      $

      545,907


      Cost of service revenue (excluding depreciation and amortization)

      219,925



      39,647



      34,683



      20,460



      3,157



      317,872


      General and administrative expenses

      123,245



      18,114



      11,923



      10,906



      2,873



      167,061


      Impairment of intangibles and other

      760



      —



      —



      —



      —



      760


      Operating income (loss)

      52,604



      6,043



      1,801



      (336)



      102



      60,214


      Interest expense

      (106)



      (20)



      (10)



      (5)



      (2)



      (143)


      Income (loss) before income taxes and noncontrolling interest

      52,498



      6,023



      1,791



      (341)



      100



      60,071


      Income tax expense (benefit)

      11,706



      1,280



      470



      (152)



      14



      13,318


      Net income (loss)

      40,792



      4,743



      1,321



      (189)



      86



      46,753


      Less net income (loss) attributable to non controlling interests

      7,500



      1,208



      85



      322



      (5)



      9,110


      Net income (loss) attributable to LHC Group, Inc.'s common stockholder

      $

      33,292



      $

      3,535



      $

      1,236



      $

      (511)



      $

      91



      $

      37,643


      Total assets

      $

      1,681,871



      $

      288,985



      $

      245,071



      $

      85,520



      $

      65,678



      $

      2,367,125





      Three Months Ended June 30, 2020


      Home health
      services


      Hospice
      services


      Home and
      community-
      based
      services


      Facility-
      based
      services


      HCI


      Total

      Net service revenue

      $

      339,872



      $

      61,055



      $

      47,675



      $

      33,639



      $

      5,079



      $

      487,320



      Cost of service revenue (excluding depreciation and amortization)

      205,146



      37,271



      38,747



      21,785



      3,763



      306,712



      General and administrative expenses

      110,209



      16,266



      11,124



      10,165



      2,810



      150,574



      Impairment of intangibles and other

      —



      600



      —



      —



      —



      600



      Government stimulus income

      (35,019)



      (4,731)



      (2,865)



      (1,656)



      (164)



      (44,435)



      Operating income (loss)

      59,536



      11,649



      669



      3,345



      (1,330)



      73,869



      Interest expense

      (594)



      (97)



      (79)



      (47)



      (24)



      (841)



      Income (loss) before income taxes and noncontrolling interest

      58,942



      11,552



      590



      3,298



      (1,354)



      73,028



      Income tax expense (benefit)

      12,807



      2,439



      (12)



      373



      (380)



      15,227



      Net income (loss)

      46,135



      9,113



      602



      2,925



      (974)



      57,801



      Less net income (loss) attributable to non controlling interests

      9,922



      2,164



      33



      997



      (7)



      13,109



      Net income (loss) attributable to LHC Group, Inc.'s common stockholder

      $

      36,213



      $

      6,949



      $

      569



      $

      1,928



      $

      (967)



      $

      44,692



      Total assets

      $

      1,656,022



      $

      268,771



      $

      259,742



      $

      101,258



      $

      71,306



      $

      2,357,099



      LHC GROUP, INC. AND SUBSIDIARIES

      SEGMENT INFORMATION

      (Amounts in thousands)

      (Unaudited)



      Six Months Ended June 30, 2021


      Home health
      services


      Hospice
      services


      Home and
      community-
      based
      services


      Facility-
      based
      services


      HCI


      Total

      Net service revenue

      $

      770,362



      $

      126,538



      $

      97,532



      $

      64,399



      $

      11,911



      $

      1,070,742


      Cost of service revenue (excluding depreciation and amortization)

      432,298



      78,217



      69,555



      41,635



      6,439



      628,144


      General and administrative expenses

      242,642



      36,241



      23,452



      22,163



      5,812



      330,310


      Impairment of intangibles and other

      937



      —



      —



      —



      —



      937


      Operating income (loss)

      94,485



      12,080



      4,525



      601



      (340)



      111,351


      Interest expense

      (288)



