LAFAYETTE, La., Nov. 4, 2020 /PRNewswire/ -- LHC Group, Inc.
(NASDAQ: LHCG) announced its financial results for the quarter
ended September 30, 2020. Unless
otherwise noted, all results are compared with the third quarter
ended September 30, 2019.
Third Quarter 2020 Financial Results
- Net service revenue increased 0.4% to $530.7 million.
- Based on improved current and projected future results, LHC
Group intends to return the entire $93.3
million in funds it has received from the Provider Relief
Fund (PRF) under the Coronavirus Aid, Relief, and Economic Security
(CARES) Act.
- Net income attributable to LHC Group's common stockholders
decreased to $14.5 million, or
$0.46 per diluted share, due to the
reversal of $44.4 million, or
$0.87 per diluted share, net of
non-controlling interest, of government stimulus income recorded in
the second quarter of 2020 related to the general distribution
funds from the PRF and $7.7 million,
or $0.24 per diluted share, due to
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.
- Adjusted net income attributable to LHC Group's common
stockholders increased 29.8% to $51.3
million, or $1.63 adjusted
earnings per diluted share, compared with $39.5 million, or $1.26 per diluted share, in the same period in
2019. Adjusted results for the third quarter of 2020 exclude a
pre-tax amount of $2.5 million in
acquisition and de novo related expenses, $10.5 million in COVID-19 related costs and
expenses noted above, and the reversal of government stimulus
income noted above.
- Adjusted EBITDA increased 25.0% to $74.5
million compared with $59.6
million in the same period in 2019.
A reconciliation of all non-GAAP financial results in this
release appears on pages 12-13.
Operational and Strategic Highlights
- LHC Group's quality and patient satisfaction scores continue to
exceed the national average as the Company remains a leader among
industry peers.
- Organic growth in home health admissions increased 4.7% in the
third quarter of 2020 compared with the same period in 2019. Home
health organic admissions increased sequentially by 13.1% over the
second quarter of 2020.
- Organic growth in hospice admissions increased 12.8% in the
third quarter of 2020 compared with the same period in 2019.
Hospice organic admissions increased sequentially by 8.3% over the
second quarter of 2020.
- 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 and LHC Group expects incremental
annualized revenue from this joint venture of approximately
$3.5 million.
- On October 1, 2020, LHC Group
finalized a joint venture with University Health Care System to
enhance home health and hospice services in Georgia and South
Carolina. The joint venture includes ten total locations and
LHC Group expects incremental annualized revenue from this joint
venture of approximately $8.3
million.
- On October 1, 2020, LHC Group
finalized a joint venture with Northeast Georgia Health System to
share ownership of SunCrest Home Health in Gainesville, Georgia. LHC Group also closed on
the purchase of Santa Rita Hospice in Aurora, Colorado, where it will operate under
the At Home Hospice name in a shared space with LHC Group's home
health provider in Aurora.
- On November 1, 2020 LHC Group
finalized an expansion of its joint venture with CHRISTUS Health
with the addition of a hospice provider in San Marcos, Texas. LHC Group expects
incremental annualized revenue from this joint venture of
approximately $2.1 million.
Commenting on the results, Keith G.
Myers, LHC Group's Chairman and Chief Executive Officer,
said, "The new normal in healthcare is placing a greater emphasis
on care in the home and creating a demand for what we do best,
which is treating patients and their families in the safety and
comfort of their home and in the most cost-effective setting. The
regulatory environment is rapidly moving to better support in-home
care, and payors and joint venture partners are increasingly seeing
the real-time benefit of working closely with us as well. Focusing
on the most important things even in the midst of a public health
emergency – the safety of our employees and delivering the highest
quality and patient satisfaction to those we are privileged to
serve – is naturally driving our strong growth. We expect this
growth to continue through the balance of 2020 and position us for
the market consolidation we have been anticipating in 2021 and
beyond."
COVID-19 Update
The COVID-19 pandemic had an impact
on our operations and financial results for the third quarter of
2020 with a continued impact expected in the fourth quarter of
2020, although to a lesser extent than what we have experienced to
date. During the quarter, we incurred $10.5
million ($7.7 million net of
tax), or $0.25 per diluted share, in
additional COVID-19 costs and expenses related to PPE, supplies,
employee related costs and expenses, including, without limitation,
bonuses, increased wages, and wage supplements for front line
caregivers, and other categories of costs and expenses incurred in
response to the pandemic.
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 and other measures. We continue to have strong access to
capital with over $598.3 million
of available liquidity from cash and our revolving credit facility
net of the $317.9 million liability
associated with the Medicare Accelerated and Advance Payments.
Since April 2020, we received
funds totaling $317.9 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 12 months after receipt by the
provider, by withholding 25% of future Medicare fee-for service
payments for claims for 11 months and then withholding 50% of
future Medicare fee-for service payments for claims for an
additional six months. An interest rate of 4% will be assessed on
any outstanding balances after 29 months from the date of the
initial advance but we intend to repay the full amount before any
interest will accrue. Cash flows from operations for the nine
months ended 2020 included $317.9
million of accelerated Medicare payments, all of which
remains deferred on the balance sheet at September 30, 2020.
