LHC Group, Inc. (NASDAQ: LHCG) announced its financial results for
the quarter ended June 30, 2020. Unless otherwise noted, all
results are compared with the second quarter ended June 30, 2019.
Second Quarter 2020 Financial
Results
- Net service revenue decreased 5.9%
to $487.3 million due to the impact of the COVID-19 pandemic.
- Net income attributable to LHC
Group’s common stockholders increased 78.8% to $44.7 million, or
$1.43 per diluted share.
- Adjusted net income attributable to
LHC Group’s common stockholders increased 15.9% to $38.6 million,
or $1.23 adjusted earnings per diluted share, compared with $33.3
million, or $1.07 per diluted share, in the same period in 2019.
Adjusted results for the second quarter of 2020 exclude a pre-tax
amount of $0.6 million in acquisition and de novo related expenses
associated with acquisitions completed in late 2019 and in the
first half of 2020, $0.7 million related to a loss on the sale of
an asset and closure related expenses, $27.3 million in COVID-19
related costs and expenses for purchases of personal protective
equipment (PPE), supplies, employee related costs and expenses and
other categories of costs and expenses incurred in response to the
pandemic, and $36.8 million, net of non-controlling interest, in
government stimulus income funded by the Coronavirus Aid, Relief,
and Economic Security (CARES) Act and distributed through the
Provider Relief Fund (PRF).
- Adjusted EBITDA increased 8.8% to
$57.7 million compared with $53.0 million in the same period in
2019.A reconciliation of all non-GAAP financial results can be
found in separate tables at the end of this release.
Operational and Strategic
Highlights
- LHC Group’s quality and patient
satisfaction scores continue to exceed the national average and
outpace industry peers.
- Organic growth in home health
admissions declined 4.7% in the second quarter of 2020 compared
with the same period in 2019 due to the impact of the COVID-19
pandemic.
- Home health organic admissions,
when compared with the same periods in 2019, declined 14.3% in
April, declined 6.7% in May, increased 7.0% in June and increased
8.5% in July.
- Organic growth in hospice
admissions was 1.8% in the second quarter of 2020 compared with the
same period in 2019.
- Hospice organic admissions, when
compared with the same periods in 2019, declined 7.2% in April,
increased 2.7% in May, increased 10.4% in June and increased 9.7%
in July.
- On August 1, 2020, LHC Group
finalized a joint venture with Orlando Health to enhance home
health and home and community based services (HCBS) in the state of
Florida. The joint venture includes six total locations – three
Orlando Health providers and three LHC Group providers in Orlando,
Clermont, Kissimmee, and Altamonte Springs. LHC Group expects
incremental annualized revenue from this joint venture of
approximately $3.5 million.
Commenting on the results, Keith G. Myers, LHC
Group’s Chairman and Chief Executive Officer, said, “The courageous
work of our employees during these unprecedented times, and their
energy, enthusiasm and unwavering desire to care for those in our
charge is nothing short of amazing. During the significant
disruption over the past several months of this public health
emergency, LHC Group has been essential to our hospital and health
system partners, referral sources and the patients, families and
communities we are privileged to serve. Similar to other challenges
the in-home healthcare industry has faced in the past, we know that
we are a much stronger organization now as a result of the rigorous
protocols and care models in place, rapid adoption of technology,
and investments we have made in our employees and personal
protective equipment. The governmental support our industry has
received through the CARES Act and other measures is very
encouraging and complements the ongoing shift to delivering more
care to the patient in the safety and comfort of the home.”
COVID-19 Update The COVID-19
pandemic had an impact on our operations and financial results for
the second quarter of 2020 with a continued impact expected in the
second half of 2020, although to a lesser extent than what we have
experienced to date. During the quarter, we incurred $27.3 million
($20.2 million net of tax), or $0.64 per diluted share, in
additional COVID-19 costs and expenses related to personal
protective equipment (PPE), supplies, employee related costs and
expenses, including, without limitation, bonuses, increased wages,
wage supplements and PTO replenishments for front line caregivers,
and other categories of costs and expenses incurred in response to
the pandemic.
We experienced lower year-over-year patient
volumes in the second quarter from our referral sources related to
various COVID-19 policies implemented by local, state and federal
public health and governmental authorities, a reduction in home
visits, and a reduction in elective procedures. As the second
quarter progressed, we saw weekly improvement in all of these areas
with home health average daily census, admissions and organic
growth recovering from their low points the week of April 13, 2020
and steadily improving with average daily census reaching pre-COVID
levels by the week of June 1, 2020. Home health average daily
census, admissions and organic growth for the month of July also
exceeded prior-year levels for July 2019.
