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    LHC Group announces third quarter 2021 financial results

    11/3/21 4:15:00 PM ET
    $LHCG
    Medical/Nursing Services
    Health Care
    Get the next $LHCG alert in real time by email

    LAFAYETTE, La., Nov. 3, 2021 /PRNewswire/ -- LHC Group, Inc. (NASDAQ:LHCG) announced its financial results for the quarter ended September 30, 2021.

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

    Third Quarter 2021 Financial Results

    • Net service revenue increased 6.6% to $565.5 million.
    • Net income attributable to LHC Group's common stockholders was $27.7 million, or $0.88 per diluted share.
    • Adjusted net income attributable to LHC Group's common stockholders was $45.7 million, or $1.45 adjusted earnings per diluted share.
    • Adjusted EBITDA, less non-controlling interest, was $68.8 million.

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

    Operational and Strategic Highlights

    • Year-to-date, LHC Group has closed on the acquisition of approximately $300 million in annualized revenue. This M&A activity, which brought the Company's national footprint to 917 locations in 37 states and the District of Columbia, compares favorably to $37.8 million acquired in 2020 and $114.3 million acquired in 2019.
    • The Company currently expects the $300 million of acquired annualized revenue in 2021 to generate an incremental EBITDA contribution in 2022 in a range of $20 million to $25 million.
    • LHC Group increased its 2021 revenue guidance previously issued on October 18, 2021 to reflect the completion of the acquisition of home health, hospice, and therapy assets from the HCA Healthcare and Brookdale Healthcare Services Venture on November 1, 2021. The Company now expects net service revenue of $2.215 billion to $2.220 billion (compared with $2.200 billion to $2.205 billion previously). The Company affirmed its expectations for adjusted EBITDA, less non-controlling interest, of $265 million to $270 million, and adjusted earnings per diluted share of $5.75 to $5.85.
    • Organic growth in home health admissions increased 3.6% in the third quarter of 2021 as compared to the third quarter of 2020.
    • Non-Medicare episodic organic growth in home health admissions increased by 11.6% in the third quarter of 2021 compared with the same period in 2020.
    • Organic growth in hospice admissions increased 0.1% in the third quarter of 2021 as compared to the third quarter of 2020 and increased sequentially by 3.3% in the third quarter of 2021 over the second quarter of 2021.
    • LHC Group has experienced improving operating trends to date in the fourth quarter of 2021. All locations temporarily closed due to Hurricane Ida have reopened; the percentage of clinicians on quarantine has declined to 1.8% as of November 1, 2021; new COVID cases have quickly declined after spiking in the third quarter of 2021; and average daily Home Health census for October 2021 increased 1,164 to 85,422, up 1.4% compared with the third quarter of 2021.
    • LHC Group continues to be an industry leader in quality and patient satisfaction. Recent data provided in September 2021 by Strategic Healthcare Programs (SHP) shows that the company's overall home health quality star rating improved to 4.43 as compared to 4.39 in June 2021 and 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.

    Commenting on the results, Keith G. Myers, LHC Group's Chairman and Chief Executive Officer, said, "Despite the temporary headwinds we encountered in the third quarter, our improving operating trends to date in the fourth quarter, combined with a record level of M&A activity, have positioned us to deliver strong year-over-year growth for 2021 and beyond. There is a fundamental shift underway that is rapidly transforming and prioritizing the delivery of high-quality care in patients' homes or places of residence. Consumer preference, along with the rapidly increasing recognition that high quality services provided in a patient's home or place of residence can deliver equal or better outcomes at significantly lower costs than alternative inpatient post-acute settings, will continue to provide significant growth opportunities for our industry. We are confident that LHC Group, with our industry leading quality outcomes and patient satisfaction along with our strong financial position, will benefit from continued M&A activity and substantially increasing organic growth in patient admissions across our expanding footprint for many years to come."     

    Revenues in the third quarter of 2021 totaled $565.5 million, compared to $530.7 million in the third quarter of 2020. Net income attributable to LHC Group, Inc. totaled $27.7 million, or $0.88 per diluted share, compared to $14.5 million, or $0.46 per diluted share, in the third quarter of 2020.