As of September 30, 2020, we have
received funds totaling $93.3 million
related to the Provider Relief Fund as provided for by the CARES
Act. During the three months ended June 30,
2020, 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 in our condensed consolidated statements of income related
to general distribution funds received from the Provider Relief
Fund. During the three months ended September 30, 2020, we reversed $44.4 million such that we recognized no funds
for the nine months ended September 30,
2020. The full amount received, $93.3
million, was recorded as a short-term liability in
government stimulus advance in our condensed consolidated balance
sheet. It is our intent to return the funds to the government.
COVID-19 Trends
Please refer to the
supplemental information that can be found under Financial 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 Guidance
The Company is increasing its
full year 2020 guidance, which it withdrew on May 7, 2020 and subsequently reinstated on
August 5, 2020. Full year 2020 net
service revenue is expected to be in a range of $2.06 billion to $2.07
billion, adjusted earnings per diluted share is expected to
be in a range of $4.90 to
$5.00, and Adjusted EBITDA, less
non-controlling interest, is expected to be in a range of
$232 million to $237 million.
|
Original FY 2020
Guidance
issued on Feb. 27, 2020
|
Reinstated FY 2020
Guidance
issued on August 5, 2020
|
Raised FY 2020
Guidance
|
Net service
revenue
|
$2.13 billion to
$2.18 billion
|
$2.0 billion to $2.05
billion
|
$2.06 billion to
$2.07 billion
|
Adjusted
EPS
|
$4.60 to
$4.80
|
$4.60 to
$4.80
|
$4.90 to
$5.00
|
Adjusted
EBITDA
|
$230 million to $240
million
|
$220 million to $230
million
|
$232 million to
$237 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 COVID-19 related costs
and expenses, 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, added, "The sequential month by month improvement we
have experienced in our organic growth in home health and hospice
since April has outpaced our expectations, and the increased
visibility in the strength in all of our service lines led us to
raise both the top and bottom end of our guidance ranges for the
full year. The implied sequential and year-over-year growth in the
fourth quarter positions us well for another strong year in 2021.
The headwinds caused by the pandemic and some of the initial
support smaller agencies received from government stimulus
temporarily forestalled the historic market consolidation we had
been expecting this year, but we have instead captured that growth
organically with increased referrals and market share gains.
Recently, we have seen these headwinds abate, resulting in
accelerated joint ventures and acquisitions and a very active and
robust M&A pipeline in both home health and hospice
opportunities."
Conference Call
LHC Group will host a conference call
on Thursday, November 5, 2020, at
10:00 a.m. Eastern time to discuss
its third quarter 2020 results. The toll-free number to call for
this interactive teleconference is (877) 870-4263 (international
callers: (412) 317-6011). A telephonic replay of the conference
call will be available through midnight on Thursday, November 12, 2020, by dialing (877)
344-7529 (international callers: (412) 317-0088) and entering
confirmation number 10148535.
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 Financial
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 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. As the preferred joint
venture partner for almost 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 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 SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Amounts in
thousands, except share data)
(Unaudited)
|
|
|
September 30,
2020
|
|
December 31,
2019
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash
|
$
|
253,764
|
|
|
$
|
31,672
|
|
Receivables:
|
|
|
|
Patient accounts
receivable
|
313,325
|
|
|
284,962
|
|
Other
receivables
|
19,858
|
|
|
10,832
|
|
Total
receivables
|
333,183
|
|
|
295,794
|
|
Prepaid income
taxes
|
19,687
|
|
|
9,652
|
|
Prepaid
expenses
|
22,791
|
|
|
21,304
|
|
Other current
assets
|
26,231
|
|
|
21,852
|
|
Total current
assets
|
655,656
|
|
|
380,274
|
|
Property, building
and equipment, net of accumulated depreciation of $78,623 and
$69,441, respectively
|
132,130
|
|
|
97,908
|
|
Goodwill
|
1,235,123
|
|
|
1,219,972
|
|
Intangible assets,
net of accumulated amortization of $17,372 and $16,431,
respectively
|
310,967
|
|
|
305,556
|
|
Assets held for
sale
|
1,900
|
|
|
2,500
|
|
Operating lease right
of use asset
|
99,066
|
|
|
95,452
|
|
Other
assets
|
21,494
|
|
|
38,633
|
|
Total
assets
|
$
|
2,456,336
|
|
|
$
|
2,140,295
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
other accrued liabilities
|
$
|
73,508
|
|
|
$
|
83,572
|
|
Salaries, wages, and
benefits payable
|
111,108
|
|
|
85,631
|
|
Self-insurance
reserves
|
31,856
|
|
|
31,188
|
|
Government stimulus
advance
|
93,257
|
|
|
—
|
|
Contract liabilities –
deferred revenue
|
317,938
|
|
|
—
|
|
Current operating
lease liabilities
|
32,018
|
|
|
28,701
|
|
Amounts due to
governmental entities
|
2,435
|
|
|
1,880
|
|
Total current
liabilities
|
662,120
|
|
|
230,972
|
|
Deferred income
taxes
|
75,536
|
|
|
60,498
|
|
Income taxes
payable
|
6,588
|
|
|
3,867
|
|
Revolving credit
facility
|
20,000
|
|
|
253,000
|
|
Other long term
liabilities
|
33,632
|
|
|
—
|
|
Operating lease
payable
|
69,977
|
|
|
69,556
|
|
Total liabilities
|
867,853
|
|
|
617,893
|
|
Noncontrolling
interest – redeemable
|
16,897
|
|
|
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; 36,351,416 and 36,129,280
shares issued, and 31,136,522 and 30,992,390 shares outstanding,
respectively
|
364
|
|
|
361
|
|
Treasury stock –
5,214,894 and 5,136,890 shares at cost, respectively
|
(68,845)
|
|
|
(60,060)
|
|
Additional paid-in
capital
|
958,212
|
|
|
949,321
|
|
Retained
earnings
|
604,917
|
|
|
523,701
|
|
Total LHC Group, Inc.