We continue to invest in creating the safest
environment possible for our employees, patients and communities we
serve. The robust employee pre-screening, patient and employee
protection protocols and other infection control procedures we
implemented in March in accordance with Centers for Disease Control
recommendations for all 32,000 employees remain in place, and we
have also secured adequate par levels of PPE to ensure we are able
to continue providing care in the home setting. In addition, we
have implemented a number of programs to support our employees,
including a special COVID-19 pandemic grant program as part of our
501(c)(3) LHC Group Purpose Fund that supports employees
experiencing financial hardships, retirement plan amendments,
special cash-in opportunities for accumulated paid time off,
expanded offerings in our employee assistance program, a wage
supplement program designed to restore certain lost wages for
frontline direct patient care-giving employees that qualified, and
a PTO replenishment program designed to restore certain hours of
paid time off for front line direct patient care-giving employees
that qualified and for any employees who previously donated their
PTO hours to these front line direct patient caregivers.
LHC Group has also implemented a number of cost
containment initiatives, including eliminating non-essential travel
and expenses along with employee flexing, furloughs, and other
measures. We continue to have strong access to capital with over
$507.2 million of available liquidity from cash and our revolving
credit facility net of the $310.7 million liability associated with
the Medicare Accelerated and Advance Payments.
During April 2020, we received funds totaling
$310.7 million under the Medicare Accelerated and Advance Payment
Program as provided for by the CARES Act. The accelerated Medicare
payments are interest free and the program currently requires that
the Centers for Medicare and Medicaid Services (CMS) recoup the
accelerated payments beginning 120 days after receipt by the
provider, by withholding future Medicare fee-for service payments
for claims until such time as the full accelerated payment has been
recouped. The program currently requires Medicare Part A providers
to repay the funds within 210 days of receipt. Cash flows from
operations for the second quarter of 2020 included $310.7 million
of accelerated Medicare payments, all of which remains deferred on
the balance sheet at June 30, 2020.
Also during April 2020, we received funds
totaling $88.7 million related to the Provider Relief Fund as
provided for by the CARES Act. We recognized $44.4 million ($27.2
million net of non-controlling interest and 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. Cash flows from operations for the second
quarter of 2020 included $44.4 million of Provider Relief Fund
distributions, of which $44.3 million remains deferred on the
balance sheet at June 30, 2020.
COVID-19 TrendsPlease refer to
the supplemental information that can be found under Quarterly
Results on the Company’s Investor Relations page to access more
detailed statistics on pre-COVID-19 and post-COVID-19 trends.
Full Year 2020 GuidanceThe
Company is reinstating full year 2020 guidance after withdrawing it
on May 7, 2020, due to the uncertainty around the COVID-19
pandemic. Full year 2020 net service revenue is expected to be in a
range of $2.0 billion to $2.05 billion, adjusted earnings per
diluted share is expected to be in a range of $4.60 to $4.80, and
Adjusted EBITDA, less non-controlling interest, is expected to be
in a range of $220 million to $230 million.
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
reimbursement changes, if any, future acquisitions, if made, de
novo locations, if opened, location closures, if any, or future
legal expenses, if necessary.
Joshua L. Proffitt, LHC Group’s President and
Chief Financial Officer, added, “Notwithstanding the headwinds
caused by the coronavirus pandemic, we have higher confidence today
in the trajectory of our underlying business fundamentals and our
positioning for entering 2021 than we did at the beginning of this
year. In addition to the weekly improvement in average daily census
and admissions since our low point in mid-April, we believe the
organic growth and market share gains we have achieved from the
gravitation to high quality in-home healthcare providers are clear
indications that the future of LHC Group is as bright as ever. For
the second consecutive quarter, we have earned over 3,900 new home
health referral sources with 3,915 in the first quarter and 3,996
in the second quarter of 2020. By executing on our care model and
associated operational strategies under PDGM and strengthening them
for the current and potential realities under COVID-19, we are able
to maintain our focus on proving our value to all stakeholders
today while diligently preparing for an historic consolidation and
seismic shift in care delivery to in-home healthcare. I would like
to thank all of the clinical professionals and support personnel
across the country. You have truly gone above and beyond during
these historic times in our country to put others above self and to
be an integral part of the solution for our country during this
pandemic.”
Conference CallLHC Group will
host a conference call on Thursday, August 6, 2020, at 10:00 a.m.
Eastern time to discuss its second quarter 2020 results. The
toll-free number to call for this interactive teleconference is
(866) 393‑1608 (international callers: (973) 890-8327). A
telephonic replay of the conference call will be available through
midnight on August 13, 2020, by dialing (855) 859‑2056
(international callers: (404) 537-3406) and entering confirmation
number 1070957.
