LHC Group Announces Fourth Quarter And Year-End 2010 Results

Highlights:

• Net service revenue was $168.1 million for the fourth quarter of 2010 and $635.0 million for full‑year 2010;
• Diluted earnings per share was $0.63 for the fourth quarter of 2010 and $2.68 for full‑year 2010; and
• Organic growth in net revenue was 11.4% for the fourth quarter of 2010 and organic growth in total new admissions was 11.5% for the fourth quarter of 2010.

LAFAYETTE, La., March 2, 2011 (GLOBE NEWSWIRE) -- LHC Group, Inc. (Nasdaq:LHCG), a national provider of home health and hospice services, announced today its financial results for the three months and year ended December 31, 2010.

Financial Results for the Fourth Quarter

• Net service revenue for the fourth quarter of 2010 increased 18.8% to $168.1 million compared with $141.5 million for the same period in 2009. Net service revenue for the fourth quarter of 2010 reflects a decrease of approximately $1.8 million related to the reduction in fiscal year 2011 home health reimbursement rates of approximately 5% that affected episodes in November and December of 2010.
• Net income attributable to LHC Group for the fourth quarter of 2010 decreased 9.6% to $11.4 million compared with $12.7 million for the same period in 2009. Net income attributable to LHC Group for the fourth quarter of 2010 includes costs associated with converting multiple home health and hospice information systems to two systems. These costs were approximately $1.6 million or $0.05 in diluted earnings per share in the fourth quarter.
• Diluted earnings per share decreased 10.0% to $0.63 for the fourth quarter of 2010 compared with $0.70 for the same period in 2009.

Financial Results for the Year

• Net service revenue for the year ended December 31, 2010, increased 19.4% to $635.0 million compared with $532.0 million for the same period in 2009.
• Net income attributable to LHC Group for the year ended December 31, 2010, increased 11.2% to $48.8 million compared with $43.9 million for the same period in 2009.
• Diluted earnings per share increased 10.3% to $2.68 for the year ended December 31, 2010, compared with $2.43 for the same period in 2009.

Guidance

The Company also announced its net revenue and fully diluted earnings per share guidance for fiscal-year 2011. Fiscal-year net service revenue is expected to be in the range of $660 million to $670 million and fully diluted earnings per share is expected to be in the range of $2.15 to $2.25.  This guidance does not take into account the impact of any future acquisitions or share repurchases, if made, or de novo locations, if opened, or future reimbursement changes, if any.

In commenting on the results, Keith G. Myers, Chief Executive Officer of LHC Group, said, "We are pleased with our operating results and the overall performance of our company and our team in 2010.  Despite the challenges of absorbing a 5.2% reduction in Medicare reimbursement for home health services, which affected episodes of care in the last two months of 2010, we ended the year with excellent organic volume growth in new admissions of 13.1% and organic revenue growth of 12.6%.  With regard to external growth, we acquired 30 locations through 14 separate transactions in 2010 and nine locations through five separate transactions in the first two months of 2011.  Most importantly, our team of dedicated caregivers in communities throughout the country continues to provide the highest quality of care to the patients, families and communities we serve day in and day out.  As we look ahead to the remainder of 2011 and beyond, we are well prepared and well positioned to continue increasing shareholder value by controlling cost and capitalizing on the opportunities we see ahead for both internal and external volume growth."