stockholders' equity
|
1,494,648
|
|
|
1,413,323
|
|
Noncontrolling
interest – non-redeemable
|
76,938
|
|
|
93,928
|
|
Total stockholders'
equity
|
1,571,586
|
|
|
1,507,251
|
|
Total liabilities and
stockholders' equity
|
$
|
2,456,336
|
|
|
$
|
2,140,295
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in
thousands, except per share data)
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net service
revenue
|
$
|
530,684
|
|
|
$
|
528,499
|
|
|
$
|
1,530,875
|
|
|
$
|
1,548,926
|
|
Cost of service
revenue (excluding depreciation and amortization)
|
305,246
|
|
|
334,768
|
|
|
933,160
|
|
|
981,620
|
|
Gross
margin
|
225,438
|
|
|
193,731
|
|
|
597,715
|
|
|
567,306
|
|
General and
administrative expenses
|
161,463
|
|
|
146,829
|
|
|
469,903
|
|
|
440,634
|
|
Impairment of
intangibles and other
|
22
|
|
|
197
|
|
|
622
|
|
|
7,534
|
|
Government stimulus
(income) expense (1)
|
44,435
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Operating
income
|
19,518
|
|
|
46,705
|
|
|
127,190
|
|
|
119,138
|
|
Interest
expense
|
(431)
|
|
|
(2,596)
|
|
|
(4,040)
|
|
|
(8,533)
|
|
Income before income
taxes and noncontrolling interest
|
19,087
|
|
|
44,109
|
|
|
123,150
|
|
|
110,605
|
|
Income tax
expense
|
4,595
|
|
|
9,508
|
|
|
23,181
|
|
|
22,665
|
|
Net income
|
14,492
|
|
|
34,601
|
|
|
99,969
|
|
|
87,940
|
|
Less net income (loss)
attributable to noncontrolling interests
|
(8)
|
|
|
4,534
|
|
|
18,753
|
|
|
14,017
|
|
Net income
attributable to LHC Group, Inc.'s common stockholders
|
$
|
14,500
|
|
|
$
|
30,067
|
|
|
$
|
81,216
|
|
|
$
|
73,923
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.47
|
|
|
$
|
0.97
|
|
|
$
|
2.61
|
|
|
$
|
2.39
|
|
Diluted
|
$
|
0.46
|
|
|
$
|
0.96
|
|
|
$
|
2.59
|
|
|
$
|
2.37
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
31,121
|
|
|
30,971
|
|
|
31,080
|
|
|
30,919
|
|
Diluted
|
31,411
|
|
|
31,247
|
|
|
31,334
|
|
|
31,203
|
|
|
|
|
(1) Refer to
footnote 5 on page 13.
|
LHC GROUP, INC.
AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in
thousands) (Unaudited)
|
|
|
Nine Months
Ended
September 30,
|
|
2020
|
|
2019
|
Operating
activities:
|
|
|
|
Net income
|
$
|
99,969
|
|
|
$
|
87,940
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization expense
|
15,601
|
|
|
12,812
|
|
Amortization of
operating lease right of use asset
|
25,799
|
|
|
22,952
|
|
Stock-based
compensation expense
|
11,133
|
|
|
6,382
|
|
Deferred income
taxes
|
15,038
|
|
|
8,102
|
|
Loss on disposal of
assets
|
291
|
|
|
337
|
|
Impairment of intangibles and other
|
622
|
|
|
7,534
|
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
Receivables
|
(36,194)
|
|
|
(42,928)
|
|
Prepaid
expenses
|
(1,487)
|
|
|
4,828
|
|
Other
assets
|
(3,183)
|
|
|
(2,810)
|
|
Prepaid income
taxes
|
(10,035)
|
|
|
8,258
|
|
Accounts payable and
accrued expenses
|
(17,085)
|
|
|
(4,241)
|
|
Salaries, wages, and
benefits payable
|
25,913
|
|
|
18,001
|
|
Contract liabilities -
deferred revenue
|
317,938
|
|
|
—
|
|
Other long term
liabilities
|
33,632
|
|
|
—
|
|
Operating lease
liabilities
|
(25,485)
|
|
|
(18,428)
|
|
Income taxes
payable
|
2,721
|
|
|
(715)
|
|
Net amounts due
to/from governmental entities
|
555
|
|
|
(3,234)
|
|
Net cash provided
by operating activities
|
455,743
|
|
|
104,790
|
|
Investing
activities:
|
|
|
|
Purchases of property,
building and equipment
|
(51,241)
|
|
|
(15,401)
|
|
Proceeds from sale of
property, building and equipment
|
7,142
|
|
|
—
|
|
Cash received (paid)
for acquisitions
|
2,326
|
|
|
(54,120)
|
|
Net cash used in
investing activities
|
(41,773)
|
|
|
(69,521)
|
|
Financing
activities:
|
|
|
|
Proceeds from line of
credit
|
276,229
|
|
|
84,000
|
|
Payments on line of
credit
|
(509,229)
|
|
|
(87,000)
|
|
Government stimulus
advance
|
93,257
|
|
|
—
|
|
Proceeds from employee
stock purchase plan
|
1,679
|
|
|
1,540
|
|
Payments on
debt
|
—
|
|
|
(7,650)
|
|
Noncontrolling
interest distributions
|
(22,505)
|
|
|
(18,944)
|
|
Withholding taxes paid
on stock-based compensation
|
(9,854)
|
|
|
(9,422)
|
|
Purchase of additional
controlling interest
|
(23,575)
|
|
|
(18,763)
|
|
Exercise of vested
awards and stock options
|
—
|
|
|
153
|
|
Sale of noncontrolling
interest
|
2,120
|
|
|
756
|
|
Net cash used in
financing activities
|
(191,878)
|
|
|
(55,330)
|
|
Change in
cash
|
222,092
|
|
|
(20,061)
|
|
Cash at beginning
of period
|
31,672
|
|
|
49,363
|
|
Cash at end of
period
|
$
|
253,764
|
|
|
$
|
29,302
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
Interest
paid
|
$
|
4,556
|
|
|
$
|
8,549
|
|
Income taxes
paid
|
$
|
15,583
|
|
|
$
|
8,015
|
|
Non-Cash Operating
Activity:
|
|
|
|
Operating right of use
assets in exchange for lease obligations
|
$
|
25,633
|
|
|
$
|
115,161
|
|
Non-Cash Investing
Activity:
|
|
|
|
Accrued capital
expenditures
|
$
|
5,851
|
|
|
$
|
1,514
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
SEGMENT
INFORMATION
(Amounts in
thousands)
(Unaudited)
|
|
|
Three Months Ended
September 30, 2020
|
|
Home health
services
|
|
Hospice
services
|
|
Home and
community-based services
|
|
Facility-
based
services
|
|
HCI
|
|
Total
|
Net service
revenue
|
$
|
373,450
|
|
|
$
|
59,801
|
|
|
$
|
48,387
|
|
|
$
|
33,344
|
|
|
$
|
15,702
|
|
|
$
|
530,684
|
|
Cost of service
revenue (excluding depreciation and
amortization)
|
205,523
|
|
|
37,180
|
|
|
36,664
|
|
|
22,213
|
|
|
3,666
|
|
|
305,246
|
|
General and
administrative expenses
|
118,792
|
|
|
16,668
|
|
|
10,937
|
|
|
11,439
|
|
|
3,627
|
|
|
161,463
|
|
Impairment of
intangibles and other
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
Government stimulus
(income) expense (1)
|
35,019
|
|
|
4,731
|
|
|
2,865
|
|
|
1,656
|
|
|
164
|
|
|
44,435
|
|
Operating income
(loss)
|
14,094
|
|
|
1,222
|
|
|
(2,079)
|
|
|
(1,964)
|
|
|
8,245
|
|
|
19,518
|
|
Interest
expense
|
(310)
|
|
|
(51)
|
|
|
(37)
|
|
|
(22)
|
|
|
(11)
|
|
|
(431)
|
|
Income (loss) before
income taxes and noncontrolling interest
|
13,784
|
|
|
1,171
|
|
|
(2,116)
|
|
|
(1,986)
|
|
|
8,234
|
|
|
19,087
|
|
Income tax expense
(benefit)
|
3,403
|
|
|
247
|
|
|
(440)
|
|
|
(435)
|
|
|
1,820
|
|
|
4,595
|
|
Net income
(loss)
|
10,381
|
|
|
924
|
|
|
(1,676)
|
|
|
(1,551)
|
|
|
6,414
|
|
|
14,492
|
|
Less net income
(loss) attributable to noncontrolling interests
|
(157)
|
|
|
321
|
|
|
(153)
|
|
|
(12)
|
|
|
(7)
|
|
|
(8)
|
|
Net income (loss)
attributable to LHC Group, Inc.'s common stockholder
|
$
|
10,538
|
|
|
$
|
603
|
|
|
$
|
(1,523)
|
|
|
$
|
(1,539)
|
|
|
$
|
6,421
|
|
|
$
|
14,500
|
|
Total
assets
|
$
|
1,721,278
|
|
|
$
|
277,358
|
|
|
$
|
263,414
|
|
|
$
|
108,118
|
|
|
$
|
86,168
|
|
|
$
|
2,456,336
|
|
(1) Refer to
footnote 5 on page 13.
|
LHC GROUP, INC.