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, providing quality, value-based healthcare to patients
primarily within the comfort, safety and privacy of their home or
place of residence. LHC Group’s services cover a wide range of
healthcare needs for patients and families dealing with illness,
injury, or chronic conditions. The company’s 32,000 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. LHC
Group is the preferred in-home healthcare partner for 350 leading
hospitals around the country.
Forward-looking StatementsThis
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 2020 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
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(Amounts in thousands, except share
data)(Unaudited)
| |
June 30, 2020 |
|
December 31, 2019 |
|
ASSETS |
|
|
|
| Current assets: |
|
|
|
|
Cash |
$ |
172,752 |
|
|
$ |
31,672 |
|
|
Receivables: |
|
|
|
|
Patient accounts receivable |
324,587 |
|
|
284,962 |
|
|
Other receivables |
10,674 |
|
|
10,832 |
|
|
Total receivables |
335,261 |
|
|
295,794 |
|
|
Prepaid income taxes |
6,330 |
|
|
9,652 |
|
|
Prepaid expenses |
23,740 |
|
|
21,304 |
|
|
Other current assets |
26,698 |
|
|
21,852 |
|
|
Total current assets |
564,781 |
|
|
380,274 |
|
| Property, building and equipment,
net of accumulated depreciation of $74,486 and $69,441,
respectively |
123,408 |
|
|
97,908 |
|
| Goodwill |
1,234,145 |
|
|
1,219,972 |
|
| Intangible assets, net of
accumulated amortization of $17,070 and $16,431, respectively |
310,548 |
|
|
305,556 |
|
| Assets held for sale |
1,900 |
|
|
2,500 |
|
| Operating lease right of use
asset |
100,834 |
|
|
95,452 |
|
| Other assets |
21,483 |
|
|
38,633 |
|
|
Total assets |
$ |
2,357,099 |
|
|
$ |
2,140,295 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
| Current liabilities: |
|
|
|
|
Accounts payable and other accrued liabilities |
$ |
70,138 |
|
|
$ |
83,572 |
|
|
Salaries, wages, and benefits payable |
86,405 |
|
|
85,631 |
|
|
Self-insurance reserves |
34,438 |
|
|
31,188 |
|
|
Government stimulus advance |
44,273 |
|
|
— |
|
|
Contract liabilities – deferred revenue |
310,712 |
|
|
— |
|
|
Current operating lease liabilities |
34,838 |
|
|
28,701 |
|
|
Amounts due to governmental entities |
2,186 |
|
|
1,880 |
|
|
Total current liabilities |
582,990 |
|
|
230,972 |
|
| Deferred income taxes |
70,959 |
|
|
60,498 |
|
| Income taxes payable |
6,373 |
|
|
3,867 |
|
| Revolving credit facility |
30,000 |
|
|
253,000 |
|
| Other long term liabilities |
17,818 |
|
|
— |
|
| Operating lease payable |
68,858 |
|
|
69,556 |
|
|
Total liabilities |
776,998 |
|
|
617,893 |
|
| Noncontrolling interest —
redeemable |
21,998 |
|
|
15,151 |
|
| 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;
36,327,819 and 36,129,280 shares issued, and 31,121,968 and
30,992,390 shares outstanding, respectively |
363 |
|
|
361 |
|
|
Treasury stock — 5,205,851 and 5,136,890 shares at cost,
respectively |
(68,654 |
) |
|
(60,060 |
) |
|
Additional paid-in capital |
955,119 |
|
|
949,321 |
|
|
Retained earnings |
590,417 |
|
|
523,701 |
|
|
Total LHC Group, Inc. stockholders’ equity |
1,477,245 |
|
|
1,413,323 |
|
|
Noncontrolling interest — non-redeemable |