      (56)



      (34)



      (19)



      (9)



      (406)


      Income (loss) before income taxes and noncontrolling interest

      94,197



      12,024



      4,491



      582



      (349)



      110,945


      Income tax expense (benefit)

      19,596



      2,347



      988



      (95)



      (77)



      22,759


      Net income (loss)

      74,601



      9,677



      3,503



      677



      (272)



      88,186


      Less net income (loss) attributable to non controlling interests

      12,349



      2,223



      364



      979



      (31)



      15,884


      Net income (loss) attributable to LHC Group, Inc.'s common stockholder

      $

      62,252



      $

      7,454



      $

      3,139



      $

      (302)



      $

      (241)



      $

      72,302





      Six Months Ended June 30, 2020


      Home health
      services


      Hospice
      services


      Home and
      community-
      based
      services


      Facility-
      based
      services


      HCI


      Total

      Net service revenue

      $

      707,693



      $

      121,586



      $

      96,139



      $

      63,320



      $

      11,453



      $

      1,000,191



      Cost of service revenue (excluding depreciation and amortization)

      425,586



      75,305



      77,200



      42,127



      7,696



      627,914



      General and administrative expenses

      226,232



      32,892



      22,583



      20,545



      6,188



      308,440



      Impairment of intangibles and other

      —



      600



      —



      —



      —



      600



      Government stimulus income

      (35,019)



      (4,731)



      (2,865)



      (1,656)



      (164)



      (44,435)



      Operating income (loss)

      90,894



      17,520



      (779)



      2,304



      (2,267)



      107,672



      Interest expense

      (2,494)



      (400)



      (345)



      (266)



      (104)



      (3,609)



      Income (loss) before income taxes and noncontrolling interest

      88,400



      17,120



      (1,124)



      2,038



      (2,371)



      104,063



      Income tax expense (benefit)

      16,096



      3,047



      (218)



      174



      (513)



      18,586



      Net income (loss)

      72,304



      14,073



      (906)



      1,864



      (1,858)



      85,477



      Less net income (loss) attributable to non controlling interests

      14,528



      3,131



      (122)



      1,240



      (16)



      18,761



      Net income (loss) attributable to LHC Group, Inc.'s common stockholder

      $

      57,776



      $

      10,942



      $

      (784)



      $

      624



      $

      (1,842)



      $

      66,716



      LHC GROUP, INC. AND SUBSIDIARIES

      SELECT CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA

      (Unaudited)



      Three Months Ended
      June 30,


      Six Months Ended
      June 30,

      Key Data:

      2021


      2020


      2021


      2020









      Home Health Services:








      Locations

      531



      553



      531



      553


      Acquired

      1



      —



      1



      6


      De novo

      —



      —



      —



      —


      Divested/consolidated

      (1)



      (3)



      (4)



      (6)


      Total new admissions

      109,082



      93,482



      217,004



      201,664


      Medicare new admissions

      54,990



      50,545



      109,403



      110,425


      Average daily census

      85,554



      77,530



      84,745



      77,254


      Average Medicare daily census

      45,134



      44,811



      45,186



      45,453


      Medicare completed and billed episodes

      85,663



      81,218



      170,273



      171,445


      Average Medicare case mix for completed and billed Medicare episodes

      1.02



      0.99



      1.02



      1.02


      Average reimbursement per completed and billed Medicare episodes

      $

      2,899



      $

      2,771



      $

      2,881



      $

      2,785


      Total visits

      2,151,665



      1,963,924



      4,209,298



      4,099,715


      Total Medicare visits

      1,091,779



      1,088,026



      2,153,757



      2,324,737


      Average visits per completed and billed Medicare episodes

      12.7



      13.4



      12.6



      13.6


      Organic growth: (1)








      Net revenue

      16.4

      %


      (12.7)

      %


      9.4

      %


      (7.7)

      %

      Net Medicare revenue

      10.3

      %


      (18.6)

      %


      3.2

      %


      (12.6)