AND SUBSIDIARIES
SEGMENT
INFORMATION
(Amounts in
thousands)
(Unaudited)
|
|
|
Three Months Ended
September 30, 2019
|
|
Home health
services
|
|
Hospice
services
|
|
Home and
community-based services
|
|
Facility-
based
services
|
|
HCI
|
|
Total
|
Net service
revenue
|
$
|
375,599
|
|
|
$
|
62,028
|
|
|
$
|
53,411
|
|
|
$
|
28,715
|
|
|
$
|
8,746
|
|
|
$
|
528,499
|
|
Cost of service
revenue (excluding depreciation
and amortization)
|
237,414
|
|
|
35,819
|
|
|
39,694
|
|
|
18,508
|
|
|
3,333
|
|
|
334,768
|
|
General and
administrative expenses
|
108,318
|
|
|
15,218
|
|
|
10,809
|
|
|
9,498
|
|
|
2,986
|
|
|
146,829
|
|
Impairment of
intangibles and other
|
197
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
197
|
|
Operating
income
|
29,670
|
|
|
10,991
|
|
|
2,908
|
|
|
709
|
|
|
2,427
|
|
|
46,705
|
|
Interest
expense
|
(1,758)
|
|
|
(310)
|
|
|
(272)
|
|
|
(174)
|
|
|
(82)
|
|
|
(2,596)
|
|
Income before income
taxes and noncontrolling interest
|
27,912
|
|
|
10,681
|
|
|
2,636
|
|
|
535
|
|
|
2,345
|
|
|
44,109
|
|
Income tax
expense
|
5,900
|
|
|
1,689
|
|
|
1,299
|
|
|
144
|
|
|
476
|
|
|
9,508
|
|
Net income
|
22,012
|
|
|
8,992
|
|
|
1,337
|
|
|
391
|
|
|
1,869
|
|
|
34,601
|
|
Less net income
(loss) attributable to noncontrolling interests
|
3,577
|
|
|
1,213
|
|
|
(180)
|
|
|
(67)
|
|
|
(9)
|
|
|
4,534
|
|
Net income
attributable to LHC Group, Inc.'s common stockholders
|
$
|
18,435
|
|
|
$
|
7,779
|
|
|
$
|
1,517
|
|
|
$
|
458
|
|
|
$
|
1,878
|
|
|
$
|
30,067
|
|
Total
assets
|
$
|
1,458,991
|
|
|
$
|
235,865
|
|
|
$
|
243,779
|
|
|
$
|
88,905
|
|
|
$
|
70,324
|
|
|
$
|
2,097,864
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
SEGMENT
INFORMATION
(Amounts in
thousands)
(Unaudited)
|
|
|
Nine Months Ended
September 30, 2020
|
|
Home health
services
|
|
Hospice
services
|
|
Home and
community-based services
|
|
Facility-
based
services
|
|
HCI
|
|
Total
|
Net service
revenue
|
$
|
1,081,143
|
|
|
$
|
181,387
|
|
|
$
|
144,526
|
|
|
$
|
96,664
|
|
|
$
|
27,155
|
|
|
$
|
1,530,875
|
|
Cost of service
revenue (excluding depreciation and
amortization)
|
631,109
|
|
|
112,485
|
|
|
113,864
|
|
|
64,340
|
|
|
11,362
|
|
|
933,160
|
|
General and
administrative expenses
|
345,024
|
|
|
49,560
|
|
|
33,520
|
|
|
31,984
|
|
|
9,815
|
|
|
469,903
|
|
Impairment of
intangibles and other
|
22
|
|
|
600
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
622
|
|
Government stimulus
income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Operating income
(loss)
|
104,988
|
|
|
18,742
|
|
|
(2,858)
|
|
|
340
|
|
|
5,978
|
|
|
127,190
|
|
Interest
expense
|
(2,804)
|
|
|
(451)
|
|
|
(382)
|
|
|
(288)
|
|
|
(115)
|
|
|
(4,040)
|
|
Income (loss) before
income taxes and noncontrolling interest
|
102,184
|
|
|
18,291
|
|
|
(3,240)
|
|
|
52
|
|
|
5,863
|
|
|
123,150
|
|
Income tax expense
(benefit)
|
19,499
|
|
|
3,294
|
|
|
(658)
|
|
|
(261)
|
|
|
1,307
|
|
|
23,181
|
|
Net income
(loss)
|
82,685
|
|
|
14,997
|
|
|
(2,582)
|
|
|
313
|
|
|
4,556
|
|
|
99,969
|
|
Less net income
(loss) attributable to noncontrolling interests
|
14,371
|
|
|
3,452
|
|
|
(275)
|
|
|
1,228
|
|
|
(23)
|
|
|
18,753
|
|
Net income (loss)
attributable to LHC Group, Inc.'s common stockholder
|
$
|
68,314
|
|
|
$
|
11,545
|
|
|
$
|
(2,307)
|
|
|
$
|
(915)
|
|
|
$
|
4,579
|
|
|
$
|
81,216
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
SEGMENT
INFORMATION
(Amounts in
thousands)
(Unaudited)
|
|
|
Nine Months Ended