80,858 |
|
|
93,928 |
|
|
Total stockholders' equity |
1,558,103 |
|
|
1,507,251 |
|
|
Total liabilities and stockholders' equity |
$ |
2,357,099 |
|
|
$ |
2,140,295 |
|
LHC GROUP, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
INCOME(Amounts in thousands, except per share
data)(Unaudited)
| |
Three Months EndedJune 30, |
|
Six Months Ended June 30, |
| |
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Net service revenue |
$ |
487,320 |
|
|
$ |
517,842 |
|
|
$ |
1,000,191 |
|
|
$ |
1,020,427 |
|
| Cost of service revenue
(excluding depreciation and amortization) |
306,712 |
|
|
325,860 |
|
|
627,914 |
|
|
646,852 |
|
| Gross margin |
180,608 |
|
|
191,982 |
|
|
372,277 |
|
|
373,575 |
|
| General and administrative
expenses |
150,574 |
|
|
148,584 |
|
|
308,440 |
|
|
293,805 |
|
| Impairment of intangibles and
other |
600 |
|
|
1,018 |
|
|
600 |
|
|
7,337 |
|
| Government stimulus income |
(44,435 |
) |
|
— |
|
|
(44,435 |
) |
|
— |
|
| Operating income |
73,869 |
|
|
42,380 |
|
|
107,672 |
|
|
72,433 |
|
| Interest expense |
(841 |
) |
|
(2,885 |
) |
|
(3,609 |
) |
|
(5,937 |
) |
| Income before income taxes and
noncontrolling interest |
73,028 |
|
|
39,495 |
|
|
104,063 |
|
|
66,496 |
|
| Income tax expense |
15,227 |
|
|
9,557 |
|
|
18,586 |
|
|
13,157 |
|
| Net income |
57,801 |
|
|
29,938 |
|
|
85,477 |
|
|
53,339 |
|
|
Less net income attributable to noncontrolling interests |
13,109 |
|
|
4,938 |
|
|
18,761 |
|
|
9,483 |
|
| Net income attributable to LHC
Group, Inc.’s common stockholders |
$ |
44,692 |
|
|
$ |
25,000 |
|
|
$ |
66,716 |
|
|
$ |
43,856 |
|
| |
|
|
|
|
|
|
|
| Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
$ |
1.44 |
|
|
$ |
0.81 |
|
|
$ |
2.15 |
|
|
$ |
1.42 |
|
|
Diluted |
$ |
1.43 |
|
|
$ |
0.80 |
|
|
$ |
2.13 |
|
|
$ |
1.41 |
|
| Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
31,104 |
|
|
30,960 |
|
|
31,060 |
|
|
30,899 |
|
|
Diluted |
31,324 |
|
|
31,201 |
|
|
31,301 |
|
|
31,188 |
|
LHC GROUP, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(Amounts in thousands) (Unaudited)
| |
Six Months Ended June 30, |
| |
2020 |
|
2019 |
| Operating
activities: |
|
|
|
|
Net income |
$ |
85,477 |
|
|
$ |
53,339 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
Depreciation and amortization expense |
10,385 |
|
|
8,400 |
|
|
Amortization of operating lease right of use asset |
17,090 |
|
|
15,528 |
|
|
Stock-based compensation expense |
6,943 |
|
|
4,392 |
|
|
Deferred income taxes |
10,461 |
|
|
4,821 |
|
|
Loss on disposal of assets |
154 |
|
|
312 |
|
|
Impairment of intangibles and other |
600 |
|
|
7,337 |
|
|
Changes in operating assets and liabilities, net of
acquisitions: |
|
|
|
|
Receivables |
(38,186 |
) |
|
(22,704 |
) |
|
Prepaid expenses |
(2,436 |
) |
|
(332 |
) |
|
Other assets |
(4,169 |
) |
|
8 |
|
|
Prepaid income taxes |
3,322 |
|
|
5,063 |
|
|
Accounts payable and accrued expenses |
(16,354 |
) |
|
(935 |
) |
|
Salaries, wages, and benefits payable |
3,850 |
|
|
(4,547 |
) |
|
Government stimulus advance |
44,273 |
|
|
— |
|
|
Contract liabilities – deferred revenue |
310,712 |
|
|
— |
|
|
Other long term liabilities |
17,818 |
|
|
— |
|
|
Operating lease liabilities |