    For the third quarter of 2021, adjusted net income attributable to LHC Group's common stockholders totaled $45.7 million, or $1.45 per diluted share, compared to $51.3 million, or $1.63 per diluted share, in the third quarter of 2020. For the third quarter of 2021, Adjusted EBITDA totaled $68.8 million, compared to $74.5 million in the third 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 increased its 2021 revenue guidance previously issued on October 18, 2021 to reflect the completion of the acquisition of home health, hospice, and therapy assets from the HCA Healthcare and Brookdale Healthcare Services Venture on November 1, 2021. The Company now expects net service revenue of $2.215 billion to $2.220 billion (compared with $2.200 billion to $2.205 billion previously). The Company affirmed its expectations for adjusted EBITDA, less non-controlling interest, of $265 million to $270 million, and adjusted earnings per diluted share of $5.75 to $5.85. At the midpoint, the full year 2021 guidance implies a 7.5% increase in net service revenue, a 12.1% increase in adjusted EBITDA, and a 15.8% increase in adjusted EPS compared with 2020.

    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 of approximately $45 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, November 4, 2021, at 9:00 a.m. Eastern time to discuss its third quarter 2021 results. The toll-free number to call for this interactive teleconference is (877) 407-9208 (international callers: (201) 493-6784). A telephonic replay of the conference call will be available through midnight on Thursday, November 11, 2021, by dialing (844) 512-2921 (international callers: (412) 317-6671) and entering confirmation number 13723484.

    The Company has posted supplemental financial information on the third 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 37 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 more than 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)





    September 30,

    2021



    December 31,

    2020

    ASSETS







    Current assets:







    Cash

    $

    29,516





    $

    286,569



    Receivables:







    Patient accounts receivable

    333,088





    301,209



    Other receivables

    21,543





    11,522



    Total receivables

    354,631





    312,731



    Prepaid taxes

    12,509





    —



    Prepaid income taxes

    11,575





    —



    Prepaid expenses

    22,048





    22,058



    Other current assets

    21,320





    25,664



    Total current assets

    451,599





    647,022



    Property, building and equipment, net of accumulated depreciation of $94,344 and $82,721, respectively

    150,909





    138,366



    Goodwill

    1,603,360





    1,259,147



    Intangible assets, net of accumulated amortization of $18,701 and $17,659, respectively

    350,528





    315,355



    Assets held for sale

    —





    1,900



    Operating lease right of use asset

    111,550





    100,046



    Other assets

    44,740





    21,518



    Total assets

    $

    2,712,686





    $

    2,483,354



    LIABILITIES AND STOCKHOLDERS' EQUITY







    Current liabilities:







    Accounts payable and other accrued liabilities

    $

    83,159





    $

    64,864



    Salaries, wages, and benefits payable

    82,994





    88,666



    Self-insurance reserves

    35,094





    35,103



    Income tax payable

    —





    21,464



    Government stimulus advance

    —





    93,257



    Contract liabilities - deferred revenue

    176,333





    317,962



    Current operating lease liabilities

    35,964





    32,676



    Amounts due to governmental entities

    785





    1,516



    Current liabilities - deferred employer payroll tax

    26,774





    25,928



    Total current liabilities

    441,103





    681,436



    Deferred income taxes

    70,593





    47,237



    Income taxes payable

    6,848





    6,203



    Revolving credit facility

    355,000





    20,000



    Other long term liabilities

    26,774





    25,928



    Long-term operating lease liabilities

    78,445





    70,275



                                       Total liabilities

    978,763





    851,079



    Noncontrolling interest — redeemable

    17,730





    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; 36,540,219 and 36,355,497 shares issued, and 31,263,385 and 31,139,840 shares outstanding, respectively

    365





    364



    Treasury stock —  5,276,834 and  5,215,657 shares at cost, respectively

    (80,605)





    (69,011)