September 30, 2019
|
|
Home health
services
|
|
Hospice
services
|
|
Home and
community-based services
|
|
Facility-
based
services
|
|
HCI
|
|
Total
|
Net service
revenue
|
$
|
1,113,887
|
|
|
$
|
168,821
|
|
|
$
|
157,610
|
|
|
$
|
84,391
|
|
|
$
|
24,217
|
|
|
$
|
1,548,926
|
|
Cost of service
revenue (excluding depreciation
and amortization)
|
694,082
|
|
|
103,853
|
|
|
119,054
|
|
|
53,812
|
|
|
10,819
|
|
|
981,620
|
|
General and
administrative expenses
|
322,115
|
|
|
45,167
|
|
|
33,004
|
|
|
28,010
|
|
|
12,338
|
|
|
440,634
|
|
Impairment of
intangibles and other
|
7,263
|
|
|
271
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,534
|
|
Operating
income
|
90,427
|
|
|
19,530
|
|
|
5,552
|
|
|
2,569
|
|
|
1,060
|
|
|
119,138
|
|
Interest
expense
|
(5,919)
|
|
|
(976)
|
|
|
(857)
|
|
|
(524)
|
|
|
(257)
|
|
|
(8,533)
|
|
Income before income
taxes and noncontrolling interest
|
84,508
|
|
|
18,554
|
|
|
4,695
|
|
|
2,045
|
|
|
803
|
|
|
110,605
|
|
Income tax
expense
|
17,178
|
|
|
3,716
|
|
|
1,279
|
|
|
297
|
|
|
195
|
|
|
22,665
|
|
Net income
|
67,330
|
|
|
14,838
|
|
|
3,416
|
|
|
1,748
|
|
|
608
|
|
|
87,940
|
|
Less net income
(loss) attributable to noncontrolling interests
|
11,305
|
|
|
2,712
|
|
|
(757)
|
|
|
779
|
|
|
(22)
|
|
|
14,017
|
|
Net income
attributable to LHC Group, Inc.'s common stockholders
|
$
|
56,025
|
|
|
$
|
12,126
|
|
|
$
|
4,173
|
|
|
$
|
969
|
|
|
$
|
630
|
|
|
$
|
73,923
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
SELECT
CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA
(Unaudited)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
Key
Data:
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
Home Health
Services:
|
|
|
|
|
|
|
|
|
Locations
|
|
549
|
|
|
555
|
|
|
549
|
|
|
555
|
|
Acquired
|
|
2
|
|
|
19
|
|
|
8
|
|
|
32
|
|
De
novo
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Divested/consolidated
|
|
(6)
|
|
|
(3)
|
|
|
(14)
|
|
|
(16)
|
|
Total new
admissions
|
|
104,304
|
|
|
97,647
|
|
|
305,968
|
|
|
286,519
|
|
Medicare new
admissions
|
|
55,907
|
|
|
57,496
|
|
|
166,332
|
|
|
172,343
|
|
Average daily
census
|
|
82,254
|
|
|
76,905
|
|
|
78,920
|
|
|
76,573
|
|
Average Medicare
daily census
|
|
47,120
|
|
|
49,016
|
|
|
46,008
|
|
|
49,418
|
|
Medicare completed
and billed episodes
|
|
88,970
|
|
|
91,956
|
|
|
260,415
|
|
|
276,751
|
|
Average Medicare case
mix for completed and billed Medicare episodes
|
|
1.01
|
|
|
1.09
|
|
|
1.02
|
|
|
1.10
|
|
Average reimbursement
per completed and billed Medicare episodes
|
|
$
|
2,824
|
|
|
$
|
2,863
|
|
|
$
|
2,798
|
|
|
$
|
2,852
|
|
Total
visits
|
|
2,081,418
|
|
|
2,619,073
|
|
|
6,181,133
|
|
|
7,702,229
|
|
Total Medicare
visits
|
|
1,149,577
|
|
|
1,695,148
|
|
|
3,474,314
|
|
|
5,048,298
|
|
Average visits per
completed and billed Medicare episodes
|
|
12.9
|
|
|
18.4
|
|
|
13.3
|
|
|
18.2
|
|
Organic growth:
(1)
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
(4.1)
|
%
|
|
7.9
|
%
|
|
(6.5)
|
%
|
|
7.2
|
%
|
Net Medicare
revenue
|
|
(8.9)
|
%
|
|
4.1
|
%
|
|
(11.3)
|
%
|
|
3.5
|
%
|
Total new
admissions
|
|
4.7
|
%
|
|
11.1
|
%
|
|
2.4
|
%
|
|
8.6
|
%
|
Medicare new
admissions
|
|
(4.4)
|
%
|
|
5.4
|
%
|
|
(7.0)
|
%
|
|
2.5
|
%
|
Average daily
census
|
|
4.9
|
%
|
|
7.2
|
%
|
|
0.4
|
%
|
|
5.1
|
%
|
Average Medicare
daily census
|
|
(5.7)
|
%
|
|
2.6
|
%
|
|
(9.2)
|
%
|
|
0.0
|
%
|
Medicare completed
and billed episodes
|
|
(3.5)
|
%
|
|
3.6
|
%
|