(16,876 |
) |
|
(13,253 |
) |
|
Income taxes payable |
2,506 |
|
|
374 |
|
|
Net amounts due to/from governmental entities |
306 |
|
|
528 |
|
| Net cash provided by
operating activities |
435,876 |
|
|
58,331 |
|
| Investing
activities: |
|
|
|
|
Purchases of property, building and equipment |
(40,944 |
) |
|
(7,599 |
) |
|
Proceeds from sale of property, building and equipment |
7,142 |
|
|
— |
|
|
Cash received (paid) for acquisitions |
3,125 |
|
|
(20,431 |
) |
| Net cash used in
investing activities |
(30,677 |
) |
|
(28,030 |
) |
| Financing
activities: |
|
|
|
|
Proceeds from line of credit |
256,230 |
|
|
25,000 |
|
|
Payments on line of credit |
(479,230 |
) |
|
(30,000 |
) |
|
Proceeds from employee stock purchase plan |
1,107 |
|
|
931 |
|
|
Payments on debt |
— |
|
|
(7,650 |
) |
|
Noncontrolling interest distributions |
(10,267 |
) |
|
(13,857 |
) |
|
Withholding taxes paid on stock-based compensation |
(8,602 |
) |
|
(8,519 |
) |
|
Purchase of additional controlling interest |
(23,575 |
) |
|
(18,748 |
) |
|
Exercise of vested awards and stock options |
218 |
|
|
(84 |
) |
| Net cash used in
financing activities |
(264,119 |
) |
|
(52,927 |
) |
| Change in cash |
141,080 |
|
|
(22,626 |
) |
| Cash at beginning of
period |
31,672 |
|
|
49,363 |
|
| Cash at end of
period |
$ |
172,752 |
|
|
$ |
26,737 |
|
| Supplemental disclosures
of cash flow information: |
|
|
|
|
Interest paid |
$ |
4,083 |
|
|
$ |
4,038 |
|
|
Interest taxes paid |
$ |
2,375 |
|
|
$ |
4,042 |
|
| Non-Cash Operating
Activity: |
|
|
|
|
Operating right of use assets in exchange for lease
obligations |
$ |
18,690 |
|
|
$ |
98,070 |
|
| Non-Cash Investing
Activity: |
|
|
|
|
Accrued capital expenditures |
$ |
2,348 |
|
|
$ |
953 |
|
LHC GROUP, INC. AND
SUBSIDIARIESSEGMENT INFORMATION(Amounts
in thousands)(Unaudited)
| |
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
SUBSIDIARIESSEGMENT INFORMATION(Amounts
in thousands)(Unaudited)
| |
Three Months Ended June 30, 2019 |
| |
Home health services |
|
Hospice services |
|
Home and community-based services |
|
Facility-based services |
|
HCI |
|
Total |
|
Net service revenue |
$ |
375,253 |
|
|
$ |
55,057 |
|
|
$ |
52,414 |
|
|
$ |
27,975 |
|
|
$ |
7,143 |
|
|
$ |
517,842 |
|
| Cost of service revenue
(excluding depreciation and amortization) |
230,545 |
|
|
34,858 |
|
|
39,505 |
|
|
17,572 |
|
|
3,380 |
|
|
325,860 |
|
| General and administrative
expenses |
108,958 |
|
|
15,096 |
|
|
11,213 |
|
|
9,335 |
|
|
3,982 |
|
|
148,584 |
|
| Other intangible impairment
charge |
748 |
|
|
270 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,018 |
|
| Operating income (loss) |
35,002 |
|
|
4,833 |
|
|
1,696 |
|
|
1,068 |
|
|
(219 |
) |
|
42,380 |
|
| Interest expense |
(2,023 |
) |
|
(323 |
) |
|
(284 |
) |
|
(170 |
) |
|
(85 |
) |
|
(2,885 |
) |
| Income (loss) before income taxes
and noncontrolling interest |
32,979 |
|
|
4,510 |
|
|
1,412 |
|
|
898 |
|
|
(304 |
) |
|
39,495 |
|
| Income tax expense (benefit) |
8,070 |
|
|
1,581 |
|
|
(171 |
) |
|
148 |
|
|
(71 |
) |
|
9,557 |
|
| Net income (loss) |
24,909 |
|
|
2,929 |
|
|
1,583 |
|
|
750 |
|
|
(233 |
) |
|
29,938 |
|
| Less net income (loss)
attributable to noncontrolling interests |