    Additional paid-in capital

    974,680





    962,120



    Retained earnings

    735,333





    635,297



    Total LHC Group, Inc. stockholders' equity

    1,629,773





    1,528,770



    Noncontrolling interest — non-redeemable

    86,420





    84,584



    Total stockholders' equity

    1,716,193





    1,613,354



    Total liabilities and stockholders' equity

    $

    2,712,686





    $

    2,483,354



     

    LHC GROUP, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME

    (Amounts in thousands, except per share data)

    (Unaudited)





    Three Months Ended

    September 30, 2021



    Nine Months Ended

    September 30,



    2021



    2020



    2021



    2020

    Net service revenue

    $

    565,451





    $

    530,684





    $

    1,636,193





    $

    1,530,875



    Cost of service revenue (excluding depreciation and amortization)

    343,862





    305,246





    972,006





    933,160



    Gross margin

    221,589





    225,438





    664,187





    597,715



    General and administrative expenses

    176,444





    161,463





    506,754





    469,903



    Impairment of intangibles and other

    —





    22





    937





    622



    Government stimulus (income) expense

    —





    44,435





    —





    —



    Operating income

    45,145





    19,518





    156,496





    127,190



    Interest expense

    (1,135)





    (431)





    (1,541)





    (4,040)



    Income before income taxes and noncontrolling interest

    44,010





    19,087





    154,955





    123,150



    Income tax expense

    10,150





    4,595





    32,909





    23,181



    Net income

    33,860





    14,492





    122,046





    99,969



    Less net income (loss) attributable to noncontrolling interests

    6,126





    (8)





    22,010





    18,753



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

    $

    27,734





    $

    14,500





    $

    100,036





    $

    81,216



















    Earnings per share:















    Basic

    $

    0.89





    $

    0.47





    $

    3.21





    $

    2.61



    Diluted

    $

    0.88





    $

    0.46





    $

    3.18





    $

    2.59



    Weighted average shares outstanding:















    Basic

    31,238





    31,121





    31,205





    31,080



    Diluted

    31,434





    31,411





    31,422





    31,334



     

    LHC GROUP, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (Amounts in thousands) (Unaudited)





    Nine Months Ended

    September 30,



    2021



    2020

    Operating activities:







    Net income

    $

    122,046





    $

    99,969



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







    Depreciation and amortization expense

    14,899





    15,601



    Amortization of operating lease right of use asset

    27,526





    25,799



    Stock-based compensation expense

    11,717





    11,133



    Deferred income taxes

    23,356





    15,038



    (Gain) loss on disposal of assets

    (1,190)





    291



       Impairment of intangibles and other

    937





    622



    Changes in operating assets and liabilities, net of acquisitions:







    Receivables

    (27,038)





    (36,194)



    Prepaid expenses

    397





    (1,487)



    Other assets

    (6,368)





    (3,183)



    Prepaid income taxes

    (11,575)





    (10,035)



    Prepaid taxes

    (12,509)





    —



    Accounts payable and accrued expenses

    6,626





    (17,085)



    Salaries, wages, and benefits payable

    (9,687)





    25,913



    Contract liabilities - deferred revenue

    (141,629)





    317,938



    Other long term liabilities

    —





    33,632



    Operating lease liabilities

    (27,472)





    (25,485)



    Income taxes payable

    (20,819)





    2,721



    Net amounts due to/from governmental entities

    (833)





    555



    Net cash (used in) provided by operating activities

    (51,616)





    455,743



    Investing activities:







    Purchases of property, building and equipment

    (23,548)





    (51,241)



    Proceeds from sale of property, building and equipment

    3,350





    7,142



    Cash received (paid) for acquisitions, net of cash acquired

    (383,475)





    2,326



    Proceeds from sale of an entity

    1,531





    —



    Minority interest investments

    (10,100)





    —



    Net cash used in investing activities

    (412,242)





    (41,773)



    Financing activities:







    Proceeds from line of credit

    544,056





    276,229



    Payments on line of credit

    (209,056)





    (509,229)



    Government stimulus advance

    (93,257)