      %

      Total new admissions

      16.4

      %


      (4.7)

      %


      7.3

      %


      1.1

      %

      Medicare new admissions

      8.8

      %


      (14.3)

      %


      -0.9

      %


      (8.3)

      %

      Average daily census

      10.3

      %


      (2.4)

      %


      10.2

      %


      (2.0)

      %

      Average Medicare daily census

      0.9

      %


      (12.3)

      %


      0.0

      %


      (10.9)

      %

      Medicare completed and billed episodes

      6.2

      %


      (16.9)

      %


      0.5

      %


      (10.3)

      %









      Hospice Services:








      Locations

      120



      112



      120



      112


      Acquired

      2



      —



      2



      3


      De novo

      —



      —



      1



      —


      Divested/consolidated

      (2)



      —



      (2)



      (1)


      Admissions

      4,967



      4,869



      10,418



      9,929


      Average daily census

      4,454



      4,377



      4,433



      4,333


      Patient days

      405,339



      398,283



      802,313



      788,652


      Average revenue per patient day

      $

      158.54



      $

      153.86



      $

      160.19



      $

      154.00


      Organic growth: (1)








      Total new admissions

      1.1

      %


      1.8

      %


      4.7

      %


      0.9

      %









      Home and Community-Based Services:








      Locations (2)

      133



      111



      133



      111


      Acquired

      1



      —



      1



      4


      De novo

      3



      —



      7



      —


      Divested/consolidated

      —



      —



      —



      —


      Average daily census

      13,514



      14,333



      13,625



      14,358


      Billable hours

      1,878,138



      1,921,900



      3,779,419



      3,907,500


      Revenue per billable hour

      $

      25.88



      $

      25.95



      $

      25.96



      $

      25.64










      Facility-Based Services:








      Long-term Acute Care








      Locations

      12



      13



      12



      13


      Acquired

      —



      —



      —



      —


      Divested/consolidated

      —



      —



      —



      —


      Patient days

      20,199



      23,658



      41,359



      43,819


      Average revenue per patient day

      $

      1,517



      $

      1,385



      $

      1,517



      $

      1,371


      Average Daily Census

      222



      260



      229



      241




      (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.

      (2)

      The number of locations for HCBS has been updated to not only include the physical standalone locations but also the locations that are part of a home health provider.

      RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP, INC.

      (Amounts in thousands)

      (Unaudited)



      Three Months
      Ended
      June 30,

      Six Months

      Ended
      June 30,


      2021


      2020


      2021


      2020

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

      $

      37,643



      $

      44,692



      $

      72,302



      $

      66,716


      Add (net of tax):








      Acquisition, de novo and legal expenses (1)

      3,477



      410



      3,477



      1,516


      Closures/relocations/consolidations (2)

      1,048



      523



      1,179



      866


      COVID-19 impact: 












      PPE, supplies and other expenses (3)

      7,999



      20,170



      16,851



      22,278


      CARES Act tax benefit (4)

      —



      —



      —



      (2,210)


      Provider Relief Fund (PRF) (5)

      —



      (32,882)



      —



      (32,882)


      NCI associated with PRF (6)

      —



      5,643



      —



      5,643


      ERP implementation (7)

      728



      —



      728



      —


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

      $

      50,895



      $

      38,556



      $

      94,537



      $

      61,927


      RECONCILIATION OF ADJUSTED NET INCOME

      ATTRIBUTABLE TO LHC GROUP, INC. PER DILUTED SHARE

      (Amounts in thousands)

      (Unaudited)



      Three Months
      Ended 
      June 30,

      Six Months

      Ended
      June 30,


      2021


      2020


      2021


      2020

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

      $

      1.20



      $

      1.43



      $

      2.30



      $

      2.13


      Add (net of tax):








      Acquisition, de novo and legal expenses (1)

      0.11



      0.01



      0.11



      0.05


      Closures/relocations/consolidations (2)