3,948 |
|
|
898 |
|
|
(267 |
) |
|
365 |
|
|
(6 |
) |
|
4,938 |
|
| Net income (loss) attributable to
LHC Group, Inc.'s common stockholders |
$ |
20,961 |
|
|
$ |
2,031 |
|
|
$ |
1,850 |
|
|
$ |
385 |
|
|
$ |
(227 |
) |
|
$ |
25,000 |
|
| Total assets |
$ |
1,407,221 |
|
|
$ |
234,789 |
|
|
$ |
240,746 |
|
|
$ |
77,686 |
|
|
$ |
69,413 |
|
|
$ |
2,029,855 |
|
LHC GROUP, INC. AND
SUBSIDIARIESSEGMENT INFORMATION(Amounts
in thousands)(Unaudited)
| |
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
SUBSIDIARIESSEGMENT INFORMATION(Amounts
in thousands)(Unaudited)
| |
Six Months Ended June 30, 2019 |
| |
Home health services |
|
Hospice services |
|
Home and community-based services |
|
Facility-based services |
|
HCI |
|
Total |
|
Net service revenue |
$ |
738,288 |
|
|
$ |
106,793 |
|
|
$ |
104,199 |
|
|
$ |
55,676 |
|
|
$ |
15,471 |
|
|
$ |
1,020,427 |
|
| Cost of service revenue
(excluding depreciation and amortization) |
456,668 |
|
|
68,034 |
|
|
79,360 |
|
|
35,304 |
|
|
7,486 |
|
|
646,852 |
|
| General and administrative
expenses |
213,797 |
|
|
29,949 |
|
|
22,195 |
|
|
18,512 |
|
|
9,352 |
|
|
293,805 |
|
| Other intangible impairment
charge |
7,066 |
|
|
271 |
|
|
— |
|
|
— |
|
|
— |
|
|
7,337 |
|
| Operating income (loss) |
60,757 |
|
|
8,539 |
|
|
2,644 |
|
|
1,860 |
|
|
(1,367 |
) |
|
72,433 |
|
| Interest expense |
(4,161 |
) |
|
(666 |
) |
|
(585 |
) |
|
(350 |
) |
|
(175 |
) |
|
(5,937 |
) |
| Income (loss) before income taxes
and noncontrolling interest |
56,596 |
|
|
7,873 |
|
|
2,059 |
|
|
1,510 |
|
|
(1,542 |
) |
|
66,496 |
|
| Income tax expense (benefit) |
11,278 |
|
|
2,027 |
|
|
(20 |
) |
|
153 |
|
|
(281 |
) |
|
13,157 |
|
| Net income (loss) |
45,318 |
|
|
5,846 |
|
|
2,079 |
|
|
1,357 |
|
|
(1,261 |
) |
|
53,339 |
|
| Less net income (loss)
attributable to noncontrolling interests |
7,728 |
|
|
1,499 |
|
|
(577 |
) |
|
846 |
|
|
(13 |
) |
|
9,483 |
|
| Net income (loss) attributable to
LHC Group, Inc.'s common stockholders |
$ |
37,590 |
|
|
$ |
4,347 |
|
|
$ |
2,656 |
|
|
$ |
511 |
|
|
$ |
(1,248 |
) |
|
$ |
43,856 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
LHC GROUP, INC. AND
SUBSIDIARIESSELECT CONSOLIDATED KEY STATIISTICAL
AND FINANCIAL DATA(Unaudited)
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| Key
Data: |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
| |
|
|
|
|
|
|
|
|
| Home Health
Services: |
|
|
|
|
|
|
|
|
|
Locations |
|
553 |
|
|
|
539 |
|
|
|
553 |
|
|
|
539 |
|
|
|
Acquired |
|
— |
|
|
|
7 |
|
|
|
6 |
|
|
|
15 |
|
|
|
De novo |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Divested/consolidated |
|
(3 |
) |
|
|
(8 |
) |
|
|
(6 |
) |
|
|
(16 |
) |
|
|
Total new admissions |
|
93,482 |
|
|
|
95,198 |
|
|
|
201,664 |
|
|
|
188,872 |
|
|
|
Medicare new admissions |
|
50,545 |
|
|
|
57,391 |
|
|
|
110,425 |
|
|
|
114,847 |
|
|
|
Average daily census |
|
77,530 |
|
|
|
77,137 |
|
|
|
77,254 |
|
|
|
76,407 |
|
|
|
Average Medicare daily census |
|
44,811 |
|
|
|
49,827 |
|
|
|
45,453 |
|
|
|
49,619 |
|
|
|
Medicare completed and billed episodes |
|
81,218 |
|
|
|
93,824 |
|
|
|
171,445 |
|
|
|
184,795 |
|
|
|
Average Medicare case mix for completed and billed Medicare