    93,257



    Proceeds from employee stock purchase plan

    1,877





    1,679



       Payments on deferred financing fees

    (2,855)





    —



    Noncontrolling interest distributions

    (22,187)





    (22,505)



    Withholding taxes paid on stock-based compensation

    (11,594)





    (9,854)



    Purchase of additional controlling interest

    (2,113)





    (23,575)



    Sale of noncontrolling interest

    1,934





    2,120



    Net cash provided by (used in) financing activities

    206,805





    (191,878)



    Change in cash

    (257,053)





    222,092



    Cash at beginning of period

    286,569





    31,672



    Cash at end of period

    $

    29,516





    $

    253,764



    Supplemental disclosures of cash flow information:







    Interest paid

    $

    1,532





    $

    4,556



    Income taxes paid

    $

    42,036





    $

    15,583



    Non-Cash Operating Activity:







    Operating right of use assets in exchange for lease obligations

    $

    41,776





    $

    25,633



    Reduction to right of use assets and liabilities

    $

    2,746





    —

    Non-Cash Investing Activity:







    Accrued capital expenditures

    $

    1,807





    $

    5,851



     

    LHC GROUP, INC. AND SUBSIDIARIES

    SEGMENT INFORMATION

    (Amounts in thousands)

    (Unaudited)





    Three Months Ended September 30, 2021



    Home health

    services



    Hospice

    services



    Home and

    community-

    based

    services



    Facility-

    based

    services



    HCI



    Total

    Net service revenue

    $

    386,699





    $

    82,653





    $

    45,800





    $

    32,415





    $

    17,884





    $

    565,451



    Cost of service revenue (excluding depreciation and amortization)

    230,839





    51,631





    34,386





    23,725





    3,281





    343,862



    General and administrative expenses

    126,695





    22,548





    11,764





    11,050





    4,387





    176,444



    Operating income (loss)

    29,165





    8,474





    (350)





    (2,360)





    10,216





    45,145



    Interest expense

    (811)





    (139)





    (109)





    (54)





    (22)





    (1,135)



    Income (loss) before income taxes and noncontrolling interest

    28,354





    8,335





    (459)





    (2,414)





    10,194





    44,010



    Income tax expense (benefit)

    6,407





    1,874





    (99)





    (554)





    2,522





    10,150



    Net income (loss)

    21,947





    6,461





    (360)





    (1,860)





    7,672





    33,860



    Less net income (loss) attributable to non controlling interests

    5,157





    1,085





    77





    (187)





    (6)





    6,126



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

    $

    16,790





    $

    5,376





    $

    (437)





    $

    (1,673)





    $

    7,678





    $

    27,734



    Total assets

    $

    1,632,670





    $

    681,954





    $

    239,452





    $

    83,276





    $

    75,334





    $

    2,712,686









    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

    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 stockholders

    $

    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



     

    LHC GROUP, INC. AND SUBSIDIARIES

    SEGMENT INFORMATION

    (Amounts in thousands)

    (Unaudited)





    Nine Months Ended September 30, 2021



    Home health

    services



    Hospice

    services



    Home and

    community-

    based

    services



    Facility-

    based

    services



    HCI



    Total

    Net service revenue

    $

    1,157,061





    $

    209,191





    $

    143,332





    $

    96,814





    $

    29,795





    $

    1,636,193



    Cost of service revenue (excluding depreciation and amortization)

    663,137





    129,848





    103,941





    65,360





    9,720





    972,006



    General and administrative expenses

    369,337





    58,789





    35,216





    33,213





    10,199





    506,754



    Impairment of intangibles and other

    937





    —





    —





    —





    —





    937



    Operating income (loss)

    123,650





    20,554





    4,175





    (1,759)





    9,876





    156,496



    Interest expense

    (1,099)





    (195)





    (143)





    (73)





    (31)





    (1,541)



    Income (loss) before income taxes and noncontrolling interest

    122,551





    20,359





    4,032





    (1,832)





    9,845





    154,955



    Income tax expense (benefit)

    26,003





    4,221





    889





    (649)





    2,445





    32,909



    Net income (loss)