      0.03



      0.02



      0.04



      0.03


      COVID-19 impact:












      PPE, supplies and other expenses (3)

      0.26



      0.64



      0.54



      0.71


      CARES Act tax benefit (4)

      —



      —



      —



      (0.07)


      Provider Relief Fund (PRF) (5)

      —



      (1.05)



      —



      (1.05)


      NCI associated with PRF (6)

      —



      0.18



      —



      0.18


      ERP implementation (7)

      0.02



      —



      0.02



      —


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

      $

      1.62



      $

      1.23



      $

      3.01



      $

      1.98


      RECONCILIATION OF EBITDA AND ADJUSTED EBITDA

      (Amounts in thousands)

      (Unaudited)



      Three Months Ended
      June 30,

      Six Months Ended
      June 30,


      2021


      2020


      2021


      2020

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

      $

      37,643



      $

      44,692



      $

      72,302



      $

      66,716


      Add:








      Income tax expense

      13,318



      15,227



      22,759



      18,586


      Interest expense, net

      143



      841



      406



      3,609


      Depreciation and amortization 

      4,542



      5,252



      9,541



      10,385


      Adjustment items (1) 

      17,942



      (8,292)



      30,109



      (3,436)


      Adjusted EBITDA

      $

      73,588



      $

      57,720



      $

      135,117



      $

      95,860


















      1. Adjustment items (pre-tax):








      Acquisition, de novo and legal expenses (1)

      4,708



      554



      4,708



      2,064


      Closures/relocation/consolidations (2)

      1,419



      706



      1,596



      1,174


      COVID-19 PPE, supplies and other expenses (3)

      10,829



      27,257



      22,819



      30,135


      Provider Relief Fund (PRF) (5)

      —



      (44,435)



      —



      (44,435)


      NCI associated with PRF (6)

      —



      7,626



      —



      7,626


      ERP implementation (7)

      986






      986





      Total adjustments

      $

      17,942



      $

      (8,292)



      $

      30,109



      $

      (3,436)




















      1.

      Expenses and other costs associated with recently announced or completed acquisitions, de novos and legal expenses ($4.7 million pre-tax in the three and six months ended June 30, 2021; $0.5 million pre-tax in the three months ended June 30, 2020 and $2.1 million pre-tax in the six months ended June 30, 2020).

      2.

      Loss on the sale of an asset and other expenses associated with a closure or consolidation, including impairment ($1.4 million pre-tax in the three months ended June 30, 2021 and $1.6 million in the six months ended June 30, 2021; ($0.7 million pre-tax in the three months ended June 30, 2020 and $1.2 million pre-tax in the six months ended June 30, 2020).

      3.

      COVID-19 related expenses for purchases of personal protective equipment (PPE), supplies and wage adjustments ($10.8 million pre-tax in the three months ended June 30, 2021 and $22.8 million pre-tax in the three months ended June 30, 2020; ($27.3 million pre-tax in the three months ended June 30, 2020 and $30.1 million pre-tax in the six months ended June 30, 2020).

      4.

      Tax benefit related to new legislation in the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") which lifts certain tax deduction limitations and eliminates 80% of taxable income limitations for Net Operating Losses ("NOL"), which we are now able to fully utilize NOLs associated with Almost Family prior to the merger.

      5.

      Government stimulus income recognized during the second quarter of 2020 related to general distribution funds received from the Provider Relief Fund ($44.4 million pre-tax in the three and six months ended June 30, 2020).

      6.

      Non-controlling interest distributed to our Joint Venture partners in association with the Government stimulus income recognized during the second quarter of 2020 ($7.6 million pre-tax in the three months ended June 30, 2020).

      7.

      Expenses and other costs associated with the implementation of an Enterprise Resource Planning software ($1.0 million pre-tax in the second quarter and first half of 2020).

      Contact:

      Eric Elliott


      Senior Vice President of Finance


      (337) 233-1307


      [email protected]

      SOURCE LHC Group, Inc.

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