episodes |
|
0.99 |
|
|
|
1.10 |
|
|
|
1.02 |
|
|
|
1.09 |
|
|
|
Average reimbursement per completed and billed Medicare
episodes |
|
$ |
2,771 |
|
|
|
$ |
2,842 |
|
|
|
$ |
2,785 |
|
|
|
$ |
2,846 |
|
|
|
Total visits |
|
1,963,924 |
|
|
|
2,562,147 |
|
|
|
4,099,715 |
|
|
|
5,083,156 |
|
|
|
Total Medicare visits |
|
1,088,026 |
|
|
|
1,686,243 |
|
|
|
2,324,737 |
|
|
|
3,353,150 |
|
|
|
Average visits per completed and billed Medicare episodes |
|
13.4 |
|
|
|
18.0 |
|
|
|
13.6 |
|
|
|
18.1 |
|
|
|
Organic growth: (1) |
|
|
|
|
|
|
|
|
|
Net revenue |
|
(12.7 |
) |
% |
|
6.6 |
|
% |
|
(7.7 |
) |
% |
|
6.8 |
|
% |
|
Net Medicare revenue |
|
(18.6 |
) |
% |
|
4.7 |
|
% |
|
(12.6 |
) |
% |
|
3.2 |
|
% |
|
Total new admissions |
|
(4.7 |
) |
% |
|
9.1 |
|
% |
|
1.1 |
|
% |
|
7.4 |
|
% |
|
Medicare new admissions |
|
(14.3 |
) |
% |
|
1.9 |
|
% |
|
(8.3 |
) |
% |
|
1.0 |
|
% |
|
Average daily census |
|
(2.4 |
) |
% |
|
4.6 |
|
% |
|
(2.0 |
) |
% |
|
4.3 |
|
% |
|
Average Medicare daily census |
|
(12.3 |
) |
% |
|
(0.6 |
) |
% |
|
(10.9 |
) |
% |
|
(1.2 |
) |
% |
|
Medicare completed and billed episodes |
|
(16.9 |
) |
% |
|
0.2 |
|
% |
|
(10.3 |
) |
% |
|
(0.2 |
) |
% |
| |
|
|
|
|
|
|
|
|
| Hospice
Services: |
|
|
|
|
|
|
|
|
|
Locations |
|
112 |
|
|
|
104 |
|
|
|
112 |
|
|
|
104 |
|
|
|
Acquired |
|
— |
|
|
|
5 |
|
|
|
3 |
|
|
|
6 |
|
|
|
De novo |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Divested/consolidated |
|
— |
|
|
|
(4 |
) |
|
|
(1 |
) |
|
|
(5 |
) |
|
|
Admissions |
|
4,869 |
|
|
|
4,637 |
|
|
|
9,929 |
|
|
|
9,225 |
|
|
|
Average daily census |
|
4,329 |
|
|
|
4,070 |
|
|
|
4,309 |
|
|
|
3,911 |
|
|
|
Patient days |
|
398,283 |
|
|
|
370,407 |
|
|
|
788,652 |
|
|
|
707,875 |
|
|
|
Average revenue per patient day |
|
$ |
154.85 |
|
|
|
$ |
152.44 |
|
|
|
$ |
154.49 |
|
|
|
$ |
154.42 |
|
|
|
Organic growth: (1) |
|
|
|
|
|
|
|
|
|
Total new admissions |
|
1.8 |
|
% |
|
9.6 |
|
% |
|
0.9 |
|
% |
|
7.9 |
|
% |
| |
|
|
|
|
|
|
|
|
| Home and
Community-Based Services: |
|
|
|
|
|
|
|
|
|
Locations (2) |
|
111 |
|
|
|
80 |
|
|
|
111 |
|
|
|
80 |
|
|
|
Acquired |
|
— |
|
|
|
3 |
|
|
|
4 |
|
|
|
3 |
|
|
|
De novo |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Divested/consolidated |
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
Average daily census |
|
14,333 |
|
|
|
14,002 |
|
|
|
14,358 |
|
|
|
14,033 |
|
|
|
Billable hours |
|
1,928,860 |
|
|
|
2,292,719 |
|
|
|
3,922,603 |
|
|
|
4,564,613 |
|
|
|
Revenue per billable hour |
|
$ |
25.86 |
|
|
|
$ |
23.46 |
|
|
|
$ |
25.55 |
|
|
|
$ |
23.44 |
|
|
|
|
|
|
|
|
|
|
|
|
| Facility-Based
Services: |
|
|
|
|
|
|
|
|
|
Long-term Acute Care |
|
|
|
|
|
|
|
|
|
Locations |
|
13 |
|
|
|
12 |
|
|
|
13 |
|
|
|
12 |
|
|
|
Acquired |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Divested/consolidated |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Patient days |
|
23,658 |
|
|
|
19,970 |
|
|
|
43,819 |
|
|
|
39,606 |
|
|
|
Average revenue per patient day |
|
$ |
1,385 |
|
|
|
$ |
1,270 |
|
|
|
$ |
1,371 |
|
|
|
$ |
1,278 |
|
|
|
Average Daily Census |
|
257 |
|
|
|
219 |
|
|
|
239 |
|
|
|
219 |
|
|
- 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.