|
(8.1)
|
%
|
|
1.0
|
%
|
|
|
|
|
|
|
|
|
|
Hospice
Services:
|
|
|
|
|
|
|
|
|
Locations
|
|
111
|
|
|
109
|
|
|
111
|
|
|
109
|
|
Acquired
|
|
—
|
|
|
5
|
|
|
4
|
|
|
10
|
|
De
novo
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Divested/consolidated
|
|
(1)
|
|
|
—
|
|
|
(2)
|
|
|
(5)
|
|
Admissions
|
|
5,077
|
|
|
4,522
|
|
|
15,006
|
|
|
13,746
|
|
Average daily
census
|
|
4,393
|
|
|
4,187
|
|
|
4,338
|
|
|
4,002
|
|
Patient
days
|
|
404,214
|
|
|
385,164
|
|
|
1,192,866
|
|
|
1,093,039
|
|
Average revenue per
patient day
|
|
$
|
155.14
|
|
|
$
|
152.47
|
|
|
$
|
154.39
|
|
|
$
|
153.74
|
|
Organic growth:
(1)
|
|
|
|
|
|
|
|
|
Total new
admissions
|
|
12.8
|
%
|
|
2.1
|
%
|
|
4.8
|
%
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
Home and
Community-Based Services:
|
|
|
|
|
|
|
|
|
Locations
(2)
|
|
122
|
|
|
105
|
|
|
122
|
|
|
105
|
|
Acquired
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
De
novo
|
|
13
|
|
|
—
|
|
|
19
|
|
|
—
|
|
Divested/consolidated
|
|
(2)
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
Average daily
census
|
|
14,455
|
|
|
13,676
|
|
|
14,391
|
|
|
14,491
|
|
Billable
hours
|
|
1,942,706
|
|
|
2,276,984
|
|
|
5,865,309
|
|
|
5,002,064
|
|
Revenue per billable
hour
|
|
$
|
26.31
|
|
|
$
|
23.97
|
|
|
$
|
25.87
|
|
|
$
|
24.30
|
|
|
|
|
|
|
|
|
|
|
Facility-Based
Services:
|
|
|
|
|
|
|
|
|
Long-term Acute
Care
|
|
|
|
|
|
|
|
|
Locations
|
|
12
|
|
|
13
|
|
|
12
|
|
|
13
|
|
Acquired
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Divested/consolidated
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
Patient
days
|
|
24,275
|
|
|
18,918
|
|
|
68,094
|
|
|
58,524
|
|
Average revenue per
patient day
|
|
$
|
1,346
|
|
|
$
|
1,377
|
|
|
$
|
1,362
|
|
|
$
|
1,310
|
|
Average Daily
Census
|
|
264
|
|
|
206
|
|
|
249
|
|
|
214
|
|
|
|
(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
September 30,
|
Nine Months
Ended
September 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
attributable to LHC Group, Inc.'s common
stockholders
|
|
$
|
14,500
|
|
|
$
|
30,067
|
|
|
$
|
81,216
|
|
|
$
|
73,923
|
|
Add (net of
tax):
|
|
|
|
|
|
|
|
|
Acquisition and de novo expenses (1)
|
|
1,829
|
|
|
8,482
|
|
|
3,345
|
|
|
20,463
|
|
Closures/relocations/consolidations (2)
|
|
—
|
|
|
941
|
|
|
866
|
|
|
4,722
|
|
COVID-19
impact:
|
|
|
|
|
|
|
|
|
|
|
|
|
PPE, supplies and
other expenses (3)
|
|
7,689
|
|
|
—
|
|
|
29,967
|
|
|
—
|
|
CARES Act tax benefit
(4)
|
|
—
|
|
|
—
|
|
|
(2,210)
|
|
|
—
|
|
Provider
Relief Fund (PRF) (5)
|
|
32,882
|
|
|
—
|
|
|
—
|
|
|
—
|
|
NCI
associated with PRF (6)
|
|
(5,643)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Provider
moratorium impairment (7)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,332
|
|
Adjusted net income
attributable to LHC Group, Inc.'s
common stockholders
|
|
$
|
51,257
|
|
|
$
|
39,490
|
|
|
$
|
113,184
|
|
|
$
|
103,440
|
|
RECONCILIATION OF
ADJUSTED NET INCOME
ATTRIBUTABLE TO
LHC GROUP, INC. PER DILUTED SHARE
(Amounts in
thousands)
(Unaudited)
|
|
|
|
Three Months
Ended
September 30,
|
Nine Months
Ended
September 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
attributable to LHC Group, Inc.'s common stockholders
|
|
$
|
0.46
|
|
|
$
|
0.96
|
|
|
$
|
2.59
|
|
|
$
|
2.37
|
|
Add (net of
tax):
|
|
|
|
|
|
|
|
|
Acquisition and de novo expenses (1)
|
|
0.05
|
|
|
0.27
|
|
|
0.11
|
|
|
0.66
|
|
Closures/relocations/consolidations (2)
|
|
—
|
|
|
0.03
|
|
|
0.03
|
|