    96,548





    16,138





    3,143





    (1,183)





    7,400





    122,046



    Less net income (loss) attributable to non controlling interests

    17,506





    3,308





    441





    792





    (37)





    22,010



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

    $

    79,042





    $

    12,830





    $

    2,702





    $

    (1,975)





    $

    7,437





    $

    100,036









    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) expense

    —





    —





    —





    —





    —





    —



    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 stockholders

    $

    68,314





    $

    11,545





    $

    (2,307)





    $

    (915)





    $

    4,579





    $

    81,216



     

    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:



    2021



    2020



    2021



    2020



















    Home Health Services:

















    Locations



    532





    549





    532





    549



    Acquired



    2





    2





    3





    8



    De novo



    —





    —





    —





    —



    Divested/consolidated



    (1)





    (6)





    (2)





    (14)



    Total new admissions



    108,492





    104,304





    325,496





    305,968



    Medicare new admissions



    52,527





    55,907





    161,930





    166,332



    Average daily census



    84,258





    82,254





    84,583





    78,920



    Average Medicare daily census



    43,675





    47,120





    44,682





    46,008



    Medicare completed and billed episodes



    84,550





    88,970





    254,823





    260,415



    Average Medicare case mix for completed and billed Medicare episodes



    1.02





    1.01





    1.02





    1.02



    Average reimbursement per completed and billed Medicare episodes



    $

    2,850





    $

    2,824





    $

    2,870





    $

    2,798



    Total visits



    2,113,205





    2,081,418





    6,322,502





    6,181,133



    Total Medicare visits



    1,063,086





    1,149,577





    3,216,843





    3,474,314



    Average visits per completed and billed Medicare episodes



    12.6





    12.9





    12.6





    13.3



    Organic growth: (1)

















    Net revenue



    4.5

    %



    (4.1)

    %



    8.0

    %



    (6.5)

    %

    Net Medicare revenue



    (2.6)

    %



    (8.9)

    %



    1.2

    %



    (11.3)

    %

    Total new admissions



    3.6

    %



    4.7

    %



    6.1

    %



    2.4

    %

    Medicare new admissions



    (5.7)

    %



    (4.4)

    %



    (2.5)

    %



    (7.0)

    %

    Average daily census



    2.5

    %



    4.9

    %



    7.7

    %



    (0.4)

    %

    Average Medicare daily census



    (7.4)

    %



    (5.7)

    %



    (2.6)

    %



    (9.2)

    %

    Medicare completed and billed episodes



    (4.0)

    %



    (3.5)

    %



    (0.5)

    %



    (8.1)

    %



















    Hospice Services:

















    Locations



    155





    111





    155





    111



    Acquired



    24





    —





    26





    4



    De novo



    —





    —





    1





    —



    Divested/consolidated



    —





    (1)





    (2)





    (2)



    Admissions



    6,466





    5,077





    16,884





    15,006



    Average daily census



    5,697





    4,393





    4,859





    4,338



    Patient days



    524,099





    404,214





    1,326,412





    1,192,866



    Average revenue per patient day



    $

    161.51





    $

    155.76





    $

    160.71





    $

    154.59



    Organic growth: (1)

















    Total new admissions



    0.1

    %



    12.8

    %



    2.9

    %



    4.8

    %



















    Home and Community-Based Services:

















    Locations (2)



    130





    122





    130





    122



    Acquired



    —





    —





    1





    4



    De novo



    —





    13





    7





    19



    Divested/consolidated



    (3)





    (2)





    (3)





    (2)



    Average daily census



    12,978





    14,455





    13,436





    14,391



    Billable hours



    1,817,711





    1,942,706





    5,597,129





    5,865,309



    Revenue per billable hour



    $

    25.50





    $

    26.31





    $

    25.81





    $

    25.87





















    Facility-Based Services:

















    Long-term Acute Care

















    Locations



    12





    12





    12





    12



    Acquired



    —





    —





    —





    —



    Divested/consolidated



    —





    (1)





    —





    (1)