- 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, |
| |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Net income attributable to LHC Group, Inc.’s common
stockholders |
|
$ |
44,692 |
|
|
|
$ |
25,000 |
|
|
$ |
66,716 |
|
|
|
$ |
43,856 |
|
| Add (net of
tax): |
|
|
|
|
|
|
|
|
| Acquisition and de novo
expenses (1) |
|
410 |
|
|
|
6,713 |
|
|
1,516 |
|
|
|
11,981 |
|
|
Closures/relocations/consolidations (2) |
|
523 |
|
|
|
1,537 |
|
|
866 |
|
|
|
3,781 |
|
| COVID-19 impact: |
|
|
|
|
|
|
|
|
|
|
|
|
|
PPE, supplies and other expenses (3) |
|
20,170 |
|
|
|
— |
|
|
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 |
|
|
|
— |
|
| Provider moratorium
impairment (7) |
|
— |
|
|
|
— |
|
|
— |
|
|
|
4,332 |
|
| Adjusted net income
attributable to LHC Group, Inc.’s common stockholders |
|
$ |
38,556 |
|
|
|
$ |
33,250 |
|
|
$ |
61,927 |
|
|
|
$ |
63,950 |
|
RECONCILIATION OF ADJUSTED NET
INCOMEATTRIBUTABLE TO LHC GROUP, INC. PER DILUTED
SHARE(Amounts in thousands)(Unaudited)
| |
|
Three Months Ended June 30, |
Six Months Ended June 30, |
| |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Net income attributable to LHC Group, Inc.’s common
stockholders |
|
$ |
1.43 |
|
|
|
$ |
0.80 |
|
|
$ |
2.13 |
|
|
|
$ |
1.41 |
|
| Add (net of
tax): |
|
|
|
|
|
|
|
|
| Acquisition and de novo
expenses (1) |
|
0.01 |
|
|
|
0.22 |
|
|
0.05 |
|
|
|
0.39 |
|
|
Closures/relocations/consolidations (2) |
|
0.02 |
|
|
|
0.05 |
|
|
0.03 |
|
|
|
0.12 |
|
| COVID-19 impact: |
|
|
|
|
|
|
|
|
|
|
|
|
|
PPE, supplies and other expenses (3) |
|
0.64 |
|
|
|
— |
|
|
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 |
|
|
|
— |
|
| Provider moratorium
impairment (7) |
|
— |
|
|
|
— |
|
|
— |
|
|
|
0.14 |
|
| Adjusted net income
attributable to LHC Group, Inc.’s common stockholders |
|
$ |
1.23 |
|
|
|
$ |
1.07 |
|
|
$ |
1.98 |
|
|
|
$ |
2.06 |
|
RECONCILIATION OF EBITDA AND ADJUSTED
EBITDA(Amounts in thousands)(Unaudited)
| |
|
Three Months Ended June 30, |
Six Months Ended June 30, |
| |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Net income attributable to LHC Group, Inc.’s common
stockholders |
|
$ |
44,692 |
|
|
|
$ |
25,000 |
|
|
$ |
66,716 |
|
|
|
$ |
43,856 |
|
| Add: |
|
|
|
|
|
|
|
|
| Income tax expense |
|
15,227 |
|
|
|
9,557 |
|
|
18,586 |
|
|
|
13,157 |
|
| Interest expense,
net |
|
841 |
|
|
|
2,885 |
|
|
3,609 |
|
|
|
5,937 |
|
| Depreciation and
amortization |
|
5,252 |
|
|
|
4,198 |
|
|
10,385 |
|
|
|
8,400 |
|
| Adjustment items
(1) |
|
(8,292 |
) |
|
|
11,404 |
|
|
(3,436 |
) |
|
|
27,808 |
|
| Adjusted EBITDA |
|
$ |
57,720 |
|
|
|
$ |
53,044 |
|
|
$ |
95,860 |
|
|
|
$ |
99,158 |
|
| 1. Adjustment items
(pre-tax): |
|
|
|
|
|
|
|
|
| Acquisition and de novo
expenses (1) |
|
554 |
|
|
|
9,279 |
|
|
2,064 |
|
|
|
16,574 |
|
|
Closures/relocation/consolidations (2) |
|
706 |
|
|
|
2,125 |
|
|
1,174 |
|
|
|
5,234 |
|
| COVID-19 PPE, supplies
and other expenses (3) |
|
27,257 |
|
|
|
— |
|
|
30,135 |
|
|
|
— |
|
| Provider Relief Fund
(PRF) (5) |
|
(44,435 |
) |
|
|
— |
|
|
(44,435 |
) |
|
|
— |
|
| NCI associated with PRF
(6) |
|
7,626 |
|
|
|
— |
|
|
7,626 |
|
|
|
— |
|
| Provider moratorium
impairment (7) |
|
— |
|
|
|
— |
|
|
— |
|
|
|
6,000 |
|
|
Total adjustments |
|
$ |
(8,292 |
) |
|
|
$ |
11,404 |
|
|
$ |
(3,436 |
) |
|
|
$ |
27,808 |
|
- Expenses and other costs associated with recently announced or
completed acquisitions and de novos. ($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).
- Loss on the sale of an asset and other expenses associated with
a closure or consolidation ($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).
- COVID-19 related expenses for purchases of personal protective
equipment (PPE), supplies and employee benefit expenses including,
without limitation, bonuses and increased wages, wage supplements
and PTO replenishments for front line caregivers. ($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).
- 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.
- 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 months
ended June 30, 2020).
- 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)
- During the first quarter of 2019, the Company recorded $6.0
million of moratoria fair value impairment as a result of the
Centers for Medicare and Medicaid Services (“CMS”) action to remove
all federal moratoria with regard to Medicare provider enrollment.
In assigning fair value acquired in acquisitions as required by ASC
805, Business Combinations, the Company had assigned fair value to
Certificates of need or license moratoria, as applicable, in
certain states.
| Contact: |
Eric Elliott |
| |
Senior Vice President of Finance |
| |
(337) 233-1307 |
| |
eric.elliott@lhcgroup.com |
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