|
0.15
|
|
COVID-19
impact:
|
|
|
|
|
|
|
|
|
|
|
|
|
PPE, supplies and
other expenses (3)
|
|
0.25
|
|
|
—
|
|
|
0.95
|
|
|
—
|
|
CARES Act tax benefit
(4)
|
|
—
|
|
|
—
|
|
|
(0.07)
|
|
|
—
|
|
Provider
Relief Fund (PRF) (5)
|
|
1.05
|
|
|
—
|
|
|
—
|
|
|
—
|
|
NCI
associated with PRF (6)
|
|
(0.18)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Provider
moratorium impairment (7)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.14
|
|
Adjusted net income
attributable to LHC Group, Inc.'s
common stockholders
|
|
$
|
1.63
|
|
|
$
|
1.26
|
|
|
$
|
3.61
|
|
|
$
|
3.32
|
|
RECONCILIATION OF
EBITDA AND ADJUSTED EBITDA
(Amounts in
thousands)
(Unaudited)
|
|
|
|
Three Months
Ended
September 30,
|
Nine Months
Ended
September 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
attributable to LHC Group, Inc.'s common stockholders
|
|
$
|
14,500
|
|
|
$
|
30,067
|
|
|
$
|
81,216
|
|
|
$
|
73,923
|
|
Add:
|
|
|
|
|
|
|
|
|
Income
tax expense
|
|
4,595
|
|
|
9,508
|
|
|
23,181
|
|
|
22,665
|
|
Interest
expense, net
|
|
431
|
|
|
2,596
|
|
|
4,040
|
|
|
8,533
|
|
Depreciation and amortization
|
|
5,217
|
|
|
4,412
|
|
|
15,601
|
|
|
12,812
|
|
Adjustment items (1)
|
|
49,775
|
|
|
13,033
|
|
|
46,339
|
|
|
40,841
|
|
Adjusted
EBITDA
|
|
$
|
74,518
|
|
|
$
|
59,616
|
|
|
$
|
170,377
|
|
|
$
|
158,774
|
|
|
|
|
|
|
|
|
|
|
1. Adjustment
items (pre-tax):
|
|
|
|
|
|
|
|
|
Acquisition and de novo expenses (1)
|
|
2,492
|
|
|
11,731
|
|
|
4,556
|
|
|
28,305
|
|
Closures/relocation/consolidations (2)
|
|
—
|
|
|
1,302
|
|
|
1,174
|
|
|
6,536
|
|
COVID-19
PPE, supplies and other expenses (3)
|
|
10,474
|
|
|
—
|
|
|
40,609
|
|
|
—
|
|
Provider
Relief Fund (PRF) (5)
|
|
44,435
|
|
|
—
|
|
|
—
|
|
|
—
|
|
NCI
associated with PRF (6)
|
|
(7,626)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Provider
moratorium impairment (7)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,000
|
|
Total
adjustments
|
|
$
|
49,775
|
|
|
$
|
13,033
|
|
|
$
|
46,339
|
|
|
$
|
40,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
Expenses and other
costs associated with recently announced or completed acquisitions
and de novos. ($2.5 million pre-tax in the three months
ended September 30, 2020 and $4.6 million pre-tax in the nine
months ended September 30, 2020).
|
2.
|
Loss on the sale of
an asset and other expenses associated with a closure or
consolidation (none in the three months ended September 30, 2020
and $1.2 million pre-tax in the nine months ended September 30,
2020).
|
3.
|
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. ($10.5 million pre-tax in
the three months ended September 30, 2020 and $40.6 million pre-tax
in the nine months ended September 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.
|
Based on improved
current and projected future results, the Company intends to return
the entire $93.3 million in funds it has received from the Provider
Relief Fund ("PRF") under the CARES Act and for the consolidated
results for the third quarter of 2020 has reversed the $44.4
million in government stimulus income recognized during the
second of 2020 related to general distribution funds received from
the PRF ($44.4 million pre-tax).
|
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) was reversed in the three
months ended September 30, 2020 as noted above.
|
7.
|
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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SOURCE LHC Group, Inc.