    Patient days



    22,722





    24,275





    64,081





    68,094



    Average revenue per patient day



    $

    1,386





    $

    1,346





    $

    1,471





    $

    1,362



    Average Daily Census



    247





    264





    235





    249







    (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,





    2021



    2020



    2021



    2020

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



    $

    27,734





    $

    14,500





    $

    100,036





    $

    81,216



    Add (net of tax):

















       Acquisition, de novo and legal expenses (1)



    6,875





    1,829





    10,352





    3,345



       Closures/relocations/consolidations (2)



    369





    —





    1,548





    866



       COVID-19 impact: 

























          PPE, supplies and other expenses (3)



    10,290





    7,689





    27,141





    29,967



          CARES Act tax benefit (4)



    —





    —





    —





    (2,210)



       Provider Relief Fund (PRF) (5)



    —





    32,882





    —





    —



       NCI associated with PRF (6)



    —





    (5,643)





    —





    —



       ERP implementation (7)



    498





    —





    1,226





    —



       Hurricane Ida (8)



    844





    —





    844





    —



       Gain on sale of asset (9)



    (951)





    —





    (951)





    —



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



    $

    45,659





    $

    51,257





    $

    140,196





    $

    113,184



     

    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,





    2021



    2020



    2021



    2020

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



    $

    0.88





    $

    0.46





    $

    3.18





    $

    2.59



    Add (net of tax):

















       Acquisition, de novo and legal expenses (1)



    0.22





    0.05





    0.33





    0.11



       Closures/relocations/consolidations (2)



    0.01





    —





    0.05





    0.03



       COVID-19 impact:

























          PPE, supplies and other expenses (3)



    0.33





    0.25





    0.87





    0.95



          CARES Act tax benefit (4)



    —





    —





    —





    (0.07)



       Provider Relief Fund (PRF) (5)



    —





    1.05





    —





    —



       NCI associated with PRF (6)



    —





    (0.18)





    —





    —



       ERP implementation (7)



    0.01





    —





    0.03





    —



       Hurricane Ida (8)



    0.03





    —





    0.03





    —



       Gain on sale of asset (9)



    (0.03)





    —





    (0.03)





    —



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



    $

    1.45





    $

    1.63





    $

    4.46





    $

    3.61



     

    RECONCILIATION OF EBITDA AND ADJUSTED EBITDA

    (Amounts in thousands)

    (Unaudited)







    Three Months Ended

    September 30,

    Nine Months Ended

    September 30,





    2021



    2020



    2021



    2020

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



    $

    27,734





    $

    14,500





    $

    100,036





    $

    81,216



    Add:

















       Income tax expense



    10,150





    4,595





    32,909





    23,181



       Interest expense, net



    1,135





    431





    1,541





    4,040



       Depreciation and amortization 



    5,358





    5,217





    14,899





    15,601



       Adjustment items



    24,415





    49,775





    54,524





    46,339



    Adjusted EBITDA



    $

    68,792





    $

    74,518





    $

    203,909





    $

    170,377



    Adjustment items (pre-tax):

















       Acquisition, de novo and legal expenses (1)



    9,364





    2,492





    14,072





    4,556



       Closures/relocation/consolidations (2)



    502





    —





    2,098





    1,174



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



    14,016





    10,474





    36,835





    40,609



       Provider Relief Fund (PRF) (5)



    —





    44,435





    —





    —



       NCI associated with PRF (6)



    —





    (7,626)





    —





    —



       ERP implementation (7)



    679





    —





    1,665





    —



       Hurricane Ida (8)



    1,150





    —





    1,150





    —



       Gain on sale of asset (9)



    (1,296)





    —





    (1,296)





    —



    Total adjustments



    $

    24,415





    $

    49,775





    $

    54,524





    $

    46,339









































    1.

    Expenses and other costs associated with recently announced or completed acquisitions, de novos and legal expenses ($9.4 million and $14.1 million pre-tax in the three and nine months ended September 30, 2021, respectively; $2.5 million and $4.6 million pre-tax in the three and nine months ended September 30, 2020, respectively).

    2.

    Loss on the sale of an asset and other expenses associated with a closure or consolidation, including impairment ($0.5 million and $2.1 million pre-tax in the three and nine months ended September 30, 2021, respectively; $1.1 million in the nine months ended September 30, 2020).

    3.

    COVID-19 related expenses for purchases of personal protective equipment (PPE), supplies, wage adjustments and employee healthcare costs ($14.0 million and $36.8 million pre-tax in the three and nine months ended September 30, 2021, respectively; $10.5 million and $40.6 million pre-tax in the three and nine months ended September 30, 2020, respectively).

    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.

    The reversal of government stimulus income related to general distribution funds received from the Provider Relief Fund ("PRF") under the CARES Act ($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.

    Expenses and other costs associated with the implementation of an Enterprise Resource Planning software ($0.7 million and $1.7 million pre-tax in the three and nine months ended September 30, 2021, respectively).

    8.

    Direct recovery costs associated with Hurricane Ida ($1.2 million pre-tax).

    9.

    As of December 31, 2020, the Company's assets held for sale was $1.9 million, which consisted of one hospice facility in Knoxville, Tennessee.  The Company sold the property during the third quarter of 2021 for $3.2 million. 

     

    Contact:

    Eric Elliott



    Senior Vice President of Finance



    (337) 233-1307



    [email protected]

     

    Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/lhc-group-announces-third-quarter-2021-financial-results-301415755.html

    SOURCE LHC Group, Inc.

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      8/3/22 4:15:00 PM ET
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    $LHCG
    Leadership Updates

    Live Leadership Updates

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    • Agape Care Group Appoints Carry vandenMaagdenberg as Its Chief Technology and Innovation Officer and Matt Winer to Chief Operations Officer Post

      Agape Care Group, a leading hospice and palliative care provider, announced today that it is has appointed Carry vandenMaagdenberg as its Chief Technology and Innovation Officer and welcomes Matt Winer to the company as its Chief Operations Officer. Both leaders are health care industry veterans who will lead Agape Care Group forward as it continues to serve a growing number of patients across the Southeast region. Winer joins Agape Care Group from LHC Group (NASDAQ:LHCG) where he led the company's Home Health Division in the Northeast. He has health care experience in South Carolina, having served in operational leadership roles for MUSC Health based in Charleston. He has also led teams i

      4/16/21 2:47:00 PM ET
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    • LHC Group announces corporate governance changes for its 2021 annual meeting

      LAFAYETTE, La., Feb. 17, 2021 /PRNewswire/ -- LHC Group, Inc. (NASDAQ: LHCG) announced a number of corporate governance and board changes that will go into effect with the company's annual shareholder meeting on June 10, 2021. These changes include a mandatory retirement age of 75 for board members as well as the appointment of new chairs of the audit, compensation, corporate development and nominating and corporate governance committees. In addition, LHC Group announced that W.J. "Billy" Tauzin, will retire from the board, effective June 10, 2021.  Following a long and distinguished career representing Louisiana's Third Congressional District in the U.S. House of Representatives, Congressm

      2/17/21 4:01:00 PM ET
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    Insider Trading

    Insider transactions reveal critical sentiment about the company from key stakeholders. See them live in this feed.

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    • SEC Form 4: Reed W Earl Iii returned $23,595,490 worth of shares to the company (138,797 units at $170.00), closing all direct ownership in the company

      4 - LHC Group, Inc (0001303313) (Issuer)

      2/22/23 4:39:24 PM ET
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    • SEC Form 4: Nixon Ronald T returned $4,607,000 worth of shares to the company (27,100 units at $170.00), closing all direct ownership in the company

      4 - LHC Group, Inc (0001303313) (Issuer)

      2/22/23 4:38:04 PM ET
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    • SEC Form 4: Azare Monica F returned $5,185,000 worth of shares to the company (30,500 units at $170.00), closing all direct ownership in the company

      4 - LHC Group, Inc (0001303313) (Issuer)

      2/22/23 4:38:30 PM ET
      $LHCG
      Medical/Nursing Services
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